Exploring the origin of pain of payment in cash and its relevance to computer payment interface

dc.contributor.advisor Bethany Weber
dc.contributor.author Yeung, Kam Leung
dc.contributor.department Psychology
dc.date 2018-08-11T15:20:51.000
dc.date.accessioned 2020-06-30T02:53:47Z
dc.date.available 2020-06-30T02:53:47Z
dc.date.copyright Wed Jan 01 00:00:00 UTC 2014
dc.date.embargo 2015-07-30
dc.date.issued 2014-01-01
dc.description.abstract <p>Past research has found that consumers spend more with credit card than with cash. The current studies shows that the necessity to count out cash can partially explain the effect, and the pain of paying due to counting cash is lowered when the process of counting is disrupted. Subjects in Experiments 1 and 2 hypothetically bought office supplies for a company using a computer. In Experiment 1, subjects paid by dragging-and-dropping (DD) images of cash, DD tokens, typing the virtual check amount, or with a one-click credit card payment. Spending was higher with credit card than with tokens or cash. In Experiment 2, subjects paid with cash using one-click and DD interfaces, and credit card with one-click, DD, and swipe-card interfaces. Spending was significantly lower in the DD conditions than in the one-click conditions, while no difference was observed between cash and credit card. Based on a hypothetical financial profile that controls for budget constrain, subjects in Experiments 3 and 4 were asked to pay their past expenses and then indicated their purchase intention for a discretionary product. In Experiment 3, subjects paid with credit card using one-click or regular DD cash interface, or DD cash interface where subjects were asked to either memorize some English letters or the payment amount right before their payment. The pain of paying was significantly lower in the DD cash interfaces with memory load relative to the regular DD cash interface. In Experiment 4 subjects paid with credit card using one-click interface, DD cash interface with bills of small ($20) or larger ($100) denomination. Purchase intention was significantly higher in the large denomination condition relative to the one-click condition while there was no difference in pain of paying across conditions. It is concluded that the need to count cash inhibits spending (Experiment 1 & 2), and the likely mechanism is one's attention to counting rather than the mental rehearsal of the payment amount (Experiment 3) or physical effort (Experiment 2). In addition, the size of bill denomination also affects one's purchase intention for a product (Experiment 4). Implications of the findings were discussed.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/etd/14018/
dc.identifier.articleid 5025
dc.identifier.contextkey 6199746
dc.identifier.doi https://doi.org/10.31274/etd-180810-3578
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath etd/14018
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/28205
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/etd/14018/Yeung_iastate_0097E_14434.pdf|||Fri Jan 14 20:12:20 UTC 2022
dc.subject.disciplines Other Psychology
dc.subject.disciplines Psychology
dc.subject.disciplines Social and Behavioral Sciences
dc.subject.keywords cash
dc.subject.keywords consumer spending
dc.subject.keywords credit card
dc.subject.keywords pain of payment
dc.subject.keywords payment interface
dc.subject.keywords payment method
dc.title Exploring the origin of pain of payment in cash and its relevance to computer payment interface
dc.type article
dc.type.genre dissertation
dspace.entity.type Publication
relation.isOrgUnitOfPublication 796236b3-85a0-4cde-b154-31da9e94ed42
thesis.degree.level dissertation
thesis.degree.name Doctor of Philosophy
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