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03-May-2020 06:27

In one study, the authors sold mugs emblazoned with the university logo at a discounted price, and then asked study participants the minimum amount that they would demand to give up their mug.Those who paid cash wanted .71 for the mug (they had paid .95 to buy it just a few minutes earlier).But those who paid with credit card only wanted .83.In other studies, the authors also found that cash users are also less interested in the options they did not select.Instead they publicly signaled their commitment towards the item they did purchase.

But as the research described here shows, there are some serious downsides to using painless payment methods. As shoppers, we need to balance the convenience of paying with negative outcomes that we are likely to suffer because we no longer feel the pain of paying.When compared to paying by cash, people tend to overspend, they buy things impulsively, their shopping baskets tend to fill with unhealthy food, and they are less committed to products they have purchased. About Me Is for people who possess strong financial discipline.

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