The easy-money effect : credit card spending and hard-work reminders
Purpose This research paper aims to examine the proposed easy-money effect of credit cards, which stimulates consumers to over spend. This paper shows how such easy-money effect could be weakened. Design/methodology/approach In Study 1, an Implicit Association Test (IAT) was conducted with a sample...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2019
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| Online Access: | https://hdl.handle.net/10356/105161 http://hdl.handle.net/10220/47967 |
| _version_ | 1811695432825307136 |
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| author | Wong, King Yin Lynn, Michael |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Wong, King Yin Lynn, Michael |
| author_sort | Wong, King Yin |
| collection | NTU |
| description | Purpose This research paper aims to examine the proposed easy-money effect of credit cards, which stimulates consumers to over spend. This paper shows how such easy-money effect could be weakened. Design/methodology/approach In Study 1, an Implicit Association Test (IAT) was conducted with a sample of 169 participants to test the proposed easy-money effect. In Study 2, experimental data were collected online from 365 participants to test the effectiveness of a hard-work reminder in weakening the credit card’s easy-money effect on consumer spending. Findings The proposed credit card easy-money effect existed, with spendthrift participants associating money with hard work less in the implicit association test after being presented with a credit card cue versus neutral cue. The results from Study 2 show that spendthrift participants spent more on their dinner than tightwad participants when shown a credit card cue. However, this effect could be weakened when spendthrifts were also reminded of their hard work by a picture accompanied with words. Practical Implications This paper suggests that credit card’s spending-stimulating effect is due to consumers’ associations between credit cards and easy money. Based on this notion, this paper suggests conditions in which credit cards will stimulate more and less spending. Originality/value This is the first research attempt to examine the credit cards’ easy-money effect and the effectiveness of reminding consumers of their hard work to mitigate credit cards’ long-established spending-stimulating effect. |
| first_indexed | 2024-10-01T07:23:23Z |
| format | Journal Article |
| id | ntu-10356/105161 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:23:23Z |
| publishDate | 2019 |
| record_format | dspace |
| spelling | ntu-10356/1051612023-05-19T06:44:43Z The easy-money effect : credit card spending and hard-work reminders Wong, King Yin Lynn, Michael Nanyang Business School DRNTU::Business::Marketing::Consumer behavior Credit Cards Spendthrift Purpose This research paper aims to examine the proposed easy-money effect of credit cards, which stimulates consumers to over spend. This paper shows how such easy-money effect could be weakened. Design/methodology/approach In Study 1, an Implicit Association Test (IAT) was conducted with a sample of 169 participants to test the proposed easy-money effect. In Study 2, experimental data were collected online from 365 participants to test the effectiveness of a hard-work reminder in weakening the credit card’s easy-money effect on consumer spending. Findings The proposed credit card easy-money effect existed, with spendthrift participants associating money with hard work less in the implicit association test after being presented with a credit card cue versus neutral cue. The results from Study 2 show that spendthrift participants spent more on their dinner than tightwad participants when shown a credit card cue. However, this effect could be weakened when spendthrifts were also reminded of their hard work by a picture accompanied with words. Practical Implications This paper suggests that credit card’s spending-stimulating effect is due to consumers’ associations between credit cards and easy money. Based on this notion, this paper suggests conditions in which credit cards will stimulate more and less spending. Originality/value This is the first research attempt to examine the credit cards’ easy-money effect and the effectiveness of reminding consumers of their hard work to mitigate credit cards’ long-established spending-stimulating effect. Accepted version 2019-04-03T01:50:34Z 2019-12-06T21:46:48Z 2019-04-03T01:50:34Z 2019-12-06T21:46:48Z 2017 Journal Article Wong, K. Y., & Lynn, M. (2017). The easy-money effect : credit card spending and hard-work reminders. Journal of Consumer Marketing, 34(7), 541-551. doi:10.1108/JCM-07-2016-1868 0736-3761 https://hdl.handle.net/10356/105161 http://hdl.handle.net/10220/47967 10.1108/JCM-07-2016-1868 en Journal of Consumer Marketing © 2017 Emerald Publishing Limited. All rights reserved. This paper was published in Journal of Consumer Marketing and is made available with permission of Emerald Publishing Limited. 30 p. application/pdf application/pdf application/pdf |
| spellingShingle | DRNTU::Business::Marketing::Consumer behavior Credit Cards Spendthrift Wong, King Yin Lynn, Michael The easy-money effect : credit card spending and hard-work reminders |
| title | The easy-money effect : credit card spending and hard-work reminders |
| title_full | The easy-money effect : credit card spending and hard-work reminders |
| title_fullStr | The easy-money effect : credit card spending and hard-work reminders |
| title_full_unstemmed | The easy-money effect : credit card spending and hard-work reminders |
| title_short | The easy-money effect : credit card spending and hard-work reminders |
| title_sort | easy money effect credit card spending and hard work reminders |
| topic | DRNTU::Business::Marketing::Consumer behavior Credit Cards Spendthrift |
| url | https://hdl.handle.net/10356/105161 http://hdl.handle.net/10220/47967 |
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