The effects of mental budgeting and pain of payment on the financial decision making of socially excluded people

Chun, Sung Yong; Johnson, Devon

doi:10.1108/ijbm-09-2020-0499

Cited by 6 publications

(13 citation statements)

References 62 publications

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“…Several situational variables were identified that can attenuate or exacerbate pain of payment. Consumers experience lower levels of pain of payment when earning money is easy (vs. difficult) for them, for example, when they have an easy (vs. difficult) job (Bagchi & Block, 2011; Soster et al, 2014), when they feel in control of a consumption situation (Wagner et al, 2022), when they feel socially included (Chun & Johnson, 2021), when an expense is anticipated (vs. unanticipated; Besharat & Nardini, 2018), and as more time elapses from when consumers set a budget and when they make a purchase that falls into that budget category (Choe & Kan, 2021).…”

Section: Methodsmentioning

confidence: 99%

“…In addition to consumer behavior outcomes outlined above, anticipated pain of payment can influence consumer beliefs and perceptions. Higher anticipated pain increases consumers' preferences for low (vs. high) risk investments (Chun & Johnson, 2021). When purchasing food products, paying with more painful payment methods (i.e., cash vs. credit and debit cards) increases anticipated pain evoked by contemplating vice (vs. virtue) food purchases and increases the perception of health risks associated with consuming vice (vs. virtue) food products.…”

Section: Methodsmentioning

confidence: 99%

Section: Consequences Of Pain Of Paymentmentioning

confidence: 99%

“…Pain of payment is a negative psychological affect evoked when consumers lose their financial resources (Prelec & Loewenstein, 1998; Zellermayer, 1996). In the previous decades, several studies have explored the effect of pain of payment on various consumer decisions, such as financial decision making (e.g., Besharat & Nardini, 2018; Prelec & Loewenstein, 1998), risk‐taking (Chun & Johnson, 2021), consumption (e.g., Bagchi & Block, 2011; Sheehan & Van Ittersum, 2018; Thomas et al, 2011), and post‐purchase outcomes (e.g., Kamleitner & Erki, 2013; Shah et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

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The pain of payment: A review and research agenda

Reshadi

Fitzgerald

2023

Psychology and Marketing

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Pain of payment is the negative psychological affect consumers experience when they become cognizant that they have lost a certain amount of their financial resources (immediate pain) or when they become aware that they will or may lose a certain amount of their financial resources in the future (anticipated pain). Pain of payment plays a significant role in consumer decision making and has attracted substantial scholarly interest in recent years. In this article, we conduct a systematic literature review of the existing work on pain of payment. We advance theory in the field by proposing a new organizing framework that summarizes the antecedents, moderators, and consequences of pain of payment. Furthermore, we provide a formal definition of pain of payment that encompasses all facets of this construct. Subsequently, we identify knowledge gaps and outline research questions that could be explored to improve our understanding of this construct and advance consumer psychology.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Consequences Of Pain Of Paymentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The pain of payment: A review and research agenda

Reshadi

Fitzgerald

2023

Psychology and Marketing

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“…, 2019; Mainardes et al. , 2017) and by online panel companies (Bayuk and Altobello, 2019; Chun and Johnson, 2021; Song et al. , 2020).…”

Section: Methodsmentioning

confidence: 99%

Is customer participation always good in service recovery? The moderating role of customers' positive psychological capital

Alotaibi

Chaouali

Hammami

et al. 2023

IJBM

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PurposeSo far, whether customers' involvement strengthens or weakens the process of service recovery has remained unclear. Filling this gap, this study aims to investigate the effect of customers' participation on customers' post-recovery outcomes in the context of the banking industry. More specifically, this study delineates how and when customer participation (CP) proves effective in creating and enhancing favourable post-recovery outcomes.Design/methodology/approachWith the help of an online survey, this study collects responses from 314 bank customers and analyses them using SmartPLS.FindingsThe results show that customers' participation in service recovery positively affects customers' perceived utilitarian and hedonic values. Customers' perceived utilitarian and hedonic values positively influence customers' recovery satisfaction which, in turn, positively relates to their continuance intention and positive word-of-mouth (PWOM). Furthermore, customers' positive psychological capital (CPPC) positively moderates the relationship of CP in service recovery with perceived utilitarian value and hedonic value.Originality/valueThis study unveils the negative facet of co-created service recovery, which has rarely been addressed in the service recovery literature, especially in the context of the banking industry. This study demonstrates that the effectiveness of customers' participation in creating favourable post-recovery outcomes is contingent on CPPC. Moreover, this study confirms that not all customers may value customers' participation in the service recovery process.

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Gamification Strategies: A Characterization Using Formal Argumentation Theory

Guerrero

Kalmi

2022

SN COMPUT. SCI.

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Gamified software applications are omnipresent in everyday life. The idea of using game design elements in non-game contexts to engage and motivate tasks has rapidly gained traction in the human–computer interaction and the psychology fields, but scarcely in the artificial intelligence (AI) research area. In this paper, we propose a software agent perspective of gamification elements to solve two specific problems: (1) a reactive perspective that gamification designers have for those gamified affordances, i.e. the visual cue (output) is only triggered by user interaction, and (2) a lack of formal treatment of gamified software, where strict characterization of software behavior as done in AI, guarantee that the information-based output follows the intended goal of the software. Our contributions presented in this paper are (1) two taxonomies of affordances based on the type of information that every element communicates, and the type of agency that is capable; (2) a framework to formalize the decision-making process for gamified software agents; and (3) a characterization of gamified stories using formal argumentation theory dialogues. We exemplify our contributions with two gamified platforms in the healthcare and financial literacy fields.

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The effects of mental budgeting and pain of payment on the financial decision making of socially excluded people

Cited by 6 publications

References 62 publications

The pain of payment: A review and research agenda

The pain of payment: A review and research agenda

Is customer participation always good in service recovery? The moderating role of customers' positive psychological capital

Gamification Strategies: A Characterization Using Formal Argumentation Theory

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