Time to Cut Up Those Debit Cards? Effect of Payment Mode on Willingness to Spend
Purchase on Springer.com
$39.95 / €34.95 / £29.95*
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.
Financial industry data indicate that consumers increasingly prefer debit cards over credit cards, especially as a means of enforcing financial self-discipline. Given prior research suggesting that credit cards act as spending facilitating stimuli, this move toward reduced credit card use would appear to be in the right direction. Ironically, however, the same logos that were implicated in facilitating spending with credit cards are the logos that appear on debit cards. In what should serve as an eye-opener to consumers, it is found that exposure to debit card logos does result in an increased willingness to spend, similar to credit cards.
- Bornstein, R. F. (1989). Exposure and affect: Overview and meta-analysis of research, 1968–1987. Psychological Bulletin, 106(2), 265–289. CrossRef
- Edgar Dunn & Company. (2004, January 27). Consumers choose debit cards as most preferred card in their wallets [Press Release]. Retrieved from http://www.directiveanalytics.com/pdf/Consumers%20Choose%20Debit%20Cards%20As%20Most%20Preferred%20Card%20in%20The..pdf
- Hunt, J. M., Florscheim, R., Chatterjee, A., & Kernan, J. (1990). Credit cards as spending facilitating stimuli: A test and extension of Feinberg's conditioning hypothesis. Psychological Reports, 67(1), 323–330. CrossRef
- Feinberg, R. A. (1986). Credit cards as spending facilitating stimuli: A conditioning interpretation. Journal of Consumer Research, 13(3), 348–356. CrossRef
- Feinberg, R. A. (1990). The social nature of classical conditioning phenomena in people: A comment on Hunt, Florscheim, Chatterjee, and Kernan. Psychological Reports, 67(1), 331–334. CrossRef
- Feinberg, R. A., & Meoli, J. (1987). The classical conditioning of credit card cues. Proceedings of the Division of Consumer Psychology, American Psychological Association 1986 Annual Conference, 138–140.
- Foster, K., Meijer, E., Schuh, S., & Zabek, M. A. (2010). The 2008 survey of consumer payment choice. Public Policy Discussion Papers, Federal Reserve Bank of Boston, April 2010.
- Leondis, A. (2010). Cardholders prefer debit as credit-card use declines. Bloomberg Businessweek, Sept. 08, 2010. Retrieved from http://www.businessweek.com/news/2010-09-08/cardholders-prefer-debit-as-credit-card-use-declines.html
- Lie, C., Hunt, M., Peters, H., Veliu, B., & Harper, D. (2010). The “negative” credit card effect: Credit cards as spending-limiting stimuli in New Zealand. The Psychological Record, 60(3), 399–412.
- McCall, M., & Belmont, H. J. (1996). Credit card insignia and restaurant tipping: Evidence for an associative link. Journal of Applied Psychology, 81(5), 609–613. CrossRef
- Palmeri, C. (2008). The steady ascent of the debit card. Bloomberg Business Week, Nov. 10, 2008. Retrieved from http://www.businessweek.com/magazine/content/08_45/b4107000370790.htm
- Prelec, D., & Duncan, S. (2001). Always leave home without it: A further investigation of the credit-card effect on willingness to pay. Marketing Letters, 12(1), 5–12. CrossRef
- Raghubir, P., & Srivastava, J. (2008). Monopoly money: The effect of payment coupling and form on spending behavior. Journal of Experimental Psychology: Applied, 14(3), 213–225. CrossRef
- Shimp, T. A., & Moody, M. (2000). In search of a theoretical explanation for the credit card effect. Journal of Business Research, 48(1), 17–23. CrossRef
- Soman, D. (2001). Effects of Payment Mechanism on Spending Behavior: The Role of Rehearsal and Immediacy of Payments. Journal of Consumer Research, 27(4), 460–474. CrossRef
- Census Bureau, U. S. (2009). The 2010 Statistical Abstract: Banking, Finance, and Insurance. Washington, DC: U.S. Government Printing Office.
- Visa Inc. (2009). Total U.S. Visa debit volume surpasses credit for the first time [Press Release, May 4]. Retrieved from http://investor.visa.com/phoenix.zhtml?c=215693&p=irol-newsArticle&ID=1283874&highlight=
- Zajonc, R. B. (1968). Attitudinal effects of mere exposure. Journal of Personality and Social Psychology Monographs, 9(2), 1–27. CrossRef
- Zajonc, R. B. (2001). Mere exposure: A gateway to the subliminal. Current Directions in Psychological Science, 10(6), 224–228. CrossRef
- Time to Cut Up Those Debit Cards? Effect of Payment Mode on Willingness to Spend
Journal of Consumer Policy
Volume 34, Issue 4 , pp 415-422
- Cover Date
- Print ISSN
- Online ISSN
- Springer US
- Additional Links
- Debit cards
- Credit cards
- Willingness to spend
- Consumer behavior
- Consumer policy
- Industry Sectors