An empirical study of payment technologies, the psychology of consumption, and spending behavior in a retailing context

Eric W.K. SEE-TO*, Eric W.T. NGAI

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)

5 Citations (Scopus)

Abstract

Our study investigates differences in spending behavior among consumers using three alternative payment technologies: cash, credit cards, and stored value contactless smart cards. We provide a deeper understanding of how different payment mechanisms directly impact consumer spending behavior in a retailing context, their influences on customers’ psychology of consumption, and perceptions of payment technologies. We show that the payment process can do so by significantly affecting the subjective awareness of spending only. In contrast, the source of money can affect perceived payment security only. Both perceived security and convenience have little effect on spending behavior.

Original languageEnglish
Pages (from-to)329-342
Number of pages14
JournalInformation and Management
Volume56
Issue number3
Early online date23 Jul 2018
DOIs
Publication statusPublished - Apr 2019

Fingerprint

Consumer behavior
Smart cards
Empirical study
Retailing
Psychology
Payment

Keywords

  • Pain of paying
  • Payment mechanism
  • Payment technology
  • Psychology of consumption
  • Spending behavior

Cite this

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title = "An empirical study of payment technologies, the psychology of consumption, and spending behavior in a retailing context",
abstract = "Our study investigates differences in spending behavior among consumers using three alternative payment technologies: cash, credit cards, and stored value contactless smart cards. We provide a deeper understanding of how different payment mechanisms directly impact consumer spending behavior in a retailing context, their influences on customers’ psychology of consumption, and perceptions of payment technologies. We show that the payment process can do so by significantly affecting the subjective awareness of spending only. In contrast, the source of money can affect perceived payment security only. Both perceived security and convenience have little effect on spending behavior.",
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An empirical study of payment technologies, the psychology of consumption, and spending behavior in a retailing context. / SEE-TO, Eric W.K.; NGAI, Eric W.T.

In: Information and Management, Vol. 56, No. 3, 04.2019, p. 329-342.

Research output: Journal PublicationsJournal Article (refereed)

TY - JOUR

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AU - SEE-TO, Eric W.K.

AU - NGAI, Eric W.T.

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N2 - Our study investigates differences in spending behavior among consumers using three alternative payment technologies: cash, credit cards, and stored value contactless smart cards. We provide a deeper understanding of how different payment mechanisms directly impact consumer spending behavior in a retailing context, their influences on customers’ psychology of consumption, and perceptions of payment technologies. We show that the payment process can do so by significantly affecting the subjective awareness of spending only. In contrast, the source of money can affect perceived payment security only. Both perceived security and convenience have little effect on spending behavior.

AB - Our study investigates differences in spending behavior among consumers using three alternative payment technologies: cash, credit cards, and stored value contactless smart cards. We provide a deeper understanding of how different payment mechanisms directly impact consumer spending behavior in a retailing context, their influences on customers’ psychology of consumption, and perceptions of payment technologies. We show that the payment process can do so by significantly affecting the subjective awareness of spending only. In contrast, the source of money can affect perceived payment security only. Both perceived security and convenience have little effect on spending behavior.

KW - Pain of paying

KW - Payment mechanism

KW - Payment technology

KW - Psychology of consumption

KW - Spending behavior

UR - http://www.scopus.com/inward/record.url?scp=85050637270&partnerID=8YFLogxK

UR - http://www.mendeley.com/research/empirical-study-payment-technologies-psychology-consumption-spending-behavior-retailing-context

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DO - 10.1016/j.im.2018.07.007

M3 - Journal Article (refereed)

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