|Publication type:||Article in scientific journal|
|Type of review:||Peer review (publication)|
|Title:||Interest-free financing promotions increase consumers’ demand for credit for experiential goods|
|Authors:||Bauer, Johannes C.|
Morwitz, Vicki G.
|Published in:||Journal of the Association for Consumer Research|
|Publisher / Ed. Institution:||The University of Chicago Press|
|Subject (DDC):||332: Financial economics|
|Abstract:||This research provides a first investigation into how interest-free financing promotions influence consumer behavior. Five experiments demonstrate that framing an economically equivalent financing offer in a way that makes salient that it is interest-free increases consumers’ demand for credit to finance experiential, but not material goods. This increased willingness to finance manifests for primarily experiential goods (e.g., vacations), goods with mixed benefits (e.g., bike) if their experiential aspects are highlighted, and mixed shopping baskets that provide primarily experiential benefits. Using mediation and moderation, the results suggest that this occurs because interest-free cues mitigate feelings of debt aversion for experiential purchases. Based on our findings, we highlight public policy and managerial implications.|
|Fulltext version:||Published version|
|License (according to publishing contract):||Licence according to publishing contract|
|Departement:||School of Management and Law|
|Appears in collections:||Publikationen School of Management and Law|
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Bauer, J. C., Morwitz, V. G., & Nagengast, L. (2021). Interest-free financing promotions increase consumers’ demand for credit for experiential goods. Journal of the Association for Consumer Research, 6(1), 54–66. https://doi.org/10.1086/710250
Bauer, J.C., Morwitz, V.G. and Nagengast, L. (2021) ‘Interest-free financing promotions increase consumers’ demand for credit for experiential goods’, Journal of the Association for Consumer Research, 6(1), pp. 54–66. Available at: https://doi.org/10.1086/710250.
J. C. Bauer, V. G. Morwitz, and L. Nagengast, “Interest-free financing promotions increase consumers’ demand for credit for experiential goods,” Journal of the Association for Consumer Research, vol. 6, no. 1, pp. 54–66, 2021, doi: 10.1086/710250.
Bauer, Johannes C., et al. “Interest-Free Financing Promotions Increase Consumers’ Demand for Credit for Experiential Goods.” Journal of the Association for Consumer Research, vol. 6, no. 1, 2021, pp. 54–66, https://doi.org/10.1086/710250.
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