Aligning Benefits with Payments in a Consumer Financing Context: A Test of the Pattern

Cited 0 time in webofscience Cited 0 time in scopus
  • Hit : 581
  • Download : 219
This article extends the literature on consumer financing decisions by drawing on mental accounting and prospect theory. Specifically, the authors employ the notion of narrow framing to suggest that when consumers confront a series of decisions, they tend to make evaluations one at a time rather than taking the entire portfolio into consideration. Consistent with this argument, the authors test a pattern alignment hypothesis, which states that consumers prefer financing schemes that match the pattern of benefits and payments in each period rather than throughout the financing period. In three studies, the authors find general support for the pattern alignment hypothesis, then discuss some theoretical and practical implications.
Publisher
The Social Science Research Network(SSRN)
Issue Date
2007-09
Keywords

Consumer financing; mental accounting; prospect theory; narrow framing; pattern alignment hypothesis

Citation

KAIST Business School Working Paper Series KBS-WP-2007-010

URI
http://hdl.handle.net/10203/4951
Link
http://ssrn.com/abstract= 1015712
http://www.ssrn.com/link/KAIST-Business-School.html
Appears in Collection
KGSM-Journal Papers(저널논문)
Files in This Item
ssrn.pdf(56.97 kB)Download

qr_code

  • mendeley

    citeulike


rss_1.0 rss_2.0 atom_1.0