Interest-free financing promotions increase consumers’ demand for credit for experiential goods

Bauer, Johannes C.; Morwitz, Vicki G.; Nagengast, Liane

doi:10.1086/710250

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. Nagengast, Liane
et. al:	No
DOI:	10.1086/710250
Published in:	Journal of the Association for Consumer Research
Volume(Issue):	6
Issue:	1
Page(s):	54
Pages to:	66
Issue Date:	2021
Publisher / Ed. Institution:	The University of Chicago Press
ISSN:	2378-1815 2378-1823
Language:	English
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.
URI:	https://digitalcollection.zhaw.ch/handle/11475/25538
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., Vicki G. MORWITZ und Liane NAGENGAST, 2021. Interest-free financing promotions increase consumers’ demand for credit for experiential goods. Journal of the Association for Consumer Research. 2021. Bd. 6, Nr. 1, S. 54–66. DOI 10.1086/710250

Bauer, Johannes C., Vicki G. Morwitz, and Liane Nagengast. 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, 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.