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| Author: | Prelect, D. Simester, D. |
| Title: | Always Leave Home without It: A Further Investigation of the Credit-Card Effect on Willingness to Pay |
| Journal: | Marketing Letters
2001 : VOL. 12:1, p. 5-12 |
| Index terms: | CREDIT CARDS CUSTOMERS MARKETING |
| Language: | eng |
| Abstract: | This is the first study that demonstrates that willingness-to-pay is increased when customers are instructed to use a credit card rather than cash. The results are surprising both due to the size of the premium and the ubiquity of credit card use. The effect may be large (up to 100%) and it appears unlikely that it arises due solely to liquidity constraints. In addition to demonstrating the effect, the authors provide a methodology for detecting it, and the authors' findings suggest a source of variance to test alternative explanations. |
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