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When store credit cards hurt retailers: The differential effect of paying credit card dues on consumers' purchasing behavior

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  • Sarofim, Samer
  • Chatterjee, Promothesh
  • Rose, Randall

Abstract

In a cautionary note to retailers, this research provides evidence that store (vs. bank) credit card users assign lower reservation prices for future purchases (study 1), show less total expenditure in shopping bags (study 2 and 3), and are less engaged in impulsive purchasing (study 2) at the card-issuing store. The authors provide evidence that even though store and bank credit cards result in a similar level of pain of paying and temporal decoupling, these previously assumed to be similar payment modes lead to different purchasing decisions. Findings suggest that consumers attribute the financial depletion resulting from paying a store credit card invoice to the mental account for the card-issuing store and hence are less generous in their subsequent purchasing decisions at that store (study 4).

Suggested Citation

  • Sarofim, Samer & Chatterjee, Promothesh & Rose, Randall, 2020. "When store credit cards hurt retailers: The differential effect of paying credit card dues on consumers' purchasing behavior," Journal of Business Research, Elsevier, vol. 107(C), pages 290-301.
    • Handle: RePEc:eee:jbrese:v:107:y:2020:i:c:p:290-301
    DOI: 10.1016/j.jbusres.2018.08.031
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