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Personal loan users’ mental integration of payment and consumption

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  • Bernadette Kamleitner

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  • Erich Kirchler
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    Abstract

    Buying a good on a loan entails numerous consumption and payment episodes. Loan users can either mentally integrate or separate these episodes. In order to identify the actual mental structures, we conducted 29 semi-structured interviews with current and prospective loan users. A content analysis revealed that a majority of loan users established a hedonically efficient one-way connection from the loan to the good; i.e., the good was perceived as unrelated to the loan, whereas, concurrently, payments were buffered by thoughts of the good. Furthermore, the analysis revealed that mental structures are less stable than sometimes assumed. Copyright Springer Science + Business Media, LLC 2006

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    File URL: http://hdl.handle.net/10.1007/s11002-006-8521-9
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    Bibliographic Info

    Article provided by Springer in its journal Marketing Letters.

    Volume (Year): 17 (2006)
    Issue (Month): 4 (December)
    Pages: 281-294

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    Handle: RePEc:kap:mktlet:v:17:y:2006:i:4:p:281-294

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    Web page: http://www.springerlink.com/link.asp?id=100312

    Related research

    Keywords: Mental integration; Hedonic editing; Mental accounting; Consumer credit;

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    Cited by:
    1. Kirchler, Erich & Hoelzl, Erik & Kamleitner, Bernadette, 2008. "Spending and credit use in the private household," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 519-532, April.
    2. Bernadette Kamleitner & Bianca Hornung & Erich Kirchler, 2010. "Over-indebtedness and the interplay of factual and mental money management: An interview study," Working Papers 34, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    3. Hoelzl, Erik & Pollai, Maria & Kamleitner, Bernadette, 2009. "Experience, prediction and recollection of loan burden," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 446-454, June.

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