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Is cash perceived as more valuable than digital money? The mediating effect of psychological ownership and psychological distance

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  • Kun Zhou

    (Dalian University of Technology)

  • Jun Ye

    (Xiamen University)

  • Xiao-xiao Liu

    (Xiamen University)

Abstract

This research examines how the type of money (cash vs. digital) affects consumers’ perceived purchasing power (PPP) of the money and the mediating mechanisms of psychological ownership and psychological distance. Three lab experiments confirm that cash results in higher PPP than does digital money, and that both psychological ownership and psychological distance contribute to the effect of money type on PPP. Our findings provide theoretical implications for the psychological research on the type of money and its influence and practical implications for e-payment and online shopping behaviors.

Suggested Citation

  • Kun Zhou & Jun Ye & Xiao-xiao Liu, 2023. "Is cash perceived as more valuable than digital money? The mediating effect of psychological ownership and psychological distance," Marketing Letters, Springer, vol. 34(1), pages 55-68, March.
    • Handle: RePEc:kap:mktlet:v:34:y:2023:i:1:d:10.1007_s11002-022-09624-9
    DOI: 10.1007/s11002-022-09624-9
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    References listed on IDEAS

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