IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v22y2023i5d10.1057_s41272-022-00416-4.html
   My bibliography  Save this article

Book now, pay later: the effects of delays in payments and temporal distance on consumers’ perceptions and purchase intention

Author

Listed:
  • Yisak Jang

    (University of New Orleans)

  • Li Miao

    (University of Macau)

  • Chih-Chien Chen

    (University of Nevada, Las Vegas)

Abstract

In today’s hotel industry, ‘book now, pay later’ practice is widespread. However, despite the prevalence of this phenomenon, the psychological and behavioral influences of ‘book now, pay later’ transactions on consumers have received almost no research attention. Using an experimental design, this research examined how deferred payments influence consumers’ perceived price, perceived risks, and purchase intention according to the time of booking in the leisure travel context. The results demonstrated that people perceived less risks and had a greater purchase intention when a hotel offered the ‘pay later’ option compared to the ‘pay now’ option. However, individuals planning a trip in the near future did not show any significant differences in perceived risks and purchase intention between the options of ‘pay later’ and ‘pay now’.

Suggested Citation

  • Yisak Jang & Li Miao & Chih-Chien Chen, 2023. "Book now, pay later: the effects of delays in payments and temporal distance on consumers’ perceptions and purchase intention," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(5), pages 374-384, October.
    • Handle: RePEc:pal:jorapm:v:22:y:2023:i:5:d:10.1057_s41272-022-00416-4
    DOI: 10.1057/s41272-022-00416-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-022-00416-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-022-00416-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Masiero, Lorenzo & Viglia, Giampaolo & Nieto-Garcia, Marta, 2020. "Strategic consumer behavior in online hotel booking," Annals of Tourism Research, Elsevier, vol. 83(C).
    2. Dowling, Grahame R & Staelin, Richard, 1994. "A Model of Perceived Risk and Intended Risk-Handling Activity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 119-134, June.
    3. Benhabib, Jess & Bisin, Alberto & Schotter, Andrew, 2010. "Present-bias, quasi-hyperbolic discounting, and fixed costs," Games and Economic Behavior, Elsevier, vol. 69(2), pages 205-223, July.
    4. Jinsoo Park & Dongwon Lee & Joongho Ahn, 2004. "Risk-Focused E-Commerce Adoption Model: A Cross-Country Study," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 7(2), pages 6-30, April.
    5. Drazen Prelec & George Loewenstein, 1998. "The Red and the Black: Mental Accounting of Savings and Debt," Marketing Science, INFORMS, vol. 17(1), pages 4-28.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yisak Jang & Yan Cao, 2025. "How to effectively present “book now, pay later”: the effects of appeal type, temporal distance, and traveler type on attitudes and purchase intentions," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 24(2), pages 101-110, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kulati, Ellam & Myck, Michał & Pasini, Giacomo, 2023. "Temporal discounting in later life," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 87-101.
    2. Nahid Malazizi & Habib Alipour & Hossein Olya, 2018. "Risk Perceptions of Airbnb Hosts: Evidence from a Mediterranean Island," Sustainability, MDPI, vol. 10(5), pages 1-23, April.
    3. Ather Akhlaq & Ejaz Ahmed, 2016. "Gender Differences Among Online Shopping Factors In Pakistan," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 7(1).
    4. Bo-Chiuan Su & Li-Wei Wu & Ying-Chi Yen, 2021. "Antecedents and Consequences of Trust and Loyalty in Physical Banks Affecting Mobile Payments," Sustainability, MDPI, vol. 13(22), pages 1-27, November.
    5. Filiz-Ozbay, Emel & Guryan, Jonathan & Hyndman, Kyle & Kearney, Melissa & Ozbay, Erkut Y., 2015. "Do lottery payments induce savings behavior? Evidence from the lab," Journal of Public Economics, Elsevier, vol. 126(C), pages 1-24.
    6. Johannes Abeler & Felix Marklein, 2017. "Fungibility, Labels, and Consumption," Journal of the European Economic Association, European Economic Association, vol. 15(1), pages 99-127.
    7. Kang, Min Jung & Park, Heejun, 2011. "Impact of experience on government policy toward acceptance of hydrogen fuel cell vehicles in Korea," Energy Policy, Elsevier, vol. 39(6), pages 3465-3475, June.
    8. Shinhye Kim & Alberto Sa Vinhas & U.N. Umesh, 2022. "Prepayment and future cross-buying: an exploratory analysis," Marketing Letters, Springer, vol. 33(3), pages 415-439, September.
    9. Marieka M. Klawitter & C. Leigh Anderson & Mary Kay Gugerty, 2013. "Savings And Personal Discount Rates In A Matched Savings Program For Low-Income Families," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 468-485, July.
    10. Belzil, Christian & Sidibé, Modibo, 2016. "Internal and External Validity of Experimental Risk and Time Preferences," IZA Discussion Papers 10348, Institute of Labor Economics (IZA).
    11. Yizhao Jiang, 2022. "The Influence of Payment Method: Do Consumers Pay More with Mobile Payment?," Papers 2210.14631, arXiv.org.
    12. Maria Arvaniti & Chandra K. Krishnamurthy & Anne-Sophie Crépin, 2019. "Time-consistent resource management with regime shifts," CER-ETH Economics working paper series 19/329, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    13. Felici, Marco & Kenny, Geoff & Friz, Roberta, 2023. "Consumer savings behaviour at low and negative interest rates," European Economic Review, Elsevier, vol. 157(C).
    14. Mette, Frederike Monika Budiner & de Matos, Celso Augusto & Rohden, Simoni F. & Ponchio, Mateus Canniatti, 2019. "Explanatory mechanisms of the decision to buy on credit: The role of materialism, impulsivity and financial knowledge," Journal of Behavioral and Experimental Finance, Elsevier, vol. 21(C), pages 15-21.
    15. White, Tiffany Barnett & Novak, Thomas P. & Hoffman, Donna L., 2014. "No Strings Attached: When Giving It Away Versus Making Them Pay Reduces Consumer Information Disclosure," Journal of Interactive Marketing, Elsevier, vol. 28(3), pages 184-195.
    16. Jae‐Do Song, 2023. "Excessive banking preference in emissions trading," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 448-458, January.
    17. Goswami, Indranil & Urminsky, Oleg, 2021. "Don’t fear the meter: How longer time limits bias managers to prefer hiring with flat fee compensation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 162(C), pages 42-58.
    18. Meyer, Andrew G., 2015. "The impacts of elicitation mechanism and reward size on estimated rates of time preference," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 132-148.
    19. Elias L. Khalil, 2024. "Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(4), pages 2415-2427, June.
    20. He, Haonan & Wang, Shanyong, 2019. "Cost-benefit associations in consumer inventory problem with uncertain benefit," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 271-284.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:22:y:2023:i:5:d:10.1057_s41272-022-00416-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.