Always Leave Home Without It: A Further Investigation of the Credit-Card Effect on Willingness to Pay

By Drazen Prelec, Duncan Simester. 2001

404 citations recorded by the source corpus.

Subfields: Management Science and Operations Research, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/33543c3933de5b0a10356f57fd33f83babffe445

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Management Science and Operations Research

1. Marine Le Gall-Ely
2. Dilip Soman
3. Amar Cheema
4. Bernd Skiera
5. Klaus Wertenbroch
6. Brian Knutson
7. Drazen Prelec
8. George Loewenstein

In Marketing

1. Marine Le Gall-Ely
2. Amar Cheema
3. Dilip Soman
4. Klaus Wertenbroch
5. Bernd Skiera
6. Brian Knutson
7. Drazen Prelec
8. George Loewenstein

In Strategy and Management

1. Marine Le Gall-Ely
2. Dilip Soman
3. Amar Cheema
4. Bernd Skiera
5. Klaus Wertenbroch
6. George Loewenstein

Citations in the corpus

• The Effect of Credit on Spending Decisions: The Role of the Credit Limit and Credibility (2002, methodology): “Prelec and Simester (2001) conducted an auction in which subjects bid for tickets to a sporting event that were to be purchased by the winner on the following day by using either cash or credit card (random assignment).”
• Measuring Consumers' Willingness to Pay at the Point of Purchase (2002, methodology): “…researchers in behavioral decision theory have widely used BDM-type random preference elicitation procedures with consumer goods as stimuli (e.g., Kahneman, Knetsch, and Thaler 1990; Prelec and Simester 2001; Wertenbroch 1998), but market research practitioners have not relied on this approach.”
• Present-Biased Preferences and Credit Card Borrowing (2009, neutral): “Credit card debt is identified as being psychologically different from other forms of debt (e.g. Prelec and Simester, 2001), and so future work should determine whether our results extend to other borrowing behavior.”
• Neural predictors of purchases. (2007, background): “Many incentive schemes for promoting purchasing appear designed to diminish the salience of payments (e.g., credit cards) or to create the illusion that products have no cost (e.g., frequent flyer mileage) (Prelec and Simester, 2001).”
• The Effect of Payment Transparency on Consumption: Quasi-Experiments from the Field (2003, background): “We feel that these findings nicely complement the experimental findings of Prelec and Simester (2001) and Soman (2001) and show that in addition to how much you pay, how you pay also matters in spending and consumption decisions.”
• Definition, Measurement and Determinants of the Consumer's Willingness to Pay: A Critical Synthesis and Avenues for Further Research (2009, methodology): “Means of payment (credit card or cash) and the typeof pricing also influence WTP. Prelec and Simester (2001) show that consumers who pay by credit card are likely to have a higher WTP than those who pay with cash, whatever th amount concerned and whether the price is known in advance or not, thus…”