Cashing in on Control: Low Control Increases Preference For Prepayment When Financial Resources Are Plentiful

Daniel Brannon, Arizona State University, USA
Adriana Samper, Arizona State University, USA
We find that threats to personal control increase consumers’ preference for prepayment options (e.g. cash and debit cards) as opposed to debt payment options (e.g. credit cards). We argue that by immediately closing newly opened mental accounts associated with a purchase, prepayment options restore feelings of control.
[ to cite ]:
Daniel Brannon and Adriana Samper (2015) ,"Cashing in on Control: Low Control Increases Preference For Prepayment When Financial Resources Are Plentiful", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 778-778.