Fighting Poverty One Coin At a Time, Through Money-Saving Options: the Cash Attraction Effect

Monica Popa, University of Saskatchewan, Canada
Laura Cojocaru, Independent Researcher, U.S.A.
While prior studies indicate that electronic (versus cash) money are likely to increase consumer spending, we propose and demonstrate that paradoxically, they can also increase consumer savings in interest-earning plans. This interesting outcome is driven by the "cash attraction" effect, and is moderated by the vividness of the monetary instrument.
[ to cite ]:
Monica Popa and Laura Cojocaru (2015) ,"Fighting Poverty One Coin At a Time, Through Money-Saving Options: the Cash Attraction Effect", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 660-661.