Interest-Free Financing Deals: How Different Labels Impact Consumers’ Preferences For Pre- Versus Postpayment

Research has shown that people prefer to prepay for certain products even if there were no financing charges. We demonstrate that labeling an interest-free financing offer as a 0% APR special financing promotion can increase consumers’ demand for credit and that this “labeling” effect is particularly strong for experiential goods.



Citation:

Johannes C. Bauer and Vicki G. Morwitz (2015) ,"Interest-Free Financing Deals: How Different Labels Impact Consumers’ Preferences For Pre- Versus Postpayment", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl , Carolyn Yoon, and , Duluth, MN : Association for Consumer Research, Pages: 776-776.

Authors

Johannes C. Bauer, University of St. Gallen, Switzerland
Vicki G. Morwitz, New York University, USA



Volume

NA - Advances in Consumer Research Volume 43 | 2015



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