A Reason to Spend? the Effect of Unexpected Price and Wealth Changes on Hedonic Purchases
We demonstrate how an unexpected price decrease or asset-value increase provides consumers a reason to spend. While an income increase affects purchase in a manner similar to a stock value increase, an income decrease inhibits purchase more than an (uncertain) stock value decrease. Increasing spending when asset-values increase but not decreasing it when asset-values decrease can lead to individuals spending more than their means. Using an attitudinal measure of “spending asset-value increases,” data from the 2004 Survey of Consumer Finances reveal that spenders of asset-value increases have higher mortgages and credit card debt than non-spenders.
Amar Cheema (2008) ,"A Reason to Spend? the Effect of Unexpected Price and Wealth Changes on Hedonic Purchases", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 157-161.
Amar Cheema, Washington University, St. Louis
NA - Advances in Consumer Research Volume 35 | 2008
The Influence of Conflicting and Complementary Benefit Goals on the Execution of Accuracy and Effort Process Goals
Felipe Marinelli Affonso, University of Florida, USA
Chris Janiszewski, University of Florida, USA
B2. The Prevention Oriented Chameleon: Mimicry in a Prevention Orientation Leads to More Brand Trust
Judith Willberger, Technical University of Munich
Gavan Fitzsimons, Duke University, USA
Promoting Pi Day: Consumer Inferences about Special Day-Themed Promotions
Daniel M. Zane, University of Miami, USA
Kelly Haws, Vanderbilt University, USA
Rebecca Walker Reczek, Ohio State University, USA