A Structural Test of Mental Accounting and Consumer Fungibility From Credit Card Expenditures

We compare preferences for credit card versus debit card utilization for a variety of purchases. Using transaction-level data, we estimate that to compensate consumers for every $1 in debt-bearing credit card usage would require over $2 in cash subsidies. Thus, we reject the notion that consumer preferences exhibit rational fungibility.



Citation:

Nicholas Pretnar, Christopher Olivola, and Alan Montgomery (2019) ,"A Structural Test of Mental Accounting and Consumer Fungibility From Credit Card Expenditures", in NA - Advances in Consumer Research Volume 47, eds. Rajesh Bagchi, Lauren Block, and Leonard Lee, Duluth, MN : Association for Consumer Research, Pages: 232-236.

Authors

Nicholas Pretnar, Carnegie Mellon University, USA
Christopher Olivola, Carnegie Mellon University, USA
Alan Montgomery, Carnegie Mellon University, USA



Volume

NA - Advances in Consumer Research Volume 47 | 2019



Share Proceeding

Featured papers

See More

Featured

How Regional Diasporic Consumer Experiences Produce Transnational Imaginary

Mark Buschgens, RMIT University
Bernardo Figueiredo, RMIT University
Kaleel Rahman, RMIT University

Read More

Featured

Repeat Performances Decrease Consumer Perceptions of Authenticity

Rachel Gershon, Washington University, USA
Rosanna Smith, University of Georgia, USA

Read More

Featured

Time-insensitive Budget Tracking: Nudging Consumers to Spread out Spending over Time

Liang Huang, University of Arizona, USA
Anastasiya Pocheptsova Ghosh, University of Arizona, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.