LAWRENCE - According to new research, how you pay for new products determines how you perceive the product. Assistant KU Professor Promothes Chatterjee studied the spending habits of shoppers and found people who use credit cards find the benefit of the product important; whereas people who use cash find the cost most important.
“Beauty lies within the eyes of the cardholder,” said Chatterjee. Previous research shows consumers are willing to spend more when there’s a credit card in hand but Chatterjee’s research suggests a link between consumer perception of product and the form of payment.
The professor says marketers are well versed in consumer spending habits and the research might help shoppers get a better grasp on why they seem to overspend when using plastic. Chatterjee's research will be published in the Journal of Consumer Research, which comes out in April.