Book contents
- The Cambridge Handbook of Consumer Psychology
- Cambridge Handbooks in Psychology
- The Cambridge Handbook of Consumer Psychology
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Introduction
- 1 Consumer Psychology of Individuals
- 1 Attitudinal Advocacy
- 2 Storytelling and Narrative Persuasion
- 3 Consumer Goals and Motivation
- 4 Consumer Financial Decision-Making
- 5 Marketplace Morality
- 6 A Triadic Framework of Luxury Consumption
- 7 Consumer Identity: A Comprehensive Review and Integration of Contemporary Research
- 8 Compensatory Consumption
- 9 Artificial Intelligence and Consumer Psychology
- 2 Consumer Psychology of Groups and Society
- 3 Methods for Understanding Consumer Psychology
- Index
- References
4 - Consumer Financial Decision-Making
from 1 - Consumer Psychology of Individuals
Published online by Cambridge University Press: 30 March 2023
Book contents
- The Cambridge Handbook of Consumer Psychology
- Cambridge Handbooks in Psychology
- The Cambridge Handbook of Consumer Psychology
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Introduction
- 1 Consumer Psychology of Individuals
- 1 Attitudinal Advocacy
- 2 Storytelling and Narrative Persuasion
- 3 Consumer Goals and Motivation
- 4 Consumer Financial Decision-Making
- 5 Marketplace Morality
- 6 A Triadic Framework of Luxury Consumption
- 7 Consumer Identity: A Comprehensive Review and Integration of Contemporary Research
- 8 Compensatory Consumption
- 9 Artificial Intelligence and Consumer Psychology
- 2 Consumer Psychology of Groups and Society
- 3 Methods for Understanding Consumer Psychology
- Index
- References
Summary
Research in consumer psychology is essential for developing a deep understanding of how consumers make financial decisions as well as for creating solutions to improve this process. Fortunately, there has been substantial growth in research in this area among consumer behavior and behavioral economics scholars in recent years, including in areas such as budgeting, spending, saving, investing, and borrowing and repaying credit card debt. The aim of the current chapter is to provide an overview of some of the most exciting developments in this area over the last decade that advance our understanding of the psychology underlying financial decisions. Key concepts we examine as influencing financial decisions include categorization, goals and motivation, choice architecture and nudges, social context, wealth perceptions, financial literacy, financial well-being and financial scarcity. In addition, we provide a call to action and roadmap for future research in the area.
- Type
- Chapter
- Information
- The Cambridge Handbook of Consumer Psychology , pp. 90 - 121Publisher: Cambridge University PressPrint publication year: 2023
References
2019 Consumer Response Annual Report. (2019). Consumer Financial Protection Bureau, www.consumerfinance.gov/data-research/research-reports/2019-consumer-response-annual-report/Google Scholar
Abeler, J., & Marklein, F. (2017). Fungibility, labels, and consumption. Journal of the European Economic Association, 15(1), 99–127.Google Scholar
Agarwal, S., Chomsisengphet, S., Mahoney, N., & Stroebel, J. (2015). Regulating consumer financial products: Evidence from credit cards. The Quarterly Journal of Economics, 130(1), 111–164.Google Scholar
Agarwal, S., Rosen, R. J., & Yao, V. (2016). Why do borrowers make mortgage refinancing mistakes? Management Science, 62(12), 3494–3509.Google Scholar
Amar, M., Ariely, D., Ayal, S., Cryder, C. E., & Rick, S. I. (2011). Winning the battle but losing the war: The psychology of debt management. Journal of Marketing Research, 48(SPL), S38–S50.Google Scholar
Atlas, S. A., Johnson, E. J., & Payne, J. W. (2017). Time preferences and mortgage choice. Journal of Marketing Research, 54(3), 415–429.Google Scholar
Atlas, S. A., Porto, N., & Xiao, J. J. (2018). Financial education and confidence in financial knowledge. In Gershoff, A., Kozinets, R., & White, T. (Eds.). Advances in Consumer Research, Vol. 46 (pp. 23–27). Association for Consumer Research.Google Scholar
Barber, B. M., & Odean, T. (2013). The behavior of individual investors. In Constantinides, G. M., Harris, M., & Stultz, R. M. (Eds.). Handbook of the Economics of Finance, Vol. 2 (pp. 1533–1570). Elsevier.Google Scholar
Bartels, D. M., Li, Y., & Bharti, R. (2021). How well do laboratory-derived estimates of time preference predict real-world behaviors? Comparisons to four benchmarks. Working Paper, The University of Chicago.Google Scholar
Bartels, D. M., & Urminsky, O. (2011). On intertemporal selfishness: How the perceived instability of identity underlies impatient consumption. Journal of Consumer Research, 38(1), 182–198.Google Scholar
Bartels, D. M., & Urminsky, O. (2015). To know and to care: How awareness and valuation of the future jointly shape consumer spending. Journal of Consumer Research, 41(6), 1469–1485.Google Scholar
Batista, R.M., Sussman, A.B. and Trueblood, J.S. (2023). Self-Other Differences in Perceptions of Wealth. Journal of Experimental Social Psychology, 104.Google Scholar
Baucells, M., & Hwang, W. (2017). A model of mental accounting and reference price adaptation. Management Science, 63(12), 4201–4218.Google Scholar
Bauer, J. C., Morwitz, V. G., & Nagengast, L. (2021). Interest-free financing promotions increase consumers’ demand for credit for experiential goods. Journal of the Association for Consumer Research, 6(1), 54–66.Google Scholar
Bearden, W. O., & Haws, K. L. (2012). How low spending control harms consumers. Journal of the Academy of Marketing Science, 40(1), 181–193.Google Scholar
Berman, J. Z., Tran, A. T., LynchJr., J. G., & Zauberman, G. (2016). Expense neglect in forecasting personal finances. Journal of Marketing Research, 53(4), 535–550.Google Scholar
Bertini, M., & Wathieu, L. (2008). Research note – Attention arousal through price partitioning. Marketing Science, 27(2), 236–246.Google Scholar
Besharat, A., Carrillat, F. A., & Ladik, D. M. (2014). When motivation is against debtors’ best interest: The illusion of goal progress in credit card debt repayment. Journal of Public Policy & Marketing, 33(2), 143–158.Google Scholar
Besharat, A., Varki, S., & Craig, A. W. (2015). Keeping consumers in the red: Hedonic debt prioritization within multiple debt accounts. Journal of Consumer Psychology, 25(2), 311–316.Google Scholar
Beshears, J., Choi, J. J., Laibson, D., Madrian, B. C., & Milkman, K. L. (2015). The effect of providing peer information on retirement savings decisions. The Journal of Finance, 70(3), 1161–1201.Google Scholar
Bolton, L. E., Bloom, P. N., & Cohen, J. B. (2011). Using loan plus lender literacy information to combat one-sided marketing of debt consolidation loans. Journal of Marketing Research, 48(SPL), S51–S59.Google Scholar
Borghans, L., Duckworth, A. L., Heckman, J. J., & Ter Weel, B. (2008). The economics and psychology of personality traits. Journal of Human Resources, 43(4), 972–1059.Google Scholar
Bricker, J., Krimmel, J., & Ramcharan, R. (2021). Signaling status: The impact of relative income on household consumption and financial decisions. Management Science, 67(4), 1993–2009.Google Scholar
Brown, A. L., & Lahey, J. N. (2015). Small victories: Creating intrinsic motivation in task completion and debt repayment. Journal of Marketing Research, 52(6), 768–783.Google Scholar
Bruhn, M., Ibarra, G. L., & McKenzie, D. (2014). The minimal impact of a large-scale financial education program in Mexico City. Journal of Development Economics, 108, 184–189.Google Scholar
Bryan, C. J., & Hershfield, H. E. (2012). You owe it to yourself: Boosting retirement saving with a responsibility-based appeal. Journal of Experimental Psychology. General, 141(3), 429–32.Google Scholar
Cannon, C., Goldsmith, K., & Roux, C. (2019). A self‐regulatory model of resource scarcity. Journal of Consumer Psychology, 29(1), 104–127.Google Scholar
Carlson, K. A., Wolfe, J., Blanchard, S. J., Huber, J. C., & Ariely, D. (2015). The budget contraction effect: How contracting budgets lead to less varied choice. Journal of Marketing Research, 52(3), 337–348.Google Scholar
Carpena, F., Cole, S., Shapiro, J., & Zia, B. (2019). The ABCs of financial education: Experimental evidence on attitudes, behavior, and cognitive biases. Management Science, 65(1), 346–369.Google Scholar
Carvalho, L. S., Meier, S., & Wang, S. W. (2016). Poverty and economic decision-making: Evidence from changes in financial resources at payday. American Economic Review, 106(2), 260–284.Google Scholar
Cheema, A., & Soman, D. (2006). Malleable mental accounting: The effect of flexibility on the justification of attractive spending and consumption decisions. Journal of Consumer Psychology, 16(1), 33–44.Google Scholar
Cheng, A., & Cryder, C. (2018). Double mental discounting: When a single price promotion feels twice as nice. Journal of Marketing Research, 55(2), 226–238.Google Scholar
Choe, Y., & Kan, C. (2021). Budget depreciation: When budgeting early increases spending. Journal of Consumer Research, 47(6), 937–958.Google Scholar
Colby, H. A., & Chapman, G. B. (2013). Savings, subgoals, and reference points. Judgment and Decision Making, 8, 16–24.Google Scholar
Consumer Response Annual Report. (2019). Consumer Financial Protection Bureau, www.consumerfinance.gov/data-research/research-reports/2019-consumer-response-annual-reportGoogle Scholar
De La Rosa, W., & Tully, S. M. (2022). Impact of payment frequency on consumer spending and subjective wealth perceptions. Journal of Consumer Research, 48(6), 991–1009.Google Scholar
De La Rosa, W., Sussman, A. B., Giannella, E., & Hell, M. (2022). Communicating amounts in terms of commonly used budgeting periods increases intentions to claim government benefits. Proceedings of the National Academy of Sciences, 119(37), e2205877119.Google Scholar
Dholakia, U., Tam, L., Yoon, S., & Wong, N. (2016). The ant and the grasshopper: Understanding personal saving orientation of consumers. Journal of Consumer Research, 43(1), 134–155.Google Scholar
Dias, R. S., Sharma, E., & Fitzsimons, G. J. (2022). Spending and Happiness: The Role of Perceived Financial Constraints. Journal of Consumer Research, 49(3), 373-388.Google Scholar
Duclos, R. (2015). The psychology of investment behavior: (De)biasing financial decision‐making one graph at a time. Journal of Consumer Psychology, 25(2), 317–325.Google Scholar
Echelbarger, M., Gelman, S. A., & Kalish, C. W. (2019). Getting what you pay for: Children’s use of market norms to regulate exchanges. Child Development, 90(6), 2071–2085.Google Scholar
Erat, S., & Bhaskaran, S. R. (2012). Consumer mental accounts and implications to selling base products and add-ons. Marketing Science, 31(5), 801–818.Google Scholar
Evers, E. R., Imas, A., & Kang, C. (2022). On the role of similarity in mental accounting and hedonic editing. Psychological Review, 129(4), 777–789.Google Scholar
Fei, L., & Bartels, D. (2021). Mental representation of budgeting categories. In Proceedings of the Annual Meeting of the Cognitive Science Society (Vol. 43, No. 43).Google Scholar
Fernandes, D., LynchJr., J. G., & Netemeyer, R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), 1861–1883.Google Scholar
Fernbach, P. M., Kan, C., & LynchJr., J. G. (2015). Squeezed: Coping with constraint through efficiency and prioritization. Journal of Consumer Research, 41(5), 1204–1227.Google Scholar
Frank, J. M. (2011). Do credit card users systematically underestimate their interest rates? Evidence from the Survey of Consumer Finances. Journal of Public Policy & Marketing, 30(1), 133–139.Google Scholar
Frydman, C., Hartzmark, S. M., & Solomon, D. H. (2018). Rolling mental accounts. The Review of Financial Studies, 31(1), 362–397.Google Scholar
Gal, D., & McShane, B. B. (2012). Can small victories help win the war? Evidence from consumer debt management. Journal of Marketing Research, 49(4), 487–501.Google Scholar
Garbinsky, E. N., & Gladstone, J. J. (2019). The consumption consequences of couples pooling finances. Journal of Consumer Psychology, 29(3), 353–369.Google Scholar
Garbinsky, E. N., Gladstone, J. J., Nikolova, H., & Olson, J. G. (2020). Love, lies, and money: Financial infidelity in romantic relationships. Journal of Consumer Research, 47(1), 1–24.Google Scholar
Garbinsky, E. N., Klesse, A. K., & Aaker, J. (2014). Money in the bank: Feeling powerful increases saving. Journal of Consumer Research, 41(3), 610–623.Google Scholar
Garbinsky, E. N., Mead, N. L., & Gregg, D. (2021). Popping the positive illusion of financial responsibility can increase personal savings: Applications in emerging and Western markets. Journal of Marketing, 85(3), 97–112.Google Scholar
Gasiorowska, A. (2014). The relationship between objective and subjective wealth is moderated by financial control and mediated by money anxiety. Journal of Economic Psychology, 43, 64–74.Google Scholar
Gathergood, J., Mahoney, N., Stewart, N., & Weber, J. (2019). How do individuals repay their debt? The balance-matching heuristic. American Economic Review, 109(3), 844–875.Google Scholar
Gelman, S. A., & Echelbarger, M. (2019). Children and consumer behavior: Insights, questions, and new frontiers. Journal of Consumer Psychology, 29(2), 344–349.Google Scholar
Godek, J., & Murray, K. B. (2012). Effects of spikes in the price of gasoline on behavioral intentions: A mental accounting explanation. Journal of Behavioral Decision Making, 25(3), 295–302.Google Scholar
Goldstein, D. G., Hershfield, H. E., & Benartzi, S. (2016). The illusion of wealth and its reversal. Journal of Marketing Research, 53(5), 804–813.Google Scholar
Goodyear, L., Howard, C., Lukas, M., & Shah, A. (2020). Exploring the payday effect: Anxiety before payday leads to overspending. In Argo, J., Lowrey, T. M., & Jensen Schau, H. (Eds.). NA – Advances in Consumer Research, Vol. 48 (pp. 372–373). Association for Consumer Research.Google Scholar
Gourville, J. T. (1998). Pennies-a-day: The effect of temporal reframing on transaction evaluation. Journal of Consumer Research, 24(4), 395–408.Google Scholar
Greenberg, A. E., & Hershfield, H. E. (2019). Financial decision making. Consumer Psychology Review, 2(1), 17–29.Google Scholar
Greenberg, A. E., Hershfield, H. E., Payne, J. W., Shu, S. B., & Spiller, S. A. (2017). Exploring How Uncertainty in Longevity Estimates Predicts SSA Claiming Decisions (No. 17-09). National Bureau of Economic Research.Google Scholar
Greenberg, A. E., Sussman, A. B., & Hershfield, H. E. (2020). Financial product sensitivity predicts financial health. Journal of Behavioral Decision Making, 33(1), 15–26.Google Scholar
Grinstein-Weiss, M., Cryder, C., Despard, M. R., Perantie, D. C., Oliphant, J. E., & Ariely, D. (2017). The role of choice architecture in promoting saving at tax time: Evidence from a large-scale field experiment. Behavioral Science & Policy, 3(2), 20–38.Google Scholar
Griskevicius, V., Ackerman, J. M., Cantú, S. M., et al. (2013). When the economy falters, do people spend or save? Responses to resource scarcity depend on childhood environments. Psychological Science, 24(2), 197–205.Google Scholar
Gross, D. B., & Souleles, N. S. (2002). Do liquidity constraints and interest rates matter for consumer behavior? Evidence from credit card data. The Quarterly Journal of Economics, 117(1), 149–185.Google Scholar
Hadar, L., Sood, S., & Fox, C. R. (2013). Subjective knowledge in consumer financial decisions. Journal of Marketing Research, 50(3), 303–316.Google Scholar
Hamilton, R., Thompson, D., Bone, S., et al. (2019). The effects of scarcity on consumer decision journeys. Journal of the Academy of Marketing Science, 47(3), 532–550.Google Scholar
Hamilton, R. W., Mittal, C., Shah, A., Thompson, D. V., & Griskevicius, V. (2019). How financial constraints influence consumer behavior: An integrative framework. Journal of Consumer Psychology, 29(2), 285–305.Google Scholar
Hartzmark, S. M., & Sussman, A. B. (2019). Do investors value sustainability? A natural experiment examining ranking and fund flows. The Journal of Finance, 74(6), 2789–2837.Google Scholar
Hastings, J., & Shapiro, J. M. (2018). How are SNAP benefits spent? Evidence from a retail panel. American Economic Review, 108(12), 3493–3540.Google Scholar
Hastings, J. S., & Mitchell, O. S. (2011). How financial literacy and impatience shape retirement wealth and investment behaviors. Michigan Retirement Research Center Research Paper, (2010-233), 2018–2010.Google Scholar
Hastings, J. S., & Shapiro, J. M. (2013). Fungibility and consumer choice: Evidence from commodity price shocks. The Quarterly Journal of Economics, 128(4), 1449–1498.Google Scholar
Hastings, J. S., Madrian, B. C., & Skimmyhorn, W. L. (2013). Financial literacy, financial education, and economic outcomes. Annual Review of Economics, 5(1), 347–373.Google Scholar
Haushofer, J., & Fehr, E. (2014). On the psychology of poverty. Science, 344(6186), 862–867.Google Scholar
Haws, K. L., Davis, S. W., & Dholakia, U. M. (2016). Control over what? Individual differences in general versus eating and spending self-control. Journal of Public Policy & Marketing, 35(1), 37–57.Google Scholar
Heath, C., & Soll, J. B. (1996). Mental budgeting and consumer decisions. Journal of Consumer Research, 23(1), 40–52.Google Scholar
Heath, C., Larrick, R. P., & Wu, G. (1999). Goals as reference points. Cognitive Psychology, 38(1), 79–109.Google Scholar
Helion, C., & Gilovich, T. (2014). Gift cards and mental accounting: Green‐lighting hedonic spending. Journal of Behavioral Decision Making, 27(4), 386–393.CrossRefGoogle Scholar
Henderson, P. W., & Peterson, R. A. (1992). Mental accounting and categorization. Organizational Behavior and Human Decision Processes, 51(1), 92–117.Google Scholar
Hershfield, H. E. (2019). The self over time. Current Opinion in Psychology, 26, 72–75.Google Scholar
Hershfield, H. E., & Bartels, D. M. (2018). The future self. In Oettingen, G., Sevincer, A. T., & Gollwitzer, P. (Eds.). The Psychology of Thinking about the Future (pp. 89–109). The Guilford Press.Google Scholar
Hershfield, H. E., & Roese, N. J. (2015). Dual payoff scenario warnings on credit card statements elicit suboptimal payoff decisions. Journal of Consumer Psychology, 25(1), 15–27.Google Scholar
Hershfield, H. E., Goldstein, D. G., Sharpe, W. F., et al. (2011). Increasing saving behavior through age-progressed renderings of the future self. Journal of Marketing Research, 48(SPL), S23–S37.Google Scholar
Hershfield, H. E., Sussman, A. B., O’Brien, R. L., & Bryan, C. J. (2015). Leveraging psychological insights to encourage the responsible use of consumer debt. Perspectives on Psychological Science, 10(6), 749–752.Google Scholar
Hill, R. P., & Sharma, E. (2020). Consumer vulnerability. Journal of Consumer Psychology, 30(3), 551–570.Google Scholar
Hirshman, S. D., & Sussman, A. B. (2022). Minimum payments alter debt repayment strategies across multiple cards. Journal of Marketing, 86(2), 48–65.Google Scholar
Homonoff, T., O’Brien, R., & Sussman, A. B. (2021). Does knowing your FICO score change financial behavior? Evidence from a field experiment with student loan borrowers. Review of Economics and Statistics, 103(2), 236–250.Google Scholar
Hossain, M. T. (2018). How cognitive style influences the mental accounting system: Role of analytic versus holistic thinking. Journal of Consumer Research, 45(3), 615–632.Google Scholar
Howard, C. R., Hardisty, J. D., & Griffin., W. D. (2021). Income Prediction Bias in the Gig Economy. ACR North American Advances.Google Scholar
Howard, R. C. C., Hardisty, D. J., Sussman, A. B., & Lukas, M. F. (2022). Understanding and neutralizing the expense prediction bias: The role of accessibility, typicality, and skewness. Journal of Marketing Research, 59(2), 435–452.Google Scholar
Huang, L., Ghosh, A. P., Li, R., & Ince, E. C. (2020). Pay me with Venmo: Effect of service providers’ decisions to adopt P2P payment methods on consumer evaluations. Journal of the Association for Consumer Research, 5(3), 271–281.Google Scholar
Jiang, Z., Zhang, D. J., & Chan, T. (2021). How do bonus payments affect the demand for auto loans and their delinquency? Journal of Marketing Research, 58(3), 476–496.Google Scholar
Johnson, E. J., Meier, S., & Toubia, O. (2019). What’s the catch? Suspicion of bank motives and sluggish refinancing. The Review of Financial Studies, 32(2), 467–495.Google Scholar
Karlan, D., McConnell, M., Mullainathan, S., & Zinman, J. (2016). Getting to the top of mind: How reminders increase saving. Management Science, 62(12), 3393–3411.Google Scholar
Katz, D., Kan, C., & Sussman, A. B. (2019). The Impact of Payment Plans on Feelings of Financial Constraint. ACR North American Advances.Google Scholar
Kelting, K., Robinson, S., & Lutz, R. J. (2019). Would you like to round up and donate the difference? Roundup requests reduce the perceived pain of donating. Journal of Consumer Psychology, 29(1), 70–78.Google Scholar
Kettle, K. L., Trudel, R., Blanchard, S. J., & Häubl, G. (2016). Repayment concentration and consumer motivation to get out of debt. Journal of Consumer Research, 43(3), 460–477.Google Scholar
Keys, B. J., & Wang, J. (2019). Minimum payments and debt paydown in consumer credit cards. Journal of Financial Economics, 131(3), 528–548.Google Scholar
Kim, J., Gutter, M. S., & Spangler, T. (2017). Review of family financial decision making: Suggestions for future research and implications for financial education. Journal of Financial Counseling and Planning, 28(2), 253–267.Google Scholar
Kim, S. J., Wang, R. J. H., & Malthouse, E. C. (2015). The effects of adopting and using a brand’s mobile application on customers’ subsequent purchase behavior. Journal of Interactive Marketing, 31, 28–41.Google Scholar
Knoll, M. A., Appelt, K. C., Johnson, E. J., & Westfall, J. E. (2015). Time to retire: Why Americans claim benefits early & how to encourage delay. Behavioral Science & Policy, 1(1), 53–62.Google Scholar
Kőszegi, B., & Matějka, F. (2020). Choice simplification: A theory of mental budgeting and naive diversification. The Quarterly Journal of Economics, 135(2), 1153–1207.Google Scholar
Krefeld-Schwalb, A., Bartels, D. M., & Johnson, E. (2021). Not Just Impulsiveness: The Psychometric Characteristics of Intertemporal Preferences in Consumer Behavior. Working Paper, Rotterdam School of Management, Erasmus University.Google Scholar
Krishnamurthy, P., & Prokopec, S. (2010). Resisting that triple-chocolate cake: Mental budgets and self-control. Journal of Consumer Research, 37(1), 68–79.Google Scholar
Larson, J. S., & Hamilton, R. (2012). When budgeting backfires: How self-imposed price restraints can increase spending. Journal of Marketing Research, 49(2), 218–230.Google Scholar
Lee, C. J., & Andrade, E. B. (2011). Fear, social projection, and financial decision making. Journal of Marketing Research, 48(SPL), S121–S129.Google Scholar
Levav, J., & McGraw, A. P. (2009). Emotional accounting: How feelings about money influence consumer choice. Journal of Marketing Research, 46(1), 66–80.Google Scholar
Li, Y., Krefeld-Schwalb, A., Wall, D. G., Johnson, E. J., Toubia, O., & Bartels, D. M. (2020). The more you ask, the less you get: When additional questions hurt external validity. Journal of Marketing Research, DOI: 10.1177/00222437211073581.Google Scholar
Litterscheidt, R., & Streich, D. J. (2020). Financial education and digital asset management: What’s in the black box? Journal of Behavioral and Experimental Economics, 87, 101573.Google Scholar
Lukas, M., & Howard, R. C. (2022). The influence of budgets on consumer spending. Journal of Consumer Research, ucac024.Google Scholar
Lusardi, A. (2012). Numeracy, financial literacy, and financial decision-making (No. w17821). National Bureau of Economic Research.Google Scholar
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44.Google Scholar
Madrian, B. C., Hershfield, H. E., Sussman, A. B., et al. (2017). Behaviorally informed policies for household financial decisionmaking. Behavioral Science & Policy, 3(1), 26–40.Google Scholar
Martensen, A., & Gronholdt, L. (2008). Children’s influence on family decision making. Innovative Marketing, 4(4), 14–22.Google Scholar
Mazar, N., Mochon, D., & Ariely, D. (2018). If you are going to pay within the next 24 hours, press 1: Automatic planning prompt reduces credit card delinquency. Journal of Consumer Psychology, 28(3), 466–476.Google Scholar
McKenzie, C. R., & Liersch, M. J. (2011). Misunderstanding savings growth: Implications for retirement savings behavior. Journal of Marketing Research, 48(SPL), S1–S13.Google Scholar
Meier, S., & Sprenger, C. (2010). Present-biased preferences and credit card borrowing. American Economic Journal: Applied Economics, 2(1), 193–210.Google Scholar
Meier, S., & Sprenger, C. D. (2012). Time discounting predicts creditworthiness. Psychological Science, 23(1), 56–58.CrossRefGoogle ScholarPubMed
Muehlbacher, S., & Kirchler, E. (2019). Individual differences in mental accounting. Frontiers in Psychology, 10, 2866.Google Scholar
Navarro-Martinez, D., Salisbury, L. C., Lemon, K. N., Stewart, N., Matthews, W. J., & Harris, A. J. (2011). Minimum required payment and supplemental information disclosure effects on consumer debt repayment decisions. Journal of Marketing Research, 48(SPL), S60–S77.Google Scholar
Netemeyer, R. G., Warmath, D., Fernandes, D., & LynchJr., J. G. (2018). How am I doing? Perceived financial well-being, its potential antecedents, and its relation to overall well-being. Journal of Consumer Research, 45(1), 68–89.Google Scholar
O’Connor, G. E., Newmeyer, C. E., Wong, N. Y. C., et al. (2019). Conceptualizing the multiple dimensions of consumer financial vulnerability. Journal of Business Research, 100, 421–430.CrossRefGoogle Scholar
O’Donnell, M., Dev, A. S., Antonoplis, S., et al. (2021). Empirical audit and review and an assessment of evidentiary value in research on the psychological consequences of scarcity. PNAS Proceedings of the National Academy of Sciences of the United States of America, 118(44).Google Scholar
Olivola, C. Y., & Sussman, A. B. (2015). Taxes and consumer behavior. In Norton, M. I., Rucker, D. D., & Lamberton, C. (Eds.). The Cambridge Handbook of Consumer Psychology (Reprint ed., pp. 564–588). Cambridge University Press.CrossRefGoogle Scholar
Olson, J. G., & Rick, S. I. (2014). Managing debt and managing each other: Debt management decisions in interpersonal contexts. ACR North American Advances, p. 184–188.Google Scholar
Olson, J. G., & Rick, S. I. (2018). Managing debt and managing each other: The interpersonal dynamics of joint financial decisions. Available at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2637637Google Scholar
Olson, J. G., & Rick, S. I. (2022). “You spent how much?” Toward an understanding of how romantic partners respond to each other’s financial decisions. Current Opinion in Psychology, 43, 70–74.Google Scholar
Ordabayeva, N., & Chandon, P. (2011). Getting ahead of the Joneses: When equality increases conspicuous consumption among bottom-tier consumers. Journal of Consumer Research, 38(1), 27–41.Google Scholar
Paley, A., Tully, S. M., & Sharma, E. (2019). Too constrained to converse: The effect of financial constraints on word of mouth. Journal of Consumer Research, 45(5), 889–905.Google Scholar
Park, H., Lalwani, A. K., & Silvera, D. H. (2020). The impact of resource scarcity on price-quality judgments. Journal of Consumer Research, 46(6), 1110–1124.Google Scholar
Payne, B. K., Brown-Iannuzzi, J. L., & Hannay, J. W. (2017). Economic inequality increases risk taking. PNAS Proceedings of the National Academy of Sciences of the United States of America, 114(18), 4643–4648.Google Scholar
Payne, J. W., Sagara, N., Shu, S. B., Appelt, K. C., & Johnson, E. J. (2013). Life expectancy as a constructed belief: Evidence of a live-to or die-by framing effect. Journal of Risk and Uncertainty, 46(1), 27–50.Google Scholar
Peetz, J., & Buehler, R. (2009). Is there a budget fallacy? The role of savings goals in the prediction of personal spending. Personality and Social Psychology Bulletin, 35(12), 1579–1591.Google Scholar
Petersen, J. A., Kushwaha, T., & Kumar, V. (2015). Marketing communication strategies and consumer financial decision making: The role of national culture. Journal of Marketing, 79(1), 44–63.Google Scholar
Reinholtz, N., Bartels, D. M., & Parker, J. R. (2015). On the mental accounting of restricted-use funds: How gift cards change what people purchase. Journal of Consumer Research, 42(4), 596–614.Google Scholar
Rick, S. I., Small, D. A., & Finkel, E. J. (2011). Fatal (fiscal) attraction: Spendthrifts and tightwads in marriage. Journal of Marketing Research, 48(2), 228–237.Google Scholar
Ross, G. R., Meloy, M. G., & Carlson, K. A. (2020). Preference refinement after a budget contraction. Journal of Consumer Research, 47(3), 412–430.Google Scholar
Salisbury, L. C. (2014). Minimum payment warnings and information disclosure effects on consumer debt repayment decisions. Journal of Public Policy & Marketing, 33(1), 49–64.Google Scholar
Salisbury, L. C., & Zhao, M. (2020). Active choice format and minimum payment warnings in credit card repayment decisions. Journal of Public Policy & Marketing, 39(3), 284–304.CrossRefGoogle Scholar
Shah, A. K., Mullainathan, S., & Shafir, E. (2012). Some consequences of having too little. Science, 338(6107), 682–685.Google Scholar
Shah, A. K., Shafir, E., & Mullainathan, S. (2015). Scarcity frames value. Psychological Science, 26(4), 402–412.Google Scholar
Sharma, E., & Alter, A. L. (2012). Financial deprivation prompts consumers to seek scarce goods. Journal of Consumer Research, 39(3), 545–560.Google Scholar
Sharma, E., Tully, S., & Cryder, C. (2021). Psychological ownership of (borrowed) money. Journal of Marketing Research, 58(3), 497–514.Google Scholar
Sheehan, D., & Van Ittersum, K. (2018). In-store spending dynamics: How budgets invert relative-spending patterns. Journal of Consumer Research, 45(1), 49–67.Google Scholar
Shu, S. B. (2018). Psychological ownership in financial decisions. In Peck, J., & Shu, S. B. (Eds.). Psychological Ownership and Consumer Behavior (pp. 165–176). Springer.Google Scholar
Shu, S. B., & Payne, J. W. (2013). Life expectation judgments, fairness, and loss aversion in the psychology of Social Security claiming decisions (No. onb13–05). National Bureau of Economic Research.Google Scholar
Shu, S. B., & Shu, S. D. (2018). The psychology of decumulation decisions during retirement. Policy Insights from the Behavioral and Brain Sciences, 5(2), 216–223.Google Scholar
Shu, S. B., Zeithammer, R., & Payne, J. W. (2016). Consumer preferences for annuity attributes: Beyond net present value. Journal of Marketing Research, 53(2), 240–262.Google Scholar
Smith, C. E., Echelbarger, M., Gelman, S. A., & Rick, S. I. (2018). Spendthrifts and tightwads in childhood: Feelings about spending predict children’s financial decision making. Journal of Behavioral Decision Making, 31(3), 446–460.Google Scholar
Smith, J. P., McArdle, J. J., & Willis, R. (2010). Financial decision making and cognition in a family context. The Economic Journal, 120(548), F363–F380.Google Scholar
Soll, J. B., Keeney, R. L., & Larrick, R. P. (2013). Consumer misunderstanding of credit card use, payments, and debt: Causes and solutions. Journal of Public Policy & Marketing, 32(1), 66–81.Google Scholar
Soman, D., & Cheema, A. (2011). Earmarking and partitioning: Increasing saving by low-income households. Journal of Marketing Research, 48(SPL), S14–S22.Google Scholar
Soman, D., & Zhao, M. (2011). The fewer the better: Number of goals and savings behavior. Journal of Marketing Research, 48(6), 944–957.Google Scholar
Soster, R. L., Gershoff, A. D., & Bearden, W. O. (2014). The bottom dollar effect: The influence of spending to zero on pain of payment and satisfaction. Journal of Consumer Research, 41(3), 656–677.Google Scholar
Stewart, N. (2009). The cost of anchoring on credit-card minimum repayments. Psychological Science, 20(1), 39–41.CrossRefGoogle ScholarPubMed
Strahilevitz, M. A., Odean, T., & Barber, B. M. (2011). Once burned, twice shy: How naive learning, counterfactuals, and regret affect the repurchase of stocks previously sold. Journal of Marketing Research, 48(SPL), S102–S120.Google Scholar
Sussman, A. B., & Alter, A. L. (2012). The exception is the rule: Underestimating and overspending on exceptional expenses. Journal of Consumer Research, 39(4), 800–814.Google Scholar
Sussman, A. B., & O’Brien, R. L. (2016). Knowing when to spend: Unintended financial consequences of earmarking to encourage savings. Journal of Marketing Research, 53(5), 790–803.CrossRefGoogle Scholar
Sussman, A. B., & Olivola, C. Y. (2011). Axe the tax: Taxes are disliked more than equivalent costs. Journal of Marketing Research, 48(SPL), S91–S101.Google Scholar
Sussman, A. B., & Shafir, E. (2012). On assets and debt in the psychology of perceived wealth. Psychological Science, 23(1), 101–108.Google Scholar
Sussman, A. B., Paley, A., & Alter, A. L. (2021). How and why our eating decisions neglect infrequently consumed foods. Journal of Consumer Research, 48(2), 251–269.Google Scholar
Sussman, A. B., Sharma, E., & Alter, A. L. (2015). Framing charitable donations as exceptional expenses increases giving. Journal of Experimental Psychology: Applied, 21(2), 130.Google ScholarPubMed
Tam, L., & Dholakia, U. (2014). Saving in cycles: How to get people to save more money. Psychological Science, 25(2), 531–537.Google Scholar
Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183–206.Google Scholar
Trueblood, J., & Sussman, A. (2021). When a gain becomes a loss: The effect of wealth predictions on financial decisions. Cognition, 215, 10422.Google Scholar
Tully, S. M., & Sharma, E. (2018). Context-dependent drivers of discretionary debt decisions: Explaining willingness to borrow for experiential purchases. Journal of Consumer Research, 44(5), 960–973.Google Scholar
Tully, S. M., & Sharma, E. (2022). Consumer wealth. Consumer Psychology Review, 5(1), 125–143.Google Scholar
Tully, S. M., Hershfield, H. E., & Meyvis, T. (2015). Seeking lasting enjoyment with limited money: Financial constraints increase preference for material goods over experiences. Journal of Consumer Research, 42(1), 59–75.Google Scholar
Ülkümen, G., & Cheema, A. (2011). Framing goals to influence personal savings: The role of specificity and construal level. Journal of Marketing Research, 48(6), 958–969.Google Scholar
Ülkümen, G., Thomas, M., & Morwitz, V. G. (2008). Will I spend more in 12 months or a year? The effect of ease of estimation and confidence on budget estimates. Journal of Consumer Research, 35(2), 245–256.Google Scholar
Urminsky, O. (2017). The role of psychological connectedness to the future self in decisions over time. Current Directions in Psychological Science, 26(1), 34–39.Google Scholar
Vana, P., Lambrecht, A., & Bertini, M. (2018). Cashback is cash forward: Delaying a discount to entice future spending. Journal of Marketing Research, 55(6), 852–868.Google Scholar
Wang, R. J. H., Malthouse, E. C., & Krishnamurthi, L. (2015). On the go: How mobile shopping affects customer purchase behavior. Journal of Retailing, 91(2), 217–234.Google Scholar
Wang, Y., & Sussman, A. B. (2021). When More is Not Better: Financial Constraints Jeopardize Sustainability by Increasing Preferences for Quantity Over Quality. Working Paper, The University of Chicago.Google Scholar
Ward, A. F., & LynchJr., J. G. (2019). On a need-to-know basis: How the distribution of responsibility between couples shapes financial literacy and financial outcomes. Journal of Consumer Research, 45(5), 1013–1036.Google Scholar
Xiao, J. J., Tang, C., Serido, J., & Shim, S. (2011). Antecedents and consequences of risky credit behavior among college students: Application and extension of the theory of planned behavior. Journal of Public Policy & Marketing, 30(2), 239–245.Google Scholar
Yoon, H., Yang, Y., & Morewedge, C. K. (2022). Early cost realization and college choice. Journal of Marketing Research, 59(1), 136–152.Google Scholar
Yoon, S., & Kim, H. C. (2016). Keeping the American dream alive: The interactive effect of perceived economic mobility and materialism on impulsive spending. Journal of Marketing Research, 53(5), 759–772.Google Scholar
Zhang, C. Y., & Sussman, A. B. (2018a). The role of mental accounting in household spending and investing decisions. In Chaffin, C. R. (Ed). Client Psychology (pp. 65–96). CFP Board Center for Financial Planning Series. Wiley.Google Scholar
Zhang, C. Y., & Sussman, A. B. (2018b). Perspectives on mental accounting: An exploration of budgeting and investing. Financial Planning Review, 1(1–2), e1011.Google Scholar
Zhang, C. Y., Sussman, A. B., Wang-Ly, N., & Lyu, J. K. (2022). How Consumers Budget. Journal of Economic Behavior & Organization, 204, 69–88.Google Scholar
Zhang, Y., Wilcox, R. T., & Cheema, A. (2020). The effect of student loan debt on spending: The role of repayment format. Journal of Public Policy & Marketing, 39(3), 305–318.Google Scholar