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Related Concept Videos

Observational Studies01:11

Observational Studies

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Observational studies are a type of analytical study where researchers observe events without any interventions. In other words, the researcher does not influence the response variable or the experiment's outcome.
There are three types of observational studies – Prospective, retrospective, and cross-sectional.
Prospective Study
Prospective studies, also known as longitudinal or cohort studies, are carried out by collecting future data from groups sharing similar characteristics. One...
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Cognitive Dissonance01:38

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Social psychologists have documented that feeling good about ourselves and maintaining positive self-esteem is a powerful motivator of human behavior (Tavris & Aronson, 2008). In the United States, members of the predominant culture typically think very highly of themselves and view themselves as good people who are above average on many desirable traits (Ehrlinger, Gilovich, & Ross, 2005). Often, our behavior, attitudes, and beliefs are affected when we experience a threat to our...
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Social Exchange Theory02:06

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We have discussed why we form relationships, what attracts us to others, and different types of love. But what determines whether we are satisfied with and stay in a relationship? One theory that provides an explanation is social exchange theory. According to social exchange theory, we act as naïve economists in keeping a tally of the ratio of costs and benefits of forming and maintaining a relationship with others (Rusbult & Van Lange, 2003).
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Framing Effects03:26

Framing Effects

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Information is everywhere and its presentation—such as how and when items are presented—can impact our perceptions and decisions surrounding the info. This broad concept umbrellas framing effects—influences that occur due to the way information is framed in its appearance, whether it’s purely the order or the specific wording of a message. Let’s take a look at numerous ways in which two versions of something can objectively say the same thing, yet we respond in...
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The Availability Heuristic01:08

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A heuristic is a general problem-solving framework (Tversky & Kahneman, 1974). You can think of these as mental shortcuts that are used to solve problems. Different types of heuristics are used in different types of situations, and the impulse to use a heuristic occurs when one of five conditions is met (Pratkanis, 1989):
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Related Experiment Video

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Using a Virtual Store As a Research Tool to Investigate Consumer In-store Behavior
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How and when does a used (vs. unused) account affect consumption behavior?

Siyuan Yin1, Marissa A Sharif1

  • 1Wharton School, University of Pennsylvania.

Journal of Experimental Psychology. General
|January 25, 2024
PubMed
Summary

Spending from a partially used account encourages more spending than from a new one. This occurs because people devalue remaining funds in used accounts due to internal comparisons, impacting consumption and charitable giving.

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Area of Science:

  • Consumer Psychology
  • Behavioral Economics
  • Decision Science

Background:

  • Understanding consumer spending habits is crucial for economic and marketing strategies.
  • Previous research has explored factors influencing spending, but the impact of an account's 'used' status is less understood.

Purpose of the Study:

  • To investigate how the perceived usage status of an account (used vs. unused) influences consumption behavior.
  • To explore the underlying psychological mechanism driving this effect and its boundary conditions.
  • To examine the generalizability of this effect to charitable giving.

Main Methods:

  • Conducted seven empirical studies with a large sample size (N = 8,667).
  • Utilized various account types, including gift cards, checking accounts, and reward points.
  • Manipulated the 'used' versus 'unused' status of accounts and measured subsequent spending and giving behavior.

Main Results:

  • Participants consistently spent more resources from used accounts compared to equivalent unused accounts.
  • The effect is driven by within-account comparisons, where remaining resources are devalued in used accounts.
  • The proportion of remaining resources moderates the effect, and it extends to charitable donations.

Conclusions:

  • The 'used' status of an account significantly influences spending and giving behavior.
  • Leveraging the perception of account usage can inform strategies for expense management and charitable fundraising.
  • Findings offer practical insights for policymakers, businesses, and individuals.