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Anticipated pain of payment is “the negative psychological affective reaction consumers experience when they become cognizant that they will or may lose a certain amount of their financial resources in the future.” [4] These new definitions consider that pain of payment can be experienced both after and before making payments, can be ...
This delay causes the payment to stick in our memory less clearly and saliently. Furthermore, the payment is no longer perceived in isolation; rather, it is seen as a (relatively) small increase of an already large credit card bill. For example, it might be a change from $120 to $125, instead of a regular, out-of-pocket $5 cost.
The less transparent or further away from cash the form of payment employed is, the less an individual feels the "pain of paying" and thus is likely to spend more. [7] Furthermore, the differing physical appearance/form that credit cards have from cash may cause them to be viewed as "monopoly" money vs. real money, luring individuals to spend ...
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