Mental accounting and small windfalls: Evidence from an online grocer
We study the effect of small windfalls on consumer spending decisions by comparing the purchases online grocery customers make when redeeming $10-off coupons with the purchases they make without coupons. Controlling for customer fixed effects and other variables, we find that grocery spending increa...
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| Veröffentlicht in: | Journal of economic behavior & organization 2009-08, Vol.71 (2), p.384-394 |
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| container_end_page | 394 |
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| container_title | Journal of economic behavior & organization |
| container_volume | 71 |
| creator | Milkman, Katherine L. Beshears, John |
| description | We study the effect of small windfalls on consumer spending decisions by comparing the purchases online grocery customers make when redeeming $10-off coupons with the purchases they make without coupons. Controlling for customer fixed effects and other variables, we find that grocery spending increases by $1.59 when a $10-off coupon is redeemed. The extra spending associated with coupon redemption is focused on groceries that a customer does not typically buy. These results are consistent with the theory of mental accounting but are not consistent with the standard permanent income or lifecycle theory of consumption. While the hypotheses we test are motivated by mental accounting, we also discuss some alternative psychological explanations for our findings. |
| doi_str_mv | 10.1016/j.jebo.2009.04.007 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0167-2681 |
| ispartof | Journal of economic behavior & organization, 2009-08, Vol.71 (2), p.384-394 |
| issn | 0167-2681 1879-1751 |
| language | eng |
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| source | RePEc; Applied Social Sciences Index & Abstracts (ASSIA); ScienceDirect Journals (5 years ago - present) |
| subjects | Accounting Comparative analysis Consumer behaviour Consumer expenditure Consumer spending Consumption Coupons Customers Economic impact Economic psychology Economic theory Electronic commerce Expenditure Grocery stores Internet Marginal propensity to consume Measurement Mental accounting Mental accounting Windfalls Marginal propensity to consume Coupons Shopping Studies Windfalls |
| title | Mental accounting and small windfalls: Evidence from an online grocer |
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