behavioural finance

Pain of Payment for … the First Date

This concludes the interview with Professor Avni Shah regarding consumer behaviour and the connection we feel to the stuff we buy. And, possibly, to the people we buy it for. Click here to read the first half of the interview. Q: Did you look at other aspects of the connection? I said, let’s see how long this effect persists. I got data for the years 2004 to 2013 from an alumni association. What I was interested in is how alums make donations: by cheque versus card. Cheque feels more painful because you have to write out that amount. I wondered […]

Pain of Payment for … Coffee

“Me? Why do I have to pay for the falafels? I barely have two dollars to rub together,” said Morty. Tuesday is the two-for-one special at our local take-out Mediterranean shop. “Take it from me—you’ll enjoy them more!” I said, tapping the article I had just been reading in the New York Times. In a nutshell, it reported on new research in the Journal of Consumer Research that said having some difficulty in payment increased the consumer’s connection with the item purchased. He grabbed the section to read while we wolfed down our falafels.  “You’ve gotta interview these people,” he […]