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Refund Psychology.

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Title: Refund Psychology.
Authors: Yu, Tianjiao (AUTHOR) tianjiao.yu@wustl.edu, Cryder, Cynthia (AUTHOR), LeBoeuf, Robyn A (AUTHOR)
Source: Journal of Consumer Research. Aug2024, Vol. 51 Issue 2, p238-255. 18p.
Subject Terms: *Product returns, *Shopping, *Consumer attitudes, *Consumer behavior, *Consumer behavior research, *Mental accounting (Economic theory), *Willingness to pay, *Personal finance
Abstract: Consumers frequently receive refunds from prior purchases. In this research, we examine if money refunded from previous purchases is more likely to be spent than money that does not go through a refund process. Across nine pre-registered studies, we test how consumers' willingness to spend depends on the transaction history of their money. We find that, when people receive a refund and do not need to replace the originally purchased item, they are more likely to spend the refunded money on a discretionary purchase than they are to spend non-refunded money that is otherwise identical. We suggest that this pattern arises because refunded money is earmarked as "spending money" at the time of the initial purchase and then retains that earmark even after the refund is issued. When refunds arrive, therefore, they seem free from obligations and easy to spend. This research documents the psychology of purchase refunds, a topic largely unaddressed in the mental accounting literature to date. [ABSTRACT FROM AUTHOR]
Database: Energy & Power Source
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DbLabel: Energy & Power Source
An: 178718800
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PubType: Academic Journal
PubTypeId: academicJournal
PreciseRelevancyScore: 0
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  Data: Refund Psychology.
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  Data: <searchLink fieldCode="AR" term="%22Yu%2C+Tianjiao%22">Yu, Tianjiao</searchLink> (AUTHOR)<i> tianjiao.yu@wustl.edu</i><br /><searchLink fieldCode="AR" term="%22Cryder%2C+Cynthia%22">Cryder, Cynthia</searchLink> (AUTHOR)<br /><searchLink fieldCode="AR" term="%22LeBoeuf%2C+Robyn+A%22">LeBoeuf, Robyn A</searchLink> (AUTHOR)
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Consumer+Research%22">Journal of Consumer Research</searchLink>. Aug2024, Vol. 51 Issue 2, p238-255. 18p.
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  Data: *<searchLink fieldCode="DE" term="%22Product+returns%22">Product returns</searchLink><br />*<searchLink fieldCode="DE" term="%22Shopping%22">Shopping</searchLink><br />*<searchLink fieldCode="DE" term="%22Consumer+attitudes%22">Consumer attitudes</searchLink><br />*<searchLink fieldCode="DE" term="%22Consumer+behavior%22">Consumer behavior</searchLink><br />*<searchLink fieldCode="DE" term="%22Consumer+behavior+research%22">Consumer behavior research</searchLink><br />*<searchLink fieldCode="DE" term="%22Mental+accounting+%28Economic+theory%29%22">Mental accounting (Economic theory)</searchLink><br />*<searchLink fieldCode="DE" term="%22Willingness+to+pay%22">Willingness to pay</searchLink><br />*<searchLink fieldCode="DE" term="%22Personal+finance%22">Personal finance</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: Consumers frequently receive refunds from prior purchases. In this research, we examine if money refunded from previous purchases is more likely to be spent than money that does not go through a refund process. Across nine pre-registered studies, we test how consumers' willingness to spend depends on the transaction history of their money. We find that, when people receive a refund and do not need to replace the originally purchased item, they are more likely to spend the refunded money on a discretionary purchase than they are to spend non-refunded money that is otherwise identical. We suggest that this pattern arises because refunded money is earmarked as "spending money" at the time of the initial purchase and then retains that earmark even after the refund is issued. When refunds arrive, therefore, they seem free from obligations and easy to spend. This research documents the psychology of purchase refunds, a topic largely unaddressed in the mental accounting literature to date. [ABSTRACT FROM AUTHOR]
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RecordInfo BibRecord:
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      – Type: doi
        Value: 10.1093/jcr/ucad067
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      – Code: eng
        Text: English
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        PageCount: 18
        StartPage: 238
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      – SubjectFull: Product returns
        Type: general
      – SubjectFull: Shopping
        Type: general
      – SubjectFull: Consumer attitudes
        Type: general
      – SubjectFull: Consumer behavior
        Type: general
      – SubjectFull: Consumer behavior research
        Type: general
      – SubjectFull: Mental accounting (Economic theory)
        Type: general
      – SubjectFull: Willingness to pay
        Type: general
      – SubjectFull: Personal finance
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      – TitleFull: Refund Psychology.
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            NameFull: Yu, Tianjiao
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            – D: 01
              M: 08
              Text: Aug2024
              Type: published
              Y: 2024
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