The effect of credit card versus mobile payment on convenience and consumers’ willingness to pay |
| |
Institution: | 1. Tsinghua University, China;2. Nankai University, China;3. Chinese University of Hong Kong, Hong Kong, China;1. Craig School of Business, California State University, Fresno, CA, USA;2. David Eccles School of Business, The University of Utah, Salt Lake City, UT, USA;3. Haslam College of Business, The University of Tennessee, Knoxville, TN, USA |
| |
Abstract: | Extant literature on payment methods has focused on comparing cash and credit cards and emphasized the lower pain of paying (i.e., fewer negative consequences) for the latter. This finding, in turn, explains why consumers express higher willingness to pay (WTP) when paying with credit cards. The current study introduces mobile technology as a new payment method to this literature. Specifically, it highlights convenience as a positive driver of increased WTP for mobile payment. However, for consumers to perceive mobile payment as convenient, a personal adoption (enabled through an existing system in the respective country market) is necessary. A set of three studies across several country markets tests these assumptions empirically. Convenience emerges as a new mediator between mobile payment and increased WTP, contingent on personal adoption. These findings thus extend extant literature on the mechanisms consumers use with different payment methods, and they offer differentiated recommendations regarding payment channels for country managers. |
| |
Keywords: | Willingness to pay Convenience Mobile payment Pain of paying Adoption |
本文献已被 ScienceDirect 等数据库收录! |
|