IDEAS home Printed from https://ideas.repec.org/a/eee/joepsy/v91y2022ics0167487022000393.html
   My bibliography  Save this article

Pay online or pay on delivery? An ERP study of how payment methods affect online purchase decisions for search vs. experience products

Author

Listed:
  • Yu, Haihong
  • Liang, Yongchong
  • Wang, Ailian
  • Fan, Qi
  • Jin, Jia

Abstract

The payment method is a key factor influencing online consumers’ purchase decisions. However, little is known about its underlying neural basis, which could help to reveal the mechanism by which payment methods affect online purchase decisions. Combined with the event-related potentials (ERPs), a neuroscience technique with the advantage of measuring implicit psychological variables to reveal the mechanism behind behaviors, this study uncovers consumers’ discrepant perception between pay-online and pay-on-delivery in different purchase contexts through an online purchase task. Behavioral results showed that purchase intention is higher for pay-online than pay-on-delivery, regardless of product type. At the brain level, we found consumers induce higher perceived risk (indicated in larger N2 amplitudes) and smaller negative emotion (mirrored by larger P3 amplitudes) for pay-online than pay-on-delivery, especially when shopping for search products. However, this effect disappeared when purchasing experience products. Moreover, the larger perceived risk for experience products than search products may lead consumers to ignore the difference between the two payment methods. This study helps online sellers optimize payment services for specific products.

Suggested Citation

  • Yu, Haihong & Liang, Yongchong & Wang, Ailian & Fan, Qi & Jin, Jia, 2022. "Pay online or pay on delivery? An ERP study of how payment methods affect online purchase decisions for search vs. experience products," Journal of Economic Psychology, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:joepsy:v:91:y:2022:i:c:s0167487022000393
    DOI: 10.1016/j.joep.2022.102526
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167487022000393
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.joep.2022.102526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Girard, Tulay & Dion, Paul, 2010. "Validating the search, experience, and credence product classification framework," Journal of Business Research, Elsevier, vol. 63(9-10), pages 1079-1087, September.
    2. Qiuzhen Wang & Liang Meng & Manlu Liu & Qi Wang & Qingguo Ma, 2016. "How do social-based cues influence consumers’ online purchase decisions? An event-related potential study," Electronic Commerce Research, Springer, vol. 16(1), pages 1-26, March.
    3. Qian Shang & Guanxiong Pei & Jia Jin & Wuke Zhang & Yuran Wang & Xiaoyi Wang, 2018. "ERP evidence for consumer evaluation of copycat brands," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-13, February.
    4. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    5. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fan, Liu & Wang, Yawei & Mou, Jian, 2024. "Enjoy to read and enjoy to shop: An investigation on the impact of product information presentation on purchase intention in digital content marketing," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tibert Verhagen & Daniel Bloemers, 2018. "Exploring the cognitive and affective bases of online purchase intentions: a hierarchical test across product types," Electronic Commerce Research, Springer, vol. 18(3), pages 537-561, September.
    2. Dokyun Lee & Kartik Hosanagar, 2021. "How Do Product Attributes and Reviews Moderate the Impact of Recommender Systems Through Purchase Stages?," Management Science, INFORMS, vol. 67(1), pages 524-546, January.
    3. Bartikowski, Boris & Laroche, Michel & Richard, Marie-Odile, 2019. "A content analysis of fear appeal advertising in Canada, China, and France," Journal of Business Research, Elsevier, vol. 103(C), pages 232-239.
    4. Xiao, Lin & Li, Xiaofeng & Zhang, Yucheng, 2023. "Exploring the factors influencing consumer engagement behavior regarding short-form video advertising: A big data perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    5. Liu, Huan & Lobschat, Lara & Verhoef, Peter C. & Zhao, Hong, 2019. "App Adoption: The Effect on Purchasing of Customers Who Have Used a Mobile Website Previously," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 16-34.
    6. Erik Ernesto Vazquez, 2021. "Effect of an e-retailer’s product category and social media platform selection on perceived quality of e-retail products," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(1), pages 139-157, March.
    7. Zhang, Yundi & Zhang, Tingting & Yan, Xiangbin, 2024. "Understanding impulse buying in short video live E-commerce: The perspective of consumer vulnerability and product type," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    8. Kyle Bagwell & Garey Ramey, 1988. "Advertising and Limit Pricing," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 59-71, Spring.
    9. Thunström, Linda & Nordström, Jonas & Shogren, Jason F., 2015. "Certainty and overconfidence in future preferences for food," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 101-113.
    10. J. K. Pappalardo, 2022. "Economics of Consumer Protection: Contributions and Challenges in Estimating Consumer Injury and Evaluating Consumer Protection Policy," Journal of Consumer Policy, Springer, vol. 45(2), pages 201-238, June.
    11. repec:ebl:ecbull:v:10:y:2004:i:8:p:1-8 is not listed on IDEAS
    12. Dhaval M. Dave, 2013. "Effects of Pharmaceutical Promotion: A Review and Assessment," NBER Working Papers 18830, National Bureau of Economic Research, Inc.
    13. Thomas de Haan & Theo Offerman & Randolph Sloof, 2015. "Money Talks? An Experimental Investigation Of Cheap Talk And Burned Money," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(4), pages 1385-1426, November.
    14. Aslan, Hadiye & Kumar, Praveen, 2016. "The product market effects of hedge fund activism," Journal of Financial Economics, Elsevier, vol. 119(1), pages 226-248.
    15. Pracejus, John W. & O'Guinn, Thomas C. & Olsen, G. Douglas, 2013. "When white space is more than “burning money”: Economic signaling meets visual commercial rhetoric," International Journal of Research in Marketing, Elsevier, vol. 30(3), pages 211-218.
    16. Marco Costanigro & Yuko Onozaka, 2020. "A Belief‐Preference Model of Choice for Experience and Credence Goods," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(1), pages 70-95, February.
    17. Jeen-Su Lim & Abdulrahman Al-Aali & John Heinrichs, 2015. "Impact of satisfaction with e-retailers’ touch points on purchase behavior: the moderating effect of search and experience product type," Marketing Letters, Springer, vol. 26(2), pages 225-235, June.
    18. C F Elliott & R Simmons, 2007. "Determinants of UK box office success: the impact of quality signals," Working Papers 584026, Lancaster University Management School, Economics Department.
    19. Charity, Nabwire Ephamia Juma, 2016. "Economic Analysis Of Consumers’ Awareness And Willingness To Pay For Geographical Indicators And Other Quality Attributes Of Honey In Kenya," Research Theses 265574, Collaborative Masters Program in Agricultural and Applied Economics.
    20. Michaela Haase, 2015. "The cooperation of marketing theory and the ethic of responsibility: an analysis with focus on two views on value creation," Chapters, in: Handbook on Ethics and Marketing, chapter 7, pages 125-149, Edward Elgar Publishing.
    21. Schatzel, Kim & Droge, Cornelia & Calantone, Roger, 2003. "Strategic channel activity preannouncements: An exploratory investigation of antecedent effects," Journal of Business Research, Elsevier, vol. 56(12), pages 923-933, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:91:y:2022:i:c:s0167487022000393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/joep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.