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Personal loan users’ mental integration of payment and consumption

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  • Bernadette Kamleitner
  • Erich Kirchler

Abstract

Buying a good on a loan entails numerous consumption and payment episodes. Loan users can either mentally integrate or separate these episodes. In order to identify the actual mental structures, we conducted 29 semi-structured interviews with current and prospective loan users. A content analysis revealed that a majority of loan users established a hedonically efficient one-way connection from the loan to the good; i.e., the good was perceived as unrelated to the loan, whereas, concurrently, payments were buffered by thoughts of the good. Furthermore, the analysis revealed that mental structures are less stable than sometimes assumed. Copyright Springer Science + Business Media, LLC 2006

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  • Bernadette Kamleitner & Erich Kirchler, 2006. "Personal loan users’ mental integration of payment and consumption," Marketing Letters, Springer, vol. 17(4), pages 281-294, December.
    • Handle: RePEc:kap:mktlet:v:17:y:2006:i:4:p:281-294
    DOI: 10.1007/s11002-006-8521-9
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    Cited by:

    1. Almenberg, Johan & Karapetyan, Artashes, 2009. "Mental Accounting in the Housing Market," SSE/EFI Working Paper Series in Economics and Finance 718, Stockholm School of Economics, revised 28 Aug 2010.
    2. Kamleitner, Bernadette & Hoelzl, Erik & Kirchler, Erich, 2010. "Experiencing costs and benefits of a loan transaction: The role of cost-benefit associations," Journal of Economic Psychology, Elsevier, vol. 31(6), pages 1047-1056, December.
    3. Linda Dezső & Barna Bakó & Gábor Neszveda, 2022. "Exploiting context-dependent preferences to protect borrowers," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(4), pages 291-305, December.
    4. Bernadette Kamleitner & Bianca Hornung & Erich Kirchler, 2010. "Over-indebtedness and the interplay of factual and mental money management: An interview study," Working Papers 34, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    5. Hoelzl, Erik & Pollai, Maria & Kamleitner, Bernadette, 2009. "Experience, prediction and recollection of loan burden," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 446-454, June.
    6. Kirchler, Erich & Hoelzl, Erik & Kamleitner, Bernadette, 2008. "Spending and credit use in the private household," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 519-532, April.

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