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Why Do Cashless Payments Increase Unhealthy Consumption? The Decision-Risk Inattention Hypothesis

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  • Joowon Park
  • Clarence Lee
  • Manoj Thomas

Abstract

Why do shoppers spend more money on unhealthy food when they make cashless payments? We propose that negative arousal elicited by monetary payment plays a role in such consumption. Cash payments increase this negative arousal, which increases attention to decision risks. In contrast, cashless payments reduce this negative arousal, and thus reduce attention to decision risks. By reducing attention to decision risks, cashless payments can increase risky consumption behaviors. Two experiments test this decision-risk inattention hypothesis in the context of vice food (i.e., hedonic food with health risks). Study 1 demonstrates that cashless payments reduce negative arousal measured through skin conductance, and increase purchase intentions of vice food. Study 2 shows that the effect of cashless payments is stronger for shoppers who are more sensitive to health risks.

Suggested Citation

  • Joowon Park & Clarence Lee & Manoj Thomas, 2021. "Why Do Cashless Payments Increase Unhealthy Consumption? The Decision-Risk Inattention Hypothesis," Journal of the Association for Consumer Research, University of Chicago Press, vol. 6(1), pages 21-32.
    • Handle: RePEc:ucp:jacres:doi:10.1086/710251
    DOI: 10.1086/710251
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    Cited by:

    1. Yizhao Jiang, 2022. "The Influence of Payment Method: Do Consumers Pay More with Mobile Payment?," Papers 2210.14631, arXiv.org.
    2. Ma, Qingguo & He, Yijin & Tan, Yulin & Cheng, Lu & Wang, Manlin, 2024. "Unveiling the Impact of Payment Methods on Consumer Behavior: Insights and Future Directions," OSF Preprints 3fphk, Center for Open Science.
    3. Nwamaka A. Anaza & Delancy H. S. Bennett & Yana Andonova & Emeka Anaza, 2022. "DPS 2.0: on the road to a cashless society," Marketing Letters, Springer, vol. 33(4), pages 693-704, December.
    4. Verstraeten, Julie & Heeremans, Eva & Geuens, Maggie & Vermeir, Iris, 2023. "How online grocery shopping drives private label food purchases," Journal of Business Research, Elsevier, vol. 167(C).

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