Exploring the impact of payment method perceived value on transaction experience and willingness to pay: evidence from Innsbruck Christmas Market

Purpose This study investigates how the perceived value of payment methods affects the transaction experience at the Christmas market and how this experience influences consumer willingness to pay. Additionally, this study examines the mediating role of transaction experience. Design/methodology/approach The sample was taken from tourists who visited the Innsbruck Christmas market in 2023. A total of 347 valid questionnaires were collected through a combination of paper questionnaires randomly distributed offline to Christmas market patrons (random sample) and questionnaires posted online (self-selected sample). Structural equation modeling (SEM) was used to analyze the data in this study. Findings The results demonstrate that consumers’ transaction experience at the Christmas market is significantly influenced by their perceptions of cash inefficiency, health risks associated with cash, convenience of cashless payments and security and privacy of cashless payments. Furthermore, the transaction experience has a significant impact on consumer willingness to pay. Additionally, the perceived value of payment methods and willingness to pay are mediated by the transaction experience. Originality/value This study examines the influence of the perceived value of payment methods on behavioral intentions in Christmas market research. It also demonstrates the mediating role of transactional experience on perceived value and willingness to pay, filling the gap in research on payment methods in Christmas markets. Additionally, the findings offer managerial contributions to destination organizations and retailers/vendors, suggesting that they should prioritize convenient payment methods to enhance revenues.