Payment forms linked to consumer preferences for promotional offers: mediating and moderating factors

Purpose This research examines the relationship between payment forms (cash vs credit card) and consumer promotional offer preferences (price discounts vs bonus packs). It also tests the indirect effects of different valuations (based on calculating or feeling) on this relationship and the moderating effects of self-constructs and individual differences in sensitivity to paying. Design/methodology/approach Three studies were conducted to test the proposed hypotheses. Study 1 examines preferences for price discounts vs bonus packs under cash and credit payment conditions (i.e. the relationship between payment form and promotional offer preference). Based on Study 1, Study 2 examines the mediating effects of valuation (by calculation or feeling) on that relationship. Study 3 tests the moderating effect of self-constructs and individual differences on the relationship. Findings Cash users prefer price discounts when primed with a calculating valuation, while credit card users prefer bonus packs when primed with a feeling valuation. In addition, we find that the relationship between payment forms and promotional offer preference is moderated by self-construct (independent vs interdependent) and individual differences in sensitivity to paying (tightwads vs spendthrifts). Research limitations/implications Different payment methods affect consumers’ valuation processes. Marketing professionals must understand the relationship between payment forms and particular offer preferences to formulate the right strategy. In addition, it is necessary for future studies on the social impact resulting from the population of fintech use, particularly the potential to trap the young and those economically disadvantaged at risk of indebtedness due to the low adoption barrier of technology-based cashless payment forms. Originality/value Rapid innovations in payment forms have increased consumers’ choices, influencing their future behaviour. However, few studies have examined how consumer valuation processes vary concerning different payment forms. This study highlights the importance of promoting awareness of consumer information processing and offers theoretical and practical implications regarding the use of payment forms.