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THE INFLUENCE OF PAYMENT METHOD AND CHOICE MINDSET ON RISK TAKING BEHAVIORS
Onuklu, Nese Nur
Onuklu, Nese Nur
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Thesis/Dissertation
Date
2021
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Business Administration/Marketing
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http://dx.doi.org/10.34944/dspace/6866
Abstract
The role of risk in consumer decision-making has been a popular research subject in the last decades. As such, the determinants of risk-taking have been examined in several domains. Past research suggests that risky decisions are frequently influenced by various situational factors. Across two essays, two such factors that impact consumer risk-taking behaviors, namely payment methods and choice mindset are explored. In the first essay, the impact of payment methods on consumers’ risk-taking in purchase decisions is analyzed. This paper tests processing differences initiated by the payment methods and suggests that consumers are more likely to neglect the risk associated with the purchase when paying with a credit card than cash. In the second essay, the influence of a mere belief that one has a choice, in the absence of making an active choice is explored in the context of risky decisions. The findings suggest that merely reminding people that they have a choice leads to a tendency to seize opportunities impacting risk preferences.
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