Washington, Sept 8 : Shopoholics are likely to spend more while using a credit or gift card than cash buys, says a new study by Indian origin researchers.
After conducting four studies, researchers Dr. Priya Raghubir of the Stern School of Business at New York University and Dr. Joydeep Srivastava of the Robert H. Smith School of Business at the University of Maryland, College Park, have come to the conclusion that cash discourages spending, and credit or gift cards encourage it.
During the study, the researchers focussed on two factors in purchasing behaviour: when consumers part with their money (cash versus credit) and the form of payment
(cash, cash-like scrip, gift certificate or credit card).