By Wendy J. De La Rosa, Assistant Professor of Marketing

1:00 pm – 2:15 pm

A growing trend is for consumers to get paid more often, resulting in more frequent, yet smaller paychecks. However, surprisingly little is known about whether and how payment frequency impacts consumer behavior. The current work addresses this gap. An analysis of income and expenditure data of consumers from a financial services provider demonstrates a naturally occurring relationship between higher payment frequencies and increased spending….The effect of payment frequency on subjective wealth perceptions is attenuated in contexts in which consumers have less uncertainty in predicting their resource sufficiency throughout a period. This work suggests that consumers’ perceptions and their resulting behaviors are based not just on how much resources they receive, but also on when they receive their resources.

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