More of the Same: Painful Payment Methods Decrease Variety Seeking

Consumers can choose to purchase more or less varied product assortments. The present research demonstrates that the payment method used for purchase affects the variety of options selected. Using a mix of secondary data analysis and lab experiments, we show that payment methods that elicit a higher pain of payment, such as cash, decrease variety seeking. We also elucidate the process underlying this choice outcome: as the pain of payment increases, consumers experience a higher need to justify choice, increasing the share of options that are easier to justify (e.g., one’s favorites). Our findings offer a useful tool for managers to influence the composition of multi-item purchases and for policymakers to affect well-being via variety seeking.