Quantity Distortion Effect in Consumers’ Perception of Different Volumes and Weights of Money

Abstract

Consumers tend to misunderstand the physical value of cash money by adopting improper anchors for their judgments (e.g., banknote size and shape, currency denominations, etc.). In a pilot study carried out on a sample of 242 participants ( n = 116 men; M age = 29.6 year, SD = 10.8), a quantity distortion effect was demonstrated by evaluating consumers’ misperceptions of different monetary quantities, either in terms of volume or weight, using banknotes of the same denomination (€50). A threshold value was found, for both volume (€876,324) and weight (€371,779), above (below) which consumers tend to overrate (underrate) monetary amounts. The theoretical and operative implications are discussed.