The Impact of Mobile Payment on Hedonic Preference

Abstract

With the progress of high technologies in payment systems, the usage rate of mobile payment is rapidly growing worldwide. However, whether mobile payment influences consumers’ choices between hedonic and utilitarian products, an important question in the field of consumer well-being research, has not been fully investigated. To address this research gap, the authors examine the influence of mobile payment and traditional payment methods (e.g., cash payment, card payment) on consumers’ preferences for hedonic products. They find that mobile payment triggers consumers’ hedonic mindset, which increases consumers’ preferences for hedonic products. The effect is moderated by mobile device type such that the effect is weaker for smart wearable (vs. mobile phone) payment because smart wearable devices are less associated with a hedonic mindset. This study offers novel insight into the effect of high technologies in payment systems, specifically mobile payment, on consumer well-being and calls for more investigation of the effects of mobile payment.