Payment Formats’ Influence on Perceived Pain of Payment

Emotions that consumers experience during their purchase process significantly affect decisions they make in the marketplace. One of the psychological affects consumers may have when paying or contemplating making a payment for goods is pain of payment. It has different moderators, one of them is payment format which can both decrease and increase pain of payment. The goal of this study is to assess what impact does the choice of payment format has on the Russian consumer perception of pain of paying to help researchers and organizations reveal important consumer patterns which can influence their spending behavior. The data will be based on the desk study with open-source information analysis and quantitative research conducted through online survey. The sample consists of 387 respondents above 18, who live in Moscow and Moscow region and who have recently (in a month period) made a purchase in any clothing shop. As a result of the study, it was revealed that payment formats used while purchasing in clothing shops affect the level of perceived pain of paying. In addition, sum of money spent on the purchase and sum of money that consumer has at the end of the month after making all necessary purchases influence pain of payment. At the end of the research paper there are recommendations provided for companies about installing different payment methods into their businesses.