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The existing research does not systematically explore customers' option about different payment methods, nor does it analyze how shopping channels and shopping scale affect customers' option about different payment methods. Furthermore, there is a lack of exploration on what the relationship is, and how they are adjusted by customer purchasing experience. The authors’ research questions are: (1) when using different shopping channels in online retailing, whether customers will choose different types of payment methods? (2) Does the purchase amounts affect customers' choice of different payment methods?

This study takes 60,484 customers from JD.com, one of the largest B2C platforms in China, as the research object and collects the purchase data of these customers from October 01, 2012 to December 31, 2013, and analyzes them through panel data models.

Based on their purchase data, the authors find the main results by using panel data model that (1) the use of mobile channel has a positive effect on cash on delivery (COD), implying that when consumers use mobile to purchase, they have a higher possibility to use COD, (2) the order size has a positive effects on COD, that is to say, when the purchase amount increases, the possibility of using COD also increases. (3) Furthermore, when consumers' purchase experience abound, mobile channel's positive effect on COD will be decreased, but it does not affect the positive effect between order size and COD.

From the aspects of shopping channels, product attributes and customer purchase experience, it fills the gaps in the research on the preselection of payment methods and makes research of payment methods a complete research system. Secondly, this study adds COD to the options of payment method selection. Finally, the moderating effect of customer shopping experience from a dynamic perspective elaborates that customers can learn from multiple purchases and overcome the shopping risks brought by shopping channels, thereby reducing the probability of choosing a COD method.

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.

Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.

TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.

The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.

Drawing on self-determination theory, this paper compares the effects of QR code payment method (autonomous vs dependent payment) on payment pleasure, its mechanism and the boundary condition in the mobile payment setting.

Four studies were conducted to examine the effect of QR code payment method on payment pleasure. In study 1, 108 undergraduate students were asked to recall a recent experience when they made either autonomous payment or dependent payment. Study 2 assigned 74 undergraduate students to either the autonomous or dependent payment. Study 3 replicated study 2, but recruited 75 customers in the field. For study 4, a total of 134 undergraduate students participated in a 2 (payment method: autonomous payment vs dependent payment) × 2 (product involvement: high vs low) between-subjects design.

The results of these four studies demonstrate that (1) customers derive more payment pleasure from autonomous payment, compared with dependent payments (study 1); (2) the sense of control mediates the effect of the payment method on payment pleasure (study 2 and study 3); and (3) product involvement moderates the mediating effect of the sense of control (study 4).

These findings contribute to the literature on mobile payment and payment experience. These findings also provide insight to merchants when they select an appropriate payment method and manage the customer payment experience.

Unlike point of purchase behavior, not much is known about how payment method impacts post-purchase behavior, especially for durable goods where user experience can last over long periods. The purpose of this paper is to link two strands of literature for the first time by uncovering systematic linkages between the payment method (upfront cash vs loan) used for purchase of durable goods and the replacement timings for the same.

The authors predict that cash purchases are more likely to have shorter replacement horizons compared to loan purchases and propose a psychological mechanism that accounts for the same. Their arguments are based on how the strength of coupling, which is the degree of psychological association between payment and consumption, depends on the payment method and differentially influences the consumption experience and consequently leads to different replacement horizons. They conduct a field study to test their predictions and find support for their model.

The authors find that individuals who financed their durable goods purchases using loan, expressed their intentions to replace the goods after longer period than those who financed their durable goods with cash down payment. As loan installments remind people of painful thoughts of payment, they tend to reduce the dissonance by positively evaluating both retrospective and anticipated usage experiences. This dissonance reduction mechanism eventually leads to reduced willingness to let go of the durable.

Marketers are faced with a tradeoff between increasing purchase likelihood versus ensuring long-term post-purchase satisfaction. In this paper, the authors uncover the psychological mechanisms that can explain how payment method chosen to pay for a durable can have direct effect on post-purchase consumption experiences and subsequently in the replacement intentions. This finding is crucial for marketers who are interested in planning the product line launches and other post-purchase engagement strategies such as buy-back scheme and upgrades.

Understanding the psychological mechanisms that explain individual’s likelihood to replace their durable goods allows policymakers to design appropriate interventions to induce more sustainable and efficient use of durable goods in the market. While on one hand, marketers might be interested in increasing sales of their product line by inducing faster replacement of older product versions, environmentalists nudge towards the opposite. This paper provides a possible way to achieve the dual objectives.

While past research on downstream effects of payment methods on behavioral outcomes focused only on consumables, the authors focus on durable goods. Further, they identify the effect of payment method on both psychological and behavioral outcomes.

The purpose of this paper is to examine various methods of payment and foreign‐exchange risk management among firms involved in either export or import trade only, or both in Brunei Darussalam. The paper also seeks to delineate the relationship(s) between various characteristics of firms such as number of years in business, size, and frequency of imports, and various methods of payment and foreign‐exchange risk management by the firms.

Judgment and snowball sampling methods are employed to collect data from the companies. The results are analyzed from a total sample of 42 responding firms. Descriptive statistics is used to present and analyze the data.

The paper highlights the various important methods currently used for both payment, and foreign‐exchange risk management in foreign trade by firms. It also mentions the methods that are used to lesser extent by importers and exporters in the country. Furthermore, various relationship(s) between either number of years in business, or size, or frequency of imports with various methods of payment, and foreign‐exchange risk management among firms are also highlighted in the paper.

The results are basically from the various trading companies involved in foreign trade in Brunei Darussalam.

This paper contributes to the existing literature of international business and finance. It fills the gap in the existing literature about current practices prevalent in the country. Furthermore, recommendations are made to enhance the methods of payment and foreign‐exchange risk management practices among firms. The findings may also be useful for financial institutions interested in providing hedging products and services to the firms.

There is a growing concern that contractors can be motivated for environmental protection through effective fund allocation and proper payment mechanisms. However, an in-depth analysis of environmental hazard-controlling methods and related payments to the contractor in road construction in Sri Lanka is not much popular among the extant literature. Thus, the purpose of this paper is to explore different payment mechanisms that are being used with environmental hazard-controlling methods, to achieve better control in such hazards in Sri Lankan road construction projects.

This research was approached through a mixed research method. Initially, hazard-controlling methods and relative payment mechanisms for the contractor were identified through three exploratory case studies using interviews, observations and document survey. Next, the relative effectiveness of payment mechanisms for contractors for better environmental hazard controlling was identified through a questionnaire survey with a sample of 45 professionals involved in 15 road construction projects.

Based on the findings, a comprehensive list of environmental hazard-controlling methods was derived. Furthermore, four types of payment mechanisms were identified: (A)-payments, where a unit price was assigned; (B)-payments, where a provisional sum was established in the contract; (C)-payments, where fixed amounts (lump sums) were assigned in the contract and (D)-payments made along with some main work item in the contract. Relative effectiveness of these four mechanisms for better control of environmental hazards was varied for each hazard-controlling method being practiced in a road construction project.

These findings would be more beneficial for consultants, project managers, bidders and estimators in the pre-contract stage. This is by identifying cost items for environmental hazard controlling and selecting relatively more effective payment mechanisms to motivate contractors for better control of environmental hazards during project execution.

Three types of payment methods have been introduced across European countries in attempts to encourage better, more integrated care of persons with multimorbidity: pay-for-performance; pay-for-coordination; and an all-inclusive payment method. We examine whether there are differences in the way these payment methods affect health and healthcare use in persons with multimorbidity.

Using individual-level survey data from twenty European countries, we examine unadjusted differences in average outcomes for the years 2011–2015 by whether countries adopted new payment methods for integrated care. We then test for a differential effect for multimorbid persons using linear, individual random effects regressions, including country and time fixed effects and clustering standard errors at the country level.

We find little effect of varying payment methods on key outcomes for multimorbid individuals despite the theoretical predictions and the rhetoric in many policy documents.

Policymakers should bear in mind that the success of the payment method relies on the specific design of the incentives and their implementation. New effective models of care and how to incentivise these for multimorbid patients is an ongoing research priority.

This paper is the first to study the effects of payments for integration on the dimensions and populations these schemes intend to affect; health and healthcare use at the individual level for multimorbid individuals.

While retail payment instruments generate more revenue than many fast moving consumer goods (FMCG) categories, surprisingly little is publicly known about market structure and purchase loyalty. This paper reports a study of shoppers’ use of payment methods in three New Zealand retail categories (n = 310). The study identified shoppers’ “main” and “other” payment methods, and examined relative penetration, patterns of purchase loyalty, and repertoire size. The results showed that well‐known patterns of FMCG purchase loyalty also applied to retail payment methods. These patterns were stable across categories, implying retail payment methods are a mass market rather than a segmented market. The results also showed that, despite New Zealand being one of the most advanced cashless societies in the world, the market for electronic funds transfer at point of sale (EFTPoS) is far from saturated. This knowledge should prove useful for practitioners seeking to understand patterns of competition in retail payment methods, and for academics hoping to apply models of consumer behaviour to financial services.

In a world of asymmetric information between managers and investors, the choice of the payment method is a key issue in mergers and acquisitions. Previous literature shows that contingent methods of payment other than stocks (e.g. contingent value rights, earnouts or convertible securities), even if they do not solve the information asymmetry problems, can mitigate their consequences. In this chapter, I examine the motivations and the effects of the inclusion of a contingent payment method the use of which has not been studied yet, the warrant. I show that this consideration is used mainly when information asymmetry problems are severe and that it can be used to solve the information problems.

Alternative payment means have been expanding rapidly in recent years. The need to identify the segments of customers that are targetable for both financial and nonfinancial institutions is growing. The purpose of this paper is to use two different methods, discriminant analysis and decision trees, in order to compare the effectiveness of the two methods for segmentation and identify critical consumer characteristics which determine behavior and preference in relation to the use of payment means.

Using data from 321 bank customers, decision tree and discriminant analysis methods are used, first to test the same set of variables differentiating the customers and then to compare the respective results and prediction ability of the two methods.

Results show that discriminant analysis has a better model fit and segments the customers in a more effective way than the decision tree method. In addition, each method shows different variables to differentiate the customer groups.

The findings are limited to the sector and country of the study, as well as the convenience sample that has been used.

Suggestions for financial managers to better understand their customers’ behavior and target the right group are discussed.

This is the first attempt to compare decision trees and discriminant analysis as alternative segmentation methods for payment means.