Money Isn’t Everything, but It Helps If It Doesn’t Look Used: How the Physical Appearance of Money Influences Spending

Despite evidence that currency denomination can influence spending, researchers have yet to examine whether the physical appearance of money can do the same. This is important because smaller denomination bills tend to suffer greater wear than larger denomination bills. Using real money in the conte...

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Bibliographic Details
Published in:The Journal of consumer research 2013-04, Vol.39 (6), p.1330-1342
Main Authors: Di Muro, Fabrizio, Noseworthy, Theodore J.
Format: Article
Language:English
Subjects:
Anagrams
Buying behavior
Consumer behavior
Consumer spending
Currency
Disgust
Money
Paper money
Personal appearance
Physical appearance
Pride
Spending
Studies
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Summary:Despite evidence that currency denomination can influence spending, researchers have yet to examine whether the physical appearance of money can do the same. This is important because smaller denomination bills tend to suffer greater wear than larger denomination bills. Using real money in the context of real purchases, this article demonstrates that the physical appearance of money can override the influence of denomination. The reason being, people want to rid themselves of worn bills because they are disgusted by the contamination from others, whereas people put a premium on crisp currency because they take pride in owning bills that can be spent around others. This suggests that the physical appearance of money matters more than traditionally thought, and like most things in life, it too is inextricably linked to the social context. The results suggest that money may be less fungible than people think.
ISSN:0093-5301
1537-5277
DOI:10.1086/668406