Significance levels: +p < .1; *p < .05; **p < .01; ***p < .001. bersetzung im Kontext, The data include both credits (income) as well as debits (expenses). Participants were then asked if they believed they had taken part in a similar study in the past. Thus, this study suggests that affect may be an additional, rather than an alternative, explanation for the impact of payment frequency on spending. Another possibility is that, because segregated gains have a larger effect on affect than aggregated gains (Morewedge et al. (Mathematics) physics the number of times that a periodic function or vibration repeats itself in a specified time, often 1 second. Consistent with the real-world spending analysis, we demonstrate that higher payment frequencies lead to more spending than lower payment frequencies (study 2). For example, Walmart, the largest employer in the United States, allows its workers to receive their income daily (Corkery 2017). Hear a word and type it out. In the higher expense frequency conditions, participants paid expenses every day. Thus, employers can now choose a wider variety of payment frequency options for their employees, including higher payment frequencies like daily pay. Thus, model 2 includes total income (log-transformed) received by consumer i in month t. Model 3 includes month fixed effects to account for differences in total spending throughout the year. Instead of varying initial endowments as in study 3, in study 5, participants were paid either daily or bi-weekly, but we changed the bi-weekly pay schedule so that participants received their first bi-weekly paycheck after the first week and their last bi-weekly paycheck in the second to last week. EXPENSE Synonyms: 46 Synonyms & Antonyms for EXPENSE | Thesaurus.com A summary of the dataset can be found in web appendix A. However, these effects were qualified by a significant interaction (b = 11.58, t(318) = 2.36, p = .019). Furthermore, the effect of payment frequency on spending is attenuated for high-income consumers who likely face little to no uncertainty in predicting their resource sufficiency (study 1). Finally, we demonstrate that the effects of higher payment frequencies persist even when those with lower payment frequencies are objectively more wealthy (studies 3 and 5) or when access to higher payment frequency is optional, and consumers must request additional paychecks (study 6). Second, the ability to transfer funds electronically and automatically has reduced some of the cost and logistical considerations that previously dictated employers payment frequency decisions (Stell 2016). These subjective wealth differences stem from differences in consumers uncertainty in predicting whether they will have sufficient resources throughout a period (studies 35). When you sign up with us, you will be asked to choose . Participants were asked to make decisions as they would in their everyday life. 1994, 1999; Alba and Marmorstein 1987). After the simulation, participants were asked six questions measuring their subjective wealth perceptions on a 101-point scale (0=not at all, 100=very much): As you were going through the simulation, to what extent did you feel like you (1) had a lot of money? Find 46 ways to say EXPENSE, along with antonyms, related words, and example sentences at Thesaurus.com, the world's most trusted free thesaurus. This fee would translate into a 428% annual percentage rate (APR) for a full-time employee earning $15 an hour who chooses to receive a paycheck each weekday rather than waiting for their weekly Friday paycheck. As pre-registered, we used the serial mediation bootstrapping methodology as outlined in PROCESS Model 6 (Hayes 2017), entering payment frequency as the independent variable, prediction uncertainty as the first mediator, subjective wealth as the second mediator, and the number of times a participant selected the more expensive option across the 28 decisions as the dependent variable. (, Paley Anna, Tully Stephanie M., Sharma Eesha (, Parsons Christopher A., Van Wesep Edward D. (, Shah Anuj K., Mullainathan Sendhil, Shafir Eldar (, Tang Thomas Li-Ping, Luna-Arocas Roberto, Sutarso Toto, Shin-Hsiung Tang David (, Tangney June P., Baumeister Roy F., Boone Angie Luzio (, Tully Stephanie M., Hershfield Hal E., Meyvis Tom (, U.S. Consumer Financial Protection Bureau (, lkmen Glden, Thomas Manoj, Morwitz Vicki G. (, Oxford University Press is a department of the University of Oxford. Since prediction uncertainty should decrease as ones income increases, we next analyzed whether consumers monthly income level moderated the relationship between payment frequency and spending. Although the compensatory and retail therapy literature would suggest that negative affect increases spending (Atalay and Meloy 2011), some research supports the possibility that positive affect increases spending (Babin and Darden 1996). noun the number of occurrences within a given time period "the frequency of modulation was 40 cycles per second" "the frequency of his seizures increased as he grew older" synonyms: frequence, oftenness see more noun the number of observations in a given statistical category synonyms: absolute frequency see more noun We have argued that higher payment frequencies increase consumers subjective wealth perceptions by decreasing consumers prediction uncertainty over whether they will have enough resources throughout a period. It is usually measured in hertz. With respect to the payment frequency literature, the current work demonstrates that payment frequency can impact not just when consumers spend (Stephens and Unayama 2011) but also how much consumers spend. THE EFFECT OF PAYMENT FREQUENCY AND EXPENSE FREQUENCY ON SUBJECTIVE WEALTH PERCEPTIONS (STUDY 4). Frequency information can influence consumers judgment and decision-making, especially in complex situations (Alba et al. We then explored the influence of each of the potential mediators in a parallel mediation model using PROCESS Model 4 (Hayes 2017). Here's how it works. Frecuencia de pago | Spanish Translator H5: Subjective wealth perceptions will mediate the effect of higher payment frequencies (vs. lower payment frequencies) on spending. These results show that even after accounting for valence and power as potential mediators, there was still a significant, independent effect of subjective wealth. w25336), Expense Neglect in Forecasting Personal Finances, Measuring Emotion: The Self-Assessment Manikin and the Semantic Differential, Journal of Behavior Therapy and Experimental Psychiatry, The (Relative and Absolute) Subjective Value of Money, the Psychological Science of Money, Perceptions of Economic Insecurity: Evidence from the Survey of Economic Expectations, Using Expectations Data to Study Subjective Income Expectations, Journal of the American Statistical Association, Squeezed: Coping with Constraint through Efficiency and Prioritization, Luxury Fever: Money and Happiness in an Era of Excess, The Relationship between Objective and Subjective Wealth Is Moderated by Financial Control and Mediated by Money Anxiety, The Effects of Monetary Magnitude and Level of Aggregation on the Temporal Framing of Price, Automatic and Effortful Processes in Memory, Journal of Experimental Psychology: General, Automatic Processing of Fundamental Information: The Case of Frequency of Occurrence,, Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach, Choice Proliferation, Simplicity Seeking, and Asset Allocation, Social Comparison and Consumer Behavior: When Feeling Richer or Poorer Than Others Is More Important Than Being So, Winners Love Winning and Losers Love Money, Financial Literacy around the World: An Overview, Mispredicting the Hedonic Benefits of Segregated Gains,, Journal of Experimental Psychology. Participants were then randomly assigned to either a higher payment frequency condition or a lower payment frequency condition ($140 daily, every Monday through Friday vs. $1,400 bi-weekly, every other Friday), with those in the lower payment frequency condition receiving their first bi-weekly paycheck on the first Friday of the simluation. Frequency of Payment. In line with this theorizing, when the expense profile allows consumers with lower payment frequency to predict their resource sufficiency with the same level of certainty as a consumer with higher payment frequency, then the impact of payment frequency on subjective wealth is attenuated (study 4). redemption. Impact of Payment Frequency on Consumer Spending and Subjective Wealth We then show that the effect of payment frequency on spending is driven by consumers subjective wealth perceptions (study 2). First, we examined the number of times a participant selected the more expensive option across the 28 decisions. Indeed, consumers with objectively similar levels of financial resources can vary in their perceptions of subjective wealth (Sussman and Shafir 2012). Study 5 provided more evidence for our hypotheses. More formally, we propose the following hypotheses: H1: Higher payment frequencies will increase consumers perceptions of their subjective wealth compared to lower payment frequencies. Next, participants were asked three attention check questions: (1) how often they were paid, (2) how much they were paid per paycheck, and (3) the typical range for their daily expenses. More specifically, Morewedge, Holtzman, and Epley (2007) showed that consumers spend less when thinking about a small account (e.g., the money in their wallet) as compared to a large account (e.g., the money across their financial accounts) because purchases made from a small account feel more expensive than purchases made from a large account. Importantly, a parallel mediation model found that the subjective wealth explanation is separable from any impact of affect. Consistent with our hypothesis, participants in the higher payment frequency condition indicated feeling less uncertainty than participants in the lower payment frequency condition in predicting whether they would have enough resources throughout the simulation (Mhigher payment frequency = 35.29, SD = 23.16 vs. Mlower payment frequency = 50.34, SD = 28.63), t(110) = 3.05, p = .003, Cohens d = .58. Processing frequency information seems to be a fundamental human ability, as even kindergartners have been shown to automatically encode frequency information (Hasher and Zacks 1979). Furthermore, while we try to control for consumers monthly income, we recognize that the amount of money deposited into a consumers account is an imperfect measure of their entire financial situation. The number of occurrences in a unit of time. About Reverso Wendy De La Rosa (wendyde@wharton.upenn.edu) is an Assistant Professor of Marketing at The Wharton School, University of Pennsylvania, 3730 Walnut Street, Philadelphia, PA 19104, USA. englishtainment-tm-keuMCvgK words. Consumers income can vary across three dimensions: level (the amount of income earned), structure (the rate of payment per unit of effort), and timing (any variations in the temporal patterns of when pay is disbursed to employees for a given level and structure) (Parsons and Van Wesep 2013). Participants in the higher payment frequency condition received $100 each day, while participants in the lower payment frequency condition received $700 each week. In fact, in study 1, higher payment frequencies were associated with more bank fees, both in terms of the likelihood of incurring a bank fee (b = 0.01, t(20389) = 6.75, p < .001) as well as the amount of money spent on fees (log-transformed) (b = 0.05, t(20389) = 7.28, p < .001). Across all three of these robustness checks, payment frequency predicted both the number of purchases and the amount of spending (log-transformed) (see web appendix B for more details). Traducere n context, Error bars represent 95% confidence intervals. Understanding Payment Frequency - champion Traduction en contexte, The relationship between payment frequency and spending was robust to the inclusion of multiple controls, as well as various operationalizations of payment frequency. Overall, participants reported making decisions as they would in real life, with the median response rating being a 7 out of 7 (M=6.63, SD = 0.70). In addition, neither of these measures moderated the effect of payment frequency on the number of times participants selected the more expensive option (all t<1). We first analyzed participants usage of the daily pay access. "Pay period leap years" can lead to overpaying. We then regressed participants prediction uncertainty on their payment frequency, expense frequency, and the interaction term between these two factors using the same effect coding as in the previous analysis. Because getting paid more frequently often results in receiving funds earlier, those paid more frequently often have greater accumulated wealth on any given day compared to those paid less frequently. pay frequency - English definition, grammar, pronunciation, synonyms and examples | Glosbe English pay frequency in English dictionary pay frequency Sample sentences with " pay frequency " Declension Stem Match words Moreover, the State has reserved a nationwide transmission frequency for TV2, for which TV2 pays a frequency fee to a State body. Pay Frequency: Weekly, Biweekly, Semimonthly, or Monthly Payroll In study 3, participants paid more (vs. less) frequently felt greater subjective wealth. In sum: H3: Situational factors that reduce differences in prediction uncertainty will attenuate the impact of payment frequency on subjective wealth perceptions. Even when we restrict our analysis to these 20days, participants in the higher payment frequency condition selected the more expensive option more often than participants in the lower payment frequency condition (Mhigher payment frequency = 13.53, SD = 2.74 vs. Mlower payment frequency = 12.59, SD = 2.66), t(1,118) = 5.86, p < .001, Cohens d = .35 (see web appendix K for more details). Although subjective wealth perceptions are typically impacted by the level of ones financial resources, subjective wealth perceptions are not simply a measure of objective wealth (Gasiorowska 2014; Netemeyer et al. Nglish: Translation of payment for Spanish Speakers, Britannica English: Translation of payment for Arabic Speakers. | Finally, participants reported to what extent they made decisions as they would have made in real life on a 7-point scale (1 = not at all, 7=very much) and shared their demographic information. 2023. For example, it is unclear how payment frequency will impact savings behavior. What is another word for payment - WordHippo In addition, we measured participants self-control (13 items, Tangney, Baumeister, and Boone 2004) and intertemporal discount rates (16 item titration task). In situations where these differences in objective wealth are large enough to impact prediction uncertainty, lower payment frequencies that are received in advance could increase subjective wealth perceptions compared to higher payment frequencies. Roughly 84% of participants in the access condition chose to take advantage of the daily pay option, taking an additional 9.53 paychecks on average (SD = 7.09). Participants valence and power significantly mediated the effect of payment frequency on the number of times participants selected the more expensive option (indirect effectvalence = 0.21, 95% CI [0.11, 0.32], 10,000 resamples; indirect effectpower = 0.08, 95% CI [0.01, 0.14], 10,000 resamples), but arousal did not (indirect effectarousal = 0.01, 95% CI [0.03, 0.04], 10,000 resamples). Payment frequency did not significantly impact the extent to which participants planned for future expenses (Mhigher payment frequency = 5.62, SD = 1.21 vs. Mlower payment frequency = 5.67, SD = 1.30), t(1,118) = .57, p = .566, Cohens d = .03. All other data including data from our web appendix studies, as well as the relevant pre-registrations, can be found in Research Box #231 (https://researchbox.org/231). 2015; Paley et al. The current work underscores a broader need to understand the impact of different resource timing variations on consumers perceptions, behaviors, and general well-being. definitions. As expected, participants intertemporal discount rates did not vary by condition (Maccess = 0.038, SD = 0.026 vs. Mno access = 0.038, SD = 0.027), t(320) = 0.23, p = .822, Cohens d = .03. Study 2 aimed to examine the impact of payment frequency on spending in a more controlled setting. At the beginning of the study, participants in the high payment frequency condition read that they would receive $140 per day, every Monday through Friday. Privacy Policy. Research shows that consumers evaluate money and costs on a relative basis (Buechel and Morewedge 2014; Kassam et al. As such, we excluded 132 consumers with foreign exchange transactions as the dataset did not provide enough information to convert foreign exchange transaction amounts to the home currency. The analysis showed that when consumers experienced daily expenses, their prediction uncertainty mediated the effect of payment frequency on subjective wealth (indirect effect = 3.88, 95% CI [2.32, 5.52], 10,000 resamples). synonyms. Your pay frequency also determines how often you must run payroll. Payment Frequency definition | English definition dictionary | Reverso Synonyms commonness, frequency, regularity, currency, universality, ubiquity, common occurrence, pervasiveness, extensiveness, widespread presence, rampancy, rifeness, profusion in the sense of repetition Definition Moreover, study 3 examined why, if not for differences in objective wealth, payment frequency increases subjective wealth. However, this result should be interpreted with caution since the self-control measure was impacted by the manipulation. Contexts The rate of something happening or occurring The rate at which something pulsates or oscillates The speed with which one walks, runs, or moves The reoccurrence of an event at a given frequency or time interval more Noun Thus, whether consumers will truly benefit financially from access to higher payment frequencies remains unclear, which may be a reason why the Consumer Financial Protection Bureau has focused on these daily pay providers (U.S. Consumer Financial Protection Bureau 2020). Thus, if consumers focus on their average paycheck size, which by definition decreases as ones payment frequency increases, then higher payment frequencies may make costs feel larger and reduce ones spending. Enter the length or pattern for better results. Consistent with our prior studies, participants in the daily pay access condition selected the more expensive options significantly more often than those in the no access condition, (Maccess = 5.94, SD = 2.65 vs. Mno access = 4.52, SD = 2.08), t(331) = 5.41, p < .001, Cohens d = .59. If higher payment frequencies increase consumers perceptions of subjective wealth, then higher payment frequencies should also lead to more spending. Frequency synonyms - 438 Words and Phrases for Frequency - Power Thesaurus a system of wage payment whereby all or part of the wage varies systematically according to the level of work performance of an employee, an instalment of a larger payment made to a contractor for work carried out up to a specified stage of the job, a sum of money given by an employer to an employee who has been made redundant: usually calculated on the basis of the employee's rate of pay and length of service, an instruction to a bank by the drawer of a cheque to refuse payment on it, a small payment made in acknowledgment of the existence of debt, money received by an individual or family from the state or other body, often a pension or unemployment benefit. To the extent that decisions to save are impacted by how subjectively wealthy one feels, higher payment frequencies could facilitate more savings. We then examined whether perceptions of subjective wealth mediated the effect of payment frequency on the number of times participants chose the more expensive option. In addition, we measured participants financial literacy (8 items, Lusardi and Mitchell 2011) and intertemporal discount rates (16 item titration task) to explore whether either of these factors moderated the effect of payment frequency on spending. Perceived Financial Well-Being, Its Potential Antecedents, and Its Relation to Overall Well-Being, Too Constrained to Converse: The Effect of Financial Constraints on Word of Mouth, Is There a Daily Discount Rate? To examine this explanation for changes to subjective wealth, we measured subjective wealth, as well as consumers prediction uncertainty. We suggest that higher payment frequencies lead to increased spending. For instance, Morewedge et al. However, we are not suggesting that objective wealth differences do not matter. We tested this moderation in study 4. In the current work, we examine payment frequency, a ubiquitous aspect of consumers finances. adjectives. This study was pre-registered on AsPredicted.org (https://aspredicted.org/hn2am.pdf). Those paid more frequently experienced less prediction uncertainty, which led to increased perceptions of subjective wealth and increased their propensity to spend. We used a linear regression to check whether participants self-control moderated the impact of the access conditions on the number of times participants chose the most expensive option. To examine these possibilities, in study 5, we measured planning behavior and affect. In study 1, we explored the relationship between natural variations in consumers payment frequency and their spending. However, this serial mediation was not significant (indirect effect = 0.05, 95% CI [-0.03, 0.13], 10,000 resamples). Moreover, some payroll providers charge consumers a fee of up to $2.99 per paycheck to access higher payment frequencies. (all 7-point scales, 1=Never, 7=Always). Synonyms for 'frequency': rate, irregularity, length, basis, much, long, time, irregular, for the first/last etc time, asynchronous Where the frequency of payments will be irregular, this shall be clearly explained to the consumer. The model revealed a significant main effect of payment frequency (b=5.57, t(524) = 5.42, p < .001) and a significant main effect of expense frequency (b = 6.05, t(524) = 5.90, p < .001) on consumers subjective wealth perceptions. Payment Frequency Definition | Law Insider Compared to lower payment frequencies, higher payment frequencies lead to more distributed consumption patterns throughout the month (Berniell 2018; Parsons and Van Wesep 2013; Shapiro 2005; Stephens 2003, 2006; Stephens and Unayama 2011).