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The Role of Account Justificableness in Mental Accounting

Abstract

The purpose of this study was to verify the impact of the expenditure category itself's justification on the consumer's willingness to spend. Results indicated that when expenditure cannot be justified with the remaining budget of the expenditure account, justificableness of expenditure category affected consumer's willingness to spend. It was also shown that individuals with higher frugality are more willing to spend for expenditure that are related to more justifiable category. Finally, when a expenditure could be interpreted to two expenditure categories, consumers showed willingness to spend to interpret the expenditure as a more related to justifiable expenditure category. Implications, limitations, possible future studies were discussed.

keywords
mental accounting, justification, frugality, motivated reasoning

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