For most people, the pain of paying in cash is greater than the pain of swiping a card, and even though you know exactly how much money you're going to spend, watching cash fall out of your hands is still more painful than swiping a card. There is a clear correlation between the pain of spending money and watching it be taken away, as well as whether or not the cash is taken immediately at the same time as it is consumed. Imagine two ways to transact, pay before you get the service, and pay before you get the service. Obviously, it's the most cost-effective way to get the service first and pay later, so you can invest the money you have while enjoying the service, so as to get more returns. But if you know that you will lose the money immediately after enjoying the service, and you know the pain of spending money, then the pain of losing money or spending money when enjoying the service will add mental burden to the consumption behavior. And the importance consumers attach to this mental burden, the pain of spending money, will also affect their mood. In summary, how and when you spend money affects the mood of consumers.
In order to increase the pain of spending money, we can try to use cash to pay bills, and use debit cards to pay bills and open SMS reminders at the same time, so that every time you pay by card, you will be reminded by SMS for better control, which can improve the significance of spending money - for example, the difference between paying for gas and paying for electricity. When you go to the gas station to refuel, when you pay for gas, you need to drive there, get out of the car and take the gas nozzle and insert the hole, press the switch and watch the meter jump constantly. This will significantly increase your awareness of the loss of money and increase the pain of spending it. When paying the electricity bill, there is no at all, the meter is outdoors, we can't see how it works, and many times the electricity bill is automatically deducted from the account every month, and you can't imagine the pain of paying the electricity bill. If you learn the system used by the British, every time you have to put coins into a small box and then the appliances only work for a while, then maybe your house is not so comfortable.
To alleviate the pain of spending money, we need to use credit cards, hidden payments, and pay before we can enjoy the service. If you go on vacation every time you go on the street, take a car, stay, eat and drink, you have to take care of yourself**, maybe the vacation is not so happy, on the contrary, if you are prepaid to enjoy an all-inclusive travel service, you just need to give the money and enjoy it.
What is an ideal gift and what characteristics should an ideal gift have?The most important feature of an ideal gift is that it reduces the pain of payment. For example, many people will have something that they want to buy but know not to buy, which is an ideal gift. Someone else bears the pain of paying, and you receive the benefits of the gift, and that's the ideal gift. The pain when paying is because it contains:
1. Opportunity cost: because you know that when you use the money, you can't do other things;
2. Troubles of choosing: for example, whether to use cash or credit card
3. Mental burden and guilt;
4. Different payment methods cause different degrees of suffering, and payment at different times will also produce different internal pain.