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Consumer Behavior and Payment Choice: A Conference Summary

Source: bosfed.org
Topic: Consumer Behavior

Sort Desciption: Commission and others are involved in shaping consumer payment behavior. .... payment products and influence consumer behavior failed either because the ...

Content Inside: 1 No.06‐1 ConsumerBehaviorandPaymentChoice: AConferenceSummary MarianneCroweScottSchuhandJoannaStavins Abstract: The Emerging Payments Research Group (EPRG) at the Federal Reserve Bank of Boston sponsoredanewconference“ConsumerBeha viorandPaymentChoice:HowandWhyDo ConsumersChooseTheirPaymentMethods?” onOctober27–282005attheBostonFed.The conference brought together a diverse set of participants from the academic private and public sectors. This paper provides a summary and overview of the conference. Key conclusions are that the consumer’s decision‐making process concerning payment choice is quitecomplexthatstandardeconomicmodelshave difficultyincorporatingthiscomplexity that additional research—especially interdisciplinary research—into consumer choice of paymentmethodisneededandthatthisconference wasanimportantstepinthatdirection. JELClassifications:D11D12 MarianneCroweisanAssistantVicePresidentand ScottSchuhandJoannaStavinsareeachSenior EconomistandPolicyAdvisorallattheFederalRe serveBankofBoston.Theire‐mailaddress esare marianne.crowe@bos.frb.orgscott.schuh@bos. frb.organdjoanna.stavins@bos.frb.orgrespec tively. TheauthorsthanktheconferenceteamattheFeder alReserveBankofBostonAlysonBaldockKrista BeckerJimCunhaDavidDeRemerJeffFuhrerTricia GeaganSallyGreenSandyMacDonaldNasreen QuibriaandTrishRivard. Thispaperwhichmayberevisedisavailableonthe websiteoftheFederalReserveBankofBostonat http://www.bos.frb.org/economic/ppdp/index .htm. Theviewsexpressedinthispaperaresolelythose oftheauthorsanddonotreflectofficialpositio nsof theFederalReserveBankofBostonortheFederalR eserveSystem. Thisversion:January2006 2 I. Introduction Theseareunusualtimesinthepaymentsindustry. Aworkhorsetraditionalpayment method—papercheck‐writing̵ 2;isheadingouttopasture.Paperchecksarebein greplacedbya host of new electronic payment methods emerging from the technological revolution in information processing. Most p ...