Decision-making in online retailing : The effect of payment solutions on cognitive dissonance and brand attitude

Abstract

The growing consumer debt in many western countries is a major concern for the economy. In the meantime, online retailers are growing in number and are offering multiple payment solutions, many of which include delaying payments. However, there is little understanding of how consumers make the decision on how to finance their purchases, or how different payment solutions affect the consumer's postpurchase cognitive dissonance. This thesis intends to understand how consumers decide upon a payment method, by labelling the active cognitive decision-making system. Furthermore, it determines that consumers who choose payment delaying methods display strong indications of having higher cognitive dissonance levels than those who choose debit payment. Finally, this thesis proves that this experienced cognitive dissonance has a larger impact on the purchased brand than towards the third-party payment solution company, as the negative consumer attitude change was stronger towards the purchased brand.