When Desire Is Stronger Than Debt Aversion : Enticing Consumers With Interest-Free Financing Deals

Slogans such as "Buy Now, Pay Later" or "Same as Cash Financing" are found at many retailers and for a wide variety of products (cars, furniture, toys, jewelry, consumer electronics etc.). Despite the popularity of interest-free promotional tools, academic research on them is lacking. Therefore, this research investigates consumers' reactions to interest-free financing deals and shows that evaluative judgments, emotions, behavioral intentions (purchase and financing intentions), and product choices depend on (1) consumers' personal financial situation, (2) how the interest-free deal is framed, and (3) consumers' impulsivity.