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Buy Now Pay Later: Untangling the Nonlinear Effect of Installment Payment on Consumer Purchases

Research output: Chapter in Book/Conference proceedingConference contributionpeer-review

Abstract

Although installment payment has been regarded as a popular payment option on the e-commerce platform, there is an ongoing debate regarding whether it can facilitate product sales. Therefore, to disentangle this mixed understanding, the current study combines econometrics and experiments to test the optimal number of installment periods. The findings of the study show that the number of installment periods has a curvilinear impact on product sales; with the initial increment of installment periods, it can stimulate consumer purchase; however, it has a detrimental effect later on. These results can provide actionable suggestions for retailers to refine their setting of installment payments.

Original languageEnglish
Title of host publicationPacific Asia Conference on Information Systems, PACIS 2024
EditorsTuan Q. PHAN, Bernard Tan, Le Hoanh-Su, Nguyen Hoang Thuan
PublisherAssociation for Information Systems
ISBN (Print)9781958200124
Publication statusPublished - 2024
Event28th Pacific Asia Conference on Information Systems, PACIS 2024 - Ho Chi Minh City, Viet Nam
Duration: 1 Jul 20245 Jul 2024

Publication series

NamePacific Asia Conference on Information Systems
ISSN (Electronic)2689-6354

Conference

Conference28th Pacific Asia Conference on Information Systems, PACIS 2024
Country/TerritoryViet Nam
CityHo Chi Minh City
Period1/07/245/07/24

Free Keywords

  • Double-edged sword
  • E-commerce platform
  • Installment payment
  • Multi-method Int

ASJC Scopus subject areas

  • Management Information Systems
  • Management of Technology and Innovation
  • Library and Information Sciences

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