Too constrained to converse: the effect of financial constraints on word-of-mouth

Existing research demonstrates that financial constraints are widespread and influence consumer attention, preference, choice, and consumption in a variety of ways. Despite the growing knowledge of how financial constraints affect the consumer decision making process, less is known about its impact on post-purchase behavior. This work examines whether financial constraints impact an important post-purchase behavior—word-of-mouth—and in what direction. Seven studies show that financial constraints reduce purchase-related word-of-mouth. This effect emerges across consumers’ reported frequencies of discussing their purchases with friends and family, as well as their intentions, desires, and real decisions to engage in online word-of-mouth. This effect is explained by reduced anticipated pleasure of engaging in purchase-related word-of-mouth, which results from financially constrained consumers’ belief that rehearsing their monetary expenditures will reinforce negative feelings about their ...