Bottom Dollar Effect

Our tendency to dislike products and services that exhaust our remaining budget. We are less satisfied with our purchases if they cause a strain on our finances.

#buying

  1. Tharp, D. (2017, January 23). The Bottom Dollar Effect And The Behavioral Advantage Of AUM Pricing Over Retainers. Kitces. https://www.kitces.com/blog/bottom-dollar-effect-and-behavioral-finance-bias-for-aum-over-retainer-fees
  2. Soster, R. (2014, June 16). ‘Bottom-dollar effect’ makes shoppers blue. Interview by C. Kissel. Bankrate. https://www.bankrate.com/finance/smart-spending/bottom-dollar-effect-makes-shoppers-blue.aspx
  3. Coglode. (2020, September 1). Bottom Dollar Effect. https://www.coglode.com/gem/bottom-dollar-effect
  4. Soster, R. L., Gershoff, A. D., & Bearden, W. O. (2014). The bottom dollar effect: The influence of spending to zero on pain of payment and satisfaction. Journal of Consumer Research, 41(3), 656-677. https://doi.org/10.1086/677223