Whom You Pay Matters: How the Payment Path of Shared Expenses Affects Purchase Satisfaction

Abstract This research investigates how the method of paying a shared expense affects purchase satisfaction. When multiple consumers share an expense (e.g., a meal, Uber ride, or vacation), each consumer can pay their own share directly, or one consumer can pay the total and others can repay them. Eight preregistered studies showed that indirect payment through another consumer led to higher purchase satisfaction versus direct payment to the vendor. This effect emerged regardless of the existing relationship (friend, acquaintance, or disliked person), or whether the consumers spent different amounts. Mediation evidence showed that indirect payment increased purchase satisfaction by providing relief from resolving indebtedness. Moderation evidence further supported our proposed process as this effect disappeared when either a financial obligation was made salient, or the focal consumer initially paid the total. This research highlights the distinction between direct and indirect payment paths in shared expenses, contributing a new construct to the consumer finance area. It also has implications for consumers who should realize the effects of shared expenses on their decision satisfaction and budgeting, and marketers who could encourage shared payments to increase satisfaction at little cost.