Discount Rates for Time versus Dates: The Sensitivity of Discounting to Time-Interval Description

• Published in: Journal of marketing research Vol. 43; no. 1; pp. 59 - 72
• Main Author: LeBoeuf, Robyn A.
• Format: Journal Article
• Language: English
• Published: Chicago American Marketing Association 01.02.2006; SAGE PUBLICATIONS, INC
• Subjects: Certificates of deposit; Consumer behavior; Discount rates; Discounting; Focalism; Long term investments; Marketing; Modeling; Musical intervals; Pricing policies; Ratios; Return on investment; Sales promotions; Statistical analysis; Studies; Time perception

Six experiments examine the impact of time-interval descriptions on consumers' discount rates. Consumers exhibit more discounting (e.g., they demand more money to delay income) when delay intervals are described by extents of time than when delay intervals are described by dates. This pattern h...