Keeping Consumers in the Red: Hedonic Debt Prioritization Within Multiple Debt Accounts

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Keeping Consumers in the Red: Hedonic Debt Prioritization Within Multiple Debt Accounts
Objectives
The main objectives of the article are to find out the various psychological ways that can be used in maintaining the consumers loyal to the while handling the multiple debt accounts. Another objective is to help the debtors to pay down their small balances at a lower interest rate than overcharging them which can scare them off.
Methodology
This methodology involved in this research involved the use of psychological measures to determine consumer behavior regarding maintaining their debts and keeping around the organization’s products or services.
Summary of research results
This article indicates the methods that can be used in the psychological debt repayment. This involved series of experiments conducted to find out the debt repayment of the consumers and at the same time managing the multiple accounts (Besharat, Varki, & Craig, pp312). During the deeper analysis of the article, it is clearly indicated that there are irrational behaviors by the debtors with multiple (credit) cards. This is majorly felt during the process of paying back the smaller balances instead of the balances associated with higher interest rates.
Managerial implications of the research
There are various managerial implications on the multiple debt accounts. For instance, it becomes harder and more expensive for the company to manages different debts simultaneously.

The employees or management of the organization tend to be overstrained since some of the consumers it becomes so hard for them to pay back in time. Thus, this research is essential in providing managers with plenty of options regarding the different way that can be used in managing multiple debts accounts and at the same time maintaining their customers.
Relate the research results/implications to your own behavior or to a company
This research is closely related to the loyal customers in our company whom in most cases prefer taking items on credit since their loyal to the business. However, this brings a hard time to the maintenance of the debts since some of them it becomes hard to pay back in time.

Works cited
Besharat, A., Varki, S., & Craig, A. W. (2015) “Keeping Consumers in the Red: Hedonic Debt Prioritization Within Multiple Debt Accounts,” Journal of Consumer Psychology, 25 (2), 311- 316.