Mental accounting

People sort money into mental budgets and judge spending within them.

Pricing and value perception Mainly on Cart pages
Where it applies

Three of the eight page areas.

HomepageNot typical CategoryNot typical SearchNot typical ProductAlso applies CartMainly here CheckoutAlso applies Post-purchaseNot typical

Not usually a sitewide principle. See everything at work on Cart pages

How to use it

Four ways to put it to work.

  • Present vouchers, credits and money-off codes as a bonus to spend.
  • Offer bundles at one price.
  • Set a free-delivery threshold.
  • Show cost per use.
What the research found

A 2025 replication supported 11 of 17 classic mental accounting problems.

Shoppers redeeming a $10-off coupon at an online grocer spent $1.59 more than usual.

A 2025 registered replication of 17 classic mental accounting problems (about 1,000 US adults) supported 11, gave mixed results for three and no support for three. At an online grocer, shoppers redeeming a $10-off coupon spent $1.59 more than usual, mostly on items they did not normally buy.

Key research

Four sources, each checked.

Last reviewed

Thaler (1985) Mental Accounting and Consumer Choice Marketing Science Read the source Thaler (1999) Mental accounting matters J. Behavioral Decision Making Read the source Li & Feldman (2025)Replication Revisiting mental accounting classic paradigms: Replication Registered Report of the problems reviewed in Thaler (1999) Royal Society Open Science Read the source Milkman & Beshears (2009) Mental accounting and small windfalls: Evidence from an online grocer J. Economic Behavior & Organization Read the source