Characteristics of computer-mediated environments and their impact on spending and choice

This dissertation investigates the ways in which characteristics of computer-mediated environments impact spending and choice from a mental accounting perspective. Prospect theory has shown that the way experiences or choices are framed can change the mental representation of those choices. Expectations regarding an option in one context differ from the expectations regarding that same option in another context due to variation in the expected script. In light of this context dependency, the potential exists for spending and choice to differ when an individual changes consumption environments.; This research examines three characteristics of computer-mediated environments: the level of social presence and self-awareness, the potential for engaging in flow, and the use of intangible currency. While computer-mediated gambling has been chosen as the particular substantive domain for this research, these characteristics are not limited to this specific consumption context and findings could potentially be extended to other online environments.; Study 1 investigated how the use of intangible currency changes the coupling of benefits and payments associated with a consumption transaction. Individuals experiencing a delay between benefit and cost (compared to those with no delay) have lower intentions of performing the transaction again, lower perceptions of transaction fairness, and experience greater loss associated with the transaction. Benefit depreciation also followed a continuous trend as temporal delay increases.; Study 2 investigated elements in a sequential choice decision that might affect individuals' accuracy in updating their changing reference point. When reporting their ending balance, subjects given a long delay were significantly more accurate than those given only a short delay between choices. Compared to subjects using tangible currency, subjects using intangible currency demonstrated less accuracy at maintaining an updated accurate balance and also gave less accurate assessments of their overall ending balance.; Study 3 used phenomenological interviews with gamblers to gain a deeper understanding of the conceptual framework. Three themes were found: Going Beyond ‘Mental’ Accounting, Collective Winning and Blurred Temporal Boundaries and Identity Performance and Managing Impressions. The findings of these three studies contribute a more meaningful understanding of computer-mediated environments, and specifically shed light on spending and choice within these contexts.