Abstract Consumers frequently receive refunds from prior purchases. In this research, we examine if money refunded from previous purchases is more likely to be spent than money that does not go through a refund process. Across nine pre-registered studies, we test how consumers’ willingness to spend depends on the transaction history of their money. We find that, when people receive a refund and do not need to replace the originally purchased item, they are more likely to spend the refunded money on a discretionary purchase than they are to spend non-refunded money that is otherwise identical. We suggest that this pattern arises because refunded money is earmarked as “spending money” at the time of the initial purchase and then retains that earmark even after the refund is issued. When refunds arrive, therefore, they seem free from obligations and easy to spend. This research documents the psychology of purchase refunds, a topic largely unaddressed in the mental accounting literature to date.

This article examines the effects of firm motivation (an intrinsic or extrinsic interest in their product) on perceptions of brand authenticity and anticipated product quality. Specifically, studies 1 and 2 show that an intrinsic motivation increases authenticity perceptions which, in turn, increase perceived product quality, even for negatively regarded products. Studies 3a and 3b demonstrate that motivation affects perceived product quality (through perceived authenticity) by influencing deliberate attribute‐level inferences consumers make about the product, and Study 4 demonstrates that the positive effect of intrinsic motivation (through authenticity) disappears in the presence of objective product attribute information, when such inferences are no longer necessary. These findings suggest that authenticity perceptions are malleable, and they shed light on the mechanism through which brand authenticity leads consumers to anticipate that a brand's products will be higher in quality.