~ ALICIA M. JOHNSON ~

Isenberg School of Management, UMass Amherst

Broadly, my research explores how consumers make financial decisions as individuals, romantic partners, adult children, and parents. Specifically, I evaluate factors that influence how consumers make debt financing and debt repayment decisions, set budgets and manage household finances, allocate funds among their children, and determine donation amounts and causes to support. More recently, I consider the role of the social service sector, as well as individual and systemic barriers, in influencing consumers’ financial and overall well-being.

In addition to these lines of inquiry, I also explore how consumers respond to marketing communications to make food and sustainable consumption decisions. In my future research, I strive to develop interventions firms can implement to improve consumer financial and overall well-being.

My work has been published in the Journal of Marketing Research, Journal of Consumer Research, Journal of Public Policy and Marketing, Journal of Service Research, Journal of Advertising, and Journal of Business Research. I teach a doctoral level seminar (Marketing and Society), and two undergraduate courses (Nonprofit Marketing and Foundations of Marketing). I am on the editorial review board of the Journal of the Academy of Marketing Sciences, and I am a board member of Designing a Career in the Marketing Academy as well as Nourish Eco Village.

Prior to joining academia, my work spanned roles in personal finance, business management, and supply chain management. I have a PhD from the University of Arkansas, an MBA from Clarkson University, and a BBA from SUNY Canton.

CURRICULUM VITAE | UNIVERSITY PROFILE | LINKEDIN PROFILE | RESEARCH INSIGHTS I, II & III

~ SELECT PUBLICATIONS ~

First In, First Out? How Debt Age Affects Debt Prepayment Decisions (2026) forthcoming at Journal of Marketing Research

Abstract

Consumers often take on debt at different points in time. As a result, debts may be months, if not years, apart in age. In this research, the authors ask whether and how debt age affects installment debt prepayment decisions. While the ideal strategy for prepaying older (vs. newer) debt depends on specific account parameters (e.g., interest rate, monthly payment, etc.), in many circumstances it is financially advantageous to prioritize paying down newer debt. This is because debt amortization (i.e., repayment) schedules often result in reduced interest payments when newer installment debts are paid first. However, across eight studies, including a secondary dataset of consumer loans, the authors find that consumers prefer to prepay older debt first—even when it is financially disadvantageous to do so. The authors term this the “FIFO (first-in-first-out) preference” and demonstrate that consumers prioritize older (vs. newer) debt prepayment because they feel they have invested greater effort (i.e., mental or physical work and energy) to repay it. Accordingly, reducing the effort required to repay an older debt (e.g., through automated payments) or shifting consumers’ focus from invested effort to remaining effort attenuates the FIFO preference. These findings offer implications for theory, managerial practice, and consumer welfare.

Loan Amount versus Monthly Payments: The Effect of Loan Application Formats on Consumer Borrowing Decisions (2023) Journal of Consumer Research

Abstract

Do different loan application formats affect consumer loan requests? Six studies show that when consumers are asked to provide a preferred monthly payment (MP) (vs. loan amount [LA]), they request different principal amounts. This is because these loan application formats differ in the scale-compatible information they bring to consumers’ mind. When LAs are elicited, consumers think of and request the cost of the expenditure they seek to finance. When MPs are elicited, however, consumers think of their monthly budget slack to construct and then request MPs they perceive to be affordable. For lower cost loans with a given term and interest rate, the MP (vs. LA) format results in larger principal requests. This effect reverses for higher cost acquisitions because individuals’ budget slack caps out around $500 per month. These studies provide insight into how consumer loan application formats can affect consumer borrowing, as well as the psychological underpinnings responsible for the effect. Theoretical, managerial, and consumer welfare implications of the findings are discussed.

https://doi.org/10.1093/jcr/ucad015

When I am not working, or sometimes even when I am, I enjoy spending time with my family, running, biking, being outdoors, and

helping others in my community (see more here).

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