scholarly journals Conversational robo advisors as surrogates of trust: onboarding experience, firm perception, and consumer financial decision making

2020 ◽  
Author(s):  
Christian Hildebrand ◽  
Anouk Bergner
Keyword(s):  
Decision Making ◽  
Asset Allocation ◽  
Financial Services ◽  
Investor Behavior ◽  
Human Communication ◽  
Affective Trust ◽  
Financial Decision Making ◽  
Trust Formation ◽  
Financial Decision ◽  
Effective Design

AbstractThe current research demonstrates how conversational robo advisors as opposed to static, non-conversational robo advisors alter perceptions of trust, the evaluation of a financial services firm, and consumer financial decision making. We develop and empirically test a novel conceptualization of conversational robo advisors building on prior work in human-to-human communication and interpersonal psychology, showing that conversational robo advisors cause greater levels of affective trust compared to non-conversational robo advisors and evoke a more benevolent evaluation of a financial services firm. We demonstrate that this increase in affective trust not only affects firm perception (in terms of benevolence attributions or a more positively-valenced onboarding experience), but has important implications for investor behavior, such as greater recommendation acceptance and an increase in asset allocation toward conversational robo advisors. These findings have important implications for research on trust formation between humans and machines, the effective design of conversational robo advisors, and public policy in the digital economy.

Modelling the Effects of Financial Services Advertising on Financial Product Purchase: An Empirical Validation

2019 ◽  
Vol 23 (4) ◽  
pp. 418-431
Author(s):  
Pallavi Dogra ◽  
Rishi Raj Sharma
Keyword(s):  
Decision Making ◽  
Factor Analysis ◽  
Financial Literacy ◽  
Financial Services ◽  
Service Providers ◽  
Decision Making Process ◽  
Celebrity Endorsement ◽  
Financial Decision Making ◽  
Perceived Reality ◽  
Financial Decision

The main aim of the study is to find the effect of the financial advertisement on the respondent’s information selection, processing and analysing it while making the financial purchase decisions. The study identified the important factors that affect the investment decision-making process and explored them by using the exploratory factor analysis. The conceptual model has been tested using the AMOS SEM software. The factor analysis identified the four important factors that are affecting the financial decision-making, that is, financial literacy, celebrity endorsement, perceived reality and entertainment. The hypothesis testing reveals that advertisement, perceived reality and entertainment are affecting the information processing and financial decision-making process, whereas financial literacy and celebrity endorsement do not have significant effects on the financial product purchase. The results are useful for the advertisers, policy makers and the financial service providers so as to increase the sale of financial products by focusing on the variables extracted by the research.

scholarly journals Financial Capability in Ethiopia: A Case Study of Addis Ababa City

2020 ◽  
Vol 10 (3) ◽  
pp. 245
Author(s):  
Miheretu Kebede Lemu
Keyword(s):  
Decision Making ◽  
Financial Services ◽  
Addis Ababa ◽  
Financial Knowledge ◽  
Financial Behavior ◽  
Financial Contracts ◽  
Financial Capability ◽  
Financial Decision Making ◽  
Financial Decision

This study investigates financial knowledge, behavior and attitude of individuals to gauge how the financial market evaluates an individual's financial capability and financial decision making. Higher financial knowledge increases the entry into sophisticated financial contracts and the understanding of contemporary featured new financial products as well as good financial decision making. Financial behavior also enhances the financial decision making of those individuals as well as the relationship between individuals and their behavior towards saving, investment, cash and credit. These effects are intensified by individuals' financial behavior, the level of relationship with investments, savings and the use of credit. This study found out that a deeper acquaintance of individuals on financial knowledge, attitude and behaviour results in positive consequences on their relations with financial services providers and in turn promotes to financial capability.

scholarly journals How financial decision-making changes when a marriage ends : evidence from the 1992-2016 health and retirement study

2019 ◽  
Author(s):  
◽  
Chen Xu
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Asset Allocation ◽  
Marital Dissolution ◽  
Decision Makers ◽  
Financial Control ◽  
Wealth Accumulation ◽  
Financial Decision Making ◽  
Financial Decision ◽  
Retirement Study

Transitioning from being married to divorced or widowed is difficult, financially as well as emotionally. Individuals who had left money matters to their partners during marriage enter a period of decreased financial control after marital dissolution and need to build their capacity to manage their own finances. This research used the 1992-2016 Health and Retirement Study (HRS) to investigate the following questions: Compared to a marriage's financial decision maker, how does the non-decision maker assume financial control post-marriage and change asset allocation and wealth accumulation over time? Who loses out by remaining uninvolved in a marriage's financial decision-making? Descriptive analyses and a linear mixed regression model were used to explore whether, after becoming divorced or widowed, net worth is higher for financial decision makers than non-decision makers. A similar analysis was performed on the proportions of risky assets held in investment portfolios, examining whether proportions are higher for the decision makers. The results showed that divorce and widowhood were detrimental to financial health no matter a person's attributes. However, impacts disproportionately affected some groups, including respondents who were non-financial decision makers during marriage. Gender, race, and level of education also influenced how much marital dissolution impacted post-marriage asset allocation and wealth accumulation. The findings suggest that individual investors, financial planners, and researchers would benefit from figuring out how to design collaborative, responsive financial plans that enhance typically uninvolved persons' decision-making skills and adapt to life changes.

scholarly journals Financial Decision Making in The Framework of Neuroscience / Anthropology with Review to The Pandemic and Climate Change

2020 ◽  
Vol 4 (4) ◽  
pp. 55-65
Author(s):  
Ana Njegovanović
Keyword(s):  
Social Sciences ◽  
Climate Change ◽  
Decision Making ◽  
Financial Services ◽  
Quantum Physics ◽  
Financial Decision Making ◽  
New Information ◽  
Financial Decision ◽  
Climate Crisis ◽  
Economic Future

The purpose of this paper is interdisciplinary research of combinations of different disciplines of (natural) anthropology/neuroscience of consciousness and quantum physics and (social sciences) of financial decision making in the context of climate change and pandemics, which can be useful for finding new information, solving complex problems. The aim of this study is to provide insights into financial decision-making through the intertwining of anthropology/neuroscience and quantum physics in financial decision-making within COVID 19 and climate change and what their relationship/outcomes are. Human consciousness has slipped towards the collapse of convergent crises. Namely, health and climate change are intertwined. The causes of the COVID 19 crisis and climate change are common and their effects are approaching. The climatic situation and COVID-19, a zoonotic disease, are subject to human activity that has led to environmental degradation. Neither the climate crisis nor the zoonotic pandemic was unexpected. They have led to the loss of life that could have been prevented by delayed, insufficient, or wrong actions. Financial decision-making requires harmonizing public health improvements, creating a sustainable economic future, and better protecting remaining natural resources and biodiversity Perhaps in this context financial simplification could be defined as the coexistence of all options with different degrees of potential that we will choose (it is a superposition), other options cease to exist for us when we enter the so-called zero of the desired option (the brain prepares our decisions). The results of the research showed us that COVID 19 and climate change have caused economic risks and uncertainties that have far-reaching and profound implications for financial decision-making as well as the financial services industry and its institutions. Extending tools through anthropology/neuroscience and quantum physics has given us knowledge of the need to connect both the natural and social sciences to understand the complex world around us. Keywords: Anthropology, Neuroscience, Quantum physics, Financial Decision Making.

The role of mixed emotions in financial decision making

2011 ◽  
Author(s):  
Gergana Y. Nenkov ◽  
Deborah MacInnis ◽  
Maureen Morrin
Keyword(s):  
Decision Making ◽  
Mixed Emotions ◽  
Financial Decision Making ◽  
Financial Decision

The Performance-Variability Paradox, Financial Decision Making, and the Curious Case of Negative Hurst Exponents

2013 ◽  
Author(s):  
Stephen J. Guastello ◽  
Katherine Reiter ◽  
Anton Shircel ◽  
Paul Timm ◽  
Matthew Malon ◽  
...  
Keyword(s):  
Decision Making ◽  
Financial Decision Making ◽  
Performance Variability ◽  
Financial Decision ◽  
Hurst Exponents
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