Regulatory focus and construal level theory on low-income consumer indebtedness: Evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patrícia de Oliveira Campos ◽  
Marconi Freitas da Costa
Keyword(s):  
Decision Making ◽  
Low Income ◽  
Regulatory Focus ◽  
Task Complexity ◽  
Emerging Market ◽  
Psychological Distance ◽  
Construal Level Theory ◽  
Construal Level ◽  
Content Type ◽  
Low Income Consumers

PurposeThis study aims to further analyse the decision-making process of low-income consumer from an emerging market by verifying the influence of regulatory focus and construal level theory on indebtedness.Design/methodology/approachAn experimental study was carried out with a design 2 (regulatory focus: promotion vs prevention) × 2 (psychological distance: high vs low) between subjects, with 140 low-income consumers.FindingsOur study points out that the propensity towards indebtedness of low-income consumer is higher in a distal psychological distance. We found that promotion and prevention groups have the same propensity to indebtedness. Moreover, we highlight that low-income consumers are prone to propensity to indebtedness due to taking decisions focused on the present with an abstract mindset.Social implicationsFinancial awareness advertisements should focus on providing more concrete strategies in order to reduce decision-making complexity and provide ways to reduce competing situations that could deplete self-regulation resources. Also, public policy should organize educational programs to increase the low-income consumer's ability to deal with personal finances and reduce this task complexity. Finally, educational financial programs should also incorporate psychology professionals to teach mindfulness techniques applied to financial planning.Originality/valueThis study is the first to consider regulatory focus and construal level to explain low-income indebtedness. This paper provides a deeper analysis of the low-income consumers' decision process. Also, it supports and guides future academic and decision-making efforts.

Using Construal Level Theory to Motivate Accounting Research: A Literature Review

2015 ◽  
Vol 27 (1) ◽  
pp. 137-180 ◽  
Author(s):  
Martin M. Weisner
Keyword(s):  
Decision Making ◽  
Psychological Distance ◽  
Construal Level Theory ◽  
Judgment And Decision Making ◽  
Spatial Distance ◽  
Construal Level ◽  
Accounting Research ◽  
Geographically Dispersed ◽  
Comprehensive Framework ◽  
And Behavior

ABSTRACT This study reviews extant literature on construal level theory (CLT) of psychological distance (Liberman and Trope 1998; Trope and Liberman 2003). According to CLT, the concept of psychological distance constitutes a common meaning shared by four interrelated dimensions: temporal distance, social distance, spatial distance, and hypotheticality. The core premise is that psychological distance is tied to the level of mental construal (i.e., mental representation), such that more distant objects (or situations) are construed at a higher level and higher-level construals evoke thoughts of more distant objects (Trope and Liberman 2010). CLT further suggests that mental construals influence evaluation, prediction, and behavior (Trope, Liberman, and Wakslak 2007). In spite of the fact that CLT is considered a prominent contemporary theory and comprehensive framework for judgment and decision-making, behavioral accounting research, with few exceptions, has largely ignored the theory's predictions and insights. However, as accounting, auditing, and business in general become increasingly global and geographically dispersed, the perspectives provided by CLT should no longer be ignored. This study aims at illustrating CLT's potential for investigating hitherto unexplained phenomena within the accounting domain and argues that CLT provides the potential for a superior understanding of the heuristics and biases in judgment and decision-making that are associated with distance-affected decision environments. The paper reviews the findings reported in 88 articles (and one book chapter) with an emphasis on publications that apply CLT in contexts that are of particular interest to accounting researchers. CLT's underlying theoretical logic, its commonalities, and its differences with related theories and models are explained through a detailed review of the insights gained from basic CLT research. Commonly applied methods associated with experimental manipulations are highlighted, and broad, CLT-based research questions pertaining to various accounting domains are offered.

scholarly journals Influence of Psychological Distance on People’s Willingness to Help Accident Victims: Discrepancies Between Implicit and Explicit Inferences

SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110332
Author(s):  
Yuri Taniguchi ◽  
Tomoko Ikegami
Keyword(s):  
Causal Attribution ◽  
Psychological Distance ◽  
Construal Level Theory ◽  
Situational Factors ◽  
Construal Level ◽  
Cognitive Elaboration ◽  
Willingness To Help ◽  
Helping Behaviors ◽  
Implicit And Explicit

Drawing on construal-level theory, this study explored how a sense of psychological distance from an accident influences people’s willingness to help victims. We conducted a scenario experiment with a sample of 81 Japanese undergraduates. Participants were presented with a short scenario describing an accident that happened on either a distant or a nearby mountain. The results show that the greater the distance perceived by participants from the accident, the more likely they were to infer negative traits about the victim at an implicit level. However, the more they inferred negative traits at an implicit level, the more likely they were to attribute the cause of the accident to external situational factors, at an explicit level. Finally, explicit external causal attribution aroused greater sympathy for the victim, resulting in an increased willingness to help. This discrepancy between implicit and explicit inferences was discussed in terms of cognitive elaboration, in which people engage in helping behaviors when they feel responsible for the fate of the victim.

Investor sentiment antecedents

2019 ◽  
Vol 11 (1) ◽  
pp. 36-54 ◽  
Author(s):  
Ranjan Dasgupta ◽  
Rashmi Singh
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Emerging Market ◽  
Investment Decision ◽  
Investor Sentiment ◽  
Equation Modeling ◽  
Content Type ◽  
Investment Decision Making ◽  
Retail Investors ◽  
Specific Factors

PurposeThe determinants of investor sentiment based on stock market proxies are found in numbers in empirical studies. However, investor sentiment antecedents developed from primary survey measures by constructing an investor sentiment index (ISI) are not done till date. The purpose of this paper is to fill this research gap by first developing an ISI for the Indian retail investors and then examining the investor-specific, stock market-specific, macroeconomic and policy-specific factors’ individual impact on the investor sentiment.Design/methodology/approachFirst, the authors develop the ISI by using the mean scores of six statements as formulated based on popular direct investor sentiment surveys undertaken throughout the world. Then, the authors employ the structural equation modeling approach on the responses of 576 respondents on 40 statements (representing the index and four study hypotheses) collected in 2016 across the country.FindingsThe results show that investor- and stock market-specific factors are the major antecedents of investor sentiment for these investors. However, interestingly macroeconomic fundamentals and policy-specific factors have no role to play in driving their sentiment to invest in the stock market.Practical implicationsThe major implication of the results is that the Indian retail investors are showing a mixed approach of Bayesian and behavioral finance decision making. So, these implications can guide the investment consultants, regulators, other stakeholders in markets and overwhelmingly the retail investors to introspect their investment decision making across time horizons.Originality/valueThe formulation of ISI in an emerging market context and thereafter examining possible antecedents to influence retail investors in their investment decision making are not done till date. So, the study is unique in its research issue and findings and will have significant implication for the retail investors at least in emerging market contexts.

Assessing algorithms for selecting countries to market new products to low-income consumers

2013 ◽  
Vol 3 (4) ◽  
pp. 1-12
Author(s):  
Michael D Metzger ◽  
Arch G. Woodside ◽  
John C. Ickis
Keyword(s):  
Emerging Markets ◽  
New Product Development ◽  
Low Income ◽  
Food Packaging ◽  
New Products ◽  
Subject Area ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Decision Tools ◽  
Low Income Consumers

Title – Assessing algorithms for selecting countries to market new products to low-income consumers. Subject area – A consulting team to an international food packaging company (SDYesBox) is attempting to decide which algorithm is the most useful for selecting two national markets in Central America and the Caribbean. SDYesBox wants to work closely with its immediate customers – manufacturers in the dairy and food industry and their customers (retailers) – to develop and market innovative products to low-income consumers in emerging markets; the “next big opportunity for the dairy industry” according to SDYesBox. Study level/applicability – New product development and market selection in emerging markets in Latin America. Case overview – Five algorithms are “on the table” for assessing 14 countries by 12 performance indicators: weighted-benchmarking each country by the country leader ' s indicator scores; tallying by ignoring indicator weights and selecting the countries having the greatest number of positive standardized scores; applying a conjunctive and lexicographic combination algorithm; and using a “fluency metric” of how quickly consumers can say each country aloud. At least one member of the consulting team is championing one of these five algorithms. Which algorithm do you recommend? Why? Expected learning outcomes – Learners gain skills, insights, and experience in alternative decision tools for evaluating and selecting choices among emerging markets to enter with new products for low-income (bottom of the pyramid) products ands services. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

scholarly journals Psychological distance modulates goal-based versus movement-based imitation

2019 ◽  
Author(s):  
Oliver Genschow ◽  
Jochim Hansen ◽  
Michaela Wänke ◽  
Yaacov Trope
Keyword(s):  
Pilot Study ◽  
Psychological Distance ◽  
Past Research ◽  
Construal Level Theory ◽  
Temporal Distance ◽  
Spatial Distance ◽  
Construal Level ◽  
Direct Mapping

In past research on imitation, some findings suggest that imitation is goal based, whereas other findings suggest that imitation can also be based on a direct mapping of a model’s movements without necessarily adopting the model’s goal. We argue that the two forms of imitation are flexibly deployed in accordance with the psychological distance from the model. We specifically hypothesize that individuals are relatively more likely to imitate the model’s goals when s/he is distant but relatively more likely to imitate the model’s specific movements when s/he is proximal. This hypothesis was tested in four experiments using different imitation paradigms and different distance manipulations. Experiment 1 served as a pilot study and demonstrated that temporal distance (vs. proximity) increased imitation of a goal relative to the imitation of a movement. Experiments 2 and 3 measured goal-based and movement-based imitation independently of each other and found that spatial distance (vs. proximity) decreased the rate of goal errors (indicating more goal imitation) compared to movement errors. Experiment 4 demonstrated that psychological distance operates most likely at the input—that is, perceptual—level. The findings are discussed in relation to construal level theory and extant theories of imitation.

Low‐income consumers' reactions to low‐involvement products

2009 ◽  
Vol 27 (7) ◽  
pp. 882-899 ◽  
Author(s):  
Ayantunji Gbadamosi
Keyword(s):  
Low Income ◽  
Women Consumers ◽  
Content Type ◽  
Marketing Environment ◽  
The Subject ◽  
Low Income Women ◽  
Grocery Products ◽  
Low Income Consumers ◽  
Depth Interviews ◽  
Is Value

PurposeThe purpose of this paper is to explore the attitudes and behaviour of low‐income women consumers in respect of low‐involvement grocery products.Design/methodology/approachOne focus group and 30 in‐depth interviews on the subject‐matter are conducted with low‐income women in Salford (Northwest England). Given the nature of the topic and the target respondents involved, the subjects are recruited through the use of purposive and snowballing sampling methods.FindingsThe findings suggest that low‐income women consumers' purchases of low‐involvement grocery products are based on habit. They do not show strong loyalty to brands of these products, and do not perceive price as an indication of their quality. Their key motivation underlying their purchases of these products is value‐for‐money. Also they are very sensitive to sales promotional stimuli, albeit in varying degrees according to the respective attractiveness of these tools. However, while they indicate a positive attitude towards buy‐one‐get‐one‐free (BOGOF), free samples, discount and coupons, BOGOF stands out as their best preference; but they are not positively inclined towards gifts and competition.Originality/valueThe paper explores the motivation, attitudes and behaviour of a special group of consumers (low‐income women) in respect of low‐involvement grocery products. It indicates the directions of their sensitivity in terms of marketing stimuli. Hence, it will be valuable for marketing decision making towards providing this group of consumers with the utmost satisfaction needed in this increasingly complex marketing environment.

Building blocks of financial inclusion through customer experience value at financial touchpoints in Southern Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nkosinathi Sithole ◽  
Gillian Sullivan Mort ◽  
Clare D'Souza
Keyword(s):  
Southern Africa ◽  
Low Income ◽  
Financial Services ◽  
Building Blocks ◽  
Customer Experience ◽  
The Body ◽  
Financial Inclusion ◽  
Structured Interviews ◽  
Content Type ◽  
Low Income Consumers

PurposeThis paper aims to examine customer experience value orchestrated by non-banks' financial touchpoints to understand how they enhance the financial inclusion of low-income consumers.Design/methodology/approachTwo independent but related studies were conducted using qualitative comparative analyses (QCA) research design with semi-structured interviews to compare and contrast customer experience value at two rural locations in Southern Africa. The interview transcripts were analysed using ATLAS.ti, which is a powerful operating system for analysing qualitative data.FindingsThe results indicate that non-banks in the two countries design financial services that include functional, economic, humanic, social and mechanic customer experience value dimensions.Research limitations/implicationsThe data for this study was collected from financial services customers of retailers and mobile phone network operators in only one research setting in each country. Further research could extend the comparative context for qualitative studies across similar markets. Other limitations are discussed in the paper.Originality/valueThis paper contributes to the body of knowledge by highlighting the salient and germane dimensions and components found to be important in understanding financial inclusion using customer experience value. To the best of the authors’ knowledge, this is the first study that incorporates customer experience value dimensions in understanding the financial inclusion of low-income consumers at the base of the social and economic pyramid in emerging markets.

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