Spending on the Fly: Mental Budgets, Promotions, and Spending Behavior

AbstractIn designing the city of the future, city managers and urban planners are driven by specific citizens’ behaviors. In fact, economic and financial behaviors, and specifically, which goods and services citizens purchase and how they allocate their spending, are playing a central role in planning targeted services. In this context, cashless payments provide an invaluable data source to identify such spending behaviors. In this work, we propose a methodology to extract the consumption behaviors of a large sample of customers through credit card transaction data. The main outcome of the methodology is a concise representation of the economic behavior of people residing in a city, the so-called city consumption profile. We inferred the city consumption profile from a network-based representation of the similarity among the customers in terms of purchase allocation; on top of which we applied a community detection algorithm to identify the representative consumption profiles. By applying the above methodology to a set of credit card transactions of an Italian financial group, we showed that cities, even geographically close, exhibit different profiles which makes them unique. Specifically, usage patterns focused on a single type of good/service—mono-categorical consumption profile—are the main factors leading to the differences in the city profiles. Our analysis also showed that there is a group of consumption profiles common to all cities, made up by purchases of primary goods/services, such as food or clothing. In general, the city consumption profile represents a tool for understanding the economic behaviors of the citizens and for comparing different cities. Moreover, city planners and managers may use it in the outline of city services tailored to the citizens’ needs.

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Resisting That Triple-Chocolate Cake: Mental Budgets and Self-Control

Journal of Consumer Research ◽

10.1086/649650 ◽

2010 ◽

Vol 37 (1) ◽

pp. 68-79 ◽

Cited By ~ 32

Author(s):

Parthasarathy Krishnamurthy ◽

Sonja Prokopec

Keyword(s):

Self Control ◽

Chocolate Cake ◽

Mental Budgets

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Political institutions and government spending behavior: theory and evidence from Iran

International Tax and Public Finance ◽

10.1007/s10797-015-9378-8 ◽

2015 ◽

Vol 23 (3) ◽

pp. 522-549 ◽

Cited By ~ 15

Author(s):

Sajjad F. Dizaji ◽

Mohammad Reza Farzanegan ◽

Alireza Naghavi

Keyword(s):

Political Institutions ◽

Government Spending ◽

Behavior Theory ◽

Spending Behavior

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EXPRESS: Households under Economic Change: How Micro- and Macroeconomic Conditions Shape Grocery Shopping Behavior

Journal of Marketing ◽

10.1177/00222429211036882 ◽

2021 ◽

pp. 002224292110368

Author(s):

Thomas P. Scholdra ◽

Julian R. K. Wichmann ◽

Maik Eisenbeiss ◽

Werner J. Reinartz

Keyword(s):

Business Cycle ◽

Shopping Behavior ◽

Economic Conditions ◽

Grocery Shopping ◽

National Brands ◽

Macroeconomic Conditions ◽

Spending Behavior ◽

Shopping Basket ◽

The Business Cycle ◽

Structural Shifts

Economic conditions may significantly affect households' shopping behavior and, by extension, retailers' and manufacturers' firm performance. By explicitly distinguishing between two basic types of economic conditions—micro conditions in terms of households' personal income and macro conditions in terms of the business cycle—this study analyzes how households adjust their grocery shopping behavior. The authors observe more than 5,000 households over eight years and analyze shopping outcomes in terms of what, where, and how much they shop and spend. Results show that micro and macro conditions substantially influence shopping outcomes, but in very different ways. Microeconomic changes lead households to adjust primarily their overall purchase volume—that is, after losing income, households buy fewer products and spend less in total. In contrast, macroeconomic changes cause pronounced structural shifts in households' shopping basket allocation and spending behavior. Specifically, during contractions, households shift purchases toward private labels while also buying and consequently spending more than during expansions. During expansions, however, households increasingly purchase national brands but keep their total spending constant. The authors discuss psychological and sociological mechanisms that can explain the differential effects of micro and macro conditions on shopping behavior and develop important diagnostic and normative implications for retailers and manufacturers.

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The Role of Financial Behavior in Mediating the Influence of Socioeconomic Characteristic and Neuroticism Personality Traits on Financial Satisfaction

11th GLOBAL CONFERENCE ON BUSINESS AND SOCIAL SCIENCES - Global Conference on Business and Social Sciences Proceeding ◽

10.35609/gcbssproceeding.2021.12(44) ◽

2021 ◽

Vol 12 (1) ◽

pp. 44-44

Author(s):

Khaira Amalia Fachrudin

Keyword(s):

Personality Traits ◽

Structural Equation ◽

Financial Behavior ◽

Primary Data ◽

Equation Modeling ◽

Financial Satisfaction ◽

Investment Behavior ◽

Socioeconomic Characteristic ◽

Spending Behavior ◽

Debt Behavior

The inherent socioeconomic characteristics and personality traits of individuals can have direct effects on their financial satisfaction. There has been no research that examines the effects of these two factors on financial satisfaction with financial behavior acting as the mediating variable even though it is very important to know whether individuals with certain characteristics and personality traits are able to increase their financial satisfaction by improving their financial behavior. 2. Methods This research involved 600 respondents in Medan, Indonesia. The primary data were obtained from the questionnaire. Data analyses were performed by using the partial least squares structural equation modeling (PLS-SEM) method. 3. Results and findings The test results show that at 5% of alpha, the financial behavior, which consists of investment behavior, debt behavior, and spending behavior, is able to mediate the effects of gender, age, level of education, income, and neuroticism traits on financial satisfaction. In addition, it is also found that the higher the individuals' scores on neuroticism are, the worse their investment, debt, and spending behaviors will be; however, their herding behavior and financial dissatisfaction increase. Moreover, these people are also not financially well-off. Keywords: Debt behavior, financial satisfaction, investment behavior, neuroticism personality traits, spending behavior.

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