scholarly journals INFORMATION SEARCH BEHAVIOR AND TAX CONSULTANTS’ RECOMMENDATION: EXPERIMENTAL EXAMINATION ON THE ROLE OF SOCIAL NORMS

2020 ◽  
Vol 21 (1) ◽  
pp. 115-135
Author(s):  
Fauzan Misra ◽  
Slamet Sugiri ◽  
Eko Suwardi ◽  
Ertambang Nahartyo
Keyword(s):  
Information Search ◽  
Social Norm ◽  
Confirmation Bias ◽  
Search Behavior ◽  
Tax Compliance ◽  
Client Preference ◽  
Tax Professionals ◽  
Information Search Behavior ◽  
Confirmatory Behavior ◽  
The Way

This study examines the influence of client preference with respect to information search behavior and subsequent tax recommendation. Prior studies have identified that tax consultants exhibit confirmation bias in their information search processes, which is explained by the theory of motivated reasoning (Kunda, 1990). However, that theory does not take into consideration responses of tax consultant that are attributable to the way clients present their preferences. This study fills the gap by proposing a social norm activation model which can help to foster a better understanding of the nature of the confirmatory behavior. To accomplish this purpose, study participants role-played as advisors on a tax compliance task. The experiment used aweb-based instrument that involved 82 tax professionals. Results showed that tax consultants engaged inlower confirmation bias when they received an explicitly preference statement from their client than those who received an implicit statement. Furthermore, the former tax consultants recommended a more conservative tax position than the latter. These findings underscore the importance of social norm in a professional tax work environment. As a practical contribution, these findings suggest that the beliefs and norms of tax professionals influence the way they do their work.

scholarly journals ACCOUNTABILITY PRESSURE AS DEBIASER FOR CONFIRMATION BIAS IN INFORMATION SEARCH AND TAX CONSULTANT’S RECOMMENDATIONS

2019 ◽  
Vol 34 (1) ◽  
pp. 80 ◽  
Author(s):  
Fauzan - Misra
Keyword(s):  
Information Search ◽  
Research Method ◽  
Experimental Approach ◽  
Confirmation Bias ◽  
Search Behavior ◽  
Simple Effect ◽  
Tax Professionals ◽  
Search Processes ◽  
Mitigating Factors ◽  
Information Search Behavior

Introduction: This study examines the influence of accountability pressure toward information search behavior and the subsequent tax recommendation.  Background Problem: Prior research has shown that tax consultants are subject to confirmation bias during their information search when providing recommendations to their clients. Nevertheless, less attention has been given to identifying boundary condition or mitigating factors. This study proposes accountability pressure to mitigate such bias. Novelty: This study broadens the understanding of the effect of different accountability pressures on an individual’s effort and judgement making. Research Method: The research was conducted by an experimental approach using a 1x2 between-subjects design using an Internet-based instrument. Accountability pressure is manipulated into 2 levels (strong or weak). The experiment involved 82 tax professionals. Findings: The results show that accountability pressures influence the depth of the consultant information search. That is, a tax consultant those faced a high accountability pressure performed a deep search, while those who faced a weak accountability pressure conducted a shallow search. Then, a deep search leads to more conservative recommendations, while a shallow search leads to an aggressive recommendation. Furthermore, the results of interaction and simple effect tests show that the information search depth can mitigate confirmation bias occurred during information search processes. Conclusion: These findings imply that accountability within the organization needs to get more attention from tax consultants. While any prior research found that confirmation bias was proofed to have pervasive character and hard to be eliminated,  this study pointed out that the accountability pressure could mitigate such bias.

The Interactive Effect of Time Pressure and Client Preference on Tax Professionals' Information Search Emphasis, Judgments, and Recommendations

2021 ◽  
Vol 43 (2) ◽  
pp. 87-105
Author(s):  
Robert A. Ewing ◽  
Brian C. Spilker
Keyword(s):  
Information Search ◽  
Time Pressure ◽  
Interactive Effect ◽  
Confirmation Bias ◽  
Decision Bias ◽  
Client Preference ◽  
Tax Professionals ◽  
Evidential Support ◽  
Decision Making Processes ◽  
Biasing Effects

ABSTRACT Tax professionals commonly search large databases of information to identify tax authority necessary to provide compliance and planning advice to clients. Prior research indicates tax professionals' information search processes are subject to confirmation bias in the direction of client preferences and that this bias can lead professionals to make overly aggressive recommendations. However, very little is known about how time pressure may affect tax professionals' judgment and decision-making processes. This study contributes to practice and to the time pressure and decision bias literatures by providing theory and evidence that increasing time pressure leads to confirmation bias during tax information search and that time pressure enhanced confirmation bias affects recommendations through professionals' assessments of the evidential support for the client-preferred position. With an understanding of how time pressure can influence confirmation bias in information search, professionals and their firms can take steps to manage time pressure and its potential biasing effects.

scholarly journals A Study on Customer Satisfaction across Information Search Behavior Typology

2008 ◽  
Vol 10 (1) ◽  
pp. 25
Author(s):  
Wahyuningsih Wahyuningsih ◽  
Johnny Tanamal
Keyword(s):  
Customer Satisfaction ◽  
Information Search ◽  
Search Behavior ◽  
Consumer Search ◽  
Future Research ◽  
Research Directions ◽  
Level Of Satisfaction ◽  
Future Research Directions ◽  
Information Search Behavior ◽  
Search For Information

This study investigates customer satisfaction based on a typology of consumer search behavior. The findings demonstrate that the type of consumer as defined by whether and how they search for information (passive, rational-active, and relational-dependent) has different level of satisfaction. Rational-active and relational-dependent consumers are found to be the dominant consumer types who actively search for information before purchasing a product and thus perceive a higher level of satisfaction than do passive consumers. The identification of satisfaction within each type of consumer provides a reason for customers to repurchase the same product, or recommend it to other people. As a result, companies will be able to achieve an increase in profitability. Recommendations for companies and future research directions are presented.

scholarly journals Consumer Information Search Behavior for Experiential and Material Purchases

2014 ◽  
Vol 6 (3) ◽  
pp. 194-201 ◽  
Author(s):  
Asli Elif Aydin
Keyword(s):  
Direct Observation ◽  
Information Search ◽  
Experimental Studies ◽  
Search Behavior ◽  
Consumer Information ◽  
Sources Of Information ◽  
Different Types ◽  
Material Purchases ◽  
Information Search Behavior ◽  
Consumer Information Search

The objective of this study is to determine whether sources of information consulted and the extent of information search differ between experiential and material purchases. For this purpose two experimental studies were conducted. It is demonstrated that moving along the experiential-material purchase continuum; consumers’ reliance on personal sources, especially personal independent sources intensifies towards experiential purchase pole and decreases towards material purchase pole. In addition, for material purchases; direct observation is preferred more compared to personal sources of information. Finally, it is revealed that the total amount of search is greater for experiential purchases than material purchases. The results suggest that experiential and material purchases require different types of search conduct due to their distinct natures.

The Effects of Decision Aid Design on the Information Search Strategies and Confirmation Bias of Tax Professionals

2008 ◽  
Vol 20 (1) ◽  
pp. 131-145 ◽  
Author(s):  
Patrick R. Wheeler ◽  
Vairam Arunachalam
Keyword(s):  
Information Search ◽  
Decision Aid ◽  
Confirmation Bias ◽  
Search Strategies ◽  
Design Features ◽  
Tax Professionals ◽  
Perceived Importance ◽  
Factor Evaluation ◽  
Tax Research

We report the results of a study involving 142 tax professionals designed to investigate the effects of decision aid design on information search (i.e., tax research) and confirmation bias. Results indicate that the participants exhibited confirmation bias when conducting tax research for clients. That is, participants showed a tendency to preferentially select information in support of their earlier recommendations to the client, even when the recommendation disagreed with the client's subsequent tax position. Results also indicate that while some decision aid features can reduce confirmation bias during tax research, others do not and may even enhance this bias. Specifically, a justification requirement decision aid reduced confirmation bias in terms of both the number and perceived importance of selected confirmatory cases, whereas a factor evaluation checklist decision aid either increased the bias (i.e., increased the perceived importance of cases) or had no effect on the bias (i.e., no effect on the number of cases). We suggest several decision aid design features for reducing confirmation bias in tax research.

Tax Professional Decision Biases: The Effects of Initial Beliefs and Client Preference

2004 ◽  
Vol 26 (s-1) ◽  
pp. 1-29 ◽  
Author(s):  
Jennifer B. Kahle ◽  
Richard A. White
Keyword(s):  
Repeated Measures ◽  
Confirmation Bias ◽  
Substantial Effect ◽  
Repeated Measures Design ◽  
Initial Belief ◽  
Client Preference ◽  
Tax Professionals ◽  
Psychology Literature ◽  
Disconfirming Evidence ◽  
Professional Judgments

While many studies have inferred confirmation bias in a tax decision-making context, the tax professional's initial belief has usually been the same as the client-preferred position. The objective of this study was to disentangle the effects of evidence direction (confirming or disconfirming evidence) and client preference on tax professionals' belief revisions following the examination of additional evidence. In a repeated-measures design, participants recorded an initial belief and a revised belief in response to two independent fact scenarios. Consistent with research related to auditors, but inconsistent with the psychology literature, the results of this study indicate that tax professionals react in a manner opposite to the predictions of confirmation bias, particularly when the evidence reviewed is counter to the client's wishes. Further examination reveals that the client preference has a more substantial effect on tax professional judgments when the evidence being reviewed confirms the professionals' initial beliefs than when it disconfirms their initial beliefs.

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