Consumer behavior is often driven by the extent to which consumers feel confident regarding their decisions, which frequently hinge, especially in high‐stakes situations, on their information search. This article examines a multidimensional self‐confidence concept to explore how consumer self‐confidence influences information search. Findings of a mail survey document that high‐confidence consumers engage in more intensive search activities and that demographic patterns shape consumer self‐confidence scores. The findings empirically support a multidimensional measurement of self‐confidence to predict search behavior and suggest avenues to enhance the self‐confidence needed to produce positive marketplace experiences.
This study investigates the role of financial socialization for investment orientation and household net worth. Combining consumer socialization literature with findings in the behavioural finance literature, survey data were analysed to (1) investigate the relationship among household net worth, financial socialization, indicators of investment orientation and socio-demographic investor characteristics; (2) examine the influence of sociodemographic investor characteristics and financial socialization on indicators of investment orientation; and (3) test whether financial socialization affects household wealth above and beyond socio-demographic and investment orientation factors. Parents emerged as a relevant socialization agent of investors, influencing investment regularity and household net worth above and beyond other factors. This result extends earlier findings about parents' role for a person's financial management and savings behaviour to the investment context. Based on our findings, educators may want to involve parents in their efforts. They may want to emphasize the importance of starting investing regularly at an early age and of continuing to increase involvement in investing over the years. Financial planners and financial counsellors may consider emphasizing these two practices for their clients and involve children of their clients when and where appropriate.
Literature reviewSocialization is the process by which individuals acquire knowledge, skills and values to participate as members of a group and in society (McNeal, 1987;Moschis, 1987). It begins in childhood and continues, to some extent, throughout life. Applied to market behaviour, consumer socialization has been defined as the process 'by which young people acquire skills, knowledge and attitudes relevant to their functioning in the marketplace' (Ward, 1974, p. 2). Financial socialization, according to Danes (1993), is 'much more inclusive than learning to effectively function in the marketplace.
This paper presents the results of an investigation into the determinants of retirement planning behaviour and differences among three age groups: 21‐ to 39‐year‐olds, 40‐ to 59‐year‐olds and those aged 60 years and older. A national survey of 911 individuals from households with incomes of $75 000 or greater was conducted in the US. The significance of socio‐demographic variables, the ability to recover from loss, behavioural tendencies and perceived or actual personal control were investigated; together with their role in the prediction of maximization of retirement contributions and ownership in the personal individual retirement account (IRA) or Keogh accounts. The results identified several significant variables in the prediction of ownership in a personal IRA or Keogh, including age, sources of financial information, being an early investor and investor activity. The results also identified several significant variables in the prediction of the maximization of retirement contributions, including employment, income, savings activity, ex ante research, review of investment performance, early investor, investor activity, such as planning for financial future, setting up automatic deposits and reviewing financial information in the mail.
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