Policy makers have embraced financial education as a necessary antidote to the increasing complexity of consumers' financial decisions over the last generation. We conduct a meta-analysis of the relationship of financial literacy and of financial education to financial behaviors in 168 papers covering 201 prior studies. We find that interventions to improve financial literacy explain only 0.1% of the variance in financial behaviors studied, with weaker effects in low-income samples. Like other education, financial education decays over time; even large interventions with many hours of instruction have negligible effects on behavior 20 months or more from the time of intervention. Correlational studies that measure financial literacy find stronger associations with financial behaviors. We conduct three empirical studies, and we find that the partial effects of financial literacy diminish dramatically when one controls for psychological traits that have been omitted in prior research or when one uses an instrument for financial literacy to control for omitted variables. Financial education as studied to date has serious limitations that have been masked by the apparently larger effects in correlational studies. We envisage a reduced role for financial education that is not elaborated or acted upon soon afterward. We suggest a real but narrower role for “just-in-time” financial education tied to specific behaviors it intends to help. We conclude with a discussion of the characteristics of behaviors that might affect the policy maker's mix of financial education, choice architecture, and regulation as tools to help consumer financial behavior. This paper was accepted by Uri Gneezy, behavioral economics.

Though perceived financial well-being is viewed as an important topic of consumer research, the literature contains no accepted definition of this construct. Further, there has been little systematic examination of how perceived financial well-being may affect overall well-being. Using consumer financial narratives, several large-scale surveys, and two experiments, we conceptualize perceived financial well-being as two related but separate constructs: 1) stress related to the management of money today (current money management stress), and 2) a sense of security in one’s financial future (expected future financial security). We develop and validate measures of these constructs (web appendix A) and then demonstrate their relationship to overall well-being, controlling for other life domains and objective measures of the financial domain. Our findings demonstrate that perceived financial well-being is a key predictor of overall well-being and comparable in magnitude to the combined effect of other life domains (job satisfaction, physical health assessment, and relationship support satisfaction). Further, the relative importance of current money management stress to overall well-being varies by income groups and due to the differing antecedents of current money management stress and expected future financial security. Implications for financial well-being and education efforts are offered.

As consumers' political opinions become more divided and more central to their identities, it is important to understand how political ideology shapes consumers' attempts to differentiate from others in the marketplace. Seven studies demonstrate that political ideology systematically influences consumers' preferences for differentiation. Conservative ideology leads consumers to differentiate from others vertically in the social hierarchy through products that signal that they are better than others, and liberal ideology leads consumers to differentiate from others horizontally in the social hierarchy through products that signal that they are unique from others. This happens because conservatism endorses, and liberalism opposes, the belief that the dominance-based hierarchical social structure is a legitimate mechanism to distinguish individual qualities. The effect is robust across measured and manipulated ideology, hypothetical and real product choices, and online searches in conservative and liberal US states. Manipulating consumers' differentiation goals and perceptions of hierarchy legitimacy mitigates the effect. The findings advance existing research on political ideology, social hierarchy, and consumer divergence, and they contribute to marketing practice.

In this research, we document and explain a counterintuitive effect of political ideology on variety‐seeking. Although political conservatives have a higher desire for control, which exerts a negative effect on variety‐seeking, they also have a stronger motivation to follow social norms, which exerts a positive effect on variety‐seeking. Three studies demonstrate that conservatism is positively related to variety‐seeking due to social normative concerns and rule out an alternative explanation of heightened self‐expressive motives among conservatives. This research provides preliminary evidence of how political ideology may explain differences in product choices.

No abstract

The purpose of this paper is to investigate the antecedents and consequences of consumer trust after complaint handling episodes about services. A cross-sectional study was carried out with complainers of banks and airline companies. The respondents were approached at an International Airport in Brazil. Structural Equation Modeling was used to test the hypotheses developed. The building of consumer trust was sensitive to perceptions of justice regarding the way complaints were handled by the company. More specifically, the perception of interactional fairness strongly impacted consumer trust in the employees which, in turn, revealed a high impact on trust in the company. Insofar as satisfaction with complaint handling does not mediate the relationship between the dimensions of fairness and trust, following a conflict it loses part of its importance. Finally, both repurchase intention and word-of-mouth communication were influenced by trust in the company, satisfaction with complaint handling and perceived value. The company should attentively observe the interactional aspect in terms of developing relationships with customers. Appropriate complaint handling and the consequent trust created between the parties is an efficient form of developing and maintaining solid relationships with customers.

This article examines the motivations of liberals and conservatives to boycott and buycott. Nine studies demonstrate that although both liberals and conservatives engage in consumer political actions, they do so for different reasons influenced by their unique moral concerns: Liberals engage in boycotts and buycotts that are associated with the protection of harm and fairness moral values (individualizing moral values), whereas conservatives engage in boycotts and buycotts that are associated with the protection of authority, loyalty, and purity moral values (binding moral values). In addition, the individualizing moral values lead to a generally more positive attitude toward boycotts, which explains why liberals are more likely to boycott and buycott. Liberals’ greater concern for the suffering of others and unfair treatment makes them more likely to engage in consumer political actions. Conservatives, in turn, engage in consumer political actions in relatively rarer cases in which their binding moral values are affected by corporate activity.

RESUMOO objetivo central deste trabalho é examinar a recuperação de serviços sob uma perspectiva estratégica, como ferramenta de relacionamento. Para tanto, foi proposto e testado um modelo teórico, com foco nos inter-relacionamentos entre avaliações específi cas do processo de reclamação, confi ança, custo de mudança, valor e lealdade do consumidor. Os resultados indicam que a formação de confi ança e lealdade do consumidor é afetada pela forma como as reclamações são resolvidas. As percepções de justiça afetaram a satisfação com o gerenciamento da reclamação. A confi ança do consumidor foi fortemente infl uenciada pela satisfação pós-reclamação. Por fi m, tanto a intenção de recompra como a comunicação boca-a-boca foram infl uenciadas por confi ança, satisfação e valor percebido. Os custos de mudança não moderaram as relações entre satisfação, confi ança e lealdade, e demonstraram ter baixa infl uência nas intenções de recompra, indicando que a criação de mecanismos que difi cultem a saída do cliente não é sufi ciente para mantê-lo, e que e um gerenciamento adequado da reclamação pode ser uma ferramenta efi caz para desenvolver relacionamentos de longo prazo. Cristiane Pizzutti dos Santos UFRGS Daniel Von der Heyde Fernandes UFRGS ABSTRACT The main goal of this paper is to examine service recovery under a strategic perspective, as a relationship tool. A theoretical model has been proposed and tested, with focus on interrelationships among specifi c evaluations of complaint process