A penny saved is a penny earned: How money‐view and self‐view jointly influence consumer financial behaviour

Abstract

The prior literature suggests that money offers symbolic or exchange values, thereby directly or indirectly motivating behaviours (i.e., money as a direct or an indirect behavioural incentive). Building on this distinction, the current research argues that the way consumers perceive the value of money (i.e., money‐view) affects their preferences for financial strategies in enhancing their financial positions. Specifically, our finding shows that consumers tend to prefer financial strategies that focus on financial gains (vs. losses) when they perceive money as a direct (vs. indirect) behavioural incentive (Study 1). We further show that consumers are more motivated to enhance their financial positions, that is, have a higher hypothetical savings rate (Study 2) or a higher self‐reported savings rate (Study 3), when there is a fit between their preferences for financial strategies predicted by their money‐views (e.g., direct or indirect) and by their self‐views (e.g., independent or interdependent). This research contributes to existing knowledge on the psychology of money as well as consumer financial behaviour. Practically, the results offer valuable guidance in the development of more effective personal finance management.

Predicting the antecedents of consumers' intention toward purchase of mutual funds: A hybrid PLS‐SEM‐neural network approach

“…People expect their savings to grow to beat inflation and accumulate wealth by compounding. Hence, they look for avenues that provide higher returns than bank deposits but are less risky than individual stocks (Cho et al, 2014; Hira et al, 2013; M. J. Kim et al, 2022; Murendo & Mutsonziwa, 2017; Reyers, 2019). Subjective norms also positively influence the attitude toward mutual fund investment.…”

“…Regular savers with retirement saving goals and emergency saving motives tend to opt for formal saving avenues like banks and mutual fund institutions (Cho et al, 2014;Hira et al, 2013; M. J. Kim et al, 2022;Murendo & Mutsonziwa, 2017;Reyers, 2019).…”

“…It ensures financial discipline for regular savers and helps them meet their saving objectives (Venkataramani & Kayal, 2021). Regular savers with retirement saving goals and emergency saving motives tend to opt for formal saving avenues like banks and mutual fund institutions (Cho et al, 2014; Hira et al, 2013; M. J. Kim et al, 2022; Murendo & Mutsonziwa, 2017; Reyers, 2019). Hypothesis Saving habit has a positive relation with attitude toward mutual fund investment.…”

When does the price presentation order impact choices? Dispositional and situational moderators for the price order effect

“…Third, we contribute to existing research on individual difference variables such as regulatory focus (Ahmad & Guzmán, 2021; Das et al., 2020; Higgins et al., 2020), sense of power (Lee et al, 2018; Tassiello et al., 2021), self vs. other focus (Liu et al., 2019; Lu & Xie, 2019) and construal mindset (Kim et al., 2021; Sinha & Lu, 2019; Sordi et al., 2018) by showing their moderating influence on the price order effect. Existing research on these individual difference variables show that they can influence loss aversion.…”

“…In particular, this research contributes to existing price order effect research (Bennett et al., 2003; Bitta & Monroe, 1974; Brennan, 1995; Cai & Xu, 2008; DeMoranville et al., 2015; Garbarino & Slonim, 1995; Monroe, 1990; Slonim & Garbarino, 1999; Smith & Nagle, 1995; Suk et al., 2012) by identifying specific dispositional and situational moderators for the effect, and providing additional evidence for the underlying process for the effect involving loss aversion. In addition, we also contribute to recent consumer research on moderators of loss aversion (Gal & Rucker, 2018; Higgins & Liberman, 2018; Mrkva et al., 2020), and that related to important consumer decision making‐related factors such as regulatory focus (Ahmad & Guzmán, 2021; Das et al., 2020; Higgins et al., 2020), sense of power (Lee, 2018; Tassiello et al., 2021), self vs. other focus (Liu et al., 2019; Lu & Xie, 2019) and construal mindset (Kim et al., 2021; Sinha & Lu, 2019; Sordi et al., 2018). Our research also has important managerial implications.…”