Susceptibility to and impact of interpersonal influence in an investment context

Hoffmann, Arvid O. I.; Broekhuizen, Thijs

doi:10.1007/s11747-008-0128-7

Cited by 80 publications

(59 citation statements)

References 77 publications

(112 reference statements)

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“…First, they add to the nascent literature on how consumers make financial decisions (e.g., Goldstein et al, 2008;Lynch, 2011;Morrin et al, 2012;Raghubir & Das, 2010;Townsend & Shu, 2010) by showing how the different aspects of an individual's goal system affect his or her investment choices. In particular, the results extend emerging research that suggests that consumers may have non-financial investment motivations (Aspara & Tikkanen, 2010;Fama & French, 2007;Hoffmann & Broekhuizen, 2009;Statman, 2004;Townsend & Shu, 2010;Morse & Shive, 2011).…”

Section: Contributions To Researchsupporting

confidence: 78%

“…Furthermore, while recent studies suggest that consumers may have non-financial investment motivations (Aspara & Tikkanen, 2010;Fama & French, 2007;Hoffmann & Broekhuizen, 2009;Morse & Shive, 2011;Statman, 2004) Strahilevitz et al, 2011). Finally, it is possible that in Experiment 1, high (low) focal goal progress might have engendered a good (bad) mood.…”

Section: Discussionmentioning

confidence: 94%

“…The normative status of this focal goal stems from finance theory (Aspara, 2009;Clark-Murphy & Soutar, 2004), as well as common investment advice (Campbell, 2006). Nevertheless, past research also suggests that individuals' investment choices sometimes deviate from the normative principle of maximizing risk-adjusted financial returns.Individual-level propensities for self-expression and social signaling, for example, may influence consumers' investment choices (e.g., Aspara & Tikkanen, 2010;Fama & French, 2007;Hoffmann & Broekhuizen, 2009;Morse & Shive, 2011;Statman, 2004 The present research adds to this growing body of evidence regarding how consumers'decisions to buy financial products may deviate from the prescribed norm of maximizing riskadjusted financial returns, in several ways. First, while previous research suggests that investment choices may be partially influenced by self-expressive motivations, it remains unclear whether and when consumers are actually willing to trade off the focal goal of maximizing financial returns for the opportunity to satisfy such alternative background goals.…”

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confidence: 94%

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Focal versus background goals in consumer financial decision-making

Aspara

Chakravarti

Hoffmann

2015

European Journal of Marketing

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Purpose – This study aims to examine the interplay between focal and background goals in consumer financial decision-making and identify conditions that lead individuals to trade-off financial returns for background goals. Design/methodology/approach – The current research reviews the relevant literature on consumer financial decision-making and goal systems theory to develop a set of hypotheses that is tested using three experiments. Findings – The experiments show that individuals who have been subtly primed with self-expressive background goals, or experienced progress toward the focal goal of financial returns, accept lower financial returns for the opportunity to invest in stocks that allow for increased self-expression. Further, while subtly primed background goals exert a non-normative influence on investment decisions, explicit cues about an investment’s background goal-instrumentality create a backlash effect, and decrease individuals’ willingness to trade-off financial returns. Research limitations/implications – Future research could confirm the robustness of the findings of the present research by using different priming tasks and alternative ways of making the background goal explicit to individuals. Practical implications – To achieve greater attraction among individual investors, it helps to frame a financial product or stock in communications materials in a way that sends subtle signals with which investors can identify. Such signals could include stressing the product/company’s home country (addressing individuals’ patriotism) or a particular product domain (addressing individual investors’ desire for interesting/exciting current/future products). Originality/value – While previous research suggests that investment choices may be influenced by self-expressive motivations, to date, it remains unclear whether and when individual investors are actually willing to trade-off the focal goal of maximizing financial returns for the opportunity to satisfy alternative background goals.

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Section: Contributions To Researchsupporting

confidence: 78%

Section: Discussionmentioning

confidence: 94%

mentioning

confidence: 94%

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Focal versus background goals in consumer financial decision-making

Aspara

Chakravarti

Hoffmann

2015

European Journal of Marketing

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“…People with low self-esteem are likely to be affected by group pressures. 58 Postmes et al 59 64 For the current research the susceptibility to interpersonal infl uence scale developed by Bearden et al 45 was used. The purpose was to examine the effect of normative and informative infl uence on Indian consumers ' fashion clothing involvement, and to understand if normative infl uence is more important in determining consumers ' involvement with fashion wear in collectivist cultures.…”

Section: Consumers ' Susceptibility To Interpersonal Infl Uencementioning

confidence: 99%

Influence of consumers’ susceptibility to interpersonal influence, collective self-esteem and age on fashion clothing involvement: A study on Indian consumers

Khare

Mishra²,

Parveen³

et al. 2011

J Target Meas Anal Mark

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Arpita Khareis a faculty in Indian Institute of Management -Rohtak, Haryana. She has an MBA degree in Marketing and DPhil in International Management from University of Allahabad. With over 12 years of academic and research experience, her research interests span over consumer behaviour, retailing, services marketing and supply chain management. She has authored quite a few research papers in international and national journals. Ankita Mishrais an Assistant Professor in LDC Institute of Technical Studies, Allahabad, India. She has an MBA degree in Financial Management from DVA University, Indore, India. Her research interests span over culture, fi nancial institutions and consumer behaviour. Ceeba Parveenis an Assistant Professor in LDC Institute of Technical Studies, Allahabad, India. She has an MBA degree in Human Resource from Lucknow University India. Her research interests span over culture, motivation and relationship management. Rajlaxmi Srivastavais a research scholar in MNNIT, Allahabad. She has an MBA degree in Human Resource Management. She has several papers on stress management and organizational culture to her credit. She has participated in many International Conferences and workshops.ABSTRACT India presents a large market for global fashion brands. The purpose of the research was to examine the infl uence of consumers ' susceptibility to interpersonal infl uence (CSII), collective self-esteem (CSE) and demographics on Indian consumers ' fashion clothing involvement. The CSE and demographics were considered as moderators on CSII. A self-administered questionnaire was used for data collection ( n = 773). The results indicate that from CSII scale, only normative infl uences affect Indian consumers ' fashion clothing involvement. Age, self-identity and marital status moderate normative infl uence and affect fashion clothing involvement.

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“…In addition, consumers' investment preferences go beyond risk and return, including, for instance, entertainment value and status considerations (Dorn & Sengmueller, 2009;Statman, 2004;Hamilton & Biehal, 2005;Zhou & Pham, 2004). Hence, to increase our understanding of consumers' investment decisions, it is necessary to integrate insights from both marketing and finance (Goldstein et al, 2008) and consider psychological and sociological motivations apart from economic rents (Hoffmann & Broekhuizen, 2009;Statman, 1999). This article extends the growing literature on the marketing-finance interface and investigates the psychological and sociological personality traits that form the roots of consumers' predispositions to embrace new investment products.…”

Section: Introductionmentioning

confidence: 99%