The Framing of Buying Decisions

Puto, Christopher P.

doi:10.1086/209115

Cited by 256 publications

(179 citation statements)

References 20 publications

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“…Thaler (1985), Thaler e Johnson (1990) O estudo de como os indivíduos são afetados pelo uso da informação no processo decisório antes e depois da compra do produto tem sido objeto de um crescente interesse no meio acadêmico. Estudos como os de Puto (1987), dentre outros, na área financeira, como os deLevin e Gaeth (1988 apud Maheswaran e Meyers-Levy,1990), Shiv, Edele Payne (1997), Homer e Yoon (1992) (1997) sugerem que perdas são menos sentidas por aqueles investidores que estão com boa saúde financeira. Desse modo, pessoas com boa saúde financeira, justamente, devido a este fato, seriam avessas ao risco à medida que tivessem ganhos mínimos ao investir, sendo menos influenciadas pela estruturação da mensagem e não tendendo a investir.…”

Section: Comportamentos Relacionados à Decisão De Compra De Papéis Bounclassified

Comportamentos relacionados à decisão de compra de papéis Bovespa: a influência do message framing no pequeno investidor mineiro

Silva¹,

Barbosa²,

Teixeira³

et al. 2010

R. eletr. estrat. neg.

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Section: Comportamentos Relacionados à Decisão De Compra De Papéis Bounclassified

Comportamentos relacionados à decisão de compra de papéis Bovespa: a influência do message framing no pequeno investidor mineiro

Silva¹,

Barbosa²,

Teixeira³

et al. 2010

R. eletr. estrat. neg.

View full text Add to dashboard Cite

show abstract

“…When the manager answers the last question with "no", the first question was repeated, in order to give the manager the opportunity to change the initial reference price. Whenever the manager answered the latter question with a "yes", the assessment of the reference price had been accomplished (Puto 1987). The ratio of the futures price level to the reference price was calculated by dividing the price level of the futures contract by the manager's reference price.…”

Section: Meertens 1996)mentioning

confidence: 99%

A Behavioral Approach towards Futures Contract Usage

Pennings

Leuthold

2000

SSRN Journal

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We propose a behavioral decision-making model to investigate what factors, observable as well as unobservable, owner-managers consider regarding futures contract usage. The conceptual model consists of two phases, reflecting the two-stage decision structure of manager's use of futures. In the first phase owner-managers consider whether futures are within the market choice set for the enterprise. In the second phase the owner-manager decides whether or not to initiate a futures position when confronted with a concrete choice situation. In both phases owner-manager's beliefs and perceptions play an important role. The proposed model is tested on a data set of Dutch farmers, based on computer-assisted personal interviews. Because we incorporate latent variables (e.g., perceptions and beliefs) in both phases, we propose an estimation procedure that takes the measurement error of these latent variables explicitly into account. The implications of the behavioral decision-making model for futures contract design are derived. IntroductionFutures exchanges face the challenge of introducing successful futures contracts and maintaining viable trading of existing contracts. To facilitate this product development approach, previous research has focussed on factors that influence the viability of futures contracts. Two approaches can be distinguished: the commodity characteristics approach and the contract design approach (Black 1986). The commodity characteristics approach defines feasible commodities for futures trading based on an extensive list of required commodity attributes, and, in so doing, focuses on the technical aspects of the underlying commodity. The contract design approach views the contract specification as the critical factor determining the viability of a futures market, and hence focuses on the technical aspects of the contract. Although both approaches provide insight in the conditions that might m ake a futures contract successful, they do not focus on a critical aspect: the decision-making process that leads to the customers' ultimate choice for using futures contracts or not. That is, both approaches provide necessary conditions for having futures trade, but these conditions are not necessarily sufficient. Ultimately, the success of a futures market is determined by the number of customers who decide to trade futures and the number of customers' trades.In order to maximize success (trading volume) and to ensure successful product introductions, futures exchanges face the challenge to develop products that will be

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“…• Using particular heuristics to influence subordinates' commitment to a proposal (Schwenk, 1986) • Attempting to influence customers (Le., consumers and corporate buyers) by appealing to framing-effects, reference-prices and other biases (Thaler, 1985;Puto, 1987;Urbany et al~ 1988) • ~10delling aggregate-level equilibrium market processes (Russell and Thaler, 1985;Kahneman, et al, 1986) • Explaining investors' preferences for cash dividends over capital gains. with implications for di"idend policy (Sheffrin and Statman, 1984) • Vie"ving negotiations as strategic interactions between faulty cognitive systems, with implications for bargaining tactics (Neale and Bazerman, 1985) • Using framing effects to influence sequential investment decision-making processes (\Vhyte, 1986).…”

Section: Alan E Singer • Steven Lysonskl Ming Singermentioning

confidence: 99%

“…In the light of these and similar concepts, like framing and transactionutIlIty, marketing scientists have been exploring ways of influencing the s~ct~re of customers' hypothetical mental accounts, for a given transactIon, In order to influence behavior and increase the seller's profits (e.g., Puto, 1987;Urbany, 1988).…”

Section: Mental Accountingmentioning

confidence: 99%

“…Finally. Puto (1987) has proposed that customers could be lured to a retail outlet through (sold-out or apparent) bargain offers so that a decision to buy nothing would be framed as a "loss" (a topical mental account with a debit balance) and then, according to the new theories, risky purchases would become more attractive to the customer. l…”

Section: Transaction Utilitymentioning

confidence: 99%

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