Gamble or play it safe? - The effects of self-view on consumers goals and choices
What will retirement look like for you? Will you buy that 40-foot sailboat and sail between your summer home in Maine and your winter home in the Caribbean? Or will you plan for three daughters weddings, older parents, and other unexpected but unavoidable costs? One scenario pits you as being solidly independent; the other looks pretty interdependent. How consumers make such choices and set goals is the focus of an article in the September 2005 issue of the Journal of Consumer Research.
"Broadly speaking, our results suggest that consumers risk preferences are contingent on situational factors. This is in contrast to a great deal of previous research conceptualizing risk preferences as an individual difference variable," assert Rebecca Hamilton and Gabriel Biehal (University of Maryland).
"We show that encouraging consumers to think about themselves as independent or interdependent, making either promotion or prevention goals salient, has a systematic effect on inferred risk preferences. Interdependent self-view consumers, who are more interested in avoiding losses than in achieving gains, choose less risky alternatives than independent self-view consumers."
The article is ground-breaking in that it reveals how the decisions that investors make now are emblematic of a history of choices they have made traditionally--findings which have important implications for research related to consumer risk.
"Consumers often make a series of choices in the same domain, each of which can be viewed as continuing an existing pattern of choices (i.e., maintaining the status quo), or starting on a new course. For example, an investor might consider adding money to an existing mutual fund, thereby choosing the status quo alternative, or purchasing a new mutual fund that is more or less risky than the status quo," conclude the researchers.
Carrie Olivia Adams | EurekAlert!
The most recent press releases about innovation >>>
Die letzten 5 Focus-News des innovations-reports im Überblick:
An international team of scientists has proposed a new multi-disciplinary approach in which an array of new technologies will allow us to map biodiversity and the risks that wildlife is facing at the scale of whole landscapes. The findings are published in Nature Ecology and Evolution. This international research is led by the Kunming Institute of Zoology from China, University of East Anglia, University of Leicester and the Leibniz Institute for Zoo and Wildlife Research.
Using a combination of satellite and ground data, the team proposes that it is now possible to map biodiversity with an accuracy that has not been previously...
Heatwaves in the Arctic, longer periods of vegetation in Europe, severe floods in West Africa – starting in 2021, scientists want to explore the emissions of the greenhouse gas methane with the German-French satellite MERLIN. This is made possible by a new robust laser system of the Fraunhofer Institute for Laser Technology ILT in Aachen, which achieves unprecedented measurement accuracy.
Methane is primarily the result of the decomposition of organic matter. The gas has a 25 times greater warming potential than carbon dioxide, but is not as...
Hydrogen is regarded as the energy source of the future: It is produced with solar power and can be used to generate heat and electricity in fuel cells. Empa researchers have now succeeded in decoding the movement of hydrogen ions in crystals – a key step towards more efficient energy conversion in the hydrogen industry of tomorrow.
As charge carriers, electrons and ions play the leading role in electrochemical energy storage devices and converters such as batteries and fuel cells. Proton...
Scientists from the Excellence Cluster Universe at the Ludwig-Maximilians-Universität Munich have establised "Cosmowebportal", a unique data centre for cosmological simulations located at the Leibniz Supercomputing Centre (LRZ) of the Bavarian Academy of Sciences. The complete results of a series of large hydrodynamical cosmological simulations are available, with data volumes typically exceeding several hundred terabytes. Scientists worldwide can interactively explore these complex simulations via a web interface and directly access the results.
With current telescopes, scientists can observe our Universe’s galaxies and galaxy clusters and their distribution along an invisible cosmic web. From the...
Temperature measurements possible even on the smallest scale / Molecular ruby for use in material sciences, biology, and medicine
Chemists at Johannes Gutenberg University Mainz (JGU) in cooperation with researchers of the German Federal Institute for Materials Research and Testing (BAM)...