Recent experience and financial decision making: does intensity in chronic regulatory focus make a difference?

Soo Yeong Ewe, Christina Kwai Choi Lee, Motoki Watabe, Lin Yang

Research output: Chapter in Book/Report/Conference proceedingConference PaperOtherpeer-review

Abstract

Outcome of prior investment plays an important role in subsequent similar financial decision making, subject to intensity of an individual’s chronic regulatory focus. This study proposes that people may behave differently after experiencing the same outcome due to the moderating effect of the intensity of chronic regulatory focus. Using an experimental approach, with 110 adults, this study demonstrates that individuals tend to be more riskseeking in subsequent similar financial decision making upon a success, as compared to a failure, in their prior investment. The intensity of chronic regulatory focus moderates the
effect of a prior investment success, specifically, individuals with higher intensity of chronic regulatory focus tend to be more risk-seeking than those with lower intensity of chronic regulatory focus in the success condition. In a failure condition, most individuals tend to be more risk averse after a big failure in previous investment.
Original languageEnglish
Title of host publicationMarketing in a Post-Disciplinary Era - ANZMAC 2016
EditorsDavid Fortin, Lucie K. Ozanne
Place of PublicationChristchurch New Zealand
PublisherUniversity of Canterbury
Pages1-7
Number of pages7
ISBN (Print)9780473376604
Publication statusPublished - 2016
EventAustralian and New Zealand Marketing Academy Conference 2016 - University of Canterbury, Christchurch, New Zealand
Duration: 5 Dec 20167 Dec 2016
http://www.mang.canterbury.ac.nz/ANZMAC/ANZMAC%20proceedings%202016.pdf
http://www.anzmac.org/conferences/view/2016-ANZMAC-Marketing-in-a-Post-Disciplinary-Era

Conference

ConferenceAustralian and New Zealand Marketing Academy Conference 2016
Abbreviated titleANZMAC 2016
Country/TerritoryNew Zealand
CityChristchurch
Period5/12/167/12/16
Internet address

Keywords

  • Consumer decision-making
  • Regulatory focus theory

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