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Session Overview
Session
01-09: Shashi Matta
Time:
Friday, 19/Jul/2019:
10:30am - 10:55am

Seminar Room 3-3

Chair: Tom Chen


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Abstract

Emulating Success or Learning from Failure? The Role of Personal Saving Orientation, Implicit Self-Theories, and Peer Persuasion on Financial Behaviors

Authors: Shashi Matta (Catholic University Eichstätt Ingolstadt, WFI Ingolstadt School of Management, Germany), Grazia Pia Palmiotti (Catholic University Eichstätt Ingolstadt, WFI Ingolstadt School of Management, Germany), Natalia Rogova (Catholic University Eichstätt Ingolstadt, WFI Ingolstadt School of Management, Germany)

Consumers’ financial behavior (saving, spending, investing) has significant import for financial service firms, policy makers, and researchers. In this research, we investigate the effect of personal and social factors, as well as message source characteristics, on consumers’ spending and saving intentions. We aim to answer three key questions on consumers’ financial behaviors when exposed to a persuasive message from a peer: (1) How do consumers’ personal saving orientation and their implicit theories of the self affect their intentions to save and invest? (2) How do consumers’ intentions to save and invest vary when the persuasive message is from a financially successful peer versus a financially unsuccessful peer? (3) How can financial service firms tailor their communication to motivate better saving and investing behavior from their consumers? We conducted two experiments to answer these questions.

Study 1 (N = 326) measured respondents’ personal saving orientation and their implicit theories of the self, and exposed them to one of two persuasive messages on social media – a social media message about the benefits of saving and investing from a financially successful peer or from a financially unsuccessful peer. Dependent measures included respondents’ evaluations of the message and their intentions to save and invest. Results showed that consumers with a malleable view of the self and a low personal saving orientation responded more favorably to the message from the unsuccessful peer than consumers with a malleable view of the self and a low personal saving orientation, and consumers with a fixed view of the self. In contrast, consumers with a malleable view of the self and a high personal saving orientation responded more favorably to the message from the successful peer than consumers with a malleable view of the self and a low personal saving orientation, and consumers with a fixed view of the self. Study 2 (N = 237) experimentally manipulated implicit theories of the self, while retaining the rest of study 1’s design. In addition to replicating study 1 results, we found evidence for the underlying process by measuring consumers’ dominant motivations in each condition.

Given the abundance of positive self-presentational stimuli on social media, our research makes a novel contribution by examining the effect of a negative self-presentational message (the message from an unsuccessful peer) on consumers’ intentions to save and invest. Further, it contributes to the rich body of behavioral research on financial well-being by investigating how personal saving orientation and implicit self-theories interact with the source of a persuasive message. Finally, our results have strong implications for the design of marketing tactics of financial service firms and public policy interventions.



 
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