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“You Spent How Much?” Toward an Understanding of How Romantic Partners Respond to Each Other’s Financial Decisions
Abstract
How people choose to spend money is often observable to others (e.g., based on their clothes, accessories, and social media pages), but there is a whole universe of financial decisions that are essentially unobservable (e.g., how people handle their debts, taxes, and retirement planning). We explore one context where people have an up-close-and-personal view of someone else’s financial decision-making process: romantic relationships. We discuss how the endless opportunities for financial observation in romantic relationships influence a range of behaviors, including spending habits, decisions about bank account structure, and financial infidelity. Our review highlights the need for more research on the ways in which financial decisions are made, communicated, and observed within romantic relationships.
... The nature and trajectories of romantic relationships among young adults have changed significantly in recent years, requiring further study, especially among underrepresented populations such as Asian subgroups (Tillman et al., 2019). This could be because of the numerous challenges they face in them, regarding break-ups (Mengzhen & Yap, 2022), finances (Olson & Rick, 2022), infidelity (Fincham & May, 2017), early pregnancies (Idris et al., 2022), and sexual dissatisfaction (Pacher, 2022). Due to (1) uncertainty resulting from COVID-19 (e.g., not able to meet up physically, economic impacts), (2) technological advancements (e.g., invention of dating apps such as Tinder, sexting), and (3) cultural influences (e.g., globalization, gender inequality, and changing norms in terms of attitudes toward premarital sex) the normative view of romantic relationships among young adults may have changed. ...
... For example, Malaysian conservatism impacts marriage views (Manap et al., 2013). While religion bolsters its cultural significance, modern-day marriages may result in significant financial burdens (Olson & Rick, 2022) from the exorbitant costs of Malaysian weddings (Zulkarnain & Ramli, 2021), potentially influencing some to remain unmarried. Furthermore, the divorce rate has recently almost doubled, partly owing to challenges of work-home balancing, lower tolerance for unhappy marriages, and rising divorce acceptance (Jones, 2021). ...
The uncertain future due to the COVID-19 pandemic and the technological advancements may have altered young adults' experiences of romantic relationships. It is unclear whether individuals will continue to prefer traditional long-term romantic relationships (LTRR) or opt for short-term ones (STRR). This research describes how young adults in Malaysia perceive LTRR and STRR. Using the structured approach of the theory of social representations, data were collected from 512 participants; 238 (46.48%) male; Mage 21.75; majority were heterosexual and students, and analyzed using prototypical analysis to reveal high consensus elements. Five observations were made: (1) females prioritize “love” in both STRR and LTRR, while males prioritize “love” only in LTRR; (2) females prioritize “marriage” in LTRR, while males prioritize “trust,” “comfort,” and “stability.” Males do not consider “marriage” as part of a LTRR; (3) both males and females view STRR positively, while LTRR are viewed more practically; (4) “sex” is a core element in STRR but is absent in LTRR; (5) males differentiate between STRR and LTRR with no overlapping elements. These findings provide insight into the social representations of romantic relationships among young adults in Malaysia and suggest future directions for research in the field.
... Similar to findings as observed in the study by J.Wang [52] going deeper, the demand for goods such as housing, utilities, and transportation, is greater among the rich due to their income elasticity, for carbon dense goods with increased income with their high spending resulting in a widening of the HCEs gap between poor and rich individuals. [53] based on their clothing, accessories and social media pages people observe how they choose to spend money, but fundamentally many financial decision are not observable (e.g. how people handle debt, taxes, and retirement planning). ...
... Because of interdependencies in romantic relationships, partners often use advice as a form of influence. For example, romantic partners are usually financially interdependent (Olson & Rick, 2022) and are motivated to influence their partner toward a financial decision best for the relationship. Because of the role of influence, we focus on implementation of advice as an outcome rather than facilitation of coping or perception of advice quality. ...
Previous research has made a call to study how attachment processes affect advice communication in romantic relationships. Examining participants’ perceptions of romantic partner’s advice, using Advice Response Theory and attachment theory, this study sought to determine how attachment styles moderate the associations between perceived advice message factors and implementation. Participants (N = 272) completed an online questionnaire. More avoidant and more anxious participants were less likely to implement advice. Attachment-avoidance moderated the effects of perceived negative facework and confirmation on increased advice implementation. Attachment-anxiety moderated the effects of perceived confirmation on increased advice implementation. Findings provide theoretical support and extension for attachment theory, romantic relationships, and advice.
... Second, we contribute to the intersecting literature between social relationships and personal finance. A sizeable literature has addressed the effects of relationships on personal finances (Beshears et al. 2017;Brown et al. 2008;Bursztyn et al. 2014;Garbinsky and Gladstone 2019;Olson and Rick 2021;Rick, Small, and Finkel 2011) and the often-negative consequences of introducing money into peer relations (Fiske 1992;Heyman and Ariely 2004). While much of these findings explain whether relationships affect financial decisions, and vice versa, the current research contributes to our understanding of how consumers navigate money and relationships and what relational factors consumers prioritize when money and relationships overlap in the domain of peer debt. ...
The study explores how price promotions such as probabilistic and conventional fixed price promotions impact the pain of paying within the individual differences of tightwad consumers, unconflicted consumers and spendthrift consumers. An online experiment was done to see how the pain of paying might impact price promotion by simulating a supermarket shopping environment. We find that probabilistic pricing promotions successfully stimulate demand, as they minimise the pain of paying more effectively, compared with fixed price promotions. For tightwad consumers who are much more susceptible to pain, probabilistic price promotion has demonstrated greater efficacy in reducing the pain of paying compared to fixed price promotion. In the case of unconflicted consumers, the level of pain of paying showed a difference between fixed and probabilistic price promotion, but at a lower rate as compared to tightwad consumers. However, the probabilistic price promotion did not demonstrate any efficacy in reducing the pain of paying among spendthrift consumers, who are less susceptible to the pain of paying, than the fixed price promotion in contrast to tightwad consumers. The results elucidate a reduction in the pain of payment persists to be a path by which price promotions build customer value.
Keywords: Fixed price promotion, Probabilistic price promotion, Pain of Paying, Spendthrift consumer, Tightwad consumer, Unconflicted consumer
In the last two years, consumers have experienced massive changes in consumption – whether due to shifts in habits; the changing information landscape; challenges to their identity, or new economic experiences of scarcity or abundance. What can we expect from these experiences? How are the world's leading thinkers applying both foundational knowledge and novel insights as we seek to understand consumer psychology in a constantly changing landscape? And how can informed readers both contribute to and evaluate our knowledge? This handbook offers a critical overview of both fundamental topics in consumer psychology and those that are of prominence in the contemporary marketplace, beginning with an examination of individual psychology and broadening to topics related to wider cultural and marketplace systems. The Cambridge Handbook of Consumer Psychology, 2nd edition, will act as a valuable guide for teachers and graduate and undergraduate students in psychology, marketing, management, economics, sociology, and anthropology.
When a romantic relationship becomes serious, partners often confront a foundational decision about how to organize their personal finances: pool money together or keep things separate? In a six-wave longitudinal experiment, we investigated whether randomly assigning engaged or newlywed couples to merge their money in a joint bank account increases relationship quality over time. Whereas couples assigned to keep their money in separate accounts or to a no-intervention condition exhibited the normative decline in relationship quality across the first two years of marriage, couples assigned to merge money in a joint account sustained strong relationship quality throughout. The effect of bank account structure on relationship quality is multiply determined. We examine—and find support for—three potential mechanisms using both experimental and correlational methods: merging finances 1) improves how partners feel about how they handle money, 2) promotes financial goal alignment, and 3) sustains communal norm adherence (e.g., responding to each other’s needs without expectations of reciprocity). While prior research has documented a correlation between financial interdependence and relationship quality, our research offers the first experimental evidence that increasing financial interdependence helps newlyweds preserve stronger relationship quality throughout the newlywed period and potentially beyond.
Financial management differs across households with consequences for financial outcomes and well-being of partners in households. A large-sample study has been performed, investigating the relationship between financial management of households and the occurrence of financial problems. To our knowledge, this is the first study on this relationship. Data from both partners was collected on having joint and separate bank accounts, on financial decision making, on drivers of financial management, and on financial outcomes. Based on the data, four financial management styles were derived: syncratic/joint, male-dominant, female-dominant, and autonomous financial management. In the syncratic style, partners have a joint bank account and take most financial decisions together. In the male/female-dominant styles, one partner (husband or wife) takes the main financial decisions. In the autonomous style, both partners have their own bank accounts and make their own decisions. As a conclusion, we find that syncratic financial management and having a joint instead of a separate bank account correlates with fewer financial problems, as compared with male-dominant money management and having separate bank accounts. Deciding together as partners is beneficial for the quality of financial management and for avoiding financial problems.
Using the 2012–2013 American Time Use Survey, I show that both “who” people spend time with and “how” they spend it affect their life satisfaction, adjusted for numerous demographic and economic variables. Life satisfaction among married individuals increases most with additional time spent with one’s spouse. Among singles, satisfaction decreases most as more time is spent alone. Additional time spent sleeping or TV-watching reduces satisfaction, while longer usual workweeks and higher incomes increase it. Nearly identical results are shown using the 2014–2015 British Time Use Survey. The US estimates are used to simulate the impacts of Covid-19 lock-downs on life satisfaction.
Romantic relationships are built on trust, but partners are not always honest about their financial behavior—they may hide spending, debt, and savings from one another. This article introduces the construct of financial infidelity, defined as “engaging in any financial behavior expected to be disapproved of by one’s romantic partner and intentionally failing to disclose this behavior to them.” We develop and validate the Financial Infidelity Scale (FI-Scale) to measure individual variation in consumers' financial infidelity proneness. In 10 lab studies, one field study, and analyses of real bank account data collected in partnership with a couples’ money-management mobile application, we demonstrate that the FI-Scale has strong psychometric properties, is distinct from conceptually related scales, and predicts actual financial infidelity among married consumers. Importantly, the FI-Scale predicts a broad range of consumption-related behaviors (e.g., spending despite anticipated spousal disapproval, preferences for discreet payment methods and unmarked packaging, concealing bank account information). Our work is the first to introduce, define, and measure financial infidelity reliably and succinctly and examine its antecedents and consequences.
Self‐control is a prominent topic in consumer research, where it is often conceptualized as the abstinence from hedonic consumption. We examine whether this conceptualization accurately captures consumers’ experiences of self‐control conflicts/failures in light of seminal self‐control theories in economics and psychology. Rejecting that notion, we argue that self‐control failures are choices in violation of superordinate long‐term goals accompanied by anticipated regret, rather than choices of hedonic over utilitarian consumption. This conceptualization has important methodological, theoretical, and practical implications. Methodologically, it highlights the need for experimental paradigms with higher construct validity. Theoretically, it helps elucidate how self‐control is distinct from impatience and self‐regulation. Practically, it provides a rich set of implications for deducing interventions on the individual and public policy level to help consumers exert self‐control.
Despite the centrality of purchasing behavior and choice to the welfare debate, research has generally understood attitudes toward welfare at a broader level and as a function of rational or deliberative processes (e.g., self-interest, ideology). This project identifies the effect of egocentrism on welfare attitudes, finding that a welfare recipient’s purchase of an item that the participant personally values less (vs. more) leads to increased stereotyping of welfare recipients (e.g., irresponsibility, impulsivity) and favorable attitudes toward policy that would restrict that purchase. This effect is illustrated for both chronic and situational preferences and across a number of products commonly debated in welfare policy. The authors find that egocentrism is robust to debiasing; therefore, tests of boundary conditions involved countering the stereotype of irresponsibility rather than the bias itself. For example, the effects do not emerge in the context of healthy foods and necessities, nor when information suggests that the target consumer is otherwise responsible (e.g., budgeting, clipping coupons). Implications for policy and welfare advocacy are discussed. In general, these findings establish how personal preferences may shape attitudes toward marginalized consumers and related policy.
Many consumers suffer from low levels of financial literacy, and attempts to increase this dimension of consumer expertise via educational interventions are typically unsuccessful. We argue that many of these apparent deficits are caused by the distribution of responsibility for knowledge and decision-making between relationship partners. Early in relationships, responsibility for financial matters is often determined not by differences in financial expertise, but by differences in relative contributions to other domains (study 3). Although responsibility may be initially unrelated to ability, responsibility predicts learning of new financial information (study 4). Cross-sectional data from consumers in long-term relationships show that as relationships lengthen, high levels of financial responsibility are associated with increases in financial literacy, whereas low levels of financial responsibility are not (study 1). These diverging trajectories of expertise cannot be explained by role switching or changes in the sample over time (study 2). The resulting gap in financial literacy is linked to corresponding differences in both financial decision-making and financial information search (studies 5, 5a). Consumers develop expertise on a “need to know” basis. Offloading responsibility to a relationship partner may eliminate this need in the present, while simultaneously creating barriers to developing expertise when needed in the future. © The Author(s) 2018. Published by Oxford University Press on behalf of Journal of Consumer Research, Inc.
When couples decide to share their lives, they must also decide how to pool their finances. In this paper, we ask: Does the type of bank account from which one spends (joint vs. separate) affect the type of products one chooses to buy (utilitarian vs. hedonic)? Real‐world evidence from analyzing bank transaction records (study 5), as well as data collected from experiments in the field (studies 1 and 2) and lab (studies 3 and 4), converge to support the hypothesis that couple members who spend from a joint bank account are more likely to choose utilitarian (vs. hedonic) products, than those who spend from a separate bank account. We find that these different spending patterns are driven by an increased need to justify spending to one's partner that is experienced when money is pooled together. If a hedonic product becomes easier to justify (study 4), the effect of account type on spending patterns disappears. These findings have important theoretical and practical implications for better understanding financial decision‐making within romantic couples.
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Though perceived financial well-being is viewed as an important topic of consumer research, the literature contains no accepted definition of this construct. Further, there has been little systematic examination of how perceived financial well-being may affect overall well-being. Using consumer financial narratives, several large-scale surveys, and two experiments, perceived financial well-being is conceptualized as two related, but separate constructs: 1) stress related to the management of money today (current money management stress); and 2) a sense of security in one’s financial future (expected future financial security). We develop and validate measures of these constructs (web appendix A) and then demonstrate their relationship to overall well-being, controlling for other life domains and objective measures of the financial domain. Our findings demonstrate that perceived financial well-being is a key predictor of overall well-being and comparable in magnitude to the combined effect of other life domains (job satisfaction, physical health assessment, and relationship support satisfaction). Further, the relative importance of current money management stress to overall well-being varies by income groups and that current money management stress and expected future financial security have differing antecedents. Implications for financial well-being and education efforts are offered.
Self-presentation is a fundamental aspect of social life, with myriad critical outcomes dependent on others' impressions. We identify and offer the first empirical investigation of a prevalent, yet understudied, self-presentation strategy: humblebragging. Across 9 studies, including a week-long diary study and a field experiment, we identify humblebragging-bragging masked by a complaint or humility-as a common, conceptually distinct, and ineffective form of self-presentation. We first document the ubiquity of humblebragging across several domains, from everyday life to social media. We then show that both forms of humblebragging-complaint-based or humility-based-are less effective than straightforward bragging, as they reduce liking, perceived competence, compliance with requests, and financial generosity. Despite being more common, complaint-based humblebrags are less effective than humility-based humblebrags, and are even less effective than simply complaining. We show that people choose to deploy humblebrags particularly when motivated to both elicit sympathy and impress others. Despite the belief that combining bragging with complaining or humility confers the benefits of each strategy, we find that humblebragging confers the benefits of neither, instead backfiring because it is seen as insincere. (PsycINFO Database Record
https://www.onefpa.org/journal/Pages/MAY17-Tightwads-and-Spenders-Predicting-Financial-Conflict-in-Couple-Relationships.aspx
Transactive goal dynamics (TGD) theory conceptualizes 2 or more interdependent people as 1 single self-regulating system. Six tenets describe the nature of goal interdependence, predict its emergence, predict when it will lead to positive goal outcomes during and after the relationship, and predict the consequences for the relationship. Both partners in a TGD system possess and pursue self-oriented, partner-oriented, and system-oriented goals, and all of these goals and pursuits are interdependent. TGD theory states that relationship partners' goals, pursuit, and outcomes affect each other in a dense network of goal interdependence, ultimately becoming so tightly linked that the 2 partners are most accurately conceptualized as components within a single self-regulating system. (PsycINFO Database Record
Prior research offers competing predictions regarding whether an initial token display of support for a cause (such as wearing a ribbon, signing a petition, or joining a Facebook group) subsequently leads to increased and otherwise more meaningful contributions to the cause. The present research proposes a conceptual framework elucidating two primary motivations that underlie subsequent helping behavior: a desire to present a positive image to others and a desire to be consistent with one’s own values. Importantly, the socially observable nature (public vs. private) of initial token support is identified as a key moderator that influences when and why token support does or does not lead to meaningful support for the cause. Consumers exhibit greater helping on a subsequent, more meaningful task after providing an initial private (vs. public) display of token support for a cause. Finally, the authors demonstrate how value alignment and connection to the cause moderate the observed effects.
Can we rely on our high self-control friends to help us make better joint spending and diet decisions? The current research reports seven studies showing that in joint decisions, homogeneous high self-control pairs make less indulgent choices than both homogeneous low self-control and mixed pairs. However, there is no difference in the self-regulatory patterns of the latter two dyad types: having one high self-control partner in a dyad does not lead to more restraint than having none. The authors argue that this pattern exists because higher self-control individuals tend to prioritize prorelationship behaviors over their personal preference for restraint. Therefore, they assent to the lower self-control partner’s more indulgent preferences. Consistent with this explanation, results suggest that interventions that change individuals’ prorelationship motivation can alter this pattern. Given the range of decisions consumers may make in couples or pairs, this research has implications for consumers, marketers, and public-policy makers.
Consumers often behave differently than they would ideally like to behave. We propose that an anticipatory pain of paying drives “tightwads” to spend less than they would ideally like to spend. “Spendthrifts,” by contrast, experience too little pain of paying and typically spend more than they would ideally like to spend. This article introduces and validates the “spendthrift-tightwad” scale, a measure of individual differences in the pain of paying. Spending differences between tightwads and spendthrifts are greatest in situations that amplify the pain of paying and smallest in situations that diminish the pain of paying.
This paper discusses the key findings from the first qualitative study focused on understanding the impacts of gambling-related debt on the family and work life of problem gamblers. The paper illustrates how current research priorities marginalise the social impacts of gambling on families and communities and suggests ways in which researchers and practitioners can address the issues and impacts of gambling-related debt on individuals, families and communities. Este artículo reporta los hallazgos principales del primer estudio cualitativo para comprender los impactos familiares y laborales originados por problemas de deudas de apuestas. El presente informe también ilustra como las prioridades de investigaciones actuales marginalizan los impactos sociales en familias y comunidades y sugiere métodos en los que los investigadores y profesionales pueden abordar los impactos de deudas relacionadas con el juego de apuestas en individuos, familias y comunidades.
When people's deeply ingrained need for social connection is thwarted by social exclusion, profound psychological consequences ensue. Despite the fact that social connections and consumption are central facets of daily life, little empirical attention has been devoted to understanding how belongingness threats impact consumer behavior. In four experiments, we tested the hypothesis that social exclusion causes people to spend and consume strategically in the service of affiliation. Relative to controls, excluded participants were more likely to buy a product symbolic of group membership (but not practical or self-gift items), tailor their spending preferences to the preferences of an interaction partner, spend money on an unappealing food item favored by a peer, and report being willing to try an illegal drug, but only when doing so boosted their chances of commencing social connections. Overall, results suggest that socially excluded people sacrifice personal and financial well-being for the sake of social well-being.
The present research tested the hypothesis that perception of others' self-control is an indicator of their trustworthiness. The authors investigated whether, in interactions between strangers as well as in established relationships, people detect another person's self-control, and whether this perception of self-control, in turn, affects trust. Results of 4 experiments supported these hypotheses. The first 2 experiments revealed that participants detected another person's trait of self-control. Experiments 3 and 4 revealed that participants also detected the temporary depletion of another person's self-control. Confirming the authors' predictions, perceived trait and state self-control, in turn, influenced people's judgment of the other person's trustworthiness. In line with previous research, these findings support the positive value of self-control for relationships and highlight the role of perceived self-control for the development of a fundamental relationship factor: trust.
This article proposes that not only disclosure but also secrecy should have a beneficial effect on satisfaction in close relationships. Disclosure and secrecy are determined by dispositional characteristics of relationship partners and by the unique relationship context in which they occur. Dispositional and contextual measures of disclosure and secrecy were included in a correlational study among married participants to answer the following questions: (1) do dispositional measures of disclosure and secrecy predict marital satisfaction? and (2) do contextual measures of disclosure and secrecy predict marital satisfaction? In addition, it examined to what extent dispositional measures of disclosure and secrecy predict communicative behavior between partners. Results showed that dispositional measures contributed only marginally to marital satisfaction, while contextual measures strongly contributed to marital satisfaction. Contextual disclosure and secrecy independently contributed to marital satisfaction. Dispositional measures failed to predict communicative behavior between partners. These findings suggest that both disclosure and secrecy are powerful mechanisms in marital relationships and that it is the process that occurs when partners interact with each other, rather than the characteristics of either or both, that affects marital satisfaction.
This article reviews the construct and measurement of materialism and concludes that materialism is appropriately conceptualized as a consumer value. The development of a values-oriented materialism scale with three components--acquisition centrality, acquisition as the pursuit of happiness, and possession-defined success--is described. In validation tests high scorers (compared with low scores) desired a higher level of income, place greater emphasis on financial security and less on interpersonal relationships, preferred to spend more on themselves and less on others, engaged in fewer voluntary simplicity behaviors, and were less satisfied with their lives. Copyright 1992 by the University of Chicago.
Compulsive buying is framed within the larger category of compulsive consumption, and both quantitative and qualitative data are used to provide a phenomenological description. Results indicate people who buy compulsively are more likely to demonstrate compulsivity as a personality trait, have lower self-esteem, and are more prone to fantasy than more normal consumers. Their primary motivation appears to be the psychological benefits derived from the buying process itself rather than from the possession of purchased objects. Consequences of compulsive buying include extreme levels of debt, anxiety and frustration, the subjective sense of loss of control, and domestic dissension.
We examine the physical and mental health effects of providing care to an elderly mother on the adult child caregiver. We address the endogeneity of the selection in and out of caregiving using an instrumental variable approach, and carefully control for baseline health and work status of the adult child using fixed effects and Arellano-Bond estimation techniques. Continued caregiving over time increases depressive symptoms for married women and married men. In addition, the increase in depressive symptoms is persistent for married men. Depressive symptoms for single men and women are not affected by continued caregiving. There is a small protective effect on the likelihood (10%) of having any heart conditions among married women who continue caregiving. Robustness checks confirm that the increase in depressive symptoms and decrease in likelihood of heart conditions can be directly attributable to caregiving behavior, and not due to a direct effect of the death of the mother. The initial onset of caregiving, by contrast, has no immediate effects on physical or mental health for any subgroup of caregivers.
Do spouses become more similar over time? What processes contribute to enduring similarities between them? Using the 20-year Kelly Longitudinal Study of couples, no support for the hypothesis that couples increasingly resemble each other with time was found. Rather, couples maintain the same degree of similarity across 20 years. Structural equation analyses suggest that the shared environmental experiences of couples play a significant role in maintaining these similarities over time. We distinguish the shared marital environment from the shared rearing environment and consider developmental and dynamic-relational factors that moderate the relative importance of nonshared and shared environmental experiences in life-span personality development. Whereas nonshared influences in one's family of origin contribute to development in childhood and adolescence, shared influences in one's family of destination may contribute a great deal to development in adulthood.
The authors propose that people in relationships become emotionally similar over time--as this similarity would help coordinate the thoughts and behaviors of the relationship partners, increase their mutual understanding, and foster their social cohesion. Using laboratory procedures to induce and assess emotional response, the authors found that dating partners (Study 1) and college roommates (Studies 2 and 3) became more similar in their emotional responses over the course of a year. Further, relationship partners with less power made more of the change necessary for convergence to occur. Consistent with the proposed benefits of emotional similarity, relationships whose partners were more emotionally similar were more cohesive and less likely to dissolve. Discussion focuses on implications of emotional convergence and on potential mechanisms.
The current work investigates how personality and interpersonal processes combine to predict change in relationship quality. Measures of personality and emotion similarity were collected during laboratory interactions from a cross-sectional sample of dating couples (Study 1) and a 1-year longitudinal study of newlywed married couples (Study 2). Results showed that emotion similarity mediated the association between personality similarity and relationship quality (Studies 1 and 2) and that emotion convergence mediated the association between personality convergence and relationship satisfaction (Study 2). These results indicate that similarity and convergence in personality may benefit relationships by promoting similarity and convergence in partners' shared emotional experiences. Findings also lend support to models that integrate partners' enduring traits and couples' adaptive processes as antecedents of relationship outcomes.
Alcohol consumption and cognitive impairment frequently co‐occur. We propose that the relationship is so familiar that exposure to alcohol cues primes expectations of cognitive impairment. Across five studies, we find that in the absence of any evidence of reduced cognitive performance, people who hold an alcoholic beverage are perceived to be less intelligent than those who do not, a mistake we term the imbibing idiot bias. In fact, merely priming observers with alcohol cues causes them to judge targets who hold no beverage at all as less intelligent. The bias is not driven by a belief that less intelligent people are more likely to consume alcohol. We find that the bias may be costly in professional settings. Job candidates who ordered wine during an interview held over dinner were viewed as less intelligent and less hireable than candidates who ordered soda. However, prospective candidates believe that ordering wine rather than soda will help them appear more intelligent.
Spending is influenced by many factors. One that has received little attention is the meaning that people give to the act of spending. Spending money might imply that someone is relatively wealthy—since they have money to spend—or relatively poor—since spending can deplete assets. We show that people differ in the extent to which they believe that spending implies wealth (SIW beliefs). We develop a scale to measure these beliefs and find that people who more strongly believe that spending implies wealth spend their own money relatively lavishly and are, on average, more financially vulnerable. We find correlational evidence for these relationships using objective financial-transaction data, including over 2 million transaction records from the bank accounts of over 2,000 users of a money management app, as well as self-reported financial well-being. We also find experimental evidence by manipulating SIW beliefs and observing causal effects on spending intentions. These results show how underlying beliefs about the link between spending and wealth play a role in consumption decisions, and point to beliefs about the meaning of spending as a fruitful direction for further research.
Lower-income individuals are frequently criticized for their consumption decisions; this research examines why. Eleven preregistered studies document systematic differences in permissible consumption — interpersonal judgments about what is acceptable (or not) for others to consume—such that lower-income individuals’ decisions are subject to more negative and restrictive evaluations. Indeed, the same consumption decisions may be deemed less permissible for a lower-income individual than for an individual with higher or unknown income (studies 1A and 1B), even when purchased with windfall funds. This gap persists among participants from a large, nationally representative sample (study 2) and when testing a broad array of “everyday” consumption items (study 3). Additional studies investigate why: The same items are often perceived as less necessary for lower- (versus higher-) income individuals (studies 4 and 5). Combining both permissibility and perceived necessity, additional studies (studies 6 and 7) demonstrate a causal link between the two constructs: A purchase decision will be deemed permissible (or not) to the extent that it is perceived as necessary (or not). However, because—for lower-income individuals—fewer items are perceived as necessary, fewer are therefore socially permissible to consume. This finding not only exposes a fraught double standard, but also portends consequential behavioral implications: People prefer to allocate strictly “necessary” items to lower-income recipients (study 8), even if such items are objectively and subjectively less valuable (studies 9A and 9B), which may result in an imbalanced and inefficient provision of resources to the poor.
When customers journey from a need to a purchase decision and beyond, they rarely do so alone. This article introduces the social customer journey, which extends prior perspectives on the path to purchase by explicitly integrating the important role that social others play throughout the journey. The authors highlight the importance of “traveling companions,” who interact with the decision maker through one or more phases of the journey, and they argue that the social distance between the companion(s) and the decision maker is an important factor in how social influence affects that journey. They also consider customer journeys made by decision-making units consisting of multiple individuals and increasingly including artificial intelligence agents that can serve as surrogates for social others. The social customer journey concept integrates prior findings on social influences and customer journeys and highlights opportunities for new research within and across the various stages. Finally, the authors discuss several actionable marketing implications relevant to organizations’ engagement in the social customer journey, including managing influencers, shaping social interactions, and deploying technologies.
Although most research on consumers’ choices, and resulting insights, have focused on choices that consumers make solely for themselves, consumers often make choices for others, and there is a growing literature examining such choices. Theoretically, how can this growing literature be integrated, and what gaps remain? Practically, why should marketers, consumers, and policymakers care when choices are made for others, and what should they do differently? A 2 × 2 framework of consumers’ choices for others addresses these questions. This framework has two fundamental dimensions: the chooser’s social focus (relationship vs. recipient oriented) and the chooser’s consideration of consumption preferences (highlight the recipient’s preferences vs. the balance recipient’s preferences with the chooser’s preferences). These dimensions generate four cells that represent prototypical choosing-for-others contexts: gift-giving (relationship focus, highlighting recipient’s preferences), joint consumption (relationship focus, balancing recipient’s and chooser’s preferences), everyday favors/pick-ups (recipient focus, highlighting recipient’s preferences), and care-giving (recipient focus, balancing recipient’s and chooser’s preferences). This framework captures most choosing-for-others situations, and each cell involves a distinct profile of motives, ultimately affecting choices. This framework integrates the choosing-for-others literature, which we hope will guide future research, and it also offers practical implications for marketers, consumers, and policymakers.
This article examines perceptions of low-income consumers receiving government assistance and the choices they make, showing that this group is viewed differently than those with more resources, even when making identical choices. A series of five experiments reveal that ethical purchases polarize moral judgments: whereas individuals receiving government assistance are perceived as less moral when choosing ethical (vs. conventional) products, income earners, particularly high-income individuals, are perceived as more moral for making the identical choice. Price is a central component of this effect, as equating the cost of ethical and conventional goods provides those receiving government assistance some protection against harsh moral judgments when choosing ethically. Moreover, earning one’s income drives perceptions of deservingness, or the right to spend as one desires. Those who receive assistance via taxpayer dollars are under greater scrutiny (frequently resulting in harsher moral judgments) by others. In addition to influencing perceptions of individual consumers, the results demonstrate that such attributions extend to groups who make ethical choices on others’ behalf, and that these attributions have real monetary consequences for non-profit organizations.
Little empirical consumer research has focused on the decoding of conspicuous symbolism, that is, the inferences consumers make about others' conspicuous consumption. Grounded in theory on social perception and role congruity, four experiments show that consumer inferences about and behavioral intentions toward conspicuous sellers are moderated by communal and exchange relationship norms. Specifically, conspicuous consumption by a seller decreases warmth inferences and, in turn, behavioral intentions toward the seller under the communal norm; conversely, it increases competence inferences and, in turn, behavioral intentions under the exchange norm. A seller's mere wealth triggers similar inferences, suggesting that conspicuous consumption is a surrogate for actual wealth. Priming consumers with persuasion knowledge inhibits the inferential benefits resulting from conspicuousness under the exchange norm. These findings reveal the theoretically meaningful role of the consumption context by showing that consumers' warmth and competence inferences operate differentially in commercial relationships as a result of salient communal versus exchange norms, with important consequences for consumers' behavioral intentions.
Past research shows that luxury products can function to boost self-esteem, express identity, and signal status. We propose that luxury products also have important signaling functions in relationships. Whereas men use conspicuous luxury products to attract mates, women use such products to deter female rivals. Drawing on both evolutionary and cultural perspectives, five experiments investigated how women's luxury products function as a signaling system directed at other women who pose threats to their romantic relationships. Findings showed that activating a motive to guard one's mate triggered women to seek and display lavish possessions. Additional studies revealed that women use pricey possessions to signal that their romantic partner is especially devoted to them. In turn, flaunting designer handbags and shoes was effective at deterring other women from poaching a relationship partner. This research identifies a novel function of conspicuous consumption, revealing that luxury products and brands play important roles in relationships.
This study investigated the extent to which reports of marital problems in 1980 predicted divorce between 1980 and 1992, the extent to which these problems mediated the impact of demographic and life course variables on divorce, and gender differences in reports of particular marital problems and in the extent to which these reports predicted divorce. Wives reported more marital problems than husbands did, although this was due to husbands' tendency to report relatively few problems caused by their spouses. A variety of marital problems predicted divorce up to 12 years in the future. A parsimonious set of marital problems involving infidelity, spending money foolishly, drinking or drug use or both, jealousy, moodiness, and irritating habits mediated moderate proportions of the associations between demographic and life course variables and divorce.
Using longitudinal data from the National Survey of Families and Households and both wife- and husband-reported data (N = 4,574 couples), this study examined how financial well-being, financial disagreements, and perceptions of financial inequity were associated with the likelihood of divorce. When financial disagreements were in the model, financial well-being was not associated with divorce. Both wives' and husbands' financial disagreements were the strongest disagreement types to predict divorce. Mediators derived from systems theory (conflict tactics) and social exchange theory (marital satisfaction) fully mediated the association between financial disagreement and the hazard of divorce. Finally, financial disagreements fully mediated the association between perceptions of financial inequity and divorce. These findings suggest that financial disagreements are stronger predictors of divorce relative to other common marital disagreements. They further suggest that financial disagreements (e.g., "content") are associated with marital process.
Most research on consumer choice assumes that decisions are usually made by individuals, and that these decisions are based on an individual's personal attitudes, beliefs, and preferences. Yet, much consumer behavior—from joint decisions to individual choices—is directly or indirectly shaped by people with whom we have some relationship. In this target article, we examine how each member in a relationship can affect how consumer decisions are made. After reviewing foundational work in the area, we introduce a powerful and statistically sophisticated methodology to study decisions within relationships—a dyadic framework of decision-making. We then discuss how the study of consumer decisions in relationships can be informed by different theories in the relationships field, including attachment, interdependence, social power, communal/exchange orientations, relationship norms, and evolutionary principles. By building on the seminal foundations of prior joint-decision making research with theories and methods from contemporary relationship science, we hope to facilitate the integration of the consumer and relationships literature to better understand and generate novel hypotheses about consumer decisions in relationships.
Alcohol consumption and cognitive impairment frequently co-occur. We propose that the relationship is so familiar that exposure to alcohol cues primes expectations of cognitive impairment. Across five studies, we find that in the absence of any evidence of reduced cognitive performance, people who hold an alcoholic beverage are perceived to be less intelligent than those who do not, a mistake we term the imbibing
idiot bias. In fact, merely priming observers with alcohol cues causes them to judge targets who hold no beverage at all as less intelligent. The bias is not driven by a belief that less intelligent people are more likely to consume alcohol. We find that the bias may be costly in professional settings. Job candidates who ordered wine during an interview held over dinner were viewed as less intelligent and less hireable than candidates who ordered soda. However, prospective candidates believe that ordering wine rather than soda will help them appear more intelligent.
This study explored the association between household financial arrangements and relationship quality using a representative sample of low-income couples with children. We detailed the banking arrangements couples utilize, assessed which factors relate to holding a joint account versus joint and separate, only separate, or no account, and analyzed the association between fiscal practices and men's and women's relationship quality. The majority of couples held joint accounts, though over one-quarter also have separate accounts; nearly one-tenth have no account. Joint bank accounts were associated with higher levels of relationship quality on numerous dimensions, though more consistently for women than men. Individualistic arrangements appeared to undermine women's relationship satisfaction and reduce feelings of intimacy, sexual compatibility, and satisfaction with conflict resolution.
Existing research on price deals has largely demonstrated positive financial and nonfinancial consequences of obtaining a deal. In contrast, the research reported here suggests that certain price deals—in this case, coupons—can also produce negative social consequences, such as creating an impression of cheapness or stinginess. Decisions to redeem coupons are shown to involve a trade-off between the social incentives to avoid coupons and competing economic and psychological incentives to redeem coupons. Consumers strategically adjusted their decision in response to factors that changed the relative strength of these incentives; specifically, they avoided coupons when they were concerned that coupon use would lead to negative social consequences but redeemed coupons when the circumstances reduced these concerns. Although decisions to refuse a coupon might violate principles of economic rationality, it is argued that such decisions are nevertheless functional as they serve important social goals. In this sense, it can be smarter for consumers to forgo a deal rather than obtain one.
This study uses Markowitz mean-variance portfolio theory with forecasted data for the years 2005 to 2035 to determine efficient electricity generating technology mixes for Switzerland. The SURE procedure has been applied to filter out the systematic components of the covariance matrix. Results indicate that risk-averse electricity users in 2035 gain in terms of higher expected return, less risk, more security of supply and a higher return-to-risk ratio compared to 2000 by adopting a feasible minimum variance (MV) technology mix containing 28 percent Gas, 20 percent Run of river, 13 percent Storage hydro, 9 percent Nuclear, and 5 percent each of Solar, Smallhydro, Wind, Biomass, Incineration, and Biogas respectively. However, this mix comes at the cost of higher CO2 emissions.
Who has not known a tightwad? Yet this pervasive consumer trait--being frugal--has been ignored in the scholarly consumer behavior literature. This research articulates the nature of this overlooked consumer trait and then develops, evaluates, and empirically applies a multi-item scale of frugality. The results from a six-study program of empirical research are reported. These studies describe (1) the psychometric properties of a frugality measure, (2) demonstrations of how frugality assists the empirical study of consumer usage and acquisition behaviors, and (3) frugality scale norms from a probability sample of the general adult population. Copyright 1999 by the University of Chicago.
Using the concept of a family financial officer (FFO), the family is found to be not homogeneous in its financial and purchase behavior. Thus, if the husband is the FFO, the couple is more likely to save a higher proportion of income and in variable dollar forms, and to purchase automobiles less frequently.
The present research establishes that the innocuous behavior of coupon redemption is capable of eliciting stigma by association. The general finding across four studies shows that the coupon redemption behavior of one consumer results in a second non-coupon-redeeming shopper being stigmatized by association as cheap when a low as compared to a high value coupon is redeemed. More important, the research identifies a number of factors that protect a non-coupon-redeeming shopper from the undesirable experience of stigma by association, even during another shopper's redemption of a low value coupon. (c) 2008 by JOURNAL OF CONSUMER RESEARCH, Inc..
Wait a minute. How can they afford that when I can’t? The New York Times
- A Tugend
Fatal (fiscal) attraction: spendthrifts and tightwads in marriage
- Rick