Please use this identifier to cite or link to this item: http://hdl.handle.net/2440/107552
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Type: Journal article
Title: Focal versus background goals in consumer financial decision-making
Author: Aspara, J.
Chakravarti, A.
Hoffmann, A.
Citation: European Journal of Marketing, 2015; 49(7/8):1114-1138
Publisher: Emerald
Issue Date: 2015
ISSN: 0309-0566
Statement of
Responsibility: 
Jaakko Aspara, Amitav Chakravarti, Arvid Hoffmann
Abstract: Purpose: This study aims to examine the interplay between focal and background goals in consumer financial decision-making and identify conditions that lead individuals to trade-off financial returns for background goals. Design/methodology/approach: The current research reviews the relevant literature on consumer financial decision-making and goal systems theory to develop a set of hypotheses that is tested using three experiments. Findings: The experiments show that individuals who have been subtly primed with self-expressive background goals, or experienced progress toward the focal goal of financial returns, accept lower financial returns for the opportunity to invest in stocks that allow for increased self-expression. Further, while subtly primed background goals exert a non-normative influence on investment decisions, explicit cues about an investment’s background goal-instrumentality create a backlash effect, and decrease individuals’ willingness to trade-off financial returns. Research limitations/implications: Future research could confirm the robustness of the findings of the present research by using different priming tasks and alternative ways of making the background goal explicit to individuals. Practical implications: To achieve greater attraction among individual investors, it helps to frame a financial product or stock in communications materials in a way that sends subtle signals with which investors can identify. Such signals could include stressing the product/company’s home country (addressing individuals’ patriotism) or a particular product domain (addressing individual investors’ desire for interesting/exciting current/future products). Originality/value: While previous research suggests that investment choices may be influenced by self-expressive motivations, to date, it remains unclear whether and when individual investors are actually willing to trade-off the focal goal of maximizing financial returns for the opportunity to satisfy alternative background goals.
Keywords: Background goals, consumer financial decision-making, focal goals, household finance, self-expression
Rights: © Emerald Group Publishing Limited
RMID: 0030059882
DOI: 10.1108/EJM-04-2014-0244
Appears in Collections:Economics publications

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