How behavioral decision research can enhance consumer welfare: From freedom of choice to paternalistic intervention

Decision-making researchers have largely focused on showing errors and biases in consumers' decision-making processes without paying much attention to the social welfare and policy implications of these systematic behaviors. In this paper, we explore how findings and methods in behavioral decision research can be used to help consumers improve their decision making and enhance their well-being. We first review select findings in behavioral decision research to explain why consumers need help in decisions, and based on these findings, suggest various interventions that could be effective within the scope of libertarian paternalism. Ethics and effectiveness of the interventions are also discussed.     

The effects of professional education on values and the resolution of ethical dilemmas: Business school vs. law school students

Prior research on the impact of ethics education within the business curriculum has yielded mixed results. Although the impact is often found to be positive, it appears to be both small and short-lived. Interpretation of these results, however, is subject to important methodological limitations. The present research employed a longitudinal methodology to evaluate the impact of an M.B.A. program versus a law program on the values and ethical decision making behavior of a cohort of students at two major universities in the northeast. The results suggest that the M.B.A. curriculum remains a value-neutral experience for most students. In contrast, the law school program had a significant impact on both values and ethical decision making.Donald L. McCabe is Associate Professor of Management at the Graduate School of Management, Rutgers — The State University of New Jersey. His research focuses on ethical decision making, interpretive processes under conditions of uncertainty, and issues of student values and ethics.Janet M. Dukerich is an Associate Professor of Management at the University of Texas at Austin. Her research focuses on individual and group decision making and interpretation processes in organizations.Jane E. Dutton is Associate Professor of Organizational Behavior and Human Resource Management at the University of Michigan. Her research interests center on organizational adaptation processes, and in particular, organizational responses to value-laden issues.     

The impact of individual and managerial factors on salespeople's contribution to marketing intelligence activities

Although salespersons represent a unique and important channel of information, few of them contribute efficiently to marketing intelligence. This research aims to understand how salespeople's motivation and effort to gather and transmit marketing intelligence to management may be influenced by individual (organizational commitment, desire for upward mobility) and managerial (control system, participation in decision making, feedback, recognition) factors. The test of the proposed model shows that desire for upward mobility is the only individual determinant of behavior. Other than participation in decision making, all the managerial factors play influential roles in structuring both motivation and behavioral effort toward marketing intelligence by salespeople. The authors also discuss the limits of the model, some managerial implications, and future research opportunities.     

基于前景分析模型的行为人决策引致商业银行操作风险分析

近年来,基于行为金融学理论和方法对行为人行为引起商业银行操作风险的研究开始出现。运用行为金融学的前景分析模型对操作风险形成原因进行行为人面对收益时和面对损失时的选择方式的分析,认为行为人的主观意愿和行为决策对操作风险产生有重要影响。     

A study of the relationships among sensory experience,emotion, and buying behavior in coffeehouse chains

Studies that simultaneously explore the effects of sensory experience on consumer emotions and behavior are rare. This paper builds a model of buying behavior based on sensory experience, 570 valid questionnaires were obtained from coffeehouse customers. Using structural equation modeling and multiple regression analysis, this paper validates the concept model and verifies that sensory experience is a significant antecedent to buying behavior. This study indicates that certain sensory experiences significantly influence emotion. Emotion also plays a mediating role in the relationship between sensory experience and behavioral intentions. The findings are theoretically and practically profound as they address the relationships among sensory experience, consumer emotions, behavioral intentions, and buying behavior, as well as explore how the five senses affect emotions and buying behavior. This paper concludes by indicating managerial implications and research limitations.     

The impact of buy-online-and-return-in-store channel integration on online and offline behavioral intentions: The role of offline store

Retailers have treated the buy-online-and-return-in-store (BORS) policy as an important initiative to reduce return losses and provide a better customer experience. Studies on BORS policy have primarily focused on the retailer's strategic value, but not on how such a seamlessly integrated omnichannel operation affects customer behavior. Using Chinese customer data and the structural equation model (SEM), we investigate how BORS channel integration impacts customer behavioral intentions, with the consideration of the mediating effect of customer satisfaction and the moderating effect of offline store characteristics. Based on the stimulus-organism-response framework, our research found that two dimensions of BORS channel integration (integrated return fulfillment and integrated customer service) positively impact customer satisfaction and subsequently impact behavioral intentions in different channels. Furthermore, offline store convenience moderates the relationship between integrated customer service and customer satisfaction. Product variety in the offline store moderates the relationship between customer satisfaction and offline behavioral intentions, while it is not statistically significant in the relationship between customer satisfaction and online behavioral intentions. Compared to the younger group, the older group who is satisfied with BORS service is more likely to purchase offline. These findings generate important theoretical and practical implications for omnichannel return operations.     

The effect of decision makers’ time perspective on intention–behavior consistency

This research demonstrates that decision makers?? time perspective??a cognitive, temporal bias that leads people to overemphasize the past, present, or future in their decision making??systematically influences self-reported behavioral intentions and thus intention?Cbehavior consistency for distant-future behaviors. Whereas present-hedonistic individuals overstate their intentions, present-fatalistic individuals understate theirs, so both types exhibit low intention?Cbehavior consistency. Future time-oriented individuals instead exhibit high intention?Cbehavior consistency because they are less likely to overstate their intentions. The findings are contributed to decision makers?? time perspective influencing the construal of distant-future behavior when reporting behavioral intentions. Accounting for decision makers?? time perspectives helps improve predictive accuracy and may change insights obtained from causal models that use self-reported intentions as a proxy for actual, distant-future behavior.     

Applying the Extended Theory of Planned Behavior to Predict Sustainable Street Food Patronage in a Developing Economy

With over 2.5 billion daily street food consumers globally, the consumption paradigm of the urban-informal-sector street food is shifting towards sustainable street food (SSF). This has led to the emerging SSF-market segment. The extended Theory of Planned Behavior (e-TPB), which incorporates the past behavior construct, is used to provide preliminary insight by unraveling behavioral predictors. The e-TPB research framework is premised on five key constructs - attitude, subjective norm, perceived behavioral control and past behavior. The framework was tested using primary data collected from 437 street food consumers drawn from three main urban cities in southeast Nigeria. Structural Equation Modeling (SEM) technique was used to analyze data. It is revealed that past behavior/experience does not necessarily connote patronage intention for sustainable street food. This study validates the utility of e-TPB for the prognosis of emerging consumer behavior. Recommendations and implications for marketing-related street food vending strategies are discussed.     

Role of Forgetting in Memory-Based Choice Decisions: A Structural Model

We propose a structural model to investigate the impact of forgetting on consumers' brand choice decisions in frequently purchased products. Forgetting results in consumers imperfectly recalling their prior brand evaluations when making a purchase decision in the category. We conceptualize the imperfect recall by positing that consumers recall their prior evaluations with noise. Based on prior research in the behavioral area, we characterize the extent of forgetting as an increasing and concave function of time. Our framework generates analytical results on the impact of forgetting on consumers' brand evaluations and their consequent purchase behavior. We calibrate our model using scanner panel data for liquid detergents. Furthermore, we obtain insights into the consumers' extent of forgetting in the category, extent of learning, predicted price elasticities and implications on state dependence and habit persistence. Our results underscore the importance of modeling consumers' ability to recall only imperfectly.     

Ethical Decision Making: Special or No Different?

Theories of ethical decision making assume it is a process that is special, or different in some regard, from typical individual decision making. Empirical results of the most widely known theories in the field of business ethics contain numerous inconsistencies and contradictions. In an attempt to assess why we continue to lack understanding of how individuals make ethical decisions at work, an inductive study of ethical decision making was conducted. The results of this preliminary study suggest that ethical decision making might not be meaningfully “special” or different from other decision making processes. The implications of this research are potentially significant in that they challenge the fundamental assumption of existing ethical decision making research. This research could serve as an impetus for further examination of whether ethical decision making is meaningfully different from other decision making processes. Such studies could create new directions for the field of business ethics.     

Financial Attitudes in Family Firms: The Moderating Role of Family Commitment

This study investigates how family commitment moderates whether and how financial knowledge, positive experience with debt suppliers, and economic goal orientation affect owner–managers' attitudes toward debt financing in family firms. Using a sample of 280 German family firms, we find significant relationships between both financial knowledge and positive experience with debt suppliers and owner–managers' financial attitudes toward debt. Our findings show that family commitment moderates these relationships such that high family commitment increases the impact of prior experience with debt suppliers, though the effect of economic goal orientation is lowered and reversed. Overall, we contribute to research on financial decision making, capital structure, and social capital in family firms.     

Assumptions in Decision Making Scholarship: Implications for Business Ethics Research

While decision making scholarship in management has specifically addressed the objectivist assumptions within the rational choice model, a similar move within business ethics has only begun to occur. Business ethics scholarship remains primarily based on rational choice assumptions. In this article, we examine the managerial decision making literature in order to illustrate equivocality within the rational choice model. We identify four key assumptions in the decision making literature and illustrate how these assumptions affect decision making theory, research, and practice within the purview of business ethics. Given the breadth of disciplines and approaches within management decision making scholarship, a content analysis of management decision making scholarship produces a greater range of assumptions with finer granularity than similar scholarship within business ethics. By identifying the core assumptions within decision making scholarship, we start a conversation about why, how, and to what effect we make assumptions about decision making in business ethics theory, research, and practice. Examining the range of possible assumptions underlying current scholarship will hopefully clarify the conversation and provide a platform for future business ethics research.     

When the American dream fails: The effect of perceived economic inequality on present-oriented behavior

Economic inequality is worsening worldwide and is associated with various social problems. Although research on inequality has been conducted in various academic fields, research on how perceived inequality affects individual decision making is relatively limited in the marketing field. Recognizing this gap, this study examines how perceived economic inequality can affect individual behavior and decision making from the perspective of time frame. The results of four studies reveal that perceived economic inequality can induce present-oriented behavior and suggest that perceived economic mobility accounts for this relationship. This study demonstrates that present-oriented and shortsighted behaviors, which are usually considered characteristics of the poor, can occur due to the perceptions of the environment beyond class. It implies that the macro level of economic inequality can influence an individual's decision making at the micro level.     

The role of positive emotions in experiential decisions

This research examines how consumers experience decision making for experiential products such as vacations. We combine data from 1) ethnographic interviews, 2) online community discussion forums, and 3) an introspective vacation-planning task to explore the experience of emotion in the decision process and to develop a new model of decision making that extends extant decision theories. We find that consumers experience a variety of positive emotions as they plan vacations, from facilitative feelings that guide the plan to fantasy feelings consumed for pleasure. Positive emotions are most evident in reaction to imagery and when the consumer's self identity is salient, and often precede more analytic information processing. Overall, this research offers a richer understanding of the emotional nature of consumer decision making for experiential products and services.     

Discussing Brand Information on Social Networking Sites: Implications for Global Brand Marketing

Due to the proliferation of information that global brands disseminate on social networking sites (SNS), how to induce SNS users to discuss such information is a topic deserving intensive research efforts. In recent years, scholars have begun to explore the topic from several perspectives. However, there is still a lack of conceptual theorization and empirical verification with more comprehensive probing into the psychological processes through which SNS users become motivated to engage in discussing brand information provided by brand marketers. The current study, based on integrative reconfiguration of relevant theories and a large-scale survey, develops and validates a theoretical model to explicate the key determinants in this regard. Data were obtained from 1518 respondents, who have been active SNS users for at least one year. Confirmatory factor analysis and structural equation modeling facilitate validation of the model. According to the research findings, affective attitude is a stronger factor than instrumental attitude in predicting the discussion behavior of SNS users relative to brand information intentionally designed and disseminated by brand marketers. Additionally, past behavior in discussing online business news, alongside subjective norm and perceived behavioral control, exercises significant effect on such behavior. Most noteworthy, identity construction generates the greatest impact on behavioral intention and actual behavior among SNS users to discuss brand information that brand marketers provide to them. In general, the current study contributes to making better use of SNS for global brand marketing.     

Research and experience in management: The need for a synthesis

Intuitive judgments based on the experience of managers have been the basis for decision making. Because the speed of environmental and technological change reduces the usefulness of experience, company executives are increasing their use of research on management problems to supplement experience-based practices. Two fundamental approaches to management—the behavioral view and the decision-making view—are examined in order to resolve the conflict over the relative importance of research and experience. The synthesis of experience and research in the practice of management is described and the evolution toward the more effective utilization of research as a source of management competence is forecast.     

Household preference revisions and decision making: The role of disconfirmation

In this paper, we examine the role of disconfirmation as an important determinant of household preference revisions and decision making. Although prior research has examined decision influence and information exchange in household decision making, the impact of disconfirmation on individual family member preferences and the joint household preference has not been explicitly studied. Analogous to the main types of social influence found within groups, we identify two types of disconfirmation that impact individual preferences arising from family interaction or discussion. These two types of disconfirmation are informational disconfirmation, related to new product information revealed in family discussion being different than one's prior beliefs, and preference disconfirmation, where a family member has incorrect expectations of the preferences of other influential household members. An empirical study involving a household vacation decision demonstrates significant disconfirmation effects in explaining individuals' post-discussion preferences, as well as the joint household preference and decision. Based on the empirical results, we discuss various implications and suggest future research to study the specific consequences of disconfirmation in household decisions.