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Financial Scarcity and Normative Influence: Discretionary Purchase Decisions Across Cultures

Year: 2020

Type: preprint

Abstract: This research accounts for mixed findings in financial scarcity research by identifying culture-specific norms of deference that determine how consumers spend discretionary income. Three studies showed that when financially constrained, Americans were relatively less likely than Indians to prefer social (versus solitary) purchases. In addition, financially constrained Indian consumers focus on social norms of deference while making purchase decisions, which in turn increase their preference for social (versus solitary) purchases. Managerially, our findings suggest how practitioners can effectively promote different types of purchases under financial scarcity, by highlighting social norms, in their global communication strategy.

Source: SSRN Electronic Journal

Authors: Malika Malika, Durairaj Maheswaran, Shailendra Pratap Jain

Institutions: New York University, University of Washington

Language: English

Topic: Consumer Behavior in Brand Consumption and Identification

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: green

OpenAlex ID: W3206597136

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Cited by: 1

Related to: 10