Articlegreen2020

Regulatory focus and investment advisers' recommending behavior

Soo Yeong Ewe · Christina Kwai Choi Lee · Ferdinand A. Gul

10 citations0/0 files storedInternational Journal of Bank Marketing

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Decision-Making and Behavioral Economics Financial Literacy, Pension, Retirement Analysis Behavioral Health and Interventions

Abstract

Purpose This study examines the effect of a regulatory-focused prime (i.e. a brochure with a picture and message) on the recommending behavior of investment advisers in the context of an investment decision. Design/methodology/approach Three experiments were conducted with 468 participants, mostly from the financial services industry. Study 1 examined the direct effect of a regulatory-focused prime on an investment adviser's recommending behavior, whereas Study 2 examined the moderating role of regulatory fit on such behavior. Study 3 validated the findings. Findings The results provide evidence that a message using visual and textual cues based on a promotion and prevention regulatory focus may trigger a preference in an investment adviser's product recommendation. A promotion (prevention)-focused framed message will trigger the recommendation of an investment plan with a higher but riskier (safe and stable) potential return. However, when the same prime is presented with details of a performance incentive scheme, the effect of the prime is reduced when there is a regulatory nonfit between the prime and the message relating to the performance incentive scheme. Practical implications The findings highlight the importance of understanding how regulatory-focused stimuli may subconsciously influence the recommendation of investment advisers as heuristics used in decision-making, thereby influencing their clients' investment decisions. Originality/value Past studies have focused on how regulatory-focused visual and message cues influence consumer decision-making. This study provides empirical evidence regarding the influence of regulatory-focused prime on an investment adviser's behavior when providing investment advice.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 10 citations exist upstream.

References

1974Judgment under Uncertainty: Heuristics and Biases 1997Beyond pleasure and pain.1998Promotion and Prevention: Regulatory Focus as A Motivational Principle 1998All Frames Are Not Created Equal: A Typology and Critical Analysis of Framing Effects 2000Multicultural minds: A dynamic constructivist approach to culture and cognition.1999“I” Value Freedom, but “We” Value Relationships: Self-Construal Priming Mirrors Cultural Differences in Judgment 1987Experts, amateurs, and real estate: An anchoring-and-adjustment perspective on property pricing decisions 1998Performance incentives and means: How regulatory focus influences goal attainment.

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.