Explanations of effects of prior income changes on buying decisions

Journal article | Zeitschriftenartikel

Two experiments with undergraduates as subjects tested explanations of how a prior temporary income change influences choices between buying and deferred buying. In Experiment 1 predictions from the behavioral life-cycle theory (Shefrin & Thaler, 1988), the renewable resources model (Linville & Fischer, 1991) and the loss-sensitivity principle (Garling & Romanus, 1997) were contrasted. The results are inconsistent with the latter two explanations since the framing of buying as positive (buying a new model of a product) or negative (replacing a broken product) did not interact with the income change. Congruent with the behavioral life-cycle theory, willingness to buy was greater when subjects received a temporary income increase than when they received a temporary income decrease although total assets were equal. Further support for the behavioral life-cycle theory is obtained in Experiment 2 where four income-change conditions and durable and nondurable goods are compared.

Object Details

• ISSN: 0167-4870
• Extent: Seite(n): 449-463
• Language: Englisch
• Notes: Status: Veröffentlichungsversion; begutachtet (peer reviewed)

References and Relationships

• Bibliographic citation: Journal of Economic Psychology, 20(4)

Classification and Topics

• Subject: Psychologie ; Soziologie, Anthropologie ; angewandte Psychologie ; Wirtschaftssoziologie ; Konsumverhalten ; Kaufverhalten ; Entscheidungsfindung ; Einkommen ; Sparen

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Karlsson, Niklas ; Gärling, Tommy ; Selart, Marcus
• Event: Veröffentlichung
• (where): Niederlande
• (when): 1999

Further information

• DOI: https://doi.org/10.1016/S0167-4870(99)00017-3
• URN: urn:nbn:de:0168-ssoar-398977
• Rights: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
• Last update: 21.06.2024, 4:27 PM CEST