Beyond Income: Dynamic Consumer Financial Vulnerability

Salisbury, Linda Court; Nenkov, Gergana Y.; Blanchard, Simon; Hill, Ronald Paul; Brown, Alexander; Martin, Kelly D.

doi:10.1177/00222429221150910

Cited by 26 publications

(12 citation statements)

References 83 publications

(100 reference statements)

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“…This approach is consistent with the capabilities approach to improving individual well-being (Robeyns, 2005). It also resonates with the strengths-based approach to empowerment (Raciti et al, 2022) and other recent research (Salisbury et al, 2023) that demonstrates that vulnerability is a transient state, not a trait of certain populations or consumers.…”

Section: Service Empowerment Modelsupporting

confidence: 81%

“…Recent research has noted the key role that financial vulnerability plays in most experiences of consumer vulnerability (Salisbury et al , 2023). This research also notes how factors such as access to financial resources from financial institutions and social networks; consumer choices regarding consumption and savings; and consumer traits such as financial literacy all combine to establish a fluid probability of future harm.…”

Section: Discussionmentioning

confidence: 99%

“…Thus, our research makes a particular contribution in the financial context by demonstrating how the SEM can be applied in a microfinance organization to reduce financial vulnerability. A key factor in reducing the likelihood of harm arising from financial vulnerability is the consumer’s ability to proactively access new financial resources and change current savings and spending decisions when financial vulnerability increases (Salisbury et al , 2023).…”

Section: Discussionmentioning

confidence: 99%

“…In contrast to this previous research, more recent definitions have emphasized that consumer vulnerability is a temporary state perceived by the consumer, not a durable trait or deficit in the consumer (Raciti et al , 2022). With regard to financial vulnerability in particular, Salisbury and colleagues (2023) conceptualize it as a probability of future harm that can rise and fall for any consumer based on a complex set of factors, including access to financial resources, environmental factors and consumer characteristics. Therefore, this concept should be referred to as consumers experiencing vulnerability rather than consumers who are vulnerable.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Service researchers have been tasked with “improving well-being and relieving suffering in the most disadvantaged and vulnerable members of society” (Cheung and McColl-Kennedy, 2019, p. 661). Poverty is a key contributor to consumer vulnerability (Baker et al , 2005; Hill and Sharma, 2020) and in prior research on consumer vulnerability, financial vulnerability is frequently a key factor (Salisbury et al , 2023). Alleviating poverty is listed as “Goal 1” in the United Nations’ sustainable development goals: “End poverty in all its forms everywhere” (United Nations, 2015).…”

mentioning

confidence: 99%

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The service empowerment model: a collaborative approach to reducing vulnerability

Koppenhafer

Scott

Weaver

et al. 2023

JSM

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Purpose Service researchers have been tasked with improving the well-being of consumers experiencing vulnerability. The current research aims to demonstrate how these consumers can experience empowerment through transformative service improvements to the traditional microfinance model. Design/methodology/approach To ground the research in a real-world setting with consumers experiencing vulnerability, the research team worked with a nonprofit microfinance organization offering loans to communities of Indigenous women entrepreneurs. The research team worked in six communities and conducted over 25 borrower interviews and 14 staff and volunteer interviews totaling 1,200 min of recorded content. Findings The present investigation of a unique approach to microfinance offers a new theoretical model, the service empowerment model (SEM), which illustrates how empowerment emanates from processes and outcomes at three distinct levels: micro, meso and macro. Recognizing that change occurs individually and also at familial and societal levels begins to challenge deeply rooted structural and cultural norms involved in the services ecosystem. Practical implications Originating from the microfinance service setting, the SEM can be explored, tested and implemented as a pilot program in a variety of service settings that involve transformative service initiatives (e.g. homelessness, refugees, etc.). Social implications As society pursues solutions to the pressing problems of consumers experiencing vulnerability, the present research offers critical insights into how services should be designed. Originality/value The present research defines a new term, service empowerment, and creates a new theoretical model, the SEM, to aid in improving transformative service initiatives.

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Section: Service Empowerment Modelsupporting

confidence: 81%

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Theoretical Backgroundmentioning

confidence: 99%

mentioning

confidence: 99%

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The service empowerment model: a collaborative approach to reducing vulnerability

Koppenhafer

Scott

Weaver

et al. 2023

JSM

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An integrative theory of resource discrepancies

Cannon,

Goldsmith,

Roux

2024

J Consum Psychol

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A great deal of work in consumer psychology has been devoted to understanding how individuals manage resource discrepancies. This includes tangible resources – such as money, food, and products – as well as intangible resources – such as time, skills, and social relationships. Resource discrepancies can either be positive – as in the case of having substantial wealth – or negative – as in the case of poverty. Several constructs across the behavioral sciences have been introduced to describe how consumers perceive their various resource discrepancies including, but not limited to, power, social status, scarcity, inequality, and social class. However, little guidance is provided to understand when and why these resource‐based constructs can produce both overlapping and opposing consequences. This conceptual article provides a resolution to this issue by introducing an integrative theory that situates these constructs within the same unifying framework based on two fundamental dimensions: high (vs. low) personal control and self‐ (vs. other‐) dependence. Based on this framework, we offer eight testable propositions and develop a research agenda for academics interested in studying resource discrepancies.

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Life insurance, loss aversion, and temporal orientation: a field experiment and replication with young adults

Blanchard,

Trudel

2023

Mark Lett

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Beyond Income: Dynamic Consumer Financial Vulnerability

Cited by 26 publications

References 83 publications

The service empowerment model: a collaborative approach to reducing vulnerability

The service empowerment model: a collaborative approach to reducing vulnerability

An integrative theory of resource discrepancies

Life insurance, loss aversion, and temporal orientation: a field experiment and replication with young adults

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