Evidence for Opportunity Cost Neglect in the Poor

Plantinga, Arnoud; Krijnen, Job; Zeelenberg, Marcel; Breugelmans, Seger M.

doi:10.1002/bdm.2041

Cited by 20 publications

(29 citation statements)

References 36 publications

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“…The results show that reminding people of opportunity cost, prior to their donation decision, decreases their willingness to donate. The results for the first decision are in line with the findings from proself spending (Frederick et al, 2009;Plantinga et al, 2018), and also how people react to economic evaluations when asked to donate time (DeVoe and Pfeffer, 2010). However, the opportunity cost effect decreased from 13.7 to 4.4% when participants made sequential donation decisions.…”

Section: Discussion Studysupporting

confidence: 79%

“…In these studies, opportunity cost became salient simply by adding the text "save the money for other purchases" next to the not-purchase-option. Previous studies investigating opportunity cost suggest that people primarily attend to explicitly presented options (Jones et al, 1998;Greenberg and Spiller, 2016;Plantinga et al, 2018) and thus, opportunity cost neglect occurs when other options (i.e., alternative use of money) remain implicit (Jones et al, 1998;Frederick et al, 2009).…”

Section: Introductionmentioning

confidence: 99%

“…Opportunity cost neglect has up until now mainly been studied for consumer and financial decisions (Jones et al, 1998;Frederick et al, 2009;Greenberg and Spiller, 2016;Plantinga et al, 2018). For example, previous studies on opportunity cost have focused on whether people are willing to buy an item for themselves or not (e.g., Frederick et al, 2009).…”

Section: Introductionmentioning

confidence: 99%

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Opportunity Cost in Monetary Donation Decisions to Non-identified and Identified Victims

et al. 2020

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Do people consider alternative uses of money (i.e., opportunity cost) when asked to donate to a charitable cause? To answer this question, we examined the effect of providing versus not providing participants with an opportunity cost reminder when they are asked to donate money to causes with identified and non-identified victims. The results of two studies show that when making one-time donation decisions, people become less willing to donate to charity when reminded of opportunity cost, but mainly for non-identified victims. Moreover, framing the opportunity cost reminder as prosocial versus proself did not influence willingness to donate. Overall, our evidence suggests that opportunity cost reminders influence people's donation behavior depending on whether charities identify supported victims or not.

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Section: Discussion Studysupporting

confidence: 79%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Opportunity Cost in Monetary Donation Decisions to Non-identified and Identified Victims

et al. 2020

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“…Although research has typically found that consumers neglect opportunity costs and tradeoffs (Frederick, Novemsky, Wang, Dhar, & Nowlis, 2009)-that is, consumers rarely think about what they are giving up when they make a purchasethis may be less true for consumers who are financially constrained. There is some evidence that opportunity costs may be more psychologically salient for consumers facing scarcity (Shah et al, 2015;Spiller, 2011), though other evidence suggests that low and high income consumers are equally likely to spontaneously consider opportunity costs (Plantigna, Krijnen, Zeelenberg, & Bruegelmans, 2018). For example, in one study, participants completed a hypothetical shopping task.…”

Section: Stress and Anxiety Feeling Lack Of Controlmentioning

confidence: 99%

How Financial Constraints Influence Consumer Behavior: An Integrative Framework

Mittal²,

et al. 2018

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Financial constraints are economic limitations on behavior. Given that millions of people experience chronic or episodic financial constraints, we sought to review research that provides insight into how they affect consumer behavior. We propose an integrative framework that draws insights from multiple literatures that have examined financial constraints from different perspectives. The framework distinguishes between four perspectives, which are rooted in literatures on resource scarcity, choice restriction, social comparison, and environmental uncertainty and highlights different temporal stages of responding to financial constraints, distinguishing between reacting, coping, and adapting. Beyond the obvious negative effects of financial constraints, our framework emphasizes consumer resilience, highlighting that consumers often successfully cope with and devise adaptive strategies to deal with financial constraints. By broadening the behavioral and temporal scope of financial constraints considered within consumer psychology, this framework helps us to understand the often strong and sometimes counterintuitive effects of financial constraints on consumer behavior.

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“…This measure was used in the Biannual European Social Survey (http://www.europeansocialsurvey.org/). Support of validity for this measure is shown by its relationship with family income (Plantinga, Krijnen, Zeelenberg, & Breugelmans, 2018).…”

Section: Methodsmentioning

confidence: 90%

The Role of Socioeconomic Status in the Relationship Between Career Aspirations and Engagement in Career Exploration

Sawitri¹,

Suryadi²

2020

Proceedings of the International Conference on Educational Psychology and Pedagogy - "Diversity in Education" (ICEPP 2019)

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Career exploration captures the gathering of information relevant to career progress. Career explorations in adolescents are crucial to examine, as they are essential actions required to realise one's career aspirations. Career aspirations are important to study, as they are forerunners to future career choices and attainment. However, little is known about how socioeconomic status influences the relationship between career aspirations and career exploration. This study aimed to investigate the moderating role of socioeconomic status in the relationship between career aspirations and career exploration. We collected data from 589 students from two state high schools in Semarang, Indonesia, M age = 15.93 years, SD age = .53, 52.6% female. We used the Career Aspirations Scale (α = .70), Career Exploration Scale (α = .82), and demographic questions. Hierarchical regression analyses demonstrated that as career aspirations increased, career exploration increased for high and low socioeconomic status groups, but increased more noticeably for the high socioeconomic status group. Our results highlight the important role of socioeconomic status in the way career aspirations lead to engagement in exploration of self and the world of work. Recommendations for students, policy maker, and practitioners are discussed.

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Evidence for Opportunity Cost Neglect in the Poor

Cited by 20 publications

References 36 publications

Opportunity Cost in Monetary Donation Decisions to Non-identified and Identified Victims

Opportunity Cost in Monetary Donation Decisions to Non-identified and Identified Victims

How Financial Constraints Influence Consumer Behavior: An Integrative Framework

The Role of Socioeconomic Status in the Relationship Between Career Aspirations and Engagement in Career Exploration

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