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

Blanchard, Simon J.; Trudel, Remi

doi:10.1007/s11002-023-09712-4

Cited by 3 publications

(1 citation statement)

References 26 publications

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“…Accurate predictions of resource availability become even more critical as CFV increases. For consumers with limited access to financial resources, immediate access (e.g., credit for auto repair) can be more important than a long-term focus on resource accumulation (e.g., retirement savings) or obtaining life insurance (Blanchard and Trudel 2022). Yet, as we note, such behavioral choices often subject vulnerable consumers to judgments that allege that they somehow lack self-control or knowledge.…”

Section: Future Research: Consumer Well-beingmentioning

confidence: 99%

Beyond Income: Dynamic Consumer Financial Vulnerability

Salisbury¹,

Nenkov²,

Blanchard³

et al. 2023

Journal of Marketing

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This research challenges the entrenched belief that financial vulnerability only affects low-income consumers. Instead, most consumers, across the socioeconomic spectrum, experience varying degrees of financial vulnerability at different points during their lives, whether sporadically or chronically; vulnerability is dynamic and heterogeneous. The authors propose a novel, theory-driven definition of consumer financial vulnerability (CFV), as the risk of incurring future harm, given the consumer’s current access to various financial resources. A new conceptual framework decouples “vulnerability” from “harm,” to distinguish the state of CFV, its determinants (access to various, interdependent financial resources), and the constructs it foreshadows (multiple, interconnected forms of realized harm). Five research propositions follow: (1) financial resource volatility plays a vital role in CFV; (2) recovering from harm requires more financial resources than preventing harm (3) a multiperiod lens is needed to assess CFV accurately; (4) greater financial resource access can increase CFV; and (5) generalized financial literacy is not a panacea for mitigating CFV. The propositions and their implications for marketing strategy, public policy, and consumer well-being offer a rich research agenda. The authors propose a measure of CFV—the probability that financial resources are insufficient to meet or exceed a harm threshold—for future empirical investigations.

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Section: Future Research: Consumer Well-beingmentioning

confidence: 99%

Beyond Income: Dynamic Consumer Financial Vulnerability

Salisbury¹,

Nenkov²,

Blanchard³

et al. 2023

Journal of Marketing

View full text Add to dashboard Cite

show abstract

Empowering Informed Life Insurance Decisions: The Impact of Financial Literacy on Framing Effects

Bhatia,

Bhat,

Tikoria

2024

Services Marketing Quarterly

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The emotional path to influencing decision-making: harnessing emotions for better financial choices

Born,

Ashebir,

Brady

et al. 2024

Front. Behav. Econ.

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IntroductionAs life expectancy and expected years in retirement rise and family structures change, the need for personal financial protections, such as long term care (LTC) insurance, in managing financial risks associated with later life is expected to increase. Roughly half of American households are at risk of not being able to maintain their present standards of living post-retirement. Because both public and private health insurance programs typically do not cover LTC needs, which are associated with significant costs, the potential demand for LTC further exacerbates the retirement savings crisis.MethodsUsing an original survey experiment, in this high-powered study (N = 1,450), we examine the impact of a 2×3 framing intervention on participants' attitudes, emotions, and behavioral intentions toward LTC insurance.ResultsResults indicated that direct framing effects were present for people's reported emotions: those who received a loss frame (compared to a gain frame) were more likely to report anxiety-related emotions, and those who were exposed to a care choice narrative frame (compared to a family or a financial frame) were more likely to report calmness-related emotions. There were no significant interaction effects between loss/gain and narrative frames. A mediation analysis suggested that the framing impacts acted through these two different emotional pathways to yield more positive attitudes toward and behavioral intentions around LTC.ImplicationsThe study results underscore the need to examine how different frames affect emotional arousal as a potential pathway to impacting attitudes and behaviors. We found that both a loss framing and a narrative framing, operating through different emotional pathways, have the potential to be helpful to nudge people to hedge against a financial risk associated with older age.

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

Cited by 3 publications

References 26 publications

Beyond Income: Dynamic Consumer Financial Vulnerability

Beyond Income: Dynamic Consumer Financial Vulnerability

Empowering Informed Life Insurance Decisions: The Impact of Financial Literacy on Framing Effects

The emotional path to influencing decision-making: harnessing emotions for better financial choices

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