The Effect of Perceived Economic Mobility on Product Preferences and Choices: A Moderated Mediation Model

Abstract

The social-economic environment often plays an essential role in consumers' consumption, especially their subjective perception of the economic environment, perceived economic mobility, is closely related to their minds and behavior. Two studies were used to demonstrate the relationship between perceived economic mobility and product choice preference. It also explores the mediating effect of regulatory focus and the moderating effect of SES. Study 1 illustrates that individuals with a low (vs. high) perceived economic mobility prefer hedonic (vs. utilitarian) products. In addition, regulatory focus plays a mediating role, that is high (vs. low) perceived economic mobility can lead to promotion focus (vs. prevention focus) and thus results in the preference for hedonic products (vs. utilitarian products). Moreover, with the rise of SES, the effect of regulatory focus and perceived economic mobility on product preference has been robust. Study 2 also proves the main effect of perceived economic mobility and its interaction effect on product preference with SES, and there is no mediation effect of regulatory focus in study 2. By elucidating the important role that perceived economic mobility plays in product choice preference, the current study sheds new light on consumer research and has both theoretical and practical applications.