The Mental Accounting of Resource Tradeoffs during the Entrepreneurial Plunge Decision

Ramesh, Anusha; Dew, Nicholas; Read, Stuart

doi:10.5465/ambpp.2014.12141abstract

Cited by 3 publications

(7 citation statements)

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“…Because customer participation can bring the above advantages, scholars have found that customer participation can enhance the effect on customers' cognition, including perceived justice [2,25,28,39,41], perceived match [31], perceived value [41], perceived control [42], and perceived co-creation [38]. Furthermore, positive and negative emotions [43] and affect [44] have been used to explain the role of customer participation in customers' emotions. Additionally, the roles of recovery effort [36] and customer participation readiness [32] have been discussed to better understand the impact of individual factors on the effect of customer participation.…”

Section: Customer Participation In Service Recoverymentioning

confidence: 99%

“…This phenomenon reveals why individuals often make decisions in an unexpected way, such as when an individual's decision contradicts the simplest rational economic rule. In mental accounting theory, Thaler [13] highlights three components of mental accounting: the labeling of activities for specific accounts, the framing of gains and losses, and the frequency with which accounts are evaluated [43]. In this paper, we mainly focus on labeling as a core mental accounting issue that has several testable implications for understanding the influence of customer participation types on perceived justice.…”

Section: Mental Accounting: Bridging the Relationship Between Customementioning

confidence: 99%

“…Labeling is fundamental to mental accounting because individuals must label resources to remember and track them, which then affects the individual's calculation of gains and losses and making of unexpected decisions [13,43]. According to mental accounting, in principle individuals always treat their resources equally; in fact, however, they treat them unequally.…”

Section: Mental Accounting: Bridging the Relationship Between Customementioning

confidence: 99%

“…People in the former scenario are unlikely to spend 200 RMB to make up for the ticket, while in the latter, they will continue to watch the concert [44]. Therefore, labeling does not lead to aggregate resources and freely arbitraging among them; rather, it produces a systematic biasing of resource valuations [43].…”

Section: Mental Accounting: Bridging the Relationship Between Customementioning

confidence: 99%

“…To avoid the regret and disappointment from having wasted their time, individuals always undervalue their time resources [43]. Thus, customers may not be sensitive to the time and energy that they have invested in service recovery.…”

Section: Customer Participation and Perceived Justicementioning

confidence: 99%

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The Effect of Customer Participation Types on Online Recovery Satisfaction: A Mental Accounting Perspective

shao

2018

Future Internet

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With the high popularity of the Internet, online trading has gradually replaced the traditional shopping model and extended to every corner of social life. However, online trading cannot avoid failures; thus, understanding how firms can best recover customers in online contexts to keep customer loyalty is very important. This study investigates the mechanisms by which customer participation types (physical, mental, and emotional) promote customers’ perceived justice and post-recovery satisfaction from a mental accounting perspective. Furthermore, the moderating effects of two modes of online apology speech acts (direct and indirect) on customer participation and perceived justice are investigated. A total of 1083 Chinese tourists who have purchased a Wi-Fi rental service in the past year were contacted according to the database provided by two travel agencies, and 329 stated having experienced an online recovery service and participated in the survey; 297 valid questionnaires were collected. Among them, 48.82% were males and 51.18% females. Most of the respondents were aged 20–35 years. By carrying out data analysis by partial least squares structural equation modeling (PLS-SEM) using SmartPLS, the results show that, first, only mental and physical participation can enhance perceived justice, while emotional participation does not influence perceived justice. Second, the positive influence of mental participation on perceived justice is most significant. Third, only when the service staff adopts the indirect mode to express an online apology, mental and physical participation can enhance perceived justice.

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Section: Customer Participation In Service Recoverymentioning

confidence: 99%

Section: Mental Accounting: Bridging the Relationship Between Customementioning

confidence: 99%

Section: Mental Accounting: Bridging the Relationship Between Customementioning

confidence: 99%

Section: Mental Accounting: Bridging the Relationship Between Customementioning

confidence: 99%

Section: Customer Participation and Perceived Justicementioning

confidence: 99%

See 3 more Smart Citations

The Effect of Customer Participation Types on Online Recovery Satisfaction: A Mental Accounting Perspective

shao

2018

Future Internet

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Entrepreneurial Accounting as a Driver of SMEs’ Sustainability: A Systematic Review

Mustapha,

Sakariyau,

Zubairu

et al. 2023

jobbe

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Purpose: This paper conducted a systematic review of entrepreneurial accounting (EA) articles published over the last ten years (2012 – 2022). Using the Systematic Qualitative Assessment Techniques (SQAT) to review 79 EA journal articles to provide an understanding of the antecedent and importance of the concept on business venture survival or otherwise. Methodology: This paper analysed the time distribution, geographic distribution, theory used, article type, data collection methodologies and themes of the EA article reviewed. Findings: The key findings show that EA interest has increased in Asia and Africa over the last decade, while Oceania (Australasia) were least represented. The most striking theme out of the five identified is the impact of EA as the heart of business ventures’ sustainability, while the resource-based theory was most used to provide a clear understanding of the concept of the need for inherent management and cost accounting skills. Implications: Findings from the review confirm the importance of entrepreneurial accounting (EA) in SMEs as scholarly work has increased in recent times in the most developing economies, especially in Asia and Africa. This study recommended that EA skills should form part of the funding requirements for start-ups in accessing finance. Keywords: entrepreneurial accounting, systematic review, sustainability, financial literacy.

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The Importance of Mental Accounting to Supporting the Perfromance of Learning Organizations

Mardan¹,

Muslim²,

Hamed³

2022

ijrssh

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The research aimed to introduce the concept of mental accounting and its management, the concept of mental accounting and its components, as well as the concept of a learning organization, its characteristics and accounting methods that support its performance, as well as a statement of the importance and role of mental accounting in supporting the performance of a learning organization, the study reached a set of results, the most important of which were: There is an effect of mental accountability, in both its implicit and explicit parts, on the performance of organizations in the industrial sector. It has been emphasized that the mental accounting components represented by innovation, education, experience, skill, and the technical, scientific, technical and media aspects have an effective role in strengthening the performance of the learning organization by supporting its representative characteristics and in line with the variables of the modern industrial environment.

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The Mental Accounting of Resource Tradeoffs during the Entrepreneurial Plunge Decision

Cited by 3 publications

References 0 publications

The Effect of Customer Participation Types on Online Recovery Satisfaction: A Mental Accounting Perspective

The Effect of Customer Participation Types on Online Recovery Satisfaction: A Mental Accounting Perspective

Entrepreneurial Accounting as a Driver of SMEs’ Sustainability: A Systematic Review

The Importance of Mental Accounting to Supporting the Perfromance of Learning Organizations

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