Too Constrained to Converse: The Effect of Financial Constraints on Word-of-Mouth

Paley, Anna; Tully, Stephanie; Sharma, Eesha

doi:10.1093/jcr/ucy040

Cited by 23 publications

(24 citation statements)

References 48 publications

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“…While our research suggests that communication partners will more positively receive excuses about limited money, we did not explore how people feel about themselves when they communicate limited money or limited time. In fact, previous research shows that financially constrained consumers engage in less purchase-related word-of-mouth because they believe that rehearsing their monetary expenditures will reinforce negative feelings about their limited financial situation (Paley, Tully, & Sharma, 2019). It is possible that giving a financial excuse damages self-esteem and results in a negative emotional experience for the excuse-giver.…”

Section: Limitations and Future Directionsmentioning

confidence: 99%

Communicating Resource Scarcity and Interpersonal Connection

Donnelly

Wilson

Whillans³

et al. 2021

J Consum Psychol

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Consumers often cite insufficient time or money as an excuse for rejecting social invitations. We explore the effectiveness of these excuses in preserving interpersonal relationships. Six studiesincluding perceptions of couples planning their weddingdemonstrate that using time scarcity as an excuse (e.g., "I don't have time") is less effective than using money scarcity as an excuse (e.g., "I don't have money"). These effects are driven by the perceived controllability of these resources: Consumers accept that the availability of financial resources may be less subject to personal control than the availability of time. As a result, excuses citing time constraints are seen as less trustworthy and reduce feelings of interpersonal closeness and helping behavior. Despite the robustness of the effect, excuse-givers do not predict the relational disadvantages of citing time constraints. Communication that highlights the relative uncontrollability of time increases the effectiveness of these excuses. These findings advance our understanding of the role of references to time and money in consumer behavior, and provide practical insights to minimize social repercussions when rejecting social invitations.

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Section: Limitations and Future Directionsmentioning

confidence: 99%

Communicating Resource Scarcity and Interpersonal Connection

Donnelly

Wilson

Whillans³

et al. 2021

J Consum Psychol

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“…Wealth plays an important role in society, impacting how consumers respond in the marketplace. Both objective and subjective wealth have been shown to influence consumers throughout the decision making process, including what information they attend to (e.g., Sharma & Alter, 2012), whether and how they plan their behavior (Fernbach et al, 2015), whether and how they spend money or use borrowed funds (Ailawadi et al, 2001;Carroll, 1997;Cole et al, 2008;De La Rosa & Tully, forthcoming;Karlsson et al, 2004Karlsson et al, , 2005Piff et al, 2010;Sussman & Shafir, 2012;Tully et al, 2015), as well as their postpurchase reactions (Dias et al, 2020;Paley et al, 2019).…”

Section: Consumer Financesmentioning

confidence: 99%

Consumer wealth

Tully

Sharma

2021

Consumer Psychology Review

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This article focuses on understanding the meaning of consumer wealth. Research on consumer wealth uses a variety of terminology, including but not limited to economic recessions, financial constraints, financial deprivation, financial satisfaction, financial scarcity, financial well-being, income, poverty, slack, socio-economic status (SES), subjective SES, and subjective wealth. We first review and integrate multiple streams of research to provide a discussion on the conceptualization and measurement of objective wealth (i.e., consumers' actual financial resource levels) and subjective wealth (i.e., subjective assessments of consumers' financial resource levels). We then propose an organizing framework that explains the process by which consumers construct subjective wealth perceptions, identifying different routes that can be employed, as well as common cognitive and affective responses that operate across routes to shape final assessments. This framework provides greater understanding of why subjective wealth often diverges from objective wealth, why and how certain individual differences and contextual factors influence subjective wealth perceptions, and how differences across measures of consumer wealth may confer important differences that can influence downstream responses. Our framework identifies current gaps in the literature, offering new directions for future research, along with testable hypotheses related to the antecedents and consequences of subjective wealth.

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“…In general, WOM includes all types of non-commercial and interpersonally driven communications people make to convey their experiences and perceptions on a product or a brand (Arndt, 1967; Chevalier and Mayzlin, 2006; Westbrook, 1987). As its early conceptualization, a great deal of research has concentrated its focus on WOM with an appreciation of its fundamental impact on consumer purchasing attitude and behavior (Paley et al , 2019). The significance of WOM is further intensified by its ability to influence 70% of buying processes (Balter, 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

Bridging the learning divide: the role of institutional WOM in stimulating emerging countries’ SMEs internationalization

Aliedan

2021

RIBS

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Purpose The purpose of this study is to explore the relationship between experiential knowledge of foreign markets, institutional word of mouth (WOM) and small and medium enterprises’ (SMEs’) internationalization. Specifically, it aims to provide explanations of what and how cross-border experiential knowledge can be institutionally transmitted for SMEs’ internationalization purposes via WOM. Design/methodology/approach An exploratory approach was adopted within the phenomenological/qualitative research tradition. The data collection process was conducted through 23 semi-structured interviews with founders and chief executive officers of Saudi international SMEs. Findings The study’s findings confirm that SMEs seeking productive opportunities in the international market could improve their internationalization experience if they made proper use of institutional WOM as a catalyst for inter-firm learning. This concerns SMEs from emerging countries in particular as they are usually in a bid to legitimatize their presence in foreign markets. Originality/value The triadic relationship between experiential knowledge, institutional WOM and internationalization has not been previously researched. The current study, therefore, clearly adds value to the concept of WOM from three dimensions: institutionalization, cross-borderity and SMEs’ internationalization.

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Too Constrained to Converse: The Effect of Financial Constraints on Word-of-Mouth

Cited by 23 publications

References 48 publications

Communicating Resource Scarcity and Interpersonal Connection

Communicating Resource Scarcity and Interpersonal Connection

Consumer wealth

Bridging the learning divide: the role of institutional WOM in stimulating emerging countries’ SMEs internationalization

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