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Hedging Your Bets and Assessing the Outcome
Hedging offsets the risk of an existing stake by counterbalancing it with a new stake-for example, complementing a bet on the race favorite with another bet on a promising upstart. In three experiments, the authors find that rather than assessing the hedge as a whole, people tend to react to the hedging outcome by focusing on either the original stake or the new one. The authors show that the hedger's focus is linked to a psychological motivation of whether to pursue safety and security by minimizing losses, known as a "prevention orientation," or to pursue growth and advancement by maximizing gains, known as a "promotion orientation."
When the context is gambling, prevention-oriented people fixate on what happens to the status quo stake, whereas promotion-oriented people attend to the new stake (Experiment 1). The same conclusion emerges from a stock-investing context (Experiments 2a and 2b). Moreover, because selective attention to status quo and change is the mechanism at work, the authors find that a choice between options characterized as maintaining the status quo elicits greater discrimination among prevention-oriented than promotion-oriented people; similarly, a choice between options characterized as initiating change elicits greater discrimination among promotion-oriented than prevention-oriented people (Experiment 3). These effects drive behavioral intentions.
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| JM4403 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Chicago: American Marketing Association 2007 |
|---|---|
| Edisi | Vol. 44, No. 3 (Aug., 2007), pp. 516-524 |
| Subjek | Consumer behavior Risk management Marketing strategy Business strategy Risk assessment Behavioral Economics in Marketing |
| ISBN/ISSN | 0022-2437 |
| Klasifikasi | NONE |
| Deskripsi Fisik | 9 p. |
| Info Detail Spesifik | Journal of Marketing |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |