TY - JOUR
T1 - Hyperopia and frugality
T2 - Different motivational drivers and yet similar effects on consumer spending
AU - Pan, Li (Sunny)
AU - Pezzuti, Todd
AU - Lu, Wei
AU - Pechmann, Cornelia (Connie)
N1 - Funding Information:
This research was funded by National Natural Science Foundation of China awarded to Wei Lu [grant number 71372105 ] and by funds provided by the Complex Engineering Systems Institute of Chile, ISCI (ICM-FIC: P05-004-F , CONICYT: FB0816 ). Neither of the funding sources had involvement in the study design; in the collection, analysis or interpretation of the data; in the writing of the report; or in the decision to submit the article for publication.
Publisher Copyright:
© 2018 Elsevier Inc.
PY - 2019/2
Y1 - 2019/2
N2 - The effects of hyperopia and frugality on spending have not been directly compared. Moreover, previous research on hyperopia has focused on the avoidance of luxury spending, rather than spending on routine consumer goods. We address these gaps in the literature by comparing how hyperopia and frugality affect monthly spending, and spending on ordinary consumer goods. Our survey indicates that both tendencies relate to lower monthly spending. Our shopping experiment extends these findings by showing that both hyperopic and frugal consumers avoid purchasing higher priced consumer goods when lower priced substitutes are available. Our findings contribute to the literature, which suggests that hyperopic consumers avoid indulgent luxuries, by showing that they also avoid higher priced routine consumer goods and exhibit lower monthly spending, similar to frugal consumers, but for fundamentally different reasons. Hyperopia inhibits spending by lowering the motivation to spend, while frugality inhibits spending by increasing the motivation to save.
AB - The effects of hyperopia and frugality on spending have not been directly compared. Moreover, previous research on hyperopia has focused on the avoidance of luxury spending, rather than spending on routine consumer goods. We address these gaps in the literature by comparing how hyperopia and frugality affect monthly spending, and spending on ordinary consumer goods. Our survey indicates that both tendencies relate to lower monthly spending. Our shopping experiment extends these findings by showing that both hyperopic and frugal consumers avoid purchasing higher priced consumer goods when lower priced substitutes are available. Our findings contribute to the literature, which suggests that hyperopic consumers avoid indulgent luxuries, by showing that they also avoid higher priced routine consumer goods and exhibit lower monthly spending, similar to frugal consumers, but for fundamentally different reasons. Hyperopia inhibits spending by lowering the motivation to spend, while frugality inhibits spending by increasing the motivation to save.
KW - Frugality
KW - Hyperopia
KW - Price effects
KW - Saving
KW - Spending
UR - http://www.scopus.com/inward/record.url?scp=85052127479&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2018.08.011
DO - 10.1016/j.jbusres.2018.08.011
M3 - Article
AN - SCOPUS:85052127479
SN - 0148-2963
VL - 95
SP - 347
EP - 356
JO - Journal of Business Research
JF - Journal of Business Research
ER -