INTERACTION PROCESS ANALYSIS BETWEEN PERCEIVED FINANCIAL CONSTRAINTS AND BEHAVIORAL PATTERNS IN CONSUMERS’ PSYCHOLOGY

Authors

  • De Witt Hamilton Business School, University of Eastern Finland, Finland
  • Harley Szent- Gyorgyi Gothenburg School of Economics, University of Gothenburg, Sweden
  • Reece Berk Wadsworth Department of Finance Aalto University, Finland
  • Bailey Meulenberg Gothenburg School of Economics, University of Gothenburg, Sweden

Keywords:

Financial constraints, Resource scarcity, Choice restriction, Social comparison, Environmental uncertainty

Abstract

Financial constraints are economic limitations on behavior. Given that millions of people experience chronic or episodic financial constraints, we sought to review research that provides insight into how they affect consumer behavior. We propose an integrative framework that draws insights from multiple literatures that have examined financial constraints from different perspectives. The framework distinguishes between four perspectives, which are rooted in literatures on resource scarcity, choice restriction, social comparison, and environ-mental uncertainty and highlights different temporal stages of responding to financial constraints, distinguishing between reacting, coping, and adapting. Beyond the obvious negative effects of financial constraints, our framework emphasizes consumer resilience, highlighting that consumers often successfully cope with and devise adaptive strategies to deal with financial constraints. By broadening the behavioral and temporal scope of financial constraints considered within consumer psychology, this framework helps us to understand the often strong and sometimes counterintuitive effects of financial constraints on consumer behavior

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Published

2022-04-28

How to Cite

Hamilton, D. W., Gyorgyi, H. S.-., Wadsworth, R. B., & Meulenberg, B. (2022). INTERACTION PROCESS ANALYSIS BETWEEN PERCEIVED FINANCIAL CONSTRAINTS AND BEHAVIORAL PATTERNS IN CONSUMERS’ PSYCHOLOGY. Accounting, Organization & Economics, 1(3), 279 - 309. Retrieved from https://fortunepublishing.org/index.php/aoe/article/view/107

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Articles