Susceptibility to and impact of interpersonal influence in an investment context

Journal of the Academy of Marketing Science

Volumn 37, Issue 4, 2009, Pages 488-503

  Hoffmann, A O I ^a,b   Broekhuizen, T L J ^c  

^a MAASTRICHT UNIVERSITY   (Netherlands)

^b NETSPAR   (Netherlands)

^c UNIVERSITY OF GRONINGEN   (Netherlands)

Author keywords

Investments; Reference group influence; Susceptibility to interpersonal influence

Indexed keywords

EID: 70350609891     PISSN: 00920703     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11747-008-0128-7     Document Type: Article

References (86)

1. Aaker, J. L. (1999). The malleable self: The role of self-expression in persuasion. JMR, Journal of Marketing Research, 36, 45-57. doi:10.2307/3151914.
2. Alba, J. W., & Hutchinson, J. W. (1987). Dimensions of consumer expertise. The Journal of Consumer Research, 13, 411-454. doi:10.1086/209080.
3. Alba, J. W., & Hutchinson, J. W. (2000). Knowledge calibration: What consumers know and what they think they know. The Journal of Consumer Research, 27, 123-156. doi:10.1086/314317.
4. Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103, 411-423. doi:10.1037/0033-2909.103.3.411.
5. Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74-94. doi:10.1007/BF02723327.
6. Barber, B. M., & Odean, T. (2000). Too many Cooks spoil the profits: The performance of investment clubs. Financial Analysts Journal, 70, 17-25 (January/February)doi:10.2469/faj.v56.n1.2326.
7. Batra, R., Homer, P. M., & Kahle, L. R. (2001). Values, susceptibility to normative influence, and attribute importance weights: A nomological analysis. Journal of Consumer Psychology, 11, 115-128. doi:10.1207/S15327663JCP1102_04.
8. Bauer, R., Cosemans, M., & Eichholtz, P. M. A. (2007). The performance and persistence of individual investors: Rational agents or tulip maniacs? EFA 2007 Ljubljana Meetings Paper.
9. Bazerman, M. H. (2001). Consumer research for consumers. The Journal of Consumer Research, 27, 499-504. doi:10.1086/319624.
10. Bearden, W. O., & Rose, R. L. (1990). Attention to social comparison information: An individual difference factor affecting consumer conformity. The Journal of Consumer Research, 16, 461-471. doi:10.1086/209231.
11. Bearden, W. O., Netemeyer, R. G., & Teel, J. E. (1989). Measurement of consumer susceptibility to interpersonal influence. The Journal of Consumer Research, 15, 473-481. doi:10.1086/209186.
12. Bearden, W. O., Netemeyer, R. G., & Teel, J. E. (1990). Further validation of the consumer susceptibility to interpersonal influence scale. Advances in Consumer Research, 17, Provo, UT: ACR, 770-776.
13. Bikhchandani, S., & Sharma, S. (2000). Herd behavior in financial markets: A review. IMF Staff Papers, 3(47), 279-310.
14. Bikhchandani, S., Hirschleifer, D., & Welch, I. (1992). A theory of fads, fashion, custom, and cultural change as informational cascades. The Journal of Political Economy, 100, 992-1026. doi:10.1086/261849.
15. Bloch, P. H., Ridgway, N. M., & Sherrell, D. L. (1989). Extending the concept of shopping: An investigation of browsing activity. Journal of the Academy of Marketing Science, 17, 13-21. doi:10.1007/BF02726349.
16. Brehm, J. W. (1966). A theory of psychological reactance. New York: Academic.
17. Bristol, T., & Mangleburg, T. F. (2005). Not telling the whole story: teen deception in purchasing. Journal of the Academy of Marketing Science, 33, 79-95. doi:10.1177/0092070304269754.
18. Browning, M., & Crossley, T. F. (2001). The life-cycle model of consumption and saving. The Journal of Economic Perspectives, 15, 3-22.
19. Burnkrant, R. E., & Cousineau, A. (1975). Informational and normative social influence in buyer behavior. The Journal of Consumer Research, 2, 206-215. doi:10.1086/208633.
20. Chao, A., & Schor, J. B. (1998). Empirical tests of status consumption: Evidence from women's cosmetics. Journal of Economic Psychology, 19, 107-131. doi:10.1016/S0167-4870(97)00038-X.
21. Cheek, J. M., & Buss, A. H. (1981). Shyness and sociability. Journal of Personality and Social Psychology, 41, 330-339. doi:10.1037/0022-3514.41.2.330.
22. Chin, W. W. (2000). Frequently asked questions-partial least squares & PLS-graph. Home Page. [On-line]. Available: http://disc-nt.cba.uh.edu/chin/plsfaq.htm. Access 17 July 2008.
23. Cialdini, R. B. (2003). Crafting normative messages to protect the environment. Current Directions in Psychological Science, 12, 105-109. doi:10.1111/1467-8721.01242.
24. Cialdini, R. B. (2007). Descriptive social norms as underappreciated sources of social control. Psychometrika, 72, 263-268. doi:10.1007/s11336-006-1560-6.
25. Cialdini, R. B., & Goldstein, N. J. (2004). Social influence: Compliance and conformity. Annual Review of Psychology, 55, 591-621. doi:10.1146/annurev.psych.55.090902.142015.
26. Cialdini, R. B., & Trost, M. R. (1998). Social influence: Social norms, conformity, and compliance. In D. T. Gilbert, S. T. Fiske, & G. Lindzey (Eds.), The handbook of social psychology (pp. 151-192, 4th ed.). Boston: McGraw-Hill.
27. Clark, R. A., & Goldsmith, R. E. (2005). Market mavens: Psychological influences. Psychology and Marketing, 22, 289-312. doi:10.1002/mar.20060.
28. Clark, R. A., & Goldsmith, R. E. (2006). Interpersonal influence and consumer innovativeness. International Journal of Consumer Studies, 30, 34-43. doi:10.1111/j.1470-6431.2005.00435.x.
29. Cox, D., & Bauer, R. A. (1964). Self-confidence and persuasibility in women. Public Opinion Quarterly, 28, 453-466. doi:10.1086/267266.
30. De Bondt, W. F. M. (1998). A portrait of the individual investor. European Economic Review, 42, 831-844. doi:10.1016/S0014-2921(98)00009-9.
31. Deutsch, M., & Gerard, H. B. (1955). A study of normative and informative social influences upon individual judgment. Journal of Abnormal and Social Psychology, 51, 629-636. doi:10.1037/h0046408.
32. DNB (2006). DNB Statistical Bulletin June 2006.
33. Doty, D. H., & Glick, W. H. (1998). Common methods bias: Does common methods variance really bias results? Organizational Research Methods, 1, 374-406. doi:10.1177/109442819814002.
34. D'Rozario, D., & Choudhury, P. K. (2000). Effect of assimilation on consumer susceptibility to interpersonal influence. Journal of Consumer Marketing, 17, 290-307. doi:10.1108/07363760010335321.
35. Edgett, S. (1994). The traits of successful new service development. Journal of Services Marketing, 8, 40-49. doi:10.1108/08876049410065606.
36. Fama, E. F. (1991). Efficient capital markets: II. The Journal of Finance, 46, 1575-1617. doi:10.2307/2328565.
37. Festinger, L. (1954). A theory of social comparison processes. Human Relations, 7, 117-140. doi:10.1177/001872675400700202.
38. Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. JMR, Journal of Marketing Research, 18, 382-388. doi:10.2307/3150980.
39. Furse, D., Punj, G., & Stewart, D. W. (1984). A typology of individual search strategies among purchasers of new automobiles. The Journal of Consumer Research, 10, 417-431. doi:10.1086/208980.
40. Gilly, M. C., Graham, J. L., Wolfinbarger, M. F., & Yale, L. J. (1998). A dyadic study of interpersonal information search. Journal of the Academy of Marketing Science, 26, 83-100. doi:10.1177/0092070398262001.
41. Hirschleifer, D. (2001). Investor psychology and asset pricing. The Journal of Finance, 56, 1533-1597. doi:10.1111/0022-1082.00379.
42. Hirschleifer, D., & Teoh, S. H. (2003). Herd behaviour and cascading in capital markets: A review and synthesis. European Financial Management, 9, 25-66. doi:10.1111/1468-036X.00207.
43. Hoffmann, A. O. I. (2007). Investors' needs and the investment professional: Lessons from marketing. The Journal of Investment Consulting, 8, 80-91.
44. Hong, H., Kubik, J. D., & Stein, J. C. (2004). Social interaction and stock market participation. The Journal of Finance, 59, 137-163. doi:10.1111/j.1540-6261.2004.00629.x.
45. Janis, I. L. (1954). Personality correlates of susceptibility to persuasion. Journal of Personality, 22, 504-518. doi:10.1111/j.1467-6494.1954.tb01870.x.
46. Janis, I. L. (1955). Anxiety indices related to susceptibility to persuasion. Journal of Abnormal Psychology, 51, 663-667. doi:10.1037/h0046765.
47. Johnson, J., & Tellis, G. J. (2005). Blowing bubbles: Heuristics and biases in the run-up of stock prices. Journal of the Academy of Marketing Science, 33, 486-503. doi:10.1177/0092070305277381.
48. Johnson, J., Tellis, G. J., & Macinnis, D. J. (2005). Losers, winners, and biased trades. The Journal of Consumer Research, 32, 324-329. doi:10.1086/432241.
49. Kahle, L. R. (1995). Observations: Role-relaxed consumers: A trend of the nineties. Journal of Advertising Research, 35, 66-71.
50. Kaplan, L. B., Szybillo, G. J., & Jacoby, J. (1974). Components of perceived risk in product purchase: A cross-validation. The Journal of Applied Psychology, 59, 287-291. doi:10.1037/h0036657.
51. Kiecker, P., & Hartman, C. L. (1993). Purchase pal use: Why buyers choose to shop with others. 1993 AMA Winter Educators' Conference Proceedings. Chicago: American Marketing Association.
52. Kindleberger, C. P. (2000). Manias, panics, and crashes. A history of financial crises (4th ed.). New York: Wiley.
53. Kleijnen, M., de Ruyter, K., & Andreassen, T. W. (2005). Image congruence and the adoption of service innovations. Journal of Service Research, 7, 343-359. doi:10.1177/1094670504273978.
54. Kropp, F., Lavack, A. M., & Holden, S. J. S. (1999). Smokers and beer drinkers: Values and consumer susceptibility to interpersonal influence. Journal of Consumer Marketing, 16, 536-557. doi:10.1108/07363769910297498.
55. Lascu, D. N., Bearden, W. O., & Rose, R. L. (1995). Norm extremity and interpersonal influences on consumer conformity. Journal of Business Research, 32, 201-212. doi:10.1016/0148-2963(94)00046-H.
56. LaTour, S. A., & Manrai, A. K. (1989). Interactive impact of informational and normative influence on donations. JMR, Journal of Marketing Research, 26, 327-335. doi:10.2307/3172904.
57. Locander, W. B., & Hermann, P. W. (1979). The effect of self-confidence and anxiety on information seeking in consumer risk reduction. JMR, Journal of Marketing Research, 16, 268-274. doi:10.2307/3150690.
58. Mangleburg, T. F., Doney, P. M., & Bristol, T. (2004). Shopping with friends and teens' susceptibility to peer influence. Journal of Retailing, 80, 101-116. doi:10.1016/j.jretai.2004.04.005.
59. Mascarenhas, O. A. J., & Higby, M. A. (1993). Peer, parent, and media influences in teen apparel shopping. Journal of the Academy of Marketing Science, 21, 53-58. doi:10.1177/0092070393211007.
60. Maslow, A. H. (1954). Motivation and personality. New York: Harper and Row.
61. McGuire, W. J. (1968). Personality and susceptibility to social influences. In E. F. Borgatta, & W. W. Lambert (Eds.), Handbook of personality theory and research (pp. 1130-1187). Chicago: Rand McNally.
62. Meyer, D. J. C., & Anderson, H. C. (2000). Preadolescents and apparel purchasing: conformity to parents and peers in the consumer socialization process. Journal of Social Behavior and Personality, 15, 243-257.
63. Miller, N. J. (1998). Susceptibility of consumers to normative and informational influences in selecting colors for apparel. Perceptual and Motor Skills, 87, 1131-1136.
64. Mitchell, V.-W., & McGoldrick, P. J. (1996). Consumers' risk reducing strategies: A review and synthesis. International Review of Retail, Distribution and Consumer Research, 6, 1-33. doi:10.1080/09593969600000001.
65. Morrin, M., Jacoby, J., Johar, V. G., He, X., Kuss, A., & Mazursky, D. (2002). Taking stock of stock brokers: Exploring momentum versus contrarian investor strategies and profiles. The Journal of Consumer Research, 29, 188-198. doi:10.1086/341570.
66. Mourali, M., Laroche, M., & Pons, F. (2005). Individualistic orientation and consumer susceptibility to interpersonal influence. Journal of Services Marketing, 19, 164-173. doi:10.1108/08876040510596849.
67. Netemeyer, R. G., Bearden, W. O., & Sharma, S. (2003). Scaling procedures: Issues and applications. Thousand Oaks, California: Sage.
68. Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill.
69. O'Cass, A., & McEwen, H. (2004). Exploring consumer status and conspicuous consumption. Journal of Consumer Behaviour, 4, 25-39. doi:10.1002/cb.155.
70. Odean, T., & Barber, B. M. (2000). Trading is hazardous to your wealth: The common stock investment performance of individual investors. The Journal of Finance, 55, 773-806. doi:10.1111/0022-1082.00226.
71. Park, C. W., & Lessig, P. V. (1977). Students and housewives: Differences in susceptibility to reference group influence. The Journal of Consumer Research, 4, 102-110. doi:10.1086/208685.
72. Perdue, B. C., & Summers, J. O. (1986). Checking the success of manipulations in marketing experiments. JMR, Journal of Marketing Research, 23, 317-326. doi:10.2307/3151807.
73. Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. The Journal of Applied Psychology, 88, 879-903. doi:10.1037/0021-9010.88.5.879.
74. Ratner, R. K., & Kahn, B. E. (2002). The impact of private versus public consumption on variety-seeking behavior. The Journal of Consumer Research, 29, 246-257. doi:10.1086/341574.
75. Rusting, C. L. (1999). Interactive effects of personality and mood on emotion-congruent memory and judgment. Journal of Personality and Social Psychology, 77, 1073-1086. doi:10.1037/0022-3514.77.5.1073.
76. Shedletski, R., & Endler, N. S. (1974). Anxiety: The state-trait model and the interaction model. Journal of Personality, 42, 511-527. doi:10.1111/j.1467-6494.1974.tb00690.x.
77. Shiller, R. J. (1984). Stock prices and social dynamics. Brookings Papers on Economic Activity, 2, 457-498. doi:10.2307/2534436.
78. Shiller, R. J. (1995). Conversation, information, and herd behavior. The American Economic Review, 85, 181-185.
79. Sirgy, M. J. (1982). Self-concept in consumer behavior: A critical review. The Journal of Consumer Research, 9, 287-300. doi:10.1086/208924.
80. Sirgy, M. J. (1985). Using self-congruity and ideal congruity to predict purchase intention. Journal of Business Research, 13, 195-206. doi:10.1016/0148-2963(85)90026-8.
81. Statman, M. (2004). What do investors want? Journal of Portfolio Management, 30, 153-161.
82. Steenkamp, J. B. E. M., & Gielens, K. (2003). Consumer and market drivers of the trial probability of new consumer packaged goods. The Journal of Consumer Research, 30, 368-384. doi:10.1086/378615.
83. Storey, C., & Easingwood, C. J. (1999). Types of new product performance: Evidence from the consumer financial services sector. Journal of Business Research, 46, 193-203. doi:10.1016/S0148-2963(98)00022-8.
84. VEB (2002). Is beleggen uit en sparen in? Effect, 5. (In Dutch).
85. Yim, C. K., Chan, K. W., & Hung, K. (2007). Multiple reference effects in service evaluations: Roles of alternative attractiveness and self-image congruity. Journal of Retailing, 83, 147-157. doi:10.1016/j.jretai.2006.10.011.
86. Zhou, R., & Pham, M. T. (2004). Promotion and prevention across mental accounts: When financial products dictate consumers' investment goals. The Journal of Consumer Research, 31, 125-135. doi:10.1086/383429.