Susceptibility to and Impact of Interpersonal Influence in an Investment Context
Arvid O. I. Hoffmann
Maastricht University - School of Business and Economics - Department of Finance; Network for Studies on Pensions, Aging and Retirement (Netspar)
University of Groningen - Faculty of Economics and Business - Dept. Innovation Management and Strategy
Journal of the Academy of Marketing Science, Vol. 37, Issue 4, pp. 488-503
This paper demonstrates the relevance of consumers' susceptibility to interpersonal influence (CSII) in an investment context. In Study 1, a survey of individual investors, investment-related knowledge, psycho-social risks, and social needs emerge as antecedents that explain investors' susceptibility to informational and normative influence. In turn, susceptibility to normative influences increases transaction frequency, whereas susceptibility to informational influences decreases transaction frequency. The experiments in Studies 2 and 3 indicate the impact of interpersonal influences on consumers' investment decisions in a voluntary (free choice) and involuntary (confrontation) setting and check whether CSII moderates the impact of interpersonal influences. Consumers' investment choices are consistently influenced by the information and opinions of others, whereas CSII only strengthens the impact of interpersonal influence in a voluntary informational setting.
Keywords: Susceptibility to interpersonal influence, Investments, Reference-group influence
JEL Classification: M31, G2Accepted Paper Series
Date posted: January 28, 2009 ; Last revised: May 24, 2011
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