Susceptibility to and Impact of Interpersonal Influence in an Investment Context

Journal of the Academy of Marketing Science, Vol. 37, Issue 4, pp. 488-503

Posted: 28 Jan 2009 Last revised: 24 May 2011

Arvid O. I. Hoffmann

University of Adelaide - Business School; Network for Studies on Pensions, Aging and Retirement (Netspar)

Thijs Broekhuizen

University of Groningen - Faculty of Economics and Business - Dept. Innovation Management and Strategy

Date Written: 2009

Abstract

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, G2

Suggested Citation

Hoffmann, Arvid O. I. and Broekhuizen, Thijs, Susceptibility to and Impact of Interpersonal Influence in an Investment Context (2009). Journal of the Academy of Marketing Science, Vol. 37, Issue 4, pp. 488-503. Available at SSRN: https://ssrn.com/abstract=1333684

Arvid O. I. Hoffmann (Contact Author)

University of Adelaide - Business School ( email )

10 Pulteney Street
Adelaide, South Australia 5005
Australia

Network for Studies on Pensions, Aging and Retirement (Netspar)

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Thijs Broekhuizen

University of Groningen - Faculty of Economics and Business - Dept. Innovation Management and Strategy ( email )

9700 AV Groningen
Netherlands
+ 31 50 363 3777 (Phone)

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