A Generalizable Scale of Propensity to Plan: The Long and the Short of Planning for Time and Money

21 Pages Posted: 21 Sep 2009 Last revised: 17 Mar 2011

See all articles by John G. Lynch

John G. Lynch

University of Colorado-Boulder, Leeds School of Business - Center for Research on Consumer Financial Decision Making

Richard G. Netemeyer

University of Virginia - McIntire School of Commerce

Stephen A. Spiller

University of California, Los Angeles (UCLA) - Anderson School of Management

Alessandra Zammit

University of Bologna - Department of Management

Date Written: December 2, 2009

Abstract

Planning has pronounced effects on consumer behavior and intertemporal choice. We develop a six-item scale measuring individual differences in propensity to plan that can be adapted to different domains and used to compare planning across domains and time horizons. Adaptations tailored to planning time and money in the short run and long run each show strong evidence of reliability and validity. We find that that propensity to plan is moderately domain-specific. Scale measures and actual planning measures show that for time, people plan much more for the short run than the long run; for money, short- and long-run planning differ less. Time and money adaptations of our scale exhibit sharp differences in nomological correlates; short-run and long- run adaptations differ less. Domain-specific adaptations predict frequency of actual planning in their respective domains. A “very long-run” money adaptation predicts FICO credit scores; low planners thus face materially higher cost of credit.

Keywords: Planning, Scale development

JEL Classification: D1, D91

Suggested Citation

Lynch, John G. and Netemeyer, Richard G. and Spiller, Stephen A. and Zammit, Alessandra, A Generalizable Scale of Propensity to Plan: The Long and the Short of Planning for Time and Money (December 2, 2009). Journal of Consumer Research, Vol. 37, No.1, pp.108-28, 2009. Available at SSRN: https://ssrn.com/abstract=1476382

John G. Lynch

University of Colorado-Boulder, Leeds School of Business - Center for Research on Consumer Financial Decision Making ( email )

Leeds School of Business
Boulder, CO 80309-0419
United States
919-971-5201 (Phone)

HOME PAGE: http://https://www.colorado.edu/business/john-g-lynch-jr

Richard G. Netemeyer

University of Virginia - McIntire School of Commerce ( email )

P.O. Box 400173
Charlottesville, VA 22904-4173
United States

Stephen A. Spiller (Contact Author)

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

Alessandra Zammit

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
Bologna, BO 40126
Italy

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