Show Me the Honey! Effects of Social Exclusion on Financial Risk-Taking

14 Pages Posted: 7 Mar 2014

See all articles by Rod Duclos

Rod Duclos

Hong Kong University of Science & Technology (HKUST)

Echo Wan

The University of Hong Kong

Yuwei Jiang

Hong Kong Polytechnic University

Abstract

This research examines the effects of social exclusion on a critical aspect of consumer behavior, financial decision-making. Specifically, four lab experiments and one field survey uncover how feeling isolated or ostracized causes consumers to pursue riskier but potentially more profitable financial opportunities. These daring proclivities do not appear driven by impaired affect or self-esteem. Rather, interpersonal rejection exacerbates financial risk-taking by heightening the instrumentality of money (as a substitute for popularity) to obtain benefits in life. Invariably, the quest for wealth that ensues tends to adopt a riskier but potentially more lucrative road. The article concludes by discussing the implications of its findings for behavioral research as well as for societal and individual welfare.

Keywords: Social Exclusion, Risk, Money, Consumer Psychology, Lottery, Social Connection

Suggested Citation

Duclos, Rod and Wan, Echo and Jiang, Yuwei, Show Me the Honey! Effects of Social Exclusion on Financial Risk-Taking. Journal of Consumer Research, Vol. 40, No. 3, 2013, Available at SSRN: https://ssrn.com/abstract=2405768

Rod Duclos

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

Echo Wan

The University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Pokfulam HK
China

Yuwei Jiang (Contact Author)

Hong Kong Polytechnic University ( email )

Hong Kong
China

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