- Title
- Regulatory focus and investment advisers' recommending behavior
- Creator
- Ewe, Soo; Lee, Christina; Gul, Fedinand
- Date
- 2020
- Type
- Text; Journal article
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/176205
- Identifier
- vital:15057
- Identifier
-
https://doi.org/10.1108/IJBM-12-2019-0452
- Identifier
- ISBN:0265-2323 (ISSN)
- Abstract
- Purpose: This study examines the effect of a regulatory-focused prime (i.e. a brochure with a picture and message) on the recommending behavior of investment advisers in the context of an investment decision. Design/methodology/approach: Three experiments were conducted with 468 participants, mostly from the financial services industry. Study 1 examined the direct effect of a regulatory-focused prime on an investment adviser's recommending behavior, whereas Study 2 examined the moderating role of regulatory fit on such behavior. Study 3 validated the findings. Findings: The results provide evidence that a message using visual and textual cues based on a promotion and prevention regulatory focus may trigger a preference in an investment adviser's product recommendation. A promotion (prevention)-focused framed message will trigger the recommendation of an investment plan with a higher but riskier (safe and stable) potential return. However, when the same prime is presented with details of a performance incentive scheme, the effect of the prime is reduced when there is a regulatory nonfit between the prime and the message relating to the performance incentive scheme. Practical implications: The findings highlight the importance of understanding how regulatory-focused stimuli may subconsciously influence the recommendation of investment advisers as heuristics used in decision-making, thereby influencing their clients' investment decisions. Originality/value: Past studies have focused on how regulatory-focused visual and message cues influence consumer decision-making. This study provides empirical evidence regarding the influence of regulatory-focused prime on an investment adviser's behavior when providing investment advice. © 2020, Emerald Publishing Limited.
- Publisher
- Emerald Group Holdings Ltd.
- Relation
- International Journal of Bank Marketing Vol. 39, no. 1 (2020), p. 107-126
- Rights
- All metadata describing materials held in, or linked to, the repository is freely available under a CC0 licence
- Rights
- https://creativecommons.org/licenses/by-nc/4.0/
- Rights
- Copyright © 2021 Emerald Publishing Limited
- Subject
- 1503 Business and Management; 1505 Marketing; Performance incentive; Recommending behavior; Regulatory focus; Visual cue
- Full Text
- Reviewed
- Hits: 689
- Visitors: 841
- Downloads: 260
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Accepted version | 641 KB | Adobe Acrobat PDF | View Details Download |