Feeling Stereotyped and Its Effects on Investment Decisions

This research proposes that consumers will engage in a defensive investment decision process when stereotypes negative to their group are activated. Defensive investment is typified as risk avoidance or a consistent preference for safe options. The results of three experiments suggest that consumers tend to prefer stable securities (e.g., Treasury bonds or stocks with low betas) versus unstable securities (e.g., stocks with high betas) when a negative stereotype to their group is made salient. Such tendencies are particularly stronger among people with low (vs. high) self-esteem, who are characterized as responding to threat with avoidance.



Citation:

Kyoungmi Lee and Hakkyun Kim (2011) ,"Feeling Stereotyped and Its Effects on Investment Decisions", in AP - Asia-Pacific Advances in Consumer Research Volume 9, eds. Zhihong Yi, Jing Jian Xiao, and June Cotte and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 202-204.

Authors

Kyoungmi Lee, Yonsei University, Korea
Hakkyun Kim, Concordia University, Canada



Volume

AP - Asia-Pacific Advances in Consumer Research Volume 9 | 2011



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