Analysis of Consumer Behavior in Financial Decision Making

This report examines the science of consumer behavior, specifically focusing on why individuals, particularly those who rely on affective thinking, tend to avoid making financial decisions. Several studies are analyzed, which investigate the link between perceived thinking styles (affective vs. analytical) and the avoidance of financial choices. The research suggests that individuals who perceive themselves as affective thinkers are more likely to avoid financial decisions due to a perceived incongruity between their decision-making style and the financial domain. The report also discusses the implications of these findings, using Apple Inc. as a case study, and suggests that understanding these behavioral tendencies can help organizations tailor their approach to encourage better financial decision-making among employees and management. The report references various studies and highlights the importance of recognizing and addressing the perceptions that influence financial behavior.

SCIENCE OF CONSUMER BEHAVIOR
[Author Name(s), First M. Last, Omit Titles and Degrees]
[Institutional Affiliation(s)]

NOT MY TYPE: WHY AFFECTIVE DECISION MAKERS ARE RELUCTANT TO MAKE
FINANCIAL DECISIONS
Most people are not comfortable handling financial decisions and this is attributed to people
looking at financial decisions as being compatible with a colder and analytical thinking mode as
well as highly incompatible with emotions alongside feelings. Several studies have been
conducted on this question.
A study on perceived thinking style and avoidance of financial decision was done aimed at
determining if natural variations in an individual’s self-perception style of thinking are linked
with tendency of avoiding reach world financial choices(Belk, 2014). Another study was
conducted on the generalizability and robustness of the relationship that exists between financial
decision avoidance and perceived style of thinking.
The two studies hinted that believing an individual is predisposed to feeling based or affective
thinking rather than analytical thinking is linked with an enhanced tendency of avoiding financial
decisions as well as neglecting some consequential behaviors that are financially responsible in
real life (Park & Sela, 2017). It is thus conclusive that the relationship between financial decision
avoidance and perceived affective thinking is hence unlikely to be a reflection of perception that
affective thinking is basically ineffective or insufficient in general terms.
A second study conducted on participation in real financial activities perceived decision style has
an influence on the tendency of evading against involving in real activity associated with
financial decisions (Park & Sela, 2017). When the perceived style of thinking of people is
manipulated and leading individuals to perceive themselves as affective versus analytical

decision maker’s result in about 35% reduction in their willingness to take part in any activity
related to financial decisions
A third test examined the underlying processes via moderated mediation in which a proposal is
made that by people believing they are tilted towards affective thinking results in them
experiencing self-concept incongruity with financial decision domains (Vrechopoulos,
Constantiou, Sideris, Doukidis & Mylonopoulos, 2011). The emperical findings of the study
established that believing they tend to utilize emotions in making decisions makes people
perceive themselves as significantly moved form financial domain that then enhances decision
awareness.
A study on the impact of decision domain on avoidance was carried out in which it was
hypothesized impact of perceived decision style on decision making would be moderated using
decision domain (Park & Sela, 2017). It was established that believing there is a tendency of
basing their decisions on analytical versus affective thinking enhances the tendency of people to
evade financial decisions even though does not have an impact on complex and specialized
choices regarding medical treatment Marsden & Littler, 2012).
Apple Inc. which was started in 1977 is a multinational cooperation which manufacturers
consumer electronics, servers, computer softwares, personal computers. The main product lines
include iPhone smartphone, iPod portable media players, iPad tablet computer as well as
Macintosh computer line (Park & Sela, 2017). The company was begun by college dropouts
Steve Wozniak and Steve Jobs who came into the new company with a mission of altering the
manner in which people looked at computers. Their intention was to make computers small
enough to enable people have them at their offices as well as homes.

From the above findings on financial decisions, the executives of Apple Company would find it
more profitable and successful to use their head as opposed to their heart when it comes to issues
bordering on financial decisions in case it results in people avoiding such choices (Foxall, 2013).
By the management of the company recognizing the forces that are at play on the company may
aid in overcoming the same. Believing that reluctance has more to do with the perceptions rather
than abilities may assist the company in going beyond its financial foot-dragging. The findings
of this study may help the management present information in such a way that makes the
employees as well as the management more likely to take part as opposed to run screaming
(Marsden & Littler, 2012).

References
Belk, R. W. (2014). Studies in the new consumer behaviour. In Acknowledging consumption (pp.
61-102). Routledge
Erasmus, A. C., Boshoff, E., & Rousseau, G. G. (2011). Consumer decision-making models
within the discipline of consumer science: a critical approach. Journal of Consumer
Sciences, 29(1)
Foxall, G. R. (2013). Consumer behaviour as an evolutionary process. European Journal of
Marketing, 27(8), 46-57
Marsden, D., & Littler, D. (2012). Positioning alternative perspectives of consumer
behaviour. Journal of marketing management, 14(1-3), 3-28
Park, J. J., & Sela, A. (2017). Not my type: Why affective decision makers are reluctant to make
financial decisions. Journal of Consumer Research, 45(2), 298-319
Vrechopoulos, A., Constantiou, I., Sideris, I., Doukidis, G., & Mylonopoulos, N. (2011). The
critical role of consumer behaviour research in mobile commerce. International Journal
of Mobile Communications, 1(3), 239-340