Feeling Stereotyped and its Effects on Investment Decisions

Abstract

How do consumers respond in financial contexts when a negative stereotype about an ingroup is salient? I predicted and found that, in such circumstances, consumers consistently preferred safe investment options to riskier yet potentially better-pay-off ones, as compared to the situation in which a negative ingroup stereotype is not salient. 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. [ABSTRACT FROM AUTHOR] Copyright of Seoul Journal of Business is the property of Seoul National University, College of Business Administration and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)