Journal article
Regulatory focus and investment advisers' recommending behavior
nternational Journal of Bank Marketing, Vol.39(1), pp.107-126
2021
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.
Details
- Title
- Regulatory focus and investment advisers' recommending behavior
- Authors
- Soo Yeong Ewe (Corresponding Author) - Monash UniversityChristina Kwai Choi Lee (Author) - Federation UniversityFerdinand A. Gul (Author) - Deakin University
- Publication details
- nternational Journal of Bank Marketing, Vol.39(1), pp.107-126
- Publisher
- Emerald Group Publishing
- DOI
- 10.1108/IJBM-12-2019-0452
- ISSN
- 1758-5937
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99679192402621
- Output Type
- Journal article
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