Risky Spending after Experienced Loss: The Moderating Effect of Socioeconomic Background

André Hansla and Lars-Olof Johansson

Journal of the Association for Consumer Research, 2020, vol. 5, issue 4, 427 - 438

Abstract: Research shows that loss experiences affect risk-taking. Effects of socioeconomic background are however understudied. In two experiments we manipulated experienced losses versus gains. In Study 2 we measured and tested disappointment and surprise as mediators. We find in line with recent life-history theory that a loss triggers risky simulated (study 1) and actual (study 2) purchases for the past poor, and actual savings for the past rich. These different reactions are explained partly by differences in coping with disappointment. For both past rich and poor a loss tends to increase gambling via reduced surprise. The past poor are more optimistic and expect a higher payment than the past rich. Implications for avoiding scarcity traps and future research are discussed.

Date: 2020
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