Tomi Dahlberg, Anne Sunikka and Anssi Öörni
description
Transcript of Tomi Dahlberg, Anne Sunikka and Anssi Öörni
Hidden wealth – how consumers perceive wealth
and its management?
Anne Sunikka
Helsinki School of Economics Presentation at IAREP 2008 at LUISS Rome
Tomi Dahlberg, Anne Sunikka and Anssi ÖörniHelsinki School of Economics,
Department of Business Technology4 of September, 2008
Anne Sunikka IAREP 4 Sept. 20082
Research-in progress project
• A new concept for total wealth management?– Consumers would get a new service for wealth
management, diversification and allocation – Financial companies would get a systematic new tool
that would facilitate customer encounters• Main research partners
– National Consumer Research Centre– Helsinki School of Economics
• Financiers– Finnish funding agency for technology and
innovation– A Finnish financial conglomerate– A Finnish financial newspaper
• Others– Federation of Finnish Financial Services– Insurance Supervisory Authority– Tampere University– New York University
Anne Sunikka IAREP 4 Sept. 20083
Overview of the presentation
• Research questions• Multiple methods• Some theories…• Preliminary results• Conclusion
Anne Sunikka IAREP 4 Sept. 20084
Interview / Focus Group Themes and Research Questions
• Interview / Focus Group Themes– consumers’ perception of wealth– reasons for accumulating wealth and – perceived risks related to wealth management
• Research Questions– How do consumers perceive wealth in general
and different asset classes, in particular? – How well do empirically discovered motives
relate to those proposed by financial and social psychological theories?
Anne Sunikka IAREP 4 Sept. 20085
Background information
Anne Sunikka IAREP 4 Sept. 20086
Background information
Anne Sunikka IAREP 4 Sept. 20087
Theories (1)
• Financial theory – Efficient market hypothesis (Roberts, 1967; Fama,
1965 & 1970) – Capital asset pricing model (CAPM) that builds on the
idea of an efficient frontier (Markowitz, 1952; Sharpe, 1965)
– Assumptions about rational, value maximizing consumers (homo economicus) and the availability of perfect market information.
• Behavioral finance– Bounded rationality (Simon, 1955) – Judgment diverges from rationality: overconfidence,
optimism, anchoring, extrapolation, and heuristics (see e.g. Kahneman et al., 1982).
– Choice diverges from rationality: prospect theory (Kahneman and Tversky, 1979).
Anne Sunikka IAREP 4 Sept. 20088
Theories (2)
• Consumer behavior and social psychological theories
• Mowen (1988): three perspectives for consumer purchase decision-making:
1. Decision-making perspective – buying behavior results form consumers’ engaging in a problem-solving tasks (Simon, 1957; Howard and Sheth, 1969; Engel et al., 1968)
2. Experiential perspective – consumers make purchases to create feelings, experiences and emotions (Pillar and Mueller, 2004; Thompson, 1989)
3. Behavioral influence perspective – consumers act in response to environmental pressures (Foxall, 1991 & 1993).
• TRA (Fishbein and Ajzen, 1975) and TPB (Ajzen, 1991) propose the most important determinant of a person's behavior is behavioral intent. The individual's intention to perform a behavior is a combination of attitude toward performing the behavior and subjective norm (and perceived behavioral control in the case of TPB).
Anne Sunikka IAREP 4 Sept. 20089
Anne Sunikka IAREP 4 Sept. 200810
Anne Sunikka IAREP 4 Sept. 200811
Anne Sunikka IAREP 4 Sept. 200812
Anne Sunikka IAREP 4 Sept. 200813
Conclusions
• Consumers do not perceive wealth as a unified concept or portfolio. Rather, various wealth categories are perceived differently.
• The motives to manage wealth given by consumers deviate from those proposed by financial theories.
• The link between risk and return is poorly represented among consumers’ wealth management motives.