How to Increase Saving Intentions: Exploring Psychological Mechanisms Causing Increased Saving Intention at Exposure to Future Self Image

HoEun Chung, Purdue University

Abstract

Recently, a study has suggested an intriguing way of increasing saving behavior (Hershfield et al., 2011). According to the study, people are apt to increase saving for retirement when they are shown images of their future selves. This dissertation seeked empirical support thought to underlie this effect. Specifically, the primary aim of the current research was to reveal cognitive mediating factors that affect the increased saving intention on exposure to images of future self. Based on Construal Level Theory (CLT) (Liberman & Trope, 2003) in conjunction with Expectancy-Value perspective (for example, Shah & Higgins, 1997), temporal distance, expectancy, and value were proposed as the mediators. The effects of the mediators on the relationship between exposure to images of future self and saving intention, and the interrelationships among the mediators were explored. The secondary aim of this dissertation was to test whether the effect of exposure to images of future self on saving holds at different boundary conditions (i.e., seeing one's own image vs. seeing another person's image; financial thinking priming vs. non-financial thinking priming). In order to achieve the research aims, a laboratory experiment was conducted using 150 participants. The key findings of the experiment with regard to the mediation effects were: (1) exposure to images of future self led to decreased temporal distance to the future, (2) decreased temporal distance led to increased expectancy with regard to a saving goal achievement, (3) increased expectancy led to increased value with regard to a saving goal achievement, and finally (4) the increased value led to increased saving intention. The experiment also found that the participants increased saving intention regardless of whether they saw their own future images or a future image of other person. They also increased saving intention when exposed to images of their future selves regardless of whether they were primed to think about financial situation or non-financial situation. Lastly, the future image exposure effect on the increased saving intention consistently held for different types of saving intention (i.e. long-term retirement saving intention, short-term retirement saving intention, general saving intention, and comparative retirement saving intention). Theoretical and practical implications are suggested.

Degree

Ph.D.

Advisors

Norris, Purdue University.

Subject Area

Business administration

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