Show simple item record

Files in this item

Thumbnail

Item metadata

dc.contributor.authorLukas, Marcel F
dc.contributor.authorHoward, Ray Charles “Chuck”
dc.date.accessioned2023-06-24T23:38:54Z
dc.date.available2023-06-24T23:38:54Z
dc.date.issued2023-02-01
dc.identifier279999014
dc.identifier88196cba-8141-4af3-9778-c91a22003ddd
dc.identifier000815516900001
dc.identifier.citationLukas , M F & Howard , R C C 2023 , ' The influence of budgets on consumer spending ' , Journal of Consumer Research , vol. 49 , no. 5 , ucac024 , pp. 697–720 . https://doi.org/10.1093/jcr/ucac024en
dc.identifier.issn0093-5301
dc.identifier.otherBibtex: 10.1093/jcr/ucac024
dc.identifier.otherORCID: /0000-0001-7515-8062/work/116274921
dc.identifier.urihttps://hdl.handle.net/10023/27807
dc.descriptionFunding: For financial support, the authors thank the Dean's Office at Mays Business School.en
dc.description.abstractFoundational research in marketing and behavioral economics has revealed a great deal about the psychology of budgeting. However, little is known about the extent to which budgets do (or do not) influence consumers’ real-world spending. The present research addresses this gap in the literature using naturally occurring budgeting and spending data provided by a popular personal finance app in the UK, a field experiment conducted with members of a Canadian credit union, and a financial diary study conducted with consumers in the US. Budget compliance is generally weak because budgets are wildly optimistic. However, optimistic budgets do help consumers reduce their spending. Moreover, the influence of budgets on spending is surprisingly sticky: consumers continue to reduce their spending six months after setting a budget, even though spending remains over-budget. Impulsive consumers exhibit worse budget compliance than less impulsive consumers. However, counterintuitively, this is predominately because more impulsive consumers set lower budgets than less impulsive consumers, not because they spend more. Finally, we provide evidence that budgets influence spending across several theory-informing psychographic variables. Taken together, these findings show that budgets can be both wildly optimistic and highly influential, and that beliefs about the nature of consumers’ budgets require updating.
dc.format.extent24
dc.format.extent951996
dc.language.isoeng
dc.relation.ispartofJournal of Consumer Researchen
dc.subjectBudgetingen
dc.subjectMental accountingen
dc.subjectReference pointsen
dc.subjectPlanning fallacyen
dc.subjectOptimismen
dc.subjectImpulsivenessen
dc.subjectTemporal discountingen
dc.subjectHF Commerceen
dc.subject3rd-DASen
dc.subjectMCCen
dc.subject.lccHFen
dc.titleThe influence of budgets on consumer spendingen
dc.typeJournal articleen
dc.contributor.institutionUniversity of St Andrews. School of Managementen
dc.identifier.doi10.1093/jcr/ucac024
dc.description.statusPeer revieweden
dc.date.embargoedUntil2023-06-25


This item appears in the following Collection(s)

Show simple item record