Hoffmann, AOI and McNair, SJ orcid.org/0000-0003-3111-234X (2019) How Does Consumers’ Financial Vulnerability Relate to Positive and Negative Financial Outcomes? The Mediating Role of Individual Psychological Characteristics. Journal of Consumer Affairs, 53 (4). pp. 1630-1673. ISSN 0022-0078
Abstract
Vulnerable consumers are at particular risk of financial detriment due to, for example, low financial literacy or numeracy, high debt, low income, or impactful changes in personal circumstances. We introduce a comprehensive and formative measure of financial vulnerability that integrates these risk factors and is grounded in definitions of vulnerability from financial regulation bodies and government agencies such as the Consumer Financial Protection Bureau. Across three studies of US individuals, we assess the nomological validity of this measure of financial vulnerability through its relationship with positive and negative financial outcomes (e.g., savings levels, paying credit card balances in full each month, being in arrears) as well as relevant psychological characteristics (e.g., personal savings orientation [PSO], money management skills, financial self‐efficacy). Moreover, we examine whether and how these psychological characteristics mediate the relationship between financial vulnerability and financial outcomes. We conclude with an overview of implications for policy makers and business practitioners.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2018 by The American Council on Consumer Interests. This is an author produced version of a paper published in Journal of Consumer Affairs. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Decision Research (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 13 Dec 2018 11:02 |
Last Modified: | 10 Dec 2020 01:38 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/joca.12233 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:139827 |