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Development and validation of the Perceived Investment Value (PIV) scale

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  • Puustinen, Pekka
  • Maas, Peter
  • Karjaluoto, Heikki
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    Abstract

    This study aims to develop a complementary and more comprehensive measurement to assess the nature of investment value affecting consumers’ investment behavior. Recent research suggests that consumers may desire and obtain certain outcomes from investments that have not been anticipated in mainstream finance and economics literature. These benefits might be hedonistic or altruistic, self-expressive or emotional and experiential. Yet, while an increasing amount of attention has been paid to this topic, little effort has been made to develop an appropriate measurement scale for the subjective consumer perceptions of investments. To address this gap in the literature, this study introduces the concept of Perceived Investment Value (PIV), and develops and validates a measurement scale for the concept. The ultimate 18-item PIV scale parsimoniously represents six Perceived Investment Value dimensions: Economic value—Monetary savings; Economic value—Efficiency; Functional value—Convenience; Emotional value—Emotions and Experiences; Symbolic value—Altruism; and Symbolic value—Esteem. The final measurement scale demonstrates acceptable reliability and validity. Implications related to the developed scale are discussed in terms of their potential to inform a future research agenda.

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    File URL: http://www.sciencedirect.com/science/article/pii/S016748701300041X
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Psychology.

    Volume (Year): 36 (2013)
    Issue (Month): C ()
    Pages: 41-54

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    Handle: RePEc:eee:joepsy:v:36:y:2013:i:c:p:41-54

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    Web page: http://www.elsevier.com/locate/joep

    Related research

    Keywords: Behavioral finance; Investment Behavior; Perception; Value;

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    1. Babin, Barry J & Darden, William R & Griffin, Mitch, 1994. " Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value," Journal of Consumer Research, University of Chicago Press, vol. 20(4), pages 644-56, March.
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    8. LAURENT, Gilles & CHANDON, Pierre & WANSINK, Brian, 2000. "A benefit congruency framework of sales promotion effectiveness," Les Cahiers de Recherche 698, HEC Paris.
    9. Hardesty, David M. & Bearden, William O., 2004. "The use of expert judges in scale development: Implications for improving face validity of measures of unobservable constructs," Journal of Business Research, Elsevier, vol. 57(2), pages 98-107, February.
    10. Fama, Eugene F. & French, Kenneth R., 2007. "Disagreement, tastes, and asset prices," Journal of Financial Economics, Elsevier, vol. 83(3), pages 667-689, March.
    11. Peter Maas, 2010. "How Insurance Brokers Create Value—A Functional Approach," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 13(1), pages 1-20, 03.
    12. Sheth, Jagdish N. & Newman, Bruce I. & Gross, Barbara L., 1991. "Why we buy what we buy: A theory of consumption values," Journal of Business Research, Elsevier, vol. 22(2), pages 159-170, March.
    13. Belk, Russell W, 1988. " Possessions and the Extended Self," Journal of Consumer Research, University of Chicago Press, vol. 15(2), pages 139-68, September.
    14. Canova, Luigina & Rattazzi, Anna Maria Manganelli & Webley, Paul, 2005. "The hierarchical structure of saving motives," Journal of Economic Psychology, Elsevier, vol. 26(1), pages 21-34, February.
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