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The role of cognitive style, gullibility, and demographics on the use of social media for financial decision making

Author

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  • Jenna Florendo

    (Fordham University)

  • Hooman Estelami

    (Fordham University)

Abstract

Consumer use of social media has witnessed significant growth in recent years. Due to its unregulated, user-generated, and poorly censored format, social media use has blurred the line between the fake and the true and can result in mass dissemination of inaccurate and false information, thereby impacting national politics, election outcomes, and social interactions between consumer social clusters. In the unique context of financial decisions, consumer reliance on social media can significantly increase the risk of making poor financial decisions. This study examined the impact of cognitive style, consumer gullibility, and demographics on consumers’ reliance on social media for financial decision making. The results of a US national survey identify consumer characteristics which contribute to increased reliance on social media in financial decision making. The findings point to consumer vulnerabilities associated with psychographic and demographic attributes of consumers. The paper concludes with recommendation-related consumer education and public protection measures.

Suggested Citation

  • Jenna Florendo & Hooman Estelami, 2019. "The role of cognitive style, gullibility, and demographics on the use of social media for financial decision making," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 24(1), pages 1-10, June.
    • Handle: RePEc:pal:jofsma:v:24:y:2019:i:1:d:10.1057_s41264-019-00064-7
    DOI: 10.1057/s41264-019-00064-7
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    References listed on IDEAS

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    Cited by:

    1. Julia Rötzmeier-Keuper, 2020. "Consumer Vulnerability: Overview And Synthesis Of The Current State Of Knowledge And Future Service-Related Research Directions," Working Papers Dissertations 65, Paderborn University, Faculty of Business Administration and Economics.
    2. Pallavi Dogra & Arun Kaushal & Rishi Raj Sharma, 2023. "Antecedents of the Youngster’s Awareness About Financial Literacy: A Structure Equation Modelling Approach," Vision, , vol. 27(1), pages 48-62, February.
    3. John Moss & Karen Rowlingson & Andrew Lymer, 2024. "Exploring the barriers to accessing personal financial planning advice," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 17-32, March.

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