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Conceptualizing the multiple dimensions of consumer financial vulnerability

Author

Listed:
  • O'Connor, Genevieve E.
  • Newmeyer, Casey E.
  • Wong, Nancy Yee Ching
  • Bayuk, Julia B.
  • Cook, Laurel A.
  • Komarova, Yuliya
  • Loibl, Cazilla
  • Lin Ong, L.
  • Warmath, Dee

Abstract

Though the majority of Americans report they are financially stable, they do not have sufficient savings to handle an unplanned emergency. There appears to be a disconnect between an individual's perception of their financial situation and their actual financial state. Nevertheless, only scant research focuses on financial vulnerability from both a subjective and objective perspective, and a clear and consistent definition of this construct is missing in the literature. To fill this gap, this review draws across disciplines to consolidate extant knowledge on financial vulnerability. First, we propose a novel definition of financial vulnerability that includes both its subjective and objective dimensions. Next, we create a framework to assess a consumer's financial vulnerability. We then identify interventions for varying degrees of financial vulnerability that are tailored to the individual's fiscal situation. Finally, we present a research agenda to guide future research on financial vulnerability.

Suggested Citation

  • O'Connor, Genevieve E. & Newmeyer, Casey E. & Wong, Nancy Yee Ching & Bayuk, Julia B. & Cook, Laurel A. & Komarova, Yuliya & Loibl, Cazilla & Lin Ong, L. & Warmath, Dee, 2019. "Conceptualizing the multiple dimensions of consumer financial vulnerability," Journal of Business Research, Elsevier, vol. 100(C), pages 421-430.
    • Handle: RePEc:eee:jbrese:v:100:y:2019:i:c:p:421-430
    DOI: 10.1016/j.jbusres.2018.12.033
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    Cited by:

    1. Dee Warmath & Genevieve Elizabeth O'Connor & Nancy Wong & Casey Newmeyer, 2022. "The role of social psychological factors in vulnerability to financial hardship," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(3), pages 1148-1177, September.
    2. H. Lim & J. C. Letkiewicz, 2023. "Consumer Experience of Mistreatment and Fraud in Financial Services: Implications from an Integrative Consumer Vulnerability Framework," Journal of Consumer Policy, Springer, vol. 46(2), pages 109-135, June.
    3. Daniela Fernanda Diaz & Sonia Di Giannatale & Irvin Rojas, 2023. "Financial Vulnerability and Financial Instruments: Evidence from Mexico," Sobre México. Revista de Economía, Sobre México. Temas en economía, vol. 1(8), pages 94-134.
    4. Susnaningsih Muat & Nurul Shahnaz Mahdzan & Mohd Edil Abd Sukor, 2024. "What shapes the financial capabilities of young adults in the US and Asia-Pacific region? A systematic literature review," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    5. Lenka Mynaříková & Vít Pošta, 2023. "The Effect of Consumer Confidence and Subjective Well-being on Consumers’ Spending Behavior," Journal of Happiness Studies, Springer, vol. 24(2), pages 429-453, February.
    6. Tomasz Korol, 2021. "Examining Statistical Methods in Forecasting Financial Energy of Households in Poland and Taiwan," Energies, MDPI, vol. 14(7), pages 1-14, March.
    7. Tomasz Korol, 2024. "Multi-factor fuzzy sets decision system forecasting consumer insolvency risk," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 51(3), pages 279-302, September.
    8. Erzsébet Németh & Boglárka Deák-Zsótér & Botond Géza Kálmán, 2024. "Order Creates Value: Personality, Attitudinal and Behavioral Factors of Financial Vulnerability," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 19(1), pages 1-21, Enero - M.
    9. Tomasz Korol, 2021. "Evaluation of the Macro- and Micro-Economic Factors Affecting the Financial Energy of Households," Energies, MDPI, vol. 14(12), pages 1-14, June.
    10. Dee Warmath & Genevieve E. O'Connor & Casey Newmeyer & Nancy Wong, 2022. "Have I saved enough to social distance? The role of household financial preparedness in public health response," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(1), pages 319-338, March.
    11. M. M. Naeser Seldal & Ellen K. Nyhus, 2022. "Financial Vulnerability, Financial Literacy, and the Use of Digital Payment Technologies," Journal of Consumer Policy, Springer, vol. 45(2), pages 281-306, June.
    12. Wu, Kai & Wan, Shijia, 2023. "Job stability and household financial vulnerability: Evidence from field surveys in China," Finance Research Letters, Elsevier, vol. 58(PC).
    13. Julia Bayuk & Hyunjung Crystal Lee & Jooyoung Park & Serkan Saka & Debabrata Talukdar & Jayati Sinha, 2022. "Mindfully aware and open: Mitigating subjective and objective financial vulnerability via mindfulness practices," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(3), pages 1284-1311, September.
    14. Kienzler, Mario & Västfjäll, Daniel & Tinghög, Gustav, 2022. "Individual differences in susceptibility to financial bullshit," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    15. Sara Fernández-López & Marcos à lvarez-Espiño & Lucía Rey-Ares, 2023. "A Comprehensive Approach to Measuring Financial Vulnerability and Literacy: Unveiling Connections," SAGE Open, , vol. 13(4), pages 21582440231, November.
    16. Dibb, Sally & Merendino, Alessandro & Aslam, Hussan & Appleyard, Lindsey & Brambley, William, 2021. "Whose rationality? Muddling through the messy emotional reality of financial decision-making," Journal of Business Research, Elsevier, vol. 131(C), pages 826-838.
    17. Krishen, Anjala S. & Dwivedi, Yogesh K. & Bindu, N. & Kumar, K. Satheesh, 2021. "A broad overview of interactive digital marketing: A bibliometric network analysis," Journal of Business Research, Elsevier, vol. 131(C), pages 183-195.
    18. Gaston-Breton, Charlotte & Sørensen, Elin Brandi & Thomsen, Thyra Uth, 2020. "“I want to break free!” How experiences of freedom foster consumer happiness," Journal of Business Research, Elsevier, vol. 121(C), pages 22-32.
    19. Hampson, Daniel P. & Gong, Shiyang & Xie, Yi, 2021. "How consumer confidence affects price conscious behavior: The roles of financial vulnerability and locus of control," Journal of Business Research, Elsevier, vol. 132(C), pages 693-704.
    20. Glavas, Charmaine & Letheren, Kate & Russell-Bennett, Rebekah & McAndrew, Ryan & Bedggood, Rowan E., 2020. "Exploring the resources associated with consumer vulnerability: Designing nuanced retail hardship programs," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).

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