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Money in the Bank: Feeling Powerful Increases Saving

Author

Listed:
  • Garbinsky, Emily N.

    (Stanford University)

  • Klesse, Anne-Kathrin

    (Tilburg University)

  • Aaker, Jennifer

    (Stanford University)

Abstract

Across five studies, this research reveals that feeling powerful increases saving. This effect is driven by the desire to maintain one's current state. When the purpose of saving is no longer to accumulate money, but to spend it on a status-related product, the basic effect is reversed and those who feel powerless save more. Further, if money can no longer aid in maintaining one's current state, because power is already secure or because power is maintained by accumulating an alternative resource (e.g., knowledge), the effect of feeling powerful on saving disappears. These findings are discussed in light of their implications for research on power and saving.

Suggested Citation

  • Garbinsky, Emily N. & Klesse, Anne-Kathrin & Aaker, Jennifer, 2014. "Money in the Bank: Feeling Powerful Increases Saving," Research Papers 2146, Stanford University, Graduate School of Business.
    • Handle: RePEc:ecl:stabus:2146
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    File URL: http://www.gsb.stanford.edu/faculty-research/working-papers/money-bank-feeling-powerful-increases-saving
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    Cited by:

    1. Wenli Zou, Lili & Kin (Bennett) Yim, Chi & Wa Chan, Kimmy, 2022. "How firms can create delightful customer experience? Contrasting roles of future reward uncertainty," Journal of Business Research, Elsevier, vol. 147(C), pages 477-490.
    2. Hohenberger, Christoph & Spörrle, Matthias & Welpe, Isabell M., 2017. "Not fearless, but self-enhanced: The effects of anxiety on the willingness to use autonomous cars depend on individual levels of self-enhancement," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 40-52.
    3. D. M. Sachinthanee Dissanayake & Ananda K. L. Jayawardana, 2023. "The impact of personal sense of power on unethical decision-making: a moderated mediation model of love of money motive and power distance orientation," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(1), pages 19-34, March.
    4. Tost, Leigh Plunkett & Wade-Benzoni, Kimberly A. & Johnson, Hana Huang, 2015. "Noblesse oblige emerges (with time): Power enhances intergenerational beneficence," Organizational Behavior and Human Decision Processes, Elsevier, vol. 128(C), pages 61-73.
    5. Dominika Maison & Marta Marchlewska & Katarzyna Sekścińska & Joanna Rudzinska-Wojciechowska & Filip Łozowski, 2019. "You don’t have to be rich to save money: On the relationship between objective versus subjective financial situation and having savings," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-15, April.
    6. Lu Yang & Yuhuang Zheng & Rui Chen, 2021. "Who has a cushion? The interactive effect of social exclusion and gender on fixed savings," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1398-1415, December.
    7. Joanna Rudzinska-Wojciechowska, 2017. "If you want to save, focus on the forest rather than on trees. The effects of shifts in levels of construal on saving decisions," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-18, May.
    8. Jin, Fei & Zhu, Huawei & Tu, Ping, 2020. "How recipient group membership affects the effect of power states on prosocial behaviors," Journal of Business Research, Elsevier, vol. 108(C), pages 307-315.
    9. Wang, Yajin, 2022. "A conceptual framework of contemporary luxury consumption," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 788-803.
    10. Wang, Lili & Kim, Sara & Zhou, Xinyue, 2023. "Money in a “Safe” place: Money anthropomorphism increases saving behavior," International Journal of Research in Marketing, Elsevier, vol. 40(1), pages 88-108.
    11. Terri Friedline & Stacia West, 2016. "Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 649-671, December.
    12. Elodie Gentina & Thomas Li-Ping Tang & Qinxuan Gu, 2018. "Do Parents and Peers Influence Adolescents’ Monetary Intelligence and Consumer Ethics? French and Chinese Adolescents and Behavioral Economics," Journal of Business Ethics, Springer, vol. 151(1), pages 115-140, August.
    13. Michael J. Barone & T. J. Bae & Shanshan Qian & Jason d’Mello, 2017. "Power and the appeal of the deal: how consumers value the control provided by Pay What You Want (PWYW) pricing," Marketing Letters, Springer, vol. 28(3), pages 437-447, September.
    14. Wei, Chuang & Liu, Maggie Wenjing & Keh, Hean Tat, 2020. "The road to consumer forgiveness is paved with money or apology? The roles of empathy and power in service recovery," Journal of Business Research, Elsevier, vol. 118(C), pages 321-334.
    15. Choi, Woo Jin & Park, JaeHong & Yoon, Ho-Jung, 2018. "Your gift choice for your boss versus your subordinate would not be the same: The interplay of power and giver-receiver role on consumers' gift preferences," Journal of Business Research, Elsevier, vol. 91(C), pages 1-7.

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