IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/gxbka.html
   My bibliography  Save this paper

Initial Financial Plan Price and Perceived Value of Ongoing Financial Planning Services

Author

Listed:
  • Tharp, Derek

Abstract

This study experimentally investigates whether the price of an initial financial plan influences consumer perceptions of the value of ongoing financial planning services. Using a sample of Amazon Mechanical Turk workers (N = 602), evidence of anchoring effects were observed. In particular, free initial plans were associated with higher perceived value than plans offered at costs of $1,000, $2,000, or $3,000. This finding goes against common industry notions that charging for an initial plan will increase the perceived value of financial planning services. Rather, offering initial plans at prices that are far below the long-term value of ongoing financial planning services may result in an anchoring effect that diminishes a consumer’s perceptions of the value of ongoing services.

Suggested Citation

  • Tharp, Derek, 2022. "Initial Financial Plan Price and Perceived Value of Ongoing Financial Planning Services," SocArXiv gxbka, Center for Open Science.
    • Handle: RePEc:osf:socarx:gxbka
    DOI: 10.31219/osf.io/gxbka
    as

    Download full text from publisher

    File URL: https://osf.io/download/62588820ecf240091cde5944/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/gxbka?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Joseph K. Goodman & Gabriele Paolacci, 2017. "Crowdsourcing Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(1), pages 196-210.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kareklas, Ioannis & Muehling, Darrel D. & King, Skyler, 2019. "The effect of color and self-view priming in persuasive communications," Journal of Business Research, Elsevier, vol. 98(C), pages 33-49.
    2. Azer, Jaylan & Anker, Thomas & Taheri, Babak & Tinsley, Ross, 2023. "Consumer-Driven racial stigmatization: The moderating role of race in online consumer-to-consumer reviews," Journal of Business Research, Elsevier, vol. 157(C).
    3. John Hulland & Jeff Miller, 2018. "“Keep on Turkin’”?," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 789-794, September.
    4. Benedikt Berger & Martin Adam & Alexander Rühr & Alexander Benlian, 2021. "Watch Me Improve—Algorithm Aversion and Demonstrating the Ability to Learn," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 63(1), pages 55-68, February.
    5. Robert Cialdini & Yexin Jessica Li & Adriana Samper & Ned Wellman, 2021. "How Bad Apples Promote Bad Barrels: Unethical Leader Behavior and the Selective Attrition Effect," Journal of Business Ethics, Springer, vol. 168(4), pages 861-880, February.
    6. Cook, Nikolai & Heyes, Anthony, 2022. "Pollution pictures: Psychological exposure to pollution impacts worker productivity in a large-scale field experiment," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    7. Kutaula, Smirti & Gillani, Alvina & Leonidou, Leonidas C. & Christodoulides, Paul, 2022. "Integrating fair trade with circular economy: Personality traits, consumer engagement, and ethically-minded behavior," Journal of Business Research, Elsevier, vol. 144(C), pages 1087-1102.
    8. Jungkeun Kim & Jae-Eun Kim & Jongwon Park, 2018. "Effects of physical cleansing on subsequent unhealthy eating," Marketing Letters, Springer, vol. 29(2), pages 165-176, June.
    9. Michael J. Weir & Thomas W. Sproul, 2019. "Identifying Drivers of Genetically Modified Seafood Demand: Evidence from a Choice Experiment," Sustainability, MDPI, vol. 11(14), pages 1-21, July.
    10. William J. Bazley & Henrik Cronqvist & Milica Mormann, 2021. "Visual Finance: The Pervasive Effects of Red on Investor Behavior," Management Science, INFORMS, vol. 67(9), pages 5616-5641, September.
    11. Henkens, Bieke & Verleye, Katrien & Larivière, Bart, 2021. "The smarter, the better?! Customer well-being, engagement, and perceptions in smart service systems," International Journal of Research in Marketing, Elsevier, vol. 38(2), pages 425-447.
    12. Sigurdsson, Valdimar & Larsen, Nils Magne & Pálsdóttir, Rakel Gyða & Folwarczny, Michal & Menon, R.G. Vishnu & Fagerstrøm, Asle, 2022. "Increasing the effectiveness of ecological food signaling: Comparing sustainability tags with eco-labels," Journal of Business Research, Elsevier, vol. 139(C), pages 1099-1110.
    13. Anna Adamik & Michał Nowicki & Andrius Puksas, 2022. "Energy Oriented Concepts and Other SMART WORLD Trends as Game Changers of Co-Production—Reality or Future?," Energies, MDPI, vol. 15(11), pages 1-38, June.
    14. Martínez-López, Francisco J. & Li, Yangchun & Su, Wan & Feng, Changyuan, 2019. "To have or have not: Buy buttons on social platforms," Journal of Business Research, Elsevier, vol. 105(C), pages 33-48.
    15. Sham, Rohana & Chong, Han Xi & Cheng-Xi Aw, Eugene & Bibi Tkm Thangal, Thahira & Abdamia, Noranita binti, 2023. "Switching up the delivery game: Understanding switching intention to retail drone delivery services," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    16. Yi Luo & Steven E. Salterio, 2022. "The Effect of Gender on Investors’ Judgments and Decision-Making," Journal of Business Ethics, Springer, vol. 179(1), pages 237-258, August.
    17. Whelan, Jodie & Hingston, Sean T., 2022. "Pathogens, privilege, and purity: How pathogen threat and childhood socioeconomic status influence consumers’ condemnation of purity violations," Journal of Business Research, Elsevier, vol. 142(C), pages 636-647.
    18. Mahmood, Ammara & Luffarelli, Jonathan & Mukesh, Mudra, 2019. "What's in a logo? The impact of complex visual cues in equity crowdfunding," Journal of Business Venturing, Elsevier, vol. 34(1), pages 41-62.
    19. Junzhao Ma & Dewi Tojib & Yelena Tsarenko, 2022. "Sex Robots: Are We Ready for Them? An Exploration of the Psychological Mechanisms Underlying People’s Receptiveness of Sex Robots," Journal of Business Ethics, Springer, vol. 178(4), pages 1091-1107, July.
    20. Gobena, Lemessa Bayissa & Van Dijke, Marius, 2017. "Fear and caring: Procedural justice, trust, and collective identification as antecedents of voluntary tax compliance," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 1-16.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:gxbka. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.