Search results
1 – 10 of over 32000Amir Emami, Zeinab Taheri and Rasim Zuferi
This paper aims to investigate the interactive relationship between learning styles and cognitive biases as two essential factors affecting information processing in online…
Abstract
Purpose
This paper aims to investigate the interactive relationship between learning styles and cognitive biases as two essential factors affecting information processing in online purchases.
Design/methodology/approach
This research is applied in nature but extends the knowledge in the area of consumer behavior. By using the correlational research method, the present study uncovers the relationship between various sorts of decision biases and learning styles among online buyers.
Findings
According to the results, the most affected learning style among all is reflective observation. Several biases influence people with this learning style, namely, risky framing, attribute framing and aggregated/segregated framing. In the case of active experimentation, online customers can undo its effect. Therefore, online sellers should be aware of their target customers with such a learning style. In addition, online purchasers with the reflective observation learning style are more prone to aggregation and segregation of sales information.
Originality/value
The findings enhance the understanding of consumer buying behavior and the extent to which learning styles impact cognitive biases and framing effects in online shopping.
Details
Keywords
This paper aims to investigate how the Japanese media conveyed the country’s foreign aid policy and analyse how framing biases in the news differ depending on which language…
Abstract
Purpose
This paper aims to investigate how the Japanese media conveyed the country’s foreign aid policy and analyse how framing biases in the news differ depending on which language (either Japanese or English) was used in the broadcasts.
Design/methodology/approach
This study uses a qualitative single case-study design and conducts a content analysis. The study uses news videos about the fifth Tokyo International Conference on African Development aired on YouTube by the Japanese media using Japanese and English.
Findings
The findings reveal subtle but notable differences in the patterns of the framing biases in the Japanese media’s news aired in Japanese intended for the domestic audience, and in the news on the same topic broadcast in English to the international audience.
Research limitations/implications
The limitation of the study is the rather small data set used for the single case study of one event.
Social implications
Framing biases could lead the general public in a monolingual society to a more skewed view of their government’s policy and its activities abroad. This could be an obstacle to developing a common ground for global issues and cross-border policy agendas.
Originality/value
The study explores an under-researched function of language in international affairs. It highlights how the mass media in a non-English-speaking country uses a dual approach to framing news while addressing different audiences. To the best of the author’s knowledge, the context that this paper deals with is novel because there are limited studies on the nexus between the influence of language choices and media logic in the field of international business.
Details
Keywords
Zack Enslin, John Hall and Elda du Toit
The emerging business partner role of management accountants (MAs) results in an increased requirement of MAs to make business decisions. Frame dependence cognitive biases…
Abstract
Purpose
The emerging business partner role of management accountants (MAs) results in an increased requirement of MAs to make business decisions. Frame dependence cognitive biases regularly influence decisions made in conditions of uncertainty, as is the case in business decision-making. Consequently, this study aims to examine susceptibility of MAs to frame dependence bias.
Design/methodology/approach
A survey was conducted among an international sample of practising MAs. The proportion of MAs influenced by framing bias was analysed and compared to findings in other populations. Logistic regression was then used to determine whether MAs who exhibit a higher preference for evidence-based (as opposed to intuitive) decision-making are more susceptible to framing bias.
Findings
Despite a comparatively high preference for evidence-based decision-making, the prevalence of framing bias among MAs is comparable to that of other populations. A higher preference for evidence-based decision-making was found to only be associated with higher susceptibility to endowment effect bias.
Originality/value
To the best of the authors’ knowledge, this is the first study to comprehensively examine framing bias for MAs as a group of decision-makers. Additionally, this study’s sample consists of practising MAs, and not only students.
Details
Keywords
Jung Hyun Lee, Hillary Anger Elfenbein and William P. Bottom
This study aims to test negotiation outcomes when bilinguals negotiate in a foreign rather than their native language. Decision research on the foreign language effect indicates…
Abstract
Purpose
This study aims to test negotiation outcomes when bilinguals negotiate in a foreign rather than their native language. Decision research on the foreign language effect indicates that bilingual individuals may be less susceptible to framing bias when using a foreign language because they make less emotional and biased choices. With increasing international business activity, there is a pressing need to examine the effect of language on bilingual negotiators.
Design/methodology/approach
The authors tested the hypotheses using a two (task frame: gain vs loss) × 2 (language: foreign vs native) factorial design recruiting 246 Korean–English bilinguals. A negotiation simulation with three issues was used, and participants exchanged offers with a preprogrammed computer they believed to be a real counterpart.
Findings
There was no significant interaction effect between framing and language on the offers made, but the framing effect was mitigated and nonsignificant for negotiators who used their foreign language. The interaction between framing and language conditions significantly affected negotiators’ positive emotions and satisfaction with the negotiation.
Originality/value
The uniqueness of this paper is related to its effort to investigate the effect of negotiation language on a negotiator’s decision-making. Considering globalization and the increasing prevalence of international negotiations, this paper has implications for researchers and practitioners.
Details
Keywords
This article seeks to analyse the skills and knowledge that have a positive impact on the reproduction of the core frames of social actors in the mass media.
Abstract
Purpose
This article seeks to analyse the skills and knowledge that have a positive impact on the reproduction of the core frames of social actors in the mass media.
Design/methodology/approach
The theoretical discussion is accompanied by a cross‐cultural case study of the debate surrounding the leaked e‐mail correspondence between climate researchers at the University of East Anglia (UEA) in 2009. First, the authors analysed the framing work of the three main actors with their respective views, namely UEA and the blogs “Real climate”, “Climate audit” and “The air vent”. Second, they conducted an analysis of the media coverage of the issue in the UK, the USA, Germany and Norway, focusing on the importance of cultural factors, psychological biases and conformity to journalistic needs.
Findings
The literature review came to the conclusion that public relations practitioners stand good chances to succeed with their framing when they are able to conceive a message in a way that: is resonant with the underlying culture; appeals to psychological biases; and conforms to journalistic needs. The authors use “framing expertise” as an umbrella term for the knowledge and the skills related to these aspects when designing and promoting frames. In the case study, these theoretical assumptions were tested. While three different frames dominated the discourse, no clear winner of the framing contest was observed. Though qualitative differences in their framing expertise were noted, the frames of all of the strategic actors were accepted in the media, perhaps due to the norms of journalistic balance.
Research limitations
As this study is based on a single case, more research is needed to back up the findings and elaborate on the knowledge and skills needed when framing an issue.
Originality/value
The article pulls together, discusses and elaborates on a body of literature that thus far has been scattered, and makes contributions towards a better understanding of what it is that public relations practitioners actually do.
Details
Keywords
This paper seeks to examine the role of framing effects and the third‐party's need for consistency in intervention strategy selection in managerial dispute intervention. The…
Abstract
Purpose
This paper seeks to examine the role of framing effects and the third‐party's need for consistency in intervention strategy selection in managerial dispute intervention. The objective is to move research forward by adopting a decision‐making perspective of dispute intervention and examining the role of framing in such a context.
Design/methodology/approach
A scenario‐based experimental approach was used and data were collected on 318 intervention cases from 106 students majoring in business, and enrolled in a medium‐sized public university.
Findings
Results suggest that framing does influence the selection of intervention strategies to some extent, but the third‐party's need for consistency between his/her preferred settlement and the actual final settlement plays a bigger role in influencing strategy selection.
Research limitations/implications
This study higlights the merits of adopting a decision‐making perspective to understand managerial dispute intervention and points to the need for extending and testing more of the key concepts from that area of research.
Practical implications
The results indicating support for a need for consistency on the part of managerial third‐parties as well as the influence of framing underscore the need for managers to be aware of these factors influencing their conflict management behaviours and to strive to “rise above the fray”.
Originality/value
The results of this paper challenge the conventional view that third‐parties in disputes are generally more objective and can see the “big picture”, and represents a valuable first step towards gaining a better understanding the role of cognitive biases and heuristics in managerial dispute intervention.
Details
Keywords
Taofik Hidajat, Ina Primiana, Sulaeman Rahman and Erie Febrian
This paper aims to identify psychological factors that influence people to be involved in Ponzi and pyramid schemes.
Abstract
Purpose
This paper aims to identify psychological factors that influence people to be involved in Ponzi and pyramid schemes.
Design/methodology/approach
A psychological approach to finance or behavioural finance is applied in this research because of the assumption that human beings are not always rational. The sample consisted of 98 investors in 11 cities in Indonesia who were or had invested in an investment program with a Ponzi or pyramid scheme. The snowball sampling technique was applied.
Findings
The conclusion is that optimism (emotional bias), confirmation bias, representativeness bias, framing bias and overconfidence (cognitive bias) positively influenced investment decisions related to Ponzi and pyramid schemes.
Originality/value
The novelty aspect of this research is the implementation of a behavioural finance perspective to answer and express the fascinating phenomenon of Ponzi and pyramid investment schemes.
Details
Keywords
Jérôme Boutang and Michel De Lara
In a modern world increasingly perceived as uncertain, the mere purchase of a household cleaning product, or a seemingly harmless bottle of milk, conveys interrogations about…
Abstract
Purpose
In a modern world increasingly perceived as uncertain, the mere purchase of a household cleaning product, or a seemingly harmless bottle of milk, conveys interrogations about potential hazards, from environmental to health impacts. The main purpose of this paper is to suggest that risk could be considered as one of the major dimensions of choice for a wide range of concerns and markets, alongside aspiration/satisfaction, and tackled efficiently by mobilizing the recent findings of cognitive sciences, neurosciences and evolutionary psychology. It is felt that consumer research could benefit more widely from psychological and evolutionary-grounded risk theories.
Design/methodology/approach
In this study, some 50 years of marketing management literature, as well as risk-specialized literature, was examined in an attempt to get a grasp of how risk is handled by consumer sciences and of whether they make some use of the most recent academic works on mental biases, non-mainstream decision-making processes or evolutionary roots of behavior. We then tested and formulated several hypotheses regarding risk profiles and preferences in the sector of insurance, by participating in an Axa Research Fund–Paris School of Economics research project.
Findings
It is suggested that consumer profiles could be enriched by risk-taking attitudes, that risk could be part of the “reason why” of brand positioning, and that brand, as well as public policy communication, could benefit from a targeted use of risk perception biases.
Originality/value
This paper proposes to apply evolutionary-based psychological concepts to build perceptual maps describing people and consumers on both aspiration and risk attitude axis, and to design communication tools according to psychological research on message framing and biases. Such an approach mobilizes not only the recent findings of cognitive sciences and neurosciences but also the understanding of the roots of risk attitudes and perception. Those maps and framing could probably be applied to many sectors, markets and public issues, from commodities to personal products and services (food, luxury goods, electronics, financial products, tourism, design or insurance).
Details
Keywords
The overall purpose of the study is to identify the impact of heuristics, prospect theory biases and personality traits on property investment decision-making of rank and file…
Abstract
Purpose
The overall purpose of the study is to identify the impact of heuristics, prospect theory biases and personality traits on property investment decision-making of rank and file individuals in Kosovo, with a concentration in Prishtina, which is the city with the largest number of investors and property transactions in Kosovo.
Design/methodology/approach
The present study used quantitative research with the questionnaire used as a research instrument. The questionnaire survey was conducted with 1,209 rank and file property investors in Prishtina, Kosovo. The sampling method used in this research was stratified random sampling.
Findings
The study finds that heuristics, prospect theory biases and personality traits as a whole model affect investment decision-making in Prishtina, Kosovo. Nevertheless, the study finds that not all dimensions of the constructed research model (heuristics, the prospect theory and personality) affect the property investment decision-making in Prishtina at the same level. Whereas prospect theory biases (regret aversion, framing and self-control) seem to very strongly influence property investment decision-making of rank and file investors in Prishtina, personality traits (conscientiousness, neuroticism and openness to new experiences) seem not to affect the real estate investment decision-making. Finally, heuristics biases also strongly influence the real estate investment decision-making with a strong statistically significant explanatory power but not to the same degree as prospect theory biases.
Practical implications
The present study contributes toward the understanding of the role that is played by heuristics, prospect theory biases and personality traits in Kosovo's property investment industry. More importantly, the implication of the results of the present study is that it goes some way toward enhancing understanding of heuristic and prospect theory-driven biases and their influence on property investment decision-making in a developing economy. The present study paves the way to further analyze why personality traits do not influence property investment decision-making in Kosovo.
Originality/value
The present study is the first quantification of the impact of heuristics, prospect theory biases and personality traits on the investment decision-making of rank and file individuals in Prishtina, Kosovo.
Details
Keywords
Chengyee Janie Chang and Yan Luo
This paper aims to examine major cognitive biases in auditors’ analyses involving visualization, as well as proposes practical approaches to address such biases in data…
Abstract
Purpose
This paper aims to examine major cognitive biases in auditors’ analyses involving visualization, as well as proposes practical approaches to address such biases in data visualization.
Design/methodology/approach
Using the professional judgment framework of KPMG (2011), this study performs an analysis of whether and how five major types of cognitive biases (framing, availability, overconfidence, anchoring and confirmation) may occur in an auditor’s data visualization and how such biases potentially compromise audit quality.
Findings
The analysis suggests that data visualization can trigger and/or aggravate the common cognitive biases in audit. If not properly addressed, such biases may adversely affect auditors' judgment and decision-making.
Practical implications
To ensure that data visualization improves audit efficiency and effectiveness, it is essential that auditors are aware of and successfully address cognitive biases in data visualization. Six practical approaches to debias cognitive biases in auditors’ visualization are proposed: using data visualization to complement rather than supplement traditional audit evidence; positioning data visualization to support rather than replace sophisticated analytics tools; using a dashboard with multiple dimensions; using both visualized and tabular data in analyses; assigning experienced audit staff; and providing pre-audit tutorials on cognitive bias and visualization.
Originality/value
The study raises awareness of psychological issues in an audit setting.
Details