Economics Insights @ CBS

Donald E. Sexton, PhD, a professor of marketing at Columbia University and president of The Arrow Group, Ltd., discusses one key way to link marketing activity to financial performance.

The current work seeks to understand the relationship between luck beliefs and achievement motivation. We hypothesized and found evidence that belief in stable rather than fleeting luck positively relates to achievement motivation (Study 1). Furthermore, belief in stable luck affects achievement motivation via personal agency beliefs (Study 2). These findings add to our understanding of the causal beliefs associated with a sense of mastery and preference for challenging tasks.

Bicultural individuals vary in the degree to which their two cultural identities are integrated versus conflicting — Bicultural Identity Integration (BII). Past research on attribution biases finds that BII influences the way that biculturals shift in response to cultural primes: integrated biculturals shift assimilatively, whereas conflicted biculturals shift contrastively. Proposing that this reflects assimilation versus reactance responses, we tested whether it extends to shifts in self-perceived personality.

This research investigates the effects of refraining from a purchase temptation at one point in time on choices made at a subsequent opportunity to purchase or consume a tempting product. Four experiments involving scenarios and real decisions demonstrate that the salience of restraint at a prior impulse buying opportunity causes consumers to reward themselves subsequently by choosing indulgence over non-indulgence. We show that indulgence is likely to increase only when prior restraint is salient and hence can be used as a justification. As expected, an index of reasons for vs.