The purpose of this dissertation is to provide a better understanding of individual characteristics related to savings and the relationship between saving goals and saving behaviors. Hypotheses based on Regulatory Focus Theory are developed to make predictions related to the connection between saving goals and individual characteristics related to saving.
The hypotheses are tested using two different methods: an experimentally manipulated survey and secondary data analysis. In Study 1, using an Internet-based survey format, data were collected to examine the effects of framing and different saving goals on individuals’ attitudes toward saving. Messages preceding the questionnaire differed as to framing and saving goal characteristics. Individual characteristics were measured based on self-reported responses. In Study 2, data from the 2007 Survey of Consumer Finances was analyzed to explore the relationship between saving goals and savings behavior. Multiple regression and multivariate analysis of variances were employed to analyze experimental data. Logistic regression was used to analyze the Survey of Consumer Finances data.
Results from Study 1 revealed that demographic variables played a significant role in explaining attitude toward saving. However, when demographic variables were not considered, characteristics of saving goals and individual regulatory orientation were significantly related to attitude toward saving. Specifically, promotion-related saving goal and the characteristics of being promotion- or prevention-oriented, positively influenced attitudes toward saving. Study 2 revealed that having a saving goal significantly increased the likelihood of saving, whether the goal was promotion- or prevention-related. In addition, the effect of saving goals was moderated by a household’s regulatory orientation. The likelihood of regular saving was higher when the household exhibited prevention orientation and when the household also listed saving goals that are in the prevention domain. The regulatory fit between an individual characteristic and a goal characteristic was effective only in the prevention domain.
Based on findings from the two studies, it was concluded that saving goals affect attitude towards saving and saving behavior. Moreover, saving goals can be divided into two motivational statuses, which have divergent effects on saving. It was also found that individual regulatory orientations were important factors in explaining people’s attitude toward saving and regular saving behavior. These findings have implications for public policy and consumer education. Public messages can be developed to influence either promotion- or prevention-focused behavior. Targeting consumer segmentation, according to regulatory focus tendency, would increase the effectiveness of public messages. Consumers also can set their financial goals based on whether they are promotion oriented or prevention oriented.