Chinese are more loss averse than British

Guo, T. and Spina, R. (2016) Chinese are more loss averse than British. Asian Journal of Social Psychology, 19 (2). pp. 154-162. ISSN 1367-2223

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Abstract

This research investigates how culture might influence loss aversion. Chinese were expected to be more loss averse than British because of cultural differences in regulatory focus. Study 1 reveals that compared with British participants, Chinese participants were less likely to give up gifts they had received in exchange for new gifts. In Study 2, Chinese and British participants imagined buying a computer which either had a high specification and a high price tag (high reference), or a basic specification and a low price tag (low reference). Participants were informed that the (reference) computer was unavailable, and they had to choose between two available computers, which were both cheaper and less powerful than the high reference computer, and more expensive and more powerful than the low reference computer. The results reveal that the difference in price tag between the two available computers had a bigger impact on Chinese buying decisions than on British buying decisions when it was viewed as a loss. Furthermore, both promotion focus and prevention focus mediated the influence of culture on buying decisions in the low reference condition. No cross-cultural difference was found in the high reference condition.

Item Type: Article
Subjects: B Philosophy. Psychology. Religion > BF Psychology
H Social Sciences > H Social Sciences (General)
Q Science > Q Science (General)
Divisions: Research Centres > POWER Centre
Academic Areas > Institute of Education, Social and Life Sciences > Psychology
Depositing User: Roy Spina
Date Deposited: 02 Nov 2016 14:54
Last Modified: 30 Apr 2018 13:21
URI: https://eprints.chi.ac.uk/id/eprint/2057

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