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The Effects of Cognitive Tags and Affective Tags in Mental Accounting on Consumer Decision-making

Author: XuHua
Tutor: LiAiMei
School: Jinan University
Course: Applied Psychology
Keywords: mental accounting emotional accounting cognitive tag affective tag consumerspending
CLC: C934
Type: Master's thesis
Year: 2013
Downloads: 277
Quote: 0
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Abstract


Mental accounting research suggests money is labeled by its source. Cognitive tags of themoney influence its consumption. Emotional accounting posits that money’s “affective tag”influence its consumption. On the basis of previous research, this dissertation includes threeexperimental studies. In order to confirm that cognitive tags and affective tags influenceconsumer’s decision, two studies are organized in the form of situational experiment andlaboratory experiment, respectively. The third study focus on how pay level and affective taginfluence consumer decision.404college students participate in the three studies. The researchresults are as follows:1. Cognitive tags influence consumer spending. Financial windfalls are more likely to bespent on hedonic expenditures such as a short-term travel. The regular income is more likely to bespent on practical choices such as iving expenses and educational expense.2. Affective tags influence consumer spending. Money with negative emotion is spent moreon short-term travel than money with positive emotion. Negative emotional tags play moreimportant role in consumer decision than positive emotional tags.3. Research confirmed the interaction between cognitive tag and affective tag. When thenature of emotional tag change from negative to positive, the consumption gap become narrow inliving expense and short-term travel between windfalls and regular income.These studies proved cognitive tag and affective tag of mental accounting influence consumerbehavior together.

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