THE INFLUENCE OF SELF-REGULATION IN HEURISTICS AND BIASES USED IN CONSUMER DECISION MAKING

Fábio Pimenta de Pádua Júnior, Pedro José Steiner Neto, Edson Melo da Silva Filho, Maximiliano Gonetecki de Oliveira
DOI: https://doi.org/10.21529/RECADM.2014026

Abstract

Among the different heuristics theories that attempt to explain the decision making process, this study explores the gambler's fallacy and the hot hand theory. This paper investigates the influence of self-regulation in heuristics and biases used during consumer decision making. Two experiments were conducted. The first one assessed if results of past performance of stocks affected consumer preference to buy or sell those stocks. Results indicated a significant difference between gender in decision making, with the occurrence of the gambler's fallacy for the male sample, but not for the female sample. The second experiment investigated the role of self-regulation in the gambler's fallacy and hot hand bias. Results showed that after the induction of self-regulation, it was noticed the gambler's fallacy and the hot hand theory in some conditions, indicating changes in the decisions made by consumers. We conclude that there is a significant influence of affective state in decision making and that women are less susceptible to the gambler's fallacy than men.


Keywords

Self-regulation; decision making; gambler’s fallacy; hot hand theory

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References


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