Validating the key characteristics of financial inertia

The current thesis presents two experimental studies which are part of larger research project that used a prototype analysis to identify the main characteristics of financial inertia. Using a bottom-up approach in which lay people were asked which features they associated with being financially inert, the prior studies in the research project had identified central and peripheral features. When a feature of a prototype is more central it is more easily remembered and one is quicker to define it as being prototypical, compared to peripheral features. That is why we used recall and recognition tasks (Study 1) and a classification task (Study 2) as means of validating the previously found features of inertia. In Study 1 participants were shown a list of features, and after a filler task were asked to freely recall features, or were presented with a list of features and asked whether they recognized the features or not. Results showed that participants recalled and recognized central...Show moreThe current thesis presents two experimental studies which are part of larger research project that used a prototype analysis to identify the main characteristics of financial inertia. Using a bottom-up approach in which lay people were asked which features they associated with being financially inert, the prior studies in the research project had identified central and peripheral features. When a feature of a prototype is more central it is more easily remembered and one is quicker to define it as being prototypical, compared to peripheral features. That is why we used recall and recognition tasks (Study 1) and a classification task (Study 2) as means of validating the previously found features of inertia. In Study 1 participants were shown a list of features, and after a filler task were asked to freely recall features, or were presented with a list of features and asked whether they recognized the features or not. Results showed that participants recalled and recognized central features more often than peripheral ones. In Study 2 participants were presented with a list of items that consisted of central and peripheral features of financial inertia, as well as unrelated control features. Participants were asked to classify each item as being characteristic of financial inertia, or as being unrelated. Central features were more often classified as characteristic of financial inertia than peripheral features, but there was no difference in response time. The control items were correctly and faster classified as being unrelated. Combined, the studies validated the distinction between central and peripheral features of financial inertia.Show less

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Validating the key characteristics of financial inertia