Mental budgeting and the malleability of decision making

Elgeka, Honey Wahyuni Sugiharto and Ma, Jianhong (2020) Mental budgeting and the malleability of decision making. Psikohumaniora: Jurnal Penelitian Psikologi, 5 (2). pp. 139-154. ISSN 2502-9363; E-ISSN 2527-7456

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Abstract

Financial difficulties commonly occur in college students' lives. Problems might be caused by a lack of understanding about managing money, such as falling into the temptation of buying unnecessary discounted goods or choice justification. The research aims to understand how mental budgeting influences purchasing discounted items and choice justification. In the study, two experiments were undertaken to explain the reaction of discount, and two others to describe choice justification (N=169 in Indonesia, N=168 in China). Mann-Whitney U and ANOVA tests were used to analyze the experiments. Mental budgeting scales were also employed in experiments 3 and 4. The results show t hat when individuals receive a discounted offer for luxury goods, they will fall into the temptation of buying them. This takes place because they do not want to lose t he opportunity to obtain such goods at a cheap price. In addition, when individuals receive offers related to physiological needs (i.e., food), they will practice choice justification. This means that all people need to understand the concept of mental budgeting and make realistic budgets.

Item Type:	Article
Uncontrolled Keywords:	discounting; choice justification; mental budgeting
Subjects:	B Philosophy. Psychology. Religion > BF Psychology
Divisions:	Faculty of Psychology > Department of Psychology
Depositing User:	Ester Sri W. 196039
Date Deposited:	12 Jan 2021 03:22
Last Modified:	25 Oct 2023 07:12
URI:	http://repository.ubaya.ac.id/id/eprint/38741

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