...THE JOURNAL OF BEHAVIORAL FINANCE, 11: 82–91, 2010 Copyright C The Institute of Behavioral Finance ISSN: 1542-7560 print / 1542-7579 online DOI: 10.1080/15427560.2010.481981 Psychological and Cultural Factors in the Choice of Mortgage Products: A Behavioral Investigation Masaki Mori International University of Japan Julian Diaz III and Alan J. Ziobrowski Georgia State University Nico B. Rottke European Business School Using data from three countries that differ economically, culturally, and geographically, this study examines the role of Prospect Theory’s reflection effect, a psychological factor, in combination with Uncertainty Avoidance (UA), a cultural factor, on the choice of mortgage products. Experiments were conducted using business professionals in the United States, Germany, and Japan. The results suggest that risk-averse people tend to become more risk seeking, leaning more toward adjustable-rate mortgages (ARMs) when choosing a mortgage type, and that this psychological effect may underlie the mortgage choices of people who tend to choose ARMs, even across countries with different cultures. Keywords: Adjustable-rate mortgage, Fixed-rate mortgage, Prospect theory, Uncertainty avoidance, Experiment INTRODUCTION In terms of household risk management, the choice of a residential mortgage is one of the most significant decisions to make. At the end of second-quarter 2005, the value of outstanding U.S. residential mortgages was $8 trillion, 65% of the...
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...METHODOLOGY A. RESEARCH APPROACH This research consists of a survey, considered a quantitative strategy an approach that “that provides a quantitative or numeric descript of trends, attitudes, or opinions of a population by studying a sample of the population” (Creswell, 2009, p. 12). This study will involve a questionnaire, used like a structured interview for collecting data to assist with answering the three research questions; and intended to generalize a sample population of five NGOs (Babbie, 1990 cited in Creswell, 2009, p. 12). B. CHARACTERISTICS OF RESEARCH APPROACH The characteristics of case study research embody the following (derived from Creswell, 2009, p. 175-176): multiple sources of data; theoretical lens; and participant meaning.. First, multiple sources of data may include: observation, case studies related to humanitarian organizations, documentation from humanitarian organization’s source to donors, and other mass media and social media available. Additionally, the study will use framing theory as its guiding approach and how it relates to soft power theory, to understand how humanitarian organizations develop their messages. Finally, the participant meaning by reviewing the responses NGOs have toward the research questions to view “the meaning that the participants hold about the problem or issue, not the meaning that the reaserchers bring to the research or writers express in the literature”(Creswell, 2009, p. 176). C. RESEARCH STRATEGY ...
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...Burch, L. M. (n.d.). Journal of Broadcasting & Electronic Media. Retrieved March 24, 2016, from http://www.tandfonline.com/loi/hbem20#.VvS04RasIlI Introduction- In the critical analysis “Kissing in the Carnage: An Examination of Framing on Twitter During the Vancouver Riots” by Lauren M. Burch, Evan L. Frederick & Ann Pegoraro; it was certain that the biggest hockey game of the National Hockey League season had been occurring, but the riot it has spawned in Vancouver makes it look like something far more politically charged may be the cause. In the introduction of the text it states “On June 15, 2011, more than 150,000 fans assembled on the streets of Vancouver to watch game seven of the Stanley Cup Finals between the Vancouver Canucks and the Boston Bruins. Within minutes of the Canucks loss, a riot began. One aspect that made this event unique was that it was documented on Twitter” this would clearly indicate that there was a relationship between the fans knowledge of the current affair which was the hockey game and the Literary review-RQ- 1. Is there a relationship between social media use and KNOWLEDGE of current affairs? 2. What is the relationship between social media use and knowledge of stand your ground law? 3. What is the relationship between social media use and attitude toward stand your ground law? Methodology- In the text it is stated that Twitter is a fairly new medium within the sport communication scenery; a growing body of literature...
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...Decision-Making Case Study HCS/514 Ed Paluch Decision-Making Case Study It has been estimated that approximately 75% of the average managers time is spent on the decision-making process (Free Case Study on Decision Making, 2011). A critical component in managing an organization, its staff and resources is successful decision-making. The quality and efficiency of those decisions will determine how well the manager is doing. Managers have plenty of responsibility because they are the ones that have to make the right decision when solving issues. Today, decision-making regarding health services for consumers and patients are becoming guided by evidence of need, effectiveness, and ways to use resources optimally. This is becoming a growing model among health care organizations and its managers. However, there are barriers for managers in using evidence decision-making. Time is a big barrier, there are deadlines that managers usually have to work with that is very time consuming. For instance, plenty of time is required to research, accessing relevant data, reliance on outside consultants and subordinates in acquiring quality information, politics, and lack of resources. The use of an sufficient decision-making tool that assists managers in efficiently making strategic, evidence based decision-making as well as improving the performance of their organizations is the Informed Decisions Toolbox as outlined by Thomas Rundall. The Informed Decisions Toolbox is...
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...the contractor and to society in general. Modular construction uses pre-engineered volumetric units that are installed on site as fitted-out and serviced ‘building blocks’. The use of modular construction is directly influenced by the client’s requirements for speed of construction, quality, added benefits of economy of scale, as well as single point procurement. These benefits may be quantified in a holistic assessment of the costs and value of modular construction in relation to more traditional alternatives. Light steel framing is an integral part of modular construction as it is strong, light weight, durable, accurate, free from long-term movement, and is well proven in a wide range of applications. It is part of an established infrastructure of supply and manufacture and supported by British Standards and various design guides. Modular construction is also widely used in Japan, Scandinavia and the USA, where light steel framing is the primary structural medium, and leads to flexibility in internal planning and robust architectural solutions . There are also important opportunities for modular construction in extensions to existing buildings either by attaching serviced units to the side of buildings, or by roof-top modules. The attributes of modular construction that are compatible with these objectives are: _ reduced construction costs, especially when combined with economy of scale production (10%+) _ much reduced construction time on site (50...
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...744 words Introduction Ultimatum game has received extensive interests in behavioural economics. It is a common social phenomenon, i.e. customer asks for a discount price on certain goods or buys them somewhere else; employees want better salary package or resign for better job. Most of the studies are under gain framework, which means the accepters can either something or nothing. Meanwhile, it is suggested that the framing of the study (gain and loss) could affect the outcome (ATHK1001, 2014). Zhou and Wu (2011) have conducted a study which asked participants to spilt either a gain or a loss of 10 Chinese Yuan in both gain and loss frames to investigate the effects of framing and explanations of the outcomes. Their study consists of three experiments while experiment 1 is made of two sub-experiments. They found that loss framing has higher rejection rates in all situations and they conclude that loss frame for the UG was like a negatively framed negotiation which makes it harder to come to a compromise (Zhou and Wu, 2011). They suspected that loss framing is associated with unfairness. To examine their finding, ATHK 1001 has conducted a similar survey to validate Zhou and Wu’s study. Hypotheses A series of null hypotheses have been used. The first hypothesis (H1) proposed that gain frame condition makes proposers to make more unfair offers. The second hypothesis (H2) postulates that very unfair offers are more likely to be accepted in the loss frame condition. While the...
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...MAA 703 Management Accounting Trimester 1, 2011 Assignment - A Group Case Study Due date: Monday 23 May 2011. Marks: 20% Length: approximately 1500 words This is a group assignment. Only in very exceptional circumstances will permission be given to complete an individual assignment. Details regarding assignment submission will be provided later. Please note the following requirements AND FOLLOW THEM CAREFULLY: • Your assignment should be presented as a Word document with a font size of 12. Include tables where appropriate, but do not include Excel worksheets. • Print on one side of the paper only. • Your group’s number should be on the first page near the top right hand corner. • The names and ID numbers of all group members should be shown on the first page. • Page numbers should be at the top right hand corner of each page. • The assignment has two parts: A and B. Keep your answers to Parts A and B of the assignment separate. Number each answer clearly. Do not combine answers to different questions. • Staple the pages at the top left hand corner. Do not put your assignment in any sort of plastic binder as the marked assignments will be posted back to the first person named in the list of group members as shown on DSO (clear plastic envelopes are acceptable). CASE STUDY – GIFTMASTER LTD The Business Situation (Part A) Giftmaster Ltd has operated for many years as a nationally recognized retailer...
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...Decision Making Study Decision Making Study Providing medical care to patients at the County Clinic can be challenging from a financial perspective. This vulnerable population contains challenges in treating patients with difficult multi-factorial disease entities, patients with transportation and other access difficulties, and patients who are uninsured or underinsured. The majority of patients at the County Clinic are covered by Medicare and Medicaid. Recently, the departmental budget for the County Clinic was cut by 15%. In order to continue to provide services for this vulnerable group, the managers at County Clinic will need to evaluate how to best address the needs of the community by eliminating or introducing services that will best address the significant health care needs required by this population. Making a decision regarding a health policy initiative in the face of budget constraints requires that management takes a reasoned approach to decision making. In order to make these decisions, managers need to find the best evidence available, assess the available evidence, and determine which evidence is relevant to the decision making process. Thomas Rundall, Ph. D at the University of California at Berkeley developed a toolbox to aid decision makers in this area. His document is called the Informed Decisions Toolbox. This toolbox contains six steps that will be addressed by County Clinic in developing an action plan for the budget constraints...
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...Volume 8 Number 3 September 2003 447-461 http://www.nova.edu/ssss/QR/QR8-3/mccaslin.pdf The Five-Question Method For Framing A Qualitative Research Study Mark L. McCaslin University of Idaho, Idaho Falls, Idaho, USA Karen Wilson Scott University of Idaho, Idaho Falls, Idaho, USA The Five-Question Method is an approach to framing Qualitative Research, focusing on the methodologies of five of the major traditions in qualitative research: biography, ethnography, phenomenology, grounded theory, and case study. Asking Five Questions, novice researchers select a methodology appropriate to the desired perspective on the selected topic. The Method facilitates identifying and writing a Problem Statement. Through taking a future perspective, the researcher discovers the importance and direction of the study and composes a Purpose Statement. The process develops an overarching research question integrating the purpose and the research problem. The role of the researcher and management of assumptions and biases is discussed. The Five-Question Method simplifies the framing process promoting quality in qualitative research design. A course outline is appended. Key words: Qualitative Research, Five-Question Method, Biography Research, Phenomenology Research, Grounded Theory Research, Case Study Research, and Ethnography Research Introduction Planning a qualitative study for the first time tends to be an intimidating venture for graduate students just entering the field. Even armed with...
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...Decision-Making Case Study The looming changes in health care are a frequent topic in many meetings with health care providers. Budget cuts are not just a speculation but are a reality. Decision-making to provide quality patient care with less money is a challenge at best. The Informed Decisions Toolbox can assist administrators and managers with evidence-based decisions that will allow patients to receive the quality care they deserve while reducing expenses. The Informed Decisions Toolbox The Informed Decisions Toolbox (IDT) is the result of a research study to aid managers with making evidence-based decisions that improve organizational performance. The IDT has an approach of six steps to decision-making (Rundell, et al, 2007): (1) framing the management question, (2) finding sources of information, (3) assessing the accuracy of the information, (4) assessing the applicability of the information, (5) assessing the actionability of the evidence, and (6) determining if the information is adequate (p. 325). As a facilitator for the use of evidence-based research in decision-making, the IDT assists decision-makers with estimating how operational and strategic decisions will have an effect on the organization. Evidence-based decision-making is not new to the health care industry. Clinicians have incorporated evidence-based research for years when making patient treatment determination. The use of evidence-based research for decision-making in other realms of healthcare...
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...Enjoy! Hedonic Consumption and Compliance with Assertive Messages ANN KRONROD AMIR GRINSTEIN LUC WATHIEU This paper examines the persuasiveness of assertive language (as in Nike’s slogan “Just do it”) as compared to nonassertive language (as in Microsoft’s slogan “Where do you want to go today?”). Previous research implies that assertive language should reduce consumer compliance. Two experiments show that assertiveness is more effective in communications involving hedonic products, as well as hedonically advertised utilitarian products. This prediction builds on sociolinguistic research addressing relationships between mood, communication expectations, and compliance to requests. A third experiment reaffirms the role of linguistic expectations by showing that an unknown product advertised using assertive language is more likely to be perceived as hedonic. C onsumers are often exposed to forceful messages and imperative slogans such as Nike’s “Just do it,” Sprite’s “Obey your thirst,” or U.S. Airways’ “Fly with US.” The frequent use of assertively phrased messages is puzzling, given the mounting research in consumer behavior (e.g., Dillard and Shen 2005; Fitzsimons and Lehman 2004; Lord 1994), communications (e.g., Kellerman and Shea 1996; Quick and Considine 2008; Quick and Stephenson 2007; Wilson and Kunkel 2000), and sociolinguistics (e.g., Levine and Boster 2001; Sanders and Fitch 2001), which suggests that these messages should lower consumer readiness to comply. To...
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...Case study of “Rigorous or Not?: A Case of Auditor Judgment for Deferred Tax Issues” Judgment Framework and Professional Judgment Discuss the importance of “judgment framing.” “Judgment framing” occurs early in the judgment process. The definition of framing follows: Frames are mental structures that we use, usually subconsciously, to simplify, organize, and guide our understanding of a situation. They shape our perspectives and determine the information that we will see as relevant or irrelevant, important or unimportant. Frames are a necessary aspect of judgment, but it is important to realize that our judgment frames provide only one particular perspective. The importance is that judgment framing question management’s perspective appropriately by viewing other frames and it is a foundation to professional skepticism. How do perceptual biases relate to judgment biases? Our eyes and related perceptual skills ordinarily are quite good at perceiving and helping us to accurately judge shape similarity. However, optical illusions can predictably and systematically fool our eyes. The judgment biases are similar to the perceptual ones, like there are times when our intuitive judgment falls prey to systematic traps and biases. What are the five steps in the judgment process? a. Clarify Issues & Objectives: To get at issues, ask “what is the problem to be solved?” To get at objectives ask “what is wanted or needed?” Ask “what” and “why” questions. b. Consider...
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...Theoretically, a PR campaign has been defined as a “concerted effort of an organization to build socially responsible relationships by achieving research-based goals through the application of communication strategies and the measurement of outcomes” (Kendall 1996, p.3). This paper examines the value of the modern-day IPR practice through a case study from an overwhelmingly successful IPR campaign ‘Best Job in the World’ sponsored by Tourism Queensland, Australia. Firstly, the research methodology will be introduced. Secondly, an introduction of the campaign will be sketched. In the third section of the paper, the analysis of the campaign is structured in three subitems with theoretical references. In the following section, a post-hoc evaluation tries to examine the case through a logical model. Lastly, by drawing from the previous analysis and evaluation, the paper exposes the findings in the values of modern-day IPR campaign. Research Methodology When considering what research methodology is appropriate and shall be adopted in the course of analyzing and evaluating this IPR campaign, it is important to understand the patterns and attributes of the study case. In view of the ‘Best job in the world’ IPR campaign is a typical model of modern-day IPR campaign, which is different from traditional PR campaign in terms of the PR strategies, execution and communication channels. Therefore, research methods correspondingly adopted contrastive analysis and evaluation in a literature review in...
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...and damned if they don’t. In the following paper I will examine the intricacies of this dilemma and analyse a puzzle that is not sufficiently addressed in Adler’s article. Primarily, I will attempt to explain the differences in state reactions to terrorist attacks. Why is it that some states respond with aggression whereas others appear to do little, or even seem to act in a conciliatory manner? The design of this paper will feature a close examination of two cases. In particular, I will investigate the Spanish Government’s response to the two thousand and four Madrid train bombings, and the French Government’s aggressive stance following the Paris attacks of two-thousand and fifteen. The European...
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...in terms of possible gains and the other in possible losses, people would choose the former - even when they achieve the same economic end result. According to prospect theory, losses have more emotional impact than an equivalent amount of gains. For example, in a traditional way of thinking, the amount of utility gained from receiving $50 should be equal to a situation in which you gained $100 and then lost $50. In both situations, the end result is a net gain of $50. However, despite the fact that you still end up with a $50 gain in either case, most people view a single gain of $50 more favorably than gaining $100 and then losing $50. Evidence for Irrational Behavior Kahneman and Tversky conducted a series of studies in which subjects answered questions that involved making judgments between two monetary decisions that involved prospective losses and gains. For example, the following questions were used in their study: 1. You have $1,000 and you must pick one of the following choices: Choice A: You have a 50% chance of gaining $1,000, and a 50% chance of gaining $0. Choice B: You have a 100%...
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