Research On Consumer Behavior Decision - Making Based On Elasticity Of Mental Account

The study explored how consumers flexibly classify expenses, or construct accounts, to justify spending and the effect of malleability in the mental accounting process on consumer decision-making behavior. A hypothesized model was established and on the base of literature review and interview. In the end, the effect of the effect of malleability in the mental accounting process on consumer decision-making behavior was explored. These studies demonstrate how malleability in the mental accounting process allows people to manipulate budgetary mental accounts and justify desirable expenses. Additional analyses revealed that the manipulation involves the flexible classification of the expense (Experiment1), and the flexible construction of accounts (Experiment2) for expenses whose classification is ambiguous. An expense that can be assigned to more than one account (i.e., an ambiguous expense) is more likely to be incurred than an unambiguous expense that is constrained either by existing budgets or by previously constructed accounts. We explore the justification processes that underlie these results and their implications for mental accounts as self-control devices. Constructing budgetary accounts affected spending. Mental account has three characters, such as non-fungibility, budget and flexibility. These characters of mental account had significant differences on the demographic variables, such as gender, education, types of work, economic. According to the conclusions of this study, it provided some feasible suggestions to merchants and consumers.