Two Page Summey of This ArticalList · 1. The Value of Money. Full Text Available Academic Journal...

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Two Page Summey of This ArticalList · 1.  The Value of Money.  Full Text Available  Academic Journal By: Spiller, Stephen A. Advances in Consumer Research. 2011, Vol. 39, p267-270. 4p.  Subjects: Consumer research; Labor incentives; Money; Consumer behavior Add to folder Cited References: (14)  PDF Full Text (133KB)  The Value of Money Session Chair: Stephen A. Spiller, UCLA, USA Paper  #1: “I’ll Have One of Each”: How Separating Rewards into (Meaningless) Categories Increases Motivation Scott Wiltermuth, University of Southern California, USA Francesca Gino, Harvard Business School, USA Paper  #2: Irrelevant Outside Options Influence the Value of Money Stephen Spiller, UCLA, USA Dan Ariely, Duke University, USA Paper  #3: Money Makes Money More Important Sanford DeVoe, University of Toronto, Canada Jeffrey Pfeffer, Stanford University, USA Byron Lee, University of Toronto, Canada Paper  #4: Nostalgia Weakens the Desire for Money Jannine Lasaleta, University of Minnesota, USA Kathleen Vohs, University of Minnesota, USA Constantine Sedikides, University of Southampton, UK SESSION OVERVIEW Money is a remarkable technology fulfilling three primary functions: a medium of exchange, a unit of account, and a store of value. It is an integral part of most consumer interactions and pervades every aspect of our consumer lives. Other media of exchange, such as gift cards and reward points, fulfill similar functions and are nearly as ubiquitous. The value we place on money determines the extent to which we strive to accumulate it and our reluctance to part with it when making purchases. Normatively, money’s value is determined by the utility gained by using the marginal dollar. In this session, we consider a variety of important non-normative influences on the perceived value of money and media of exchange. In doing so, we help to answer how money is psychologically imbued with value. First, Wiltermuth and Gino show that organizing incentives such as time and money into categories increases motivation to work for those incentives. Such categories may be arbitrary, and the effect is robust to gain and loss frames; merely separating them into categories increases their value. Second, Spiller and Ariely examine how the set of possible purchases influences the value of a resource. Normatively, only the best use of a resource should affect its value. Instead, other possible but irrelevant uses affect the value placed on a resource as well. Third, DeVoe, Pfeffer, and Lee find that the accumulation of money increases the importance individuals place on money. By earning money through labor, the symbolic value of money is associated with one’s self-esteem and sense of competence, thereby increasing its importance. Finally, Vohs, Lasaleta, and Sedikides show that feelings of nostalgia weaken the desire for money. Nostalgia provides a sense of social support, weakening the reliance on money to provide such support in its place, and thus decreasing its value. Each paper advances our understanding of a truly fundamental question in consumer behavior: how do consumers value money and other media of exchange? Overall, the session provides a coherent set of distinct drivers of money’s perceived value with a wide variety of implications for marketing and consumer behavior. These papers will likely appeal to researchers interested in a variety of fields including gift cards, incentives, labor, materialism, the social and cognitive roles of money, and retro brand appeals. “I’ll Have One of Each”: How Separating Rewards into (Meaningless) Categories Increases Motivation ExTENDED ABSTRACT Researchers have long sought to understand how to foster motivation more effectively.  Much of this research has highlighted rational mechanisms that increase or make salient the benefits the worker obtains by applying effort.  For instance, Adam Grant’s (2007, 2008) work has shown that highlighting the pro-social impact of people’s work increases their motivation.  Hackman and Oldham (1976) have similarly shown that task identity, task significance, and positive feedback all influence motivation.  In the present research, we propose that even factors that should not rationally affect motivation may do so.  Specifically, we hypothesize that categorizing rewards can increase motivation, even when those categories are arbitrary. We put forth this hypothesis because we believe people clump rewards into categories and are more sensitive to increases in the number of categories of rewards than they are to increasing the magnitude of rewards within a category.  Thus, our work draws inspiration from Thaler’s (1999) work on mental accounting. We tested our hypothesis across three experiments.  In Study 1, 157 undergraduate students (53% female; Mage = 21.0) at a large, private university on the West Coast first completed an anagram unscrambling task (Cameron and Miller, 2010).  Unbeknownst to the participants, the third and ninth anagrams were nearly impossible to solve.  In one condition, successfully unscrambling anagrams ostensibly earned participants $2 per anagram solved. In another condition, successfully unscrambling anagrams allowed them to skip four minutes of a boring task. In a third condition, successfully unscrambling anagrams earned participants $1 and allowed them to skip two minutes of the boring task.  Thus, these participants earned half the money and saved half the time that did participants in each of the other two conditions. The dependent variable was the amount of time participants persisted in the task.  As predicted, participants in the two categories of benefit condition persisted longer (M = 9.1 minutes, SD = 3.1) than did those in the monetary benefit (M = 7.0, SD = 2.6) or time benefit conditions (M = 6.9, SD = 3.7), ps

Malvika · Accepted Answer

Overview
The undertaken study is part of the North American Conference of the Association for Consumer Research held in October 2011. The research presented at the conference were published and the topic of study is entitled Value for money that included four papers from different authors. 
This session chaired by Stephen from UCLA discusses how important is the value of money in relation with consumers’ satisfaction. The discussion takes in consideration how the customers are attracted to the different media of exchange like gift cards, reward points, etc. the value consumers place in money is a deciding factor while making purchase. 
Paper 1 - “I’ll Have One of Each”: How Separating Rewards into (Meaningless) Categories Increases Motivation
Wiltermuth and Gino (2013) discuss how organizing incentives like time and money into categories gives the people motivation to work for them. They mentioned about Adam Grant’s (2007, 2008) showed that if the social impact of people’s work is highlighted then their motivation increases. They proposed a hypothesis that the people tend to focus more on the number of rewards rather than the magnitude of each reward. Wiltermuth and Gino (2013) conducted experiments to prove their hypothesis and divided the rewards of a certain task for students.

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List · 1. The Value of Money. Full Text Available Academic Journal By: Spiller, Stephen A. Advances in Consumer Research. 2011, Vol. 39, p XXXXXXXXXX4p. Subjects: Consumer research; Labor incentives;...

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