A Penny Saved vs. a Penny Earned: Examining the Influence of Consumers' Regulatory Focus on Frugality

Abstract

Research about consumers' decision to be frugal has been ignored in the field of consumer behavior and marketing. This paper is aimed to examine the influence of individuals' regulatory focus on frugality. Regulatory focus theory argues that individuals pursue goals in different ways - promotion orientation focus on hopes, gains and accomplishments, while prevention orientation will be more concerned with safety, responsibilities, and obligations. This paper proposed that, compared to promotional focus, individuals with prevention focus tend to be more frugal. In study 1, we experimentally induced the participants' regulatory focus and found the prevention orientation saved more and spend less than the promotion orientation after receiving an unexpected gain. In study 2, a field survey indicated that their chronic regulatory focus (promotion minus prevention) was negatively related to frugality, and the impulsiveness mediated the influencing process. Theoretical and practical implications will be discussed.