Gender Differences in Financial Advice

Gender Differences in Income

There is a growing interest to increase diversity among consumers who are seeking financial advice, but the influences of race and gender on financial advice seeking have not been widely explored in the literature. We examine the role of race and gender on financial advice seeking among U.S. households by employing a decomposition technique. The findings highlight that asking for financial advice is not determined by race or gender in and of itself, but by the racial and gender differences in the predictors associated with financial advice seeking. Black and female consumers were found to be more likely to ask for financial advice when making savings and investment decisions. The relationships between financial advice seeking and income level, employment status, education level, and subjective knowledge differed significantly for Black and White consumers. Employment status, race, and homeownership differed significantly for women and men seeking financial advice. The results show that the predictors which explain financial advice seeking may not apply in the same way to all consumers. Practitioners can use this research to refine how they market and gain a better understanding of how race and gender are associated with certain important variables that are associated with seeking financial advice.

The issue of consumer heterogeneity in discrete choice analysis has been attracting much attention recently. Research has suggested that heterogeneity can result in biased parameter estimates which, in turn, can lead to incorrect conclusions. Among the many methods proposed in the literature to handle heterogeneity, fixed effects models seem to be the most attractive from a substantive point of view. However, in order to provide consistent estimates, these models typically require long purchase histories. This difficult constraint has prevented their widespread use. In this paper, we propose a new model which offers the benefits of fixed effects models without requiring long purchase histories. Our approach differs from the classic formulation in two ways. First, we calibrate the common and fixed-effects sequentially rather than simultaneously. This two-stage estimation permits us to obtain unbiased estimates of the common parameters even when the sample has households with very few observations. Second, we incorporate the fixed effects in a multiplicative rather than in an additive form. Our assumptions regarding the error term result in a probit model with heteroskedastic and temporally correlated random utilities. We develop a method of moments based estimator to calibrate parameters of models with this type of error structure. This procedure exploits the property that the method of moments yields estimates which are asymptotically as efficient as the maximum likelihood estimates given an appropriate starting point and a matrix of instruments. This is a very general procedure in that its mechanics are not tied to the proposed model. It can be readily applied to other problems where probit models are used to analyze data with serial correlation. This is a methodological contribution of the paper. The model and estimation procedure are illustrated on the A. C. Nielsen scanner data base for the liquid detergent category. Our results indicate that the proposed model can provide a better fit than random effects and loyalty based models and better predictive performance than random effects models. From a substantive perspective, our analysis provides the following findings. (a) the distribution of price sensitivities has a low variance—thus, most households have very similar price sensitivity in this category; (b) the promotion response distribution has a high variance—suggesting that there are some households that are highly responsive to promotions while there are quite a few households that are less influenced by promotions; (c) preferences and price sensitivity have a negative covariance—which is an indication that a reduction in preference for a brand is associated with an increase in price sensitivity and vice versa; (d) preferences and promotion response have a positive covariance—thus, as the preference for a brand increases, response to promotions by the brand also increases; and (e) price sensitivity and promotion response have a negative covariance—implying that, as households become more price sensitive, purchases may be driven more by price than by promotions; in other words, rather than responding to promotions such as displays and features as signals of a reduced price, price sensitive households actively evaluate prices in arriving at a choice. The proposed approach can be used by theoretical as well as applied researchers of brand choice behavior. Specifically, estimates of fixed-effects provided by the model can be used to cluster households into groups with similar parameters. Profiling the resulting groups in terms of demographics would provide interesting insights—from a theoretical perspective—regarding the household characteristics that are associated with different types of response behavior. It would also help managers to better target their brands. Using the proposed approach for cross-category analyses of fixed-effects would be an interesting area of future research. For instance, given a sample of households and their purchase histories in multiple categories, the proposed model can be used to explore the relationship between household behavior and category characteristics. In particular, issues such as the following can be investigated by comparing household-level estimates across categories: (a) are households that are highly price sensitive in one category also price sensitive in other categories? (b) what household characteristics are associated with high (low) price sensitivity or high (low) promotion response across categories? and (c) in what types of categories are households likely to exhibit high (low) price sensitivity or high (low) promotion response?

Financial advice and gender: Wealthy individual investors in the UK

Equality in Recipients of Nephrology Awards from International Societies

This study examined the noneconomic factors affecting consumers’ participation in purchase decisions, focusing in particular on the social aspect of the buyer‐seller interaction. In addition, we attempted to clarify the association between consumer participation and price sensitivity. Of the four social dimensions of consumer participation—preparation, relationship building, information exchange, and intervention—our results indicated that the first three dimensions are negatively associated with price sensitivity but the intervention dimension is not. Additionally, we also found that, given the same level of preparation, industries typically characterized by higher participation, such as hair salons, are associated with lower consumer price sensitivity as compared to those typically characterized by lower participation, such as fast food restaurants. Similarly, given the same level of relationship building, information exchange, and intervention, industries typically characterized by higher participation have lower consumer price sensitivity than those typically characterized by lower participation.

Gender inequity in academic medicine is a pervasive challenge. Recommendations have been implemented to reduce inequities for female faculty. However, there are no well-established guidelines for the recruitment and retention of female residents. To address challenges faced by female physicians and support the recruitment and retention of female residents, female emergency medicine residents and attending physicians at the Hospital of the University of Pennsylvania formed a professional development group (PDG), #Shemergency, in July 2017. From July 2017 to July 2018, this PDG developed events and initiatives for female residents that addressed methods to improve awareness of and develop skills relevant to well-described gender disparities in mentorship, speakership and conference representation, compensation, evaluations, wellness and service, and award recognition. Over its first year (July 2017-July 2018), the PDG created a professional community and enhanced mentorship through a number of events and initiatives. The PDG secured funding for 5 residents to attend a national conference and nominated 5 residents and 2 attending physicians for professional organization awards (4 nominees won). After the first year, the PDG expanded the number of joint activities with both male and female colleagues and organized a citywide event for female residents and faculty representing 5 different residency programs. Future work will focus on sustainability (e.g., holding fundraising events), generalizability (e.g., expanding the gender-disparity areas addressed as well as spreading the model to other programs), developing additional events and initiatives (e.g., expanding the number of joint activities with male colleagues), and outcome assessments (e.g., distributing pre- and postevent surveys).

A dynamic model of the advertising-price sensitivity relationship for heterogeneous consumers

This study sets out to solve a couple of research problems. First, to explore the correlation between individuals’ financial anxiety, financial advice, and EPS (electronic payment system use) initially. Secondly, to explore the perceived differences among males and females, and to answer whether the gender inequality still prevalent amongst generation Z in India. This study applies basic statistics, spearman correlation and ManWhitney U test on the dataset collected through 205 questionnaires from the northern states in India. The outcomes reveal few significant correlations and also give a positive indication that the gender differences are reducing, especially among the youth belonging to generation Z. Keeping in mind policymaker’s viewpoint, it is vital to fully understand financial anxiety, financial advice seeking behaviour and EPS use, for designing better social policies, to empower the upcoming generation with adequate skills and abilities to tackle financial anxiety, avail proper financial advisory services and use EPS appropriately. This paper offers insights for the stronger investigationsin future. The originality of the paper lies in the chosen variables, which are not explored thoroughly yet. The present research is an initial investigation concerned with young generations’ financial anxiety, financial advice and EPS usage pattern. It contributes to the existing literature and intends to attract the attention of the researchers towards the investigated relationships. However, limitations detected in self-reporting and generalisation of the outcomes in other contexts, but authors believe that they can be overcome with further and extended research.

Uncovering gender bias in attitudes towards financial advisors

Does price sensitivity and price level influence store price image and repurchase intention in retail markets?

ABSTRACTTo date little attention has been paid to how social cognitive bias can influence how financial advisors interpret and respond to the needs of millionaire investors, and if this varies depending on the gender of the investor. This research investigates whether experienced professional financial advisors who work with millionaire investors make different attributions for the control and knowledge that investors have of their investments, and if they make different investment portfolio recommendations to equivalent male and female investors. Using methodology novel to finance, this vignette-based study that controls for gender finds evidence that professional financial advisors judge millionaire female investors to have less control over their investment portfolios relative to men. Empirical results also show that female advisors judge women to be less knowledgeable about investments than men. Despite such perceptual differences, advisors recommend equally risky portfolios to male and female investors. These results have implications for wealth management institutions and the monitoring of financial advisors for millionaire individuals.

Trade-in programs have become a vital mechanism for promoting sustainable consumption and reducing negative impacts on the environment, gaining substantial support from branders, e-platforms, and consumers in recent years. Concurrently, the emergence of professional recyclers has provided firms with viable alternatives for the outsourcing of recycling processes. To investigate the optimal leadership and recycling model with respect to trade-in operations, this study examines the strategy selection in a platform-based supply chain under a resale model. A two-period game-theoretic framework is developed, encompassing four models: self-recycling and outsourcing models under the leadership of the brander or platform. The main findings are as follows: (1) In markets characterized by a low consumer price sensitivity, both branders and platforms tend to choose the self-recycling model to capture the closed-loop value. In contrast, in highly price-sensitive markets, both parties exhibit a preference for “free-riding” strategies. (2) Once the recycling leader is determined, adopting a self-recycling model can lead to a relative win–win outcome in high price sensitivity contexts. (3) With a short product iteration cycle, both the brander and platform should strategically lower their prices in the first period, sacrificing short-term profits to enhance trade-in incentives and maximize long-term gains. (4) When the brander leads the recycling process, they should consider reusing the resources derived from old products; however, in platform-led models, the brander can only consider reusing the recycled resources in a low price sensitivity market. This study provides strategic insights for the sustainable development of the supply chain through the analysis of a game between a brander and an e-commerce platform, enriching the literature on CLSCs through integrating trade-in leadership selection and the choice to outsource, offering theoretical support for dynamic pricing strategies over multi-period product lifecycles.

We examine how gender differences in investment risk tolerance, knowledge, confidence and portfolio cash allocations relate to the gender mix of investors and financial advisors among a sample of wealthy individuals in the UK. Our results demonstrate that gender effects are more nuanced than previously assumed. First, while even wealthy women consider themselves more conservative and allocate a higher proportion of their investable assets to cash than men, previous findings of lower investment knowledge and confidence do not extend to our sample. Second, having an advisor matters. Advised investors perceive themselves to have a higher risk tolerance and invest 10.6%-points more than self-directed investors. Finally, the investor-advisor gender combination matters, but only for female investors. Women with male advisors are more risk averse, feel less knowledgeable and less confident about their investment decisions. They also invest 11%-points less than women with female advisors. Indeed, female investors advised by women report the highest risk tolerance and make the lowest portfolio allocation to risk-free assets across the full sample, including men.

How to Promote Career Advancement and Gender Equity for Women in Gastroenterology: A Multifaceted Approach