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http://dx.doi.org/10.14695/KJSOS.2014.17.4.101

The effect of self-regulatory focus on loss aversion when gain and loss between possession and valence compete  

Lee, Byung-Kwan (Department of Industrial Psychology, Kwangwoon University)
Lee, Guk-Hee (Department of Industrial Psychology, Kwangwoon University)
Publication Information
Science of Emotion and Sensibility / v.17, no.4, 2014 , pp. 101-108 More about this Journal
Abstract
The study of loss aversion has progressed. Specifically, Brenner et al. (2007) distinguished between possession loss aversion (PLA) and valence loss aversion (VLA) and explained PLA is the loss of cash or spot goods (money, apartment) and that VLA is the loss of tentative value (opportunity of oversea study, coupon). Also, they explored how the tendency of loss aversion was different between when possession loss was salience and when valence loss was outstanding. But, in our everyday life, it is more common that people face some economic situation where the gain and loss between possession and valence are competing. And, in this situation, they usually choose a better option based on their ordinary mind-set or self-focus rather than on which option has more benefit. Therefore, present research is that whether the tendency of loss aversion is different based on one's ordinary self-focus. Concretely, after priming promotion focus vs. prevention focus, participants should decide whether present occupation changes or not when gain and loss between possession and valence compete (income increase but oversea study chance decrease or income decrease but oversea study chance increase). As a result, there are more rate of changing job in promotion focusing condition than prevention focusing condition based on positive change irrespective of possession or valence. This result can have implication for marketing, consumer and advertisement psychology.
Keywords
Loss aversion; Possession; Valence; Decision Making; Self-regulatory focus;
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