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PAYMENT BEHAVIOR & BEHAVIORAL BIAS - Coggle Diagram
PAYMENT BEHAVIOR & BEHAVIORAL BIAS
Heuristics & Behavioral Bias
Heuristics
Mental Shortcut
Produced by the Brain
In Uncertainty Conditions
Judgements
Decisions
Principal Types
Availability
Anchoring
Representativness
Behavioral Bias
Sistematic Error
Deviation
Judgement
Norm
Rationality
Identified in Psychological Field
Applied
Behavioral Finance
Behavioral Economics
Framing Effect
Leads
Different Conclusions
From Same Information
Depending on
How the Information
Is Presented
Exploited in Marketing & Advertising
To Guide our Choices
Two Types of Framing Effect
Goal Framing
Tend to Emphasize
Negative or Positive Results
Risky Choice Framing
Tend to Emphasize
Losses or Gains
Attribute Framing
In Terms of
Good or Bad Characteristics
Payment Behavior
Payment Methods
Other Payment Instruments
Bank Check
Credit Card
Cash Advance
Payment of Interest
Wire Transfer
Debit Card
Needs Presence of Funds
Cash
Guarantees
Anonymity of The Operation
Immediate Exchanges
e-payment
m-payment
Behavior Indexes Paymnets
Slow Payments
to Solve the Problem
Comunication
Clear
Confidence
Quick
Empathic
Batch Payments
Skipped Invoices
Case Study
in 2007 Zoomerang
1342 Participants
Divided into 4 Groups of 335
2 Groups Investment Frame
using word like
"Investment and Earnings"
2 Groups Consumption Frame
using word like
"Payment and Expense"
Results
Investment Frame Groups
79% Rate of 4%
Consumption Frame Groups
72% Life Annuity
77% $ 650 for 20 years
76% $ 500 for 35 years
to Choose
Different Types of Returns
on a $ 100,000 Investment
Implication
an Implication of framing
for Investment Choices
Focusing on the short-term
Framing Effect Leads
to Focus
Only on the Element
that we Consider Relevant
a further Implication concerns
the attitude towards risk
Emphasis on Potential Gain
Risk Aversion
Emphasis on Potential Losses
Risk Propensity & Loss Aversion
Theoretical Background
Tversky, A., Kahneman, K. (1974)
Alemanni, B. (2020)
Brown, J.R., Kling, J.R., Mullainathan, S., Wrobel, M.V. (2008)
Banca d'Italia, Eurosistema
CONSOB, Quaderni di Finanza N. 66 (2010)
Kahneman e Riepe,
(1998)
Final Conclusion
People must be Induced
Product Through
Appropriate Way of Presenting
Risk/Return profile
Verbal Communication
to Guide the Investors Behavior
Information must be Provided by
Financial Advisors
Invesor's Status
Neutral Frame
Issuers of Financial Products