Didem Kurt

The Influence of Friends on Consumer Spending: The Role of Agency– Communion Orientation and Self-Monitoring

Four studies investigate the interactive influence of the presence of an accompanying friend and a consumers agency–communion orientation on the consumers spending behaviors. In general, the authors find that shopping with a friend can be expensive for agency-oriented consumers (e.g., males) but not for communion-oriented consumers (e.g., females). That is, consumers who are agency oriented spend significantly more when they shop with a friend (vs. when they shop alone), whereas this effect is attenuated for consumers who are communion oriented. The results also show that this interactive effect is moderated by individual differences in self-monitoring such that friends are especially influential for consumers who are high in self-monitoring, but the effects occur in opposite directions for agency- and communion-oriented consumers (i.e., agentic consumers spend more with a friend, while communal consumers spend less when accompanied by a friend). Finally, the authors test the underlying process and document that the interaction of agency–communion orientation, the presence of a friend, and self-monitoring is reversed when the focal context is changed from “spending for the self” to “donating to a charity.” They conclude with a discussion of implications for research and practice.

Mispredicting Others' Valuations: Self-Other Difference in the Context of Endowment

The authors argue that people systematically fail to predict how much others in the same role (i.e., owner or buyer) value an object due to self-other differences in valuation arising from intra-role empathy gaps. Across five studies in an endowment context, owners consistently underestimate the average selling price demanded by other owners, whereas buyers overestimate the average purchase price offered by other buyers by over 20%. Participants, however, make more accurate predictions of the valuation of others in the same role when either (a) an external influence (i.e., similarity priming) or (b) their high cognitive and emotional tendency to connect with others leads to a reduction in empathy gaps. Implications for theory and practice are discussed.