Sandie McHugh

Bounded rationality in credit consumers’ payment protection insurance decisions: the effect of relative cost and level of cover

A previous study found that credit consumers’ decisions to purchase payment protection insurance (PPI) were surprising insensitive to changes in cost and level of cover. This was investigated further in a randomized-groups experiment in which these two factors and the cost of credit alternatives without PPI were systematically manipulated. High street bank customers (N = 215) were presented with realistic PPI purchase scenarios and a questionnaire assessing their willingness to pay (WTP) for PPI and perceptions of its usefulness. It was found that: (1) WTP and PPI decisions were insensitive to relatively large changes in level of cover; (2) the perceived usefulness of Premium and Basic levels of cover were not significantly different, although their usefulness was a significant predictor of PPI decisions and (3) sensitivity of PPI decisions to changes in cost was dependent on the cost of credit without PPI. The first two findings are explained in terms of simplified mental representations and the evaluability of insurance cover. It is concluded that further research on the effects of the relative cost of insurance is needed.

Leisure in a post-work society

ABSTRACT Modern understandings of leisure have formed in terms of its relationship to work. The effects of industrialization in the western world are well known, regulating time for leisure and, through urbanization, producing social scientific definitions of leisure as either a civic good or a social problem requiring surveillance and regulation. Current predictions of a rapid quantitative decline in work are therefore of serious social, economic and psychological concern, raising questions about the meanings of leisure without work. This paper reviews the historical formation of work–leisure relationships. It then considers predictions of the impact of further technological change on the future of work and proposals for a universal basic income, and the implications of these for free time and leisure. Finally, it reviews the new focus on well-being in academic research and in government policy in the UK, and discusses the importance of leisure in terms of enjoyment of life, meaningful activity and social participation.

Credit repayment decisions: The role of long-term consequence information, economic and psychological factors

Purpose - Information concerning the long-term consequences of credit repayment decisions is often not available for flexible credit facilities such as credit cards. The purpose of this paper is to investigate the role of such information in repayment decisions. A dual mental accounting model of money management predicted that repayments would be influenced by both total cost and loan duration information. Experiment 2 also investigated the role of key economic and psychological factors, including some related to a risk defusing operator model of risk management. Design/methodology/approach - In two questionnaire-based experiments bank customers ( Findings - In both studies, analysis of covariance showed that information on the long-term consequences of repayment decisions lead to significantly higher levels of repayment. However, in Experiment 2, it was found using hierarchical multiple regression that disposable income, level of education, and the perception of, and worry about, repayment difficulties had larger significant effects on repayment levels. Research limitations/implications - The effects of long-term consequence information were interpreted in terms of mental accounting and future-oriented thinking. The effect of concern with future repayment difficulties suggests that borrowers choose lower repayments to control such risks. Practical implications - Providing total cost and loan duration information for a range of repayment levels could help borrowers make better repayment decisions. Originality/value - These novel findings contribute to our understanding of borrowers’ repayment behaviour.

Happiness Perceptions—A Comparison 1938 and 2014

This chapter outlines the findings from the Worktown (1938) and Bolton (2014) Happiness data. The frequency of happiness and the role of luck were similar. There were differences between the two databases in the time of the week and the place that residents were happiest. The ranking of the 10 Aspects of Happiness changed with Good Humour and Leisure moving into the top 3, whilst Knowledge and Religion went to lower positions in 2014. Qualitative analysis of happiness letters and comments revealed different categorical frequencies, with contentment and peace of mind being the highest in Worktown and free time activities in 2014 Bolton. The aspects of change and continuity in the perceptions of happiness are explored and possible explanations are discussed.

Conclusions and Afterthoughts

The impact on the nature of happiness of technological and social changes from 1938 to 2014 is explored. It outlines the advantages of the “consumer society”, but also the downsides, for some, of problem debt and discontent. The influence of the Internet age on community identification and the greater individualization and importance of leisure is discussed. Reported happiness levels are similar in both periods confirming the Easterlin Paradox. In 2014, happiness may be more materialistic with less inner peace and contentment. Family remains highly valued with chosen friendships replacing “giving to/helping others”. How much is enhanced happiness within the control of the individual or due to circumstances? As the link between health and happiness is recognized should the growth of GNP remain the primary government policy?

Editor’s Introduction and Summary of Chapters

The editorial introduction summarizes the other chapters in the book. It notes the increasing interest in human happiness in the 21st century with initiatives from the United Nations and other national and international organizations to enhance happiness in the world. European politicians have included the subject in their rhetoric and policies. In Britain the Office of National Statistics was directed to collect data and publish reports. The debate on the relationship between wealth and happiness is introduced. What is happiness? The question of definition is explored supporting a link between happiness and general well-being. How can happiness be measured? These questions are considered with reference to the Mass Observation study in 1938 and that by The University in the town of Bolton in 2014.

Happiness in Worktown in 1938 and Bolton 2014

The chapter gives a brief background of the foundation of Mass Observation; explaining how Bolton was studied as “Worktown” representing the industrial north of England. It provides details of the 1938 Happiness competition, the letters received, and the subsequent questionnaire. It outlines the background, methodology and processes of the replication of the 1938 Happiness competition by the University of Bolton’s Centre for Worktown Studies in collaboration with The Bolton News in 2014. It provides a summary of the main findings of both 1938 and 2014 surveys and considers the strengths and weaknesses of this method of data collection. An outline of the industrial and social conditions of Bolton in the 1930’s is contrasted with those of the twenty-first century.

Everyday leisure and happiness in worktown: a comparison of 1938 and 2014.

ABSTRACT This paper presents an analytical comparison of two surveys of subjective perceptions of leisure and happiness. The first was undertaken in 1938 by Mass Observation for its ethnographic study of everyday working-class life in Bolton, or “Worktown”. Leisure was found to be important to happiness insofar as it formed part of an everyday communal life, working through friendship, the appreciation of music and enjoyment of nature, reading and involvement in informal active citizenship. The second survey was undertaken in 2014 as a part-replication of the 1938 survey, using the method adopted by Mass Observation of linking a series of everyday situations and experiences to happiness. A total of 489 self-selecting respondents completed a questionnaire modelled on that used in 1938. The 2014 survey revealed a number of important continuities and differences from the survey of 1938 and the importance of leisure as an agent of happiness rose from eighth place in 1938 to third place in 2014.