Applying Fairness Theories to Financial Decision Making

This paper explores the role of fairness in consumer financial decisions. Specifically, we investigate how consumers’ perceptions of fairness for financial products can influence their willingness to purchase those products. In doing so, we also consider why perceptions of fairness for financial decisions are different from fairness concerns for other types of consumer products. We also explore the concept of consumer revenge for unfair actions by financial institutions, and measure whether consumers are willing to sacrifice their own outcomes in exchange for the ability to punish an unfair company. In a series of studies we find that perceived fairness mediates purchase intentions, and that consumers will indeed incur costs to punish unfair company offers as measured through a modified Ultimatum Game allocation task. We end by outlining some rich areas for additional research specific to financial contexts.