Dual Process Difference in Families Regarding Home Buying Decision
Keywords:
Dual Process, Dual Motives, Demography, Family Life Cycle
Abstract
The system of thought between rational systems and experience systems is inherent in each individual and produces different decisions. Thinking using logic tends to be used by almost every individual, but cognitive limitations make the individual simplify complex thinking to make practical decisions. This study aims to examine more in dual process on decision home buyers according to dual motives based on demographics and life cycle. Data collection was done by distributing questionnaires to selective home buyers of 235 buyers. Survey instruments include demographic and family life cycle variables. The dual process measurements using Rational-Experiential Inventory (REI-40) are designed to test individual preferences for two decision making, such as cognitive styles (rationality) and intuition (experience) using Likert scales. The results show that dual process cannot be distinguished based on dual motives. However, demographic variables such as gender, age, education, and family life cycle showed the difference in the dual process.
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References
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Daly, J., Gronow, S., Jenkins, D. & Plimmer, F. (2003). Consumer behaviour in the valuation of residential property: A comparative study in the UK, Ireland and Australia. Property Management, 21(5), 295-314.
De Neys, W. (2006). Automatic-heuristic and executive-analytic processing during reason: chronometric and dual-task consideration. Q.J. Exp. Psychol, 1070-1100. doi:10.1080/02724980543000123
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Epstein, S. (1994). Integration of the cognitive and psychodynamic unconscious. American Psychologist, 49, 709-724.
Epstein, S. (1998). Constructive thinking: The key to emotional intelligence. Westport CT: Praeger Publishers.
Epstein, S. (2003). Cognitive-experiential self-theory of personality. In T. Hoboken, & M. Lerner, Handbook of Psychology: Personality and Social Psychology (pp. 159-184). NJ: John Wiley & Son Inc.
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Evans, J. S. & Stanovich, K. E. (2013). Dual-Process Theories of Higher Cognition: Advancing the Debate. Perspectives on Psychological Science, 8(3), 223–241. doi:10.1177/1745691612460685
Gibler, K. M. & Nelson, S. L. (2003). Consumer behavior applications to real estate education. Journal of Real Estate Practice and Education, 6(1), 63-89.
Gigerenzer, G. & Gaissmaier, W. (2011). Heuristic decision making. Annual Review Psychology, 62, 451–482. doi:10.1146/annurev-psych-120709-145346
Gigerenzer, G. & Goldstein, D. G. (1996). Rationing the fast and frugal way: models of bounded rationality. Psychol, 103, 650-669. doi:10.1037/0033- 295X.103.4.650
Gilinsky, A. S. & Judd, B. B. (1994). Working memory and bias in reasoning across the life-span. Psychology and Aging, 9, 356-371.
Green, S. L. (May 2002). Rational choice theory: An overview. Baylor University Faculty Development Seminar on Rational Choice Theory.
Gunnell, J. J. & Ceci, S. J. (2010). When emotionality trumps reason: a study of individual processing style and juror bias. Behavioral Science and the Law, 28(6), 850-877.
Han, H. & Kim, Y. (2010). An investigation of green hotel customer’s decision formation: Developing an extended model of the theory of planned behavior. International Journal of Hospitality Management, 29(4), 659-668.
Hardin, W. G. (1997). Heuristics use, credit constraints and real estate lending. Journal of Property Valuation and Investment, 15(1), 245-255.
Jensen, J., Calder, L., Walker, M., Travers, A., Tavares, W., Bienkowski, A. & Croskerry, P. (2013). Experiential and rational clinical decision making: A survey to determine decision-making styles of paramedics. Canadian Journal of Emergency Medicine, 15(S1), 41.
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Kuester, S. (2012). In MKT 301: Strategic Marketing & Marketing in Specific Industry Contexts (p. 110). University of Mannheim.
Kunshan, W. & Yiman, T. (2011). Applying the extended theory of planned behavior to predict the intention of visiting a green hotel. African Journal of Business Management, 5(17), 7579-7587.
McAllister, P. & Mansfield, J. R. (1998). Investment Property Portfolio Management and Financial Derivatives: Paper 1. Property Management, 16(3), 166-169.
Monico, M. (2013). Australian attitudes and behaviours towards buying their first home. Australian: RAMS First Home Buyers’ Pulse Check Survey 2013. RAMS Financial Group Pty. Ltd.
Newstead, S. E., Handley, S. J., Harley, C., Wright, H. & Farelly, D. (2004). Individual differences in deductive reasoning. Quarterly Journal of Experimental Psychology, 57A, 33-60.
Nickerson, R. S. (1968). A note on long-term recognition memory for pictorial material. Psychonomic Science, 11(2), 58.
Njo, A., Made-Narsa, I. & Irwanto, A. (2017). Dual process of consumption and investment motives in residential market Indonesia. Proceeding of 22nd International Conference on Advancement of Construction Management and Real Estate, CRIOCM 2017 (pp. 550-556). Melbourne: Springer.
Pacini, R. & Epstein, S. (1999). The relation of rational and experiential information processing styles to personality, basic beliefs, and the ratioâ€bias phenomenon. Journal of Personality and Social Psychology, 76, 972–987. doi:10.1037/0022â€3514.76.6.972
Peters, E., Diefenbach, M. A., Hess, T. M. & Västfjäll, D. (2008). Age Differences in Dual Information-Processing Modes: Implications for Cancer Decision Making. Cancer, 113(12 Suppl), 3556–3567. doi:10.1002/cncr.23944.
Reber, A. S. (1993). Implicit Learning and Tacit Knowledge. Oxford, UK: Oxford Univ. Press.
Scanlon, K. & Whitehead, C. M. (2010). The economic rationality of landlords. Housing Economics Working Group (pp. 1-28). Copenhagen, Denmark: LSE Research Online. Retrieved from http://eprints.lse.ac.uk/29951/.
Shah, A. K. & Oppenheimer, D. M. (2008). Heuristics made easy: An effort-reduction framework. Psychological Bulletin, 134(2), 207-222. doi:1.1037/0033-2909.134.2.207
Shiller, R. J. (2007). Understanding recent trends in house prices and home ownership. NBER (National Bureau of Economic Research, Inc), 1-46.
Shiloh, S. & Shenhav-Sheffer, M. (2004). Structure of difficulties in mate-selection decisions and its relationship to rational and intuitive cognitive styles. Personality and Individual Differences, 37, 259-273.
Shiloh, S., Salton, E. & Sharabi, D. (2002). Individual differences in rational and intuitive thinking styles as predictors of heuristic responses and framing effects. Pers. Individ. Dif., 32, 415-429. doi:10.1016/S0191-8869(01) 00034-4
Simon, H. A. (1973). The structure of ill-structured problems. Artificial Intelligence, 4(3), 181-201.
Simon, H. A. (1978). Information processing theory of human problem-solving. In W. (. Estes, Handbook of Learning and Cognitive Processes (pp. 271-295). Erlbaum, Hillsdale, NJ.
Sladek, R. M., Bond, M. J., Huynh, L. T., Chew, D. P. & Phillips, P. A. (2008). Thinking styles and doctors’ knowledge and behaviours relating to acute coronary syndromes guidelines. Implementation Science, 3, 23.
Smith, A. (1992). The Redefining: Real Estate’s Role in Fund Portfolios. Pension World, 28(11), 12-14.
Smith, E. R. & DeCoster, J. (2000). Dual-process models in social and cognitive psychology: Conceptual integration and links to underlying memory systems. Personality and Social Psychology Review, 4, 108–131.
Spanier, G. B., Sauer, W. & Larzelere, R. (1979). An Empirical Evaluation of the Family Life Cycle. Journal of Marriage and Family, 41(1), 27-38.
Stanovich, K. E. (1999). Who is Rational? Studies of Individual Differences in Reasoning. Mahway, NJ: Lawrence Erlbaum Associates.
Stanovich, K. E. & West, R. F. (1998). Individual differences in framing and conjunction effect. Think. Reason, 4, 289-317. doi:10.1080/135467898394094
Tversky, A. & Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology, 5(2), 207–232.
Tversky, A. & Kahneman, D. (1974). Judgment under uncertainty: heuristics and biases. Science, 185(4157), 1124-1131.
Anderson, B. A. (2015). World Population Dynamics: An Introduction to Demography. New Jersey: Person Education, Inc.
Bargh, J. A. (2002). Losing consciousness: Automatic influences on consumer judgment, behavior and motivation. Journal of Consumer Research, 29, 280-285.
Calder, L. A., Forster, A. J., Stiell, I. G., Carr, L. K., Brehaut, J. C., Perry, J. J. & Croskerry, P. (2012). Experiential and rational decision making: A survey to determine how emergency physicians make clinical decisions. Emergency Medicine Journal, 29(10), 811-816.
Colom, R., Rebollo, I., Palacios, A., Juan-Espinosa, M. & Kyllonen, P. C. (2004). Working memory is (almost) perfectly predicted. Intelligence, 32, 277-296.
Daly, J., Gronow, S., Jenkins, D. & Plimmer, F. (2003). Consumer behaviour in the valuation of residential property: A comparative study in the UK, Ireland and Australia. Property Management, 21(5), 295-314.
De Neys, W. (2006). Automatic-heuristic and executive-analytic processing during reason: chronometric and dual-task consideration. Q.J. Exp. Psychol, 1070-1100. doi:10.1080/02724980543000123
DeLisle, J. R. (1985). Behavioral theory and residential appraisal. The Appraisal Journal, Oktober, 493-506.
Epstein, S. (1994). Integration of the cognitive and psychodynamic unconscious. American Psychologist, 49, 709-724.
Epstein, S. (1998). Constructive thinking: The key to emotional intelligence. Westport CT: Praeger Publishers.
Epstein, S. (2003). Cognitive-experiential self-theory of personality. In T. Hoboken, & M. Lerner, Handbook of Psychology: Personality and Social Psychology (pp. 159-184). NJ: John Wiley & Son Inc.
Epstein, S., Pacini, R., Denes-Raj, V. & Heier, H. (1996). Individual differences in intuitive-experiential and analytical-rational thinking styles. Journal of Personality and Social Psychology, 71, 390-405. doi:10.1037/0022â€3514.71.2.390
Evans, J. S. (1989). Bias in Human Reasoning: Causes and Consequences. Brighton: Erlbaum.
Evans, J. S. & Curtis-Holmes, J. (2005). Rapid responding increases belief bias: Evidence for the dual-process theory of reasoning. Thinking & Reasoning, 382-389.
Evans, J. S. & Stanovich, K. E. (2013). Dual-Process Theories of Higher Cognition: Advancing the Debate. Perspectives on Psychological Science, 8(3), 223–241. doi:10.1177/1745691612460685
Gibler, K. M. & Nelson, S. L. (2003). Consumer behavior applications to real estate education. Journal of Real Estate Practice and Education, 6(1), 63-89.
Gigerenzer, G. & Gaissmaier, W. (2011). Heuristic decision making. Annual Review Psychology, 62, 451–482. doi:10.1146/annurev-psych-120709-145346
Gigerenzer, G. & Goldstein, D. G. (1996). Rationing the fast and frugal way: models of bounded rationality. Psychol, 103, 650-669. doi:10.1037/0033- 295X.103.4.650
Gilinsky, A. S. & Judd, B. B. (1994). Working memory and bias in reasoning across the life-span. Psychology and Aging, 9, 356-371.
Green, S. L. (May 2002). Rational choice theory: An overview. Baylor University Faculty Development Seminar on Rational Choice Theory.
Gunnell, J. J. & Ceci, S. J. (2010). When emotionality trumps reason: a study of individual processing style and juror bias. Behavioral Science and the Law, 28(6), 850-877.
Han, H. & Kim, Y. (2010). An investigation of green hotel customer’s decision formation: Developing an extended model of the theory of planned behavior. International Journal of Hospitality Management, 29(4), 659-668.
Hardin, W. G. (1997). Heuristics use, credit constraints and real estate lending. Journal of Property Valuation and Investment, 15(1), 245-255.
Jensen, J., Calder, L., Walker, M., Travers, A., Tavares, W., Bienkowski, A. & Croskerry, P. (2013). Experiential and rational clinical decision making: A survey to determine decision-making styles of paramedics. Canadian Journal of Emergency Medicine, 15(S1), 41.
Kahneman, D. (2003). Maps of bounded rationality: psychology for behavioral economics. American Economic Review, 93(5), 1449–1475.
Kahneman, D. & Frederick, S. (2002). Representativeness revisited: Attribute substitution in intuitive judgement. In T.Gilovich, D. Griffin, & D. K. (Eds.), Heuristics and biases: The psychology of intuitive judgement (pp. 49-81). Cambridge: Cambridge University Press.
Kahneman, D., Slovic, P. & Tversky, A. (1982). Judgment Under Uncertainty: Heuristics and Biases. Cambridge, UK: Cambridge Univ. Press.
Kokis, J. V., MacPherson, R., Toplak, M. E., West, R. F. & Stanovich, K. E. (2002). Heuristic and analytic processing: age trends and associations with cognitive ability and cognitive styles. J. Exp. Child Psychol, 83(1), 26-52.
Koklic, M. K. & Vida, I. (2009). Koklic, M.K. & Vida, I. (2009). A strategic household purchase: Consumer house buying behavior. Managing Global Transition, 7(1), 75-96. Managing Global Transition, 7(1), 75-96.
Kuester, S. (2012). In MKT 301: Strategic Marketing & Marketing in Specific Industry Contexts (p. 110). University of Mannheim.
Kunshan, W. & Yiman, T. (2011). Applying the extended theory of planned behavior to predict the intention of visiting a green hotel. African Journal of Business Management, 5(17), 7579-7587.
McAllister, P. & Mansfield, J. R. (1998). Investment Property Portfolio Management and Financial Derivatives: Paper 1. Property Management, 16(3), 166-169.
Monico, M. (2013). Australian attitudes and behaviours towards buying their first home. Australian: RAMS First Home Buyers’ Pulse Check Survey 2013. RAMS Financial Group Pty. Ltd.
Newstead, S. E., Handley, S. J., Harley, C., Wright, H. & Farelly, D. (2004). Individual differences in deductive reasoning. Quarterly Journal of Experimental Psychology, 57A, 33-60.
Nickerson, R. S. (1968). A note on long-term recognition memory for pictorial material. Psychonomic Science, 11(2), 58.
Njo, A., Made-Narsa, I. & Irwanto, A. (2017). Dual process of consumption and investment motives in residential market Indonesia. Proceeding of 22nd International Conference on Advancement of Construction Management and Real Estate, CRIOCM 2017 (pp. 550-556). Melbourne: Springer.
Pacini, R. & Epstein, S. (1999). The relation of rational and experiential information processing styles to personality, basic beliefs, and the ratioâ€bias phenomenon. Journal of Personality and Social Psychology, 76, 972–987. doi:10.1037/0022â€3514.76.6.972
Peters, E., Diefenbach, M. A., Hess, T. M. & Västfjäll, D. (2008). Age Differences in Dual Information-Processing Modes: Implications for Cancer Decision Making. Cancer, 113(12 Suppl), 3556–3567. doi:10.1002/cncr.23944.
Reber, A. S. (1993). Implicit Learning and Tacit Knowledge. Oxford, UK: Oxford Univ. Press.
Scanlon, K. & Whitehead, C. M. (2010). The economic rationality of landlords. Housing Economics Working Group (pp. 1-28). Copenhagen, Denmark: LSE Research Online. Retrieved from http://eprints.lse.ac.uk/29951/.
Shah, A. K. & Oppenheimer, D. M. (2008). Heuristics made easy: An effort-reduction framework. Psychological Bulletin, 134(2), 207-222. doi:1.1037/0033-2909.134.2.207
Shiller, R. J. (2007). Understanding recent trends in house prices and home ownership. NBER (National Bureau of Economic Research, Inc), 1-46.
Shiloh, S. & Shenhav-Sheffer, M. (2004). Structure of difficulties in mate-selection decisions and its relationship to rational and intuitive cognitive styles. Personality and Individual Differences, 37, 259-273.
Shiloh, S., Salton, E. & Sharabi, D. (2002). Individual differences in rational and intuitive thinking styles as predictors of heuristic responses and framing effects. Pers. Individ. Dif., 32, 415-429. doi:10.1016/S0191-8869(01) 00034-4
Simon, H. A. (1973). The structure of ill-structured problems. Artificial Intelligence, 4(3), 181-201.
Simon, H. A. (1978). Information processing theory of human problem-solving. In W. (. Estes, Handbook of Learning and Cognitive Processes (pp. 271-295). Erlbaum, Hillsdale, NJ.
Sladek, R. M., Bond, M. J., Huynh, L. T., Chew, D. P. & Phillips, P. A. (2008). Thinking styles and doctors’ knowledge and behaviours relating to acute coronary syndromes guidelines. Implementation Science, 3, 23.
Smith, A. (1992). The Redefining: Real Estate’s Role in Fund Portfolios. Pension World, 28(11), 12-14.
Smith, E. R. & DeCoster, J. (2000). Dual-process models in social and cognitive psychology: Conceptual integration and links to underlying memory systems. Personality and Social Psychology Review, 4, 108–131.
Spanier, G. B., Sauer, W. & Larzelere, R. (1979). An Empirical Evaluation of the Family Life Cycle. Journal of Marriage and Family, 41(1), 27-38.
Stanovich, K. E. (1999). Who is Rational? Studies of Individual Differences in Reasoning. Mahway, NJ: Lawrence Erlbaum Associates.
Stanovich, K. E. & West, R. F. (1998). Individual differences in framing and conjunction effect. Think. Reason, 4, 289-317. doi:10.1080/135467898394094
Tversky, A. & Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology, 5(2), 207–232.
Tversky, A. & Kahneman, D. (1974). Judgment under uncertainty: heuristics and biases. Science, 185(4157), 1124-1131.
Published
2018-12-22
How to Cite
Anastasia, N., & Narsa I, M. (2018). Dual Process Difference in Families Regarding Home Buying Decision. Journal of Economics and Behavioral Studies, 10(6(J), 272-285. https://doi.org/10.22610/jebs.v10i6(J).2617
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Section
Research Paper
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