Incentivizing or Disincentivizing? How Perceived Social Mobility Affects Consumers' Risk Preference

ABSTRACT Individuals make subjective judgments about the probability of their current social class changing in the future, and this judgment is known as perceived social mobility. Studies have explored the impact of perceived social mobility on consumer psychology and behavior; however, they have not linked it to risk preference. Based on social cognitive theory, this research examines the impact of perceived social mobility on consumers' risk preference and its underlying mechanism. Five studies are conducted to test the proposed conceptual model. Findings indicate that low perceived social mobility reduces consumers' risk preference compared to high perceived social mobility, with self‐efficacy playing a mediating role in this relationship. Alternative mediators, including sense of control and sense of power, are excluded. Time orientation plays a moderating role in this relationship. The findings advance research on perceived social mobility and risk preference, while guiding consumers to make informed consumption decisions that protect their interests.