Voya Colloquium explores Consumer Financial Decision Making

December 1, 2023

2023 Voya Guest Speakers
John Lynch, Rafael Becerril Arreola, Rebecca Hamilton, and Robert Lawless

The Marketing Department at the UConn School of Business hosted its 11th annual Voya Financial Colloquium on the topic of “Consumer Financial Decision Making.” The event, held on Oct 13th, 2023, brought together researchers from across the country to discuss how consumers respond to a changing financial landscape, the challenges they face in navigating financial systems and how their interactions within a broader social context influence their financial decisions.

“The study of consumer financial decision making explores how consumers accumulate and use financial resources over time and is a fast-growing area of research within the field of marketing,” said UConn Marketing professor Christina Kan in opening remarks.

Professor Kan, who organized the event, went on to discuss how financial decision making is also of interest to many other disciplines, noting “Our goal for this colloquium was to look at the topic of consumer financial decision making from a variety of different perspectives, and we’re delighted to have a panel of speakers from diverse backgrounds.”

The colloquium featured four distinguished speakers – Professors John Lynch, Rafael Becerril Arreola, Rebecca Hamilton, and Robert Lawless – each of whom approached the topic from different perspectives – including marketing and law – as well as different methodologies – including experimental, econometric, and ethnographic approaches.

The colloquium fostered an energetic discourse between speakers and participants, including marketing and law faculty and doctoral students from UConn, UMass and URI.

Below are profiles of the guest speakers and an abstract of their presentations:

John Lynch, Distinguished Professor at the University of Colorado-Boulder, delved into the complex relationship between financial knowledge, financial behavior, and financial well-being. Lynch highlighted two prevalent approaches to improving consumer financial well-being: financial education and behavioral interventions, often referred to as “nudging.” He introduced the concept of “just in time” financial education, positioning it between these two approaches.

Lynch used these concepts as a springboard for discussion on his recent research into a pressing issue – employees cashing out their 401(k) retirement savings when changing jobs. In a comprehensive study covering 162,360 terminating employees, Lynch and his coauthors found that over 40% of individuals leaked their 401(k) savings, cashing out at job separation, with employer contribution proportions influencing the likelihood of leakage. The findings underscored the unintended consequences of well-intentioned employer matches, revealing the delicate balance between supporting employees and inadvertently encouraging financial decisions that undermine long-term well-being.

Rafael Becerril Arreola, Associate Professor at the University of South Carolina, focused on the impact of product price rankings on consumer choice. His research addressed Veblen effects and counter-effects, investigating how product prices signal consumer wealth. Using a quasi-experimental approach, Becerril Arreola’s approach addresses potential identification threats. His analysis capitalized on a rich dataset on automobile rentals to demonstrate that consumer sensitivity to local rankings of selling-prices is highly heterogeneous, often negative, and comparable in magnitude to consumer sensitivity to rental fees. The study highlights the role that prices play in wealth signaling effects and suggests that conspicuous consumption may be more significant than previously estimated.

Rebecca Hamilton, the Michael G. and Robin Psaros Chair in Business Administration at Georgetown University, explored the challenges families face in responding to resource scarcity. Drawing on in-depth interviews with 30 diverse families, Hamilton developed a framework illustrating how multi-dimensional, concurrent and/or consecutive life events (such as job changes, house moves or child birth) create mismatches between available and required resources, triggering situational resource scarcity. The study identified various patterns of adjustments in consumption and resource investment over time, and how they are influenced by families’ chronic resource constraints and availability of support networks. Hamilton notes that that the flexibility afforded by multiple family members is constrained by collective goals, domains of control, tensions, and negotiations within families.

Robert Lawless, the Max L. Rowe Professor of Law at the University of Illinois, provided a thought-provoking presentation on the bankruptcy system and the experiences of individuals navigating financial distress. Using data from the Consumer Bankruptcy Project, a long-running study of persons who file bankruptcy, Lawless highlighted the prevalence of personal bankruptcy in the U.S., noting that roughly one in ten Americans have filed bankruptcy at some point during their lives. His presentation focused on two themes. The first centered around the legal and economic consequences of filing bankruptcy and how legal services are marketed just like everything else. The second theme illustrated life in the “sweatbox,” shedding light on the financial precarity and distress that individuals endure in the years leading up to bankruptcy filing.

After Semester-Long Development, Student-Created ‘BrewConn’ Beer Debuts with Glowing Reviews

November 30, 2023

UConn Today – The University of Connecticut unveiled an inaugural, student-created beer on Tuesday, with a celebration that drew more than 350 alumni, friends, and other brewmasters, all eager to sample BrewConn, a double dry hopped hazy IPA.

The event, at Kinsmen Brewing Co. in Southington, capped off a semester of hard work for nine students, mostly chemical engineering majors, who learned the craft of brewing, literally from the ground up.

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Study Says Black Households Pay Higher Heating Costs, Seek Cold-Related Medical Care More Often

November 29, 2023

UConn Today – Ticking up the thermostat a degree or two is going to cost anyone more money, but a new study from UConn researchers suggests Black households pay more to keep their homes comfortable, in part due to increased cold sensitivity.

The finding, published this fall in Energy Economics, spans the socioeconomic spectrum and also states Black people who can’t afford those couple extra degrees end up seeking medical attention more often than white counterparts.

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Ask the Experts – Insurance Review

November 25, 2023

WalletHub – Q; Do you think Liberty Mutual’s tagline about customizing insurance to customers’ needs really distinguishes it from other insurance companies?

A: The “only pay for what you need” campaign is supported by several humorous vignettes with established characters, building familiarity and trust. The storylines are attention-getting, memorable, and pleasant. This is the strength of this campaign.

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Alumna Toni Boucher’s $8 Million Gift to Benefit Science, Tech Entrepreneurship at UConn

November 15, 2023

Students Aria Penna (left) and Luis Quisumbing (right) pose for a photo with donor Toni Boucher ’02 MBA (Nathan Oldham / UConn School of Business
Students Aria Penna (left) and Luis Quisumbing (right) pose for a photo with donor Toni Boucher ’02 MBA (Nathan Oldham / UConn School of Business

Luis Quisumbing’s eyes light up as he talks about his membership in the student-run UConn Formula SAE race car organization. The latest car took first place for acceleration in a recent college competition, beating more than 100 other entries. The technology and innovation it incorporates might also be applied to other fields, including the defense industry.

Aria Penna is developing expertise in investing, and is particularly intrigued by companies developing technology that can make the world more green. She has become more knowledgeable about sustainability, and can quickly identify promising startups.

Although five decades separate the two business students from UConn alumna Antonietta ‘Toni’ Boucher ’02 MBA, their perspective is the same: Who better than UConn students and alumni to create, support, bolster and lead companies that are going to change the world?

“When I talk to these students, I see my own children, I see my own grandchildren. The School of Business is a place of innovation. There is wonderful talent here,’’ said Boucher, a former Connecticut state legislator who served for 22 years.
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Dean’s Report 2023

Like so many members of UConn Nation, I cheered wildly for our men’s basketball team throughout March Madness, and when our players captured the NCAA Championship trophy in April.

And while every coach and player on that team contributed to an amazing season, I would be less than honest if I didn’t tell you I cheered just a little louder for guard Joey Calcattera, a member of our MBA cohort at the School of Business.

“Joey California’’ as he was fondly nicknamed by Coach Dan Hurley, and then the rest of the world, signed a basketball contract with the South Bay Lakers, the LA Lakers’ G-League team, last month.

Calcaterra’s continuing success is no surprise.

During a recent interview with the School of Business, he talked about how he chose UConn because he knew he would be “working his tail off’’ both on the basketball court and through his graduate coursework. It is that kind of persistence that creates champions!

I hope you’ll read more about Joey’s journey in the 2023 School of Business Dean’s Annual Report, beginning on page 4.

At the School of Business, we have more than 4,000 students all seeking their own championships—in business, in entrepreneurship, and in life.

Our report highlights their success, with 90 percent of our 2023 undergraduates employed or in graduate school within three months of graduation. Their employers, and their salaries, are equally impressive (page 17).

I hope the magazine will offer you a glimpse of our accomplishments, an introduction to some of our outstanding faculty (pages 7-9), and the alumni who are dedicated to our school (pages 10-11 and 14). Be sure to glance at our Words Worth Repeating (page 20), highlighting the wit and wisdom that we have shared and received throughout the year.

I want to thank you, our alumni and friends, for the many contributions you have made to the School of Business this past year. I am grateful for your support and encouragement of our students, and your partnership in our commitment to excellence in business education.

I wish you all a happy Thanksgiving, with the love and companionship of those you hold dear.

 

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Colleges expand business analytics, data science programs to meet industry demand

November 13, 2023

Hartford Business Journal – Ever-evolving technology and near-limitless information storage capabilities mean massive amounts of data are available for companies and other organizations to analyze. That’s created a significant need for business and data analysts and similar positions at companies large and small that are in search of a competitive edge.

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Colleges expand business analytics, data science programs to meet industry demand

UConn School of Business students used data analytics to help Connecticut Foodshare increase and improve donations.
(Photo Courtesy of Hartford Business Journal)

Hartford Business Journal – Ever-evolving technology and near-limitless information storage capabilities mean massive amounts of data are available for companies and other organizations to analyze. That’s created a significant need for business and data analysts and similar positions at companies large and small that are in search of a competitive edge.

Read article

Beyond the Curriculum: MBA Alumnus Offers Fascinating Insight Into Potential of Offshore Wind Farm

October 31, 2023

One way to think about a college business degree is that it consists of 120-credit hours of course work, about half of which is study in the arts and sciences, and half in business courses. But students will tell you that the course work is only part of the growth opportunity that colleges provide in today’s world.

Beyond the course curriculum is a rich array of opportunities giving students incredible choices in experiences that will help them grow, thrive, and enjoy their college experience. Some are obvious, such as sports, the band, the student newspaper, social societies, and the like. Some are crafted living opportunities, such as the Business Connections Learning Community (BCLC), which provide programs that augment the student experience. The BCLC is a residential community in Belden Hall where students engage in significant, supportive programming, learning about everything from preparing a resume to becoming certified on the Bloomberg terminals. They host alumni who share insights about professional career paths and many agree to serve as mentors to our students.

There are many clubs focused on everything from accounting or finance to Formula 1 racing. Each of these clubs provides students the option to engage modestly or to become a leader with significant responsibility.

Alumnus’ Career Spanned From Military Service to Renewable Energy

Today I want to share a recent extracurricular event that exemplifies the richness and diversity available outside the classroom. On Oct. 20, alumnus Bryan Dougherty ’17 MBA was our guest speaker in the Sustainable Business Breakfast Series. Today’s students are sensitive to the environment and want to care for it, and learn about the many ways we can do so.

Bryan is an Operations Project Manager with Orsted, a Danish company that is launching offshore wind farms in New England. From my perspective Bryan played two roles. He exemplifies career progression, and he knows a great deal about green energy that the students want to learn.

Bryan is a graduate of the U.S. Military Academy at Westpoint. He served nine years as an active-duty U.S. Army officer and then transferred to the National Guard where he continues to serve part-time. Following active duty, he returned to civilian life, joining Sikorsky in Stratford, Conn. The company encouraged and supported him in getting an MBA at UConn. This prepared him for a series of increasingly demanding roles over nine years. He then joined Orsted, following
through on an internal career spark to get involved with renewables.

He shared with us the challenges of bringing offshore wind to New England. Orsted has been doing this in Europe for 25 years, and the company has the technology to do it well. Bryan emphasized that in these initiatives, track record and experience are critical. But every new location is distinct and understanding the local operating environment is needed to gain a sustainable foothold. Regulation and environments are different.

I was reminded of learning decades ago about efforts to build long-distance transmission lines in the United States. The industry pointed out how much easier it was in communist countries or countries with other regulatory environments. In our country, every state, county, and municipality has property rights over regulatory approvals. The challenge is not only about whether projects will be approved but also about how long it takes to earn approval. In the United States, NIMBY (Not in My Backyard) is a potent barrier to approval of even the most logical initiatives. Getting energy from water-powered electricity to consumers was no easier than getting wind-powered electricity to consumers.

One Turn of the Blade Could Power a Home for 24 Hours

These wind turbines are huge, producing at an 11-megawatt capacity; where one blade turn is enough to power a home for one day. These offshore wind turbines are much larger than their land-based turbine siblings. Maintenance will require technicians to go up elevators inside them to service the mechanics. The technicians must get from land-based homes to the water-based generators. There are whales to protect, birds to worry about, and more. Launching these devices will be a mammoth effort, and Bryan referred to New London as the “Cape Canaveral’’ of New England offshore wind power. Once launched, these generators are expected to have a 35-year lifespan, and there are several entities involved ensuring the New London region remains an important hub during that timeframe, including the eventual decommissioning of the wind farms.

The proposed wind farms will generate sufficient electricity to power 900,000 homes, with future bids on the horizon to bring new offshore wind farms online in the next 10 years. The process involves companies bidding to access offshore sites for turbine installation, and the project is moving forward. But recently plans have been disrupted by the rising interest rates, which imperil the viability of large capital projects. The wind-farm projects are one of many examples of potential moderation of man-made climate change, and the difficulty in implementation reminds us of the challenges.

Bryan tied back to his MBA learnings, specifically with international business and operations management courses. He is seeing first-hand how understanding the local operating environment is imperative to business success. He is also applying operational design tools taught in his graduate class to apply to the current operations and maintenance strategy for Orsted’s New England projects. He is experiencing this with a job and company he loves, where he’s following through on an internal spark that was lit 15 years ago.

Bryan intends to support the School of Business’ Global Business Leadership in Sustainability Summit on March 1st, 2024 in Storrs, and hopes to see Husky Nation turn out to learn more about the impact of renewables on our state and the region.

To learn more about the summit, please visit global.business.uconn.edu.

 

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