Women's High-Consequence Decision Making: A Nonstatic and Complex Choice Process

Abstract

The choice processes women investors employ when making mutual fund decisions in employer-based retirement plans were examined. A qualitative analysis of focus group material was used to investigate women’s decision making environments and strategies employed for this high-consequence decision. Interpretation of extracts from the focus groups suggests that the observed lack of investment information, reliance on simplified decision heuristics, and dependence on decision making guidance from others characterize largely constructive choice processes. The results emphasize the nonstatic and complex nature of women’s investment decision making.

Keywords: consumer psychology, decision making, portfolio choice, women investors