Loibl, C., Lee, J., Mentel-Gaeta, E., Fox. J. (2007). Women's high-consequence decision making: A nonstatic and complex choice process. Financial Counseling and Planning, 18(2), 35-47.
http://6aa7f5c4a9901a3e1a1682793cd11f5a6b732d29.gripelements.com/pdf/6-2861-volume-18-issue-2.pdf
Brief Description: Using qualitative data from a focus group of female investors, this study examined choice processes used when making mutual fund decisions in employer retirement plans. It found that investment decision-making is a compromise between the goals of increased accuracy and a desire to limit cognitive effort. Observations included a lack of investment information and reliance on simplified decision-making methods and guidance from others. The decision-making process was often experienced as conflict-laden and stressful.
Implications: There is a need for women (and men) to be educated on the dangers of relying on heuristics (mental shortcuts), such as making investment decisions based on the most recent performance of a mutual fund. In addition, information about mutual funds needs to be presented in a less complex manner. There was an observed tendency among those interviewed to "look for an easy way out" during their search process.
