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E1b The Association Between Personality Traits and Consumer Residential Preferences
Key Words
Personality Traits, Consumer Behavior, Residential Preferences, Housing, Mortgage, Big Five
Short Description
A consumer's housing decisions are not only a culmination of economic and social factors, but could also be driven by a consumer's personality traits. Utilizing data that are collected from the Health and Retirement Study (HRS), this study's hypothesis is that certain personality traits influence residential preferences. The objective of this study is to analyze the Big Five "OCEAN" personality traits – (O)penness, (C)onscientiousness, (E)xtraversion, (A)greeableness, and (N)euroticism – and their explanatory impacts on the value of a consumer’s home and on the amount of a consumer's mortgage debt. The results from two tobit regression models suggest a link between the OCEAN personality traits and a consumer’s residential preferences. Openness (+), conscientiousness (+), and agreeableness (-) are significant predictors of larger home values. Openness (+), agreeableness (+), neuroticism (-), and conscientiousness (-) are significant predictors of larger mortgage debt balances. This study provides a functional perspective that can be incorporated with the housing and psych-social literatures.
First & Corresponding Author
Blain Pearson, Texas Tech University
Authors in the order to be printed
Blain Pearson, Taufiq Hasan Quadria, Sarah Asebedo