Plan your future: the mechanism of power distance belief in future planning

Purpose This study aims to investigate how power distance belief (PDB), one of Hofstede’s fundamental cultural dimensions, defined as the extent to which people accept and endorse hierarchy, influences consumers’ intention for endeavors that are more oriented toward future planning. Design/methodology/approach Three mixed-method studies validate the proposed moderated-mediation model by using experimental and secondary data and investigating various future planning contexts (life and health insurance, saving, consumption with short-term benefits, risky investment and a combination of PDB manipulation and products). As a test of the underlying process, this study also investigates the mediating role of perceived uncertainty and the moderating role of self-efficacy. Findings The findings of this study support the hypothesis that high PDB consumers with low resource scarcity are more inclined to engage in endeavors more oriented toward future planning because they perceive a high level of uncertainty in their lives. This perception, in turn, plays a role as a mediator and motivates them to adopt long-term-oriented actions. Furthermore, self-efficacy facilitates PDB’s effect on future planning by positively moderating consumers’ reactions to perceived uncertainty. Practical implications The research findings across various retail contexts provide implications for companies and policymakers. Specifically, for future-oriented products, companies can leverage consumers’ PDB to enhance sales in the low resource scarcity segment (household income higher than $75,000). Policymakers can encourage savings by incorporating social structure information into public messaging. Originality/value The role of culture in consumers’ intentions for endeavors that are more oriented toward future planning has received limited attention in the literature. Comprehending PDB’s role is relevant and crucial, given that it directs consumers’ psychological and behavioral reactions to emerging changes in power dynamics and social hierarchies.