It’s International Cat Day. Is Your Cat Influencing Your Investment Decisions?

Today is International Cat Day, a day to celebrate one of man’s most ancient pets. Cats held significant and revered positions in ancient Egyptian society, and were believed to be magical beings that protected the homes of their owners, bringing good fortune and warding off evil spirits. Today, cats still hold an important place in our hearts, with 58 million cats living as pets in American homes.

As any cat owner will tell you, cats have no masters. Encouragingly, a recent study from Oregon State University found that cats enjoy human interaction and will remember and respond to their owner’s acts of kindness. The study also found that cats can knowingly manipulate their owner to get what they want. With this in mind, is it possible that cats influence the investment behavior of their human parents? The answer might be yes.

Cat owners tend to invest differently compared to other investors, particularly dog owners. Studies have shown that cat owners exhibit certain consumer behavior traits that set them apart:

Risk Aversion: Cat owners tend to be more risk-averse when it comes to their investment choices. A study conducted by Xiaojing Yang and researchers at the University of South Carolina found that cat owners were less likely to choose stocks as a financial investment compared to dog owners. Dog owners were more inclined to opt for stocks and allocated more money to them than cat owners, who generally preferred safer investment options.

Preference for Problem Prevention: Cat owners tend to favor products and investments that focus on risk reduction and problem prevention. They are drawn to options that help avoid potential problems and uncertainties. This cautious approach aligns with the stereotypical traits associated with cats, which are often seen as more independent and cautious animals.

Promotion-Focused Mindset: Exposure to cats reminds consumers of the stereotypical traits and behaviors associated with cats, activating a prevention-focused motivational mindset. This mindset is linked to a preference for products and investments that prevent problems or negative outcomes. The regulatory mindset influenced by pet exposure carries over to influence consumer judgments, purchase intentions, and behaviors, even in unrelated consumption contexts.

In summary, cat owners exhibit a more cautious and risk-averse approach to investing, preferring products and investments that focus on problem prevention and risk reduction. These traits are reflective of the stereotypical characteristics often attributed to cats.