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Abstract

This study examines the interplay between ethnicity, religious affiliation, and income levels to understand differences in managing money. Asset allocation decisions among 730 Caucasian and ethnic Chinese were examined. Respondents in Australia, Canada, and China revealed their monetary decisions in an online survey. Multivariate analysis of variance was used to examine differences and interaction effects between ethnic, religious, and income groups. The study found that for the higher-income respondents, asset allocation decisions converged despite differences in ethnic and religious background. In the lower-income segment, asset allocation decisions varied along ethnic lines. These differences were further compounded by their religious background. The implications of this study of management are twofold: the high-income group can be treated as one segment, for example, from the international marketing segmentation perspective. On the other hand, respondents in the low-income bracket diverged in their investment strategies on the basis of ethnicity and religion. As such, they ought to be treated separately according to their values.

Keywords

Asset allocation China convergence cross-vergence divergence ethnicity income international market segmentation religious affiliation

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Cross-cultural management of money

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