The Use of Social Capital in Borrower Decision-Making

By looking beyond the financial characteristics of borrowers, this research brings to light the social factors that influence a borrower's choice of a lender and mortgage product. Previous research has indicated that distinct channels exist that funnel borrowers into lower or higher cost loan products (Apgar, Bendimerad, and Essene 2007). But little is known as to how borrowers seek out or are directed to such channels. A particular concern that this paper hopes to address is why black borrowers disproportionately have higher priced products.Some research indicates that even when credit worthiness is controlled for, blacks are overrepresented in the subprime sector and in higher-cost products (Bocian, Ernst, and Li 2006). Through in-depth interviews with 32 borrowers, this research (1) highlights how borrowers seek mortgage credit and evaluate their mortgage options, and (2) demonstrates how borrowers make use of their social networks (friends and family) when making their decisions.The preliminary findings indicate that borrowers' preferences and subsequent demands for mortgage products were shaped by the informal and formal advice they received. Those borrowers who consulted the most diverse sources of information had loans with lower interest rates. Those borrowers who received advice only from family and friends did not fare as well as those who received help from credit counselors. Thus, arguably, their loan outcomes varied not just based on if they consulted others, but especially whom they consulted. When given the right advice, potential homebuyers make better decisions in choosing both a lender and a loan

Race, Social Context, and Consumption: How Race Structures the Consumption Preferences and Practices of Middle and Working-Class Blacks

The contemporary experience of race in America demands that blacks become astute observers of their surroundings, required to read subtle social, interactional and environmental cues to determine how to appropriately engage others in order to gain respect and social acceptance. Consumption objects, whether physical or material goods or services and experiences, are symbolic tools that blacks mobilize in order to define and assert themselves wherever they may be. Market research reveals that divergent patterns of consumption exist along racial lines. Blacks outspend whites in three central categories: apparel, personal care, and electronics and technology. Sociological research on consumption, however, has inadequately addressed how race influences blacks' consumption. Claims that blacks are conspicuous consumers are pervasive in both popular and academic works, and research indicates that blacks' consumption is, at least partially explained by status considerations, yet no comprehensive, empirically grounded theory exists to account for the contextually determined, symbolic and strategic use of goods by middle and working-class blacks. In my dissertation entitled “Race, Social Context, and Consumption: How Race Structures the Consumption Preferences and Practices of Middle and Working-class Blacks,” I offer an account of blacks' consumption that addresses this gap in the literature. I analyze qualitative interview data collected from 55 blacks residing in the New York City area, focusing on blacks' consumption preferences and practices in three social arenas: where they live, where they work, and where they play. Through examining middle and working-class blacks' consumption I show the ways that race remains salient in blacks' everyday lives; affecting their routine practices and marketplace interactions. Blacks differ as consumers as a consequence of a history of racial alienation, segregation, and discrimination in public settings, which has resulted in their use of goods to mitigate racial stigma, but distinct patterns of consumption emerge as blacks mobilize consumption objects to express and affirm their racial identities. This dissertation demonstrates that whether consumption goods are used to contest racial stigma or to express feelings of racial affinity, in both instances blacks' consumption preferences and practices reflect their reactions to the settings in which their consumption is enacted

The racial bias in retail study

Retail is one of society’s most interactive institutions — with millions of people from all different backgrounds crossing paths daily. These interactions bring a range of possibilities: highs and lows, positive and negative experiences, connection and misunderstanding, and often, instances of racial bias and the feeling of unfair treatment. In fact, racial bias is so pervasive in retail that according to a 2018 Gallup study significantly more Black shoppers reported experiencing unfair treatment in a store within a 30-day period than at work, in dealings with the police, or at a restaurant, bar, theater, or some other entertainment venue. The Sephora-commissioned study was conducted over a year-long period, beginning in the Fall of 2019 and ending in late 2020, included both primary and secondary research. The research consists of analysis of academic literature, a deep dive into why and how racial bias shows up in retail today, and interviews, both online and virtual, with shoppers and retail employees across the United States. The study explores the disparate experiences in retail across race and includes insights on socioeconomic status, gender, and more. The goal of the research is to call attention to the inequities of retail shopping experiences for consumers and more importantly, identify actionable solutions to galvanize change