THE EFFECT OF NEGATIVE FRAMING AND COMPENSATION SCHEME ON ESCALATION OF COMMITMENT ( Experimental Study at S1 Students of Faculty of Economics Yogyakarta State University )

Abstract

This study aims to examine : (1) Individuals with negative framing will tend to experience escalation of commitments higher than individuals without negative framing, (2) Individuals with bonus compensation schemes will tend to experience escalation of commitments higher than individuals with penalty compensation schemes. The sample of this study was 80 accounting students from Yogyakarta State University. This study uses a factorial 2 x 2 design with an instrument case of escalation of commitment. The data in this study were analyzed through a normality test and homogeneity test. The hypothesis in this study was processed with one way ANOVA to examine the main effects of each variable. The results of the study found that: (1) Individuals with negative framing will have a tendency to experience escalation of commitment higher than individuals without negative framing because the significance value is 0.001, and (2) Individuals with bonus compensation schemes will have a tendency to experience escalation of commitment higher than individuals with penalty compensation scheme because the significance is 0.022 .

Keywords: Negative Framing, Compensation Scheme, Escalation of Commitment