Spending propensity and price perceptions

ABSTRACT

This article presents a systematic investigation of how Spending Propensity moderates consumers’ perceptions of prices. Results from three studies are presented. Studies 1 and 2 reveal that, in the absence of any external cues, consumers who are predisposed to spending freely evaluate a posted price more favorably than those who are not. Such consumers also report anticipating less pain associated with spending than those who are not inclined to spend. Additionally, Study 2 informs that simple price communication tactics, without any real reduction in price, may be effective at mitigating the pain felt among those who are less inclined to spend. Furthermore, such tactics are capable of reducing, and even reversing, the gap between those who are not predisposed to spending and those who are. Finally, Study 3 explores how spending propensity moderates consumers’ perceptions of a discount.     

I'll Have Fries with That: Increasing Choice Complexity Promotes Indulgent Food Choices

Three studies showed that the way that options are presented in a choice set—as combinations of intersecting attributes or in a more sequential “a la carte” choice format—affects the degree to which consumers adhere to their goals in the consumption setting. Specifically, using the context of food consumption and healthy eating, results showed that consumers were more likely to make double indulgent choices, the choice of both an indulgent entrée and an indulgent side item, when choosing from a menu consisting of predetermined “combination meals” than when selecting among the same entrée and side options in an a la carte fashion. Studies 2 and 3 implicated a goal distraction mechanism in driving the effect; the combination format, with its cross‐cutting of product choices into various combinations, reduces the salience of goal‐related constructs on implicit measures. In showing that different product presentation formats can affect the degree to which consumers make goal‐consistent choices, the current work adds to work on the effects of environmental influences on goal progress and goal achievement. Implications for encouraging goal‐consistent behavior in the context of healthy eating as well as other important consumer goal contexts are discussed.     

Perceived product creativity and mental contrasting: Desired future on consumers’ product replacement decisions

Consumers often imagine what it would be like to own a new product. Does engaging in such thoughts on desired future impact consumers’ purchase intentions, and if so, what is the underlying process? This study sets out to investigate the posed questions by assessing self‐regulatory strategies consumers employ upon pondering on a desired future. Based on Oettingen’s fantasy realization model, the authors take a comparative approach of two modes on desired future—mental contrasting and indulging—en route to purchase intentions. In mental contrasting, an individual juxtaposes a desired future with his/her present reality, whereas, indulging is simply envisioning a desired future. Contingent upon the perceived likelihood of fantasy realization, consumers in the mental‐contrasting condition adjust their level—that is, high (low) for high (low) feasibility case—in goal commitment as well as in energization to achieve the desired future. In contrast, consumers in the indulging condition engage in moderate level of goal commitment—irrespective of the likelihood of fantasy realization. In a series of experiments, this study scrutinizes the fantasy realization model in context of attribute alignability/nonalignability, uncertainty in attribute meaningfulness and novelty, technological and psychological obsolescence en route to affecting the consumers’ product purchase/upgrade intentions. Conceptually, this study is the first to adapt the fantasy realization model to the marketing context, and the authors provide managerial implications of their key findings.     

Estimating the effects of nutrition label use on Canadian consumer diet‐health concerns using propensity score matching

The overarching goal of nutrition labelling is to transform intrinsic credence attributes into searchable cues, which would enable consumers to make informed food choices at lower search costs. This study estimates the impact of nutrition label usage on Canadian consumers’ (n = 8,114) perceived diet‐health concerns using alternative propensity score matching (PSM) techniques. We apply a series of tests and sensitivity analyses to overcome issues of endogeneity and selection bias frequently found in studies of diet‐health behaviour and to validate the impact of exposure to nutrition facts labels for users vs. non‐users. Our results support the notion that consumer uncertainty and related food‐health concerns are linked to their information behaviour, but not in straightforward manner. Dominant subjective food attributes, such as taste, convenience and affordability, may in fact outweigh the benefits of information about healthier, alternative food choices. In order to change dietary health behaviour, food manufacturer and policy makers alike need to adopt communication instruments that better account for differences in preferences, shopping habits and overall usage patterns of nutrition labelling information.     

Friends with benefits: Behavioral and fMRI studies on the effect of friendship reminders on self-control for compulsive and non-compulsive buyers

Does the real or imagined presence of friends invariantly drive consumers to engage in disinhibited behavior, and give in to the “urge to splurge” in the face of consumption temptations? Or might there be situations in which being with friends or even merely thinking of friends or the friendships we have with them can actually improve self-control?In five studies, using a unique combination of controlled experiments examining overt consumer behavior and functional magnetic resonance imaging (fMRI), we propose and show that the extent to which consumers identify a goal conflict between giving in to buying temptations on the one hand and the perceived consequences for maintaining satisfactory relationships with close friends on the other is a critical mediator of whether friendship reminders decrease or increase self-control. We further show that such a goal conflict is most likely for consumers with a chronic, compulsive tendency for uncontrolled, disinhibited acquisition and consumption—for consumers classified as compulsive buyers. For their non-compulsive counterparts, in contrast, acts of acquisition and consumption, even incidental disinhibited ones, are perceived to be less problematic in light of their friendships and hence do not induce a goal conflict to the same extent. Our findings provide insights into social influences on self-control and identify the concept of friendship reminders as a way to reduce a common type of dysfunctional consumer behavior. In addition to enhancing consumer well-being, reducing compulsive buying will substantially reduce handling costs for organizations. Hence, the findings are of academic, societal and managerial relevance.     

Green intentions under the blue flag: Exploring differences in EU consumers’ willingness to pay more for environmentally‐friendly products

Recent research on consumer social responsibility highlights the need to examine psychological drivers of environmentally‐friendly consumption choices in a global context. This article investigates consumers’ willingness to pay (WTP) more for environmentally‐friendly products across 28 European Union (EU) countries, using a sample of 21,514 consumers. A multigroup structural equation modeling analysis reveals significantly different patterns and relationships, in how (a) subjective knowledge about the product's environmental impact, (b) environmental product attitudes, and (c) the perceived importance of the products’ environmental impact influence consumers’ WTP more for environmentally‐friendly products across countries. The hypothesized model predicts WTP for 20 out of 28 countries and the findings show that a “one‐size‐fits‐all” approach is inadequate in capturing the heterogeneity of EU consumers. Hosfstede's cultural dimensions of uncertainty tolerance and individualism explain differences in WTP for environmentally‐friendly products across EU countries. Business, marketing communications, and policy making implications are discussed.     

Factors motivating male consumers’ eco‐friendly apparel acquisition in the South African emerging market

The necessity of pro‐environmental apparel behaviour is to date a neglected concept in the local South African apparel industry. This study focuses on male consumers’ underlying motivation and intent to acquire apparel in an eco‐friendly manner. The research hypotheses and framework for this study are based on the Norm‐Activation Theory and the Theory of Planned Behaviour to clarify underlying motivational factors that contribute to pro‐environmental apparel acquisition. Pro‐environmental approaches were conceptualized as consumers’ purposive reduction of the amount of apparel acquired as well as the evaluation and selection of apparel based on pro‐environmental attributes. A quantitative, cross‐sectional survey approach was used for explanatory research purposes. Male consumers (18 years and older, n = 305) were reached by means of non‐probability, purposive sampling. Respondents completed online and paper‐based questionnaires that included adapted scale items for use in the local context. Results suggest that respondents are aware of the environmental consequences of their apparel behaviour, which then ultimately influences their behavioural intent. In contrast to studies conducted abroad, social and moral norms did not significantly influence their decisions to acquire apparel in a pro‐environmental manner. Respondents’ attitudes and self‐efficacy (i.e. a dimension of perceived behavioural control) contributed to their pro‐environmental intent. Yet, controllability (another dimension of perceived behavioural control) was not a significant predictor of intent and warrants further empirical research. The findings of this study substantiate important recommendations for the development of intervention strategies to promote pro‐environmental apparel behaviour in emerging market contexts such as South Africa.     

Voluntary simplicity and the ethics of consumption

The increased levels of consumption that have accompanied our consumer‐oriented culture have also given rise to some consumers questioning their individual consumption choices, with many opting for greater consumption simplicity. This link between consideration of actual consumption levels and consumer choices is evident among a group of consumers known as ethical consumers. Ethical consumers consider a range of ethical issues in their consumer behavioral choices. Particularly prevalent is voluntary simplification due to concerns for the extent and nature of consumption. Through the presentation of findings from two qualitative studies exploring known ethical consumers, the relationship of consumer attitudes to consumption levels, and how these attitudes impact approaches to consumer behavior, are discussed. © 2002 John Wiley & Sons, Inc.     

Consumers as legitimating agents: How consumer‐citizens challenge marketer legitimacy on social media

Previous research has shown that consumers increasingly challenge the legitimacy of marketers and unsolicited marketing communication in online contexts. Based on a qualitative study, this article examines how and for what reasons consumers challenge marketer legitimacy—the perceived appropriateness of marketers and their activities—in the empirical context of Reddit, a popular social news and community website. The study suggests that consumers challenge or accept marketer legitimacy in online communities based on particular, community and situation specific, legitimacy criteria that reflect and reproduce the values and norms of the community. In doing so, it is argued, consumers play a role as legitimating agents—consumer‐citizens that have the power to confer or deny legitimacy in the context of business‐society relations. Overall, the study advances knowledge in the field of consumer studies in two ways. First, it builds a symbolic interactionist perspective on consumer‐citizens as legitimating agents who enact their active citizenship role in the marketplace by assessing and constructing marketer legitimacy in online communities. Second, it offers an empirically grounded account of how and for what reasons consumer‐citizens challenge or accept the legitimacy of marketers and unsolicited marketing communication in online communities.     

Cross‐cultural evaluation of factors driving intention to purchase new food products – Beijing,China and south‐east England

It has been reported that consumers in different countries have distinctive perceptions of, and attitudes to, products. This study investigated consumers’ thoughts on new food products in south‐east England (n = 222) and Beijing, China (n = 139), using a questionnaire‐based largely on the Theory of Reasoned Action. Results indicated that consumers in both countries believe it is necessary for the food industry in their respective countries to introduce new food products and they would like to try new products. There appears to be great interest in new products among the Beijing Chinese, with most interest in new healthy food products. The influences on choices suggest that a marketing focus on quality, utility and health benefits would be most fruitful, as personal beliefs were more important in intention to purchase than the influence of other people. Results point away from the expected result that the Chinese, as a collectivist culture, would place more emphasis on others’ opinions than their own beliefs. This may be linked to food not being an item of conspicuous consumption, or to a cultural shift among urban Chinese.     

Predicting consumers’ cheating behavior. The role of mental representation of goods and psychological ownership

This study examines the likelihood of cheating when consumers are offered with the option of using postponed payment plans after purchasing hedonic goods. It addresses how the nature of the good combined with payment timing affects its perceived psychological ownership, which in turn influences consumers’ cheating behavior. Three experimental studies indicate that when consumers mentally represent a hedonic (vs. utilitarian) good, they are more likely to cheat. This effect is greater with a postponed payment than with an immediate one. Findings also show that perceived psychological ownership is lower for hedonic goods and this explains different levels of cheating behavior. The paper offers managerial guidance on how to increase perceived psychological ownership for hedonic goods, with the goal of reducing cheating behavior.     

The political motivations of ethical consumers

Consumer‐driven labelling schemes such as Fairtrade and the Forest Stewardship Council, are based upon several assumptions of consumer decision making and behaviour. This study aimed to test the validity of some of these assumptions, including the belief that consumers are acting ‘on behalf’ of workers and communities in economically developing countries by supporting fair and ethical trade. It examines the political motivations underlying ethical consumption, such as its relationship to other forms of political activism, reasons behind high purchase frequency and how existing values interact with consumption choices. Drawing upon the results of a series of six focus groups with 58 participants and a nationally representative panel‐based survey of 1014 Australian consumers, this paper argues that many of the factors involved in consumer decision making are inconsistent with the assumptions made by private economic governance schemes in attempting to harness consumer power, calling into question the effectiveness and legitimacy of such schemes. However, by tailoring the marketing strategies to different types of consumers, along with suppliers and retailers, these schemes can potentially increase their effectiveness.     

New insights into emotion valence and loyalty intentions in relational exchanges

This research examines how emotion valence and future intentions arising from relational exchanges with a service firm depend on a consumer's level of goal attainment and locus of causality (firm vs. self) of relational outcomes. Drawing on the theories of goal‐directed behavior and agency of causation, this study hypothesizes that levels of goal attainment and locus of causality influence the generation of positive emotions (gratitude), negative emotions (grudge and guilt), relational mediators (trust and commitment), and subsequent future intentions to remain loyal to the firm. Based on a controlled experiment with 284 subjects in a consumer‐determined relationship setting, the research finds that emotion valence and future loyalty intentions are contingent upon the fulfillment of relational objectives of individual consumers and the agency of causation for the outcome of the relational exchanges. In doing so, this study delineates the conditioning mechanism that directs how emotion valence influences behavioral intentions. The study contributes to the consumer behavior and services marketing literatures on consumption‐based emotions and has significant practice implications for relational behaviors.     

Does Consumer Well‐Being Affect Hedonic Consumption?

This article presents a theoretical model that reveals how consumers’ long‐term subjective well‐being (SWB) influences their spending on hedonic products. Using the longitudinal data from a large national panel survey, the study found that consumers’ SWB influences spending on hedonic products via the mediating effects of their positive interpretation of life circumstances and broadened set of activities resulting from positive emotions. The results are explained using cognitive tuning theory and broaden‐and‐build theory and have implications for hedonic products providers in terms of who their target audience is and how demand for their products is generated.     

To tell or not to tell? The roles of perceived norms and self‐consciousness in understanding consumers' willingness to recommend online secondhand apparel shopping

Secondhand apparel shopping resides in a domain characterized by used goods traditionally associated with financially marginalized consumers. Acknowledging the elusive psychological barriers associated with preowned apparel, this study explores mechanisms that facilitate consumers' willingness to recommend online secondhand apparel shopping. Results from three experimental studies and a cross‐sectional survey of online secondhand shoppers in the United States reveal that hedonic and ethical benefits influence recommendation behavior via perceived norms, whereas economic benefit directly influences consumers' willingness to recommend. Moderated mediation analyses further demonstrate that self‐consciousness alters the strength of the indirect effects, such that consumers with lower self‐consciousness displayed greater willingness to recommend compared to highly self‐conscious consumers. Findings contribute to a greater theoretical understanding of the roles perceived norms and self‐consciousness play in facilitating or inhibiting recommendation behavior in a context that implicitly involves self‐disclosure of one's secondhand purchase behavior. Managerial implications offer insights on salient benefits that can be leveraged to influence word‐of‐mouth recommendation.     

When the purpose lies within: Maximizers and satisfaction with autotelic choices

Are maximizers less satisfied with their choices than satisficers? This research provides a novel perspective on this question by distinguishing between two types of consumer goals: autotelic, when choice is a goal in itself, and instrumental, when a choice is a means to achieving other goals. Study 1 showed that maximizers value autotelic experiences more than satisficers. Study 2 experimentally manipulated the choice goal and found that maximizers compared to satisficers experience higher choice satisfaction when the choice goal is autotelic rather than instrumental. Additionally, evidence is provided for the underlying mechanism (perceived ease of choice) as well as downstream consequences (consumers’ willingness to pay for their chosen option). These findings advance a conceptualization of maximizers as consumers seeking self-contained meaning in choice and provide new insights into the relation between maximizing and choice satisfaction. Theoretical and practical implications for consumer decision-making are discussed.     

Gulf Arab E‐Business Environment: Localization Strategy Insights

The Gulf Arab region, particularly Qatar and the United Arab Emirates (UAE), took significant steps toward adopting e‐business and is poised to become a significant online marketplace. The region has a number of vital ingredients that could make it an e‐commerce powerhouse; however, e‐commerce has not reached its full potential. In this article, the authors explore the e‐business environment in the Gulf Arab region and shed light on some of the opportunities and challenges that are shaping and restricting e‐business infiltration. The article places greater emphasis on the idea of localization and how it may impact consumer behavior and expansion of e‐commerce. We argue that by increasing the focus on culturally customized online content by considering country‐level cultural, geopolitical, and linguistic factors, this region could be lucrative for companies looking to attract online consumers. © 2015 Wiley Periodicals, Inc.     

Hear what I appreciate: activation of consumption motives for healthier food choices across different value segments

Abstract

This study represents ‘nudging’ interventions aiming to promote healthier food choices by altering the environment where choices are made, without price incentives. The study focuses on the activation of a consumer’s different consumption motives immediately prior to making food choices, thereby drawing a direct goal-priming approach that is postulated to stimulate congruent behaviours. The twofold purpose of this experimental research is to (1) evaluate the usefulness of direct goal priming when aiming at healthier food choices and (2) to identify the boundary conditions that either favour or inhibit the emergence of motivational priming effects. This purpose contributes to the literature on consumer health behaviour in two ways. First, it reveals new motivational origins for health-goal priming effects. Second, it gleans unprecedented empirical evidence for the moderating capacity of consumers’ values. Direct priming of a health goal proved to be effective in steering consumers towards healthier food options. Surprisingly, however, responsibility and status primes also led to an increase in choices of healthy food products. Moreover, a moderation analysis showed that the consumer’s values (achievement, conservation, and universalism) play an important role in how goal priming works. Thus, the success of priming greatly depends on the underlying values of the consumers.     

Developing A Framework for EthicallyQuestionable Behavior in Consumption

In light of the growing interest in "ethically questionable" consumer behavior, this study explores possible explanations of the occurrence of such behaviour, and subsequently develops a theoretical framework. The study is based upon data collected from 72 U.K. consumers, acquired from a projective approach with scenarios. Taking the theory of planned behavior (TPB) as an initial analytical framework, attitude, social influence, opportunity(as perceived behavioral control in TPB) and perceived unfairnessare identified as the antecedents of ethically questionable behavior (EQB). Social influenceis extended to include a broader range of external influences from subjective norm in TPB. Opportunityis considered to represent an aspect of perceived behavioral control as available resource to engage in EQB. Perceived unfairnessis presented as an additional component and refers to the extent to which an actor is motivated to redress an imbalance that is perceived as unfair. Binary logistic models suggest that attitudeand social influenceconsistently impact on EQB, as TPB would predict. Analysis of variance suggests that perceived unfairnessand opportunity, though context specific, also show signs of significant influence on the acceptance and practice of this behavior. Additional to the construct of TPB, this study develops the dimension of perceived unfairnessin the context of EQB decision-making. In the context of TPB, it provides further insight into our understanding of EQB, helping to provide a theoretical framework.