So happy for your loss: Consumer schadenfreude increases choice satisfaction

Consumers often feel schadenfreude, an emotion reflecting an experience of pleasure over misfortunes of another. Schadenfreude has found wide use in advertising, but its actual consequences for consumers have not been thoroughly documented. The present research investigates the effect of schadenfreude on consumers' satisfaction with choices they have made. Building on the feelings-as-information theory, the authors posit that consumers take their positive feelings of schadenfreude over another's unrelated bad purchase as positive information about their own choices, and through such misattribution become more satisfied with their own choices. Three experiments show that feeling schadenfreude over another consumer's bad purchase makes consumers more satisfied with their own choices (Study 1), regardless of whether the other's bad purchase is in the same or in a different product category as one's own choice (Study 2), but only so long as consumers are not aware that they are engaging in misattribution (Study 3). The present research contributes to the literature on schadenfreude and feelings-as-information theory. Its findings may be used by marketers aiming to exert an unconscious influence on consumer satisfaction.     

How income shapes moral judgments of prosocial behavior

The current research extends past work on how consumers (as “observers”) view ethical choices made by others (“actors”). Using a person-centered approach to moral judgments, we show that consumers are judged differentially, based on their income, for engaging in certain prosocial behaviors. Nine studies demonstrate that engaging in the same prosocial behavior, such as volunteering, leads to different responses depending on whether the actor earns income versus receives government assistance. Consistent with our theorizing, we find that aid recipients are given less latitude in how they spend their time than those earning an income and are scrutinized to a greater degree for their choices because people believe their time would be better spent seeking employment. Consequently, the lower moral judgments of aid recipients who choose to volunteer (vs. income earners) are driven, at least in part, by the anger observers feel about the perceived misuse of time. Additional information or cues about employment efforts or work inability attenuate these judgments. Importantly, we document implications for support for federal spending on welfare programs.     

Payment method and perceptions of ownership

How consumers pay influences how they feel about a transaction. In particular, paying by card has been argued to have an effect on the perception of cost, making it less salient and painful. We propose and show that payment method also influences how consumers feel about the acquired good. Specifically, we focus on effects of the payment method on psychological ownership, i.e., the perception of an object as “mine.” We propose that cash payment results in stronger psychological ownership because it influences the extent of perceived investment in an object. We provide evidence for the proposed effect from field and laboratory settings. Results of a longitudinal exit survey and an experiment show that cash payers report higher levels of immediate psychological ownership than card payers. However, this effect seems to depend on the meanings associated with a payment method. Asian students (who associate credit card payment with investment and debt) do not exhibit this effect. Moreover, the initial boost in psychological ownership seems to be comparably short-lived. While those paying in cash experience no further increase in psychological ownership over time, those paying by card do.     

How in-store educational and entertaining events influence shopper satisfaction

While recent years have seen an increased use of educational and entertaining events within the store environment, little seems known about how consumers value such events. This study investigates how the staging of education and entertainment-focused in-store events impacts on consumers’ value perceptions, arousal levels and store satisfaction. It is hypothesized that such events have a positive effect on store satisfaction but that their effects are moderated by a shopper’s motivational orientation. Findings from a scenario-based experiment among 786 shoppers from two retail categories (hardware and computer stores) provide support for this. The findings show that task-oriented consumers derive more value and satisfaction from an education-focused event than from an entertainment-focused event, while recreation-oriented consumers appreciate either type of event. The study findings imply that providing education themed events is a safer option for retailers than providing entertainment-focused events because education satisfies a wider range of shopper needs. Shoppers overall derive pleasure from entertainment but task-oriented shoppers tend to also see it as a hindrance to the convenience of shopping, with the result that for these shoppers the hosting of entertainment-focused events may result in reduced store satisfaction levels.     

Systematic Distortion:

Most marketers of food products feel that they know their target market in terms of how customers evaluate their product. Unfortunately, marketers may not know as much as they think the do! For some product groups, consumers may evaluate products and their characteristics differently from what is expected. Consumers may actually distort or bias their evaluation of food products in the marketplace. This article identifies a problem that may be costing marketers of food products thousands or even millions of dollars a year without their knowing it. The results of this study suggest that consumers may distort their evaluation of cereal products on the basis of beliefs about how certain product attributes should go together. Important implications and recommendations are discussed to aid marketers of food products address what is referred to as "systematic distortion."     

Social Networks and Credit Card Overspending Among Young Adult Consumers

Research that has looked at the reasons why young individuals overspend using their credit cards has not paid attention to the perceptions that they have about important others' credit card debt, their expectations as to how much to spend when they consume in the presence of them, and how the strength of the social relationships within their social network potentially influences the extent to which they overspend using their credit cards. A survey of 225 US university students composing a culturally diverse sample revealed that these social norms and network variables have interactive effects on credit card overspending. Specifically, the results show that the perceptions that young adult consumers have about important others' credit card debt impact their overspending using credit cards when they feel that they are expected to consume at the same level as important others in shared experiences, and when they are strongly connected to these individuals.     

Creating Shopper Value: Co-Creation Roles,In-Store Self-Service Technology Use,and Value Differentiation

This study examines how retailers can use self-service technologies (SST) to increase shopper satisfaction. Using a survey of 188 consumers of a new self-service kiosk launch within a convenience-store (c-store) setting, we examine how such retailers might influence shopper's perceptions of value by better involving customers in the service delivery experience. Our proposed model links classic service operations and marketing design insights to the service-dominant logic perspective of service value co-creation. We find that shoppers perceive enhanced value creation from the new SST when they feel comfortable in their roles and the surrounding service design supports those roles.     

What factors determine e-satisfaction and consumer spending in e-commerce retailing?

Evidently, the Internet has resulted in a fundamental shift in retailing practice, creating a shift in both consumer and business behavior, which has been compared to that of the Industrial Revolution. The purpose of this paper is to analyze customer satisfaction in e-commerce market. In particular, we determine the factors that affect customer e-satisfaction and the relationship between customer satisfaction and consumer spending in e-commerce retailing. We focus on how American based e-commerce firms are impacted by these developments and how marketing practices have reflected the developing e-commerce situation. The results show that customer satisfaction does have an impact on consumer spending in American based e-commerce retailers. Further, the relationship between customer satisfaction and consumer spending is positive, where higher e-satisfaction results in more spending in e-commerce. The results also show that there is a direct relationship among e-service quality, e- satisfaction and e-loyalty in terms of online spending by consumers. However, the analysis shows that e-commerce still faces challenges compared with traditional offline retailers since customers cannot feel and try the products, and may end up choosing the products that they do not want.     

Store attributes leading customer satisfaction with unplanned purchases

Understanding which specific factors of retail stores’ offering affect unplanned buyers’ satisfaction may be of great interest to store managers as they could set ad hoc strategies to target these consumers and establish long-term, profitable relationships with them. Satisfied unplanned buyers could indeed return to the store where they purchased their unplanned item(s) and/or positively talk about it with other customers. Nevertheless, we still know very little about such factors. To close this gap, this research gathered survey data on consumers’ store satisfaction and perceptions of store attributes in Spain during two time periods: in 2008, when the crisis was barely noticed by Spanish consumers, and five years later, when consumers were experiencing this economic situation. The results obtained evidence how grocery retailers can respond to customers’ awareness of the crisis by providing some managerial recommendations for bolstering satisfaction in consumer segments with diverse levels of unplanned buying behavior.     

Adolescent consumers: reaching them,border crossings and pedagogical challenges

Consumerism is part of living in the contemporary post‐modern world. It is claimed that schools and consumer education have a rather marginal impact on the consumer behaviour of young people. This qualitative study explores adolescents’ ways of consuming in three different worlds: home, school and peer groups. The aim is to understand how the adolescents experience border crossings between these worlds. What do they think about consumerism and consumer education? Finally, the pedagogical challenges of consumer education are discussed. The qualitative data was collected through mind maps, written questionnaires and semi‐structured group interviews. Qualitative content analysis was used to analyse the data. The data was collected from 59 teens (between 14 and 15 years of age) from Vantaa, Finland. According to the results, the adolescents’ way of consuming in each world differs from each other. However, border crossings occur with natural strategies and smooth transitions. The adolescents feel that ‘real’ consumerism does not begin until adulthood. Then, it is time to act like responsible consumers. Their motivation to study consumer issues at school is poor, because they feel the substance of consumer education not corresponding to their lives. Because of this, consumer education needs pedagogical renovation based on the needs of the adolescents and the special features of their consumerism.     

Should Cookie Monster adopt a healthy lifestyle or continue to indulge? Insights into brand icons

Developing a brand icon has been a way for marketers to humanize and forge relationships with consumers. Icon development takes time. During this time, marketers have to face how much they stay true and consistent with their icons and how much they allow their icons to adapt to cultural changes in the marketplace. Little is known about how consumers respond to changing icons, and even less is known about whether there may be certain consumer groups that are more or less receptive to such changes. Four experiments and qualitative interviews were undertaken to gain insights into these issues. People who have a low need to belong were most impacted by changes in the icon, with effects most evident among consumers with a fearful attachment style. Feelings of rejection were found to amplify these effects. These findings have implications both for theory and practice.     

Share of wallet in retailing: the effects of customer satisfaction, loyalty cards and shopper characteristics

In retailing, consumers typically patronize multiple outlets. Thus, an important issue is why consumers vary in how they divide their purchases across outlets and how outlets can get a greater share of consumer expenditures. Two potential avenues for increasing customer share are to raise customer satisfaction, and increase repeat purchase through loyalty cards. This study examines the effects of customer satisfaction and loyalty cards as well as consumer characteristics on customer share spent on the primary grocery store. The findings suggest that customer satisfaction has a positive, albeit modest, effect on share while consumer economic shopping orientation has a negative direct effect on share. The economic orientation of shoppers, their felt importance of a personal relationship with store personnel, and the level of their aggregate purchase volume moderate the effect of satisfaction on customer share. Finally, the results provide mixed support for the impact of loyalty cards on customer behavior.     

Social marketing and consumers’ experience of lipophobia

Modern societies are lipophobic: they express a deep anxiety about fat and fatness. On the other hand, the public discourses about health and well being, though biased towards lipophobia, are far from unanimous. The general question is how consumers experience and negotiate contradictory messages of hedonism and ascetics from commercial and governmental agents? This study more specifically examines the hypothesis that the governmental campaigns and official messages mediated through TV, newspapers and other media are largely failing their target, since they tend to have the biggest impact on people, that do not have a serious weight problem, but who nevertheless perceive themselves to be overweight. This is investigated through an adapted use of the Zaltman Metaphor Elicitation Technique approach with 20 younger female informants as well as a set of interviews with selected medical and political experts and representatives of consumer groups. The results provide a culturally rooted image of consumers’ fat intake and dietary practices as well as an attempt to de‐stigmatise consumers’ body imagery, informing future food policies and the food industry's satisfaction of public and private interests in consumers’ dietary patterns. This ends up in a critique of a certain approach to social marketing in the food domain. Rather than focusing on informational campaigns spreading messages that are already known to most people, more efforts should be put into the basic build‐up of a better general food culture – one that stresses quality over quantity and which is lipo‐conscious rather than lipophobic.     

Illusion of safety: How consumers underestimate manipulation and deception in online (vs. offline) shopping contexts

Online commerce changes how consumers shop for products and services—while also giving firms more control over consumers' shopping experience, more access to their information, and leading more firms to use these platforms to their financial advantage. In this research, I examine consumer perceptions of firms when they shop for products and services online (vs. offline), to determine whether consumers feel firms might use certain kinds of manipulative and deceptive tactics against consumers. Results show consumers believe firms are less likely to use manipulative and deceptive practices to increase consumer spending, when they shop online (vs. offline) for products and services. These findings remain consistent despite key individual differences (in ethnicity, gender, age, and time spent online). This research also demonstrates how certain cues can make consumers more (vs. less) suspicious of firms when they shop online and discusses the implications these findings have for consumer financial welfare.     

How green is your packaging—A comparative international study of cues consumers use to recognize environmentally friendly packaging

Consumers have grown increasingly aware of the impact of packaging on the environment. Therefore, interest has grown in more environmentally friendly packaging, but we wondered how consumers recognize ‘green’ as distinct from ‘grey’ when evaluating packaging. We asked over 3,000 respondents from Germany, France and the United States how they recognize environmentally friendly packaging. To solicit responses that we may not have anticipated, we used an open‐ended format, which we then followed with a closed‐ended format so that we could compare the two sets of responses. Not surprisingly, in both sets of responses, we found labelling to be the attribute consumers rely upon most, as well as evidence of misleading labels. We also found consumers in Germany and the United States relied on information on the packaging and named searching for information as one of their preferred ways to decide whether packaging is environmentally friendly. French consumers seemed less trusting of published information and more trusting of the look and feel, especially the material, of the package. Our results point to the importance of cultural influences in the acquisition of perceptual cues by the consumer.     

Do brands benefit consumers?

Advertising exists to communicate information about, and promote, brands—using ‘brands’ in the broadest sense. Brand owners, it might be believed, are thereby promoting their own interests. This paper explores the extent to which consumers benefit. Brands provide economic value for money, functionality in developing the requisite quality of products to solve consumer problems and psychological satisfaction. Thus functional benefits are intrinsic to the brand and its component products, psychological benefits are in the mind of the consumer and economic benefits relate to the exchange transaction. Brands are diverse, offering different benefits in different ways to different consumers at different times. Any aggregation of brand (dis)benefits therefore needs to be treated with caution. The picture is not wholly positive and consumer concerns with branding need to be factored in. The defence is the marketplace itself: consumers are free to choose. Retailer brands meet the demand, where it exists, for alternatives to manufacturer brands. Some consumers are undoubtedly confused for part of the time but branding is a long-term investment. Manufacturer brand leaders fifty years ago are brand leaders today. They would not exist at all if enough consumers did not continue to buy them.

This article considers these consumer concerns alongside the arguments for brands, except for the last (values) which is outside its scope. In general, the economic case today is secure even though earlier economists considered brands restricted competition. The bottom line of any remaining concern is whether consumers are satisfied that brands provide value for money. If consumers feel satisfied, then they are satisfied whether or not others think they should be. General consumer satisfaction with brands' value for money is none the less an inference drawn from the literature and analysis. Similarly, functional and psychological benefits appear to outweigh disadvantages but empirical research is needed to establish the extent of consumer (dis)satisfactions.     

Building the bottom line by developing the frontline: Career development for service employees

Service firms must remember that the way they treat their employees is exactly how those employees will, in turn, treat customers. As such, taking good care of frontline personnel should be a top management concern. One way that service employees can be shown they are valued members of the organization entails the implementation of thoughtful and organized career development programs, initiatives which help increase employees’ job satisfaction and feelings of empowerment in their customer-facing roles. Before they can become enthusiastic about meeting the needs of their customers, employees have to feel that their own needs are being met within the organization. In this regard, firm investment in frontline employee career development programs will be money well spent: they are capable of reducing employee turnover and increasing customer satisfaction, loyalty, and profitability. This article provides a conceptual model of career development which should prove useful to service managers in evaluating their own career development efforts. Also presented herein is a framework for tying together many disparate areas of career development that have heretofore been handled separately in the services literature.     

How do consumers know which brand is the market leader or market pioneer? Consumers' inferential processes,confidence and accuracy

Prior research has suggested that the brand consumers believe is the market leader or market pioneer can earn positive feedback for these achievements. The key question is how do consumers form these beliefs? This research examines the sources of information and cognitive processes that consumers utilise when determining which brand in a particular product category is a pioneer or market leader. These processes of source identification - including memory trace, schematic inferencing, direct-cue retrieval, and guessing – are applied in this brand characteristic context, and measured in terms of their relative frequency of occurrence, degree of confidence from each process, and accuracy of each process. Consumers may feel varying degrees of confidence in the different types of inferential processes, and these different processes may actually result in varying degrees of accuracy.

Results show that consumers typically evoke "schematic inference" as a rationale for their identification of a given brand as having a category characteristic. Those who use memory trace, however, are particularly confident that they have identified the true category characteristic, but are particularly inaccurate in such identification for the pioneer brand. These findings are discussed in the broader context of source inferential processes and their importance to marketing strategy.     

Persuasive Charity Appeals for Less and More Controllable Health Causes: The Roles of Implicit Mindsets and Benefit Frames

This research investigates whether donors' beliefs in changeability influence the persuasiveness of charity ads for less and more controllable health conditions. Across three studies and using different health conditions, we show that fixed-mindset consumers' beliefs about immutability lead them to donate more to less (vs. more) controllable causes. The results show that this effect is driven by their tendency to blame people with more controllable health conditions. Conversely, controllability does not influence consumers with growth mindsets, who believe in the changeability of health conditions. Moreover, we examine benefit framing as a potential persuasive factor encouraging donations of consumers with growth mindsets. Specifically, we find that in less controllable cases, consumers with growth mindsets are more persuaded to donate by other-benefit appeals (focusing on how donating enhances others' lives and makes others feel better); in more controllable conditions, they are more persuaded by self-benefit appeals (focusing on how donating enhances their own lives and makes them feel better). The perceived efficacy of donation drives this effect. Meanwhile, consumers with fixed mindsets are more willing to donate to less (vs. more) controllable causes regardless of benefit frames used in the charity ad. This research offers managerial implications for advertisers and marketers.     

Consumer coping strategies: a study of consumers committed to eating local

This paper deals with consumer coping strategies when consumers experience difficulties in implementing an innovation. The particular setting for exploring this issue is a group of consumers in Michigan who are committed to eating local. The paper explores how these consumers cope or balance their commitment to eating local with the constraints they face on buying and preparing local food Following a literature review of coping strategy and consumer coping strategies in relation to innovations, the paper presents the results of three focus groups conducted with members of a Student Organic Farm, a food cooperative and a Slow Food Convivium. The consumers we interviewed mostly adopt problem‐centred, confrontative strategies: they change their food‐consumption habits including shopping, purchasing, cooking, storing and obviously, eating. None of these changes are easy to implement, and most require re‐allocations of time as well as trade‐offs to overcome time and cost barriers. In return, some of these consumers feel empowered. This study allows us to offer a working hypothesis that the process is dynamic: the more committed consumers are, the more they adopt problem‐centred, confrontative strategies and forget more fatalist emotion‐centred or avoidance strategies. These findings contribute to literature on consumers' coping strategies and suggest future research avenues.