The etiology of the frugal consumer

This study examines several psychological factors hypothesized as antecedents of frugality. Although external forces, such as downturns in economic activity, can promote frugal behavior, it is also likely associated with a syndrome of individual differences that are independent of economic conditions. These include values, personality characteristics, and other consumer characteristics. Our study used data from 256 U.S. consumers to test hypothesized relationships between frugality measured as a personality- or lifestyle-type construct characteristic embedded in the social psychology of consumption. We identified four key constructs as likely antecedents of frugality: materialism, status consumption, brand engagement, and consumer independence. The results showed that frugal consumers are less materialistic, less status conscious, and less involved with brands than other consumers, but are more independent from the opinions of others in their consumer decision making.     

An examination of the values that motivate socially conscious and frugal consumer behaviours

This article extends social psychological research on the motivations for sustainable consumption from the predominant domain of ecologically conscious consumer behaviour to socially conscious and frugal consumer behaviours. A UK‐based survey study examines relationships between socially conscious and frugal consumer behaviours and Schwartz's value types, personal and socio‐political materialism, and demographics among the general public. Socially conscious consumer behaviour, like its ecological counterpart, appears to be an expression of pro‐social values. In contrast, frugal consumer behaviour relates primarily to low personal materialism and income constraints. As such, it does not yet represent a fully developed moral challenge to consumerism.     

Assessing demand reduction measures for rhino horn consumption

A review of studies that segmented consumers based on their willingness to consume rhino horn are given to identify the various motivational drivers and deterrents of illegal wildlife consumption in China and Vietnam. Medicinal motivations are the most significant stimuli for both Vietnamese and Chinese consumers who believe that the horn treats ailments. A review of campaigns that were developed to generate an awareness of the plight of this endangered species is conducted to highlight the problems of the celebrity-product degree of fit and eclipsing in the advertisements. We recommend that additional consumer behavior research on demand-reduction strategies for rhino horn should examine gateway behaviors that initiate consumption; evaluate the viability of diverting demand to substitute products (e.g., synthetic alternatives); investigate the counterfeit market for rhino horn and draw analogies from anticounterfeiting messages to decrease demand for an illicit product; and employ benchmarks to implement and assess the validity of campaigns targeted at Asian consumers to decrease demand. A few research methods are suggested based on the recommendations for future research.     

If all their products seem the same,all the parts within a product seem the same too: How brand homogeneity polarizes product experiences

Many different factors affect brand homogeneity, including the different products associated with a brand, how they are made, and how they are branded. How does the perceived homogeneity of a brand’s offered products, in turn, affect consumers’ experiences with those products? Nine experiments reveal that consumers have more polarized judgments of product experiences when the sampled products are perceived to belong to more homogeneous brands. When a consumption experience is positive, the consumer has an even more positive experience when they think the sampled product came from a homogeneous brand; however, when a consumption experience is negative, the consumer has an even more negative experience when they think the sampled product came from a homogeneous brand. This polarization occurs because the individual product inherits the brand-level quality of perceived internal consistency—when a brand seems homogeneous (i.e., consisting of homogeneous products), consumers also perceive any individual product from the brand as similarly consisting of homogeneous ingredients or parts. We suggest that brand homogeneity leads to selective processing of individual product experiences, which makes products seem more coherent, products rated faster, and ratings of different product ingredients or features more highly correlated. The perception that all of the parts within the individual sampled product are homogeneous in quality polarizes judgments of the product experience.     

Payment formats and hedonic consumption

Payment formats have many important influences on consumer behavior. However, few studies have examined how the payment format affects hedonic consumption. This study explores how the transparency of the payment format (e.g., bonus points vs. cash) influences consumers’ willingness to pay, budget assignments, and consumption choices through differences in their perceived pain of purchasing (exchanging) hedonic and utilitarian options. Specifically, consumers who pay with highly transparent payment formats (e.g., cash), compared with consumers who pay with less transparent payment formats (e.g., store points, bonus points, and gift certificates), are willing to pay less, assign a lower budget, and are less likely to choose hedonic products. The perceived pain of purchasing (exchanging) a hedonic product plays an important mediating role on the influence of the payment format on hedonic consumption. However, the perceived pain of purchasing (exchanging) a utilitarian option plays a parallel mediating role only when people have paid for the less transparent payment format (e.g., buying store points) rather than when they accumulate the points through previous consumption events. The research findings provide insights that can benefit both theory and practice.     

When does electronic word-of-mouth matter? A study of consumer product reviews

Online consumer product reviews, a form of electronic word-of-mouth (eWOM), have attracted increased attention from researchers. This paper examines the persuasiveness of eWOM. Drawing on regulatory focus theory, the authors propose that the consumption goals that consumers associate with the reviewed product moderate the effect of review valence on persuasiveness. Data from lab experiments and actual online retailers suggest that consumers who evaluate products associated with promotion consumption goals perceive positive reviews to be more persuasive than negative ones (i.e., a positivity bias). Conversely, consumers who evaluate products associated with prevention consumption goals perceive negative reviews to be more persuasive than positive ones (i.e., a negativity bias).     

Financial Disclosure and Customer Satisfaction: Do Companies Talking the Talk Actually Walk the Walk?

Previous research demonstrates that consumers support firms’ CSR activities, and increasingly demand socially responsible products and services. However, an implicit assumption in the extant literature is that the purchaser and the consumer of the product are the same person. The current research focuses on a unique form of socially responsible consumption behavior: gift-giving. Through 30 depth consumer interviews, we develop a typology of consumers based on whether consumers integrate CSR-related information into purchases, and whether the purchases are for themselves or for others (i.e., gifts). We find that in some instances, consumers actively avoid purchasing products from socially responsible organizations and do so with the intention of managing their impressions with the gift recipient. This is counter to previous research that suggests consumers often choose to make socially responsible consumption decisions in efforts to satisfy self-presentation concerns. In addition, the decision to engage in socially responsible consumption for oneself but not for others was motivated by a variety of factors including the role of the recipient and a concern over the credibility of socially responsible gifts. Finally, some participants who do not incorporate CSR into their own personal consumption chose gifts based on a variety of CSR activities in an effort to build awareness for socially responsible organizations.     

The Effect of Overconfidence and Underconfidence on Consumer Value

Although the effect of knowledge miscalibration (i.e., the inaccuracy in subjective knowledge relative to objective knowledge) on consumer purchase decisions has been investigated, its effect in the usage stage of consumption is little understood. This paper examines the effect of knowledge miscalibration in terms of both overconfidence (i.e., when subjective knowledge is inflated) and underconfidence (i.e., when subjective knowledge is deflated) on the dimensions of consumer value (i.e., efficiency, excellence, play, and aesthetics). The paper makes the case that overconfidence and underconfidence should be treated separately as they trigger different consumption consequences. Several hypotheses are tested through two studies: a covariance‐based study (Study 1) and an experimental study (Study 2). In Study 1, overconfidence and underconfidence are measured, while in Study 2 they are experimentally manipulated. Findings of both studies show that underconfidence negatively influences efficiency, excellence, and aesthetics, and overconfidence negatively influences play. Also, Study 1 finds a negative effect of underconfidence on play and Study 2 finds a negative effect of overconfidence on excellence and aesthetics. Findings reveal that knowledge miscalibration negatively impacts consumers’ usage experiences. This implies that in designing product or service experiences suppliers benefit from ensuring that consumers achieve a reduced level of knowledge miscalibration.     

Socio‐demographic basic factors of German customers as predictors for sustainable consumerism regarding foodstuffs and meat products

An important step in promoting sustainable purchase behaviour is to explore the understanding of responsible consumerism from the consumers’ point of view. For this purpose, a study among 1040 German consumers was carried out using a two‐pronged approach. First, open‐ended questions were used to explore the characteristics of sustainable food consumption in general as well as the willingness and meaningfulness of a low‐meat diet from the consumers’ point of view. After that the interactive structure behind the term was studied using a quantitative empirical method. As standard of evaluation the four underlying socio‐demographic factors gender, age, wealth and education are used. Apart from the consumers’ financial situation, the applied statistics show significant correlations of the propensity for sustainable consumerism to each of the above factors. Women, middle‐aged and well‐educated consumers show a greater tendency to purchase environmentally and socially sustainable products. Accordingly, the suitability of socio‐demographic factors is confirmed in this study. The open‐ended questions fathom what attributes consumers connect with sustainable food consumption, in particularly with regard to the consumption of meat. It is clear that attributes that affect consumers directly and attributes which can be directly influenced by their actions are better perceived by the consumer. Altruistic factors or abstract aspects of food consumption (e.g. climate protection) are generally of less significance. Conversely, factors which concern the value added chain, like for example, origin and processing, have priority. To conclude, the findings enable the identification of the variables determining the sustainability construct. This allows policy makers to develop customized incentive systems. Similarly, private sector stakeholders are enabled to adapt marketing activities and their product mix to consumer demands.     

Finding the Right Shade of Green: The Effect of Advertising Appeal Type on Environmentally Friendly Consumption

There are two forms of advertising appeals for environmentally friendly products and policies: those that provide consumer benefit (e.g., cost savings) and those that provide societal benefit (e.g., lower emissions). This research examines the role of decision-making and consumption contexts on the efficacy of each appeal. The results of three studies indicate that in contexts where consumers experience heightened public accountability they are more responsive to other-benefit appeals, and in more private settings they favor self-benefit appeals. We replicate this finding across multiple samples, product categories, and consumption and decision-making contexts. Our findings reconcile previously conflicting research on the efficacy of either appeal type and provide guidance for marketers seeking to promote environmentally friendly consumption.     

Exploring the determinants of the frugal shopper

Frugality reflects the degree to which one is both restrained in acquiring and resourceful in using products. It offers a vision of sustainable consumption slowing down the process of environmental harm. A number of antecedents to frugal shopping behaviour were investigated. Using a sample of experienced shoppers from Australia, market mavenism, shopping antipathy and age were found to be positively associated with frugality. By contrast, recreational shopping, intrinsic religiosity and social class were not significantly associated with frugality. These findings provide some insight into how frugal behaviour can be encouraged by governments and embraced by retailers.     

The Role of Ad‐Evoked Consumption Visions in Predicting Brand Attitudes: A Relevancy Principle Model

This study examined ad‐evoked consumption visions to argue that when people are concerned about consumption experiences, they consider consumption visions relevant in formulating brand attitudes. To the degree that consumers perceive consumption visions as relevant, they should significantly influence brand attitudes. This research proposed a relevancy principle model to show that three possible factors likely enhance the relevancy of consumption visions and thus increase their influences on brand attitudes: product characteristics (i.e., hedonic nature), ad characteristics (i.e., consumption ad copy), and consumer characteristics (i.e., processing styles).     

When consumers can return digital products: Influence of firm- and consumer-induced communication on the returns and profitability of news articles

The news industry is being massively disrupted by the digital distribution of news. Consequently, publishers have revised their business models and integrated pay-per-article options. To reduce pre-purchase uncertainty, consumers can use information from firm-induced (e.g., newsletters), or consumer-induced communication (e.g., likes). These communication activities avoid purchases with poor fit but also increase customer expectations. Consequently, their effect on sales, returns, and profitability is unclear. For digital products, these effects are even less clear because product quality is difficult to evaluate pre-purchase, and products can be returned at almost no cost, even after consumption. In this study, we investigate the effects of firm- and consumer-induced communication on digital returns in the context of news articles on a major online platform (Blendle). We rely on a multi-equation model to quantify the effect of firm- and consumer-induced communication activities (i.e., newsletter promotions sent out by the platform and consumer likes from readers) on sales and returns and calculate their profitability impact. Our results show that newsletters decrease returns but do not significantly affect sales. In contrast, consumer likes have a twofold effect by increasing sales and decreasing returns. A simulation shows that both newsletters and likes increase profitability and that likes have a higher potential. Our results offer much needed guidance for online aggregators of digital products (e.g., audiobooks, e-books or news articles), as well as for online publishers based on pay-per-unit business models.     

All eyes on you: The social audience and hedonic adaptation

Marketers have a keen interest in keeping customers happy past the point of product acquisition. However, consumer happiness with products typically declines over time, a process called “hedonic adaptation.” Understanding this process is essential for managing consumers' post-acquisition experiences, and yet marketers have not explored how the ubiquitous social environment influences hedonic adaptation. We explore the effect of a social audience (i.e., the presence of others and the perception that those others are noticing you) on adaptation to positive products using two real-world studies and one lab study. We show that a social audience can slow hedonic adaptation by cuing consumers to believe that others are admiring their product. This perceived admiration, in turn, helps consumers see the product through fresh, unadapted eyes. These findings help clarify the role of the consumption environment in adaptation, help explain why product happiness can vary by consumer over time, and show that the effects of social forces do not always occur at the moment of product acquisition.     

Female consumers׳ intention to be involved in fair-trade product consumption in the U.S.: The role of previous experience,product features,and perceived benefits

Fair-trade practices include paying fair wages, supporting participatory workplaces and environmentally sustainable production, and developing long-term and supportive buyer-producer relationships (Kunz, G. I. and Garner, M. B. (2011), Going Global (2nd ed.), New York, NY: Fairchild Books). Fair-trade is both a political movement organized around the theme of trade justice, and the practice of particular types of trading and production relationships (Mare, A. L. (2008), The impact of fair-trade on social and economic development: a review of the literature, Geography Compass, 2, (6), 1922–1942). The aim of this study was to examine female consumers׳ previous experience, product features and perceived benefits of fair-trade product consumption. Specifically, the study examined how previous experience or lack of experience in fair-trade product consumption influences female consumers׳ purchase decisions by considering the impact of product features and perceived benefits. Results indicated that consumers who did not have fair-trade products experience made their purchase decision based on traditional product features (i.e., style and new trends). On the other hand, consumers who had experience with fair-trade products more consider ethical responsibility (i.e., perceived consumer effectiveness) in fair-trade shopping. Implications and limitations were discussed.     

Is Online Word of Mouth Higher for New Models or Redesigns? An Investigation of the Automobile Industry

Changing consumer preferences, entry of new competitors with better products, and product improvements by existing competitors make new products a necessary investment for most companies. In addition to the investments in R&D and production of new products, firms also need to invest in advertising to promote them. The growing use of social media by consumers therefore makes online consumer conversations an attractive additional format for firms to promote products at a lower cost. This is particularly so in the automobile industry where advertising costs are very high. Whether consumers discuss a newly introduced product, and help to promote it, however, may depend on how new the product is. This is the question that we investigate in the context of the automobile category. Specifically, we examine whether online consumer conversations are more likely for new models (e.g., Chevy Volt introduced in 2010) or redesigns of existing models (e.g., the redesign of Chevy Impala in 2010). We use data from two online sites where consumers discuss automobiles – consumerreports.org and edmunds.com – for our analysis. Our empirical investigation also accounts for the effects of sales on word of mouth and the simultaneity between sales and word of mouth. Additionally, we also consider the effect of satisfaction on word of mouth and the endogeneity of satisfaction. Our results across two datasets suggest that redesigns stimulate significantly more conversations than new models. Managerial and research implications of the findings are discussed.     

The Interest of Consumers in Ecological Product Information Is Growing – Evidence From Two German Surveys

In a German survey from 1989, consumers showed less interest in information about ecologically relevant product attributes than could be expected after several years of vivacious discussion in the mass media about ecological problems associated with consumer products and consumer behaviour. However, a replication of the study in 1998 showed a considerable increase of consumer interest in such information. In particular, there is evidence that in comparison to common product quality information, on average consumers rate the relative importance of ecological product information higher, that consumers want product testing agencies to take into account more aspects of products that are related to ecology, that more consumers would prefer reliable standardized ecological information obtainable at the point of purchase, e.g., in the form of eco-labels, and that consumers view an increasing number of products as potentially affected by ecological risks. Finally, the results show that at least for some products, the scope of perceived ecological risks seems to have increased and that consumers generally are becoming concerned with harmful effects of the production and distribution of a product in addition to the effects caused by usage.     

Flying with a net,and without: Preventative devices and self-control

Excessive consumption of many vice goods (e.g., alcohol) has both possible immediate (e.g., a drunk-driving crash) and delayed (e.g., liver disease) negative consequences. This research models the consumption choices of a consumer population with heterogeneous impatience and varying degrees of sophistication in conjunction with both immediate and delayed consequences of excessive vice good consumption. We show that even when a preventative device (e.g., a designated driver) that could eliminate the immediate dangers is available for (almost) free, some consumers forgo it in order to try to use the immediate danger as a soft tool to regulate excessive consumption (e.g., “If I know I don't have a designated driver, then I won't drink too much.”). Surprisingly, this “flying without a net” is a successful strategy for some consumers, and we quantify when it is likely to be successful versus harmful. This counterintuitive result has many consequences; e.g., public policies that make the provision of preventative devices compulsory could increase consumer welfare under certain conditions but overall are not Pareto-improving. Likewise, advertising campaigns that exaggerate the likelihood of immediate dangers may be welfare decreasing despite their good intentions. In exploring the effect of our model on pricing of preventative device, we find that pricing is not monotonic in the probability of danger. We also show that consumer pessimism about self-regulation can induce consumers to experience a “boomerang effect” of overconsumption in the presence of a preventative device. Overall our research shows that the relationship between prevention and risk is not as simple as might be assumed in standard analyses and that marketers and public policymakers often need to consider the short-term and the long-term risks as well how prone the consumers are to temptation and how sophisticated they are in judging their temptation.     

Pleasure and the Control of Food Intake: An Embodied Cognition Approach to Consumer Self‐Regulation

Consumers try to avoid temptation when exposed to appetizing foods by diverting their attention away from their senses (e.g., sight, smell, mouthfeel) and bodily states (e.g., state of arousal, salivation) in order to focus on their longer term goals (e.g., eating healthily, achieving an ideal body weight). However, when not including sensations in their decision‐making processes, consumers risk depleting their self‐regulatory resources, potentially leading to unhealthy food choices. Conversely, based on the concept of “embodied self‐regulation,” the suggestion is made that considering bodily states may help consumers regulate their food choices more effectively. A new model is proposed that facilitates understanding observed consumer behavior and the success or failure of self‐control in food intake. It is argued that bodily states and sensory information should be considered when modeling consumer behavior and developing health‐related advocacy and communication campaigns. The model proposed here leads to new perspectives on consumer consumption behavior and health policy research and strategies.     

Decision-Making Strategies for the Choice of Energy-friendly Products

Although energy efficiency of many products has been improving constantly, residential energy consumption is not decreasing as much as desired. Therefore, the goal of the European Union (EU) and many other countries is to promote energy-friendly product choices (i.e., choice of products with low energy consumption). In a purchase situation, consumers are confronted with a wide range of energy-related information that can influence the decision-making process. Understanding how consumers reach a decision based on the information provided and identifying decision-making strategies that are beneficial or destructive in terms of energy friendliness is crucial for the improvement of existing energy-policy measures and, consequently, for the successful achievement of target energy saving goals. This paper provides insights from an exploratory eye-tracking study (N?=?59) investigating consumers’ decision-making process. Participants were required to identify the most energy-friendly television (i.e., the television with lowest energy consumption). Cluster analysis revealed three consumer segments with different decision-making strategies: the energy-directed lexicographic, unsystematic lexicographic, and unsystematic exhaustive strategies. The energy-directed lexicographic strategy resulted in 60% optimal choices in terms of energy friendliness, unsystematic lexicographic in 33%, and unsystematic exhaustive in 38%. No decision-making strategy resulted in 100% optimal choices in terms of energy friendliness. Findings emphasize that lexicographic strategies can successfully identify energy-friendly products when the correct information (i.e., actual energy consumption) is used. However, a lexicographic strategy can be very misleading and result in non-optimal choices in terms of energy friendliness when it is based on ambiguous information (i.e., energy efficiency information) that does not enable a conclusive decision. Further, this paper discusses implications for policy-makers and marketers for the promotion of energy-friendly consumer behaviour.