Decision neuroscience and consumer decision making

This article proposes that neuroscience can shape future theory and models in consumer decision making and suggests ways that neuroscience methods can be used in decision-making research. The article argues that neuroscience facilitates better theory development and empirical testing by considering the physiological context and the role of constructs such as hunger, stress, and social influence on consumer choice and preferences. Neuroscience can also provide new explanations for different sources of heterogeneity within and across populations, suggest novel hypotheses with respect to choices and underlying mechanisms that accord with an understanding of biology, and allow for the use of neural data to make better predictions about consumer behavior. The article suggests that despite some challenges associated with incorporating neuroscience into research on consumer decision processes, the use of neuroscience paradigms will produce a deeper understanding of decision making that can lead to the development of more effective decision aids and interventions.     

Conjoint models of family decision making

The objective of this research is to develop viable approaches to modeling joint decisions. Using conjoint-analysis-type preference data, three methods are developed to combine individual preferences to approximate joint preferences and predict joint decisions. The first is an equal weighting model, which is a simple average of individual members' part-worth utilities. The second is a relative influence model, which combines individual utility functions using a measure of derived influence. The third is a conflict resolution model, which combines utility functions using a measure of conflict. In addition to these three combination models, individual member models and a joint model based on the joint preferences are available.The application area in which the models are operationalized is family decision making. The decision involves choice of a job by MBA students and spouses at a major private university. The models are first calibrated using preference data on hypothetical jobs from MBAs, spouses, and couples and then evaluated on their ability to predict the actual job chosen.     

Intrafamily decision making in family planning

58 expectant couples were counseled about family planning postpartum and husbands and wives were asked to rank preference of methods. Husbands preferred IUDs (12%), the pill (7.6%), or diaphragms (8.2%). Wives preferred diaphragm (10%), foam (8%), jelly (8%), and IUDs (6%). The process of discussion was then charted. It was found that wives were more influential than husbands in the joint ranking process, which put IUDs 1st, followed by diaphragms and jelly. As discussion progressed, side effects became more important and the condom was selected as a compromise more often than any other method. It is suggested that marketing attempts for condoms emphasize the lack of side effects as well as promote the advantages to men.     

In search of fair trade: ethical consumer decision making in France

While the market for fair trade products has been growing in many countries, this paper examines the French market where fair trade remains marginal but is experiencing growth. Using a modified Theory of Planned Behaviour framework the research examines consumer intention to purchase fair trade grocery products in order to explain the pertinent decision‐making criteria of both consumers of and potential consumers of fair trade. Results reveal that concerned consumers should not be treated as one homogeneous group, rather, the distinct variations in the factors that influence their decision making must be considered when promoting, labelling and distributing fair trade products. Implications for both sustaining and developing the market for fair trade products in the future are highlighted and discussed.     

Celebrity influences on consumer decision making: new insights and research directions

ABSTRACT

Throughout human history, people have expressed admiration for heroes who possessed extraordinary abilities and achieved superhuman goals. For many, modern-day celebrities fulfil this role and are prominent in various marketing communications activities. This paper addresses the literature review gaps and provides an in-depth review of the psychological and social psychological perspectives which are relevant to the celebrity endorsement literature. The contributions of this paper consist of a detailed analysis of important types of consumer-celebrity relationships, key emotional drivers (e.g. envy and admiration) of celebrity influence and the development of an original conceptual model. The conceptual model pulls together the past research and identifies new research gaps, which synthesises different research perspectives and provides a sound theoretical basis guiding future researchers and marketing managers.     

Validation of Consumer Styles Inventory for consumer decision making styles

The Consumer Styles Inventory (CSI) developed by Sproles and Kendall, Journal of Consumer Affairs, 1986, 20: 267–279, is one of the most widely used instruments to classify consumers by their decision making styles. With changes in consumption culture attributable to the coexistence of global and local consumer culture in the past few decades, it is essential to reaffirm that the CSI measurement instrument is valid for contemporary consumers and can be applied in various contexts. This study, therefore, aimed to present a set of CSI validation procedures using contemporaneous participants and targeting two groups of participants in the United States. Two sets of exploratory factor analysis using the main data set (n = 390) were performed and confirmatory factor analysis was applied to the main data set and the cross-validation data set (n = 172). Results from both the exploratory factor and confirmatory factor analyses seem to validate the eight underlying consumer characteristics of CSI.     

Procedural learning,consumer decision making,and marketing communication

We examine the applicability of Anderson's (1982) procedural learning framework to consumer decision making within the context of how marketing communications influence people's procedural knowledge about selecting decision criteria for a buying decision. In particular, we explore the importance of explicit, conditional if-then statements (e.g., if you are choosing amongst ..., then you should ...) in which the recommended decision-making operation is compatible with prior procedural knowledge. We test this framework in an exploratory study on advertising effects on women's decision criteria for fitness centers.     

Capital structure decision making: A model for family business

Most theoretical and empirical studies of capital structure focus on public corporations. Only a limited number of studies on capital structure have been conducted on small-to-medium size enterprises (SMEs), and this deficiency is particularly evident in investigations into factors that influence funding decisions of family business owners.Theory indicates that there is a complex array of factors that influence SME owner-managers' financing decisions. Recent family business literature suggests that these processes are influenced by firm owners' attitudes toward the utility of debt as a form of funding as moderated by external environmental conditions (e.g., financial and market considerations).A number of other factors have been shown to influence financing decisions including culture; entrepreneurial characteristics; entrepreneurs' prior experiences in capital structure; business goals; business life-cycle issues; preferred ownership structures; views regarding control, debt–equity ratios, and short- vs. long-term debt; age and size of the firm; sources of funding for growth; attitudes toward debt financing; issues relating to independence and control; and perceived risk and attitudes toward personal risk.Although these factors have been identified, until now there does not appear to have been any attempts to develop empirically-based models that show relationships between these factors and family business owners' financing decisions. Utilizing theories derived from divergent disciplines, this study develops an empirically tested structural equation model of financing antecedents of family businesses. Participants of our study involved a random sample of 5000 business owners who were mailed a 250-item Australian Family and Private Business questionnaire developed specifically for this investigation.Notably, our findings reveal that firm size, family control, business planning, and business objectives are significantly associated with debt. Small family businesses and owners who do not have formal planning processes in place tend to rely on family loans as a source of finance. However, family businesses in the service industry (e.g., retailers and wholesalers) are less likely to use family loans as are those owners who are planning to achieve growth through new products or process development. Use of capital and retained profits is likely for family businesses planning to achieve growth through an increase in sales but less is likely for family businesses in the manufacturing sector and lifestyle firms. In addition, debt and family loans are negatively related to capital and retained profits. Equity is a consideration for owners of large businesses, young firms, and owners who plan to achieve growth through increasing profit margins. However, equity is less likely to be a consideration for older family business owners and owners who have a preference for retaining family control.Our findings suggest that the interplay between multiple social, family, and financial factors is complex. In addition, our findings indicate the importance of utilizing theories that also help to explain behavioral factors (e.g., owners' needs to be in control) that affect financial structure decision-making processes. Practitioners and researchers should consider the dynamic interplay among business characteristics (e.g., size or industry), behavioral aspects of business financing (e.g., business objectives), and financial factors (e.g., gearing levels) when working with and researching family enterprises.     

The vices and virtues of consumption choices: price promotion and consumer decision making

As consumers exhibit relatively more self-control over healthy products by limiting the purchase quantity of vice choices and buying more virtue choices to adhere to healthy-eating goals, a price promotion has a stronger effect on virtue than vice choices of healthy food. In contrast, consumers exhibit relatively less self-control over unhealthy products and evaluate price promotions as a persuasive temptation mechanism; thus, a price promotion has a stronger effect on vice than virtue choices of unhealthy food. The results of the empirical analyses provide support for these hypotheses.     

Competition and its influence on consumer decision making in social marketing

Abstract

This paper extends the largely conceptual understanding of competition in social marketing by empirically investigating, from a consumer perspective, the nature of competition and its influence on decision making at the individual level. Two phases of qualitative inquiry in Australia, comprising 30 and 20 semi-structured interviews, respectively, examined the role of competition in young adults’ decision to adopt and maintain help-seeking for mental ill-health. The findings from thematic analysis suggest that competition operates at both the behavioural and goal level to influence consumers’ decision to perform behaviour and that the types of competition in operation may vary from the adoption to the maintenance of behaviour. The findings are integrated into a framework that social marketers could employ to identify, analyse and address competition.     

Exploring the contextual and individual factors on ethical decision making of salespeople

This paper studies how salespeople make ethical decisions. For this purpose a structural model has been developed which configures how the organization's environment, the organizations's climate, and personality traits affect ethical decision making. Internal communication and the choice of a control system especially affect ethical decision making. Internal communication also affects the attraction of salespeople with unethical personality traits (Machiavellism), while the control system affects the ethical climate. Ethical climate and salespeople's personality traits also affect the ethical decision making. In fact the study shows that ethical decision making can be influenced by management.Willem Verbeke is assistant professor in marketing, School of Economics, Erasmus University, Rotterdam, The Netherlands. His research concentration is sales management.Cok Ouwerkerk is founder and director of the CSA, a consulting firm for statistical applications, in Mijnheerenland, The Netherlands. He has been involved in many research projects at different Dutch universities and firms.Ed Peelen is associate professor at the School of Economics, The University of Amsterdam, Amsterdam, The Netherlands. His research concentration is marketing management and logistics.     

Toward an integrated framework for online consumer behavior and decision making process: A review

This paper presents a comprehensive review of recent empirical studies dealing with online consumer behavior and decision‐making processes. To that end, the paper adapts and extends Engel, Kollat, and Blackwell's ( 1978 ) and Engel, Blackwell, and Miniard's ( 1986 ) decision‐making model as backdrop in the review of the literature. The vast majority of studies examine the link between external factors and one or more components of the decision‐making process. The findings of this study show a paucity of research on a number of components of decision making, as well as inconsistencies in the way the online environment is characterized. Finally, the findings show that student samples are prevalent among the studies identified and the research method is biased toward the survey method as opposed to experimentation. Discussion and conclusions are provided, and directions for future research are presented. ©2010 Wiley Periodicals, Inc.     

Understanding consumer decision making in grocery markets: does attitude-behaviour consistency vary with involvement?

The paper reports on an empirical study of purchase decision making in grocery markets. Against the central research question, 'Does decision making become more extensive with more involved product purchases?', measurements of attitude- behaviour consistency were made in three product fields which are known to engender significantly different levels of consumer involvement. The extended Fishbein model was used as the metaphor for purchase decision making and models were estimated for each product field using LISREL VII to determine the fit between product and normative beliefs, behavioural intention and actual purchasing behaviours. The results of our analysis are consistent with prior theory and support the hypothesis that the efficacy of the model in grocery markets increases as the purchase involvement increases. The implications for marketing communications within each market are discussed and the limitations of our research design are highlighted.     

The influence of gender and culture on Generation Y consumer decision making styles

Through the use of case studies of Cardiff (UK) and Charlotte (USA) this paper provides a comparative study of the retail structure of British and American cities. Three of the most striking contrasts can be seen in the intra-urban location of retail activity, the role of planned and unplanned shopping centres, and in the amount of retail space provision. Retailing in USA cities tends to be more decentralized, with a greater role for planned shopping centres and more retail space than in British cities. Reasons for this are explored.     

The impact of ethical concerns on family consumer decision‐making

Ethical consumerism and family consumer decision‐making, including the influence of children in this area, are spheres of consumer behaviour in which a substantial amount of academic research has already been undertaken. However, the crossover of these two areas is as yet under‐researched, as well as the level of pester power parents are subjected to from children aged 3 and under. This paper uses qualitative methods to investigate the issues surrounding the ethical consumer decision‐making process with families who have children aged 3 years old or under. This research found that the motivation to pursue an ethical lifestyle varied across the sample, but the emergence of an ‘inheritance factor’, where parents are awakened to ethical issues because of the birth of their child, was prominent. Other issues that transpired from this research include the prominence of ethical trade‐offs in consumer decision‐making, ethical choices as normalizing behaviour and finally the presence of pester power in the ethical context. Ethical consumerism strongly emerged as an integral part of the parent's identity construction, especially for the mothers as they struggled to adapt to their new roles. Further research delving into the role ethical choices have on identity construction and the parental response to pester power would be a valuable addition to the overall context of this research.     

Exploring the connection between frustration and consumer choice behavior in a dynamic decision environment

This research proposes that frustration during the purchase process for high‐technology durable goods has a significant effect on the probability that consumers will commit to a technology and make a purchase. In order to explore the effects of consumer frustration on the purchase process, a scale is developed that reveals that frustration in high‐technology decision environments is composed of two dimensions, processing frustration and frustration with the pace of technological change. These dimensions of frustration have a significant effect on consumer choice behavior. While processing frustration significantly reduces the probability of commitment to a technology, the probability of making a decision is significantly lower when consumers are frustrated with the pace of technological change. © 2004 Wiley Periodicals, Inc.     

基于消费者购买决策过程的出版社网络营销策略研究

本文以消费者行为研究为基础,分析了出版社网络营销的现状,构建了网络消费者购买决策过程模型,通过对网络消费者购买出版社产品与服务六个阶段影响因素与存在问题的调查,制定出相应的网络营销策略。     

Exploring the structure of ethical attributions as a component of the consumer decision model: The vicarious versus personal perspective

The managerial ethics literature is used as a base for the inclusion of Ethical Attribution, as an element in the consumer's decision process. A situational model of ethical consideration in consumer behavior is proposed and examined for Personal vs. Vicarious effects. Using a path analytic approach, unique structures are reported for Personal and Vicarious situations in the evaluation of a seller's unethical behavior. An attributional paradigm is suggested to explain the results. Joel Whalen is an Assistant Professor of Marketing at DePaul University, Chicago. He has published articles in Psychology & Marketing, Journal of Business Research, and Journal of Business Ethics. His research has been published in the proceedings of the American Marketing Association's Micro-Computers in Marketing Conference; Atlantic Marketing Association; the American Marketing Association Conference on Culture and Sub-Cultural Influences; Northeast Decision Science Institute, Southern Marketing Association, and Decision Sciences Institute. Robert E. Pitts, is Professor and Chair of the Department of Marketing and the Director of the Kellstadt Center for Marketing Analysis and Planning at DePaul University. He served as a member of the faculty of Jacksonville State University, the University of Notre Dame and the University of Mississippi. Dr. Pitts' research has appeared in numerous publications including the Journal of Marketing, Journal of Bank Research, Journal of Advertising, Journal of Consumer Research, Journal of Marketing Education, Journal of Business Research, Journal of Social Psychology, Southern Economic Review, Journal of Travel Research, Journal of Behavioral Economics, The Mid-South Journal of Economics, Psychology and Marketing, Marketing and Media Decisions and Journal of Insurance Issues and Practices. Dr. Pitts is the editor of Personal Values and Consumer Psychology (Lexington Publishers, and co-author of Bank Marketing, A Guide to Strategic Planning, and Effective Bank Marketing Issues, Techniques and Application. Over the past decade, Dr. Pitts has served as a consultant to such firms as General Motors Corporation, Congolium Corp-Kinder Division, National Standard Steel Corp, WalMart Corp Training Programs, Illinois State Chamber of Commerce and Council of State Chambers of Commerce. John K. Wong teaches International Marketing Management and Consumer Behavior at DePaul University. He served as a member of the faculty of the University of Missouri at Columbia and Washington State University. Dr. Wong's research has appeared in numerous publications including the International Marketing Review, Journal of Business Research, Journal of Ambulatory Care Management, International Journal of Bank Marketing and the proceedings of the American Marketing Association, Association for Consumer Research, Academy of Marketing Science, Academy of International Business and Pan-Pacific Business Association.