Consumer attitude towards brand-extension incongruity: The moderating role of need for cognition and need for change

Abstract

This paper integrates two contradictory predictions from the schema incongruity theory: a linear versus an inverted-U relationship between brand-extension incongruity and evaluation. It suggests two personality variables, namely, need for cognition and need for change that moderate the relationship. The major proposition that the relationship would be linear for individuals low in both personality dimensions and inverted-U for those high on both was supported by the data obtained through a questionnaire study. The highest evaluation was obtained for the moderately incongruent extension compared to the congruent and extremely incongruent brand extensions of an established brand for individuals high on both personality dimensions. Four innovative behaviour types identified on the basis of a combination of high and low categories of participants on the two personality dimensions also provided similar results. Theoretical and practical implications of the findings, limitations of the present study, and future possibilities are discussed.     

The moderating effects of need for cognition and cognitive effort on responses to multi-dimensional prices

We investigate how need for cognition and cognitive effort associated with multi-dimensional pricing combine to influence demand. Experiment 1 shows that individuals with low (vs. high) need for cognition are less likely to purchase products that list price and relative discount separately. The direction of the effect of need for cognition on demand is found to depend on whether consumers’ inaccurate arithmetic generally leads them to overestimate or underestimate final prices. Therefore, experiment 2 finds that individuals with low (vs. high) NFC are more likely to purchase products that list price and relative surcharge separately. As expected, the effect is eliminated for absolute discounts or surcharges and mediated by recalled purchase prices.     

The Role of Need for Cognition in Media Evaluation and Usage

While past studies have explored demographic differ- ences in attitudes toward mass media and media usage, this study investigated how differences among consumers in the way they react to information processing situations relate to these media variables. Individuals differing in the extent to which they engage in and enjoy thinking (Cacioppo and Petty 1982) were asked to respond to a series of media-related marketing variables. The analysis of covari- ance results with age, income, and education as covariates showed that low need for cognition individuals in comparison with high need for cognition individuals had sigmcantly more positive atti- tudes toward the broadcast medium, used TV more, and had stronger TV orientation. The implications of the results and of future research directions are discussed.     

The Influence of Personality Traits on the Processing of Visual and Verbal Information

The purpose of this research is to investigate individuals' preferences for visual as opposed to verbal information and to explore how those preferences relate to processing style personality traits. In comparison to individuals with other processing style personality traits, individuals with a high need for cognition prefer to process verbal information while individuals with a high need for affect prefer to process visual information. Linking processing style personality traits with preferences for visual/verbal information increases our theoretical understanding and practical applicability of personality traits.     

A study of the impact of Corporate Social Responsibility and price image on retailer personality and consumers' reactions (satisfaction,trust and loyalty to the retailer)

This study investigates the impact of a retailer's Corporate Social Responsibility (CSR) policy and its price image on retailer personality, along with the impact of these two variables on the consequences of retailer personality: consumers' satisfaction, trust and loyalty toward the retailer (measured by their attitude and future behavioral intentions). Data were collected on a convenience sample of 352 consumers of a French grocery retailer. Using Partial Least Squares analysis (PLS), we show that perceived Corporate Social Responsibility and price image have a significant positive/negative influence on retailer personality traits (“agreeableness” and “conscientiousness”/“disingenuousness”) and that Corporate Social Responsibility has also a significant positive influence on the “sophistication” personality trait. For the consequences examined (satisfaction, trust and loyalty to the retailer), we show that Corporate Social Responsibility, price image and retailer personality have a direct or indirect impact on these dependent variables.     

On being happy and possessive: The interactive effects of mood and personality on consumer judgments

Evaluations of consumer items may often be based on affective reactions, and many marketing strategies rely on affective manipulations to influence a desire of ownership. Surprisingly, there has been relatively little empirical work investigating the influence of short‐term mood states on how people evaluate their material possessions. In particular, the role of individual differences in mediating these effects received little attention. In these two experiments, participants who scored high or low on the Openness to Feelings scale were induced to feel good or bad and were then asked to estimate the subjective and objective value of a variety of consumer items they already owned or wanted to own. Results showed a mood‐congruent pattern. People who were feeling good valued both actual and potential possessions more highly than did people in a negative mood. However, individual differences significantly influenced these effects. People who scored high on the Openness to Feelings scale were most influenced by their moods. In contrast, people who scored low on this measure showed the reverse pattern. The findings are discussed in terms of the psychological mechanisms responsible for producing affect infusion into thinking and judgments, and the critical role of personality variables in mediating these effects is considered. The implications of the findings for contemporary affect‐cognition theories, and for understanding of the variables influencing consumer judgments are discussed. © 2001 John Wiley & Sons, Inc.     

Effects of Mood States on Variety Seeking: The Moderating Roles of Personality

Building upon previous research and in an attempt to better understand the influence of mood states on variety‐seeking (VS) tendency, two specific emotional states (sadness and happiness) are discussed. Furthermore, this article proposes that the effects of mood states on VS are moderated by individuals’ differences. In this article, optimum stimulation level, self‐monitoring, and need for cognition are used to examine the moderating effects of this relationship. Consistent with the proposed hypotheses, the results indicate that sad individuals tend to incorporate more VS than happy ones. In addition, the three personality types tested in this article moderate the effects of mood on VS. Finally, suggestions for future research are discussed.     

Communicating through pictures and words: Understanding the role of affect and cognition in processing visual and verbal information

The interaction of affect and cognition was explored as four types of processor groups (high affect/low cognition, low affect/high cognition, high affect/high cognition, and low affect/low cognition) and investigated in terms of responses to a visual stimulus, a verbal stimulus, and a combination visual/verbal stimulus. This exploratory investigation suggests that high‐affect individuals (affective processors) respond more favorably to a visual ad than the other groups, and individuals high in both affect and cognition (combined processors) respond more favorably to a combination visual/verbal ad. Theoretical and managerial implications as well as directions for future research are discussed. © 2006 Wiley Periodicals, Inc.     

Motivation for emergency and retirement saving: an examination of Regulatory Focus Theory

Can Regulatory Focus Theory be used to better understand consumers' saving attitudes and behaviours? The theory posits that prevention‐ and promotion‐oriented personality traits may influence financial decision making. Using secondary and experimental survey data, two research questions were examined: (1) Are promotion‐ and prevention‐related saving goals, in combination with promotion‐ and prevention‐oriented personality traits, related to attitudes towards saving behaviour? (2) To what extent does the match between these goals and traits affect actual saving behaviour? Findings confirmed that promotion‐oriented consumers were less likely to save for prevention goals, while the opposite was true for prevention‐oriented individuals. Further, consumers' saving goal and personality trait‐based regulatory focus were found to influence cognitive attitudes towards saving. The discussion focuses on how these findings and theoretical perspectives may predict and influence consumers' financial decision making.     

Effect of knowledge on decision making in the context of organic cotton clothing

This research was designed to study whether consumer knowledge on organic cotton and relevant issues influences attitude toward and price acceptance of organic cotton clothing. The effect of consumer knowledge was also studied on the way consumers use product label information in purchasing organic cotton clothing. An online survey was developed to measure the variables including experimental choice‐based conjoint models for mandatory and auxiliary label specifications. Four hundred ninety‐eight people completed the survey. The results indicated that moderately and highly knowledgeable participants were more willing to buy organic cotton clothing at higher price points and they had more positive attitudes toward organic cotton clothing than low knowledgeable participants. The results suggest that differentially knowledgeable consumers may attend to different types of information provided on product labels to evaluate organic cotton apparel products. Providing product‐related information on product labels is essential; however, providing additional information on the benefits of using organic cotton and socially responsible business practices may improve consumers’ knowledge and acceptability of organic cotton apparel products.     

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

We used both stated preference and revealed preference data to estimate willingness to pay (WTP) for shade‐grown coffee as compared with conventionally grown coffee. Stated preference data was collected using contingent valuation studies. Revealed preference data came from an experiment where all survey participants received a personally identifiable voucher redeemable for a free bakery item when the holder purchased a coffee. We compared estimates of mean and median WTP a price premium for shade‐grown coffee from stated preference data with similar estimates from revealed preference data. We used a logit model to evaluate the effect of explanatory variables (measures of environmental attitudes, personal norms for pro‐environmental behaviour and demographic variables) on respondents’ WTP a price premium for shade grown coffee. Model parameters were estimated using the maximum likelihood approach. Respondents with higher scores on measures of environmental attitudes and personal norms for pro‐environmental behaviour were, on average, willing to pay more for shade‐grown coffee. While this paper examined a specific case, purchase of shade‐grown coffee, our results confirmed that stated environmental concern was a good predictor of pro‐environmental behaviour. We found that mean and median WTP estimates from stated preference methods were higher, but not significantly different than mean and median WTP estimates from actual purchases, indicating convergent validity between stated and realized preference methods. The majority of individuals both stated WTP a price premium and purchased shade‐grown coffee at a price premium. We did, however notice some interesting behaviour at the individual level where stated preferences under‐predicted realized preferences at low price‐premia and over‐predicted realized preferences at high price premia.     

Partitioned pricing: Can we always divide and prosper?

The widespread use of partitioned pricing by marketers may be the result of perceptions that it enhances the perceived value of the offer. This research identifies boundary conditions for the effectiveness of partitioned pricing by examining the role of the reasonableness of a surcharge and the need for cognition in consumers’ processing of pricing information. Three studies, each consisting of two experiments, examine the effectiveness of partitioned versus combined pricing and show that for high need for cognition persons, partitioned pricing has a more favorable effect than combined pricing when the surcharges are reasonable; these effects reverse when the surcharges are unreasonable. The studies indicate no differences between partitioned and combined pricing across surcharge conditions for low need for cognition consumers. A fourth study incorporating both reasonable and unreasonable surcharges in one experiment substantiates the conclusions of the first three studies. Finally, detailed process measures provide evidence that high versus low need for cognition persons evaluate partitioned pricing information differently in distinct surcharge conditions.     

The Bright and Dark Side of Altruism: Demographic,Personality Traits,and Disorders Associated with Altruism

This study looked at personality trait and personality disorder correlates of self-rated altruism. In two studies over 4,000 adult British managers completed a battery of tests including a ‘bright side’ personality trait measure (HPI); a ‘dark side’/disorders measure (HDS), and a measure of their Motives and Values which included Altruism. The two studies showed similar results revealing that those who were low on Adjustment (Neuroticism) but high on Interpersonal Sensitivity (Agreeableness), Prudence (Conscientiousness) and Inquisitiveness (Openness) were more likely to value Altruism and be motivated to commit altruistic acts which concerns helping others and creating an environment that places emphasis on customer service. Those more interested in “Getting Along” with others were more Altruistic than those more interested in “Getting Ahead” of others. Implications for the selection and management of altruistic people in a business are considered. Limitations and future directions of this research are also noted.     

Personality traits and complaining behaviors: A focus on Japanese consumers

Despite the fact that personality is thought to be one of the main factors that may explain unhappy consumers’ behavior, very little is known about how it affects their attitudes and complaining strategies. This is particularly true in the case of Japanese consumers where scant research has been conducted on their complaining behaviors. Hence, the main objective of this study is to investigate the roles of three personality traits (i.e., self‐confidence, aggressiveness, and altruism) of Japanese consumers in explaining their attitudes toward complaining, perceived likelihood of successful complaints (PLSCs), and complaining behaviors. On a sample of 263 respondents, a univariate general linear model (GLM) analysis is performed to assess the moderating roles of personality traits on complaint‐related variables. The results show that, on the one hand, in contrast to self‐confidence, the levels (i.e., high vs. low) of aggressiveness and altruism have significant impacts on attitudes toward complaining and PLSCs. However, the level of self‐confidence appears to have the most significant impacts on public complaining behaviors. On the other hand, altruism is found to be the only personality trait that may explain consumers’ private complaining behaviors. Additional analyses reveal interactive effects of the personality traits on complaining attitude and behaviors.     

The persuasive impact of reported group opinions on individuals low vs. high in need for cognition: Rationalization vs. biased elaboration?

A laboratory experiment examined the extent to which the reported opinions of others influence persuasion in individuals low vs. high in need for cognition (NFC). Reported opinions influenced the attitudes of high‐ and low‐NFC respondents in the direction of the majority position. However, for high‐NFC respondents, the effect was entirely mediated by the evaluation of topic‐relevant arguments (i.e., biased elaboration). On the other hand, the influence of reported opinions on the attitudes of low‐NFC respondents was not mediated by the argument ratings. Instead, their evaluations of the topic‐relevant arguments were actually mediated by their attitudes toward the proposal (i.e., rationalization). These results are discussed in terms of the multiple‐roles postulate of the elaboration‐likelihood model (ELM) and the “consensus implies correctness” inference of the heuristic–systematic model (HSM). © 2000 John Wiley & Sons, Inc.     

Store-evoked affect, personalities, and consumer emotional attachments to brands

This research examines how store-evoked affect, human personality, and brand personality influence consumers' emotional attachments to brands. A field study (in wine tasting rooms) demonstrates that satisfaction mediates the effects of store-evoked pleasure and arousal on brand attachments, which further affects brand loyalty and willingness to pay a price premium. Attachment is consistently stronger in positive affective environments (i.e., when pleasure, arousal, and satisfaction are high) and when the brand possesses positive dimensions of brand personality. These effects are stronger for consumers scoring high (rather than low) on extraversion, openness, agreeableness, and conscientiousness and weaker for individuals scoring high on neuroticism. A follow-up experiment (in juice bars) supports the findings of the field study and provides further insight into the three-way interaction between store-evoked affect, brand personality, and consumer personality.     

I love the product but will you? The role of interpersonal attachment styles in social projection

Individuals often have a need to predict the preferences of others (e.g., offering a recommendation, gift giving). In doing so, it is not uncommon that individuals project their attitudes and preferences onto others. Extant consumer research literature related to social projection focuses largely on particular situational variables that influence social projection. The current research adds to a smaller body of consumer research which focuses on specific characteristics of consumers’ selves that may drive an individual's tendency to project his/her attitudes onto others. Specifically, the present paper explores an individual‐level moderator of social projection, namely, interpersonal attachment style. Across five studies, interpersonal attachment style, and attachment anxiety, specifically, is shown to influence social projection. In addition, the mechanism underlying this relationship is demonstrated. The results show that high (vs. low) anxious attachment individuals tend to naturally consider more counter‐valence attributes of a product, that is., liked attributes of a disliked product and disliked attributes of a liked product, and this availability of counter‐valence attributes lowers social projection. Important theoretical and practical implications are discussed.     

Business Advertising Appeals as a Mirror of Cultural Dimensions: A Study of Eleven Countries

Previous research into the use of explicit and implicit conclusions in advertising has yet to demonstrate consistent effects for both brand attitudes and purchase intentions. While research has examined the role of involvement, this study contributes by examining the trait called need for cognition (NFC), which addresses a person's propensity to engage in effortful thinking. In addition, this study introduces argument quality (AQ) as another potential moderator of conclusion explicitness effects. In a 2 × 2 experiment of 261 subjects, conclusion explicitness (explicit conclusion, implicit conclusion) and AQ (strong, weak) are manipulated, with NFC (high NFC, low NFC) as a third measured variable. Results indicate more favorable evaluations for implicit conclusions over explicit conclusions for high-NFC individuals. Further, implicit conclusions result in more favorable brand attitudes and purchase intentions when linked with strong AQ for high-NFC individuals. The findings confirm that conclusion explicitness does not differentially affect the evaluations of low-NFC subjects. Results suggest that NFC may represent an important moderating variable for future conclusion explicitness research.     

Using individual differences to detect customer shopping behaviour

This paper uses two individual differences reflecting consumers' processing preferences - cognitive and affective - to categorize customers and explore differences in shopping behaviours. Results suggest that individuals with different traits report different shopping behaviours. A comparison between groups found that individuals with high cognition compared prices and brands; individuals with high affect made impulse purchases and showed a preference for brand names; and individuals with high cognition and high affect evaluated sales personnel. Theoretical and practical implications are discussed.     

Personality Traits and Peace Negotiations: Integrative Complexity and Attitudes toward the Middle East Peace Process

Much of the literature on negotiation focuses on the effect that various personality factors, characterizing the parties or mediators involved in the process, have on negotiation outcomes. Nevertheless, there hardly can be found a study, which examines these factors with psychometrically reliable and valid tools. The present study uses psychodiagnostic projective method for measuring the personality trait known as integrative complexity, which is considered as a basic factor that connects cognitive traits to attitudes toward conflict resolution. In a sample of 26 Israeli students this trait, assessed by two Rorschach measures - the blend responses and the frequency of organizational activity - has been revealed as a personality characteristic that might explain seeking compromise agreements in negotiation. Individuals low in integrative complexity tend to rely on highly competitive and less cooperative tactics much more than highly integrative complex individuals. Projective measures for integrative complexity, assessed in this study, are suggested to test people as they are assigned to teams charged with important tasks involving complex group decisions and negotiation. In future studies of complex group decisions this psychodiagnostic approach might be used as a part of the support systems in the process of group negotiation.