The changing consumer in the UK

For the UK, the 1980's was Margaret Thatcher's decade; the 1990's may be the decade of Europe. Thatcher's policies and her philosophy still have an impact on social and economic life. An examination is made of demographic changes, economic development, changes in consumption, changes in social attitude and changes in marketing channels that are taking place.Wealth has become more evenly spread throughout society although the bottom is worse off. The UK consumer is becoming more cosmopolitan with increased preference being shown for food and drink from mainland Europe. Another shift is towards increased amounts of both time and money being spent on leisure and in the rapid adoption of new classes of consumer good. There is evidence of the “greening” of the economy but individuals only seem willing to take individual action to “green” their lifestyle for a financial incentive.     

Behavioural psychology,marketing and consumer behaviour: a literature review and future research agenda

Abstract

Psychology, along with a wide range of other academic disciplines, has influenced research in both consumer behaviour and marketing. However, the influence of one area of psychology – namely, behaviourism – on research on consumers and marketing has been less prominent. Behaviourism has influenced consumer and marketing research through the application of classical and operant conditioning, matching and foraging theories, amongst other frameworks, during the past 50 years. This article provides a review of research and applications of behavioural psychology in the area, as well as a brief introduction of behavioural psychology for scholars unfamiliar with the area. The article also suggests avenues for further research examining the potential development of behavioural psychology approaches for both consumer and marketing researchers.     

Envisioning a future purchase: The effects of consumption imagery perspective and identity on consumer motivation

When people visualize a potential purchase, they can adopt either a first‐person or a third‐person perspective. The present research examines whether the perspective adopted would affect consumer motivation, and whether this effect would depend on the extent to which the imagined purchase is connected to identity. In four studies, third‐person imagery resulted in stronger consumer motivation than first‐person imagery, but only for purchases that were tied closely to identity. Furthermore, the results suggest that the motivational effect of third‐person imagery is not based on concerns about others’ views of the self, but rather on the extent to which one feels that the imagined behavior is tied closely to identity.     

Residential energy consumption: Models of consumer behavior and their implications for rate design

This article illustrates the use of bounded rationality concepts in policy analysis. Specifically, we discuss reasons why we expect residential energy consumption to deviate from the utility-maximizing level when multiple-tier rate structures are in use. Then we construct a simple, predictive model of boundedly-rational household behavior which can be tested against a conventional utility-maximization model. Our model predicts that households will over-consume when facing increasing tier rates and under-consume when facing decreasing tier rates.We then discuss some of the policy consequences of this behavior. One consequence, given the kind of increasing tier structures that are common in the United States, is that the magnitude of the overconsumption for a household is plausibly 10 percent in the short-run and 50 percent in the long-run. Another consequence, if policy is constrained to increasing tier rates with constant total consumer subsidy, is that the most efficient of these is likely to have a lower first-tier price and quantity than would be the case without bounded rationality. Finally, we note that both the bounded-rationality model and the utility-maximizing model support the use of a two-part tariff rate structure over tiered rate structures for residential consumers.

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Energieverbrauch privater Haushalte: Modelle des Verbraucherverhaltens und ihre Implikationen für die Tarifgestaltung

Zusammenfassung Der vorliegende Beitrag wendet das Konzept eingeschränkter Rationalität auf energiepolitische Zusammenhänge an. Es wird insbesondere erörtert, wie sich der Energieverbrauch privater Haushalte unter der Annahme eingeschränkter Rationalität von dem unterscheidet, wie er sich bei vollständiger Rationalität (Nutzenmaximierung) ergeben würde — vorausgesetzt, es gilt ein mehrfach gestaffelter Tarif. Die Autoren stellen ein einfaches Vorhersagemodell beschränkt rationalen Haushaltsverhaltens vor, das gegen ein konventionelles Nutzen-Maximierungsmodell getestet werden kann. Nach diesem Modell werden Haushalte bei progressiv gestaffelten Tarifen zu Überkonsum und bei degressiv gestaffelten Tarifen zu Unterkonsum tendieren.Anschließend werden einige politische Konsequenzen dieses Verhaltens diskutiert. Bei der Form progressiv gestaffelter Tarife, die in den USA üblich ist, ist eine Konsequenz, daß die Größenordnung des Mehrverbrauchs eines Haushaltes bei kurzfristiger Betrachtung bei 10%, bei längerfristiger Betrachtung bei 50% liegt. Wenn sich die Tarifpolitik auf progressiv gestaffelte Stufentarife mit konstanter Gesamtversorgung beschränkt, ist eine andere Konsequenz, daß die wirkungsvollste Tarifgestaltung bei beschränkter Rationalität einen niedrigeren Eingangstarif und eine niedrige Eingangsmenge fordert. Schließlich wird ausgeführt, daß sowohl das Modell eingeschränkter Rationalität wie auch das Nutzen-Maximierungs-Modell für einen zweistufigen Tarif anstelle eines mehrfach gestaffelten Tarifs spricht.

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Lee S. Friedman is Professor of Public Policy in the Graduate School of Public Policy, University of California at Berkeley, Berkeley, CA 94720, USA. Karl Hausker is a staff Economist at the U.S. Senate Energy and Natural Resources Committee, Dirksen Senate Office Building, Room 358, Washington, D.C. 20510, USA.The authors are grateful to the University of California Energy Research Group for its support of this research. They would like to thank Suzanne Scotchmer, the Editors, and two anonymous referees for their helpful comments.     

A study in international marketing: The development of a consumer database marketing capability

This paper examines the reasons why Seagram Europe & Africa (SE&A) decided to develop their database marketing capability in Europe. The paper describes the environmental changes, external and internal, that led SE&A to re‐evaluate their marketing communications strategy and examine sponsorship and direct marketing opportunities for Europe. The paper focuses on the major issues SE&A addressed when weighing up the strategic role of database marketing. Finally, the key considerations in the development and implementation of an European‐wide database marketing discipline for the division are discussed.     

Perception of food safety and changes in food consumption habits: a consumer analysis

The relationship between seven types of food safety concerns and the corresponding change in food consumption habits of 236 households in Georgia, USA was evaluated. Results showed a gap between food safety concerns and food consumption habits. Gaps were particularly evident in the cases of pesticide residues, animal drug residues, growth hormones and bacteria. For example, more than 54% of sample households were extremely concerned about pesticide residues, but only 35% actually took extreme precaution in buying items considering this perceived threat. The study indicated that educating consumers about preventive methods to reduce food safety threats will lead to reduced concerns and changes in food consumption habits.     

The power of international marketing functions: antecedents and consequences

Purpose: This paper addresses intra-organizational power of international marketing (IM) functions. While IM functions play an important role in firms that operate in continuously changing international environments, their power has been under-explored. Importantly, IM managers need to understand their function’s power and its implications for business performance.

Methodology/approach: Drawing on resource-dependency and interaction theories, we contend that IM functions’ power is affected by the power of non-marketing functions and coordination and conflicts with them. Additionally, IM functions’ power should affect international performance. However, contingency factors may change this effect. The empirical study uses data from senior managers of B-to-B international firms. The model is tested using multiple regression analysis and extensive post-hoc tests.

Findings: While IM functions are powerful, their power is enhanced by coordination with other functions and is reduced by the power held by non-marketing functions. Surprisingly, conflicts with other functions increase IM functions’ power. Finally, IM functions’ power enhances international performance but its effect is weakened by intra-IM conflicts and differs across hi- and low-tech firms.

Research implications: This study provides insights about drivers and outcomes of IM functions’ power based on their relationships with non-marketing functions. Performance consequences of IM power are dependent on contingencies. The study extends knowledge on the under-researched phenomena of marketing power in a B-to-B international context.

Practical implications: IM managers should manage sources of relative functional power and unique intra-firm interactions to sustain or promote their power and thus benefit their firms’ international performance. Practitioners recognize mechanisms to control IMs’ power.

Originality/value/contribution: The study is the first to focus on the interactions of IM functions with non-marketing functions in B-to-B firms and thus complements prior research on IM, general marketing, and non-marketing functions.     

Moderator variables in consumer research: A call for caution

Consumer-related studies comprise to an increasing extent moderator variables, presumably because researchers have become convinced by scholars who over the years have argued that moderators can produce a more complete understanding of theoretical phenomena and can provide practitioners with higher levels of precision. However, many studies with moderators are characterized by imperfections. To improve the state of the art, this study presents a selection of such imperfections and offers recommendations for researchers who consider including moderator variables in their projects.     

Virtual and augmented reality: Advancing research in consumer marketing

Virtual reality (VR) and augmented reality (AR) technologies are having a profound impact on a variety of marketing practices and are attracting increasing attention from marketing researchers. In this article, we review developments in VR/AR applications and research in the area of consumer marketing. We propose a conceptual framework for VR/AR research in consumer marketing that centers around consumer experiences provided by VR/AR applications along the customer journey and the effectiveness of such applications, and delve into the key concepts and components of the framework. Next, we provide a comprehensive overview of VR/AR applications in current practices and extant research on VR/AR in consumer marketing. Finally, based on this framework, we offer an outlook for future developments of VR/AR technologies and applications, discuss managerial implications, and prescribe directions for research on consumer marketing.     

The organization of the future: Unity of marketing and strategy

Marketing and strategy, while once diverse activities and entities, are moving ever closer together—in this paper it is speculated that they may someday become one. This is in response to changing business environments, and to the emergence of new organizational forms. However, a more fundamental force may be the simple recognition that without relationships there is no need for strategy, and that relationships are fundamental to marketing.     

The early American style: A history of marketing and consumer values

Since the 1876 Centennial, furniture companies, decorators, and home builders have incorporated early American designs into their products. This article recounts the marketing history of this style and some clusters of consumer values—the search for authenticity, status presentation and ethnic identification, nostalgia and tradition making, domesticity and femininity, and aesthetic conservatism—with which early American objects and architecture have been associated. © 1998 John Wiley & Sons, Inc.     

Beyond the world of packaged goods: assessing the relevance of integrated marketing communications for retail and consumer service marketing

Product and packaged goods marketers have responded to changing consumer and media environments by adopting integrated approaches to marketing communication. The value and utility of such approaches likely extend to a wide range of marketers, but there have been few published attempts to examine the viability of the integrated marketing communication concept in retail and service marketing. This study addresses this void by using a seven-stage model of integrated marketing communications to examine the media and message delivery practices of national and regional retailers and consumer service marketers. The results of a national mail survey found many of these marketers using such key integrated marketing communication elements as multiple media, databases, individual-level consumer information and behavioural response measures in their media and message delivery practices. Few, however, were using these elements in a strategic or coordinated fashion. Integrated approaches thus appear to have much value in retail and service marketing, particularly as a means for coordinating media and message delivery elements in a fashion that provides a way to link behavioural responses to media vehicles and advertising messages.     

Place identity and sustainable consumption: implications for social marketing

Place identity is a self-identity dimension related to a physical setting. This study measured place identity relating to residential neighborhood, based on levels of attachment, continuity with personal past, perception of familiarity, cohesion and social acceptance. The study examined the proposition that people with strong place identity are committed to their neighborhoods, in turn leading to positive sustainable consumption attitude and behavior. Structural equation modeling empirically verified a theoretical model developed from the environmental psychology, consumer behavior and marketing literatures. A telephone survey was conducted of 409 residents in two suburbs in the Kuala Lumpur metropolitan area, Malaysia. The finding that place identity and commitment to the residential suburb are strong motivational drivers of sustainable consumption-related attitude and behavior has important implications for social marketing.     

The history of consumption: A literature review and consumer guide

The history of consumption is fast becoming a vital area of academic research. For the social sciences, in general, this new field promises new insight into the great transformation of Western society. For consumer research, in particular, it promises the opportunity to create new perspectives, sources of data, and theoretical concepts. The purpose of this paper is to review recent literature on the history of consumption, and to offer a consumer guide for those who wish to use it in the study of modern consumer behavior and policy.

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Die Geschichte des Konsums: Ein Literaturüberblick und Leseführer

Zusammenfassung Die Geschichte des Konsums wird immer stärker zu einem wichtigen Gegenstand der akademischen Forschung. Für die Sozialwissenschaften im allgemeinen gilt, daß das neue Feld völlig neue Einsichten in die große Tranformation der westlichen Gesellschaften bietet. Für die Verbraucherforschung insbesondere gilt, daß es neue Perspektiven eröffnet, neues Datenmaterial erschließt und die Bildung neuer theoretischer Konzepte ermöglicht. Der vorliegende Beitrag will über die neuere Literatur über die Geschichte des Verbrauchs orientieren und Einstiegshilfen für denjenigen geben, der diese Literatur bei der Analyse des heutigen Verbraucherverhaltens und der Verbraucherpolitik benutzen möchte. Dabei warnt der Beitrag gleich zu Beginn vor einigen naheliegenden Betrachtungsfehlern, vor allem vor einer allzu gegenwartsbezogenen Betrachtung, die vergangene Perioden vorranging als die Vorwegnahme oder zumindest die Vorbereitung unserer Gegenwart auffaßt, sowie vor der Gefahr einer Projektion der eigenen Sichtweisen und Einstellungen auf eine andere Zeit, also die Erforschung einer vergangenen Zeit ausschließlich mit Denkweisen von heute.Die weiteren Abschnitte behandeln die verschiedenen Zusammenhänge, in denen Konsum gesehen werden kann: den kulturellen, den soziologischen, psychologischen, politischen und intellektuellen Kontext, sowie den Marketing- und den Verbraucherkontext. Diese Überlegungen können — so die Schlußfolgerung des Beitrages — einen entscheidenden Beitrag zu der Frage beitragen, weshalb sich in den westlichen Gesellschaften so große Veränderungen ergeben haben, die sich nicht nur in einer industriellen Revolution, sondern auch in einer Konsumrevolution niedergeschlagen haben.

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Grant McCracken is Assistant Professor, Department of Consumer Studies, University of Guelph, Guelph, Ontario, N1G 2W1, Canada. He wishes to thank Russell Belk, Victor Roth, Montrose Sommers, Richard Vosburgh, and anonymous referees for their comments on this paper.     

Investing in consumer confidence through genetically modified labelling: an evaluation of compliance options and their marketing challenges for Australian firms

A significant number of studies have examined aspects of consumer responses towards genetically modified foods (GMFs). However, much of this effort has resulted in somewhat mixed findings which have not added real value in terms of providing viable directions for international and national organisations concerned with the labelling of GMFs. This is particularly true in an environment where labelling regulation is increasingly inconsistent and may therefore present real barriers to international trade and the marketing and sales of these food products.

The aim of this article therefore is to shed light on the extent to which the labelling impositions on genetically modified foods would impact on the overall viability of the GMF industry particularly from an international and firm perspective. To this end, a selection of literatures that cover labelling issues in Europe, USA, Canada and Australasia were distilled in order to better understand the pros and cons of labelling disclosures globally and from these present a platform for future marketing and implementation scenarios in Australia.

On the basis of this literature synthesis, we propose that the success of the GMF imperative is contingent on two levels of compliance. First, at the global level, there is need for greater international consensus regarding uniformity of standards of regulation that would allow for fair trade particularly through such bodies as the World Trade Organisation. By implication, Australia would require to adopt levels of compliance that are comparable to the stringent European Union requirements in order to be able to access those markets and any others. Second, we note that at the firm level, whilst production costs in developing appropriate labelling disclosures can be expected to rise on account of higher standards of compliance, these would be more than offset by the increase in consumer confidence as a consequence of the opportunity to make more informed choices. This in turn would generate positive Word of Mouth most likely resulting in increased uptake and adoption of GMFs generally thus allowing for disclosure costs to fall over time.     

Construction of consumer choice in the market: challenges for environmental policy

Drawing from the literature on the analytics of government, the paper discusses marketing as a form of government, elaborating and illustrating the many ways in which consumer choice is shaped, modified and directed in the market through practices and techniques of consumer marketing. The aim is to critically reflect upon and render problematic the individualistic ideas of the green consumer as a powerful market force and to provoke discussion on the conceptualization – and construction – of consumer subjectivity and social problems in marketing. Taking examples particularly from the fashion and clothing industry, the paper discusses the ways in which marketing activities come to shape consumer conduct by operating through the choice of individuals who freely pursue their needs and desires, and by working on the environment within which this freedom of choice is exercised. The paper contributes to the literature on green consumerism by systematically interrogating and elaborating on the modes and practices of marketing thought and expertise through which consumers and consumption are rendered intelligible and actionable in the market.     

Consumer involvement and marketing in Africa: some directions for future research

Despite an ongoing debate, authors agree that factors that determine consumers' involvement in any goal object are the characteristics of the object, the characteristics of the customer involved and the situational context of the decision. With this as the theoretical background, this paper advocates the need to study African‐specific contextual factors to gain a thorough understanding of consumer involvement and successful marketing practice in this society. An extensive review of the extant literature was done to provide a relevant framework for exploring consumer involvement and African‐related issues. The paper concludes that existing postulations on the subject matter could not robustly capture consumer involvement in Africa due to pertinent influences of cultural values and mores that do not apply elsewhere in the world. Hence, empirical studies to gauge the context‐specific application of the subject in relation to Africa are suggested as imperative. This paper advocates a society‐oriented consciousness for marketing activities in relation to consumer involvement with specific reference to Africa. Therefore, it cautions against undue generalization about the existing postulations on the subject, and provides directions for future research towards updating the literature.     

The quest for consumer engagement via cause-related marketing: A mixed method study in an emerging economy

The present study attempts to understand the concept of consumer engagement (CE) in Cause-related Marketing (CRM) context. Utilizing a simultaneous qual + qual mixed method research approach; the authors have attempted to consider two research questions: (1) how online retail organizations operating in India are framing CRM campaigns for enhancing consumer engagement, and (2) what are the factors that motivate consumers to engage with CRM initiatives of online retailers. Integrating the findings of the study with the ‘Hierarchy of Engagement Model’ provided by Grewal et al. (2017b), the authors have proposed a conceptual model of CE in CRM context. Further, the study provides implications for both academics and marketing practitioners.