Purchase power: An examination of consumption as voting

Abstract

There has been a reported increase in political activity through the marketplace in the form of ‘consumer votes’. The use of marketplace votes by consumers to address their concerns about societal issues is a phenomenon that has growing relevance for firms, since they are often affected by such consumer citizenship. Therefore, this paper aims to enhance our conceptual understanding of the consumer voting phenomenon. It explores marketplace power relations and the constraints and enabling mechanisms they may pose to consumers seeking change through consumer voting. Consumer voting practices, consumer sovereignty discourses, and power tensions in marketplace encounters are examined in relation to Foucault's notions of power, technologies of the self, and governmentality. Foucault provides a critical lens to illuminate the potential for consumer resistance, an approach that so far has been somewhat neglected by the extant marketing and consumer research literature.     

The effect of affective response to corporate social irresponsibility on consumer resistance behaviour: validation of a dual-channel model

ABSTRACT

This paper delineates a dual-channel model of consumer resistance towards corporate social irresponsibility. The model assumes a conditional mediational relationship among affective response to corporate social irresponsibility and ethical judgement as drivers of consumers’ inclination towards boycotting, protesting and negative word-of-mouth. Mediation-analysis results are largely in line with the model hypotheses: Affective response to corporate social irresponsibility solely has a significant direct effect on resistance inclination of consumers with a low preference for ethical products. Moreover, contractualistic and moral equity (utilitarian) judgement mediate(s) the effect of affective response on resistance intention for consumers with high (low) ethical product preferences. Based on the empirical findings, the paper presents practical implications and avenues for future research.     

What and how to communicate about a corporate brand with the consumers: An exploratory study

The present exploratory study investigates the differential impact of various relevant corporate brand associations on consumers' cognitive (product attitude and purchase intention) and affective responses (affective corporate commitment) in the three sectors, namely durables, services and fast moving consumer goods. The findings reveal that corporate brand associations can be categorised into two categories – universal associations, which are influential in all the sectors, and sector-specific associations, which have a differential effect on consumers in different sectors. Thus, this study reveals that corporate branding is important to consumers in all the sectors, but a single corporate brand story does not work in all the sectors. Further, corporate associations do not always have a positive effect on the consumers; under certain circumstances, these might either have no effect or have a negative effect on the consumers. Finally, there are two routes by which corporate brand associations can influence consumers – by affecting their cognitive responses or by influencing their affective responses towards the company. The recognition of the important corporate brand associations in the three sectors, and the routes (cognitive or affective) through which these associations influence consumer choices would enable marketers to develop more sophisticated corporate communication strategies.     

Consumer debt in Australia: why banks will not turn their backs on profit

Five years into the 21st century and consumer debt levels in Australia are still escalating. Simultaneously, there is concern that an increasing number of consumers may be unable to meet their future financial commitments and also mounting alarm at the relative ease with which the majority of consumers can access additional credit facilities. At the same time, credit providers are avidly seeking greater profits by enticing consumers to borrow more and more. Against this background, the issue of corporate social responsibility (CSR) in the Australian consumer credit industry is discussed. The application of strategic stakeholder management theory to the activities of a specific class of lender – banks – is then discussed. The aim is to better understand why the contemporary demands of CSR will not lead banks to undertake a more vigilant approach to consumer lending advocated by consumer groups who, witnessing the impact of the growing level of consumer indebtedness on a number of consumers, are calling for more responsible lending practices. The opportunity to contribute to debate aimed at alleviating the risk of growing consumer indebtedness is highlighted. The paper concludes with an acknowledgement that, without intervention, factors such as competition in the free market for consumer credit, the demands of shareholders for profits, and consumers’ own folly in demanding immediate gratification and readily accepting additional credit as a means of financing their consumption, ensure that consumer debt levels will continue to rise.     

Consumers’ forgiveness after brand transgression: the effect of the firm’s corporate social responsibility and response

Abstract

In this article we examine the interplay between the severity of a brand transgression, consumers’ prior awareness of the firm’s corporate social responsibility (CSR) initiatives, and the firm’s response (apology vs. apologia) on the rates of forgiveness among consumers. Results of two experiments show that consumers’ prior awareness of the firm’s CSR initiatives significantly differentiates apologia from apology, with the effect of apology on consumer forgiveness being more apparent when brand transgression severity is mild. Results also show that consumer forgiveness mediates the effect of brand transgression severity, firm response, and consumer awareness on repurchase intentions. In this way, the study enables managers to determine whether or not an apology or apologia will be sufficient to solicit consumer forgiveness, using information about the levels of awareness of CSR among consumers.     

Retailer corporate social responsibility and consumer citizenship behavior: The mediating roles of perceived consumer effectiveness and consumer trust

Retailers often face pressure from stakeholders to address social and environmental issues. The purpose of this study is to investigate the influence of retailer corporate social responsibility (CSR) on consumers' perceptions and behavior. Drawing on the theoretical foundations of social identity theory and signaling theory, this study presents and validates a unique model which examines the mediating effects of perceived consumer effectiveness and consumer trust on the relationship between retailer CSR and consumer citizenship behavior. Using a sample of 407 consumers in China, results of structural equation modeling show that retailer CSR is positively associated with consumer citizenship behavior. Additionally, perceived consumer effectiveness and consumer trust positively mediate this association. Taken together, these findings provide support for retailers to develop CSR programs that remind and reinforce consumers’ perceptions about socially responsible behaviors.     

Differentiated consumer forgiveness for different corporate social irresponsibility domains: The moderating role of corporate reputation and patriotism

The extant literature has generally overlooked the differentiated consumer forgiveness regarding corporate social irresponsibility (CSI). Motivated by this, we introduce the construct of patriotism and propose a model (applicable to domestic enterprises in China) to investigate the moderating effect of patriotism and corporate reputation on the relationship between CSI domains (must-be and attractive) and consumer forgiveness; and such effect is mediated by moral judgment. An experiment that uses 483 actual consumers in China as participants was conducted. We find that the must-be CSI has a greater negative impact on consumers than the attractive CSI, and consumers are less likely to forgive the must-be CSI. Meanwhile, moral judgment plays a mediating role in the differential effects of different CSI domains on consumer forgiveness. In addition, high corporate reputation has a buffer effect on both CSI domains for consumers with high patriotism, and has a boomerang effect on the must-be CSI and a buffer effect on the attractive CSI for consumers with low patriotism.     

Understanding Corporate Social Responsibility and Product Perceptions in Consumer Markets: A Cross-cultural Evaluation

The concept of corporate social responsibility is becoming integral to effective corporate brand management. This study adopts a multidimensional and cross-country perspective of the concept and analyses consumer perceptions of behaviour of four leading consumer products manufacturers. Data was collected from consumers in two countries – Spain and the UK. The study analyses consumers’ degree of interest in corporate responsibility and its impact on their perception about the company. The findings here suggest a weak impact of company-specific communication on consumers’ perception. The implications of this study are relevant to companies for strengthening their social responsibility associations with the consumers. Dr. Jaywant Singh is Senior Lecturer at Kingston University, London where he teaches consumer behaviour and international marketing. His research interests include customer loyalty, product variants, new brands, corporate social responsibility, and consumer panel data. He received his PhD in marketing in 2004. Dr. Maria de Mar Garcia de los Salmones is Lecturer at University of Cantabria (Spain). Her current research interests include corporate social responsibility, brand image and consumer behaviour. She received her PhD in business administration in 2002. Dr. Ignacio Rodriguez de Bosque is Professor of Marketing at the University of Cantabria (Spain). His current research interests include Business Communication, relationship marketing and distribution channels. He has published in several international journals such as Tourism, Management, Journal of Retailing and Consumer Services and Industrial Marketing Management.     

‘Consumers’ Evaluation of Unethical Marketing Behaviors: The Role of Customer Commitment’

While there is a significant amount of research investigating managerial ethical judgments, a limited amount examines consumer judgments of unethical corporate behavior and its impact on the marketplace. This study examines how consumers’ commitment to a company impacts not only their ethical judgment of corporate behavior but also the outcomes of that judgment. The authors test hypotheses with data from 334 consumers and find that consumers’ level of commitment attenuates the level of perceived fairness. More specifically, highly committed consumers may forgive companies for behaviors when perceived harm is low, but become progressively dissatisfied as the level of perceived harm increases. Results of the study point to the importance of considering ethical behavior from a consumer perspective. If corporate actions are perceived as unethical, the company stands to lose favor with their most committed customers. Considering that more time, effort and investment is required to gain a new customer as to retain an old, this study shows that engaging in behavior perceived as unethical by consumers risks alienating the most committed customers.     

Consumer Attitudes and Preferences Concerning Shopping On-Line

Abstract

The emergence of e-commerce is having a substantial impact on consumer purchasing behavior. Yet, the rate of consumers' acceptance of e-commerce has been slower than many predicted. Using the view of consumption as an institution, this study examines consumers' preferences for shopping on-line. Analysis of data collected from focus groups and surveys suggests consumers perceive relative advantages and disadvantages of shopping on-line vs. shopping in traditional stores. In addition, the results suggest consumers have substantive reservations about shopping on-line which may be adversely affecting the acceptance rate of this new channel. Study limitations and suggestions for future research are also presented.     

Thiscompanysucks.com: the use of the Internet in negative consumer‐to‐consumer articulations

The Internet has provided a forum through which consumers who are dissatisfied with various companies can vent their anger towards these corporations. A number of World Wide Web (WWW) sites have cropped up on the Internet, their specific aim being the fomenting of negative communication about companies: these are known as corporate complaint WWW sites. Little research has been conducted on negative on‐line consumer‐to‐consumer articulations and the possible impact that these might have on consumers' perceptions and attitudes. This paper attempts to foster discussion on the use of the Internet in facilitating consumer‐to‐consumer communication, particularly negative communication. First, background information on corporate complaint WWW sites is provided. Then, a survey that was conducted in order to glean information on consumer knowledge of and responses to these kinds of WWW sites is discussed. The results indicate that, among the population used in this study, the awareness of corporate complaint WWW sites was moderate. However, when respondents were aware of them, they were likely to visit them. Social influence plays a role in influencing awareness and prompting visits to corporate complaint WWW sites. In addition, an individual difference factor, attitudes towards complaining, influenced the kinds of activities in which the respondents engaged when they visit corporate complaint WWW sites. Future research directions are proposed.     

Leveraging social media-based determinants to build customer-based brand equity of a retailer

ABSTRACT

Social media is all about consumer networks and consumer relations that challenge marketers to leverage social media as a means to develop and improve their connections with consumers. Though tremendous opportunities via social media are alluring, businesses are still finding it hard to penetrate the clique of consumer interactions that are largely personal in nature. Despite the opportunities available through social media marketing activities, understanding customers and their behavior, and incorporating that information in marketing strategy formulation is critical to successful strategy implementation. This study takes a significant leap forward in this direction. Theoretically grounded in diverse fields, this study demonstrates how retailers can build customer-based brand equity using social media-based brand determinants. Using seemingly unrelated regression technique, this study examines how retailer brands can leverage consumer characteristics on social media to successfully integrate and capitalize on social media marketing activities. This research study has important implications for both marketing theory and practice.     

Does the perception of incongruence hurt more? Customers’ responses to CSR crises affecting the main reputation dimension of a company

ABSTRACT

Corporate social responsibility (CSR) generates benefits for companies and society. However, CSR exposes a company to potential damage when a critical event, such as a crisis, disconfirms the CSR of a corporate reputation. The present article introduces to the crisis management literature the notion of consumer-perceived incongruence (CPI) between corporate reputation and crises. Our first experimental study demonstrates that a high CPI – compared to a low CPI – worsens consumer responses in terms of attitude towards the corporation (ATC), word of mouth (WOM) and purchase intention (PI). The second study shows that these effects are mediated by the perception of a state of discomfort on the part of the consumer. The third study suggests that, in cases of high CPI, the corporate crisis response strategy of apology outperforms that of compensation in reducing the negative effects of discomfort on consumer responses. Theoretical and managerial implications are discussed.     

Consumer education in the UK: new developments in policy,strategy and implementation

Consumer education is an integral part of the European Community's consumer policy. It plays a key role in consumer empowerment, helping consumers gain the skills, attitudes and knowledge they need to be able to gear the choices they make as consumers to their economic interests and to protect their health and safety. In its policy statement, the Directorate General for Health and Consumer Protection states that the European Community is aware that joint measures at national and Community levels should be more structured, in order to achieve maximum effectiveness. This paper aims to set out the current policy and strategic context for consumer education and empowerment in the UK; review the role of UK government bodies and other agencies concerned with developments; review recent literature; present the results of interviews with an extensive range of key stakeholders and the results of a survey of service heads for trading standards throughout the UK. It will consider implementation, partnership, resources, ideas and opportunities. The research found that the agenda for consumer education in the UK is at an interesting stage of development. The Enterprise Act 2002 gives the Office of Fair Trading (OFT) a statutory power to carry out educational activities. Consumer education is also moving up the agenda in the trading standards service. In addition, the teaching of citizenship in English schools is already stimulating new developments in consumer education. The paper will consider the need for organizations like these to work together to build on these policy developments and ensure that consumer education gains the profile it needs to influence consumer attitudes and behaviour.     

An empirical study of the impact of consumer emotional engagement and affective commitment in firm-hosted virtual communities

ABSTRACT

Emergent perspectives in marketing highlight new opportunities for leveraging social media as a means to build customer–firm relationships through consumer engagement. Drawing from cognitive appraisal theory and aspects of the service dominant logic, this study delineates and empirically tests hypotheses regarding the effects of key components of consumer engagement (cognitive appraisal, affective states, participation) on consumers’ affective commitment, in the context of two service companies where the firms used social media to host virtual communities. The research examines how consumers’ cognitive appraisal of the engagement experience aligned with their online interaction propensity and participation in value-creating activities drive engagement outcomes. The results confirm the need to contextualise, personalise and respond to the consumer’s engagement experience to develop this engagement.     

Fashion creation and diffusion: The institution of marketing

Abstract

In scholarly discussions, marketing tends to be imagined and (re)presented as a practice of organisations, involving a set of activities, whereby consumer desires are discovered and provided for through two-way communication. By studying the creation and diffusion of fashion, we observe that marketing is not simply a mechanism or set of activities but an institution of modern society that involves all social elements together with consumers and marketing organisations. Through a qualitative inquiry with both consumers and producers, we illustrate how these different elements exercise their roles and responsibilities for marketing to work as an institution. By this illustration, we also provide a perspective on how trickle-up, trickle-across, and trickle-down diffusions are simultaneously operative in fashion. Finally, we articulate the implications of recognising marketing as an institution that will help marketing scholars and practitioners in reorganising and re-strategising their purpose and role in society as modernity evolves.     

Consumer vulnerability and exclusion: A study of carers in the tourism marketplace

Abstract

Carers – a growing, multidimensional, context-specific, yet transient community (three in five of the population during a lifetime) – have been largely neglected in the marketing literature. Focusing upon the impediments to tourism participation this consumer group faces, the paper explores issues of carer engagement, consumer vulnerability, and societal exclusion from the perspective of two carer groups: senior carers and cancer carers. Conclusions reached demonstrate how challenging many carers find tourism-marketplace engagement and confirm carers can indeed be considered as vulnerable consumers. They introduce us to a range of circumstances that prompt exclusion and call upon policy makers to recognise the existence of multiple categories of vulnerability in accommodating the needs of this consumer. A future research agenda is outlined. This argues for the need to review the wider implications of the findings beyond the geographical constraints of this study, and to explore also their application to other vulnerable consumers.     

Helping You to Waste Less? Consumer Acceptance of Food Marketing Offers Targeted to Food-Related Lifestyle Segments of Consumers

ABSTRACT

Consumer households and consumer behavior have been identified as the major cause of food waste in the supply chain. Food marketing might offer products and services that help consumers to reduce their food waste or reduce the consumer-related food waste at the consumer–retailer interface. However, such strategies require consumer acceptance and targeting the right customers. Through an online survey of 800 Danish consumers and a measure of food-related lifestyle, four clusters of consumer segments are identified. The segments are compared with regard to their acceptance of a number of actions consumers can take to reduce food waste or their acceptance of food marketing services they would need to pay for. Acceptance differs with food involvement and the role of the price criterion, as well as with gender, education and age. The findings show how food marketing can help consumers to reduce food waste, through actions targeted to specific segments of consumers characterized by food-related lifestyle differences.     

Deterring deviant consumer behaviour: when ‘it’s wrong,don’t do it’ doesn’t work

ABSTRACT

Tactics to deter deviant consumer behaviour have received limited attention in the literature despite deviance being an ongoing problem in the marketplace. Across two studies, the findings suggest there is a heterogeneous response to the rules placed on consumers’ behaviour, which manifests from an absence of consensus among consumers on what is right and wrong behaviour undermining the it’s wrong, don’t do it approach to deterrence. Further, risk perceptions of being caught and punished are low, if not absent, undermining the you will be caught and punished approach to deterrence. Alternate underlying mechanisms were tested and found to influence deviant consumer behaviour (perceived prevalence, perceived outcomes and moral identity), which could underpin alternate deterrence tactics, including social proofing, moral triggers and humanising the victim.     

A Cluster Analytic Approach for Consumer Segmentation Using the Vegetarian/Meatarian Distinction

Abstract

In this study, we use cluster analysis to create a consumer segmentation scheme based on individuals' vegetarian/meatarian orientation, along with key attitudinal, personality, and demographic characteristics. Such characteristics include concern for animals, concern with health, concern for the environment, attitude toward corporate ethical practices, need for cognition, social conformity, age, gender, and level of education. In segmenting consumers along these dimensions, this research study not only expands our knowledge about consumers, but also provides useful insight for marketers of food products and services.