Hidden costs of consumption

Consumers often underestimate the costs resulting from their consumer decisions. This is especially the case when purchasing durable consumer goods, but also for recreational activities, for which e.g. athletic equipment is bought. A similar situation exists when pets are kept. This disregard for the costs of subsequent use connected with the purchase of household appliances is problematic for consumers. In a study on the usage life of consumer goods¹ in the household, it was recognized that many consumers do not pay attention to these subsequent costs. The decisive consumer problem was not the durability of consumer goods, nor their tendency to become defective, but the resulting costs of the purchase, the operating costs of household appliances. On one hand, the working expenses are not considered at the time of purchase and their effect is not included in the purchase decision. On the other, the operating costs vary greatly, depending on the chosen type and model of appliance and, of course, on the specific form of utilization. In this paper, the question of the durability of consumer goods is first discussed with the help of empirical work. Then the hidden resulting costs, i.e. operating costs or costs of usage of consumer goods, are described. The resulting costs of keeping pets are also discussed. In the final part, the question of objective help for the consumer making purchase decisions is discussed.     

Modelling real-time online information needs: A new research approach for complex consumer behaviour

Abstract

A major challenge for online vendor website operations is serving information that meets visitor needs at a given point in their purchase process. The problem arises from the complexity of human behaviour, as well as changing needs with the evolution of consumer knowledge and skills through the purchase process. The most difficult element, however, is determining the effects of information provided on the site, as well as from other sources that the consumer may access, and anticipating resulting consumer needs. This paper discusses the contributions and limitations of current modelling techniques and utility studies of online consumer information to model consumer needs in real time. An alternative basis for real-time customer need appraisal is proposed using clickstream and customer input data combined with online information utility to enable more effective information serving. This requires further academic research and changes in practitioner online marketing operations.     

The Nature of Self-Reported Guilt in Consumption Contexts

This research uses consumer guilt narratives to identify a typology for consumption related guilt. Three major dimensions of guilt circumstances emerged involving other individuals, societal standards, and more specific situations related to oneself. The connection between categories of consumer guilt experience and the resulting consumer response is also explored, with resulting consumer actions involving amendment, rationalization, and/or denial to resolve guilt experienced. The findings are integrated into a general discussion of the theoretical and substantive implications and the potential avenues for future research in the area.     

The Consumer Costs of Food Certification: A Pilot Study and Research Opportunities

Certification labels have become a ubiquitous feature on food products across grocery store shelves. Although it is widely acknowledged that certified products often garner higher prices than their noncertified competition, less is known regarding what those price differences are based on, and what the personal, political, or ethical implications are for consumers. This research note argues for greater attention to the implications of certified food prices—which we conceptualize as the “consumer costs” of food certification. The paper discusses the theoretical linkages between food certifications and prices, and outlines the resulting consumer costs of which we are concerned. Through a pilot study in Salt Lake City, Utah, we investigate prices found on certified grocery store rice, and consider the causes and implications of the consumer costs of food certification.     

Comparing consumer-produced product reviews across multiple websites with sentiment classification

ABSTRACT

Online consumer reviews have been extensively studied. However, existing literature analyzing online consumer review data mostly relies on a single data source, resulting in potentially biased analytics conclusions. Many websites encourage consumers to post reviews of their purchased products, so that new consumers can evaluate these reviews for the same product across different websites to help them make purchasing decisions. Confusions often arise in this process, because there often exist substantial discrepancies in customer reviews across different retailers on the same product. Clarifying such confusions can help consumers reduce concerns to make up their mind for their purchases, therefore benefiting both consumers and retailers. Through text analytics and sentiment analysis, we comparatively examine the underlying patterns of online consumer reviews of three large retailers including Sears, Home Depot, and Best Buy for a same product. Afterward, we combine online consumer reviews from these large retailers and conduct an overall text analytics and sentiment analysis. The overall results are further compared with the results from individual retailers. The findings show that the sentiment of the online consumer reviews could vary substantially so relying on a single data source to make purchase decision is not a wise idea. Based on the results, we further devise a framework to comparatively examine and integrate multiple data sources for social media analytics of online consumer reviews. This study offers important managerial implications and identifies several new research directions for social media analytics.     

Consumer acceptance of a revolutionary technology-driven product: The role of adoption in the industrial design development

Understanding how consumers adopt a state of the art product is important for the development and marketing of innovative products. The purpose of this study is to examine factors that affect consumer intentions to use a revolutionary technology-driven product (RTP). The research integrates two innovation adoption models, the Unified Technology Acceptance and Utilization Theory (UTAUT) and the Task-Technology Fit (TTF) model with two antecedents of consumer characteristics: consumer innovativeness and perceived value of a new product. The study examines consumer responses to an unfamiliar product, the TEASER which is a conceptual digital cookbook that offers taste sampling, thereby providing an online food-tasting experience. Consumers who are prone to innovativeness and who perceive value in a RTP’s aesthetics are able to discern the conditions that support their intent to use such a product. The resulting model expands the UTAUT and TTF theories by showing that UTAUT variables mediate between the variables of TTF and adoption intentions. These results support the need for nonlinear industrial development processes involving consumers.     

Electronic word-of-mouth via consumer-opinion platforms: What motivates consumers to articulate themselves on the Internet?

Through Web-based consumer opinion platforms (e.g., epinions.com), the Internet enables customers to share their opinions on, and experiences with, goods and services with a multitude of other consumers; that is, to engage in electronic word-of-mouth (eWOM) communication. Drawing on findings from research on virtual communities and traditional word-of-mouth literature, a typology for motives of consumer online articulation is developed. Using an online sample of some 2,000 consumers, information on the structure and relevance of the motives of consumers’ online articulations is generated. The resulting analysis suggests that consumers’ desire for social interaction, desire for economic incentives, their concern for other consumers, and the potential to enhance their own self-worth are the primary factors leading to eWOM behavior. Further, eWOM providers can be grouped based on what motivates their behavior, suggesting that firms may need to develop different strategies for encouraging eWOM behavior among their users.     

The Expulsion of the Concept of Protection from the Consumer Law and the Return of Social Elements in the Civil Law: A Bittersweet Polemic

Consumer law started in the 1960s and 1970s as consumer protection law, meant to compensate for the risks and deficiencies of the consumption society which led to an enormous increase. The target of the first generation of national consumer law was the weak consumers, those who could not cope with the increased choice and the resulting risks. The argument here presented is that the European Union by taking over consumer legislation gradually but steadily changed the outlook, from consumer protection law into consumer law. The weak consumer is not the one who is needed for the completion of the Internal Market. This is the famous average consumer which governs today??s?? normative design of the consumer law making and enforcement. However, the shift in paradigm does not set aside the need to strive for legal rules that cover the weakest in the society.     

Exploiting consumer–employee–retailer interactions in technology-enriched retail environments through a relational lens

The aim of this paper is to explore the relationships between consumer, frontline employees and retailer (organization) subjected to the disruptive force prompted by the adoption of innovative technologies in retail settings. Starting from qualitative data involving 43 frontline employees with different experiences, our analysis revealed that the way for building and maintaining organizational relationships changes differently considering consumer–employee and employee–retailer perspective. In particular, the emergent computer-mediated relationships seem to produce beneficial effects, while combining employees׳ existing capabilities with new competencies, thus resulting in an improvement of the entire retail process. Similarly, they are more satisfied and appreciated organization effort in supporting their jobs through the innovative technologies. Hence, the study provides an empirical contribution to the emerging literature on consumer–employee–retailer (organization) relationships in the innovative scenario through the in-depth investigation of these relationships of four case firms.     

农民非合理性消费行为的深层解读

农民消费行为合理与否受其自身的素质、消费环境、经济发展状况及政策制度等多方面因素的影响,其中经济、制度的导向作用是消费行为产生的基础性要素,部分农民的非合理性消费行为日渐凸显。从社会文化层面上剖析,农民非合理性消费的本质是消费异化,心理诱因是"社会遵从"与"心理补偿",其消极后果会削弱农民生产性投入、抑制农业经济发展,造成城乡消费水平和消费质量的"断层",不利于新农村建设的进一步推进。     

I’ll Be Watching You: Shoppers’ Reactions to Perceptions of Being Watched by Employees

This research fills a gap in the retailing literature regarding the impact of shoppers’ perceptions of being watched while shopping for embarrassing products. Four studies consistently show that an employee watching a shopper can cause the shopper to either permanently or temporarily leave the shopping area as purchase intentions decrease. Reactance theory explains this relationship, which is mediated by consumers’ feelings of control over their own privacy. Essentially, when shoppers believe an employee is watching them, they feel less in control of their privacy, resulting in negative consequences for the retailer. This relationship is especially important for products that consumers may already feel some level of embarrassment over purchasing in the first place. The results have important theoretical implications for reactance theory by demonstrating that a consumer can regain control even when the original threat to behavior still exists. Additionally, increasing options that allow a consumer to regain control will reduce the overall reactance to the threat to privacy and will improve retailer outcomes. Practitioner recommendations present several techniques that allow the consumer to regain privacy control in spite of the sometimes necessary practice of watching in-store consumers.     

Assessing Russian consumers' imported versus domestic product bias

Data from a cross‐section of 438 Russian consumers were collected and analyzed to evaluate consumer preference for ten product types—five consumables and five durables. Results indicate that when Russian consumers consider purchasing a consumable product, consumer ethnocentrism levels and product characteristics reinforce each other, resulting in a strong domestic bias; however, these variables conflict with each other when consumers consider durable products, resulting in consumers exhibiting an inclination for imported durables. This indicates that product characteristics may influence product preference (domestic versus imported) more than consumer ethnocentrism levels. © 2006 Wiley Periodicals, Inc.     

“Reading” whiteness in consumer research

The concept of whiteness has been widely debated in the social sciences and humanities but has rarely surfaced as a theme in consumer research. This paper introduces whiteness theory as an additional theoretical perspective available to consumer researchers to add to those that are well established. The empirical section of the paper comprises a textual analysis of articles published in the Journal of Consumer Research from 1974–2004. The findings suggest that consumer research is dominated by “white faces” and “white spaces,” resulting in many investigators consciously or unconsciously performing whiteness. The ways whiteness can be re‐articulated to stimulate more interest within consumer research are discussed.     

The Media and Their Advertisers: Exploring Ethical Dilemmas in Product Coverage Decisions

Marketers are increasingly relying on promotional practices (variously labeled as stealth marketing, hybrid messages, covert advertising) based on the diffusion of product information by third parties that appear to be independent of advertisers. In this paper, we examine to what extent the media treat their advertisers favorably, providing these advertisers’ products extra visibility in supposedly neutral editorial content. Empirically, we model the determinant of media coverage of Italian fashion products in an extended dataset of consumer magazines in Italy, France, Germany, UK, and the USA. Research findings show that advertising is an important determinant of product placements in editorial content, and this result is consistent across countries and publishers. Our results imply that resource-rich advertisers engaging in compensatory advertising (that is, advertising investments that compensate poor product quality) might bias media coverage in their favor. Consumers will consequently be exposed twice to favorable messages about those products, in both advertisements and media content, resulting in higher purchases and reduced consumer welfare.     

Consumer product-related injury in Australia: direct hospital and medical costs

Abstract

This research was carried out on behalf of the Australia National Audit Office to obtain an estimate of the direct hospital and medical treatment costs of consumer product-related injury in Australia.

Overall, it is estimated that there are almost 5.5 million cases of consumer product-related injury seeking medical attention annually with over 238,000 of these requiring hospitalisation and over 4,000 resulting in death. It is estimated that almost half a million of these cases were related to product failure or malfunction with 18,000 of these requiring hospitalisation and 200 resulting in death.

The direct hospital and medical treatment of all non-intentional consumer product-related injury in Australia is estimated to cost at least $A i 355 million annual ly. This includes treatment costs of injury associated with product failure or malfunction of at least $A95 million.

The Commonwealth government of Australia bears most of this burden through its support of State hospital systems and the universal health insurance scheme Medicare. The report concludes that the high cost of medical and hospital treatment of consumer product-related injury indicates the need to undertake a coordinated program aimed at reducing the frequency and severity of such injury and makes several recommendations particularly in relation to data collection and the dissemination of information in the area of consumer product safety in Australia.     

Ethical Decisions About Sharing Music Files in the P2P Environment

Digitized information and network have made an enormous impact on the music and movie industries. Internet piracy is popular and has greatly threatened the companies in these industries. This study tests Hunt-Vitell’s ethical decision model and attempts to understand why and how people share unauthorized music files with others in the peer-to-peer (P2P) network. The norm of anti-piracy, the ideology of free software, the norm of reciprocity, and the ideology of consumer rights are proposed as four deontological norms related to using P2P systems. The model is tested using a scenario survey with four alternatives; the results indicate that the deontological norm of anti-piracy is not a main factor in affecting P2P users’ ethical considerations regarding sharing files with others. This finding suggests that to protect their property rights, record companies should try to realize the consumer benefits brought via new digital and network technology, instead of simply declaring their intellectual property and resisting the innovations resulting from new technologies.     

Consumer cynicism: Interdisciplinary hybrid review and research agenda

Over the years, consumers have been questioning the intentions and actions of firms, resulting in a cynical attitude and behaviour. Due to the severity of the outcomes that cynical consumers may display, reputed journals and prolific researchers have addressed the core issue in their own unique ways. However, no single study offers a uniform, comprehensive, and contemporary review of consumer cynicism literature. Thus, we use an interdisciplinary approach to study the literature spanning 47 years (1976–2022) on cynicism in consumer research, psychology, and organizational domains through a hybrid review involving bibliometric and systematic literature reviews. Following the SPAR-4-SLR protocol, this review shows the most cited and co-cited articles, researchers, and keywords in cynicism research. We infer that the consumer cynicism construct draws heavily from the organizational behaviour area, possessing the potential to be correlated with, and extended to interdisciplinary research. Also, we offer an all-inclusive model of the predictors and predictands of consumer cynicism based on the ADO-TCM framework. We close this study with its academic contributions, practical implications, and future research directions using the ADO-TCM framework.     

In-store Marketing as a Mode of Discipline

Although the idea of the self-governing consumer has been widely disputed, modern shopping spaces and supermarkets are considered as the key arenas of the sovereign and empowered consumer. Yet, purchasing patterns, which seem predictable over time, can be explained as resulting from consumer routines and habits. Inspired by Foucault’s general thesis that the emergence of individual freedom coincides with new techniques of discipline, this paper explores consumer routines as an outcome of governance structures embedded in modern retail marketing techniques. First, the term embodiment of consumer choice is introduced to describe how shopping in modern supermarkets hinges on various techniques of bodily discipline. Second, by relying on a study of in-store marketing in Norwegian retailing, these promotional activities are examined as techniques normalizing purchasing behaviour. We conclude by saying that power and discipline are underestimated as explanations to the formation of shopping behaviour and consumer routines.     

Can conscious consumption be learned? The role of Hungarian consumer protection education in becoming conscious consumers

The purpose of this research is to examine how consumer consciousness can be defined, along what dimensions it might be measured and, according to these dimensions, how conscious Hungarian university students are. In addition, it is also discussed how their consumer protection education might contribute to their consumer consciousness. Two hypotheses have been proposed concerning factors potentially affecting conscious consumer behaviour (gender; participation in consumer protection education). To test these hypotheses, a questionnaire survey has been conducted with a total of 280 respondents, whom are undergraduate students of a Hungarian university. It is found that different aspects of consciousness dominate the consumer decisions of females and males. Female respondents appear to be characterized more by hedonistic consumption but they are more price sensitive than males. Veblen effect is stronger for males, and they have greater trust in well‐known brands. Although the survey revealed that both research variables might affect consumer behaviour (not only gender but the participation in consumer protection education as well), the role of education cannot be unambiguously identified in the process of establishing consumer consciousness. On the one hand, the results show that the behaviour of ‘trained’ consumers is mainly characterized by price sensitiveness, while the other (‘non‐educated’) group is more reliant on marketing and brands. However, on the other hand, it might also be concluded that young adults participating in the survey already have their own consumer habits and preferences; therefore, their consumer behaviour is more difficult to be formed by means of education during their university years. These findings are nevertheless limited to Hungarian university students and cannot be generalized to the entire society or other countries.     

Sustainable consumer empowerment through critical consumer education: a typology of consumer education approaches

It has always been assumed that consumer education serves the purpose of empowering people in their consumer role. This paper reviews the conventional understanding of consumer education and empowerment and then suggests an alternate approach. The argument is made for consumer education that helps people find their inner power and social potential to challenge the status quo, to change the system from a holistic perspective. Consumer empowerment of this type is totally self‐sustaining. Once learned, it cannot be unlearned. This form of sustainable consumer empowerment is the preferred direction for the future of consumer education.