Informational Inputs as Influences on Efficient Consumer Decision-Making

The effects of consumer information and consumer sophistication on the ability of consumers to make purchases offering the greatest benefits were examined. It was found that consumer information enhances the likelihood that consumers will make efficient choices of products. Consumer sophistication was also found to be an intervening variable in consumers' use of information.     

So happy for your loss: Consumer schadenfreude increases choice satisfaction

Consumers often feel schadenfreude, an emotion reflecting an experience of pleasure over misfortunes of another. Schadenfreude has found wide use in advertising, but its actual consequences for consumers have not been thoroughly documented. The present research investigates the effect of schadenfreude on consumers' satisfaction with choices they have made. Building on the feelings-as-information theory, the authors posit that consumers take their positive feelings of schadenfreude over another's unrelated bad purchase as positive information about their own choices, and through such misattribution become more satisfied with their own choices. Three experiments show that feeling schadenfreude over another consumer's bad purchase makes consumers more satisfied with their own choices (Study 1), regardless of whether the other's bad purchase is in the same or in a different product category as one's own choice (Study 2), but only so long as consumers are not aware that they are engaging in misattribution (Study 3). The present research contributes to the literature on schadenfreude and feelings-as-information theory. Its findings may be used by marketers aiming to exert an unconscious influence on consumer satisfaction.     

Affirmative Disclosure of Nutrition Information and Consumers' Food Preferences: A Review

In order to evaluate a food advertising regulation proposed by the FTC, this paper examines some empirical studies of food marketing practices and their influence on consumer attitudes and behavior toward nutrition information and dietary habits. The requirement for affirmative disclosure of nutrition information may fall short of its intended goal because consumers have low motivation to use such information and inadequate comprehension of it. Moreover, the limited information processing capacity of the average person may preclude effective communication of nutrition information in a television commercial. The regulation's most likely impact would be to create awareness of nutrition information and increase the salience of nutrition in the consumer's food choices. Unless consumer education programs are coordinated with the regulatory efforts, lack of motivation and comprehension in the use of nutrition information will be a major barrier in achieving any significant improvement in the nutrition status of consumers.     

Marketing Strategy, Product Safety, and Ethical Factors in Consumer Choice

Firms that wish to be morally responsible in providing products that meet a high standard of safety may face problems competing against firms that make unsafe products and sell these products at cheap prices; these problems may be compounded when consumers do not accurately process information about safety and risk. This paper presents a conceptual argument that the tort system may serve to promulgate information which makes it feasible for firms to market safe products even in the face of these competitive obstacles.To corroborate the conceptual argument, the paper presents the results of an experimental study about the impact of negligence liability information on consumer product safety evaluation. The results show that provision of negligence information heightens consumer concern for safety and firms' ethical behavior, and increases the proportion of consumer choices in favors of the brands sold by manufacturers with a favorable track record for quality. More importantly, they indicate that provision of negligence information reduces the likelihood that brands which conform to inferior safety standards will be chosen by consumers who care about safety standards.     

Quantity of Information and Information Display Type as Predictors of Consumer Choice of Product Brands

Research has shown that consumers like large quantities of product information and believe that it helps them to make better purchase decisions. In light of this finding, it is quite possible that consumers might make brand choice decisions based on the amount of information provided. In cases where brands differ in amount of information, consumers may choose those brands that provide the most information. This article reports the results of exploratory research designed to examine this question as well as the effects of two information display types on brand choice in situations of varying information quantity. The findings revealed evidence to support the hypothesized consumer preference for high-information brands over low-information brands. The magnitude of the effect was also found to differ by type of information display.     

Consumer spirituality

ABSTRACT

Consumers increasingly turn to the marketplace in search of spiritual well-being. In this introduction to the special issue, we unpack the concept of consumer spirituality. We define consumer spirituality as the interrelated practices and processes engaged in when consuming market offerings (products, services, places) that yield 'spiritual utility'. The market offerings are purposely designed to quench consumers’ thirst for meaningful encounters with one’s inner self or a higher external power. We identify three vehicles – materiality, embodiment, and technology – that consumers engage with to access consumer spirituality. By unpacking the concept of consumer spirituality along three themes - (1) shaping markets for consumer spirituality, (2) the means for accessing consumer spirituality, and (3) making sense of and researching consumer spirituality - we provide a future research agenda to advance scholarly explorations of consumer spirituality and to facilitate a systematic development of this nascent body of literature in marketing and consumer research.     

Consumer observations on channel choices—Competitive strategies in Finnish grocery retailing

This article aims at providing consumers’ observations on their choices between various grocery retailing channels. The theoretical roots are based on Porter's competitive strategies and their further developed variations, but also the retailing research concerning competition and consumer perspective will be discussed. The results of the study confirm that consumers have one primary store, which is often a hypermarket or a supermarket. In addition, they prefer to shop in several supplementary stores located close to their homes. The empirical study also reveals that all retail channels have both weaknesses and strengths from the consumers’ viewpoint.     

An Information Processing Interpretation of Cross-National Consumer Characteristics

The identification of a valid interpretation of the similarities and differences in the behavior of consumers in different nations is impossible without a comprehensive theory of consumer behavior that explicitly takes into account differences in the characteristics of the consumer, the marketplace, the social environment, and the physical environment of these nations. Newell and Simon's version of information processing theory is advocated as the one theory that is capable of providing a solution to this basic problem of cross-national research.     

Consumer Decision Making on the Web: A Theoretical Analysis and Research Guidelines

Recent empirical data on online shopping suggests that consumers have the potential to make better quality decisions while shopping on the web. But whether such potential is being realized by most consumers is an unresolved matter. Hence, the purpose of this research is to understand how (1) certain features of electronic environments have a favorable effect on the abilities of consumers to make better decisions, and (2) identify information‐processing strategies that would enable consumers to make better quality decisions while shopping online. A cross‐disciplinary theoretical analysis based on constructs drawn from economics (e.g., time costs), computing (e.g., recommendation agents), and psychology (e.g., decision strategies) is conducted to identify factors that potentially influence decision quality in electronic environments. The research is important from a theoretical standpoint because it examines an important aspect of online consumer decision making, namely, the impact of the electronic environment on the capabilities of consumers. It is important from both a managerial and public policy standpoint because the ability of shoppers to make better quality decisions while shopping online is directly related to improving market efficiency and enhancing consumer welfare in electronic markets.     

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.     

Consumer rights of the elderly as vulnerable consumers in South Africa: some comparative aspects of the Consumer Protection Act 68 of 2008

Although consumer protection is not a new concept in South African law, the Consumer Protection Act 68 of 2008 (CPA) now provides for a much more comprehensive and encompassing mechanism to protect consumers. Consumers are protected, not only in the provision of goods and services, the conclusion of contracts but also in the promotion and marketing thereof. The CPA further provides special protection to a particular type of consumer which is the vulnerable consumer and includes elderly consumers. Importantly, and for the first time in the history of South African law, the consumer is provided with eight core fundamental consumer rights. As this contribution is an attempt to provide an interdisciplinary analysis from a legal perspective, identification of what is considered to be an ‘elderly' consumer, needs to be assessed by referring to relevant empirical studies from both an international as well as South African perspective. The focus of this study is on the protection of the elderly as a category of vulnerable consumers in terms of the CPA. The investigation will attempt to show that the elderly is protected in terms of all eight of the fundamental consumer rights within the CPA. Special reference will be made to two fundamental rights of the consumer in terms of the CPA. First, the elderly consumer's right to equality in the consumer market (Part A of the CPA) which provides additional protection as the CPA also refers to the Constitutional right to equality. Second, the elderly consumer's the right to fair and responsible marketing (Part E of the CPA) which in terms of the research is compared with the EU Unfair Commercial Practices Directive. Certain problems regarding elderly consumers are identified and the importance of consumer rights as well as the implementation of the correct consumer policy is argued.     

Consumer Ethnocentrism and Country-of-Origin Effects in the Moroccan Market

ABSTRACT

Differences in consumer values exert a powerful impact on product acceptance. Morocco is no stranger to this phenomenon. While this country's consumers have easy access to world markets, consumer ethnocentrism can restrict choice. The objective of this research has been to investigate ethnocentric behavior of Moroccan consumers and the extent to which domestic products might be preferred to foreign products or vice versa. Data were collected via face-to-face interviews with 400 consumers in four major Moroccan cities. A questionnaire was developed for this purpose using a version of the Consumer Ethnocentrism Scale (CETSCALE). Opinions about four products were solicited. The four products were jeans, cars, shampoo, and juice. The interviewees were asked their opinions about product attributes and about various countries-of-origin. Their responses were analyzed also on the basis of their most essential demographic characteristics. Logistic regression models were developed to analyze the data.     

Competent consumers? Consumer competence profiles in Norway

Consumer competence is increasingly important in today’s commercialized society. This paper refers to some main findings from a national representative survey on consumer competences and practices in Norway. To be a competent consumer, it is decisive to be informed about products and to be familiar with how markets function. In this paper, consumers’ self‐reported efforts to keep themselves informed about specific markets is treated as an indicator of consumer competence. First, the results indicate that Norwegian consumers’ competence, according to their own judgement, is rather mediocre. Second, different groups of consumers seem to have different consumer competence profiles. Accordingly, we find that some consumers are price‐conscious in their daily purchases, others are price‐conscious when they make their yearly dispositions in the financial markets, while a third group is community‐oriented and active in the environmentally friendly and ethical product markets. Third, the analysis indicates that consumer competence is an important indicator of how market‐rational and reflective consumers’ choices and practices are.     

Effects of Word of Mouth Advertising on Consumer Risk Taking

The role of word of mouth advertising on modifying consumers' willingness to make risky product choices is analyzed. The authors present an information and perceived risk processing model of word of mouth advertising's influence on consumer behavior. Implications for advertising management are suggested.     

The Influence of Communication Source and Mode on Consumer Adoption of Technological Innovations

Communication is the critical process of diffusion of technological innovations, yet there is little research in the consumer behavior literature investigating how communication affects consumers’ decision to adopt technological innovations. This paper examines the effects of communication source and modality on consumers’ adoption of technological innovations using the 1999 University of Michigan's Survey of Consumers data. Specifically, a typology of communication sources and modality is presented, and the respective and interrelated influences of source and mode on consumers’ adoption of electronic banking are examined. The results demonstrate that communication factors can serve as significant predictors of consumer adoption of technological innovations and that consumer preferences for communication source and modality vary for different segments of adopters. In addition, we find information gaps between consumer segments high and low in socioeconomic status. Finally, implications for the diffusion of technological innovations and future research directions are discussed.     

Effects on Nutrition Label Regulation on Consumer Choice

The U.S. government initiated food labeling reform in 1989, which culminated with the Nutrition Labeling and Education Act (NLEA) of 1990, emphasizing the provision of improved nutrition information on most food products. The goal of such labeling reform has been to provide consistent, readable, understandable and usable food labels that enable consumers to make more healthful food choices. This paper examines the theoretical impact of the new regulations on consumer food choice behavior. The paper first discusses the use and impact of food labels by/on consumers, and uses a choice model to desribe the effects of these new labels on consumer food choice decisions. In particular, the research focuses on two important food attributes, and the presence of information of these attributes through the new nutrition labels, which may influence consumer purchase behavior.     

Consumer empowerment: global context,UK strategies and vulnerable consumers

Globalization has created new consumer needs and wants, and resulted in consumer confusion regarding the increasing complexity of products and services. This has stimulated global interest in educating and empowering consumers. The UK government has made a very ambitious commitment to ensure that the framework for consumer empowerment and support is at the level of the best in the world by 2008. The government, many consumer organizations and regulators believe that empowered consumers are key to the success of competitive markets. Two national strategies to co‐ordinate activities in the UK have been developed by the Office of Fair Trading (OFT) and the Financial Services Authority (FSA). The OFT consumer education strategy aims to deliver targeted, effective consumer education by increasing co‐ordination and making the best use of available resources. The FSA is leading a financial capability strategy designed to deliver change to improve the UK's financial capability. Both strategies share a vision of educated and confident consumers making informed choices about the products and services they buy, and both aim to empower vulnerable consumers. Given the global interest and the development of national strategies, it is useful to consider what is meant by the term consumer empowerment. Is there a shared view of consumer empowerment internationally? Does the education of consumers result in empowered consumers? To what extent do the national strategies address the empowerment of vulnerable, disadvantaged, excluded or susceptible consumers? These questions will be addressed in this article which reviews the global context for the consumer education and empowerment agenda and considers key UK developments, with particular reference to the needs of vulnerable consumers. The study found that the language of consumer empowerment is gaining prominence in policy and strategy documents at the highest levels internationally in the Organisation of Economic Cooperation and Development and the European Community, and nationally in the UK.     

Consumer cynicism and perceived deception in vanity sizing: The moderating role of retailer (dis)honesty

While prior scholarship has acknowledged the overall positive influence of vanity sizing on consumer outcomes, no work to date has addressed the psychological process that occurs when consumers suspect retailers of dishonest sizing information. This is an important process to understand because perceptions of deceptive retailer motives lead consumers to react negatively to the product and the retailer, regardless of the retailer's actual motives. Thus, this research utilizes attribution theory to examine perceived deception as a mediator between consumer cynicism (a dispositional trait) and consumer outcomes. The results reveal that at higher levels of consumer cynicism, prior knowledge of deceptive sizing practices has an amplifying effect on the influence of consumer cynicism on perceived deception, while retailer honesty with sizing issues helps to block this influence. Further, perceived deception leads to reduced consumer outcomes, confirming prior findings in the literature.     

How Consumer Ethnocentrism (CET), Ethnocentric Marketing,and Consumer Individualism Affect Ethnocentric Behavior in China

This study investigates how the value of consumer ethnocentrism (CET) and ethnocentric marketing affect consumers' purchase intentions for domestic and foreign brands in China. In predicting ethnocentric consumer behavior, past research has tended to focus on consumers' ethnocentric values rather than ethnocentric marketing stimuli. In addition, this study examines how the consumer value of individualism and collectivism (IC) affects ethnocentric choice behavior. An experimental study was conducted on 220 Chinese millennials, using fictitious advertisements. The study found that the CET value has moderate effects on consumer purchase intentions for foreign brands, while it strongly influences consumer purchases of domestic brands. In addition, the findings suggest that ethnocentric advertising may not encourage purchases of domestic brands, but can discourage foreign brand purchases. More significantly, individualistic consumers were found to show a greater preference for foreign brands and also their brand choices were less affected by the CET value and ethnocentric advertising.     

Consumer Network Wales

The Welsh Consumer Council launched its online interactive consumer network in July 2001 with the aim of linking up individual consumers across the country, stimulating discussion and debate on consumer issues and strengthening the voice of consumers in Wales. By October 2002, the network had recruited 300 members. The Council aims to reach a membership of 1000 by 2004. As well as individual consumers, the network has recruited 34 voluntary and community organisations that are committed to working with the Council to ensure that disadvantaged consumers without home Internet access can participate in the network At the heart of the network is a bilingual discussion area within the Council's one‐stop consumer information website where members can post their views, comments and observations on any consumer issue that concerns them. Over the past year, lively discussions have developed on subjects as diverse as IT and electronic communications, customer call centres, recycling, money‐making schemes and energy saving in the home. Early in 2002, the network began to run regular online surveys on topical consumer issues. The first survey asked about members’ experiences of returning goods and their knowledge of consumer rights. The second asked about members’ attitudes to recycling and reducing waste. Both surveys received a high level of response and provided valuable and up to date information on the experiences and views of consumers from all parts of Wales on these important issues. The continuing expansion of the consumer network is central to the Council work in helping to foster a consumer movement in Wales which is informed, responsible, demanding and assertive.