Defining the Consumer Interest: Challenges for Advocates

From its birth, The Journal of Consumer Affairs has provided a forum for government officials, consumer activists, and academics to discuss the definition of the consumer interest and how best to pursue it. In the inaugural issue of JCA, published in the summer of 1967, three of the first four articles were titled “The View from Washington” (by Deputy Assistant Secretary of Labor David Swankin), “Is It Time to Re‐Evaluate the Consumer Protection Activities of the Federal Government?” (by Consumers Union president Colston E. Warne), and “The Consumer Interest—the Real Issue” (by Professor of Marketing Robert D. Schooler). When JCA began publication in 1967, a few landmark pieces of consumer legislation had already been passed concerning pharmaceuticals, cigarettes, and motor vehicles, but the heyday of the consumer movement—and consumer research—was just beginning. In his article, Warne wrote: “The time has come, I think, for consumers and consumer movements to face some highly unpleasant problems” (p. 24). Schooler chastised the federal government for being “misdirected toward real but secondary issues” (p. 40). Swankin called for an organization and a professional journal capable of creating “an intellectual climate in which the phrases ‘consumer interest,’‘consumer economics,’ and, yes, ‘consumer information’ can be developed and can flourish” (pp. 9–10). Nearly forty years later, and long after the zenith of the U.S. consumer movement, we still face a host of consumer problems and a federal government disinclined to address them. We do, however, have a respected journal in whose pages the consumer interest and consumer policy can be examined. On April 25, 2005, the University of Utah hosted a symposium on consumer policy in honor of the retirement of Dr. John R. Burton. John, who established the consumer studies program at the University of Utah, has devoted his career to teaching, research, and service that advance the consumer interest. Seven nationally renowned speakers, including professors Monroe Friedman, Loren Geistfeld, Jeanne Hogarth, Jean Lown, and Ivan Preston, presented papers pertaining to the consumer interest. Two of the seven papers are reproduced here. The first is by Stephen Brobeck, long‐time executive director of the Consumer Federation of America (CFA) and the editor of The Encyclopedia of the Consumer Movement. Dr. Brobeck's article examines how a major consumer advocacy organization like CFA decides what public policy positions are in the consumer interest. The article applies a general framework to the specific issue of automobile fuel economy standards. In the companion piece to this article, Michael Burton, an assistant professor of political science at Ohio University and the son of the symposium's honoree, draws on his experience as a congressional aide and vice presidential staff member to describe and defend the art of compromise as it applies to consumer politics. – Robert N. Mayer, University of Utah     

Are consumers' financial needs and values common across cultures? Evidence from six countries

Are consumers' financial needs, and financial values, the same or different across cultures? Two studies, with student (Study 1; n = 988) and non‐student (Study 2; n = 959) participants, explore the extent of equivalence, across six countries (Brazil, Russia, China, Taiwan, Tunisia and US), in financial need belief, and financial value, measurement models. The financial need beliefs, derived from self‐determination theory (SDT) principles, include financial self‐efficacy, financial autonomy, financial community trust and support; the financial values include materialism and financial altruism. Both the financial need and financial value constructs evidence configural invariance (similar factor structure), and factor invariance among student but not non‐student samples. The financial need constructs evidence full, and the financial value constructs evidence partial, metric (factor loading) invariance. Factor covariance invariance obtains for the financial need beliefs constructs but not the financial value constructs. Finally, neither financial need nor financial value constructs evidence scalar (intercept) invariance. These results provide partial support for extending SDT's hypothesis of universal human needs to the financial domain. In contrast, the financial value constructs of altruism and materialism are largely instable across cultures, suggesting that consumer views of giving, and the role of wealth in social status, differ between countries.     

Financialization and the non‐financial corporation: An investigation of firm‐level investment behavior in the United States

Changes in the portfolio and financing behavior of non‐financial corporations (NFCs) over the post‐1970 period in the U.S. economy point to the financialization of the NFC and raise the question of accompanying changes in fixed investment behavior. Using a firm‐level panel, this article econometrically investigates the relationship between financialization and investment, exploring the implications of changes in financing behavior, increasingly entrenched shareholder value norms and rising firm‐level demand volatility for NFC investment in the U.S. economy between 1971 and 2013. Shareholder value orientation is, in particular, identified as a characteristic of the post‐1970 U.S. economy associated with a statistically and economically significant decline in NFC investment rates. The stock of financial assets, conversely, is found to be a positive correlate of firm investment. The analysis also highlights key differences by firm size. In particular, shareholder value norms are found to primarily influence the investment behavior of large NFCs, while rising volatility most substantially impacts small firms.     

Exploring Attitudes and Affiliation Intentions toward Consumers Who Engage in Socially Shared Superstitious Behaviors: A Study of Students in the East and the West

Existing literature on superstitious beliefs focuses on consumer purchasing behavior. However, little is known about how superstition‐based consumption behaviors are socially perceived. This paper investigates students’ attitudes toward consumers who engage in socially shared superstitious behaviors. Two studies show that students from Eastern and Western countries have negative attitudes and lower affiliation intentions toward consumers engaging in socially shared superstitious behaviors. As predicted by social judgment theory, this effect is driven by perceived low competence but not by perceived warmth. These negative attitudes and lower affiliation intentions are moderated by the student's superstitiousness. The managerial implications of social perceptions regarding consumer superstitious behavior are discussed.     

German Consumer Decision‐Making Styles

The lack of previous relevant consumer research in Germany, together with the need to test the generalizability of consumer decision‐making styles in different countries and with non‐student samples, prompted an investigation of German shoppers. The original U.S. eight‐factor model could not be confirmed completely, but support was found for six factors: Brand Consciousness, Perfectionism, Recreational/Hedonism, Confused by Overchoice, Impulsiveness, and Novelty‐Fashion Consciousness. Variety Seeking was novel to Germany and replaced brand loyalty and price‐value consciousness factors found in previous countries. Explanations for the differences are discussed as well as the marketing implications.     

The financialization of the non‐financial corporation. A critique to the financial turn of accumulation hypothesis

One aspect in which non‐financial corporations (NFCs) are said to be financialized is that they have been increasingly engaged in financial accumulation from which they derive a growing proportion of financial income. This is what we call the financial turn of accumulation hypothesis. In this article, we show that the evidence used to sustain it, in the U.S. setting, has to be reconsidered. Our findings show that, contrary to the financial turn of accumulation hypothesis, financial income averages 2.5% of NFCs’ total income since the 1980s, oscillating since the beginnings of the 1990s until 2005 and then declining. In terms of assets, some of the alleged financial assets might actually reflect other activities in which NFCs have been increasingly engaged, such as tax avoidance, internationalization of production, activities refocusing and M&As.     

A cross‐cultural analysis of print advertising targeted to Hispanic and non‐Hispanic American consumers

U.S. Hispanics represent an important consumer segment in the North American market, but research in the area of U.S. Hispanic advertising remains limited. This study provides cross‐cultural analysis of print advertising targeted to Hispanic and non‐Hispanic American consumers in an attempt to explore the differences or similarities in their depictions of cultural values. The authors develop a scheme for content analyzing cultural values based on cultural theory literature. Results show meaningful differences in the core cultural values emphasized to target U.S. Hispanic consumers. The study has implications for marketers and academics who want to differentiate between culturally adapted advertising appeals for U.S. Hispanic and non‐Hispanic American consumers. The coding scheme developed in this study can help marketers identify and depict Hispanic cultural value appeals in their marketing communications. © 2009 Wiley Periodicals, Inc.     

Determinants of store patronage: The roles of political ideology,consumer and market characteristics

In this study, we investigate the roles of political ideology, demographic characteristics and market environment in determining households' store patronage behavior. We measure two key dimensions of store patronage—store format preference and store loyalty trait—of 23,092 U.S. households using purchase data from Nielsen Homescan panel. We use county-level vote share of the Republican and Democratic parties across three U.S. Presidential elections to measure political ideology. We obtain measures of demographic characteristics and market environment from the Nielsen panel and the U.S. Census Bureau. Using fixed-effect regression models, we find systematic association between political ideology and households’ store patronage. Our findings contribute to the growing literature in marketing on the effects of political ideology on consumer behavior and have important implications for store loyalty programs, cross-selling strategies and store location decisions.     

Combining Formal Controls to Improve Firm Performance

Formal controls are an essential part of organizational design, and are theorized to positively influence organizational performance. Mello and Hunt ([2009] Transportation Journal, 48:20–39) were the first to suggest using formal controls to influence truck drivers' behavior. Extending the salesperson control literature, they documented an underresearched method of formal control that we term technology control, whereby firms use on‐board and communications technology to influence drivers. We build on their work by investigating the contingent effects of formal controls that influence the behavior of truck drivers and thereby influence the operational performance of firms in the U.S. motor carrier industry. Our work integrates the monitoring aspect of agency theory with the theory of operant conditioning and the theory of psychological reactance to develop a rationale for hypothesized contingent effects of formal controls on motor carriers' operational performance. We collected primary data pertaining to the controls used to influence truck drivers' behavior from a large sample of U.S. motor carrier firms. The results of our analyses using nonlinear structural equation modeling suggest a complex set of relationships between formal controls and operational performance. Our results shed light on scenarios where using technology to monitor driver behavior can result in positive and/or negative organizational outcomes.     

Information Sensitivity Typology: Mapping the Degree and Type of Risk Consumers Perceive in Personal Data Sharing

Surveys show significant public concern regarding information privacy. To better understand how consumer concerns vary by type of personal data, the authors created a typology of information types based on perceived associated risks. In a national consumer survey, 52 information types were analyzed along four perceived risk categories (physical, psychological, monetary, and social), consumers' overall sensitivity regarding the information, and their willingness to provide it. This resulted in six highly distinctive clusters—Basic Demographics, Personal Preferences, Contact Information, Community Interaction, Financial Information, and Secure Identifiers—organized around similarities in perceived risk profile. Additionally, consumer segmentation analysis shows rank order of cluster risk perceptions to be stable, even when perceived magnitude and overall risk propensities change by segment. This research advances the conversation from an outdated PII/non‐PII framework to a more meaningful, consumer‐based understanding of the perceived risks associated with different types of personal information.     

Getting Cinderella to the ball: putting education at the heart of financial education

The recent banking collapse has called into question all activity related to financial services, from regulation to consumer protection, to financial education. Since the Organisation for Economic Co‐operation and Development's 2005 ‘Recommendations on Principles and Good Practices for Financial Education and Awareness’, there has been an increase in financial education activity, yet the world is a different place. The role of financial education, its scope and its potential, must now be critically analysed to help ensure its efficacy in supporting financial rectitude in challenging times. The authors draw on several years’ experience in the design and delivery of financial education programmes and debt prevention interventions, informed by their perspective as educationalists. In this theoretical commentary, they seek to influence the discourse on financial education, and position education as a foundational discipline in financial education. The authors identify potential risk to the future of financial education, engaging with the literature that questions the validity of financial education as an endeavour in consumer protection, which points to the dearth of empirical evidence to support its effectiveness, and which queries the efficacy of resourcing such initiative development. They argue that financial education focused on consumption cannot serve the citizen; rather, financial education must be rooted in the needs of the individual. Through these analyses, the authors highlight areas of further research, which when undertaken, can lead to more effective outcomes for all. This article introduces the concept of financial edification as an approach to financial education, predicated on the needs of the individual. In repositioning financial education as a pedagogical endeavour, the article asserts that financial education, when not driven by education, cannot achieve its true potential; it is time for Cinderella to go to the ball.     

The effect of activity identity fusion on negative consumer behavior

Negative consumer behavior is an important research topic as it explores consumer behaviors that threaten a brand's image and financial stability. However, prior research offers conflicting findings on whether a strong consumer‐brand relationship hurts or protects a brand after a market disruption or a brand transgression. To provide clarity on this issue, this work argues that disrupting the consumer‐activity relationship motivates consumers to reaffirm and protect their identity, thereby leading to negative consumer behavior. The data reveal that, after a brand‐initiated market disruption, consumers with high activity identity fusion are more likely to spread negative word‐of‐mouth, boycott the brand, and avoid repurchasing the brand in the future. Moreover, the data suggest that high brand identity fusion protects the brand during market disruptions; therefore, prior conflicting results may be due to the fact that the consumer‐activity relationship was not accounted for. Theoretically, this work establishes that consumers' relationship with their consumption activities has significant impacts on consumer behavior. Brand managers and marketers are urged to develop strategies that focus on strengthening the consumer‐brand relationship and not the consumer‐activity relationship.     

Investigating consumer binge-watching behavior: A valence framework perspective

Binge-watching (BW) behavior has emerged rapidly in recent years. However, a comprehensive understanding of how BW is influenced and how it has changed is lacking. This study uses the valence framework to hypothesize the effects of positive valences (advantages) and negative valences (drawbacks) on consumers' tendency of BW through the mediating effects of consumer attitudes toward BW and tests the role played by consumers' self-control in the association between consumer attitudes toward BW and the tendency of BW. The results from the survey data analysis (N = 454) identify three negative valences (depression, loneliness, and social problems) and four positive valences (enjoyment, passing time, stress relief, and social interaction) that influence consumer attitudes toward BW. In addition, we confirm a U-shaped relationship between consumers' attitudes toward BW and the tendency of BW and find that consumers’ self-control has a moderating effect on this U-shaped association. Theoretically, we extend the valence theory into the study of BW behavior and investigate the specific positive and negative valences in this area. Practically, our findings could help broadcasters design strategies to promote BW.     

Trust,Commitment, and Older Women: Exploring Brand Attachment Differences in the Elderly Segment

Understanding older adults’ product consumption behavior is of high importance to consumer and marketing research. Prior studies have mainly focused on older adults’ cognitive decline and compared their behavior to that of younger consumers. A neglected area of research has been older consumers’ brand attachment that is associated with potential differences between consumers in their fifties and in their seventies. In this article, the authors provide insights into the under‐researched field of elderly women's brand attachment. Drawing on socioemotional selectivity theory, a shift toward emotional aspects in brand relationships is proposed. A model involving trust and commitment processes is developed and empirically tested in a survey among 341 older women. Moderator analyses reveal significant differences between the “younger elderly” and the “older elderly” in relationships among self‐concept connection, partner quality, trust, and commitment. For the younger elderly, how a brand is (based on trust judgments) seems to be more important. For the older elderly, what a brand does in its role as relationship partner becomes more relevant.     

Segmenting Green Consumers in the United States: Implications for Green Marketing

The purpose of the current study was to segment U.S. consumers into four distinct clusters based on their beliefs and motives regarding pro-environmental consumer behavior. Using a nationally representative sample of U.S. adults from Experian Simmons (N = 22,348), this study revealed that: (a) there are four clusters of consumers in the United States with a unique set of beliefs and motives regarding consumer environmentalism; (b) the clusters have distinct demographic and media usage profiles; and (c) the groups have varying responses to the industry's initiatives to protect the environment. Implications of the research are discussed in light of developing message and media strategies for green marketing.     

The Effects of Vertical Individualism on Status Consumer Orientations and Behaviors

Values have been shown to explain advertising response and consumer behavior. Expanding the individualism–collectivism cultural framework, this research primarily focuses on the vertical individualism (VI: emphasizing independence and competition) value given its prevalence in the U.S. culture. Results of a survey among a national U.S. sample (a pilot study) showed that VI values were positively related to status consumer orientations, including tendencies to be brand conscious, buy branded products, and shop at upscale retail establishments. Moreover, in two experiments, the causal impact of VI values on status consumer orientations and behavior was demonstrated. Specifically, Study 1 showed that participants who were primed with VI values via a campus scenario (vs. control) indicated higher ratings of status consumption, brand‐buying behavior, and brand consciousness. Study 2 revealed further that an incidental exposure to a news story reflecting VI values (vs. horizontal collectivism values emphasizing cooperation and interdependence) influenced participants’ choices of a pen. Theoretical contributions to the study of values, advertising, and consumer orientations and practical implications for marketing are discussed.     

With the best of intentions: a large sample test of the intention‐behaviour gap in pro‐environmental consumer behaviour

Many consumers intend to make pro‐environmental purchases; however, this is not always what occurs. A gap exists between consumer intentions to purchase environmentally friendly products and their actual purchase behaviour. The current study uses a large sample of Australian consumers (N = 772) to test Carrington, Neville and Whitwell's (2010) conceptual model of the intention‐behaviour gap. Responses showed that implementation intentions mediated the relationship between intention and pro‐environmental consumer behaviour. Behavioural control and environmental involvement were found to moderate the relationship between implementation intentions and behaviour. Shopping context was found to moderate the relationship between intention and implementation intentions. The findings have theoretical implications for furthering understanding of pro‐environmental consumer behaviour, and practical implications regarding how to generate socially beneficial behaviours.     

Visualizing financial success: planning is key

Recent economic troubles in the US and abroad highlight the importance of family financial capability, including an understanding of financial markets. Financial capability is the foundation for desired financial behaviours, such as saving, budgeting, using credit wisely and planning. Study participants, a subsample of respondents to a Turkish university financial literacy survey (n = 374), who reported uninterrupted income for a 3‐year period were grouped as ‘planners’ and ‘non‐planners’. These groupings allowed examination of the relationships between planning, financial management decisions, and differential outcomes in daily household financial well‐being. The practice of preferred financial management behaviours was predictive of debt. This research makes a unique contribution to the literature, demonstrating the importance of uninterrupted income over income amount in support of the planning process. Findings of this study have implications for professionals in the family and consumer sciences field and other practitioners assisting consumers with improving financial management outcomes.     

Impact of U.S. Consumer Motivations to “Buy or Not Buy American”

Abstract

This study explores the impact of U.S. consumer motivations on cognitive and affective bases of purchasing or not purchasing American made products. Four motivational components were identified related to national pride, perceptions of product superiority, views regarding global economy, and product availability. Consumers' feelings associated with national pride/stronger economy and the disbelief that foreign products are better were found for the most part to be major reasons driving loyalty of U.S. consumers to purchase U.S. made products. However, support exists for cognitive acceptance of a global economy as evidenced by owning a foreign produced product and reduced feelings about national pride. Retailers should capitalize on these consumer beliefs if employing a “buy American” promotional by avoiding strong appeals to consumer ethnocentric tendencies. As such, promotional efforts by retailers should appeal to American pride in being able to compete on quality without crossing over into blatant flag-waving appeals that could backfire.     

Measuring consumer vanity: A cross‐cultural validation

Given the unmistakable trend toward a more integrated global economy and the tremendous impact of consumer vanity on demand for countless goods and services, there exists a need for more cross‐cultural research on the important psychological construct known as consumer vanity (Netemeyer, Burton, & Lichtenstein, 1995). This article examines four components of the vanity construct: appearance concern, appearance perception, achievement concern, and achievement perception. To test the vanity construct cross‐culturally, a survey was undertaken in the United States and China. This article illustrates the use of the comprehensive analytical framework proposed by Steenkamp and Baumgartner (1998) to assess measurement invariance in cross‐cultural consumer research. The results provided a rigorous cross‐cultural validation test of the vanity scale that has implications for both academics and practitioners in cross‐cultural consumer research and marketing. © 2006 Wiley Periodicals, Inc.