Low literacy,policy and consumer vulnerability: Are we really doing enough?

A perennial issue in transformative consumer research and public policy is the plight of low‐literate vulnerable consumers. Low‐literate consumers have been observed misinterpreting labels, misusing products and purchasing the wrong item, which leads to devastating outcomes as they continue to make poor decisions out of ignorance. Based on a thorough review of past studies on consumer literacy and vulnerability, we explore how stigma and attribution operate as underlying mechanisms for influencing how low‐literate consumers behave in the marketplace. This paper problematises blanket statements that all low‐literate consumers are vulnerable and addresses the possibility that universal policy actions may inadvertently create further marginalization for those it is meant to protect. Our paper contributes by introducing a new typology of low‐literate consumer vulnerability to challenge conventional understandings of who the vulnerable consumers are in relation to their literacy level and actual marketplace behaviour. From a policy standpoint, the insights gained from our review speak to the need for differentiating low‐literate consumers in terms of their status of vulnerability, which inform public policy initiatives and effective consumer education for their empowerment and protection.     

Critical consumer issues in St. Lucia: an examination of consumer challenges and related learning among rural adults according to income levels

Consumer education is a relatively new and growing interest in St. Lucia. Neither the government nor the National Consumer Association has established a consumer education programme to address the growing consumer concerns in the country. The purpose of this study was to examine critical consumer issues, related learning challenges and strategies among rural adults in St. Lucia according to income levels. Rural adult consumers are most disadvantaged in terms of levels of education, income and access to resources, which may help to prevent and mediate consumer concerns. The specific research questions examined were: (1) What is the nature of problems experienced by rural St. Lucian adult consumers in the marketplace? (2) How do rural St. Lucian adult consumers solve the challenges they encounter in the marketplace? (3) What is it like for rural St. Lucian adult consumers as they go about trying to learn to solve the consumer issues they face? and (4) What do rural St. Lucian adult consumers perceive to be the requisites for effective decision making in the marketplace? Data were collected using a questionnaire comprising of 29 questions divided into four sections (problems, strategies, solving consumer problems and making effective decisions) and two biographical questions. A total of 500 rural adult consumers were surveyed verbally through door‐to‐door contact. The findings of this study revealed that middle‐income rural adult consumers experience more problems in the marketplace than those with each lower or higher level of income. Middle‐income rural adult St. Lucian consumers in particular seek more information and are comfortable with using more strategies than the lower‐ and higher‐income rural adult consumers. This research gives us a better understanding of the problems faced by rural adult consumers based on their income. Research results will be useful to the government of St. Lucia and the National Consumer Association when they decide to establish an adult consumer education programme for St. Lucia.     

Consumer well‐being and social responsibility of subsistence entrepreneurs in subsistence marketplace

Business malpractices, such as the sale of overpriced, underweight and adulterated foodstuffs and essential commodities, can pose serious threats to subsistence consumers' wellbeing, given they are more vulnerable than their affluent counterparts. Drawing on 40 interviews with subsistence entrepreneurs in Bangladesh and Sri Lanka, our findings provide insights into the interplay between religiosity and social responsibility of entrepreneurs. We further explore how socio‐economic conditions and local embeddedness—two important characteristics of individuals in subsistence marketplaces—moderate the relationship between religiosity and social responsibility of entrepreneurs, providing implications for consumer welfare at the macro‐level. Our research makes a distinctive contribution to three streams of literature relating to social responsibility, subsistence marketplaces, and consumer affairs, with specific policy implications.     

The CSR's influence on customer responses in Indian banking sector

In the face of growing attention to corporate social responsibility (CSR) activities in the marketplace, this paper seeks to demonstrate how corporate social responsibility (CSR) initiatives influence customer purchase intention in context of Indian retail banking. Further, the impact of awareness as a moderating variable between CSR and purchase intention has been examined. The conclusion drawn from this study have important implications for Indian banks as they suggest that building a socially responsible image might have a favorable effect on consumer purchase intention. Findings suggest that corporate ability has a strong effect on customer purchase intention while CSR activities were found to exert influence on customer purchase intention in cases where the customer was aware of such activities being conducted. This paper contributes to existing CSR literature by offering a deeper understanding into CSR dynamics and its effect on consumer purchase intention. Further, the study tests the level of consumer awareness of CSR activities in a real market situation (not artificial or simulated) which has not been done in previous studies.     

Perceived Marketplace Influence and Consumer Ethical Action

The present work presents two studies exploring the impact of perceived marketplace influence (PMI) on consumer decisions to engage in ethical marketplace action. Study 1 shows that PMI is associated with positive (negative) word‐of‐mouth in response to the ethical (unethical) actions of an organization. Study 2 shows that PMI is associated with the purchase of and willingness to pay for ethical products Fair Trade and philanthropy‐linked ethical products. Differences emerge between the two dimensions of PMI (PMI Consumer and PMI Organization) based on the hedonic or utilitarian features of the products. Results also show autonomous motivation to mediate the relationship between PMI and ethical intentions. We conclude with discussion of the implications of PMI for policy and consumer well‐being.     

Information Search,Alternatives Evaluation,and Coping Mechanisms of Functionally Illiterate Consumers in Retail Settings: A Developing Economy Context

Little research has been carried out with regard to marketing to functionally illiterate consumers, despite the size and purchasing power of this market segment. This qualitative study examined the decision-making processes and coping mechanisms of functionally illiterate consumers in the South African grocery shopping environment. The findings provide insights that have important theoretical and practical implications for marketers, retailers, and policy makers. For functionally illiterate consumers, the information-search stage of the consumer decision-making process is either nonexistent or limited to a few trusted sources, such as friends and family, which often occurs only after a purchase has been made. Furthermore, these consumers face difficulties in a grocery store environment but have developed several coping mechanisms to compensate for their limited literacy skills.     

An investigative study of adult consumer education and lifelong learning needs in the United Kingdom and Latvia

Consumer education in Latvia is in the early stages of development and should be seen in the context of the rapidly changing society in the post‐Soviet era and the increasing influence of the marketplace, and Latvia's position as a new accession country. The Latvia University of Agriculture is in the process of developing an adult consumer education programme. A comparative study between the UK and Latvia was designed to test the hypothesis that many adult consumers lack knowledge and understanding of their consumer rights and responsibilities. A sample of adults in both countries completed a consumer rights questionnaire investigating attitude, knowledge and critical thinking ability. The UK questionnaire was modified, taking into account the different consumer environment in the two countries, to compare the need for adult consumer education in Latvia and the United Kingdom. In the United Kingdom results showed that the group overall were not confident that they knew enough about consumer rights and legislation or to resolve consumer problems and were unsure about their consumer responsibilities. Levels of knowledge were poor, leaving adults vulnerable to exploitation in the marketplace, uninformed about their responsibilities to voice dissatisfaction about goods and services, and unaware of how their consumer behaviour can affect the wider community. Adult participants in Latvia thought that they lacked education in consumer legal rights and responsibilities and did not have the necessary skills, knowledge and understanding to manage consumer problems effectively. Results in both countries indicate that adult consumer education is needed, supplemented by a comprehensive package of adult consumer education. Despite the cultural differences between the two countries, the analysis showed that similar adult consumer skills and attitudes were needed. This joint research has shown that this methodology could be used to determine adult consumer and life‐long consumer education needs in other European countries and internationally.     

Determinates of financial behavior: insights into consumer money attitudes and financial literacy

As consumer requirements for financial services permeate society, they link various financial institutions more closely together, developing divergent financial products. This research develops a conceptual framework for discussing consumer money attitudes, financial literacy regarding financial decisions, and financial behavior. Study findings suggest that consumers who have retention-planning and achievement-esteem attitudes toward money make high-risk financial decisions; anxiety toward money tends to exist mainly in low-risk investors. Financial literacy affects consumer financial behaviors, and demographic variables play segmentation roles. Theoretical contributions and management implications are provided in the study for related research, education departments and financial firms.     

Promoting energy efficiency in small island states: overcoming barriers to the adoption of compact fluorescent lighting in Saint Lucia

The ‘island factor’ refers to a series of shared energy‐related issues that many island nations face due to their isolation and limited population size. Under such conditions, one of the only ways to reduce energy costs for consumers is through energy efficiency – including the use of energy‐saving compact fluorescent light bulbs. This study uses consumer survey data to investigate how awareness, past purchasing behaviour, and demographic characteristics influence Saint Lucian consumers’ intentions to purchase energy‐saving compact fluorescent bulbs. The findings indicate that a lack of awareness and understanding of energy efficiency, combined with high product costs and a lack of product availability currently inhibit the adoption of compact fluorescent technologies by Saint Lucian consumers. Awareness of energy efficiency, income and geographic location are identified as significant factors related to increased use of and willingness to pay for compact fluorescent bulbs. In the discussion, possibilities for public education and cost subsidy for compact fluorescent bulb promotion are proposed.     

Why art matters: Artistic consumer‐entrepreneurship in subsistence marketplaces

This reflective essay explores the role art can play in subsistence marketplaces, focusing particularly on its role in consumer‐entrepreneurship. Using informal field engagement in Mexico, Tanzania, and Native American tribes, in dialogue with the literature, it poses three questions as the basis for a research agenda: How can consumer‐entrepreneurs preserve art and heritage to sustain socioeconomic value? What transformative role does art play in subsistence marketplaces for the consumers and entrepreneurs involved? How can indigenous consumers and entrepreneurs protect their cultural identity and sovereignty through art? Directions for future research include the need to better understand the role of assemblages and intermediaries for artisan consumer‐entrepreneurs, an issue with evident policy implications. As indigenous and near‐indigenous societies seek identity, meaning, and cohesion in a turbulent world, art can preserve, transform, and assert.     

Profiling demographic characteristics of alienated consumers

Alienation, a subject of considerable research in some behavioral science areas, has been receiving growing attention in relation to unfavorable attitudes toward the marketplace, consumer disgruntlement, and other aspects of consumerism. This paper discusses several elements of alienation adapted and applied specifically to consumers as they perceive the marketplace vis-à-vis themselves. These elements of alienation were examined in relation to demographic factors consisting of ethnic background, sex, age, income, formal education, and marital status. The results offer some insights into consumer alienation and into the feasibility of utilizing traditional demographic variables to identify consumer segments apt to be alienated from the marketplace. These results take on importance because general disgruntlement with the market- place was significantly related to alienation.     

Time price differentials in the rent‐to‐own industry: implications for empowering vulnerable consumers

Rent‐to‐own enterprises represent a lucrative and rapidly growing industry. They are of particular concern to social service agencies, policy makers and consumers because they target a vulnerable, economically disadvantaged segment of the population. This article presents an investigation of a major player in the industry in one US state that fell under scrutiny by the courts because of a question of whether it is a retail enterprise covered by truth in lending legislation. Findings indicate that the average time price differentials charged by the largest retailer in this state exceed by more than three times the regulated 30% cap on interest rates. Rent‐to‐own is an example where regulation must be put into place so consumers can make more informed decisions. Such regulation, however, must be accompanied by financial literacy education that will further empower vulnerable consumers in the marketplace.     

Voluntary simplicity: an exploration of market interactions

Voluntary simplicity is often considered to be a sustainable lifestyle phenomenon buttressed by environment‐friendly consumption practices. Voluntary simplicity is shaped by the individual as well as the society, and marketplace interactions often impact voluntarily simplified approaches to consumption. Pertinent, therefore, is a consideration of how voluntary simplifiers negotiate the tensions between marketplace interactions and decisions (not) to consume, as the exploration of interactions between consumption and non‐consumption choices has relevant implications for the advancement of sustainable consumption. Specifically, we seek to answer the following question: how have voluntary simplifiers in a rural context negotiated the relationship between voluntary simplicity and market‐based (non‐) consumption? This paper reports on a study of 28 rural voluntary simplifiers to explore the intersections between voluntary simplicity and rural markets. Findings highlight the convoluted nature and the multiple manifestations of voluntary simplicity, while the rural context allows an exploration of such tensions in relation to individual voluntary simplicity, local economy, supermarkets, fair trade and consumer culture.     

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.     

Consumer fraud and Latino immigrant consumers in the United States

Disadvantaged consumers are often the victims of consumer fraud; low‐income Latino a immigrants are especially likely to be victims due to their lack of English proficiency and inexperience in the local marketplace. A qualitative research study using purposeful sampling was conducted to identify areas of consumer fraud experienced by 45 Latino immigrants. Types of unscrupulous practices are identified, including sales of automobiles, prepaid telephone cards and counterfeit documents. Problems with fraud are discussed in terms of a model of disadvantaged consumers and implications for education are suggested to counteract the identified problems.     

The Role of Brand Communications in Consumer Purchases of Organic Foods: A Research Framework

Despite a high level of awareness about organic foods in the marketplace, consumer purchases remain relatively low. This article develops a research framework for translation of relatively high consumer awareness of organic foods to increased consumer purchases. Literature review reveals that both a lack of knowledge in how foods qualify as organic and consumers’ mistrust in the way organizations apply the word organic prevents consumers from engaging in organic food purchases. Furthermore, being organic is no longer enough as organic products have become commoditized in the marketplace. With such an increasing commoditization of organic products, there is a growing pressure for organics to more effectively differentiate themselves. Accordingly, there is a dual branding opportunity for upgrading the current state of consumer awareness into both a higher volume of purchases and expanding the consumer base. This article proposes a research framework utilizing brand communications that could play a central role in triggering higher levels of consumer awareness, translating into increased volumes of organic purchases. This research framework considers consumer benefits an antecedent to brand communications and organic knowledge and consumer trust the mediators in influencing consumer organic purchases.     

Do consumers care about food miles? An empirical analysis in France

We conducted two qualitative surveys to identify whether food miles, defined as the distance that foodstuff travels between the production location and the consumption marketplace, matter for French consumers. First, two focus groups with ‘conventional’ consumers show that distance is a multidimensional concept, both positively and negatively perceived, and that most consumers are not concerned by food miles and their subsequent environmental impact. Second, 10 face‐to‐face interviews with consumers of locally grown organic food demonstrate that these consumers purchase local food for other reasons than reducing ‘food miles’ and buy imported organic food in spite of increased food miles. We shed light on this situation using theoretical concepts from economics and psychology. Some implications for policymakers and marketers are stressed.     

Consumer education between ‘consumership’ and citizenship: experiences from studies of young people

The aim of consumer education has been mainly to teach and educate students to act as informed, rational and prudent consumers. This perception of consumption as reasoned behaviour or action is inadequate in the late modern society, where consumerism is first and foremost characterized by globalization, cultural change and the liberation of the individual. The results of a research study involving Danish pupils aged 12–19 years present a picture of consumption connected both to material and non‐material aspects of life. Consumption as such has a significant impact on and meaning for the individual: it becomes a means by which human beings communicate and interact. Consumption is part of children's and young people's education and socialization, and plays a role in the development of identity and self‐image. Institutional consumer enlightenment and the education of students in school stand in contrast to informal consumer socialization and the education of individuals. The aim of formal consumer education may be described as ‘educating for critical consumer awareness and action competence’. However consumer education finds itself in the dilemma between ‘consumership’ and ‘citizenship’. This pilot study is aimed at understanding consumer socialization in order to improve formal consumer education and to reflect on how empowerment becomes part of consumer education.     

Extreme exclusion and relative deprivation in subsistence marketplaces: A study in a refugee settlement in Nakivale,Uganda

We study how refugees in a settlement face extreme marketplace exclusion through three phases of qualitative research. Overlaying the context of subsistence marketplaces, such exclusion is accentuated by refugee status, fleeing from unimaginable suffering. We interpret our findings in terms of relative deprivation, or the state of feeling deprived relative to some social reference, often used to understand how consumers feel deprived in terms of their relative financial status. We extend relative deprivation theory in research, introducing extreme marketplace deprivation. Whereas most relative deprivation research emphasizes social comparisons to other people, our study of the refugee settlement demonstrates the adverse effects of intrapersonal relative deprivation, that is, feeling deprived relative to one's past. We develop a theoretical framework to demarcate types of extreme marketplace deprivation, classifying these experiences in terms of consumption and livelihood along three facets (material, social, and psychological). We derive implications for consumer affairs.     

Effects of financial education on sound personal finance in Korea: Conceptualization of mediation effects of financial literacy across income classes

This study analyzed the role of financial literacy as a mediator between financial education and sound personal finance to assess how financial education affects the soundness of personal finance. In particular, this study conducted three sets of mediation analyses using data from the 2014 Consumer Empowerment Index survey of the Korea Consumer Agency to verify whether the mediating relationship is valid across different income classes of the Korean population. The results suggest that financial literacy works as a mediator between financial education and sound personal finance in the high‐income class and the middle‐income classes. Therefore, policymakers should consider the limitations of financial education and financial literacy when addressing low‐income consumers.