Poverty,consumption, and counterintuitive behavior

The consumer behavior field has a long history of looking at impoverished persons with low socioeconomic status, as well as the circumstances within which they seek, acquire, and use goods and services. Over time, these investigations have moved from studies of domestic or US subpopulations to global investigations at the base-of-the-pyramid. The underlying premise is that the poor desire the same cornucopia of goods and services as more affluent counterparts, seeking alternative ways to enter their material worlds. However, studies have suggested that consumers who live in relative poverty, or below their societal consumption adequacy baseline, may think and behave differently than other, more affluent consumers. To consider one possible example, we examine the relative healthfulness of food choices by consumers in a participant-subject pool compared to individuals living in an impoverished community. For another comparison, a group of participants from the same pool was also selected to represent lower-income individuals. The results show major differences among them, revealing insights about impoverished consumers and the usefulness of sampling frames to study the poor.

     

Poverty as we never knew it: THE source of vulnerability for most of humankind

ABSTRACT

Most of humankind lives in poverty. Over 1.2 billion people survive on less than $1.25 per day, and around 2.7 billion people survive on less than $2.50 per day. Of course, these statistics do not take into account those living in relative poverty within the very highest development nations in the world. Yet few within entitled sectors of the global economy have had much to do with people living in poverty, except for occasional and indirect contact. Even basic ideas about poverty lack clarity; for example, what is the line between poor and not poor both within and among countries? Is it only about income or do other resources matter or act as substitutes for money when impoverished consumers engage their markets? Is poverty in the USA the same or different than poverty in Sub-Saharan Africa? Answers to such questions are provided in this commentary through an examination of three different research projects conducted in poverty communities. Together, they reveal distinct patterns of results between more affluent and more impoverished consumers across the globe.     

Why does not everybody purchase fair trade products? The question of the fairness of fair trade products' consumption for consumers1

Current statistics show that more than three out of four people in France have heard about fair trade. However, fair trade goods are purchased in significantly higher proportions by executive class people, individuals with a postgraduate education, urban dwellers and high‐income earners. Why does not everybody purchase fair trade products? An important question follows: is fair trade not really fair for consumers? This paper seeks to gain deeper insight into what social features give rise to the consumption of fair trade goods using quantitative and qualitative data to verify the reasons for which fair trade goods are consumed by particular groups in society. It shows that the lack of access to information and financial resources can explain consumers' refusal to purchase fair trade products. But this explanation is incomplete, as the meaning given by consumers to their consumption appears to be a key‐factor to understand their behaviour: refusing to buy fair trade goods can be a deliberate choice.     

Retailing to the “grey pound”: Understanding the food shopping habits and preferences of consumers over 50 in Scotland

The number of older people is growing globally and therefore there is an implication for providing products and services to facilitate access to nutritious food, considered fundamental for maintaining health and independence. Historically, older consumers have been unattractive to marketers, however improved finances and lifestyles indicate the “grey pound” has the potential to become lucrative. This exploratory research seeks to identify the current expectation of Scottish older consumers in relation to the products and services available in the supermarket and food retailers. A questionnaire was distributed to participants aged over 50 years in Scotland to voice the opinion of the older consumer in relation to shopping experience and availability of product. The results support previous research indicating the improved lifestyles of older consumers, demonstrating that previous perceptions of older people as impoverished and immobile are not representative of this group. This study contributes to the demand for more information on older consumers׳ food shopping habits and preference in Scotland. It attempts to provide useful recommendations for supermarkets and food retailers in fulfilling the needs of this rising consumer segment. This research concludes that supermarkets could improve access to both products and services to meet the demand from this growing segment of society, through better understanding of their requirements in terms of customer service, shopping experience, product size, price, access and mobility.     

The effects of possession- and social inclusion-defined materialism on consumer behavior toward economical versus luxury product categories,goods versus services product types,and individual versus group marketplace scenarios

The paper builds on and extends the current understanding of materialism by investigating the effects of two forms of materialism (i.e., possession- and social inclusion-defined) on consumer behavior (i.e., purchase and patronage) toward products of different categories (i.e., economical versus luxury) and types (i.e., goods versus services) in different marketplace scenarios (i.e., individual versus group). Using data partitioning on a random sample of 323 consumers to generate usable cases for three interrelated studies, the paper reports that the effects of possession- and social inclusion-defined materialism are consistently accentuated in the purchase of luxury goods rather than economical goods, whereby consumers with high levels of possession- and social inclusion-defined materialism are more likely to purchase luxury goods than consumers with low levels of possession- and social inclusion-defined materialism. However, the paper finds that possession- and social inclusion-defined materialism have no significant effects on the individual and group patronage of economical and luxury services. The paper concludes with the implications of these findings for theory, practice, and future research.     

Consumer values,motivation and purchase intention for luxury goods

There is considerable ambivalence in how different societies and cultures relate to the consumption of luxury goods. Thinly focused in the literature are Islamic societies (with rapidly emerging ‘super-rich’ consumer segments) where the concept of luxury may be in tension with religious values. Set against this background, this paper investigates how consumer values and motivation influence purchase intentions towards luxury goods. Based on a sample of 400 respondents drawn from Morocco and applying logistic regression models, the paper finds correlations between the intention to buy luxury goods, motivation and personal values. Paradoxically, the influence of religion appears to diminish as consumer affordability of luxury goods increase. Partly due to globalization of markets and impacts on consumer values, Moslems are not fundamentally different from western consumers with regard to predispositions towards luxury consumption. Potential impacts of religion on luxury consumption attitudes and personal values appear to be moderated by the global consumer culture. The results also show an important gender underpinning especially when considered alongside perceived gender biases in consumption decision-making in many Islamic countries. Regarding the nature of purchase behavior women were found to be more positively disposed to impulse purchasing of luxury goods compared to men while more educated people, generally, indicated a greater tendency towards rational than impulse buying decisions.     

Social rights, essential services, and political mobilization in post-apartheid South Africa

This paper discusses movements that organize constituencies in order to allow them access to the consumption of goods and services, while rejecting at the same time their identity as consumers. Instead, they base their claims on people’s identities as citizens of the state and members of communities. Putting forward the notion of social rights, the paper examines how movements operating among marginalized communities in the post-colonial world work to define rights and entitlements, and use these to mobilize for enhancing the delivery of social services. In particular, the focus is on rights to land and to public utilities (water and electricity) in post-apartheid South Africa. Examining these in the context of political transition, the paper looks at different legal and political strategies, and the ways in which they draw on and shape discourses of power, rights, and social consumption. It concludes that meaningful social change and effective service delivery require a combined strategy, working with the courts and legal professionals, together with popular constituencies, the media, civil society organizations, academics, and state officials.     

To Groupon or not to Groupon: The profitability of deep discounts

We examine the profitability and implications of online discount vouchers, a relatively new marketing tool that offers consumers large discounts when they prepay for participating firms’ goods and services. Within a model of repeat experience good purchase, we examine two mechanisms whereby a discount voucher service can benefit affiliated firms: price discrimination and advertising. For vouchers to provide successful price discrimination, the valuations of consumers with access to vouchers must generally be lower than those of consumers who do not have access to vouchers. Offering vouchers tends to be more profitable for firms that are patient or relatively unknown, and for firms with low marginal costs. Extensions to our model accommodate the possibilities of firm price reoptimization and multiple voucher purchases. We find potential benefits of online discount vouchers to certain firms in certain circumstances, but vouchers are likely to increase firm profits under relatively narrow conditions.     

Doing good and doing business at the bottom of the pyramid

There is an ongoing debate among scholars regarding the existence of a fortune at the bottom of the income pyramid. While some scholars argue that there is a profitable market at the pyramid base, others refute this proposition, arguing that targeting poor people as customers could lead to unethical business practices and further their exploitation. With the aid of mini cases, this article explains that there is indeed a fortune to be made at the base of the pyramid but that good fortune can be created for both corporations and poor people if the population at the bottom of the pyramid is treated as suppliers, producers, co-owners, and/or employees rather than as mere consumers. However, in terms of consumers, there is a market for firms at the base of the pyramid through which they can earn profits and simultaneously help eradicate poverty, mainly by lowering the cost structure for poor people. In other words, firms that can reduce poverty and provide cost-effective utilitarian goods and services to poor people have more to gain from such individuals than those firms that provide more luxurious goods and services or offer goods with mere aesthetic or emotional value. With the help of mini cases, this article explains four measures firms can use to create fortunes for themselves as well as for poor customers by avoiding affordability and adaptability traps.     

Identification and Aftermarket Personalization with Durable Goods

Blending elements of the heuristic–systematic model and social identity theory, the authors extend theory by exploring the role of intimacy as a key boundary condition for identification (ID). Specifically, this research illustrates how intimacy affects the relationship between brand characteristics (prestige and distinctiveness) and ID. Further, the authors explore the relationship between ID and aftermarket spending on accessories. In a consumer durables setting, the authors conducted a field study with 1,193 consumers and matched customer perceptions with their actual retail spending on aftermarket goods. The results suggest that an individual's intimacy with a brand may affect how prestige and distinctiveness shape their ID. In addition, results show that the relationship between ID and customer aftermarket spending is moderated by a customer's level of satisfaction. Managerial implications of the findings are also outlined.     

Social marketing and consumers’ experience of lipophobia

Modern societies are lipophobic: they express a deep anxiety about fat and fatness. On the other hand, the public discourses about health and well being, though biased towards lipophobia, are far from unanimous. The general question is how consumers experience and negotiate contradictory messages of hedonism and ascetics from commercial and governmental agents? This study more specifically examines the hypothesis that the governmental campaigns and official messages mediated through TV, newspapers and other media are largely failing their target, since they tend to have the biggest impact on people, that do not have a serious weight problem, but who nevertheless perceive themselves to be overweight. This is investigated through an adapted use of the Zaltman Metaphor Elicitation Technique approach with 20 younger female informants as well as a set of interviews with selected medical and political experts and representatives of consumer groups. The results provide a culturally rooted image of consumers’ fat intake and dietary practices as well as an attempt to de‐stigmatise consumers’ body imagery, informing future food policies and the food industry's satisfaction of public and private interests in consumers’ dietary patterns. This ends up in a critique of a certain approach to social marketing in the food domain. Rather than focusing on informational campaigns spreading messages that are already known to most people, more efforts should be put into the basic build‐up of a better general food culture – one that stresses quality over quantity and which is lipo‐conscious rather than lipophobic.     

Absolute and Relative Restriction and Consumer Behavior: Implications for Understanding Global Consumption

Our premise is that researchers have much to gain from an understanding of the global marketplace experiences of impoverished consumers. We argue that influences of absolute and relative restriction, across peoples and societies, are particularly critical. Therefore, this research makes progress by evaluating consumer data from diverse cultures and nations using hierarchical linear models, revealing ways restriction through poverty and consumption impacts well‐being. We find that understanding both absolute and relative poverty is necessary for a more complete picture. Specifically, interactions show that absolute restriction moderates relationships between relative restriction and consumption and well‐being by muting or exacerbating the effects.     

The impact of consumer local engagement on local store patronage and customer satisfaction

Abstract

This paper examines the drivers of local grocery retail patronage. Drawing on institutional and social network theory literature, we develop a framework to investigate how consumers’ personal values and engagement with local communities affect their satisfaction and local store patronage. We test our model with survey data on 1504 Finnish consumers. Our results show that the relationship between customer local engagement and local retail patronage is indirect rather than direct, and it is mediated by the vitality of local services, social interaction, and consumer satisfaction.     

Consumer intentions to engage in s-commerce: a cross-national study

Social media has reached global proportions; yet, little is known about how consumers engage with firms in ways that lead to social commerce (s-commerce) – an emerging area of importance in the literature. This study addresses this gap and extends previous research by examining factors that influence consumers’ intentions to engage in s-commerce in four countries: Chile, Spain, South Africa and Australia. Specifically, this study develops and tests a model of consumers’ intentions to engage in s-commerce through brands’ Facebook pages incorporating personal variables (involvement in brands’ products and services, satisfaction with brands’ Facebook page), trust variables (message credibility of Facebook posts, trust in firms’ Facebook) and social variables (peer communication, social media dependency, online social interaction propensity) on predicting intentions to purchase products and services through brands’ Facebook pages if s-commerce was available to them. The findings show that the main drivers of s-commerce engagement are message credibility, trust in the brands’ Facebook, involvement, peer communication and online social interaction propensity, as influencers of consumer satisfaction with brands’ Facebook and social media dependency, which in turn drive intentions to engage in s-commerce. Contributing to theory and practice, these relationships are discussed for the four countries involved in the study.     

Marketing luxury services beyond affluence in the new normal: Insights from fine dining during the coronavirus pandemic

The market for luxury is no longer exclusive to the affluent society and the prevalence of conspicuous consumption among the mass society is a testament to the rise of mass prestige (masstige). Of particular interest in this study is fine dining, a luxury service that consumers pursue and enjoy in the hospitality industry. Though many studies on luxury goods avail, few studies have investigated luxury services such as fine dining, with little insights on the impact of the coronavirus pandemic on its consumption. We argue that research in this direction is important given the unprecedented impact that the pandemic has had on humanity and the need to respond to potential changes in customer expectations for luxury services such as fine dining in a post-pandemic era. Hence, in this study, we investigate the antecedents and consequences of customer satisfaction with fine dining using a Delphi study to acquire and examine field data from customers who continue to dine in fine-dining restaurants during the pandemic. Our findings suggest that fine diners place an emphasis on food quality (sensory experience, satiety value, menu selection), hygiene, and price when evaluating their satisfaction of the fine-dining experience during the pandemic, which significantly influences their future recommendation of the fine-dining restaurant to others. No significant differences in customer behavior based on income were observed, thereby lending credence and support to the idea of masstige marketing.     

Self-expressiveness in shopping

Some people experience self-expressiveness in shopping. Self-expressiveness in shopping is defined as the degree to which consumers they think shopping activity is an important part of their self-concept. This paper reports on the testing of a model dealing with antecedents and consequences of self-expressiveness in shopping. Based on eudaimonistic identity theory, we hypothesized that feeling of self-expressiveness in shopping is influenced by consumers' flow experiences in shopping activities, self-realization potential through shopping, and effort expended through shopping. We also hypothesize that self-expressiveness in shopping increases overall life satisfaction, mediated by perceived impact of shopping on life satisfaction. The model was tested using a panel of 5440 shoppers. The results provide good support for the model. Managerial implications are discussed in addition to avenues for future research.     

Corporate social responsibility: Findings from the Chinese hospitality industry

The study investigates the impact of corporate social responsibility (CSR) on consumers’ attitudinal and behavioral responses, factors closely related to a firm's social and economic performance, using data from 451 customers of three hotels. We also test the universality of such impact across various consumer groups. Results show that CSR positively affects perceived corporate reputation and customer satisfaction, which in turn, significantly affect customer commitment and behavioral responses (i.e., loyalty intentions and word-of-mouth). Perhaps more importantly, the role of CSR is not universal across consumer groups. Particularly, consumer income seems to moderate the relationship between CSR and perceived reputation. Specifically, the positive effect of CSR on perceived corporate reputation is more salient among people with a higher income. Managerial implications are discussed.     

Who's got my back? Comparing consumers' reactions to peer-provided and firm-provided customer support

This study demonstrates that when an individual encounters a product-related problem, fellow consumers (i.e., one's peers) have a unique advantage in providing social support to the affected consumer. Specifically, we find that social support can be a dominant driver of consumer satisfaction when the risk of customer defection is at its highest (i.e., following an unsuccessful attempt to solve the consumer's problem). Using real-world data from an online support community, a pilot study finds that if the problem that a consumer faces goes unsolved, satisfaction is greater when consumers receive peer-provided versus firm-provided support. Study 1 replicates this finding in a controlled experiment that realistically simulates an actual customer support incident in real-time. Study 2 identifies social support as the mechanism that underlies this effect and investigates whether firm employees can take steps to appear more customer-like and thereby replicate the advantage of peer-provided support. Finally, Study 3 reveals an alternative strategy (i.e., utilizing multiple employees) that firms can use to enhance social support and provides evidence that peer-provided support not only enhances satisfaction but also positively influences consumers' behavioral intentions.     

Consumer behaviour and services: A review

This article reviews the current literature in the fields of consumer behaviour and the marketing of services in order to examine the main issues facing the consumer in purchasing services, as opposed to goods. Five distinguishing characteristics of services are discussed and the implications of these for the consumers are placed within the information processing model of consumer behaviour theory. The article suggests that there are particular problems for consumers in acquiring effective information regarding services, making comparisons on the basis of that information and subsequently evaluating the service encounter. It is our contention that unless consumer responses to the particular problems associated with services are clarified, service marketing may be in danger of pursuing provider‐orientated solutions rather than understanding the actual nature of the consumer decision process when purchasing services.     

Barriers to Elderly Consumers’ Use of Support Services: Community Support in Japan’s Super-Aged Society

ABSTRACT

Rural areas need support services to help elderly people sustain their ordinary lives, especially in light of today’s aging societies. In Japan, nonprofit organizations and residents’ associations, which are based in local relationships, provide support services aimed at helping the elderly with their daily buying behavior. This study provides a comprehensive understanding of the barriers preventing the use of such support services. We collect 133 respondents from semi-structured interviews through door-to-door visits using snowball sampling to show that there are three such barriers: lifestyle, capability, and trust. Furthermore, we discussed measures to reduce these barriers using our results of correlation analysis and analysis of variance. Our findings have implications for a new direction in social marketing for elderly people. As societies continue to age and highly accessible services become ever more necessary, the insights of our study will be applicable not only in Japan but across the world.