The morality of spending in Finnish youth consumer culture

This article discusses the morality of spending (i.e. the unnecessary spending) as well as the freedom of spending in Finnish consumer narratives written by 16‐ to 19‐ year‐old pupils. First, the study explores different meanings of the unnecessary spending discourse. Second, the study argues that young consumers are using a wastrel metaphor (i.e. a squanderer, a prodigal son/daughter) as a symbol of liberation from the shame of spending. A narrative research approach is applied for the collection and analysis of data and illustrating the results. The qualitative data were collected in five upper secondary schools between November 2001 and May 2002. The morality of spending comprises various significances, although the discourse is often pleasure‐oriented for youth. Some youngsters define the unnecessary spending as a criticism of the consumer society. Furthermore, the discourse strengthens self‐control as well as helps to arrange both positive and negative consumer experiences. Thus, the morality of spending is a part of the process of growing up as a consumer and constructing a consumer identity.     

Global convergence of consumer spending: Conceptualization and propositions

The convergence versus divergence debate has persistently presented a puzzle in the scholarly literature. Forces of globalization created a wave of convergence. Yet, the recent worldwide events have changed the course of globalization, slowing its seemingly unavoidable forward direction. It is, therefore, incumbent upon international business scholars to reexamine the convergence versus divergence debate in the contemporary world economy. Despite the central role that global convergence plays in international business decisions, the literature is lacking a conceptualization of the convergence construct in terms of consumer spending behavior. Offering a new perspective derived from the convergence-divergence-crossvergence (CDC) framework and the coevolution theory, the authors define and conceptualize the convergence construct associated with consumer spending behavior. The proposed conceptual framework is comprehensive, offers refinements to the convergence phenomenon, and leads the way for further development of new theories in the international marketing domain.     

The effect of weather factors on restaurant sales

Weather factors have been shown to affect human behavior and mood. On the other hand, mood has a strong effect on total demand and demand for specific products. In this study, we have tested the effect of 17 different weather factors on the demand for specific restaurant menu items. We have also tested the effect of weather factors on the demand for different menu item categories, on hot and cold, and light, medium, and heavy menu items. The results indicate that different weather factors have different effects on different menu items and that the sales of some items are more affected by weather while others are not affected. These results can be used in the process of menu engineering and for the differential pricing of menu items according to the changes in weather factors.     

The effect of duration metrics on consumer satisfaction

Consumers increasingly feel that time is scarce. To guide time expectations, many marketers have begun communicating duration metrics—information about how long most consumers typically spend on a given activity. Despite the rising prevalence of duration metrics, little is known about how they shape consumption experiences. Five experiments and an analysis of digital engagement data from articles on a popular online publishing platform show that longer (vs. shorter) duration metrics enhance satisfaction and word-of-mouth after an activity is completed. Subjective time perceptions underlie these effects, such that longer duration metrics make consumers feel like they have spent more time on a given activity, and consumers infer their ex-post satisfaction from the amount of time they feel they have invested. Thus, this research provides insight into how duration metrics operate and challenges the intuition that consumers prefer activities that demand less of their time.     

The effect of category label specificity on consumer choice

The current research demonstrates the category specificity effect, whereby an individual’s choice of options belonging to different categories depends on whether the options are categorized in a specific or abstract manner. In particular, when categories do not contain labels that specifically convey category knowledge, individuals tend to view the assortment as having more varied alternatives, leading to greater variety-seeking. Three laboratory studies employing the context of food menu selections were conducted to test our hypotheses. Study 1 and Study 2 reveal that, given the identical assortment of dishes, individuals are likely to order a greater variety of dishes when the menu contains no category labels or abstract category labels, as opposed to when it contains specific category labels. Furthermore, the use of abstract category labels increases the number of dishes individuals order. We further show that this category specificity effect on choice is mediated by the enhanced perception of variety offered in the menu. Study 3 demonstrates that the effect of category specificity is moderated by an individual’s familiarity with the food category.     

The effect of consumer emotional disclosure on fairness perceptions

One way consumers cope with an unfair consumption experience is to express how they felt about it. Understandably, these disclosures are often rich with emotion. Does emotional disclosure in this context influence consumers' perceptions of fairness? Drawing hypotheses from the emotional disclosure literature, this research reveals that writing about emotions improves consumer fairness perceptions and satisfaction. However, the benefit of emotional disclosure disappears if the disclosure is solicited by the company perceived to be responsible for the unfairness and they do not offer redress. The findings lead to the recommendation that companies provide and facilitate opportunities for consumers to disclose to third parties the emotions arising from consumption experiences perceived as unfair. Implications for managing customer feedback, complaints, and negative word‐of‐mouth are discussed. © 2011 Wiley Periodicals, Inc.     

广东省流通业发展对居民消费支出影响的实证研究

流通业是国民经济各部门的桥梁和纽带,是引导生产、消费和经济运行的先导性力量,对于广东省而言,要大力发展流通业,促进居民消费增长,可以从优化物流业发展区域布局,加强商贸流通企业与制造业间的互动协调发展,借助"物联网"技术提升流通业的信息化水平,创新发展思路,积极发展新型的流通业态,通过整合资源积极培育和组建大型流通企业集团,构建农村现代流通体系,扩大农村居民消费等方面着手进行。     

The effect of loyalty program expiration policy on consumer behavior

Although loyalty programs can help divert costs to the future by using delayed rewards, unredeemed program currency can become significant liability for the firm. To alleviate this concern, many programs have introduced a point expiration date or have shortened their expiration time horizon. This issue of point expiration has received scant attention in the literature. Contrary to an intuitive negative effect one would expect from a more stringent expiration policy, our real-life data and lab experiment demonstrated that a finite expiration policy can affect purchases positively but only for consumers who have the flexibility to adapt their behavior to such a policy. We identified usage level and engagement in multi-store shopping as two sources contributing to flexibility. Overall, our findings point to a need to understand one’s customer base to design the optimal point expiration policy and program communication.     

The effect of exogenous product familiarity on endogenous consumer search

When a consumer is familiar with one product but not its competitor, she is faced with a decision: either buy what she knows, or engage in search to learn more. When search is costly, competing firms may attempt to encourage or discourage search by adjusting prices. In this paper we consider how competitive dynamics between two quality differentiated firms are affected if one product enjoys a familiarity advantage. Familiarity is defined as a consumer’s ex-ante knowledge of fit for a particular product. An increase in the level of familiarity for one product allows a firm to charge higher prices since there are more consumers with information on that product relative to the competition. We call this the direct effect of familiarity. However, an increase in familiarity also has an indirect effect, since it gives the rival firm a stronger incentive to decrease price in order to encourage searching, in turn increasing overall competition. The effect of familiarity on profits depends on the magnitudes of these effects, and it is moderated by the level of quality differentiation between products. For very high or very low levels of differentiation, the results are relatively straightforward. However, when the level of differentiation is moderate, the results are more nuanced, with the higher-quality firm realizing higher profits from more familiarity, even if it must lower prices due to the indirect effect. We also find that, contrary to conventional wisdom, overall competition may be higher when firms are more quality differentiated. This is driven by the fact that higher quality differences bolster the indirect effect, with a lower quality firm providing deeper price cuts to counter increased familiarity of a high quality rival. We conclude by examining how changes in the cost of searching impact equilibrium outcomes.

     

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.     

The effect of phosphate detergent bans on consumer clothing expenditures

Metropolitan sales data from the 1977 Census of Retail Trade were analysed to test whether phosphate detergent bans increased consumer expenditure on clothing: positive effects were found for men's clothing and domestic fabrics (sheets and towels). In areas with medium water hardness the average annual cost in 1977 equalled $11·08 per household. For 1984, the equivalent cost was $14·17 per household. These results are consistent with laboratory studies that show decreased detergency associated with non-phosphate detergents and increased fabric wear associated with carbonate-built detergents, the principle substitute for phosphate detergents. The bans impose the largest cost on hard water areas. In both ban and non-ban areas in 1977 higher laundering costs were associated with higher water hardness. Analysis of 1972 data indicated that water hardness did not affect clothing expenditures significantly when detergents contained large amounts of phosphates.     

How push messaging impacts consumer spending and reward redemption in store-loyalty programs

Retailer loyalty programs (LPs) are pervasive in grocery retailing. However, participant spending and redemption typically wear off over time and traditional communication has not revealed very effective at maintaining program engagement. We study the impact of in-app mobile push notifications on consumer participation and reward collection in store-loyalty programs. Using a unique data set covering consumer spending before and during such a program, we estimate the effect of push messaging on expenditure and reward redemption during the program. We report positive effects of push messages on spending, and even stronger effects on redemption, relative to a control group not receiving such messages. Due to the savings dynamics, the total spending impact is larger for messages sent early on rather than late in the program, while the opposite holds for the total number of stamps redeemed. Conditioning on observable consumer characteristics, we allow for heterogeneous treatment effects and find that the spending and redemption effects of push messaging increase with high levels of pre-program spending. Our findings reveal which loyalty-program stakeholders benefit the most from mobile marketing campaigns, and help to formulate rules for campaign scheduling and targeting.     

The effect of social media communication on consumer perceptions of brands

Researchers and brand managers have limited understanding of the effects social media communication has on how consumers perceive brands. We investigated 504 Facebook users in order to observe the impact of firm-created and user-generated (UG) social media communication on brand equity (BE), brand attitude (BA) and purchase intention (PI) by using a standardized online survey throughout Poland. To test the conceptual model, we analyzed 60 brands across three different industries: non-alcoholic beverages, clothing and mobile network operators. When analyzing the data, we applied the structural equation modeling technique to both investigate the interplay of firm-created and user-generated social media communication and examine industry-specific differences. The results of the empirical studies showed that user-generated social media communication had a positive influence on both brand equity and brand attitude, whereas firm-created social media communication affected only brand attitude. Both brand equity and brand attitude were shown to have a positive influence on purchase intention. In addition, we assessed measurement invariance using a multi-group structural modeling equation. The findings revealed that the proposed measurement model was invariant across the researched industries. However, structural path differences were detected across the models.     

The effect of web interface features on consumer online purchase intentions

Corporations spend millions of dollars a year creating and maintaining corporate websites, yet many of these sites fail to reach the organization's goals [Freemantle D. The psychology of crm. Int J Cust Relatsh Manag 2002; http://www.superboss.co.uk/articles2main.htm]. Recent research suggests that these failures reflect poor website design, yet this research lacks the specificity necessary to provide practical recommendations for improving site performance [Rosen EE, Purinton E. Website design: viewing the web as a cognitive landscape. J Bus Res 2004; 57:787-94]. This study fills that gap by providing specific recommendations regarding website design elements that generate positive managerial outcomes. First, the study tests a wide range of design elements to determine those that provide human elements and computer elements. Next, these elements are linked through intermediaries using the uses and gratifications theory, technology acceptance model, and the concept of flow to explain purchase intentions and intentions to revisit the site.     

The effect of consumer food creation on the food consumption experience

Two experiments show that the role the consumer plays in the creation of their food can affect the consumption experience. When guilt is present in the consumption of the food item, namely an unhealthy food item, having someone else create the food item increases taste evaluations, attitudes, and behavioral intentions. However, when guilt is not present, as in the case for healthy foods, there is no difference in food evaluations when the end consumer or another creates the food. These results have important implications for food retailers, food service establishment, and food delivery companies.     

The effect of traditionally marginalized groups in advertising on consumer response

Increasingly, national brands have cast people from marginalized groups in advertising. It is important to understand the elements that influence consumers’ responses to advertisements featuring groups who have been traditionally excluded from advertising campaigns. Although consumers may wish to buy brands that support their own views on human rights and equality, we propose that consumers in the target market may be uncomfortable if the group portrayal contradicts their beliefs about the topic, concept, or social groups in the ad. Across two studies, we show that when an ad creates this type of internal contradiction within consumers, it may elicit a more negative response than an ad portraying a more traditional model. However, we also find preliminary evidence that using models from marginalized groups can be more effective than using more traditional models—as long as such portrayals do not violate certain target consumers’ schemas. The implications of these results will be discussed.     

The numbing effect of mortality salience in consumer settings

Nationwide Insurance and Johnnie Walker Scotch aired advertisements that encouraged people to contemplate death. What are the immediate emotional and perceptual outcomes of such advertisements? With five studies, thinking about death was found to attenuate emotional reactions and perceptions, a novel finding in the literature. This attenuation was observed with neural and self‐report measures along with retrospective and prospective assessments of emotion and is an outcome not yet investigated in mortality salience research. Contemplating death dampened people's expectations of emotion in a future consumption experience and diminished the attractiveness of the experience. Similarly, contemplating death affected backward‐looking assessments of emotion, for example, when nostalgic memories are brought to mind. Importantly, this dampening effect of mortality salience was replicated with advertisements that portrayed death‐related concepts and attenuated emotional reactions to subsequent advertisements.     

The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China

Despite extensive use of weather data to adjust replenishment and inventory strategies in the retail industry, these companies do clearly know the effect of weather on consumer behavior and retail performance. How does weather affect consumers' purchasing behavior and thus retail performance? We study empirically these questions by analyzing more than 6 million transactions made by more than 1.62 million unique consumers at 146 convenience stores in a convenience store chain in China. We choose sun, rain, temperature, and air quality index as the main weather variables. We use the average number of items per order and the average price of each item in each order as indicators of consumer behavior, and use store daily sales as an indicator of retail performance. We found that under rainy weather, people will buy more products with higher item prices in one order. When temperature rises, people will buy fewer products with a lower item price in one order. In addition, sunny weather and rainy weather have a positive impact on daily sales than cloudy weather. Air quality has a negative impact on daily sales, while temperature has a positive impact on sales. Finally, we study the impact of weather on different product categories. We find that the results depend on the product category characteristics.