The Hierarchy of Consumer Participation: Knowledge and Proficiency in Telecommunications Decision Making

This paper establishes a “hierarchy of consumer participation” that has striking parallels to the hierarchy of political involvement developed by Milbrath (1965, 1982). Analysis of consumer decision making required by the deregulation of telecommunications shows that independence of decision making, propensity to use sources of information, and propensity to influence others' decisions are highly interrelated. Four main types of consumers are identified: consumer influentials, active consumers, dependent consumers, and nondecision makers. The levels of consumer participation should be highly salient in defining targets and programs for consumer research, education, protection, and policymaking.     

Telecommunications - The Consumer Revolution

Lord Young of Graffham, Executive Chairman of Cable & Wireless plc, spoke at the third LSE Business Performance Lecture about the consumer revolution in telecommunications which has transformed the industry. Since liberalisation, the British telecommunications industry has lead its monopolised European counterparts. When Germany licensed one cellular phone operator in the mid-eighties, the British government went for competition and licensed two. Both companies seta target of 100,000 users by 1990. Germany achieved hers; Britain passed a million users. This revolution in the telecommunications industry is timely because information is the lifeblood of service industries and is also increasingly important in modern manufacturing. Imminent technological advances, like the personal communicator, the videophone, and multimedia will increasingly add to its importance.     

Consumer Response to Coupon Advertising

Because coupon advertising has both the characteristics of advertising and sales promotion, it may have distinctive effects on consumers that cannot be explained solely by coupons or advertising. Past studies present contradicting results as to the consumers' response to coupon advertising. Our experiment shows that while the coupon may be an incentive for loyal consumers of competing brands, it may be a distractor for brand-loyal consumers in processing the coupon advertising. For multi-brand users, coupons do not appear to have any distinctive effects on processing the coupon advertising. An empirical investigation of an integrated consumer response model to coupon advertising indeed shows that there are various interactive effects between the coupon and the main advertisement. These results may provide guidelines for making targeting and promotion decisions, especially for an internationally well-known brand that is entering a new market where local or other international brands are already serving the customers.     

Linking Sources of Consumer Confusion to Decision Satisfaction: The Role of Choice Goals

Previous empirical research on the relationship between consumer confusion and customer satisfaction has largely neglected the role of choice goals. In a context of technologically complex products, the authors analyze the effect of selected choice goals on the consumer confusion‐decision satisfaction link. The empirical findings, which are based on a field study of smart phone users, show that different sources of confusion have distinctive effects on choice goals, which in turn influence decision satisfaction. For example, while confusion caused by ambiguous information and choice overload is found to reduce choice confidence, perceived attribute similarity between products or brands increases choice confidence. Among the choice goals, evaluation costs and negative affect are found to increase decision satisfaction. The findings have important implications for marketers and consumer policymakers in terms of marketing communication and customer satisfaction.     

The Consumer Decision Process for Professional Services Marketing

No abstract available for this article.     

Response to social media influencers: Consumer dispositions as drivers

Brand managers use social media influencers (SMIs) to influence consumers' attitudes and intentions. However, there is still ambiguity about the mechanisms by which SMIs influence their followers, as well as the metrics by which their performance can be evaluated. The existing literature has restricted itself to consumers' purchase intentions in order to evaluate SMIs influence and is silent on the role of the consumers' individual characteristics in SMIs influence mechanisms. Based on these research gaps and to provide a clearer picture of the SMI influence mechanism to practitioners, the present study assesses the role of consumer characteristics such as their social media attachment (SMA), parasocial relationships with social media influencer (PSR-SMIs), and susceptibility to SMIs influence (SSMII) in driving consumer response to SMIs influence through SMI compliance intentions. Study 1 found the sequential mediational role of PSR-SMIs and SSMII in the SMA-SMI compliance intentions relationship. Study 2 found the same sequential mediation and demonstrated how SMI skepticism negatively moderates the relationship between PSR-SMIs and SMI compliance intentions. To the best of the authors' knowledge, this is the first time that this skepticism variable is being explored in the SMI literature.     

Consumer Response to Line Extensions: Trial and Cannibalisation Effects

Cannibalisation and trial are both potential consequences of line extension strategies with, normally, the former to be controlled and the latter encouraged. Both stem from the familiarity of the parent brand, the main driver of line extension strategy. For a brand manager, considering the launch of a new line, these two effects create tensions; how can trial be maximised whilst parental share loss is minimised? We examine these two effects in different line extensions in the UK and Germany to understand how trial and cannibalisation interact to affect the success of a line extension. Our empirical research analyses the purchase patterns of buyers of a new line, before and after the launch of the extension, and compares these with the level of cannibalisation. Our aim is to understand the dynamics of consumer response to the new line. The household panel data analysis of fmcg purchases shows that line extension buyers are disproportionate purchasers of the parent brand, both before and after the launch. However these measures of cross-purchase correlate only weakly with the level of cannibalisation (rho = .42 before, .43 after). Whilst a line extension clearly encourages purchase of the new line by purchasers of the existing parent, this leads to additional portfolio purchasing as often as substitution. This provides some proof of the efficacy of line extension strategies in expanding brand sales.     

Consumer Access to Health Care: Basic Right 21st Century Challenge

Today, this country is confronting a crisis in health care of broad and critical dimensions. Dwarfing all others is the issue of the consumer's right to affordable quality comprehensive health care. This paper deals first with the dimension of the health care crisis confronting this country. It considers the major proposals for health care reform. Finally, it examines the role of the consumer movement and of American Council on Consumer Interests (ACCI) in ensuring that the consumer's interest is protected in the current debate on how best to provide equitable and affordable health care to all Americans without regard to the individual's ability to pay.     

Consumer Response to Retailer-Supplier Brand Exclusivity Arrangements

Product assortment is one of the most important factors within retail strategy and number of brands offered is a key dimension. Retailers face the challenge balancing assortments that are large enough to attract and satisfy consumers, while also being efficient and profitable. Brand exclusivity arrangements within mass retailers are a developing phenomenon in the marketplace. Consumer reaction to these arrangements is not well understood by retailers, nor are they studied in the literature. This study examines the impact brand exclusivity arrangements and their context may have on customer satisfaction. A field experiment finds that the negative consumer response to imposed brand exclusivity is significantly larger than that associated with the mere reduction in the number of brands.     

Do Equally Owned Small Businesses Have Equal Access to Credit?

Previous research in small-business financing has generally ignored those businesses owned equally by males and females. The rationale has been that such businesses share the characteristics of both types of owners and would confound any gender-based differences. This paper presents an empirical study in which the credit access experiences of equally owned small businesses are compared to those of their female- and male-owned entrepreneurial counterparts. Various measures of credit constraints are introduced that suggest that equally owned businesses often do experience larger constraints than male-owned businesses and smaller constraints than female-owned businesses, when all credit applicants are considered. However, the results are more mixed in comparisons of successful applicants’ constraints. A different approach from that of existing research is then used to study exactly how equally owned small businesses’ experiences are unique, rather than merely whether they differ from those of their counterparts. The evidence indicates that different factors are determining the credit application outcomes of all three ownership groups. Where similar determinants are found, equally owned businesses are influenced in a manner more similar to male-owned small businesses. The results show that equally owned small businesses’ credit access experience is not equally balanced between those of their counterparts.      

Consumer Economics and Family Economics: The Charge,the Response

A “Timeless” charge to consumer economics and family economics is identified. In light of the charge, the area is examined with particular emphasis on scholarly activity. It is suggested that scholarship in the area is diffuse and often addresses parts of issues. This creates concerns as to whether the historical charge is being met.     

A Model of the Consumer Decision to Seek Legal Redress

A model explaining why Oregon consumers took legal action in consumer disputes when state mediation failed is proposed and empirically tested with path analysis. Although the test shows that this model has a reasonable amount of external validity, a new, revised model is developed which fits the empirical results extremely well. This revised model emphasizes perceived effectiveness and access to court as especially important factors in determining whether a consumer takes legal action.     

Reducing Consumer Disadvantage: Reassessing Access in the Retail Environment

Abstract

Extensive interviews about the food shopping experiences of one disadvantaged group—wheelchair users in South Wales—enables a reassessment of the access dimension of consumer disadvantage following a period of pronounced retail changes and improvements associated with the Disability Discrimination Act. Although a slim majority of wheelchair users felt that they had proper choice over their shopping locations, many expressed continuing experiences of consumer disadvantage. Residual consumer disadvantage remains particularly in older, more traditional shopping locations, while the large supermarkets offer advantages because of their dedicated car parking spaces, their spacious aisles, special facilities and staff training. For the wheelchair user, superstore growth has had a beneficial effect on accessibility, reducing consumer disadvantage.     

Results May Vary: Overcoming Variability in Consumer Response to Advertising Music

Although listening to music seems effortless, it actually involves many separate psychological mechanisms. This article describes and extends the multimechanism framework proposed by Juslin and colleagues, highlighting how the operation of psychological mechanisms leads to two general types of variability in consumer response to advertising music. First, the risk of between‐consumer variability (individual differences) in musical response is moderate or high for most mechanisms, and it often depends on each individual's particular history of exposure to music (listening biography). Second, within‐consumer variability occurs when different mechanisms have contrasting effects, so that an individual consumer's musical response is often mixed (e.g., guilty pleasures, bittersweet feelings, pleasurable sadness). Both types of variability can negatively impact advertising objectives (message reception, recall, acceptance, brand attitudes, etc.). The article offers preliminary suggestions for how marketers can use a multimechanism approach to successfully incorporate music in commercials and reduce the risk of unanticipated consumer responses. It ends with proposals for further research.     

Denominational Affiliation Change: Application of the Consumer Decision Model

This paper examines religious affiliation change (brand switching) from a consumer decision perspective. It applies three variants of Howard's Consumer Decision Model (CDM) to 14 denominations of religion. The denominations are considered as brands of religion and several hypotheses concerning the relationships among the CDM variables are tested via path analysis. Application of the CDM to brands of religion is supported. Implications of the results for consumer theory and consumers’ interests are discussed.     

Understanding Consumer Response to Sponsorship Information: A Resource‐Matching Approach

Sponsorship of sporting teams and events has become an increasingly popular form of corporate and brand communication. Despite the continued growth of sponsorship spending, the corresponding literature base is highly fragmented and little agreement exists related to the psychological mechanisms underlying response. This paper integrates several prominent sponsorship research streams in promoting a “resource‐matching” perspective of cognitive elaboration and attitude change. This research holds that in the absence of clear functional fit between sponsor and event, identifying a basis for sponsor–event fit is likely to require some degree of cognitive effort. The results indicate stronger social identification with the sponsored event influences the favorability they attribute to sponsor motives and promotes stronger perceptions of fit between the sponsor and the sponsored activity. Further, the results indicate fit perceptions mediate the relationship between attribution and sponsorship response. Consistent with ELM theory, when cognitive resources are insufficient for the complexity of the fit‐matching task, social identification may still act as a peripheral cue in driving a positive affective response to sponsorship information.     

Consumer Risk Response and Consumer Protection: An Economic Analysis of Seat Belt Usage

A utility analysis of decisions involving risk indicated that risk averse consumers would undertake a risk reduction strategy as long as the change in expected loss was equal to or greater than the costs of the strategy. Cost-benefit analysis of seat belt usage was conducted to test this hypothesis. The results indicated that drivers of all size classes would gain from using seat belts in the case of low user costs while the drivers of subcompacts and compacts would gain in the case of higher user costs. However, less than one-fifth of drivers wear seat belts. These results raise questions concerning the effectiveness of the informed buyer approach in areas of risk or uncertainty.     

Consumer Response to Package Downsizing: Evidence from the Chicago Ice Cream Market

It is common among producers of consumer packaged goods to reduce the volume of product per package such that the new size replaces the old one. This tactic is commonly referred to as package downsizing. In this article, we investigate the extent to which consumers have different sensitivities to package price and package size in order to shed light on the managerial implications of package downsizing. To do so, we estimate a random utility model of demand to measure consumer response to price and package size using household scanner panel data on bulk ice cream purchases in Chicago. The estimation framework involves modeling household heterogeneity, addressing price endogeneity and accounting for unbalanced choice alternatives. Our main finding is that consumers are less responsive to package size than to price; the demand elasticity with respect to package size is approximately one-fourth the magnitude of the demand elasticity with respect to price. This result implies that marketing managers can use downsizing as a hidden price increase in order to pass through increases in production costs, that is, cost of raw materials, and maintain, or increase, their profits.