1. COSTUMER
INNOVATIVENESS
Consumer
innovativeness, as a force that leads to innovative
behavior, has often been cited and studied in research on the diffusion of
innovation. Surprisingly, it appears that there is still room for discussion
about this concept. This article attempts to take stock of this issue. In the
first part, the different theoretical definitions of the notion are introduced
critically. The second part is devoted to displaying major measurement scales
that have been designed with a view to measuring this construct.
This review helps in understanding the diversity of approaches to innovativeness. It raises two main questions: (1) Are the
different theoretical conceptualizations of innovativeness
equally valid and compatible? (2) Do the scales really express each theoretical
standpoint? This suggests that the present scales may be imperfect, and
construction of a new one may well be of interest.
2. COSTUMER
COMPULSIVE CONSUPTION
- The process of using the product or service purchased
- Consumption can either occur immediately or be delayed
- Consumers may use products as intended or as they
choose, especially when instructions are not included or not read
- Aspects of consumption: rituals and artifacts,
collections, compulsive consumption, satisfaction, cognitive dissonance
What is it like to consume?
What are the consumers’ experiences
Do we really understand how they want to use products? To solve problems?
What does today’s consumer want?
How will we study the consumer to understand consumption?
Surveys
Cameras in home
Interviews in home
Focus groups
Laboratory
Experiments
Consumption Experiences
- Positive or negative things you feel when using a
product
- Consumers often don’t feel any-thing during experience
- Firms can position products based on:
- Positive feelings resulting from consumption
- Elimination of negative feelings resulting
from consumption
Sacred and Profane Consumption
Making products “sacred” - having a special significance
Rituals: repetitive and symbolic behaviors
Pilgrimage: journey to a particular site, e.g.. a return to a favorite vacation spot
Quintessence: the product is exactly what it should be
Collecting: objects which are part of a set
Some websites of collections - why do people collect what they do?
Do they “USE” the products that they collect? How do they USE them?
Consumption Norms and Rituals
Consumption norms: informal rules that govern our consumption behavior
Consumption norms: informal rules that govern our consumption behavior
Consumption rituals: a type of
expressive, symbolic activity constructed of multiple behaviors that occur in a
fixed, episodic sequence, and that tend to be repeated over time
Holiday rituals (gift giving,
parties)
Compulsive Consumption
Are there any products you “have” to get?
Some consumers become compulsive, and are addicted to the shopping process
Inappropriate addictions: gambling, overeating
Inappropriate misuses: anorexia, bulimia
A key to compulsive consumption is that the focus is on the interaction between the shopper and the salesperson – the product might not ever be used at all
Are there any products you “have” to get?
Some consumers become compulsive, and are addicted to the shopping process
Inappropriate addictions: gambling, overeating
Inappropriate misuses: anorexia, bulimia
A key to compulsive consumption is that the focus is on the interaction between the shopper and the salesperson – the product might not ever be used at all
Satisfaction Versus Dissatisfaction
The level of satisfaction or dissatisfaction we experience depends upon how well the product’s performance meets our expectations.
A finite time period of possession is necessary to determine satisfaction.
Satisfaction is not easily measured because:
It means different things to different people
The level of satisfaction can change over time
Satisfaction can change when consumer needs and preferences change
Satisfaction includes a social dimension (the experience of others may add or subtract from our own satisfaction)
The level of satisfaction or dissatisfaction we experience depends upon how well the product’s performance meets our expectations.
A finite time period of possession is necessary to determine satisfaction.
Satisfaction is not easily measured because:
It means different things to different people
The level of satisfaction can change over time
Satisfaction can change when consumer needs and preferences change
Satisfaction includes a social dimension (the experience of others may add or subtract from our own satisfaction)
How Rewarding or Punishing Was the
Experience?
Positive reinforcement: when consumer receives positive outcome from product usage
Negative reinforcement: when consumption helps person avoid negative outcome
Punishment: when consumption leads to negative outcome
Did It Confirm or Disconfirm Expectations?
Consumption can meet, exceed, or fall short of expectations
If consumers expect something to be easy and it isn’t, that affects evaluation of product
Positive reinforcement: when consumer receives positive outcome from product usage
Negative reinforcement: when consumption helps person avoid negative outcome
Punishment: when consumption leads to negative outcome
Did It Confirm or Disconfirm Expectations?
Consumption can meet, exceed, or fall short of expectations
If consumers expect something to be easy and it isn’t, that affects evaluation of product
What Determines Satisfaction?
- Expectancy disconfirmation model: satisfaction depends
on a comparison of pre-purchase expectations to actual outcomes
- Negative disconfirmation: when product delivers less
than expected
- Positive disconfirmation: when product delivers more
than expected
- Confirmation: product matches expectations
Companies Influence Expectations
Advertising
Brand names (Mercedes)
Packaging (Godiva)
Price (High vs. Low)
Expectations Can Influence
Post-consumption Evaluations
In ambiguous situations, post-consumption evaluations are susceptible to initial expectations In unambiguous situations, they are less influenced by expectations
In ambiguous situations, post-consumption evaluations are susceptible to initial expectations In unambiguous situations, they are less influenced by expectations
What Happens after the Purchase?
Are consumers ever dissatisfied? Do they complain?
Does the product match consumer expectations?
What can the marketer do to keep you as a customer?
E.g.. What are your expectations if you decide to remodel your home?
E.g.. what are your expectations as a consumer of the MBA program?
What can RU do to keep you as an MBA student? as a satisfied graduate?
Are consumers ever dissatisfied? Do they complain?
Does the product match consumer expectations?
What can the marketer do to keep you as a customer?
E.g.. What are your expectations if you decide to remodel your home?
E.g.. what are your expectations as a consumer of the MBA program?
What can RU do to keep you as an MBA student? as a satisfied graduate?
Customer Satisfaction is the Key to
Retention
It is harder to gain a new customer than to retain an old one
Do we know enough about the consumer’s experience to make a change when one is needed?
Will the consumer give us feedback
Would you recommend this product to a friend?
It is harder to gain a new customer than to retain an old one
Do we know enough about the consumer’s experience to make a change when one is needed?
Will the consumer give us feedback
Would you recommend this product to a friend?
Expectations
Equitable performance: worth the cost and effort to purchase and use
Ideal performance: what is hoped for
Expected performance: what it is likely to be
Three forms of CS/D judgment:
positive disconfirmation: better than expected
simple confirmation: performance meets expectations
negative disconfirmation: worse than expected
Equitable performance: worth the cost and effort to purchase and use
Ideal performance: what is hoped for
Expected performance: what it is likely to be
Three forms of CS/D judgment:
positive disconfirmation: better than expected
simple confirmation: performance meets expectations
negative disconfirmation: worse than expected
Complaints
Do you complain when you are dissatisfied?
What forms do complaints take:
voice - seeking redress from the seller
private - negative WOM
third-party - taking legal action
The majority never complain!!! Why not?
Do you complain when you are dissatisfied?
What forms do complaints take:
voice - seeking redress from the seller
private - negative WOM
third-party - taking legal action
The majority never complain!!! Why not?
Build in Early Monitoring
First, do you really know what is important to your customers?
Encourage customers to give you feedback
Try to reward them
Try to make it easy for them
Have you built realistic expectations?
First, do you really know what is important to your customers?
Encourage customers to give you feedback
Try to reward them
Try to make it easy for them
Have you built realistic expectations?
Divestment
What happens when the consumer is finished with the item?
What types of disposal alternatives are there?
Throw it away
Give it to a friend
Sell it
Give it to a charity
How does the consumer determine which option to select
What happens when the consumer is finished with the item?
What types of disposal alternatives are there?
Throw it away
Give it to a friend
Sell it
Give it to a charity
How does the consumer determine which option to select
Product Disposition as Donations
You donate items like clothing, accessories, books, toys and other household goods to Goodwill. Your donation is tax deductible by law.
Donated items are processed for resale by Goodwill employees, many of whom are gaining on-the-job training through our Retail Skills Training Program.
Your donation is resold in one of Goodwill's area retail stores. A bargain savvy shopper is now reaping the rewards of owning your quality goods.
Revenue from the sale of your donations fund Goodwill's employment training programs that prepare individuals with disabilities and disadvantages for competitive employment.
You donate items like clothing, accessories, books, toys and other household goods to Goodwill. Your donation is tax deductible by law.
Donated items are processed for resale by Goodwill employees, many of whom are gaining on-the-job training through our Retail Skills Training Program.
Your donation is resold in one of Goodwill's area retail stores. A bargain savvy shopper is now reaping the rewards of owning your quality goods.
Revenue from the sale of your donations fund Goodwill's employment training programs that prepare individuals with disabilities and disadvantages for competitive employment.
The impact of recycling on product
purchases
Environmentally sensitive consumers are known to purchase products that are available in recyclable containers.
The NRC-Nike Reuse-a-Shoe Partnership
The program accepts all brands of athletic shoes, as long as they don’t contain any metal (e.g., eyelets or cleats). Once you reach the 5,000 pair minimum, Nike will arrange for shipping and will recycle the shoes into Nike Grind. This unique ground-up material is then used to resurface athletic fields, courts, tracks and playgrounds. Since the program began in 1993, some 15 million pairs of shoes have been recycled.
Environmentally sensitive consumers are known to purchase products that are available in recyclable containers.
The NRC-Nike Reuse-a-Shoe Partnership
The program accepts all brands of athletic shoes, as long as they don’t contain any metal (e.g., eyelets or cleats). Once you reach the 5,000 pair minimum, Nike will arrange for shipping and will recycle the shoes into Nike Grind. This unique ground-up material is then used to resurface athletic fields, courts, tracks and playgrounds. Since the program began in 1993, some 15 million pairs of shoes have been recycled.
3. COSTUMER ETHNOCENTRISM
Consumer
ethnocentrism is derived from the
more general psychological concept of ethnocentrism.
Basically,
ethnocentric individuals tend to view their group as superior to others. As
such, they view other groups from the perspective of their own, and reject
those that are different and accept those that are similar (Netemeyer et al.,
1991; Shimp & Sharma, 1987). This, in turn, derives from earlier
sociological theories of in-groups and out-groups (Shimp & Sharma, 1987).
Ethnocentrism, it is consistently found, is normal for an in-group to an
out-group (Jones, 1997; Ryan & Bogart, 1997).
Consumer
ethnocentrism specifically refers to ethnocentric views held by consumers in
one country, the in-group, towards products from another country, the out-group
(Shimp & Sharma, 1987). Consumers may believe that it is not appropriate,
and possibly even immoral, to buy products from other countries.
Purchasing foreign
products may be viewed as improper because it costs domestic jobsand hurts the
economy. The purchase of foreign products may even be seen as simply
unpatriotic (Klein, 2002; Netemeyer et al., 1991; Sharma, Shimp, & Shin,
1995; Shimp & Sharma, 1987).
Consumer ethnocentrism gives individuals an
understanding of what purchases are acceptable to the in-group, as well as
feelings of identity and belonging. For consumers who are not ethnocentric, or
polycentric consumers, products are evaluated on their merits exclusive of
national origin, or possibly even viewed more positively because they are
foreign (Shimp & Sharma, 1987; Vida & Dmitrovic, 2001).Brodowsky (1998) studied consumer ethnocentrism among car buyers in the U.S. and found a strong positive relationship between high ethnocentrism and country-based bias in the evaluation of automobiles. Consumers with low ethnocentrism appeared to evaluate automobiles based more on the merits of the actual automobile rather than its country of origin. Brodowsky suggests that understanding consumer ethnocentrism is critical in understanding country of origin effects.
Several antecedents of consumer ethnocentrism have been identified by various studies. Consumers who tend to be less ethnocentric are those who are young, those who are male, those who are better educated, and those with higher income levels (Balabanis et al., 2001; Good & Huddleston, 1995; Sharma et al., 1995).
Balabanis et al. found that the determinants of consumer ethnocentrism may vary from country to country and culture to culture. In Turkey, patriotism was found to be the most important motive for consumer ethnocentrism. This, it was theorized, was due to Turkey's collectivist culture, with patriotism being an important expression of loyalty to the group. In the more individualistic Czech Republic, feelings of nationalism based on a sense of superiority and dominance appeared to provide the most important contribution to consumer ethnocentrism.
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