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Consumer Behavior Classical and Contemporary Perspectives K A R I N M. E K S T R Ã&#x2013; M MIKAEL OTTOSSON ANDERS PARMENT

Original title: Konsumentbeteende. Klassiska & samtida perspektiv. © Studentlitteratur 2017.

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Art.no. 39437 ISBN 978-91-44-11681-5 First edition 1:1 © The Authors and Studentlitteratur 2017 studentlitteratur.se Studentlitteratur AB, Lund Translation: Rikard Ehnsiö Cover design: Francisco Ortega Cover illustration: Shutterstock/Ant Photo Studio Printed by Interak, Poland 2017

CONTENTS

Preface 5 Author presentations 7 1 Introduction 9

The Purpose and Learning Objectives of the Book 10 The Definition of Consumer Behavior 11 The Book’s Two Points of Departure 13 The Two Comprehensive Theoretical Perspectives of This Book 22 The Remaining Outline of the Book 25 Summary 26

Del II Theories Concerning Consumer Psychology and Decision-Making

4 The Buying Decision and Consumption Process 61

The Stages of the Buying Decision Process 62 The Stages of the Consumption Process 67 Factors Influencing Purchases and Consumption 70 Summary 80

Del I Introduction to Consumer Behavior

2 Consumer Behavior in a Changing Society 29

A Changed Consumer Culture 30 Consumption and Well-Being 36 Consumption and Popular Culture 38 The Role of Advertising 39 Changes That Affect Consumption 39 Actors That View Consumers as Subjects 40 Summary 44

5 Involvement and Different Types of Buying Behaviors 81

Involvement 82 Different Buying Behaviors 92 Decision Rules and Decision-Making Strategies 97 Influencing Decisions 99 Summary 100 6 Habits and Loyalty 101

3 The History of the Subject of Consumer Behavior 45

Consumer Behavior as a Field of Research 46 The Development of the Subject over Time 47 Consumer Behavior Research from 1980 up until Today 51 Consumer Research with a Focus on Sustainability 53 Summary 56 © T h e A u t h o r s a n d St u d e n t l i tt e r at u r

Habits 102 Loyalty 114 Measuring Loyalty 117 Two Key Dimensions of Loyalty – Behavior and Mentality 118 Summary 126

Con t e n ts

7 Values and Attitudes 127

Values 129 Attitudes 134 Attitudes and Cultural Differences as Basis for Segmentation 143 Summary 148 8 Learning, Memory and Information Processes 149

Perspectives on Learning 150 Memory and Information 156 Summary 164 9 Personality and Lifestyle 165

Personality 166 Lifestyle 178 Summary 185 Del III Theories Concerning Consumer Culture and

Practices

10 Introduction to Theories Concerning Consumer Culture and Practices 189

Consumer Culture as a Field of Research 190 Four Research Approaches within CCT 191 Consumption Practices as a Field of Research 198 Summary 204 11 Cultures 205

Cultural Meanings 206 Cultural Categories 207 Cultural Principles 208 Processes through which Culture is Created 211 Consumption in Different Countries and Regions 214

Globalization, Localization, Glocalization 215 Counter cultures and Political Consumption 218 Summary 219 12 Social Structures, Social Comparison and Group Dynamics 221

Social Structures 222 Social Comparison 233 Different Groups and Group Dynamics 238 Summary 246 13 Relations to Artifacts 247

Artifacts 248 Aestheticization 251 Relations to Artifacts and the Value and Status of Objects 253 Relations to Brands 257 Collecting as a Consumption Phenomenon 258 The Sharing Economy 260 Minimalism and Voluntary Simplicity 265 Summary 266 Del IV Conclusion

14 Reflections: After Consumption 269

Two Comprehensive Theoretical Perspectives that Complement One Another 270 The Book’s Two Points of Departure 274 After Consumption 275 The Consequences of Consumption – Who Is Responsible? 279 Summary 281 References 283 Index 305

Preface

We have been fascinated by the phenomenon of consumption for a very long time. Consumption takes up a large part of our lives; not only when we are awake, but also when we dream. Our lives are organized in relation to consumption, which is particularly true when it comes to things like housing, food, clothing, transportation, communications and entertainment. Everyone consumes, albeit differently and to varying degrees, depending on living conditions, lifestyles and resources in the form of money, time and knowledge. Consumption may be experienced as something amazing, frustrating, necessary, unnecessary, fun or boring – depending on situation, context and perspective. The interpretation of consumption and its meaning(s) not only varies between individuals, but also between companies, organizations and communities, which is why understanding consumption in its cultural context is crucial for avoiding an overly narrow focus.

For quite some time, we have felt a need to write the first textbook in Swedish that is not a translation from another language, but rather reflects knowledge concerning consumer behavior in Sweden. The book is now finished and we would thus like to thank those who in various ways contributed to our dream becoming a reality. Thanks to all scholars who have written cases in the book! Thanks to senior lecturer Marcus Gianneschi at the University of Borås and senior lecturer Ulrika Holmberg at the Gothenburg School of Business, Economics and Law for valuable comments on the text! Thanks to the Torsten Söderberg Foundation for providing funds for translating the textbook into English! Thanks to translator Rikard Ehnsiö. Thanks to publisher Ola Håkansson at Studentlitteratur for your commitment and for believing in the project! Borås, Linköping and Stockholm, June 1, 2017 Karin M. Ekström Mikael Ottosson Anders Parment

Author presentations

Karin M. Ekström is a professor of marketing at the University of Borås where she also heads the Sustainable Consumption Research Group. She has been involved in consumption research for many years, frequently in multidisciplinary projects. Previously, she held the position of professor in business administration at the School of Business, Economics and Law at the University of Gothenburg, where she launched and headed the multidisciplinary Centre for Consumer Science. Her research focuses on consumer culture, with a particular focus on areas such as the meaning(s) of consumption, sustainable consumption, consumer socialization, family consumption and consumers’ relations to artifacts. Dr. Mikael Ottosson has held the position of senior lecturer in marketing at Linköping University since 2012. He has extensive experience in teaching marketing at all levels as well as being in charge of courses. His research interests include sustainable consumption and sustainable business development. By using eye tracking, and in collaboration

with Hugo Guyader and Lars Witell, he has analyzed why consumers choose or do not choose sustainable products in buying situations. For instance, the study found that the ways in which stores use signs and display their daily consumer goods have an impact on consumer choices, as up to 70 percent of all buying decisions are made directly at the store. Furthermore, he has written the textbook Sustainable Marketing together with Anders Parment. Dr. Anders Parment has held the position of senior lecturer at the Stockholm Business School, Stockholm University, since 2008. Ever since he finished his PhD in 2005, he has been in charge of courses and taught marketing, strategy and managing marketing channels at all levels. During the period of 2013–2015, he headed a research project on buying behavior in different types of market areas (big cities, medium-sized cities and smaller towns). Together with Dr. Sara Brorström, he also manages the so-called Urbanization Study commissioned by Kommuninvest and Natkom.

Introduction

Consumer behavior has generated an increasing amount of interest over time, both as an academic subject as well as among students – a development that reflects a consumer-oriented society where consumption and the considerations and practices of consumers are crucial for understanding our contemporary world. In this book, we introduce the subject and describe the different approaches found therein. The book provides a large number of examples of various forms of consumption and consumer behavior from both Scandinavian and international contexts. In this first chapter, we discuss ■■ the purpose and learning objectives of the book ■■ the definition of consumer behavior ■■ the book’s two points of departure: the consumer as a subject and sustainability ■■ the book’s two theoretical perspectives: consumer psychology and decision-making and consumer culture and practices ■■ the book’s remaining outline

The Purpose and Learning Objectives of the Book This book aims to provide a basic understanding of the subject of consumer behavior. Consumption constitutes a significant part of our lives. We make decisions with regard to toothpaste, music, where to live, go on vacation and how to do our recycling. In our choices, we are influenced by attitudes and values, but also by various routines. Consumption enables growth, prosperity and allows for choices and experiences concerning the various things being consumed. But there is also a downside to consumption. Everyone does not have equal an opportunity to consume, as individuals have different resources in the shape of money, time and knowledge. People producing goods in developing countries sometimes live and work in insufferable conditions (e.g., in so-called sweatshops). The impact of consumption on the environment is also problematic and crucial in discussions on how to combat climate change. Not only profit-making companies, but also today’s governmental agencies, schools, health centers and other non-profit actors such as theaters, museums, sports associations and political parties have an interest in understanding how, why and in what way people consume. Consumption, according to the basic perspective of this book, is not only about goods and services in the strict sense of the word. Even though it is often said in marketing literature that consumption is not just about goods and services, both models and examples nevertheless frequently reflect a relatively narrow view on consumption. Our wider perspective on consumption also includes phenomena such as concert experiences, housing, donations and choice of kindergarten or primary health care. These days, it is possible to detect an increased interest in understanding considerations and behaviors surrounding consumption; not only among actors working for consumption, but also among recipients of messages aiming for consumption (i.e., consumers). © T h e A u t h o r s a n d St u d e n t l i tt e r at u r

1 I ntr oduc tion

The meaning of consumption is complex and it is our ambition to discuss consumption as something balanced and multifaceted, rather than providing one-sided arguments for or against. We have two points of departure that permeate the book: a consumer perspective, something we denote as the consumer as a subject, and a perspective of sustainability. This sets our book apart from previous consumer behavior textbooks. It also differs from the majority of textbooks by describing the subject of consumer behavior based on two comprehensive theoretical perspectives: theories concerning consumer psychology and decision-making and theories concerning consumer culture and practices. These two perspectives complement one another and contribute to a better understanding of the complex topic of consumption. Most consumer behavior books have an overly one-sided focus on consumer psychology and decision-making. Frequently, these books only briefly discuss research that has been carried out based on the perspective concerning consumer culture and practices.

After reading this book, you should be able to:

■■ describe, apply and explain the meaning of the

concepts, theories and models related to consumer behavior ■■ critically and creatively identify and formulate questions/problems concerning consumer behavior ■■ understand, discuss and reflect upon the development of the subject of consumer behavior from classical to contemporary perspectives ■■ analyze and evaluate offers and the marketing of these offers, as well as analyze and evaluate consumption from a perspective of sustainability

■■ problematize, evaluate and criticize the role of

consumption in society, in addition to the role of consumers and companies in this context

The book’s two points of departure and two theoretical perspectives are described further below. We start off with a definition of the research area of consumer behavior.

The Definition of Consumer Behavior Consumer behavior is an international term for a research area within the field of marketing. However, in contrast to what is suggested by the term, the focus is not only on behavior, but also on what that takes place prior to and after a purchase (e.g., attitudes and values). A widely accepted definition of consumer behavior is: The dynamic interaction of affect and cognition, behaviour, and the environment by which human beings conduct the exchange aspect of their lives. (American Marketing Association Dictionary)

In this definition it is made clear that consumer behavior requires an understanding of emotions (affect), thoughts (cognition), behavior and environment, and that it is dynamic (i.e., in constant change). The latter means that companies, organizations, governmental agencies and individuals interested in consumer behavior need to stay alert and responsive to how consumers and consumption patterns change in a society that is constantly evolving. Initially, consumer behavior research in particular focused on the purchase itself. Over time, however,

–– How do you perceive consumer behavior? You probably had an idea concerning this field before you decided to take a course or simply read this book. –– Write this down and return to it and see how your view changes throughout the course (or your reading of this book).

1 I n t r o d uc t i o n

BOX 1.1

CLOTHES THAT ARE THROWN OUT

Each year, approximately eight kilograms of textile waste per capita are thrown away in Sweden (Carlsson et al., 2011). According to a study, 62 percent of all Swedes throw away clothes with no tears or holes (Gustafsson & Ekström, 2012). This is a waste of resources, as it is more environmentally friendly to reuse and recycle than to throw away clothes. Unfortunately, this is not just a Swedish problem. It is estimated that 30.8 kilograms of clothes and textile per capita and year are thrown away in the United States (Claudio, 2007), whereas the same figure in the United Kingdom is 30 kilograms per capita and year (Allwood et al., 2006). It is relevant to consider the possible motives for throwing away clothes. Are people unaware of the fact that clothes may be reused or recycled, or how to do it, or is it that people do not care? Why do people get rid of clothes at all? Could it be that they are worn out, that they no longer fit in the closet or that people are just fed up with them? What is the reason? The Stockholm Consumer Association found that 60 percent of those surveyed got rid of clothes because they were worn out (Ungerth, 2011). 21 percent – a fifth – indicated

that they were tired of them. This was more common among women and young people aged 16–19. The manufacturing of clothes and textiles uses up a large amount of natural resources. The manufacture of one kilogram of cotton requires between 7,000–29,000 liters of water and 0.3–1 kilogram of oil (Fletcher, 2008), in addition to pesticides. Consumers need to become aware of the fact that it is more environmentally friendly to reuse clothes (e.g., swapping clothes with one another, buying second-hand clothes) or recycle (e.g., manufacture fleeces fabrics out of used fleece clothes and PET bottles) than to buy new clothes that are subsequently thrown in the trash. Not just the physical environment, but also the working environment should be taken into account when discussing the consumption of clothes. Clothes manufacturing tends to take place in low-wage countries with working conditions that would be considered unacceptable in Sweden. These factors combined indicate that it is not sustainable to buy a t-shirt to only use it a few times before getting rid of it.

Eight kilograms of clothes per person are thrown away each year in Sweden. A large portion of this constitutes clothes that are perfectly fit to wear.

1 I ntr oduc tion

research has to a larger extent come to take what takes place both before and after a purchase into account. The word consumption is derived from the Latin word consumere, which means to use. However, consumer behavior research includes much more than that, such as desiring a product/service, preparing a purchase, buying, owning, using, maintaining, repairing, disposing, reusing and recycling. The latter stages deserve far more attention in a society where our landfills are growing. One example is textile waste (see Box 1.1). Another change in the concept of consumption, according to a postmodern perspective, is that it also includes production (Firat & Venkatesh, 1995). Consumers participate in consumption and production by, for example, assembling furniture, installing computers or using online banking. From previously having looked upon brands from a producer perspective, consumers are today seen as co-creators through their ability to interpret, evaluate and use brands in ways of their own choosing (Ekström & Norén, 2008; Salzer-Mörling & Strannegård, 2004). Gaining an understanding of how value is created in various types of networks (family, friends, customer loyalty programs, etc.), instead of solely focusing on manufactured value from a company’s factory, is a growing theme within marketing literature and it opens up for looking upon the consumer as a co-producer of value rather than a passive consumer. Consumption is a complex phenomenon requiring different perspectives, theories and methods. Research on consumer behavior in the field of marketing is also inspired by various disciplines, such as anthropology, ethnology, psychology, economics, sociology, etc. These all contribute to a higher level of understanding – just like a melody is more than the sum of its notes. The historical development of the subject is discussed further in Chapter 3.

The Book’s Two Points of Departure The Consumer as a Subject Rather Than an Object In the beginning, we noted that we see the consumer as a subject. In order to clarify what we mean, we first describe what it means to see the consumer as an object, since this approach has characterized the perception of the consumer in marketing literature for a long period of time. We then move on to highlight our perspective in this book; namely, the consumer as a subject. The Consumer as an Object

During the emergence of the modern market economy following the Second World War, the consumer was frequently, through the use of models and theories, reduced

THE USER AS AN OBJECT

BOX 1.2

In one of our research projects, we studied a global manufacturer of gardening tools, such as brush cutters, trimmers and chainsaws. The company primarily sells its products through specialty retail shops and large retailers. In our research project, it soon became apparent that for decades the company had only had limited knowledge of who the end-consumers were and how they actually used the company’s tools. The company believed that their tools were almost entirely used by private individuals in their own gardens. However, an in-depth customer survey showed that the products were also used professionally and for several hours each day (e.g., in parks). The result was that noise and vibrations had not been prioritized when developing these products, as these issues were not seen as influencing the customer’s perception of the product. The company had been under the impression that these machines were used only for a short period of time a couple of times a year. This company had looked upon its customers as objects rather than subjects, which then led to the company not including a focus on customer needs when developing its products (e.g., with regard to working environment).

Karin M. Ekström, Ph.D, is professor in marketing at the University of Borås, where she heads the Sustainable Consumption Research Group. Mikael Ottosson, Ph.D, is senior lecturer in marketing at Linköping University. His research interests include sustainable consumption and sustainable business development. Anders Parment, Ph.D, is senior lecturer in marketing at Stockholm University. Among other things, he has been in charge of research projects studying buying behaviors in different types of market areas. The authors have many years’ of experience in teaching consumer behavior, marketing strategy and managing marketing channels at all levels.

Consumer Behavior

Classical and Contemporary Perspectives Consumer Behavior: Classical and Contemporary Perspectives provides a basic understanding of the subject of consumer behavior. A better understanding in terms of why and how people consume is particularly relevant in today’s society since consumption has become an increasingly important part of people’s lives. This book differs from most previous textbooks by describing the subject of consumer behavior based on two comprehensive theoretical fields: theories concerning consumer psychology and decision-making, and theories concerning consumer culture and practices. These two perspectives complement one another and contribute to a better understanding of the complexity of consumption. Furthermore, the book has a sustainability perspective. The impact of consumption on the environment is important to highlight, not least with regard to future generations. The book also has a consumer perspective in that the consumer is not seen as a passive recipient of offers, but rather as an active actor who must be given the opportunity to make his or her voice heard. A better understanding of consumers’ different living conditions and the situations they encounter will give companies and other organizations a better chance to reach out to consumers and meet their needs. Consumer Behavior is also available in Swedish, published by Studentlitteratur.

Art.nr 39437

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