Knowledge that Transforms

AbstractThe amount of digital text available for analysis by consumer researchers has risen dramatically. Consumer discussions on the internet, product reviews, and digital archives of news articles and press releases are just a few potential sources for insights about consumer attitudes, interaction, and culture. Drawing from linguistic theory and methods, this article presents an overview of automated text analysis, providing integration of linguistic theory with constructs commonly used in consumer research, guidance for choosing amongst methods, and advice for resolving sampling and statistical issues unique to text analysis. We argue that although automated text analysis cannot be used to study all phenomena, it is a useful tool for examining patterns in text that neither researchers nor consumers can detect unaided. Text analysis can be used to examine psychological and sociological constructs in consumer-produced digital text by enabling discovery or by providing ecological validity.

AbstractAcross many different contexts, individuals consult customer ratings to inform their purchase decisions. The present studies document a novel phenomenon, dubbed “the binary bias,” which plays an important role in how individuals evaluate customer reviews. Our main proposal is that people tend to make a categorical distinction between positive ratings (e.g., 4s and 5s) and negative ratings (e.g., 1s and 2s). However, within those bins, people do not sufficiently distinguish between more extreme values (5s and 1s) and less extreme values (4s and 2s). As a result, people’s subjective representations of distributions are heavily impacted by the extent to which those distributions are imbalanced (having more 4s and 5s vs. more 1s and 2s). Ten studies demonstrate that this effect has important consequences for people’s product evaluations and purchase decisions. Additionally, we show this effect is not driven by the salience of particular bars, unrealistic distributions, certain statistical properties of a distribution, or diminishing subjective utility. Furthermore, we demonstrate this phenomenon’s relevance to other domains besides product reviews, and discuss the implications for existing research on how people integrate conflicting evidence.

Abstract Though perceived financial well-being is viewed as an important topic of consumer research, the literature contains no accepted definition of this construct. Further, there has been little systematic examination of how perceived financial well-being may affect overall well-being. Using consumer financial narratives, several large-scale surveys, and two experiments, we conceptualize perceived financial well-being as two related but separate constructs: 1) stress related to the management of money today (current money management stress), and 2) a sense of security in one’s financial future (expected future financial security). We develop and validate measures of these constructs (web appendix A) and then demonstrate their relationship to overall well-being, controlling for other life domains and objective measures of the financial domain. Our findings demonstrate that perceived financial well-being is a key predictor of overall well-being and comparable in magnitude to the combined effect of other life domains (job satisfaction, physical health assessment, and relationship support satisfaction). Further, the relative importance of current money management stress to overall well-being varies by income groups and due to the differing antecedents of current money management stress and expected future financial security. Implications for financial well-being and education efforts are offered.

Abstract Feeling crowded in a shopping environment can decrease consumers’ evaluations of a product or service and lower customer satisfaction. However, the present research suggests that a crowded environment can sometimes have a positive impact on consumer behavior. Although feeling crowded motivates consumers to avoid interacting with others, it leads them to become more attached to brands as an alternative way of maintaining their basic need for belongingness. The effect does not occur (a) when the crowding environment is composed of familiar people (and, therefore, is not considered aversive); (b) when individuals have an interdependent self-construal (and consequently, high tolerance for crowdedness); (c) when people are accompanied by friends in the crowded environment; (d) when the social function of the brands is made salient; (e) when people have never used the brand before; or (f) when the brand is referred to as a general product rather than a specific brand.

AbstractPsychological ownership, or the feeling that something is mine, has garnered growing attention in marketing. While previous work focuses on the positive aspects of psychological ownership, this research draws attention to the darker side of psychological ownership—territorial behavior. Results of five experimental studies demonstrate that when consumers feel psychological ownership of a target, they are prone to perceptions of infringement and subsequent territorial responses when they infer that another individual feels ownership of the same target. Potential infringers are held less accountable when they acknowledge ownership prior to engaging in otherwise threatening behaviors, and when they could not be expected to know that a target is owned, as it was not clearly marked. In addition, high narcissists are subject to a psychological ownership metaperception bias, and are thus more apt than low narcissists to perceive infringement. A multitude of territorial responses are documented for both tangible (coffee, sweater, chair, pizza) and intangible (a design) targets of ownership. Further, consumers infer the psychological ownership of others from signals of the antecedents of psychological ownership: control, investment of self, and intimate knowledge. Theoretical implications for territoriality and psychological ownership are discussed, along with managerial implications and areas for future research.

Abstract Digital goods are, in many cases, substantive innovations relative to their physical counterparts. Yet, in five experiments, people ascribed less value to digital than to physical versions of the same good. Research participants paid more for, were willing to pay more for, and were more likely to purchase physical goods than equivalent digital goods, including souvenir photographs, books (fiction and nonfiction), and films. Participants valued physical goods more than digital goods whether their value was elicited in an incentive compatible pay-what-you-want paradigm, with willingness to pay, or with purchase intention. Greater capacity for physical than digital goods to garner an association with the self (i.e., psychological ownership) underlies the greater value ascribed to physical goods. Differences in psychological ownership for physical and digital goods mediated the difference in their value. Experimentally manipulating antecedents and consequents of psychological ownership (i.e., expected ownership, identity relevance, perceived control) bounded this effect, and moderated the mediating role of psychological ownership. The findings show how features of objects influence their capacity to garner psychological ownership before they are acquired, and provide theoretical and practical insights for the marketing, psychology, and economics of digital and physical goods.

AbstractThis article introduces the fresh start mindset, defined as a belief that people can make a new start, get a new beginning, and chart a new course in life, regardless of their past or present circumstances. With historical roots in American culture and neoliberalism, and with contemporary links to liquid modernity and global consumer culture, this mindset structures reasoning, experience, and everyday language, and guides behavior across self- and other-transformative consumption domains. We develop a six-item scale (FSM) to measure the fresh start mindset and situate it within a broader nomological network, including growth mindset, personal capacity for change, optimism, future temporal focus, internal locus of control, self-efficacy, perseverance, resilience, and consumer variety seeking. Individuals with a stronger (vs. weaker) fresh start mindset invest in transformative change through changing their circumstances, including their own consumption choices (e.g., buying a new pair of sunglasses and getting a new self); they also are more supportive of transformative programs that assist those who are challenged to get a fresh start (i.e., disadvantaged youth, at-risk teens, veterans, and tax-burdened adults). Our work significantly contributes to transformative consumer research with attention to self-activities and programs for vulnerable populations that enable new beginnings.

AbstractConsumers often pursue goals that lack specific end states, such as goals to lose as much weight as possible or to pay off as much debt as possible. Yet despite considerable interest in the consequences of setting nonspecific (vs. specific) goals, how goal specificity affects motivation throughout goal pursuit is less well understood. The current research explores the role of reference points in shaping goal specificity’s effects. We propose that goal specificity alters what reference point consumers spontaneously adopt during goal pursuit: for specific goals, the end state tends to be more salient, but for nonspecific goals, the initial state should be more salient. Five studies investigate how this difference in focal reference points shapes (1) the relationship between goal progress and motivation, (2) when (i.e., at what level of goal progress) goal specificity produces the greatest difference in motivation, and (3) the underlying process driving these effects. Our findings advance understanding of the relationship between goal specificity, goal progress, and motivation, and in doing so, underscore the critical role that reference points play in goal-directed behavior. In addition, the findings offer practical insight into how best to set important financial, health, and other consumer goals to enhance motivation.