José Antonio Rosa

Decision Making and Coping of Functionally Illiterate Consumers and Some Implications for Marketing Management

A study of the decision making and coping of functionally illiterate consumers reveals cognitive predilections, decision heuristics and trade-offs, and coping behaviors that distinguish them from literate consumers. English-as-a-second-language and poor, literate consumers are used as comparison groups. The strong predilection for concrete reasoning and overreliance on pictographic information of functionally illiterate consumers suggest that companies should reconsider how they highlight the added benefits of new products or the differentiating aspects of existing product offerings across channels such as advertising, in-store displays, and positioning. Concrete reasoning also has strong implications for the execution and presentation of price promotions through coupons and in-store discounts, because many consumers are unable to process the information and thus avoid discounted products. Finally, the elaborate coping mechanisms identified and the loyalty that functionally illiterate consumers display toward companies that are sensitive to their literacy and numeracy deficiencies reveal a potential for loyalty programs aimed at this population that do not involve price discounts.

Product and Market Development for Subsistence Marketplaces: Consumption and Entrepreneurship beyond Literacy and Resource Barriers

In August 2006, 85 academicians and practitioners from industry and the nonprofit sector came together on the campus of the University of Illinois at Chicago for a conference unlike others in recent management research history. This conference focused on the subsistence marketplace and its constituents – the billions of individuals and families living in substandard housing, with limited or no education; having limited or no access to sanitation, potable water, and health care; and earning minimal incomes. Subsistence consumers and entrepreneurs have been largely ignored by contemporary marketing and management research and practice, but are poised to become a driving force in 21st century economic and business development. It is expected that as many as 1 billion new consumers wielding discretionary income will enter global markets before 2020. In addition, even among those consumers who lack discretionary income, it is expected that they will be much more active in the marketplace in the near future, because of expanded access to products and information through the Internet and wireless technologies (Davis & Stephenson, 2006). Moreover, the combined purchasing power of these consumers, already in the trillions of dollars, is likely to grow at higher rates than that of consumers in industrialized economies. These factors come together to suggest that consumer markets will need to adjust radically to the needs and demands of these emerging markets over the next 2 to 3 decades, even though companies and scholars across the business disciplines know very little about subsistence consumers. It was this need for knowledge about subsistence marketplaces that inspired the conference and the research presented here.

Comparing appreciative inquiry to a diagnostic technique in organizational change: The moderating effects of gender

Organizational development and change may be initiated from two different starting points. A diagnostic approach begins with an examination of problems to assess and correct dysfunction. In contrast, the Appreciative Inquiry approach begins by identifying an organization’s strengths as resources for change. An experimental study was conducted to compare the processes and outcomes that arise during the first phase of each approach. Results show that both approaches lead to different but favorable and complementary outcomes. Both participant gender and the gender construction of the dyads in which individuals participated moderate these effects in unexpected ways. The implications for understanding the processes by which both methods work, and the potential for combining them, are discussed

A within-subject longitudinal study of the effects of positive job experiences and generalized workplace harassment on well-being.

Drawing on the mobilization-minimization hypothesis, this research examines the influence of positive job experiences and generalized workplace harassment (GWH) on employee job stress and well-being over time, postulating declines in the adverse influence of GWH between Time 1 and 2 and less pronounced declines in the influence of positive job experiences over this same timeframe of approximately one year. A national sample of 1,167 workers polled via telephone at two time periods illustrates that negative job experiences weigh more heavily on mental health than do positive job experiences in the short-term. In the long-term, GWHs association with mental health and job stress was diminished. But its effects on job stress, and mental health, and physical health persist over one year, and, in the case of long-term mental health, GWH overshadows the positive mental health effects of positive job experiences. The research also argues for a reconceptualization of GWH and positive job experiences as formative latent variables on theoretical grounds.

E-(Embodied) Knowledge and E-Commerce: How Physiological Factors Affect Online Sales of Experiential Products

Internet shopping (or e-shopping) is emerging as a shopping mode and with its requirement of computer access and use, it is interesting to find out whether consumers associate e-shop-pers with any gender-specific stereotypes. Such stereotypes may be expected because shopping is considered a “female typed” activity whereas technology is considered to be in the male domain. In this article, we address this central question in an empirical study that varies the shopping context in terms of outlet type, product type, and purchase purpose. The respondents are college students with Internet access and familiarity with online shopping. The experimental results suggest that the global stereotype, held by both male and female respondents, is that of a shopper as a woman. This stereotype reverses when the product purchased is technical and expensive (DVD player). In terms of personality attributions, the female shopper is seen to be less technical, less spontaneous, and more reliable and attributions regarding personal characteristics are not influenced significantly by product type, outlet type, or purchase purpose.This article examines consumers’ intention to shop online during the information acquisition stage. Specifically, the study incorporates 3 essential variables, which are likely to influence consumer intentions: (a) convenience characteristic of shopping channels, (b) product type characteristics, and (c) perceived price of the product. Results indicate that convenience and product type influence consumer intention to engage in online shopping. When consumers perceive offline shopping as inconvenient, their intention to shop online is greater. Also, online shopping intention is higher when consumers perceive the product to be search goods than experience goods.The rapid growth of the Internet as an information medium has given rise to “infomediaries” that help aid consumers in making decisions. Recent research in the context of recommendation agents has shown that their use can lead to increases in consumer welfare. However, it is not clear if this varies by customer and by type of product. In this article, the role of category risk, product complexity, and customer category knowledge in moderating the impact of recommendation agents on consumer welfare is examined. A controlled experiment simulating a recommendation agent was used in conducting this study. Various product characteristics for which the recommendation agent provided information were manipulated. The results support some of the hypothesized effects. It is shown that category risk moderates the impact of recommendation agents on decision quality and product complexity moderates the role of recommendation agents on amount of search. The implications of this for theory and research on the Internet are discussed.This article examines consumers’ reactions to the provision of direct access to uncensored competitor price information within an electronic store. Based on notions derived from signaling theory, prior research on trust, and attribution theory, we propose that the facilitation of such access may have a positive impact on consumer preference for an online retailer. Furthermore, we predict that this effect will be moderated by how attractive a vendors prices are. The results of a laboratory experiment demonstrate the possibility that a retailers act of providing access to uncensored competitor price information may result in enhanced long-term preference for that vendor, especially if the latters prices are neither clearly superior nor obviously inferior to those of its competitors. Finally, this positive effect of facilitating access to competitors’ prices on consumer preference is mediated by the perceived trustworthiness of the online retailer.In this article we examine the effect of language, graphics, and culture on bilingual consumers’ Web site and product evaluations. We extend previous bilingual memory research to affective responses and to a new medium—the Internet. A series of studies suggests that attitudinal measures are influenced by the interaction of Web site language with two types of congruity: graphic congruity and cultural congruity. We conclude from our findings that both types of congruity influence bilinguals attitude-formation processes.Advances in information technology are making it possible to deliver multisensory stimuli over the Internet, giving rise to what we call second-generation electronic commerce, and to Web-based exchanges that approach in-store episodes and greatly exceed existing mass-market media in experiential richness. Delivery of multisensory stimuli is not enough, however, to fully activate, generate, and manage the embodied knowledge that is critical to consumer thinking about many types of products and services. Embodied knowledge refers to information elements that are generated and maintained outside the brain cavity and that are incorporated into consumer assessments of products and services. The view that consumers integrate embodied and conceptual knowledge into mental simulations of products and services is used as a foundation for a more general exposition of embodied knowledge and cognition. Three elements of embodied knowledge—body mapping and monitoring systems, proprioceptive knowledge, and body boundaries—are discussed, including their implications for e-commerce theory and practice and for marketing research in general. The methodological challenges of better understanding and managing embodied knowledge are also discussedConsumers often search the Internet for agent advice when making decisions about products and services. Existing research on this topic suggests that past opinion agreement between the consumer and an agent is an important cue in consumers’ acceptance of current agent advice. In this article, we report the results of two experiments which show that different types of past agreements can have different effects on the acceptance of current agent advice. In Study 1, we show that in addition to the overall agreement rate, consumers pay special attention to extreme opinion agreement when assessing agent diagnosticity (i.e., extremity effect). In Study 2 we show that positive extreme agreement is more influential than negative extreme agreement when advice valence is positive, but the converse does not hold when advice valence is negative (i.e., positivity effect). We conclude by identifying promising avenues for future research and discuss implications of the results for marketers in areas such as design of intelligent online recommendation systems and word-of-mouth management on the Internet.When consumers use computers to help make purchase decisions, how do they attribute responsibility for the positive or negative outcomes of those decisions? The results suggest that, in general, attributions of responsibility reflect a self-serving bias: Consumers tend to blame computers for negative outcomes and tend to take personal credit for positive ones. However, the results also suggest that, when consumers have a history of intimate self-disclosure with a computer, this pattern of attribution is significantly mitigated: Consumers are more willing to credit the computer for positive outcomes, and are more willing to accept responsibility for negative outcomes. In addition, this research provides evidence that the causal relation between self-disclosure and attributions of responsibility is partially mediated by attraction.In the context of online shopping, a major change in the consumer decision-making cognitive process is the partial shift of effort from consumers to electronic decision aids. The objective of this article is to investigate consumers’ perception of the “effort” expended by decision aids and how this perception influences their satisfaction with the decision process. The findings of two laboratory experiments show that, in comparison to human decision aids, consumers believe that electronic aids exert less effort but save them an equal level of effort. It is also shown that consumers’ satisfaction with the search process is positively associated with their perception of effort saved for them by electronic aids.Recently, it has been proposed that creating compelling experiences in the distinctive consumption environment defined by the Internet depends on facilitating a state of flow. Although it has been established that consumers do, in fact, experience flow while using the Web, consumer researchers do not as yet have a comprehensive understanding of the specific activities during which consumers actually have these experiences. One fruitful focus of research on online consumer experience has been on two distinct categories of consumption behavior— goal directed and experiential consumption behavior. Drawing distinctions between these behaviors for the Web may be particularly important because the experiential process is, for many individuals, as or even more important than the final instrumental result. However, the general and broad nature of flow measurement to date has precluded a precise investigation of flow during goal-directed versus experiential activities. In this article, we explore this issue, investigating whether flow occurs during both experiential and goal-directed activities, if experiential and goal-directed flow states differ in terms of underlying constructs, and what the key characteristics are—based on prior theory—that define “types” of flow experiences reported on the Web. Our approach is to perform a series of quantitative analyses of qualitative descriptions of flow experiences provided by Web users collected in conjunction with the 10th GVU WWW User Survey. In contrast with previous research that suggests flow would be more likely to occur during recreational activities than task-oriented activities, we found more evidence of flow for task-oriented rather than experiential activities, although there is evidence flow occurs under both scenarios. As a final note, we argue that the role that goal-directed and experiential activities may play in facilitating the creation of compelling online environments may also be important in a broader consumer policy context.The World Wide Web has the potential to change much about consumer behavior and consumer communication. Web-based chatting, the focus of this study, is one example. In this article, we provide an illustrative description of various consumer chatting situations, examine the motivations underlying Web-based chatting, and discuss the ways in which chatters act as “naive marketers” in their attempt to attract chatting partners. Using information gathered through the combined use of an Internet survey and a content analysis, we explore five research questions: who chats, why individuals chat, how chatters communicate, what links exist between Web chatting and other consumer behaviors, and which factors lead to a successful chatting experience? The findings provide some insight into how consumers market themselves in cyberspace and the effectiveness of their “personal advertisements” in attracting other chatters.Whereas the Internet itself poses unique challenges and opportunities, it is possible that the context of the Internet (a computer context) affects consumers differently than other contexts would, thereby causing people to think about and evaluate products differently. Drawing from learning theory and the functional theory of attitudes, it is predicted that computers, by being associated with the accessibility of detailed information, will elicit a need for meaning. Consequently, when a computer is present, people may think about and seek more product information than will those evaluating the product on paper (a print context). The results of an experiment support these hypotheses. Across two diverse products, the mere presence of a computer caused people to think more about and request more information about the product than those in the print context did. Furthermore, the attitudes of those in the computer context were more representative of both dimensions described in the advertisement, whereas the attitudes of those in the print context reflected the valence of the dimension that is typically used when evaluating the product. Implications for promoting products and conducting market research in computer environments are discussed.In the bricks-and-mortar environment, stores employ sales people that have learned to distinguish between shoppers based on their in-store behavior. Some shoppers appear to be very focused in looking for a specific product. In those cases, sales people may step in and help the shopper find what they are looking for. In other cases, the shopper is merely “window shopping.” The experienced sales person can identify these shoppers and either ignore them and let them continue window shopping, or intercede and try and stimulate a purchase in the appropriate manner. However, in the virtual shopping environment, there is no sales person to perform that role. Therefore, this article theoretically develops and empirically tests a typology of store visits in which visits vary according to the shoppers’ underlying objectives. By using page-to-page clickstream data from a given online store, visits are categorized as a buying, browsing, searching, or knowledge-building visit based on observed in-store navigational patterns, including the general content of the pages viewed. Each type of visit varies in terms of purchasing likelihood. The shoppers, in each case, are also driven by different motivations and therefore would respond differentially to various marketing messages. The ability to categorize visits in such a manner allows the e-commerce marketer to identify likely buyers and design more effective, customized promotional message.We propose an analytical framework for studying bidding behavior in online auctions. The framework focuses on three key dimensions: the multi-stage process, the types of value-signals employed at each phase, and the dynamics of bidding behavior whereby early choices impact subsequent bidding decisions. We outline a series of propositions relating to the auction entry decision, bidding decisions during the auction, and bidding behavior at the end of an auction. In addition, we present the results of three preliminary field studies that investigate factors that influence consumers’ value assessments and bidding decisions. In particular, (a) due to a focus on the narrow auction context, consumers under-search and, consequently, overpay for widely available commodities (CDs, DVDs) and (b) higher auction starting prices tend to lead to higher winning bids, particularly when comparable items are not available in the immediate context. We discuss the implications of this research with respect to our understanding of the key determinants of consumer behavior in this increasingly important arena of purchase decisions.

Micro-Level Product-Market Dynamics: Shared Knowledge and Its Relationship to Market Development

This work draws on consumer and psychology research to explain sociocognitive aspects of product-market dynamics at a higher level of specificity than prior research. The authors extend the field’s understanding of market-shaping shared knowledge through a theory-informed discussion of how shared product knowledge comes to exist and how it changes as product markets develop. They define shared knowledge as the aspects of product representations that are common across the minds of market actors, making it possible for them to understand one another. The authors also discuss ways to track shared knowledge content that is expressed in market narratives. As the characteristics of shared knowledge are explained and linked to stages of product-market development, the authors develop a set of researchable propositions to guide future research. The theoretical arguments and propositions in this article complement extant marketing strategy research by integrating individual-level consumer theory with market evolution models.

Marketing Education for the Next Four Billion Challenges and Innovations

This article argues for a third transformation in marketing pedagogy, one made necessary by the emergence of subsistence consumers as a high-growth market segment. Continued double-digit growth in buying power and consumption among the world’s poor appear certain, provided that the subsistence merchants serving such markets are effective. Ensuring such effectiveness, however, demands the training of millions of such marketers, which in turn requires the development of pedagogical approaches that take into account their unique capabilities, characteristics, and orientation. The article begins with a brief review of the historical record of transformation in marketing education in response to market changes, and then moves into a detailed description of subsistence merchants and the challenges they present to contemporary marketing education practices. Focus then shifts to the Marketplace Literacy Project (MLP) and its evolving methodologies for teaching marketing to subsistence merchants in India. The article concludes with takeaways from Marketplace Literacy Project’s efforts that are generalizable to other subsistence contexts and serve to inspire marketing educators to devote energy and resources to improving marketing effectiveness among the global poor.

Subsistence Consumer-Merchant Marketplace Deviance in Marketing Systems Antecedents, Implications, and Recommendations

This article examines deviant marketplace behaviors that appear in marketing systems involving subsistence consumer merchants, and their beneficial and detrimental implications. Deviant marketplace behaviors are violations of social norms that often arise among subsistence consumer merchants facing conflicting normative goals and incompatible means for meeting such goals. Social and environmental factors that exacerbate such conflicts, common in bottom-of-the-pyramid marketplaces, are explored within a deviant behavior typology. The research uses ethnographic data gathered from subsistence consumer-merchants to illustrate ways in which deviant behavior can be beneficial or detrimental and the unique challenges that partnering with subsistence consumer merchants may entail. It also provides insights into what conflicting norms and deviance engender in marketing systems.

The role of retentions in how marketing managers change their strategic orientation

This study looks at how a marketing organization changed its strategic orientation in response to environmental factors, and at the influence of retentions on the change effort. Retentions are defined , here as the concepts and mental models used by marketing managers when trying to respond to environmental changes. The influence of retentions on strategic orientation and factors affecting how retentions change are studied in the context of how a bank trust department responded to the deregulation of the financial services industry between 1982 and 1984. The dominant retentions held by managers both before and after deregulation are presented, and the events that contributed to the change of the retentions are examined. The results suggest that retentions prior to deregulation focused on external sources of influence and were associated with a defender strategic orientation. Retentions after deregulation, once the organizations strategic orientation stabilized, focused on critical resources and competito...

Subsistence Consumer-Merchant Deviance: A Conceptual Foundation

Recent research in the subsistence consumer domain has focused on an array of topics, including understanding relationships within social and kinship communities (Viswanathan, Gajendiran, and Venkatesan 2008), the influence of subsistence consumption culture on marketing systems (Eckhardt and Mahi 2012) and business functions (Viswanathan et al. 2009), the influence of economic liberalization on subsistence economies on strategic and organizational change (Carman and Dominguez 2001) and social marketing for improved economic well-being (Kotler, Roberto, and Leisner 2006). These and similar studies effectively identify some of the underlying cognitive, behavioral, social and physiological complexities of subsistence markets and their subsequent influence on marketing strategies and tactics. There has been limited study, however, into how these complex factors drive subsistence consumer-merchant misbehavior. Subsistence consumer-merchants (SCMs) are defined as consumers who provide for themselves and their families by managing microenterprises that serve as important final links in the supply chain for major companies (Viswanathan, Rosa and Ruth 2010). Their misbehavior, also called deviant behavior (Merton 1949), influences the relationships that subsistence consumer-merchants have with different actors within their social system, and on the social image of companies and their products. Deviant behavior exists whenever individuals, in this case SCMs, violate prevailing norms for their social groups or communities (Warren 2003). This paper focuses on the pervasiveness of deviant behavior among SCMs and some of the social and cognitive factors that lead to such behaviors. Its underlying thesis is that deviant behavior among SCMs is unavoidable, and that companies and marketing systems seeking to do businesses in emerging markets need to develop plans and procedures to deal with it. The paper contributes to the field’s knowledge of SCM behaviors.