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Guilty Free Consumption of the Middle Aged Man Guilty Free Consumption of Middle Aged Man in Automotive Industry Jovana Ciganović European Master in Business Studies University of Kassel Exposé [email protected] Kassel, 9th of November, 2014 GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 2 Abstract Background: The feeling of guilt is an increasing sensation in today’s consumeristic society. Demand of self-fulfilling purchases can be observed in the midlife crisis. This middle life period might be turning point in man’s consumption patterns, changing its values and preferences. This breakpoint will lead to the different desires in the car consumption. Guilty free consumption is an interesting new insight of sensations to be considered in purchasing behavior and post purchasing feelings of the middle aged man. Purpose: The aim of this work is to give a better understanding of possible existence of guilt in man’s changing behaviors. These behavior will be concretized in purchasing of a new vehicle during the midlife crisis. This will be done by analysis of the different variables in consumer behavior of auto industry which might produce guilty feelings. Method: Qualitative personal depth interviews will be conducted of middle-higher European man’s segment aged from 38 to 60 years. Keywords: Guilty free consumption, cognitive dissonance, middle aged man, midlife crisis, automotive industry, cars GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 3 TABLE OF CONTENTS Abstract .............................................................................................................................. 2 List of Abbreviations ......................................................................................................... 4 1. Introduction................................................................................................................ 5 2. Problem Statement & Research Question ........................................................... 6 3. Review of the Literature .......................................................................................... 7 Table 1: Guilty Free Consumption ............................................................................. 7 Table 2: Theory of Cognitive Dissonance ................................................................. 9 Table 3: Middle Aged Man ........................................................................................ 11 Table 4: Auto Industry ................................................................................................ 12 4. Methodology............................................................................................................ 15 5. Overview of Chapters ............................................................................................ 15 6. Work Plan ................................................................................................................ 17 References ...................................................................................................................... 18 GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN List of Abbreviations GF Guilty Free GFC Guilty Free Consumption TCD Theory of Cognitive Dissonance 4 GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 5 1. Introduction Background: Feel of guilt can explain consumer behavior (Burnett & Lunsford, 1994) and is nowadays proliferous and extended to other industries apart from the food industry (Goldsmith, Cho, & Dhar, 2012). Socially responsible, environmentally friendly and ethical consumption are in our concerns. Green marketing is earning positions in the shelves and changing consumer behaviors (Gonzalez, Korchia, Menuet, & Urbain, 2009). Feeling guilty when buying can affect other aspects of consumer’s decision process apart from the socially responsible ones (Burnett & Lunsford, 1994). This other aspect can be the guilt we feel when eating the additional peace of chocolate after abundant meal (Goldsmith et al., 2012, p. 875). Guilty Free Consumption (GFC) is named by new strive in marketing which applies this concept regarding consumer behaviors (Hirebet, 2013). The purchase of the new automobile is a long term investment of a durable good. Vehicles nowadays are more and more part of the image and lifestyle and an important accessory (Pope, 2007). Their purchase process is meditated, complex and evolves a lot of variables. Those variables might be personal or as well communally shared with other members of the family (Sari & Kusuma, 2014). An important segment of the auto industry market is the middle aged man. This segment is composed of man aged between 35 and 60’s being in the peak of their careers (McManus, Senter, Curtin, & Garver, 2009; Morgan, Patton, & Kent, 1985). Normally, the disposable income is higher and desire of purchasing new vehicle is different than in other segments (Sudhir, 2001). Problem statement: Changing attitudes of middle aged man is a fact that can be reflected in the different consuming behavior. Different choices, predetermining variables and attributes might be selected when purchasing a new vehicle. Does middle aged man really feel guilty when purchasing a new vehicle for himself? GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 6 Purpose/Aim: If the feeling of guilt is present in this specific purchases and how can middle aged man be absolved of this guilt. The aim of this thesis is to analyze the GFC of the middle aged man segment when purchasing a new vehicle. This paper by finding the existence of variables which makes a middle aged man feel guilty when purchasing a new car, can give automotive companies a new marketing strategy insight by using GF elements. 2. Problem Statement & Research Question The concept of GFC applied in auto industry concerning middle aged man consumption is a gap in the literature. This leads to the research of the possible elements influencing the midlife crisis consumption and its correlation with guilt in automotive industry. There for, the research question is stated as: How guilty free elements exist in a vehicle consumption of middle aged man? The GFC as a new concept is very difficult to be analyzed and hardly can reach consumer’s psychological deeper feelings and conscious or unconscious insights through interviews. There for firstly the guilty elements present in the car purchases will tried to be found through qualitative depth interviews. Consequently those guilty elements will be suggested for a possible use in a marketing strategies as a relievers of guilt in the car purchases. In this way the GFC will be emphasized and will respond the research question. Due to the complexity and uncertainty of possible existing or non-existing elements object of this paper, the research question is the main purpose to be answered in this work. GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 7 3. Review of the Literature Table 1: Guilty Free Consumption This is the starting point of the literature review. The concept of the Guilty Free Consumption (GFC) is a gap in the literature research till now. Through these references the definition of the GFC will be developed and will try to come closer to the real consumer behavior present in the purchases and guilt feelings. Guilt is a feeling with more weight than expected when purchasing. It also affects not just oneself but is related to the others (family, friends). TOPIC TITLE Guilt definition Compliance without Pressure: the effects of guilt Guilt and consumer behavior Guilt in marketing research: an elicitation– consumption perspective and research agenda Measuring emotions in the consumption experience (Antonetti & Baines, 2014) The nature of self-reported guilt Guilt in purchasing feelings Relationship of guilt with the others REFERENC E (Freedman et al., 1967) JOURNAL CONTENT KEY FINDINGS Guilt definition and connection with consumer behaviour. Journal of Personality and Social Psychology, Vol. 7 No. 2, pp. 117-24 International Journal of Managemen t Reviews Increased guilt leads to increased compliance. Analysis of guilt in a consumption process. Circumstance s of feeling of guilt and managerial implication for marketing. (Richins, 1997) Journal of Consumer Research, Vol. 24, No. 2 (September 1997), pp. 127-146 Experiment done for measurement of emotions in purchasing processes. (Dahl, Honea, Manchada, 2003) Marketing Letters 14:3, 159–171, (2003) Guilt is an emotion present in the consumption As a result guilt was found as one of the present emotions when purchasing, even if on the beginning was not given much attention. How guilt can affect not just oneself but others (family, GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN in consumption contexts 8 and therefore has consequence s. Social and environmental concerns in the consumption choices is growing. environment, friends). Desires, wishes, fantasy, etc. are important part of consumer behaviour and its purchases. Through the ZMET analysis customers confirmed that they will not willing to buy a luxury hybrid car for their personal enjoyment. Guilt can be experienced as negative or positive emotion. How do socially responsible consumers consider consumption? An approach with the free associations method Metaphors of consumer desire (Gonzalez et al., 2009) Recherche et Applications en Marketing, vol. 24, n° 3/2009 (Belk, 1996) Advances in Consumer Research Volume 23, +1996 Desires are different than the needs. Today’s consumers are full of desires more than needs. Luxury consumptio n and sustainabilit y application The value of sustainable luxury in mature markets (Approach & Shammas, 2013) Journal of Corporate Citizenship Values of sustainable goods often focus on society’s welfare rather than on individual, ego-centred motives. Experience of guilt When guilt begets pleasure: the positive effect of a negative emotion (Goldsmith et al., 2012) Journal of Marketing Research Vol. XLIX (December 2012), 872– 881 (AMA) Guilt and its affection with others Conceptualizin g guilt in the consumer decision‐ making process (Burnett & Lunsford, 1994) Journal of Consumer Marketing, Vol. 11 Iss 3 pp. 33 - 43 Guilt as a negative emotion enhances the pleasure experience from hedonic Consumption. Guilt is an emotion experienced in the consumer behaviour which can be used by Social Responsible Consumptio n Desires and pleasure Dimension of the Social Responsible Consumption. Consumers decisions of the purchases on the others can have influence and make the first GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN Guilt is interpersona l Three Rs of interpersonal consumer guilt: relationship, reciprocity, reparation (Dahl, Honea, & Manchanda , 2005) Journal of Consumer Psychology, 15(4), 307-3 15 Regret and decision making A theory of regret regulation (Pieters & Zeelenberg , 2007) Journal of Consumer Psychology, 17(1), 29-35 Definition GFC Guilt-free consumption (Hirebet, 2013) Korea Times, November 24, 2013 Sunday Consumer future desires Consumer 2020: reading the sings (Deloitte, 2011) Deloitte 9 marketers. Guilt can lead to a significant changes in consumer behaviour. Experience of guilt during purchase action and the relation with a salesperson. Regret is the feeling based on decision making in order to optimize the outcomes and minimize the long term bad outcomes of present decisions. Consumers with the amount of information and today’s life feel more and guiltier while consuming. Predicting consumer behaviours. one feel guilty. Guilt is has interpersonal relations and is connected with other interpersonal dimensions. Prevention failures and regret in person’s minds. Applicable to the consumer behaviour. Why GFC is important now a days equally from the consumer point of view as for the companies. Consumer’s future concerns. Table 2: Theory of Cognitive Dissonance The applied theory in this master thesis study will be the cognitive dissonance theory. This theory is based in the mechanisms of higher psychological levels in our brains where the state of inconsistence of made decisions plays main role. This inconsistence is named dissonance. Dissonance is a psychological feeling that stress us to eliminate it and is present in a consumer behavior (Festinger, 1957). This theory is very linked to the GFC and therefore will GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 10 be used to connect the psychological feelings of guilt with dissonance and obtain as a result the elements and factors which might be influential in the car purchases of the middle aged man. TOPIC TITLE REFERENCE JOURNAL CONTENT TCD A theory of cognitive dissonance (Festinger, 1957) Stanford University Press, 1962 TCD in consumer behavior An experiment on consumer dissonance (Holloway, 1967) Journal of Marketing, Vol. 31, No. 1 (Jan., 1967), pp. 39-43 Development of the cognitive dissonance theory trough experiments. Experiment on consumer dissonance. TCD and consumer behavior Can Cognitive Dissonance Theory Explain Consumer Behavior? Attitude change and cognitive dissonance (Oshikawa, 1969) Journal of Marketing, Vol. 33, No. 4, Part 1 (Oct., 1969), pp. 44-49 TCD applied in the marketing research and decision processes. (Auster, 1965) Journal of Marketing Research, Vol. 2, No. 4 (Nov., 1965), pp. 401-405 TCD Further pursuit of the dissonant consumer: a comment (Engel, 1965) TCD and decision making The pursuit of the dissonant consumer (Straits, 1964) TCD in marketing and The theory of cognitive dissonance: (Telci, Maden, & Kantur, 2011) Journal of Marketing, Vol. 29, No. 2 (Apr., 1965), pp. 33-34 Journal of Marketing, Vol. 28, No. 3 (Jul., 1964), pp. 62-66 Procedia Social and Behavioral Sciences 24 Experiment of ideological and technological propaganda and its analysis trough TCD. Discussing over TCD and its commitments for marketing implications. Analysis of the TCD and its applications on marketing strategies. TCD and attitudes KEY FINDINGS Definition of the TCD. Implication of dissonance in purchasing process and decisions. How TCD can be applied in a marketing. Further insights into TCD. Further insights into TCD. Further findings in TCD. Observation of Implications human for relations and marketing and GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN managemen t a marketing and management perspective (2011) 378– 386 11 the relation with TCD. managemen t of TCD. Table 3: Middle Aged Man In this section we are going more into depth of the selected segment, the middle aged man. Concretely in this literature we see the different phases the middle aged man passes through, its psychological insights and reasons for the actual changes in its behavior. These stages are named also as middle life crisis which have influence on the family life but as well on the professional careers. The deeper reasons of these changes in the attitude will be provided and this will lead us to the concreate findings of the possible elements present in the car purchases and its feelings of guilt. TOPIC TITLE REFERENCE JOURNAL CONTENT Consumers’ reasoning in decision making Decision difficulty in the age of consumer empowerm ent (Broniarczyk & Griffin, 2014) Journal of Consumer Psychology 24, 4 (2014) 608–625 Reasons behind the man’s midlife crisis Marital decision making When a manager reaches middle age (Hill, 2001) Dimensions of marital roles in consumer decision making: revisited Childhood residential stability and health at midlife (Shuptrine & Samuelson, 1976) International Managemen t, McGraw Hill Publications Journal of Marketing Research Vol. XIU (February 1976), 87-91 Consumers decision making process nowadays and its complexity. Middle aged managers’ crisis and its implications. Childhood affects midlife (Bures, 2003) American Journal of Public Health July 2003, Vol. 93, No. 7 The spouse’s dominance and the final decision maker. Family, social and neighbourho od environment in childhood has an KEY FINDINGS Complexity and its factors and possible type of consumers. Reasons of the managers/ma n’s middle age crisis. Decision influence of final purchase in spouse’s behaviour (car and furniture). Midlife health is influenced by childhood stability. GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN Midlife transaction Stages of the middle age and different variables influencing Transformat ions of life structure and personal paradigm during the midlife transition From crisis to growth at midlife: changes in personal paradigm (Wolfe, 1990) Human Relations 1990 Vol. 43, 19 957973 (Connor & Wolfe, 1991) Journal of Organization al Behaviour, Vol. 12, No. 4 (Jul., 1991), pp. 323-340 12 impact in the person’s future life. Midlife transaction of man and women. Its social, emotional and cognitive factors. Transaction processes and paradigms in the middle life. Life structure and its changes during the midlife. Personal life issue in the middle age. Table 4: Auto Industry This section of literature review will be used in the theoretical framework as well as for the later findings of qualitative interviews. Here we are trying to overview and extract relative facts of the auto industry for TCD, GFC and middle aged man, to be able to create and obtain elements for the response of the research question. Combination of social, ethical, psychological characteristics supporting the findings of variables and elements for the purpose of the thesis. This is not a separate section in the study. It is a support and focus for the framework directing it to the auto industry. TOPIC TITLE REFERENCE JOURNAL CONTENT TCD and car industry Are automobile purchasers dissonant consumers? (Engel, 1963) Experiment of TCD on the new car owners. Persuasion in car sales Selfconfidence and persuasion (Bell, 1967a) Journal of Marketing, Vol. 27, No. 2 (Apr., 1963), pp. 55-58 Journal of Marketing Research, Vol. 4, No. Car sellers and its influence on clients with KEY FINDINGS How advertising in auto industry can increase or lower the dissonance. Selfconfidence and persuasion GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN in car buying 1 (Feb., 1967), pp. 46-52 Journal of Marketing, Vol. 31, No. 3 (Jul., 1967), pp. 12-16 Asian Marketing Journal Vol.VI - No. 1 lower and higher selfesteem. Post purchase satisfaction in the car industry. Understandin g of how decisions to purchase cars are made and how a person's preferences evolve in the long run. Demand of customized cabins to make a vehicle feel uniquely. Echo Boomers generation are demanding unique rides. How brand identification influences word-ofmouth and Post car purchase phase The automobile buyer after the purchase (Bell, 1967b) What car luxury means Does luxury brand perception matter In purchase intention? a comparison between a Japanese brand and a German brand Experiential analysis of automotive consumptio n (Sari & Kusuma, 2014) (Earl, 2012) Journal of Business Research 65 (2012) 1067-1072 Lifestyle is related to the auto customer Auto makers strive to personalize Interiors (Pope, 2007) Ward’s Auto World Group identificatio n as possible variable Investigatin g antecedents and (Kuenzel & Halliday, 2008) Journal of Product & Brand Manageme nt 17/5 Auto consumer behavior 13 Indonesian consumers’ perception of two different luxury brands, BMW and Lexus. on consumer. Implications for TCD. Continuation of the previous article focusing on car industry. Price might be the variable to take into consideration. Finding of different variables like changes in income levels and personal circumstance s (partner, children and associated logistics). Emotional connection with consumer’s lifestyle. Social identity and understandin g of consumer GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN consequenc es of brand identificatio n (2008) 293– 304 brand repurchase. Demographic differences in the importance that usedvehicle consumers attach to certain marketing and promotional variables. The seller's general reputation is important variable. Competition intensity is rising because of the increasing variety of car concepts in the premium segment with higher revenue opportunities. Connected technology and consumer’s experience. Demographi c differences in second hand car purchase Perceptions of advertising in the market for used vehicles (Urban, Hoffer, & Pratt, 2001) Journal of Advertising Research Definition high vs. premium cars Realizing opportunitie s in the premium automotive market via contextoriented new product positioning (Löffler, Porsche, & Decker, 2012) Journal of Marketing Manageme nt Vol. 28, Nos. 5–6, May 2012, 716–732 Acceleratio (Hasegawa, n of the Brown, Giff, connected Mercadante, experience: 2014) vehicle connectivity and evolving customer expectation s Literature review might be extended. Auto market trends 14 Deloitte behavior. Variables like prestige and satisfaction might be considered. Demographic differences in car purchases. Selling strategies and marketing mix for this specific sector. Premium cars are still most profitable for car companies. Two positioning alternatives – ‘high’ versus ‘premium’ cars. What are consumers today’s behaviors and expectations. GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 15 4. Methodology Qualitative research by Laddering method will be conducted in the automotive family business in Malaga, Spain. This location provides the large number of the segment of analysis with wade range of ages, nationalities, lifestyles, social statuses. The chosen segment corresponds to the scale age of 38 till 60 years old men. The reason of choosing this broad middle age is the fact that the eldest nowadays is longer and that the men in their nearly 60`s still might be passing through the midlife stage. They are attracted by auto industry sector and ready to spend money (Rodham et al., 2013). This particular location with preselected segment are presenting the different European men’s characteristics and values in one concentrated area. Data will be collected by video-recording during December 2014 and January 2015. The analysis method used will be Means End Chain in order to obtain core values and consequently marketing variables. 5. Overview of Chapters Abstract Table of contents List of figures List of tables List of abbreviations 1. Introduction 1.1 Research problem 1.2 Topic importance 1.3 Focus and goal of the report 1.4 Thesis structure GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 16 2. Research question 2.1 Problem statement 2.2 Research question 3. Literature review and theoretical background 3.1 Research Framework 3.1.1 Definition of GFC 3.1.2 Theory of cognitive dissonance 3.1.3 Connection of GFC with theory of dissonance 3.2 Conceptual model 3.2.1 Linking of elements (found from 3.1.3.) with specific segment 3.2.2 Research propositions 4. Research methodology 4.1 Method: Interviews 4.2 Summary of results 4.3 Quality of assessment (link elements from the conceptual model with results found from the interviews) 5. Results 5.1 Knowledge from the study 5.2 Buyers 5.3 Sales staff 5.4 Mismatch / discussion 6. Conclusion 6.1 Contribution knowledge 6.2 Implications for companies 6.3 Suggestions for further researchers 6.4 Limitations of the study GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 7. Bibliography 8. Appendix Personal affirmation in lieu of oath The chapter overview might be subject to modifications during the executed work. 6. Work Plan Dates Phase Task 14/10/2014- General 23/10/2014 Research Exposé discussion and general draft research 24/10/2014- Theoretical 05/11/2014 background Literature review and creation of theoretic part of the thesis (thesis’s sections: 1,2,3) 06/12/2014- Methodology Writing a questionnaire and draft of methodology 10/12/2014 section (thesis’s section 4) 01/12/2014- Intermediate 15/12/2014 Presentation Presentation and intermediate report elaboration 22/12/2014- Data 05/01/2015 collection Gathering data through qualitative interviews 12/01/2015- Analysis 09/02/2015 Analyze the data obtained 09/02/2015- Evaluation 31/03/2015 Evaluation of the results 01/04/2015- Finalization 02/06/2015 Finalization of the MT and its final presentation 17 GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 18 References Antonetti, P., & Baines, P. (2014). Guilt in marketing research: an elicitation-consumption perspective and research agenda. 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A. (1994). Conceptualizing guilt in the consumer decision-making process. Journal of Consumer Marketing, 11(3), 33–43. Connor, D. O., & Wolfe, D. M. (1991). From crisis to growth at midlife : changes in personal paradigm, 12(4), 323–340. Dahl, D. W., Honea, H., & Manchanda, R. V. (2005). Three Rs of interpersonal consumer guilt: relationship, reciprocity, reparation. Journal of Consumer Psychology, 15(4), 307–315. doi:10.1207/s15327663jcp1504_5 GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 19 Dahl, Honea, Manchada, (2003). The nature of self-reported guilt in consumption contexts. Marketing Letters, 14:3, 159–171 Earl, P. E. (2012). Experiential analysis of automotive consumption. Journal of Business Research, 65(7), 1067–1072. doi:10.1016/j.jbusres.2011.02.013 Engel, J. F. (1963). Are automobile purchasers dissonant consumers? Journal of Marketing, 27(2), 55–58. Engel, J. F. (1965). Further pursuit of the dissonant consumer : a comment. Journal of Marketing, 29(2), 33–34. 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Marketing Science, 20(1), 42–60. doi:10.1287/mksc.20.1.42.10196 GUILTY FREE CONSUMPTION OF THE MIDDLE AGED MAN 21 Telci, E. E., Maden, C., & Kantur, D. (2011). The theory of cognitive dissonance: a marketing and management perspective. Procedia - Social and Behavioral Sciences, 24, 378–386. doi:10.1016/j.sbspro.2011.09.120 Urban, David J., Hoffer, George E., Pratt, M. D. (2001). Perceptions of advertising in the market for used vehicles. Journal of Advertising Research, 66–77. Wolfe, D. (1990). Transformations of life structure and personal paradigm during the midlife transition. Human Relations, 43(10), 957–973. doi:10.1177/001872679004301002