Harvard Business Review – Top 10 Journal Articles. Significantly, these basic positions are alternative rather than complementary. To create this article, 17 people, some anonymous, worked to edit and improve it over time. Factor I--Trust in Americans. Robert O. Herrman, "Consumerism: Its Goals, Organizations and Future," Journal of Marketing, 34(October, 1970),55-60. Symptomatic of consumers' malaise are complaints about rising prices, demands for improved products and services, suggestions for improving the adequacy of product information, and concern for the physical environment. Below are some interesting videos covering the development of consumerism in the 20th century that has a wider effect on the understanding of business and its ability to manipulate the consumer and political process. To define the scope of a subject it is important to set parameters or a framework within which it shall be studied. Factor IV combines two related aspects. John P. Clark, "Measuring Alienation Within A Social System," American Sociological Review, 24(December, 1959),783-791. This characterization is supportable and necessary for data collection, but somewhat arbitrary. Typical of these measures is the item tapping support for the leaders of the consumerism movement: "Consumer spokesmen (like Ralph Nader) should be thanked for the work they are doing." Zygmunt asserts the socio-cultural context is central to understanding movement affiliation, Longman and Pruden find anomie important to understanding attitudes toward specific marketing acts, and a number of other investigators report the viability of employing general measures to determine views on particular subjects (Zygmunt, 1972; Longman and Pruden, 1972; McCloskey and Schaar, 1965; Stole, 1956). Consumerism 1. Probabilities of a Type I error for Functions A through E are .000, .000, .022, .032, and .040 respectively. The hypothesis that general attitudes toward the socio-economic environment influence more specific attitudes toward buyer-seller relations is evaluated using factor and canonical correlation analysis. When we set out to explain the scope of consumer behaviour we need to refer to all that which forms part of consumer behaviour. The strongest relationship exhibits a link between the call for more consumer protection and a general distrust in and dissatisfaction with the current performance of America's institutions. Ethical consumerism theory aims to describe, explain, and evaluate the ways in which producers and consumers use the market to support social and environmental values. INTRODUCTION Consumerism, the "social movement seeking to augment the rights and power of buyers in relation to sellers," (Kotler, 1972) is manifest in new laws, regulations, and marketing practices, as well as in new public attitudes toward government and business. The next phase of the analysis investigates these interactions, and also adds the supplementary explanatory power of items loading on Factors I, II, and III as well. Philip Kotler, "What Consumerism Means for Marketers," Harvard Business Review, 50(May/June, 1972),48-57. The next phase of the analysis investigates these interactions, and also adds the supplementary explanatory power of items loading on Factors I, II, and III as well. Zygmunt asserts the socio-cultural context is central to understanding movement affiliation, Longman and Pruden find anomie important to understanding attitudes toward specific marketing acts, and a number of other investigators report the viability of employing general measures to determine views on particular subjects (Zygmunt, 1972; Longman and Pruden, 1972; McCloskey and Schaar, 1965; Stole, 1956). Read more. Preceding factors have expressed the underlying reason for and the need for change in the conduct of the economic system. consumption is not just isolated to the downstream where individuals choose goods to . But superimposed on this strong general correlation are three lesser specific relationships. First, the word "consumer" appears in four of the six items loading highest on the factor. In function B four items have loadings over .4. [The reader may be interested in speculating about how findings are affected by local demographic characteristics even though this research does not attempt to estimate parameters for a universe larger than residents of the Salt Lake metropolitan area. Factor IV--Need for Institutional Change. Charles D. Bolton, "Alienation and Action: A Study of Peace-Group Members," American Journal of Sociology, 78(November, 1972),537-561. In response to these consumer dissatisfactions, self-appointed spokesmen, unions, professional consumer organizations, business leaders, and politicians have advocated numerous remedies for curing consumer ills. The scope of consumer behavior is the wide variety of activities consumers engage in as they research, buy, use, and dispose of products. Examination of loadings of .4 and over for Function C shows that a segment of consumers is not concerned about misleading advertising, but wants more protection for consumers. In addition, Factor IV assigns that responsibility to business firms. by Fred C. Allvine (Chicago, Illinois: American Marketing Association, 1972). Two criteria provide powerful support for selecting Factor V as that most central to the concept of specific interest in consumerism. For each block a map detailing the number and location of dwelling units was drawn and the units to be contacted were selected on a systematic random basis. Two criteria provide powerful support for selecting Factor V as that most central to the concept of specific interest in consumerism. METHOD Based on a cluster sampling scheme, Salt Lake City was divided into 49 cells according to census tracts, and blocks within each tract were selected at random. SCALE To avoid pattern responses by respondents, the instrument used some items stated as positive and some stated as negative opinions, an alternative approach to reversing the scales themselves. All opinion items were 100 mm Likert-type scales such as: "More protection is needed for the consumers of this country." Six factors were rotated toward simple structure, using the criterion for selection that this number (lowest eigenvalue 1.16) provided maximum clarity of factor structure for the analysis to follow (Hakstian and Muller, 1973; John W. Thompson, 1962). © 2020 Association for Consumer Research, The Journal of the Association for Consumer Research (JACR). The strongest relationship exhibits a link between the call for more consumer protection and a general distrust in and dissatisfaction with the current performance of America's institutions. Consumerism emerges as a complex cluster of issues. Factor analysis by the principal components method was employed for this task, with orthogonal rotation of factors by the varimax procedure (Kaiser, 1958). On the other, government regulation may be the consumer's salvation. For other citizens the issues are more clear-cut and they view pollution control, regulation of prices, and auto safety as specific concerns. A total of 295 residents provided usable responses to the personally administered questionnaire. Nonetheless, the fact that this is the only factor with no items directly linked to business suggests the broad environmental nature of the perceived need for change underlying this dimension. Three of these items are criterion variables and represent perceived need for consumer aid: agreement on the need for more consumer organization and stronger penalties for cheating firms, but disagreement that advertising tends to mislead. In a nutshell, consumerism describes the rising want and need for goods and services. As in multiple correlation, the predictor set also involves multiple variables. Kent L. Granzin, University of Utah Gary M. Grikscheit, University of Utah [We gratefully acknowledge permission from the Journal of Business Research to reprint portions of this article from "Who are the Consumerists?" Many of the journals listed below are included in the ProQuest Database and you should search that database first. (Mormon) Church.] Apparently some respondents see the need for a particular remedy, price control. Given the scope of the sustainability challenge and the urgency with which it must be addressed, this paper argues that the consumer is not the most salient agent in the production–consumption system; expecting the consumer through green consumerism to shift society towards SCP patterns is consumer scapegoatism. A sound understanding of consumer behaviour is essential to the long run success of any marketing program. While the respondents whose opinions are described by this function show distrust of government officials, they do see a need for more government regulation, as shown by the two Factor VI items calling for control of prices and testing of consumer products. Business writings provide a rich source of the items expressing opinions on specific consumerism issues (Day and Aaker, 1970; Bauer and Greyser, 1967; Buskirk and Rothe, 1970). For these reasons, Factor V appears to most closely represent the heart of the consumerism movement, and this factor and its associated six variables are selected as the criterion set for the canonical analysis. DEFINITION A modern movement for the protection of the consumer against useless ,inferior, or dangerous products, misleading advertising, unfair, pricing, etc. Euromonitor identified eight key trends that will impact the global consumption landscape, called the New Consumerism. Accenture reports the impact of coronavirus (COVID-19) on consumer behavior and how it will transform the future of the consumer goods industry. The single predictor item comes from Factor VI, approval of the government's stepping in on auto safety. To avoid an arbitrary separation during analysis the research required a means for empirically isolating specific consumerism items as seen by the respondents. Again, two ambiguous items load highest on this factor. 16 In the 1980s, the scope of the NCC’s activities was restricted and consumerism took another direction in the midst of Thatcherite economic reforms and the privatisation of public utilities. RESULTS AND DISCUSSION Table 1 presents the factor structure of the 28 opinion items. In particular, the persons described call for increased consumer protection. Based on the behavioral and business literature, the present research employs three types of such general attitudinal measures to provide data for testing its hypothesis: (1) degree of reliance on business and/or government for regulating economic activities; (2) satisfaction with one's social and economic environment; and (3) trust of others. Like the preceding two factors, Factor V indicates a need for changes directly related to new protective laws, organization of consumers, rewards for those advocating change, and explicitly, more consumer protection. That is, are business and government perceived as equally responsible for remedying wrongs? In particular, pollution control, price control, and auto safety emerge as issues of importance to a number of those responding to the survey. Nonetheless, the fact that this is the only factor with no items directly linked to business suggests the broad environmental nature of the perceived need for change underlying this dimension. This characterization is supportable and necessary for data collection, but somewhat arbitrary. TABLE 2 CANONICAL LOADINGS FOR TWO SETS OF OPINION ITEMS CONCERNING CONSUMERISM AND RELATED ISSUES Function D also has four loadings of .4 or more. Among the unambiguous items, government is given sanction to control prices, regulate salesmen and sales practices, and test, rate, and/or grade certain consumer products. This information can be important for the development of products and ad campaigns that meet the needs of consumers effectively. The instrument contained 28 opinion items representing both the three classes of general measures introduced above and items judged a priori to indicate respondents' specific interest in consumerism. Gary M. Grikscheit, University of Utah, NA - Advances in Consumer Research Volume 03 | 1976, Rishad Habib, University of British Columbia, Canada Factor V--Need for Increased Consumer Protection. Benjamin Scheibehenne, Geneva School of Economics and Management, Marie-Eve Jodoin, HEC Montreal, Canada How did the consumer culture originate? However, they should recognize that the total picture must be balanced by considering the citizens whose opinions form the opposite ends of the relationships expressed here. The literature draws insights from empirical studies of sectors that largely take place on the legal market, such as textiles and agri-food. Walter M. Gerson, "Alienation in Mass Society: Some Causes and Responses," Sociology and Social Research, 49(January, 1965),143-151. This factor reflects more personalized consideration of other individual Americans than the factors that follow. Century of the Self (BBC Documentary – Youtube) Manufactured Consent (CBC Documentary – Youtube) Main Journal Database Searching ProQuest Database JStor […] In particular, pollution control, price control, and auto safety emerge as issues of importance to a number of those responding to the survey. Examining the correlation between each variable and its canonical variate is analogous to examining factor loadings (Veldman, 1967). With the industrial revolution , but particularly in the 20th century, mass production led to overproduction —the supply of goods would grow beyond consumer demand , and so manufacturers turned to planned obsolescence and advertising to manipulate consumer spending. Canonical correlation analysis made it possible to examine simultaneously the multivariate relationships between specific and general measures. Factor II, which may be interpreted as distrust/dissatisfaction (or trust/satisfaction) appears less personalized than Factor I. TABLE 1 FACTOR STRUCTURE OF 28 OPINION ITEMS CONCERNING CONSUMERISM AND RELATED ISSUES Discussion of Function A considers only correlations between items and canonical variates of .5 or greater. 34 (July, 1970), pp. In this country responsibility for such improvement is currently delegated to government agencies. 1. Consumerism is an inevitable response to the increasingly complex and impersonal society of our times, and will be a powerful influence on business in the coming years. Responses showing support for the American culture sharpen the picture of a basic dimension indicating a need (or lack of need) for protection from other residents of the respondent's country. Dissatisfaction expressed by agreement that the country is going to the dogs, the economy is in a sad stage, and the government is not doing enough for peace shifts the focus to the national social and economic scene, indicating concern (or lack of concern) with the way the federal government is doing its job. Scope --1.This subject helps in developing tailor made marketing strategies to address the consumer needs. Below are some interesting videos covering the development of consumerism in the 20th century that has a wider effect on the understanding of business and its ability to manipulate the consumer and political process. In particular, the persons described call for increased consumer protection. Walter M. Gerson, "Alienation in Mass Society: Some Causes and Responses," Sociology and Social Research, 49(January, 1965),143-151. As in multiple correlation, the predictor set also involves multiple variables. Factor II--Distrust and Dissatisfaction with Institutions. Explore this Article. Factor analysis by the principal components method was employed for this task, with orthogonal rotation of factors by the varimax procedure (Kaiser, 1958). Business writings provide a rich source of the items expressing opinions on specific consumerism issues (Day and Aaker, 1970; Bauer and Greyser, 1967; Buskirk and Rothe, 1970). In sum, the canonical functions examined show both broad and narrow aspects of consumerism. The relationship indicates trust (a lack of distrust) of government officials and agreement there is need for price control. Yet, as is typical for youthful social movements in a state of rapid change, the structure of consumerism is neither well defined nor clearly understood. Nature and Scope of Consumer Behavior 36,335 views. 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