Judging the book by its cover ful

Judging The Book by Its Cover?

How Consumers Decode Conspicuous Consumption Cues In Buyer Seller Relationship(MaurL.Scoot, Martin Mende and Lisa

E.Bolton)

Presenting By

INTRODUCTIONS

• This journal reveals the consumer important role in the consumption context

• Sometime, people purchase not because of their needs but influence by their social needs such as for status and wealth.

INTRODUCTION

What inferences that will do consumers make about conspicuous sellers ?

What are the factors that will affect the moderate this

inferential process?

What are the effects consequences of these

inferences?

THE OBJECTIVE

IS TOINVESTIGATE

ABOUT 3 QUESTION

SOCIAL PERCEPTIONS OF WEALTH

AND THE COMMERCIAL CONTEXT

Two dimension of social perception.

Warmth

Perceived warmth are someone who are

being helpful or caring

Competence

Perceived competence

are someone who are being intelligent,

skillful, or efficacious.

A conspicuous consumption are the signal for wealth and status.

Observers rate wealthy people as more intelligent and self-discipline compared to a poor people.

Relatively poor people are describe as warmer.

CONSPICUOUS SELLERS, ROLES CONGRUITY THEORY, AND THE

MODERATING ROLE OF RELATIONSHIP NORMS

ATTRIBUTES ARE TYPICALLY POSSESSED BY MEMBERS OF THE SOCIAL GROUP AND THE SOCIAL ROLE IN WHICH THE

GROUP MEMBERS IS PERCEIVED

CHARACTERISTICS THAT ALLIGNED WITH THE SOCIAL ROLE ARE MORE FAVORABLY EVALAUTED AND VISE VERSA

THE CONSUMER INFERENCES ARE FIT BETWEEN SUCH

CONSPICUOUSENESS AND ALSO THE TARGET ROLES

ROLE CONGRUITY

AND COMERCIAL

RELATIONSHIP

CONSSPICUOUS SELLERS IN COMMUNAL VERSUS

EXCHANGE RELATIONSHIP In communal relationships, people expect

partners to have a actual concern for the other’s welfare

such as be kind and responsive to other but not to be

motivated by reciprocation or

profit maximization.

The different is the exchange

relationship norm implies

compensation and a request for a on time payment for a

benefit

As a result, partners view more on self-interest, self-

serving attitudes, and profit then aligned with the

exchange than the communal norm

• Consuming conspicuously to signal wealth and status is similar to the pursuit of goals of self-image and self promotion

• Professional women who engage in self-promotion are rated less likable than self-promoting men

• People low in warmth only while positive behaviors are performed by people who are both high and low in warmth

Warmth inferences

• The communal focus on caring about others’ I needs a skill that should receive less emphasis than warmth when interpreting conspicuous consumption cues.

• Two opposing inferences might cause to be a neutral “net effect” on the seller’s competence

Compentence inferences

Hypothesis 1 and 2

H1a: The effect of conspicuous

consumption on inferred warmth is more unfavorable

under the communal norm than under the

exchange norm.

H1b: The effect of

conspicuous

consumption on

inferred

competence is

more favorable

under the

exchange norm

than under the

communal norm.

H2: Consumer

attitudes and

behavioral

intentions toward

sellers engaging

in conspicuous

(vs.

nonconspicuous)

consumption

decrease in

communal

relationships and

increase in

exchange

relationships.

Warmth inferences

Competence inferences

EMPIRICAL OVERVIEW• This research proposes that conspicuous cues, as a

function of the norm guiding the buyer–seller relationship, drive distinct consumer inferences about the seller’s warmth and competence, which in turn influence attitudes and behavioral intentions.

• Four studies test our hypotheses:

STUDY 1Provides an initial

demonstration of the phenomenon of interest

STUDY 2examines whether a seller’s mere wealth triggers inferences

similar to those triggered by conspicuousness

STUDY 3Manipulates

conspicuousness and relationship norms

through a video interview

STUDY4Builds on the persuasion

knowledge model

STUDY 1Consumer Response To Conspicuous Consumption By Sellers

Initial causal evidence for the role of

relationship norms in consumer response to

conspicuousness.

Seller profession constant and

manipulate norms using an established priming manipulation

DESIGN AND PARTICIPANT• Experiment was a 2x2 between subject design.

(norm:communal/exchange)x(consumption: nonconspicuous/conspicuous).

Participants:91 undergraduates students in U.S.

Were asked about how they split the bills after reading about a student whose relationship reflected either communal or exchange norm.

Then they imagined about given situation(read journal)

After that, they read magazine article which consumption has been manipulated.

They indicated their behavioral intention toward the lawyer & rated his warmth and competence.

RESULTS

Manipulation checks:

More participants indicated in exchange

norm rather than communal.

Rated lawyer’s lifestyle as more expensive and

luxurious in conspicuous than in

nonconpicuous.

Behavioral Intentions:

B.I toward seller decreased with

conspicuousness in a communal relationship &

increased in an exchange

relationship.

Warmth decreased with

conspicuousness under communal

norm.

Unaffected under exchange norm.

Under exchange norm,

competence increased with conspicuous consumption.

Unaffected under communal norm.

Warmth and Competence:

• Mediation analysis:

Independence variable:consumption,

Moderator:norm, Mediator:warmth&competen

ce, Dependent variable:behavioral

intentions

Bootstrapping Analysis showed warmth &

competence mediated effects of the two way

interaction on behavioral intention.

Zero for warmth under communal norm & for

competence under exchange norm.

STUDY 2

Examines wealth if it triggers similar inferences like in study 1 which is consumer response to conspicuous seller depends on relationship norm.

Under communal norm, wealthy sellers lack of warmth.

Under exchange norm, wealthy sellers are competent.

DESIGN & PARTICIPANTS

Experiment was 2 groups (wealth,omit

wealth)

Participants were 169 undergraduate

students in U.S.

Completed questionnaire that

included a measure of

communal & exchange

orientation.

Similar like study 1,they read a

magazine describing a lawyer.

All info constant except wealth manipulation.

In wealth condition:$200,000

annual salary

In omit wealth: Information not

stated.

Results• :

1. .Manipulation

checks:

Wealth rating higher when

wealth was cued.

Interaction between

relationship norm with wealth are not significant.

Lifestyle rating was higher when wealth was cued.

Behavioral intentions

Wealth cues increased behavioral

intentions of exchange-oriented

consumers but not of

communal-oriented

consumers

• :

Warmth decreased

when wealth was cued in communal oriented.

Warmth increased when

wealth was cued in

exchange oriented.

In exchange oriented,

competence increased with

wealth.

Remain unaffected by

wealth in communal oriented.

Warmth & Competence

Bootstrapping Analysis showed warmth & competence mediated the effects of interaction between relationship orientation and wealth on

behavioral intentions.

Zero warmth under communal norm.

Zero competence under exchange norm.

Wealth produce similar inferences to conspicuousness.

Conspicuous seller, who strive to signal wealth succeed to the extent that they trigger inferences

that are similar like consumers think.

Mediation Analysis:

STUDY 3

• OBJECTIVE• to provide more externally valid

manipulations of norms & conspicuousness.

Video Interview

• Sixty-one undergraduate students at a midwestern university participated in exchange for course credit

Design and Participants

• Manipulation checks• Lifestyle ratings were higher in the

conspicuous than the nonconspicuous conditions other effects were nonsignificant.

Results

RESULTS

Behavioral intentions• decreased with

conspicuous consumption under the communal norm but increased with conspicuous consumption under the exchange norm

Warmth and competence• Warmth declined

with conspicuous consumption under the communal norm but did not differ under the exchange norm.

Mediation analysis• Warmth and

competence mediated the effects of the interaction between norm and consumption on behavioral intentions.

STUDY 4 :

THE IMPACT OF PERSUASION KNOWLEDGE

• This competence focused logic likely overlooks the potential for detrimental effects related to warmth.

• Participants were 155 undergraduate students who took part in the study in exchange for course credit.

Design & Participants

• Retest• A separate sample of participants was

randomly assigned to the persuasion knowledge condition or neutral condition.

Results

Result

• Participants rated the lawyer’s lifestyle higher in the conspicuous than the nonconspicuous conditions the other effects were nonsignificant

Manipulation Checks

• the seller decreased with conspicuousness under the communal norm and marginally increased with conspicuousness under the exchange norm.

Attitude toward the

seller

• We ran a moderated mediation analysis in which the independent variable was consumption, the moderators were relationship norm and persuasion knowledge, the mediators were warmth and competence, and the dependent variable was attitude

Mediation analysis

Study 4

Provides evidence that persuasion knowledge affects the pattern of warmth and competence inferences and, in turn, consumer attitudes toward a conspicuous seller.

GENERAL DISCUSSION

• This research draws on role congruity theory and demonstrates that consumer inferences about conspicuous sellers.

• Conspicuous consumption by sellers increase behavioral intention under exchange norms and decrease behavioral intention under communal norms.

THEORITICAL IMPICATIONS AND FURTHER RESEARCH

Social perception

Relationships norms

Conspicuous consumption

Social perception and Relationship

norms

Decoding conspicuous consumption

Conspicuous consumption and

wealth

Conspicuous consumption and

money

Conspicuous consumption,

status, and power

• In this study, researcher use both competence and warm in terms of a mediating role but their relatives is importance varies to buyer-seller guides.

• Deighton 2007 said that the two dimension of social perception and the relevance in consumer’s commercial relationship.

Social perception and relationships norms

• Conspicuousness has unfavorable effect on inferred competence under exchange norms dissapear when seller’s conspicuousness is perceived as deliberate persuassion effort.

Decoding conspicous consumption

Conspicuous consumption and wealth• Consumer attribute a seller wealth to his or her individual effort and

ability• Conspicuous sellers trigger an inference of competence only if their

professionally earned

Conspicuous consumption and money• Money as tool to achieve social status but phenomena of human

desires to btain money per se and things money can buy are “logically distinct and need t be investigated separately ( Lea and Webley 2006, p.162 )

Conspicuous consumption, status, and power• Power is defined as the control of access to value resources• Sivanathan and Pettit 2010 defined social status as linked to

various intra-and interpersonal benefits which explains why people strive to attain higher status.

FUTHER RESEARCH

1. With emerging interest in the psychology of money, in future study could also investigate whether exposure to conspicuousness differ from exposure to money

2. Further research might examine whether motive knowledge alter how consumers decode monetary and conspicuous display by others.

3. In conspicuous consumption, status and power, the further study might investigate how a seller’s conspicuous consumption alter power within the relationship represent a worthwhile.

MANAGERIAL RELEVANCE & IMPLICATIONS

• Interpersonal buyer-seller interactions are most important.• Appearance of both the seller and setting is the contextual

aspects of buyer-seller interactions.• For example : UBS bank has develop 43-page dress code

in order to impress customers and encourages employees.• Sellers should make an observation towards the target’s

professional space about their behavior.• Sellers should directly interact with the customers and ask

them whether these norms are deliberately invoked by marketing communications or spontaneously invoked by particular seller professions.

RELATED TO MARKETING

1. We can implemented the case study on the service industry which is close to people and also use to marketing strategy which give the benefit to public relationship especially for salesmanship.

2. As a seller and marketer, we must know the target market and segmentation including their age, income, education, lifestyle and so on. So, we can fulfill the warmth and competence to customer

3. Building customer trust with providing customer with value.