Compulsive Consumption - Literature review Example

? A literature review of compulsive consumption: Compulsive consumption is a type that is addictive. In this consumption customers buy goods that they cannot afford or do not need. The paper recaptures on this behaviour and sum up the findings with three questions: why consumers behave in this manner, what are the predictors of compulsive consumers and relations with marketing strategies. The marketing ethics as a risky factor in compulsive consumptions is in the discussion. Introduction Latest issues in the society of housing crisis and student debt has increased awareness of effects of compulsive consumption. Research has made known that management strategy of finance increase academic stress level (Roberts’s et. al 2012). For an average individual, buying services and products is a routine and normal behaviour. For compulsive consumers, incapability to control an overwhelming force defines their buying behaviour. It also leads to substantial and always severe results. A compulsive consumer does not derive his or her utility from a service or product but from psychology during purchase power. For the last twenty years, a strong series of investigation in consumer activities has been in discussion of compulsive consumption phenomenon. This was to show it negative results both in the society and to an individual (O’Guinn et. al 2011). Compulsive consumers accrue unmanageable and vast debt amounts which create emotional and economic problems for them. Incapability to settle off debts then turns into a creditor’s problem. Therefore, the importance of devising and understanding intervention methods to manage and control this activity is vital. Other discussion in this paper has made a focus on marketing strategies and tactics’ role as a risky factor in promotion of compulsive consumption. Consequently, it focuses on marketing role in fostering and promoting this problem activity. This paper therefore, reassesses the literature on the problem behaviour as well as summing up the outcomes in three areas: why do consumers behave in this manner, what are the predictors of compulsive consumers and relations with marketing strategies? The marketing ethics as a risky factor in compulsive consumptions is in the discussion. Compulsive consumption The concept of compulsive consumption in literature has a definition of repetitive, chronic purchasing behaviour which takes place as a reaction to negative feelings or events (O’Guinn & Faber 1989). As individuals purchase compulsively, they buy excess product quantities that they cannot afford and do not require (Hoyer & Maclnnis 2007). This is regarded as a reaction to resolve negative feelings, inner deficiencies or unlikeable life experiences (Faber & O’Guinn 1992). This feeling pushes a consumer to buy goods to help clear negative feelings like frustration and stress (Scherhorn 1990). A compulsive consumer is therefore, motivated to buy goods to clear the negative feelings via alterations in self esteem or arousal level and consequently obtain utility from buying process (Hassay & Smith 1996). To be simple, compulsive consumers act on uncontrollable, powerful urges to purchase (Yurchisin & Johnson 2004) Why do individuals buy compulsively? Recent research has concentrated majorly on identification of personality character associated to compulsive consumption (Shoham & Brencic 2003). For instance, (Valence& Fortier, 1988) say that compulsive consumers have a low self-esteem which make one fantasize, put value on material and high depression levels obsession and anxiety ( Koran et. al 2006) along disappointment, frustration and stress. The fantasy in compulsive consumption has been a point of concentration for researcher. Through fantasy one is able to move away from pessimistic feelings and accept oneself in the society (Faber & O’Guinn 1989). It also allows for rehearsal of expected positive results and a way to avoid concentrating on negative issues. Moreover, when one’s need for security and safety are not satisfied, they divert to placing emphasis on materialistic values and desires which transform into purchasing as a way to claim status (Reisch & Neurner 2005). A researcher explains that anxiety causes spontaneity in a person and encourages a buyer to lower tension through engaging in compulsive purchase. Therefore, it can be said that the basic driving for a consumer to engage in this behaviour is escaping anxiety to release stress and finally bring into them happiness. There are also suggestions that the experienced anxiety by individuals can be said be both an effect and cause of compulsive purchase. Another explanation for compulsive consumption is a role of one’s aims rather than an attempt to lower anxiety or tension. This is associated to low self-esteem in compulsive consumers whose aims are mostly motivated by external goals that entirely reflect insecurity in an individual. The aims that stress on external rewards and approve of others motivate compulsive purchase. An example of such goal is attractive appearance which refers to an individual’s desire to attract others in body terms, general fashion and clothing. Compulsive purchase then gives an emotional enhancement and temporarily fixes an individual’s esteem particularly in a consumption culture that suggests ability of well being and security to be bought. Hence, at a high level, compulsive consumption may be seen as an aim directed behaviour having an objective to improve self esteem. The researchers suggest that females generally concentrate on an attractive appearance compared to men. Recent research shows that female compulsive purchasers spend more on cosmetics and clothing. The research has it that compulsive consumption is mainly caused by the urge of women to appear good looking. Therefore, buyers who have low self-esteem purchase compulsively as the social approval and attention of the product gives the emotional state needed. Predictors of compulsive consumption There are two main classes of factors that cause compulsive consumption by induced anxiety in a person. These factors are psychological and socio-cultural factors. Many researchers debate that advertising points on a material consumption benefits via stressing on an individual’s requirement of anxiety and achievement produced by manipulation of individual’s emotions, by competition and persuading the buyer to irrational purchase. Moreover, research shows that gender, in particular women, purchase without plan and have a tendency to purchase unplanned and complementary items are important indicators of buying compulsively. Generally, compulsive consumers associate buying with an action that increase one’s social status and concurrently lack control in their spending habits making them prone to financial debt and credit. From a background perspective, nearness to big shopping centres are major causes of increased compulsive consumption. Therefore, poor individuals resort to tension reducers like purchasing or other compulsive characters like alcoholism. As much as most researchers understand this feature in western, developed countries debate that compulsive consumption can take place where the buyers have access to consumerism of the western, for instance less prosperous world. Future directions and Ethical Effects This paper with issues highlighted by Maclnnis & Hoyer (2007) debates that there exists a la relation between compulsive consumption and marketing practices that consequent to acute ethical issues. Although empirical research on the argument is limited, there are suggestions that attractive sales, enticing in stores, good sales people with easy credit may encourage compulsive purchase. In their studies, Faber and O’Guinn (1989) showed that compulsive consumers particularly women frequently bought gifts, cosmetics and clothing for substantial others. Such purchase circumstances needs an interception with sales persons who spots a consumer and persuades them by telling them how smart they are or how much the recipient of the gift will appreciate. It is such interactions that give a compulsive consumer with strong feelings of emotions where, the encouragement to purchase is attention that a consumer gets from the sales individual (Maclnnis & Hoyer 2007). A tendency also exists for compulsive products bought to be of low cost, exhibit a high probability to return purchases a concern for return policies. Roberts suggest that advertisements employ status appeals frequently after appeals in price as a way of addressing the urge for prestige and power amongst purchasers. Advertisement that target compulsive consumers create material ambitions for people and stresses on the need for relieving intrinsic tension via addressing external reward of looking attractive. Referring to promotion of sales, researchers found a substantial relation between four strategies, price discounts, coupons, samples and compulsive purchase and purchase one get another for free. Compulsive consumers tend to show a substantially high product premium level proneness. An association also exists between external stimuli like bargains and sales promotions on offer in the market and buying. The stimuli in store is inclusive of promotional discounts display displays, POP displays and low prices that encourage conducive environmental effect for the promotion of compulsive consumption through raising emotions. Consumers who are prone to compulsive consumption are likely to be victims to persuasiveness or attractiveness of sales promotions in stores. In a nutshell, the arousal feelings, strengthened sight perception, tactile sensations and sounds, and feelings of beings and power liked were vital factors in buying for compulsive consumers (O’Guinn & Faber 1989:156) In a retail environment, the convergence of customers’ perception, sales promotion claims that tension on money value and product characteristics that cause arousal among consumers. There are also suggestions that premium value knowledge and a brand perception triggers compulsive consumption. Lastly, consumers responsible for shopping within a limited time are more prone to compulsive consumption as a result of arousal effect in a retail environment. In a credit abuse context as a compulsive consumption prototype, Faber & O’Guinn (1988) says that wide television watching may influence a viewer to think that the world as portrayed in the TV is the same as the real world. Programming on TV always show features in well off environments and professional occupations promoting a viewer to view wealth to desirable and common. This will consequently result to stress over that there are people who are more than others. The process of comparing social status may end up in spending beyond and above an individual’s means. This may further result to credit abuse from compulsive purchase. The researchers have opted for various marketing strategies to effectively target compulsive consumers. As the research by Brencic and Shoham (2003) suggests that impulse purchase is positively associated with compulsive consumption, marketers can form in a selling technique and store promotion to increase sales through making a persuasive and positive impression on prospective customers building on compulsive tendencies. These same authors suggest that markets can be segmented by marketers on compulsivity, gender, and tendency basis to purchase the buying list as a means to improve profit and sales. Prendergast et al. (2008) proposes that as compulsive consumers make buying decisions on impulsive consumption, marketers may consider putting premiums in packages that are attractive and locations that are highly visible in the store. The feasibility of such strategy is greater as compulsive consumers who are motivated by emotions that are negative. (O’Guinn & Faber 1992). The feasibility of such strategy is bigger since compulsive purchasers whom negative emotions motivate them are fascinated to deals which make them appear attractive and can temporarily alleviate the belief of anxiety, stress and low self worth and stress. Some researchers proposed that advertising campaign should show prestige and status images, utilize aggression in promotions of a store and selling methods that show the best purchase slogan or discount. At that same time, the researchers are keen to state that techniques above should be executed in a manner that is socially responsible. The above suggestions literature and succeeding markets’ practices raise ethics issue in marketing activity. Do salespersons take advantage of individuals by strategizing designs that lead to profits of the firm while on the other hand exploiting the weak population? Meanwhile, social policy architects require being alert on probability of design policies and marketing program that keep these populations from manipulation and exploitation. From the above review, it is clear that many market behaviours carry risks of fostering and inducing compulsive purchase. Many sectors of future investigation come from the discussion above. Firstly, an experimental research must examine the marketing programs predictive power that has been pointed out to be risk factors on compulsive buying incidence. Such findings should provide the needed proof for the argument on what ways marketing programs pose a risky factor for a compulsive consumer. Secondly, empirical researcher has to measure both actual or perceived vulnerability of compulsivity and consequent vulnerability to programs of marketing. Such research will then raise requirement for policy architects and other providers to develop an intervention mechanism that educates and raise awareness to the compulsive buyers on prospective harm from being exposed to main marketing activities. Lastly, prospect research should widen the investigation and discussion on compulsive consumption that is exclusively researched as a challenging behaviour in the west, developed states to emerging markets all over the world. Having uncontrolled development in purchasing in emerging markets, particularly in China, India, Russia and Brazil states and aggressive tactics of marketing practiced by buyer marketers. It is vital for a researcher to investigate addictive consuming in these market places that are emerging. With significant increase in buying power in the emerging markets, there is a possibility that compulsive consumers or other addictive consumption may be in starting levels in this states. If a researcher discovers an emerging type of such problem, there should be an earlier intervention via awareness, protection and education may save susceptible populations from harmful blow of addictive consumption. Bibliographies Faber, R. J., & O'Guinn, T. C. (1988). Expanding the view of consumer socialization: A no utilitarian Mass-mediated perspective. In E. C. Hirschmann & J. Sheth, N. (Eds.), Research in Consumer Behaviour. Greenwich, CT: JAI. Faber, R. J., & O'Guinn, T. C., (1992). “A Clinical Screener for Compulsive Buying”. Journal of Consumer Research, 19(3), 459-469. Hassay, D. N., & Smith, M. C. (1996). Compulsive buying: An examination of the consumption motive. Psychology & Marketing, 13(8), 741-752. Hoyer, W. D., & MacInnis, D. J. (2007). Consumer Behaviour (Fourth ed.): Houghton Mifflin. Joireman, J., Kees, J., & Sprott, D. (2010). “Concern with Immediate Consequences Magnifies the Impact of Compulsive Buying Tendencies on College Students' Credit Card Debt”. The Journal of Consumer Affairs, 44(1), 155 Koran, L., M., Faber, R., J. Aboujaoude, E., Large, M., D. & Serpe, R., T. (2006) “Estimated Prevalence of Compulsive Buying Behaviour in the United States” . The American Journal of Psychiatry, 163(10), 1806-1812. Read More