Centre for Environment

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Centre for Environment

• Oh the challenges we face Some insights into why
  consumers wont do more, dont like being told
  what to do and keep promising things they dont
  deliver. ,

Dr Iain Black, Senior Lecturer, Discipline of
Marketing
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Overview

• Overall problem
• Understanding the difficulty is getting consumers
  to adopt more sustainable forms of consumption
• Theoretical Perspective
• Theory of Planned Behaviour
• Problems 1 Why consumers wont do more
• Study one Identity boundaries
• Problem 2 How consumers react when you say no
  to them
• Study 2 Self Identity and Involuntary loss
• Problem 3 Why consumers say one thing and do
  another
• Study 3. Hyperbolic discounting vs Temporary
  Construal Theory.

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Theoretical Perspective

• Attitude-Behaviour disconnect is not new
• Theory of Planned Behaviour

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Problems 1 Why consumers wont do more
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Becoming a more sustainable consumer

• Identity boundaries
• Changing without changing too much.

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Research Aim and Objectives

• Research Aim
• To understand how global self concept is managed
  when a identity and set of behaviour are adopted
  
• Objectives
• To understand what has motivates people to adopt
  more environmentally sustainable consumption
  practices in their every day lives
• To understand the barriers placed around the
  adoption of this new lifestyle
• To illicit identity narratives of how their
  identity and self has changed as a more
  sustainable lifestyle has been adopted.
• To understand how has this adoption has been
  managed by other elements of identity and self
• To understand how behaviours and values that are
  incompatible with current identities are managed
• Changed, modified rejected, adopted

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Conceptual Framework

• Definition of possessions
• Extended self (Belk, 1988)
• Tangible and intangible
• Characteristics control, symbolic meaning,
  emotional attachment
• Managing self
• Stability and transition
• Kleine et al. (1995)
• Past, present and future self
• Markus and Nurius (1986) Morgan (1993)
• Maintenance of self
• Ahuvia (2005) Gentry et al. (1995) Levinson
  (1978) Prentice (1987)
• Changes in self separation, liminality,
  incorporation
• Van Gennep (1960)

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Overview of Study

• Phenomenological perspective taken
• Sampling
• Purposive, iterative theoretical.
• Data collection
• In-depth interviews
• Initial data collection
• Sydney 2007
• 18 men and women 30-45 years old
• Attending basic conservation workshops and
  starting to adopt sustainable lifestyles
• ACF GreenHome workshops
• Data coded and analyzed
• 2nd Phase
• Toronto 2008
• 6 women years old
• Moved to sustainable lifestyle 3-5 years ago,
  behaviors are entrenched but critically having to
  adapt to new standards.
• Data analysis
• Grounded theory techniques

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Findings
New behaviour or standard
Adopt
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Conclusion

• Change possessions and chane use of these
  possessions without changing self concept
• Managing changes to maintain a coherent global
  self concept
• Continuous change rather than discontinuous
  change
• Respondents now incorporate may fairly radical
  conservation behaviors within definition of core
  identities as a mothers, wives, homemaker etc.

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Problem 2 How consumers react when you say no
to them
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Study 2 Self Identity and Involuntary loss

• Who are you trying to fool? Consumers reactions
  to involuntary loss of possession.

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Voluntary disposition

• Lastovicka and  Fernandez (2005)
• Disposition via garage sales showed that valance
  is important in whether disposal rituals are
  performed and detail types (Iconic Transfer, The
  Transition-Place Ritual, Ritual Cleansing)
• Higie, Price and Fitzmaurice 1993
• Moving home
• Price, Arnold and Curais, (2000)
• Giving away by older consumer
• Pavia (1993) and Kates (2001)
• Disposition by PLWA

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Involuntary loss and self

• This literature has taken as its focus a range of
  sudden or dramatic causes.
• Loss due disasters such as fires or earthquakes
  (Delorme, Zinkhan Hagan, 2004, Belk, 1988,
  Ikeuchi, Fujihara Dohi, 1999)
• Loss due to major traumatic life events such as
• Unemployment (McAlexander, 1991),
• Divorce (Roberts, 1991),
• Imprisonment (Brownlie Horne, 1999)
• Terminal illness (Kates, 2001).
• Call made by a number of authors for research in
  this area i.e
• Arnould and Thomson (2005)
• Belk, Sherry, and Wallendorf's (1988).
  Investment rituals.

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Research question and context

• This research explores how consumers manage the
  situation and their self image when they are
  denied access (albeit temporarily) to
  symbolically important, meaningful possessions.
  It seeks to understand identity negotiation in
  situations where the loss is temporary and
  involuntary in nature.
• The context explored is premium class air travel
  and the associated frequent flyer programmes
• Losses investigated
• When an organisation will not pay for goods or
  services to which the employee has become
  attached and
• Where the vendor withdraws the service due to
  insufficient loyalty.

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Methodology

• Interpretivist framework guiding research
• Multi method
• Observation and Depth interviews (online/face to
  face)
• 2 Stages
• Stage 1 Participant observation involved three
  phases of travel and was sponsored by IBM. In
  total 110,000 miles were flown in a 10 month
  period.
• 50 flights were taken,
• 25 in economy and
• 25 in premium cabins.
• Example of route taken
• SYD-LAX-SFO-NYC-LHR-MIL-LHR-SIN-SYD
• Business class
• Stage 2 Individual Depth interviews
• 26 IBM frequent flyers
• 6 Frequent flyers who have been downgraded in
  their FF programme

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Meaningful, Status filled possessions

• Premium class travel and high tier frequent flyer
  status confers status upon individuals, supports
  their career aspirations and differentiates them
  in a disconnected, anonymous world.
• Status is conferred not only when they were
  travelling but also when not travelling
• and I get in the lift and I laugh and it is kind
  of nice but people have got their blue tag
  proudly displayed on their bag. (Mixed class
  traveller)
• Business travel brings respect from colleagues,
  friends and families.
• Specifically in the work sphere
• Reasons?
• high cost of premium class travel
• reasons for travelling must be to attend to
  important matters.
• What economy (class) tells me is that the
  company dont value me or my time. I can be away
  negotiating hundred million dollar deals but I
  have to fly back economy, its embarrassing, and
  I hate doing it. (Mixed class traveller)
• Motivation to maintain special treatment

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Maintaining possession using Illusion and
Delusion

• Range of behaviours which show how travellers
  deal with the loss (or fear of its loss) of the
  service.
• Stages of Mourning and Rebuilding (Delorme,
  Zinkhan Hagen (2004),
• Illusion and delusion are used to maintain the
  pretence of possession in light of its loss.
• Why not conduct mourning process?
• Transient nature of the loss and the anonymity of
  the consumption
• Therefore temporarily keeping up appearances
  until they are able to re-posses it.

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Findings
Behavior and Objective Timeframe Timeframe Timeframe
Behavior and Objective Threatened Happening Happening/Happened
Objective Avert the loss Maintain public meaning Reconcile temporary state with desired state
Actions Achieving the goal by different means Refuse to travel based on socially acceptable arguments Acting the part Looking the part Acts of reconciliation Transferring the loss Self denial Reconfiguring private meaning Moving happily
Primary losses being avoided Public meaning Private meaning Hedonic value Public meaning Private meaning
Secondary losses being avoided Hedonic value Hedonic value (loss being reduced not avoided)
Identity negotiation Avoided Avoided Avoided
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Acting the part

• Maintaining a referent group and reward benefits.
  
• Examples from Observational phase
• On a number of occasions it was observed that
  flyers who subsequently travelled in the economy
  section would use business class check in queues
  despite the queue for economy being shorter
• In another behaviour seen in both Sydney
  international airport and in London, economy
  travellers with high tier status would use the
  frequent flyers lounges for very short periods of
  time and walk considerable distances to do so.
• May also have been aimed at airline staff
• Benefits of members extended to them, real or
  perceived.

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Looking the Part
QFF Plat (OW Emerald,) QC Life, 97.75 to Lifetime Silver, NW Plat WPerks, SQ KrisFlyer, UA. SPG Gold, HHonors Gold, Hyatt GP, Avis Pref, Hertz No 1, et al

• However
• He will not regain QFF platinum status
• Closer examination memberships claimed on the
  signature line also show that not all is as it
  seems and it creates an illusion of ownership and
  status beyond that which is authentically
  possessed.
• Duplications
• (QFF Plat is equivalent to OW Emerald),
• Apparently high tier status is in fact the entry
  level
• (Hyatt GP (gold partner), Avis Pref-Avis
  (Preferred Customer ),
• Some are given away to certain credit cards
  (HHonors gold)
• Some are free to join and require no activity to
  maintain (SQ krisflyer, Hertz no one, UA).

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Findings
Behavior and Objective Timeframe Timeframe Timeframe
Behavior and Objective Threatened Happening Happening/Happened
Objective Avert the loss Maintain public meaning Reconcile temporary state with desired state
Actions Achieving the goal by different means Refuse to travel based on socially acceptable arguments Acting the part Looking the part Acts of reconciliation Transferring the loss Self denial Reconfiguring private meaning Moving happily
Primary losses being avoided Public meaning Private meaning Hedonic value Public meaning Private meaning
Secondary losses being avoided Hedonic value Hedonic value (loss being reduced not avoided)
Identity negotiation Avoided Avoided Avoided
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Conclusions

• Uneconomic, irrational and desperate behaviours
  can be understood when we consider that it the
  Self that is being affected and protected
• Reducing the impact and regaining control are
  common themes in the behaviours seen
• Research provides a range of behaviours and
  tactics used to cope with the transition from
  old to new self due to involuntary loss.
• This is achieved by, where possible AVOIDING the
  transition
• In so doing provides details to the work by
  Delorme et al 2004 which illustrated the steps
  taken
• Also provides mirror of Lastovicka and Fernandez
  (2005) work on voluntary loss behaviours
• Previous work into involuntary loss and
  self-concept has highlighted the process that
  consumers go through in order to realign their
  extended self to reflect their new found
  situation.
• I add to this literature by showing how people
  can compensate for the loss via creating the
  illusion that the consumer is still in
  possession, (if only in part).

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Discussion

• So how does this help us understand consumers and
  sustainability
• Loss or restrictions are coming or already here
• Credit crunch
• Many of the attempts to avoid loss were based on
  consumption, (mileage runs, greater use of
  facilities)
• Therefore must be careful that by managing loss
  we do not stimulate consumption elsewhere!
• How
• Provide periphery symbols of possession (owners
  clubs, loyalty schemes)
• Actions to disengage possession from identity
• Moved beyond it, moved pass it

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Problem 3 Why consumers say one thing and do
another

• Cost and Rewards

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Overview

• Consumers who sincerely profess to be concerned
  about the environment nevertheless fail to
  purchase green products such as energy
  efficient light globes and home appliances for
  the simple reason that these products have higher
  prices than less environmentally responsible
  alternatives.
• This research tests two competing explanations
  for this phenomenon hyperbolic discounting and
  temporal construal.
• Differences between these two explanations have
  important implications for the kinds of marketing
  strategies likely to induce consumers to purchase
  green products.

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Contrasting HDT with TCT

• Hyperbolic Discounting Theory (HDT) emphasises
  the timing of outcomes (i.e., immediate vs.
  delayed rewards and punishments) and makes no
  distinction between lower-order and higher-order
  outcomes.
• Temporal Construal Theory (TCT) emphasises the
  timing of decisions (i.e., decide now or later)
  and posits a discounting of lower-order outcomes
  and an appreciation of higher-order outcomes over
  time.
• Key Experimental Factors
• Decision timing (now versus later)
• Outcome timing (immediate versus delayed)
• Outcome level (lower- versus higher-order)
• Potentially Interesting Contexts
• Credit card purchases of items when funds are
  lacking
• Adoption of relatively expensive but energy
  efficient products
• Financial planning for future retirement
• Preparing for a major individual assessment

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HDT vs. TCT

• Hyperbolic discounting (HD) posits that the
  future is discounted at a decreasing rate,
  minimizing the influence of future positive and
  negative outcomes on purchase decisions.
• Temporal construal (TC) asserts that future
  purchase decisions are evaluated in terms of
  abstract principles and global assessments of
  desirability, whereas immediate purchases are
  influenced by concrete outcomes and ease of
  implementation.
• The two theories make different predictions
  regarding the effects of expressing the benefits
  of using green products in terms of (a) rebates
  for future energy savings, (b) lower bills, (c)
  less energy used, and (d) less greenhouse gas
  emissions.

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HD, TCT and Energy Saving Products

• HD implies that consumers do not purchase energy
  saving products because the often higher price is
  an immediate loss whereas financial and
  non-financial benefits occur much further in the
  future.
• TCT implies that consumers do not purchase energy
  saving products because the often higher price
  influences lower-order construals involving the
  ease of implementation, whereas the financial,
  and especially, non-financial benefits, influence
  higher-order construals involving the
  desirability of the outcome.

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Immediate and Distant Future Consequences of
Energy Saving Purchases

• Hhd The effects of the price difference and the
  energy savings will be smaller for distant versus
  immediate future decisions, but the decrease will
  be more pronounced for the price difference
  compared to the energy savings.
• Htct The effect of the price difference will be
  smaller for distant versus immediate future
  decisions, but the effect of the energy savings
  will be larger for distant versus immediate
  future decisions.

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Temporal Construal Theory (TCT)
Distant Future
Immediate Future

• Lower-Order Construals
• Concrete
• Complex
• Ease of implementation
• Contextualised
• Secondary or peripheral
• Subordinate
• Goal irrelevant
• Data-driven

• Higher-Order Construals
• Abstract
• Simple
• Desirability of outcome
• Decontextualised
• Primary or central
• Superordinate
• Goal relevant
• Theory-driven

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Method

• We will conduct a laboratory experiment that
  requires respondents to choose between two
  alternatives in the same product category. One
  alternative is more environmentally responsible
  than the other.
• The experiment will manipulate the following
  factors
• Experimental factors
• Product category (batteries, light bulbs,
  refrigerators, washing machines).
• Environmental status (green versus regular).
• Price differential between the green and regular
  product.
• Size of the future gain.
• Timing of the decision (tomorrow versus one year
  from now).
• Price will be manipulated at two levels, with the
  higher price always associated with the
  environmentally responsible product.
• The future gain will be manipulated at 2
  different levels, with the gain always associated
  with the environmentally responsible product.
• Sample
• Students between the ages of 18 and 24

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Immediate and Distant Future Consequences of
Energy Saving Purchases

• Imagine that (its one year from now and) you
  are planning a shopping trip (for tomorrow), and
  you have two blown out light bulbs at home that
  need to be replaced. Which of the following
  options would you be more likely to purchase?

• Environmentally Friendly Option
• Pack of 4 long life light bulbs
• Costs (7.50, 15.00)
• Use (6, 14) times less electricity than the
  incandescent bulbs

• Inexpensive Option
• Pack of 4 incandescent light bulbs
• Costs 2.50
• Use (6, 14) times more electricity as the long
  life bulbs

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Conclusions

• When considering why the main stream of consumers
  have been slow to adopt environmentally friendly
  products. I find Oscams razor a useful heuristic
  to work by
• They are more expensive
• They dont work as well.
• A intriguing problem is why we say with great
  earnest that we intend to buy EF products or
  behave in a more sustainable way but we dont

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Overview

• Problems 1 Why consumers wont do more
• Doing too much infringes their Identity
  boundaries, it risks asking them to become
  someone they are uncomfortable coming
• Problem 2 How consumers react when you say no
  to them
• Making consumers do something they dont want to
  do can lead to greater levels of consumption
• Problem 3 Why consumers say one thing and do
  another
• Framing the gain and loss is critical if you want
  to sell the environmentally friendly (but more
  expensive version) and the key may be framing
  economic rahter than higher order benefits

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Recommendations

• Change the standards for core identities to
  incorporate more radical conservation behaviours
  rather than try to turn people into eco warriors,
  treehuggers, environmentalists

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Thank you

• Questions?
• Comments?