DEMAND FOR DIFFERENTIATED DURABLE PRODUCTS: THE CASE OF THE U.S. COMPUTER PRINTER MARKET

This paper develops an estimation technique for analyzing the impact of technological change on the dynamics of consumer demand in a differentiated durable products industry. The paper presents a dynamic model of consumer demand for differentiated durable products that explicitly accounts for consumers' expectations of future product quality and consumers' outflow from the market that arises endogenously from their purchase decisions. The timing of consumers' purchases is formalized as an optimal stopping problem. A solution to that problem defines the hazard rate of product adoptions, while the nested discrete choice model determines the alternative‐specific purchase probabilities. Integrating individual decisions over the population distribution generates rich dynamics of aggregate and product‐level sales. The empirical part of the paper applies the model to data on the U.S. computer printer market for 1998–1999. The estimates support the hypothesis of consumers' forward‐looking behavior, allowing for better demand forecasts and improved measures of welfare gains from introducing new products. (JEL L11, C35, D91)     

A behavioral model of the demand for consumer durables

It is argued that models of the demand for consumer durables would be strengthened by the introduction of a behavioral element reflecting the nature of the decision making process within the individual household. A possible behavioural model is described. It is suggested that this would consist of the following elements: general economic confidence of the consumer (derived from personal expectations and attitudes to the general economic situation): general durable purchasing orientation (including willingness to devote resources to durable purchasesand house moving expectations); specific product choice considerations (including orders of acquisition of new durables: the implicit depreciation of existing equipment; perceptions of the characteristics of new products; purchase expectations). Such a model is more extensive than that normally described by others working in this field. The interaction between the different variables is discussed. It is shown that all these elements can be estimated through regular surveys and so the model can be made operational for forecasting purposes. However, it needs to be recognised that there are also unexpected even as which will affect the outcome in individual circumstances and the nature of these is also considered.     

Rational forecasts: On confirming ambiguity as the mother of conformity

The Rational Expectations Hypothesis claims that all available information is used in making forecasts. We contend that one of the pieces of information used by forecasters is the previous forecasts of others. Psychologists have demonstrated that under conditions of ambiguous stimuli. individuals frequently adapt their individual opinions so as to conform to peer opinions. Thus, we develop a Convergent Expectations Hypothesis, in which forecasters incorporate previous forecasts of other agents in forming their own expectations. The hypothesis is tested using data from six forecaster groups for four time periods. In all four time periods, forecasters appear to make considerable use of the prior consensus forecast in developing their own predictions. The resulting expectations may still be ‘rational’ in that there are psychological and perhaps financial benefits to conforming to the forecasts of professional peers.     

Accounting for data inconsistencies in a longitudinal mail survey

The research demonstrates the usefulness of detecting and correcting response errors in ownership and purchase data regarding consumer durables. The use of a longitudinal measurement design is shown to be highly effective for improving data quality in a mail panel survey.     

‘Shopping for Change’: <Emphasis Type="Italic">World Vision Canada</Emphasis> and Consumption-Oriented Philanthropy in the Age of Philanthrocapitalism

According to Charity Intelligence Canada, in 2014, at least 21 Canadian non-profits published a gift catalogue featuring a range of “products”^a that donors could “purchase” for people in need. These charity gift catalogues, along with other shopping-inspired fundraising initiatives, represent a significant shift in the philanthropic arena towards philanthrocapitalism. Using two World Vision Canada campaigns as exemplars, this article offers a critical analysis of what the author calls “consumption-oriented philanthropy”^b—a class of charitable giving that is heavily guided by market principles without involving a consumer product. Unlike purchase-triggered donation campaigns (in which a charitable donation is made when a consumer product is purchased), consumption-oriented philanthropy does not require the purchase of a for-profit commodity; instead, consumption-oriented philanthropy reformulates aid recipients or charitable aid itself into symbolic commodities. By re-framing charitable aid as a pseudo-shopping experience, however, consumption-oriented philanthropy ushers in an entirely different set of values, expectations, and logic that shapes the way in which donors understand and engage in philanthropic giving.     

A study of material composition disclosure practices in green footwear products

This work is based on the study of pioneering sustainable product development initiatives, and the analysis was guided by the cradle-to-cradle concept, which sees the waste of a given process as raw material for another, just like it happens in nature. Several studies on human factors have focused on factory conditions and workers dealing with product assembly. This research, however, relates more to consumer behavior, product use and end-of-life. The purchase of more environmentally- friendly products, in particular, is heavily influenced by the information made available by the companies. In this scenario, this article discusses three early but notable efforts on green product development, focusing on the disclosure practices adopted by the companies regarding the composition of their products. Research and data collection has focused on the footwear industry, whose products satisfy a basic human need and are ubiquitous worldwide. The use of hazardous materials and chemicals in shoe manufacturing, particularly the use of chromium - a highly toxic element - in addition to toxic solvents and adhesives and non-recyclable synthetic materials can pose serious risks to human health and the environment, even though the consumer usually is not aware of all the relevant characteristics of this kind of product.     

A revised behavioral model of consumer durable demand

A general model of consumer demand for durable goods has recently been proposed by Pickering (1978,1981). Of particular note is the use of expectations of both personal financial and general economic conditions to capture the consumer's willingness to buy. However, it is argued first that these two expectations have Jointly interdependent rather than unique contributions to consumer confidence. In addition, it is proposed that the concept of expectations should be extended to specific product attributes as well. Pickering's model is subsequently revised to incorporate the conceptual modifications.     

Self-concept clarity: Exploring its role in consumer behavior

Even two decades later since Self-Concept Clarity (SCC) first emerged in the psychology literature, this important concept has escaped the attention of consumer psychologists. Distinguished in the psychology literature from the concept of self-esteem, our study examines the role of SCC in selected consumer behaviors. A survey of 301 consumers established that SCC contributes to consumers’ general satisfaction with life and its absence leads to such consumer behaviors as susceptibility to interpersonal influence, materialism, post purchase doubt, shopping as escape, and use of products as identity bolsters. This last set of results shows that low SCC consumers, who by definition are inflicted with self-confusion and concomitant anxiety, use the marketplace as a coping resource. These results suggest the concept’s utility in extending our understanding of certain important consumer behaviors.     

Consumers’ responses to CSR activities: The linkage between increased awareness and purchase intention

The body of research showing the positive effects of corporate social responsibility (CSR) on consumer behavior has been growing steadily. However, previous studies have not characterized corporate behaviors in terms of their perception by consumers as significant CSR and researchers have paid little attention to consumers’ understanding of this notion of CSR. The present study explores the relationship between consumer awareness of CSR activities and their purchase intentions. This study employs a questionnaire survey involving Korean consumers. For the analysis, measurement scales for CSR activities and consumers’ purchase intention scales are respectively developed. From the results it is found that there is a significant positive relationship between these two parameters. This study finds out as CSR activities corporate social contribution and local community contribution affect consumers’ purchase intention while corporate environmental protection and contribution have no effects on consumers’ purchase intention.     

CONSUMER DEMAND FOR VEHICLE SAFETY: AN EMPIRICAL STUDY

Although numerous studies on the effects of vehicle safety regulation exist, few are devoted to consumer demands for vehicle safety. This study uses an extensive data set combining vehicle specific information with responses from a national household survey of new car buyers to estimate individual demand for safety. It finds, ceteris paribus, purchase probability rises with an increase in safety features. In particular, an index of vehicle crashworthiness is a strong determinant of purchase decisions. The results favor a policy of posting crash test results and suggest that passive restraint systems enhance the likelihood of purchasing a given model.     

The structure of consumer confidence in four EEC countries

This paper reports an exploration of the structure of consumer confidence in four of the countries participating in the EEC harmonized consumer attitudes surveys. The analysis is based on two EEC surveys in each of the countries concerned and uses the rotated solutions on the first three factors of the data. It was found that the different countries and surveys had similar factor structures which were interpreted as general economic conditions: personal financial circumstances; household durable buying intentions. The position of price expectations and attitudes to saving within these factor structures is also of interest in the interpretation of consumer behaviour.     

The role of consumer and business sentiment in forecasting telecommunications traffic

The objective of this study is to investigate the relevance of consumer and business sentiment surveys in forecasting international telecommunications traffic. The components of telecommunications data used in the study relate to total telephone traffic outgoing from Australia and its social and business telephone sub-categories. Three sentiment surveys are considered: one consumer survey conducted by the University of Melbourne, and two business surveys, each conducted by a business association and major bank. The above data series are available on a quarterly basis from the first quarter of 1973. The approach employed consists of the application of transfer function modelling techniques to the traffic and various indexes measuring consumer and business sentiment. A major finding of this study is that sentiment series are correlated with international telephone traffic, and that in all but one case, the relationship can be modelled by some form of transfer function. The forecasts of the estimated models satisfactorily incorporate directional swings in the traffic.     

Information,disinformation, and union success in certification and decertification elections

In certification elections, workers consider the purchase of union services whose quality is, ex ante, unobservable. Voters must rely on available signals or indices in forming their expectations. Union members are able to reevaluate their initial purchase decision as more accurate information is obtained through experience. Therefore, participants in decertification elections rely less on sources of imperfect information. Using NLRB data over the period 1966 to 1990, we find evidence consistent with information-related distinctions between the certification and decertification decisions. Our study provides a useful framework for understanding the observed differences between these two types of elections. This research was funded through the Illinois State University Research Grant Program.     

A framework for the formation and structure of consumer expectations: Review and propositions

Expectations have been found to have an important impact on decision-making in a wide variety of consumption settings. In this paper, the concept of expectations of product attribute levels and purchase-related outcomes is discussed as an important but largely neglected area in consumer behavior research. Relevant works on the formation of expectations from consumer psychology, economics, and behavioral decision theory are reviewed, a general framework for the formation process is formed, and propositions for a research agenda are suggested.     

The compelling urge to misbehave: Do impulse purchases instigate unethical consumer behavior?

The present research explores the relationship between impulse buying and unethical consumer behavior. This work is based on the surprising results of an unrelated study, during which we observed that participants shopping for impulse products were more likely to cheat to obtain a more expensive product than participants shopping for regular products. Based on these findings and building on previous research on the relationship between impulsiveness and delinquency, three studies were set up to test the impact of impulse buying on different forms of unethical consumer behavior. The results confirmed that consumers making an impulse purchase were more likely to behave unethically than consumers making a regular purchase. These findings illustrate there is a dark side to impulse buying for retailers.     

ESTIMATING DYNAMIC EULER EQUATIONS WITH MULTIVARIATE PROFESSIONAL FORECASTS

Dynamic Euler equations restrict multivariate forecasts and so can be estimated and tested using the predictions of professional forecasters. We illustrate this novel, empirical method by studying the links between forecasts of U.S. nominal interest rates, inflation, and real consumption growth since 1981. Using forecast data for both returns and macroeconomic fundamentals exploits the complete panel of forecasts from the Survey of Professional Forecasters, which yields 3,400 observations, many more than the 117 quarterly time‐series observations. Harnessing the full panel enhances precision in testing asset‐pricing models and may avoid aggregation bias. We find clear evidence for the Fisher effect but mixed evidence of a relationship between expectations of real interest rates and real consumption growth. (JEL E17, E21, E43)     

The role of usability in the evaluation of accidents: human error or design flaw?

This article aims to highlight the role of consumer products companies in the heart and the extent of accidents involving these types of products, and as such undesired events take part as an agent in influencing decision making for the purchase of a product that nature on the part of consumers and users. The article demonstrates, by reference, interviews and case studies such as the development of poorly designed products and design errors of design can influence the usage behavior of users, thus leading to accidents, and also negatively affect the next image of a company. The full explanation of these types of questions aims to raise awareness, plan on a reliable usability, users and consumers in general about the safe use of consumer products, and also safeguard their rights before a legal system of consumer protection, even far away by the CDC--Code of Consumer Protection.     

Family life cycle differences for shopping styles,information use,and decision-making

This article identifies shopping styles, information use, and decision-making differences by family life cycle stage in a purchase of a durable good. Data were collected using mailed questionnaires. The sample consists of 378 cases. Data are analyzed using factor analyses, analysis of variance, and cross tabulations. The shopping style factor indicates younger adults are brand conscious. The consumer factor indicates that people in older life cycle stages read more than people in younger life cycle stages. The inexperience factor indicates single parents, younger families, and younger adults are more inexperienced. The decision-making variable indicates that younger adults and single parents make decisions by themselves and younger families make decisions with their spouses. Reasons for purchases indicate that single parents do not own the product, older families are replacing, and retirees want new product characteristics.Leona K. Hawks is an Assistant Professor in the Department of Home Economics and Consumer Education, Utah State University, Logan, UT 84322-2910. She received her Ed.D. from Brigham Young University. Her current research interests include consumer decision-making and behavior.Norleen M. Ackerman is an Assistant Professor in the Department of Home Economics and Consumer Education, Utah State University, Logan, UT 84322-2910. She received her Ph.D. from Michigan State University. Her current research interests include consumer purchase behavior, family financial security, and life quality of farm families.     

Indirect consumer activism and politics in the market

ABSTRACT

Social movement organizations use consumer activism to mobilize public pressure and cause economic or reputational damage to their target. However, current frameworks fail to explain why organizations would use indirect consumer activism: targeting one firm to elicit change from a third party. This paper aims to explain this choice, drawing upon theories of opportunity structures to explain why groups choose to use indirect strategies. I examine three campaigns using indirect strategies: US-based Grab Your Wallet and Sleeping Giants, and UK-based Stop Funding Hate. Groups use indirect strategies to reach inaccessible targets and to mobilize the public; these strategies help social movement organizations to raise public awareness at the beginning of a campaign. I conclude with some expectations for future research.