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Exploring the role of hope on indebtedness

Exploring the role of hope on indebtedness



Exploring the role of hope on indebtedness and risk perception related to consumer purchasing behaviour...

Exploring the role of hope on indebtedness and risk perception related to consumer purchasing behaviour

By Lucia Barros

Organised by Merlien Institute's International conference on Qualitative Consumer Research & Insights, 7 & 8 April 2011, malta



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    Exploring the role of hope on indebtedness Exploring the role of hope on indebtedness Presentation Transcript

    • Exploring the role of hope on indebtedness and risk perception related to consumer purchasing behaviourLucia BarrosFundação Getúlio Vargas / Centro Universitário FIEODelane BotelhoFundação Getúlio VargasApril, 2011.
    • INTRODUCTIONHope is an important construct in marketing, once it is an antecedent of anumber of important marketing variables, such as trust, expectation andsatisfaction (MacInnis & de Mello 2005, Almeida, Mazzon & Botelho 2007). Hope is an important element in the purchase of personal credit. The process of idealizing and the wish of a better future play important roles, allowing one to imagine himself enjoying a different future situation (Fleming 2008). It is suggested that high hope can lead to lower risk perception, which can lead consumers to harmful behaviours (MacInnis & de Mello 2005).
    • RESEARCH PROBLEMThis research aims to investigate the influence of hope on risk perception and on propensity to indebtedness.
    • THEORETICAL BACKGROUNDHOPE Congruent and Positive Goal Uncertainty HOPE Importance Perceived Possibility
    • THEORETICAL BACKGROUND HOPE AND PURCHASE BEHAVIOUR• The purchase and consumption of goods and services are part of people’s goals.• Consumption can be either the goal per se or the means to achieve a greater goal.• Hope encourages consumers’ action, which can be the evaluation, choice and purchase of several products.• When with high hope, people tend to systematically look for congruent information, which increases their belief that their goals are possible.• Hope was said to be an antecedent of attitude, trust, expectations and satisfaction.
    • THEORETICAL BACKGROUNDHOPE AND RISK PERCEPTION • When searching for congruent information, people may ignore information pointing to the likelihood of negative consequences (MacInnis and de Mello 2005). • Thus, high levels of hope increases the perception that the congruent outcome can happen; • Lower the perception of the possibility to occur negative consequences; • And of their severities; • Besides increasing the perception that the risk-return relation is worthwhile (MacInnis and de Mello 2005).
    • THEORETICAL BACKGROUNDHOPE AND PROPENSITY TO INDEBTEDNESS• The purchase decision of financial products involves a number of psychological, physic and social values (Vitt 2004), which can diminish precautions to maintain financial balance.• Hope is an emotion capable of generating this kind of behaviour.Consumers may get indebted in order to achieve a goal which wouldallow a dream to come true. (Fleming 2008).• If risk perception is affected by hope; high hope can increaseconsumer’s propensity to indebtedness.
    • METHODOLOGY• The chosen method was individual in-depth interviews throughopen and non-structured questions;• Seven consumers were interviewed. Four of them recently gotindebted, while the other three were about to do it.• Below is the profile of each interviewee.Code Codename Age Gender Professional ActivityI1 Zezé 27 Female Public RelationsI2 Binho 31 Male LawyerI3 Amy 27 Female Fashion DesignerI4 Cacá 31 Male LawyerI5 Suzi 28 Female Travel AgentI6 Sérgio 29 Male EconomistI7 Lara 27 Female English Teacher
    • METHODOLOGY• The chosen interview script was the one used by Fleming (2008),based on the method of narrative interview, in which the intervieweetells a story as an improvised narrative (Flick, 2004).• Specifically, the interviewees were asked to tell a story about themoment they got or decided to get indebted. More details were askedthrough open questions, and because of the non-structured script, newquestions were added throughout the interviews.• These interviews were analyzed through the method of contentanalysis, in which interviewees’ speech were recorded, coded andcategorized according to their similarities.
    • RESULTS I called the first common category which arouse from the interviews as“Goals”. When telling their stories about a situation in which theybecame (or planned to become) indebted, all interviewees claimed tohave a major goal which they pursuit.“The advantage is mobility... it is the possibility of not depending on otherpeople or on public transportation to come and go. It is a major changein my possibility to commute.”(Zezé)“I am in a new phase now, changing jobs and I am a very anxiousperson and I end up eating and drinking too much. So, I decided to getthis treatment to become motivated, to fit my clothes again and to feelbetter, to feel good about myself.”(Amy)“To leave my mother’s house, to live with my boyfriend, to have our ownplace.” (Lara)
    • RESULTS• According to the literature, goals are produced when current lifecircumstances are unsatisfactory, involving some kind of privation. Unsatisfactor y current Goals situationThese unsatisfactory situations were found in the interviewees’ storiesand, consistently, they were the reason for the goals to be generated.“It is insane that the public transportation is the way it is and doesn’tguarantee my mobility with comfort… for instance, if I have to work inBrooklin (a neighborhood in São Paulo) or even in Itaim (anotherneighborhood in São Paulo), I will need three to four buses to get thereand the same to go back.” (Zezé)
    • RESULTS• Snyder (2000) explains that when one has an important goal, he/sheproduces pathways. The interviews showed that purchasing a productcan become an important pathway. Here, these products wereexpensive, so being able to purchase them has become another goalfor the interviewees. I call it a “purchase goal”.• “I intent to buy a car…” (Zezé)• “Recently I purchased an aesthetic treatment…” (Amy)• “I decided to buy a motorcycle.” (Sérgio)• “An apartment. I still don’t know where, it will depend on the job I willfind.” (Lara)
    • RESULTS• Consistent to Snyder (2000), to achieve these purchase goals, theinterviewees’ stories showed that they produced a number ofpathways. Because these goals were related to products theyperceived as expensive, getting indebted showed to be a commonstrategy, in agreement with Fleming (2008). Pathways = Important Unsatisfactory Current and Uncertain Situation Purchase Goal Goal
    • RESULTS• According to Snyder (2000), one will only follow the pathwaysproduced to achieve his goals when s/he has a sense of agency, whichmeans that s/he believes s/he is able to do so. This sense of agencywas also found in the interviewees’ stories.“I don’t think about this possibility (not being able to pay theinstallment) because it’s a question of planning, organizing andcompromising with that amount every month…” (Binho)“I think that from the moment we buy it, we compromise to pay it. It’s acommitment, an amount we have to pay every month. If there is anyemergency and we can’t pay, we have to renegotiate, but keep onpaying it.” (Lara)
    • RESULTS• This sense of agency seems to reduce their risk perception. In otherwords, because they see getting indebted as a pathway to buy theproducts they want and they have enough agency to pursue thispathway, the risks involving indebtedness seem smaller. Theinterviewees rarely talked about risks before being asked about it.When asked, they remembered that risks could occur.“Yes, I think about them (the risks), but on this case, I didn’t worrybecause I was sure I could pay it.” (Binho)“No, (I haven’t thought about the risks) because I know I’ll pay it. I’ll payit. Different from other people who may think “no problem, I’ll thinkabout it later.” (Sérgio)
    • RESULTS• In addition to the sense of agency, positive images about theexpected goal accomplishment also seemed to influence a reductionon risk perception, consistently to MacInnis and Price (1987). Allinterviewees showed positive images when they talked about theirgoals.“At the coffee shop. I know I’ve never done it, but this image had cometo my mind. I was having a coffee at Starbucks, near my house: “Ah, Iwish I could have my notebook here. Using it, feeling comfortable,having a Frapuccino…” I haven’t done it yet because… I don’t know.”(Suzi)“I imagine how I am going to decorate it, what it’s going to have, what Ineed to buy. I need to buy a lot of things. Now, I’m worried only with theessential, like stove, fridge, bed, bathroom, that’s all.” (Lara)
    • RESULTS• Because goals, agency, pathways, importance and uncertainty werefound on the interviewees’ speeches, it is presumable that when aconsumer decides to get indebted, it is because there is hope.“It is a certainty that things are going right, you rush in order to makesure things go the way you want.” (Zezé)“I believe I will either get close to my goal or achieve it. I think it will bedifficult to go beyond it. But if I reach my goal or get close to it, it’salready fine.” (Amy)“I lack an easier income. I lack a more secure job, which pays mebetter. I believe that at the moment, I just have to look for it. We weretalking about risks, right? What I think is that because the amount islarge, there is always a risk. I’ll spend some years to pay it. Hopeeverything goes right…” (Lara)
    • RESULTS• Finally, it could be noticed that when goals were achieved, hope gaveplace to satisfaction, in accordance with the literature (MacInnis and deMello 2005, Almeida, Mazzon and Botelho 2007, MacInnis and Chun,2007).“It’s what I was expecting.” (Binho)“I felt great satisfaction. It seems it’s a new child, say, for me to takecare of because it was a good acquisition. It was worth buying it.” (Suzi)“It was very good. Speeded things up, as I wanted it. It made myweekends easier as well. So, it was great.” (Sérgio)
    • DISCUSSION Hope Satisfaction = Agency + Pathways = ImportantUnsatisfactory Current and Uncertain Situation Purchase Goal Goal Agency +Risk Perception
    • DISCUSSION• Hope exists when there is an important and uncertain goal caused by an unsatisfactory current situation, and there are pathways and agency to pursue this goal (Hamilton 1978, Clotfelter and Cook 1989, Lazarus 1999, Snyder 1994, 2000, 2002, MacInnis and de Mello 2005, Bruininks and Malle 2006, Fleming 2008).• This sense of agency can make a person underestimate the risks involving the goal and getting indebted appeared as a pathway to achieve it. At the end, when consumers achieved the desired goal, hope gave place to satisfaction.• These results expand the current literature in two ways: (1) they integrate concepts from different theoretical schools, and (2) they integrate three constructs (hope, risk perception and propensity to indebtedness) in one theoretical model. They also corroborate to the linkage between hope and satisfaction, what has already been proposed by the literature (MacInnis and de Mello 2005, Almeida, Mazzon and Botelho 2007, MacInnis and Chun, 2007).
    • Presented at the International conference onQualitative Consumer Research & Insights 7 & 8 April 2011, Malta For more information Please visit: http://www.merlien.org