The Impact of Emotional Intelligence: Understanding Consumer Behavior

1,488 views

Published on

Emotional decisions are made daily by consumers. The power and impact of emotion on the buying process is an emerging field.
Marketers must turn from the traditional marketing strategies based on cognitive abilities of the consumer to also include the role of emotions in the buying process.
A review of literature on consumer behavior and emotional intelligence is presented and a summary of a baseline study on consumer behavior and emotional intelligence is also presented.

Published in: Education, Technology, Business
  • Be the first to comment

The Impact of Emotional Intelligence: Understanding Consumer Behavior

  1. 1. The Impact of Emotional Intelligence: Understanding Consumer Behavior Dr. Andree C. Swanson, EdD, MHR, MAOM Dr. Paula Zobisch, PhD Image(s) from Microsoft Clip Art.
  2. 2. Presenting at the IBAM October 2013 in San Diego, CA
  3. 3. Abstract Emotional decisions are made daily by consumers. The power and impact of emotion on the buying process is an emerging field. Marketers must turn from the traditional marketing strategies based on cognitive abilities of the consumer to also include the role of emotions in the buying process.
  4. 4. Abstract (Continued) A review of literature on consumer behavior and emotional intelligence is presented and a summary of a baseline study on consumer behavior and emotional intelligence is also presented.
  5. 5. Literature Review Image(s) from Microsoft Clip Art.
  6. 6. Emotional Intelligence (EI) Defined The capacity to…  perceive emotions,  assimilate emotion-related feelings,  understand the information of those emotions  manage them (Mayer et al., 1999)
  7. 7. EI = Ability or Trait Ability (Salovey & Mayer, 1990)  Trait Characteristics Refer to emotional intelligence as something that can be scored Similar to IQ EQ (Bar-On, 2007) Two schools of thought on EI
  8. 8. Is emotional intelligence distinct from IQ?  EI is located in a distinct area of the brain (Cherniss & Goleman, 2001) Image(s) from Microsoft Clip Art.
  9. 9. If Bar-On’s study is accurate…  Emotionally intelligent consumers do not react to their emotions, but use their EI to assess their current level of emotions and are able to make appropriate choices. Image(s) from Microsoft Clip Art.
  10. 10. Emotional Skills Assessment Process (ESAP) Emphasized … a person-centered, experiential method of considering any situation The ESAP stresses that emotional intelligence is a skill that can be learned and refined, much different than EQ (Nelson & Low, 2011).
  11. 11. Integrating the Five Domains of Emotional Intelligence and the ESAP Salovey and Mayer’s Five Domains of Emotional Intelligence Nelson and Low’s Emotional Skills Assessment Process (ESAP) Self-Awareness The actual process of assessing emotional skills; includes self-monitoring Managing Emotions Involves the stress management, assertion, anger management, anxiety management, empathy, social awareness, and positive change emotional skills Motivating Self Involves the drive strength, decision making, time management, commitment ethic, positive influence, self-esteem, and positive change emotional skills Empathy Involves the empathy, social awareness, self-esteem, assertion, and positive influence emotional skills Handling Relationships Involves the self-esteem, empathy, assertion, stress management, anger management, anxiety management, positive influence, and positive change emotional skills.
  12. 12. Nelson & Low (2011) stated… In the ESAP “specific emotional skills are used to understand and develop, on a practical level, each of the five domains” (Nelson & Low, 2011, p. 192).
  13. 13. Traditional Consumer Buying Models  Dismiss the role of emotion when making a buying decision.  Rational consumer = rational buying decision Found a correlation between EI, impulse buying, and self esteem (Peter & Krishnakumar, 2010)
  14. 14. Consumer Emotional Intelligence (CEI) Consumer Emotional Intelligence (CEI) Recognized as a combination of… Cognitive emotions Image(s) from Microsoft Clip Art.
  15. 15. Types of Consumer Buying Decisions  “Low Road” – spontaneous, impulsive  “High Road” – controlled decisions  A decision made by an absence of cognition, a completely emotional decision
  16. 16. Impulse Consumer Buying  Loud Music  Distracting or loud environment  Engaging display  Shorten waiting times  Hedonic behavior Image from http://urcalendar.wordpress.com/2011/10/12/impulse-buying- behavior/
  17. 17. Affection towards a product?  Hsee and Kunreuther (2000) suggest consumers develop affection "toward products and services just as they do toward other individuals or toward their pets" (p. 49).  Their study revealed pet owners would purchase the more expensive medication for their pet when the pet was held in higher affection than when they were not. Copyright 2013, Andree Swanson
  18. 18. Kidwell’s Dissertation Topic Emotional Intelligence in Consumer Behavior: Ability, Confidence, and Calibration as Predictors of Performance Kidwell et al. (2004) focused on creating an assessment to measure emotional ability when shopping.
  19. 19. Significance of Study Image(s) from Microsoft Clip Art.
  20. 20. Significance Financial hardship Coping strategy Relationship difficulties Image from http://taxreliefreviews.info/2012/09/is-there-tax- relief-when-in-financial-hardship/
  21. 21. Marketing Implications  Marketers can use EI to segment the market and communicate with a specific market segment  EI & CB indicate marketers must move from cognitive- based marketing strategies to include more strategies that involve the whole person such as emotion  EI & CB can be used to predict impulse buying
  22. 22. Ethical Considerations  Do sales people and/or managers take advantage of consumers through the use of emotions?  Using emotional strategies on a market segment least likely to use emotions for good buying decisions  Using the knowledge of EI & CB to sell to vulnerable consumers with a low awareness of how emotions affect their buying decisions
  23. 23. Research Methodology Image(s) from Microsoft Clip Art.
  24. 24. Survey Methodology  Conducted a survey  Used Survey Monkey  Analyzed results Image(s) from Microsoft Clip Art.
  25. 25. Participants / Demographics  Gathered 86 participants over age 18 through social media  Linkedin  Facebook Image(s) from Microsoft Clip Art.
  26. 26. Survey Results Image(s) from Microsoft Clip Art.
  27. 27. Heard of Emotional Intelligence 81 participants = YES 5 participants = NO
  28. 28. Understanding of EI 67 participants = strongly agree or agreed that they had an understanding of EI
  29. 29. Unplanned purchases in last 12 months
  30. 30. Unplanned purchases in last 12 months Question 1-3 4-6 7-10 10-15 16 or more How many unplanned purchases have you made in the last 12 months? 44 (51.2%) 20 (23.3%) 9 (10.5%) 4 (4.7%) 9 (10.5%)
  31. 31. The bottom-line Difficulty with self-reporting No specific instrument accurately measures
  32. 32. Future Research http://www.uws.edu.au/bioelectronics_neuroscience/bens/postgraduate
  33. 33. Future Research  How do emotions influence the behavior of sales people  What role do emotions play in self regulation  How should emotions be measured in marketing  Accurate research instrument
  34. 34. Concluding Research http://www.forskningsradet.no/servlet/Satellite?c=Nyhet&pagename=nanomat%2FH ovedsidemal&cid=1253969771853
  35. 35. Conclusion  Buying decisions influenced by emotions  Degree of influence varies among emotional intelligence, or the emotional awareness of consumer
  36. 36. Biographies Dr. Andree Swanson and Dr. Paula Zobisch http://rediscoveringthebible.com/Biographies.ht ml
  37. 37. Dr Andree Swanson  Assistant Professor, Ashford University  Adjunct Faculty, Kaplan University  Ed.D. Educational Leadership, University of Phoenix  MA, Organizational Management, University of Phoenix  MHR, Human Relations, University of Oklahoma  Worked as a Dean of General Education, National Training Manager, for the US government (DoD, USAF, & USA), corporations, and higher education.
  38. 38. Dr. Paula Zobisch  Assistant Professor, Ashford University  Ph.D. Adult Education, Capella University; MBA emphasis in Marketing, University of Central Oklahoma  Director of Marketing and Major Accounts Sales Manager, 3M Distributor, Oklahoma City, Oklahoma 1989 – 2007
  39. 39. References Image(s) from Microsoft Clip Art.
  40. 40. References  Bell, H. A. (2011, September). A contemporary framework for emotions in consumer decision-making: Moving beyond traditional models. International Journal of Business and Social Science, 2(17), 12-16. Retrieved from ProQuest database.  Cherniss, C., & Goleman, D. (2001). The Emotionally Intelligent Workplace: How to Select For, Measure, and Improve Emotional Intelligence in Individuals, Groups, and Organizations. New York, NY: Jossey-Bass.  Hsee, C. K., & Kunreuther, H. C. (2000). The affection effect in insurance decisions. Journal of Risk and Uncertainty, 20(2), 141-159. Retrieved from ProQuest database.  Kidwell, B., Brinberg, D., Parker, A., Nakamoto, K., Jewell, B., & Crawford, H. (2004). Emotional Intelligence in consumer behavior: Ability, confidence, and calibration as predictors of performance (Doctoral Dissertation). Available from http://scholar.lib.vt.edu/theses/available/etd-05082004- 161747/unrestricted/Dissertation.pdf  Kidwell, B., Hardesty, D. M., & Childers, T. L. (2008a). Consumer emotional intelligence: Conceptualization, measurement, and the prediction of consumer decision making. Advances in Consumer Research, 35, 660. Retrieved from ProQuest database.
  41. 41. References, Continued  Kidwell, B., Hardesty, D. M., & Childers, T. L. (2008b, December). Emotional calibration effects on consumer choice. Journal of Consumer Research, 35(4), 611-621. Retrieved from ProQuest database.  Kotler, P., Kartajaya, H., & Setiawan, I. (2010). Marketing 3.0: From products to customers to the human spirit. Hoboken, NJ: John Wiley & Sons.  Mayer, J., Caruso, D., & Salovey, P. (1999). Emotional Intelligence meets traditional standards for an intelligence. Intelligence, 27(4), 267-298. Retrieved from ProQuest.  Nelson, D., & Low, G. (2010). Emotional Intelligence: Achieving academic and career excellence in college and in life. New York, NY: Prentice-Hall.  Peter, P. C., & Krishnakumar, S. (2010). Emotional intelligence, impulse buying and self-esteem: The predictive validity of two ability measures of emotional intelligence. Journal of Consumer Research, 35(1), 154-166. Retrieved from ProQuest database.
  42. 42. References, Continued  Ramanathan, S., & Menon, G. (2006, November). Time-varying effects of chronic hedonic goals on impulsive behavior. Journal of Marketing Research, XLIII, 628-641. Retrieved from ProQuest database.  Ramanathan, S., & Shiv, B. (2001). Getting to the heart of the consumer: The role of emotions and cognition (or the lack thereof) in consumer decision making. Advances in Consumer Research, 28, 49-50. Retrieved from ProQuest database.  Salovey, P., & Mayer, J. D. (1990). Emotional intelligence, imagination, cognition, and personality, 9, 185-211. Retrieved from http://www.unh.edu/emotional_intelligence/EI%20Assets/Reprints...EI%20Pro per/EI1990%20Emotional%20Intelligence.pdf  Shiv, B., & Fedorikhin, A. (1999). Heart and mind in conflict: The interplay of affect and cognition in consumer decision making. Journal of Consumer Research, 26(3), 278-292. Retrieved from ProQuest database.

×