Consumer Behavior [1 ed.] 9781617287725, 9781606923948

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Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

CONSUMER BEHAVIOR

No part of this digital document may be reproduced, stored in a retrieval system or transmitted in any form or by any means. The publisher has taken reasonable care in the preparation of this digital document, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained herein. This digital document is sold with the clear understanding that the publisher is not engaged in rendering legal, medical or any other professional services.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

CONSUMER BEHAVIOR

FELIX SAITO

EDITOR

Nova Science Publishers, Inc.

New York

Copyright © 2009 by Nova Science Publishers, Inc. All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher. For permission to use material from this book please contact us: Telephone 631-231-7269; Fax 631-231-8175 Web Site: http://www.novapublishers.com NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book. The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers’ use of, or reliance upon, this material.

Copyright © 2009. Nova Science Publishers, Incorporated. All rights reserved.

Independent verification should be sought for any data, advice or recommendations contained in this book. In addition, no responsibility is assumed by the publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein. It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services. If legal or any other expert assistance is required, the services of a competent person should be sought. FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS. LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA Consumer behavior / Felix Saito, editor. p. cm. ISBN 978-1-61728-772-5 (E-Book) 1. Consumer behavior. I. Saito, Felix. HF5415.32.C6586 2009 658.8'342--dc22 2008045970

Published by Nova Science Publishers, Inc.  New York

CONTENTS Preface Chapter 1

Chapter 2

Chapter 3

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Chapter 4

Chapter 5

vii Relationship between Corporate and Individual Environmental Responsibility Rajiv K. Kashyap, Easwar S. Iyer and Bobby ‘Subhabrata’ Bannerjee Japanese Olive Oil Consumer Behaviour: A Conjoint Analysis Approach Mtimet Nadhem, Kashiwagi Kenichi, Zaibet Lokman and Masakazu Nagaki

1

27

Assessing Kitchen Purchase Behaviour among Families Using Correspondence Analysis Roberto Furlan, Anna Claudia Pellicelli and Roberto Corradetti

49

Consumer Behavior, Trust of Information, and Risk Perception of Food Safety Events Sayed Saghaian and Jonathan D. Shepherd

63

Sustainable Food Consumption, Involvement and Knowledge: An Application of the Theory of Planned Behaviour Iris Vermeir

87

Chapter 6

Consumers and Purchases of Health Products over the Internet Joshua Fogel

105

Chapter 7

Are Chat Rooms Replacing Conventional Communities? Aviv Shoham

117

Chapter 8

Evolutionary Programming to Simulate Electricity Market Competition Daniele Menniti, Anna Pinnarelli and Nicola Sorrentino

129

Consumers’ Preference for Choice Strategies Examined in Two Task Domains Gesine E. Ziebarth and Xiao-Tian Wang

151

Chapter 9

vi Chapter 10

Felix Saito Medical-Information Consumers: Comparing the Characteristics of Patients with COPD Who Recently Visited Their Physicians and Patients Who Visited a Medical-Information Website Linda Casebeer, Joan Arata, Rachael Shillman and Andrew Sanchez

Chapter 11

Materialism: An Evolutionary Perspective Paul Rose and Kyle E. Conlon

Chapter 12

Biased Consumers’ Hypotheses on Price-Quality-Relationships: Influences of Numerical Anchors Günter Molz, Michael Gielnik and Ekkehard Stephan

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Short Comm A Mobile Learning: Prediction of User Behavior by Means of the Theory of Reasoned Action Yu-Ru Lin, Yi-Fen Chen and Shu-Ting Chuang

169

185

197

213

Short Comm B Cost-Benefit-Associations: A Powerful but Understudied Construct Bernadette Kamleitner

227

Short Comm C Fairness Perceptions and Utility Maximization Irene Daskalopoulou

239

Short Comm D Purchasing Illegal Copies of Movies’ Videos as an Unethical Consumer Behavior: An Israeli Study Aviv Shoham, Ayalla Ruvio and Moshe Davidow

249

Index

261

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PREFACE This book introduces concepts of corporate environmental responsibility and individual environmental responsibility, identify their key indicants, and offer evidence of robust relationships between them. Using correspondence analysis, kitchen purchase behavior among families is assessed. In addition, consumer behavior, when it comes to food safety events, is examined. Understanding how consumers conceptualize food safety risks is essential for effective strategic response plans. Furthermore, following the theory of planned behavior, this book attempts to account for variables which are assumed to have an impact on sustainable consumption. Empirical research published in peer reviewed journals on the topic of consumers and health-related products on the Internet are reviewed. In addition, a new theory of evolutionary games and the concept of Near-Nash equilibrium to simulate the electricity market is suggested. In particular, an opportune genetic algorithm has been developed. As an example of medical-information consumers, the associations between feeling informed about COPD (chronic obstructive pulmonary disease) and the control of COPD is reviewed. Furthermore, biased consumers' hypotheses on price-quality relationships is addressed. In other words, in terms of the psychology of judgment, certain results can be attributed to an effect caused by a numeral anchor (on the price tag). This book examines consumer acceptance of Mobile learning (M-learning) by proposing and extending the theory of reasoned action (TRA) including the variable of social influences. Literature related to the emerging concept of cost-benefit-associations are also reviewed. Cost-benefit-associations are the degree to which thoughts of costs evoke thoughts of benefits and vice versa. Finally, a model interrelating consumers' ethics, their sentiments toward marketing, and their attitudes to piracy and actual piracy itself were studied. Attitudes about piracy served as a partial mediator of the impacts of consumer sentiments, morals, and ethics on actual piracy. Chapter 1 - In this study, the authors extend previous research on corporate environmentalism by developing a framework that relates corporate environmental responsibility to individual environmental responsibility. We introduce the concepts of corporate environmental responsibility and individual environmental responsibility, identify their key indicants, and offer evidence of robust relationships between them. Our results highlight the importance of corporate environmental orientation and individual environmental values as the building blocks of environmental responsibility.

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Chapter 2 - During the last two decades, olive oil consumption in Japan is showing an increasing trend due to dietary and health concerns. Traditional olive oil producer and exporter countries such as Italy, Spain and Tunisia have an interest in reinforcing and to increasing their penetration into the Japanese market. This study examines Japanese olive oil consumer behaviour by the use of the conjoint analysis technique. Five attributes have been chosen to design the experiment: region of origin, price, olive oil type, taste and colour. Two models have been estimated whereby the price variable was introduced in its discrete form in the first model and in its linear and quadratic form in the second model. In a second step, consumer segmentation was undertaken based on consumption frequencies. Two groups have been identified: “heavy consumers” and “light or potential consumers”. The main results indicate the importance of the selected variables in Japanese olive oil consumer choice. Olive oil with Mediterranean or Tunisian origin has higher probabilities to be chosen than Italian or Spanish olive oil. Japanese consumers prefer a green olive oil with a bland taste olive oil. Concerning olive oil type, results indicate that refined olive oil has more probability to be chosen than virgin or extra-virgin olive oil, indicating low awareness of Japanese consumers about olive oil. The price variable estimates have shown a convex utility curve indicating a decrease in consumer use when price increases to a maximum. Above that price, consumer use increase indicating in that case, that olive oil is considered a luxurious product. Differences as well as similarities have been detected among consumer segments. Chapter 3 - Over the last decade, furniture manufacturers have shown a strong need for a better understanding of the decision-making process that drives home furniture purchases. In this chapter, we focus on kitchen purchase behaviour and we investigate, through an ad hoc market research survey, how close the current kitchen present in the house is to the ideal kitchen and what the unmet characteristics are. The survey is based on a stratified and quota sample of families who have recently bought a new kitchen-element system. The core of the questionnaire was formed by an extended set of pairs of opposite emotional-oriented statements intended to collect precise information about the style of both the ideal and actually purchased kitchen. After conducting a Wilcoxon matched pairs signed ranks test to evaluate the main differences in evaluations between ideal and purchased kitchen, we performed a multiple correspondence analysis to represent the relative position of the two sets of statements through a two-dimensional strategy map. This map enables the reader to gain precious insights into the general pattern of purchase behaviour with respect to the ideal product. The approach presented here can be profitably extended to other areas to enable furniture manufacturers to better meet consumer demand and, therefore, to be more competitive in the global market. Chapter 4 - Media attention devoted to recent food safety events has increased consumers’ awareness and further complicated the marketing aspects of agricultural products. Recently, E. coli outbreaks in ground beef and fresh spinach and Salmonella-tainted fresh tomatoes have captured news headlines nationwide. Economic losses associated with these events can destroy brand images and affect entire industries. The life cycle of a food safety event is a dynamic process in which consumers often change consumption patterns during the scare, returning to pre-scare consumption patterns after the event. It is unclear how long the cycle takes or what signals are most effective to persuade consumers to return to their prescare behavior. Many factors differentiate food safety risks from other risks. Complete reduction of risk is not possible as food is essential for life. Food safety attributes are associated with credence goods. Credence goods are products for which consumers rely on

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ix

brand images, labels or testimonial advertising to form opinions. Understanding how consumers conceptualize food safety risks is essential for effective strategic response plans. The data for this research was obtained from two surveys. One survey concerned fresh produce while the second focused on meat products. The SPARTA model, based on the Theory of Planned Behavior, is used to determine the atmosphere impact of factors that influence consumers’ purchasing decisions. The Theory of Planned Behavior has been used in many studies that analyze behaviors associated with risk. Of particular interest is to determine if consumer response can be generalized across products. The result of this research indicates that consumers have clearly-defined levels of trust associated with different entities that would be potential sources of food safety information. More specifically, consumers trust doctors and university scientists over media and processors. Hypothetical food safety events are used to analyze their impact on food purchasing decisions. In general, a food safety event occurring in the fresh produce market seems to affect purchasing decisions more than the same food safety event occurring in the meat market. Processors, animal welfare organizations, and political groups were all identified as being non-trustworthy. The majority of respondents indicated that the risk of suffering health consequences from a food safety event was negligible. Typical media outlets such as the Internet, newspapers, and television news were all identified as being important information sources in the wake of a food safety crisis. Agribusiness firms can use these results to form a base strategic response plan for food safety events. Chapter 5 - A substantial number of studies show that consumers value the sustainable aspect in a product and that there is a willingness to pay for sustainable products. However, consumers’ behavioural intention in the marketplace is not consistent with their reported attitude towards products with a sustainable dimension. Following the theory of planned behaviour, this study attempts to account for variables which are assumed to have an impact on sustainable consumption. More specifically, we examined if the determinants for purchase intentions according to the theory of planned behaviour are significant according to different levels of individual characteristics. The empirical research builds on a survey with a sample of 414 young consumers, using a questionnaire and an experimental design with manipulation of key constructs through showing advertisements for sustainable dairy. The multiple regression analysis showed that 38% of the variance in intention to consume or purchase sustainable dairy was explained by the combination of attitudes, perceived social influences, perceived consumer effectiveness and perceived availability. In addition, different levels of involvement and knowledge entail different strengths of the determinants. The findings yield public policy and marketing recommendations for stimulating sustainable food consumption among the young. Chapter 6 - Consumers are increasingly using the Internet to purchase products related to health. This chapter reviews the empirical research published in peer reviewed journals on the topic of consumers and health-related products on the Internet. Overall, 14 different articles were deemed relevant and were included in the review. The articles were published from the years of 2002 to 2008. The reviewed articles were grouped into categories that include Internet pharmacies, complementary and alternative medicine products, pharmaceutical manufacturer, general health products, spam e-mail, and contact lens vendors. Based upon the reviewed articles, consumers should consider evaluating the quality of the content that is received from purchases from Internet vendors of health products. Also, Internet vendors of

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health products should make the effort to ensure in their marketing to consumers that they convince consumers that they are reputable businesses that offer quality products. Chapter 7 - This chapter reports the results of a study of Internet chat rooms in Israel. Chat rooms have grown tremendously over recent years and, as a phenomenon, could have important implications for marketing scholars and practitioners. The paper uses a structured qualitative methodology and is based on the author’s participative observations in Israeli chat rooms over a period of two years. The main findings emerging from the observations are that individuals spend time in such rooms because they provide numerous benefits that parallel those accorded by non-virtual communities. Following Muniz and O’Guinn (2001, p. 412), a chat room community is defined as a “specialized, non-geographically bound community, based on a structured set of social relationships”. However, the emphasis in chat rooms shifts from the common use of a brand, as in Muniz and O’Guinn’s (2001) definition, to common users of the chat rooms in question. Specifically, this paper identifies chat rooms as modern communities and highlights their similarity to conventional communities. On-line chat rooms satisfy the conditions for communities’ existence (Jones 1997), namely virtual commonpublic-space, communicators’ variety, existence of a boundary for the virtual community, sustained members’ stability and interactivity, interactivity of verbal messages, message directing and targeting, interactivity in message content, action-simulating messages, and nickname stability (Liu 1997). Two major managerial implications are drawn. First, managers of Internet Service and Portal providers should account for chat rooms’ popularity. Sites that do not include chat room should incorporate them. Second, while McAlexander, Schouten, and Koenig (2002) and Muniz and O’Guinn (2001) have shown how brand communities are important to marketing managers, chat rooms can be used differently than brand-related chat rooms. Specifically, chat rooms can be used to launch a new product or service in line with the demographic composition of those in specific rooms. For example, a party in a nightclub can be described by, allegedly, an innocent chatter, in a chat room of people in their 20s. Chapter 8 - The simulation of the electricity market participant’s behaviour is important for producers and consumers to determine their bidding strategies and for regulating the market rules and for the regulators to evaluate the impact of the actual rules. In literature, for this aim a lot of papers suggest to use the well-known theory of non-cooperative games and the concept of Nash equilibrium. Unfortunately they cannot be applied in an easy way when a multi-players game has to be considered to simulate the operation of the electricity market. Then, in this chapter, the authors suggest using the new theory of evolutionary games and the concept of Near-Nash equilibrium to simulate the electricity market in the presence of more than two producers. In particular, an opportune genetic algorithm has been developed. From the results reported, it is clear that this algorithm can be usefully utilised. Chapter 9 - We examined how people select and weight the attributes of choice options and use decision strategies (rules and heuristics) to make public and consumer choices. The strategies we tested were step-by-step decision guidelines proposed by researchers of behavioral decision making and consumer choice. These choice strategies included the wellknown Multi-Attribute Utility Theory (MAUT) model, the Additive Difference (AD) principle, the “Take the Best” (TTB) heuristic, and also the newly proposed Minimum Requirement (MR) heuristic, and the “Take the Best” on your Minimum Requirement (TTBMR) heuristic. These decision strategies differed in their normality, complexity, and reference-point dependency. The study employed a two (domains) by five (strategies) withinsubject design. Participants were given actual information of four automobile options to

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xi

evaluate and choose from and, with a balanced order, four actual social security reform proposals to evaluate and choose from. After indicating their initial choice preference, the experimenter and the participant worked one-on-one together to construct a fact table for each of the two choice tasks. Each fact table included the individualized issues/attributes that the participant agreed to be essential for their choice. They then rated the importance of and minimum requirement for each attribute, and reviewed attribute values across the four choice alternatives in each task domain. The experimenter then introduced the choice strategies one at a time and assisted the participant in evaluating choice options according to each of the five choice strategies. Finally, the participant was asked to rate each choice strategy in terms of how consistent it was with their own, spontaneous decision process, and in terms of its overall attractiveness. The results revealed a significant preference for reference-point dependent heuristics (MR and TTB-MR) over reference-point independent strategies (MAUT, AD, TTB), particularly in the public choice domain for consuming ideology. Moreover, an analysis of the strategies’ goodness of fit with the actual choices made by the participants showed that in the public choice domain the reference-point dependent heuristics had the best fit, while in the consumer choice domain MAUT exhibited the best fit. These findings offer further evidence for heuristic choice mechanisms in making real life decisions, as well as implications for the development of behavioral decision aids. Chapter 10 - Access to the explosion of information available on the internet has allowed patients living with chronic illnesses to become more direct consumers of medical information than was possible in pre-internet times. In fact, searching for medical information is one of the top reasons for online information seeking. Self-efficacy has been associated with better healthcare outcomes in patients with chronic illnesses. Being informed about a chronic illness and its treatment options is an important aspect of self-efficacy. In a recent study, investigators surveyed more than 1500 patients living with chronic obstructive pulmonary disease (COPD), including: 1) patients who had recently visited their physicians; these physicians had been either participants or non-participants in online continuing medical education (CME) activities focused on COPD, and 2) patients who sought information from a large consumer website. Using responses from these healthcare consumers, the study examined the associations between feeling informed about COPD and the control of COPD. Patients who visited the medical-information website had surprisingly different characteristics from patients who had recently visited their physicians. As a group, patients visiting the consumer website were younger and had more severe COPD; they also felt less well-informed about their COPD and its treatment and perceived their COPD as less well controlled. Although seeking medical-information online is generally considered a characteristic of individuals with higher-self efficacy, the characteristics of this group of patients with COPD would generally be associated with lower self-efficacy. This study has identified a group of patients with COPD who have turned to the internet for information on their disease. The group is predominantly women and the majority of them have poorly controlled COPD. Credible medical websites have important roles to play for healthcare providers and for consumers. Understanding which characteristics of information consumers predict improvements in healthcare outcomes may allow segmentation and customization of website content to better meet consumer needs. Chapter 11 - Human nature seems to consist of predispositions that lead people to learn to value wealth and luxury more efficiently than they learn to value many other things. The

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basic human motives to attain security, social status and acceptance within groups, all of which contributed to the reproductive success of our ancestors, appear to predispose people to learn materialistic values in modern consumerist cultures. Moreover, the advantages of material abundance for successful reproduction may have lead people to prefer mates who display a commitment to wealth (especially when a long-term mate is sought, and especially among females pursuing males). These sexual selection pressures may have combined with the pressures of natural selection to contribute to the human inclination toward valuing material abundance. An appreciation of the role of evolutionary processes in predisposing humans toward efficiently learning materialistic values yields research questions that have the potential to enrich our understanding of consumer behavior. Chapter 12 - Product prices are often considered to be an indicator of quality. Low prices suggest low quality, high prices premium quality. In some situations prices in terms of indexlinked currency remain constant but the numbers on price label change. This may result from currency changeovers or rapid inflation processes. In this chapter we reanalyze data from experiments conducted during the Euro introduction in Germany. All of a sudden the numbers on price tags were divided by about 2, i.e. premium products might have been considered as “cheaper” in Euro prices (low numbered) than before in German Mark prices (high numbered). In terms of the psychology of judgment such a result can be attributed to an effect caused by a numerical anchor (on the price tag). We tested if there actually was a corresponding decline in perceived product quality. Results suggested that the currency changeover had an impact on perceived quality which might be explained by numerical anchoring. The impact of the effect was dependent on product category. In case of products which are selected in less rational and low involvement decision processes (beer) this effect was stronger than in case of more rational and high involvement purchases (family car). Besides numerical anchoring, additional explanations for these results are discussed. Short Communication A - This study empirically examines consumer acceptance of Mobile learning (M-learning) by proposing and extending the theory of reasoned action (TRA) including the variable of social influences. To account for social influences, this research adds three factors, i.e., family members, friends and experts, which enhance the explanatory power of the model. An online survey was conducted to collect data. A total of 313 undergraduate and graduate students in two Taiwan universities answered the questionnaire. The constructs measure using existing scales were adopted for this research. Structural equation modeling was employed to examine the fit of the data with the model by using LISREL software. The results of the data analysis show that the data fit the TRA model well. Furthermore, consumers hold positive attitudes for M-learning, viewing M-learning as an efficient tool. Specifically, the results show that social influences have great impacts on user acceptance and that the roles of family members, friends and experts can predict user intentions of using M-learning. The model enhances the understanding of consumers’ motivation of using M-learning. This understanding can aid the efforts in promoting Mlearning. Short Communication B - This chapter reviews literature related to the emerging concept of cost-benefit-associations. Cost-benefit-associations are the degree to which thoughts of costs evoke thoughts of benefits and vice versa. Strong reciprocal associations between costs and benefits have been implicitly assumed by various theories such as rational choice accounts. Despite this theoretical importance, cost-benefit-associations have rarely been

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Preface

xiii

addressed in the literature. Based on related streams of literature and preliminary evidence this chapter provides a theoretical framework for the phenomenon. The framework describes major determinants and consequences of differing degrees of cost-benefit-associations and highlights their broad theoretical and practical relevance. Short Communication C - Available literature suggests that fairness perceptions underlie consumers’ economic transactions. Viewing economic transactions, as a social practice requires that the non-linear effects of consumers’ judgments over the outcome they receive should be incorporated into the theoretical and methodological models of analyzing consumers’ choices among alternative outcomes. Here a model is proposed regarding the incorporation of fairness perceptions into consumers’ choices among alternative supermarket providers. Analysis is based on two assumptions. The first one relates to that consumers patronize stores using their own evaluations of the price and service fairness (overall fairness) that they expect to receive from each provider, as the underlying mechanism of patronizing alternative stores. The second one relates to that threshold levels of fairness exist and constitute the critical point at which a decision to transact with a specific provider turns from negative to positive and thus a transaction is observed. Based on these assumptions we formulate the hypothesis that utility maximizing consumers might actually be viewed as consumers maximizing the utility deriving from a patronizing process. Important implications arise from such a theorization. On the one hand, an analytical context is proposed for incorporating incommensurable human values and intangible constructs such as overall fairness perceptions into the methodological tools of consumers’ behavior analysis. On the other hand, a means is provided for empirical research over consumers’ expenditures to derive indirect, yet important, information as regards the unobservable process of patronizing stores. Using the shares of expenditures allocated to each provider as an approximation of the underlying transaction pattern (patronization pattern), the efficiency of households in allocating overall expenditures to different providers might be measured. Thus, observed deviations from an efficient allocation might be taken to account for the material value that is subject to the non-linear effects caused by human values and constructs underlying individuals’ economic transactions. In addition, this material value is the sum of expenditures shares weighted by the fairness ascribed to alternative prospective outcomes. Short Communication D - Consumer piracy could include buying illegal copies of music CDs or movie videos or brand-name knock-offs and its cost is estimated at billions of dollars. Piracy by consumers is a severe problem to manufacturers. The annual global loss from counterfeiting, such as pirated software and purchases of counterfeited brands (e.g., fashion), is $80 billion (Wee, Tan, and Choek, 1995). Moreover, sales of pirated music exceed $4.0 billion (Mariano, 2002). Furthermore, the Global Software Piracy Report (Smith, 2003) showed that software piracy had cost the USA 109,000 jobs, $4.5 billion in lost wages, and $1.0 billion in lost taxes. We tested a model interrelating consumers’ ethics, their sentiments toward marketing, and their attitudes to piracy, and actual piracy itself. Attitudes about piracy served as a partial mediator of the impacts of consumer sentiments, morals, and ethics on actual piracy. Most hypothesized relationships, including the role of piracy attitudes as partial mediators were supported by data from Israeli consumers. Piracy by consumers is a severe problem to manufacturers. The annual global loss from counterfeiting, such as pirated software and purchases of counterfeited brands (e.g., fashion), is $80 billion (Wee, Tan, and Choek, 1995). The music industry exemplifies the potential losses with sales of pirated music exceeding $4.0 billion (Mariano, 2002). Furthermore, at the

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macro-country level, the Global Software Piracy Report (Smith, 2003) showed that software piracy had cost the USA 109,000 jobs, $4.5 billion in lost wages, and $1.0 billion in lost taxes. Previous research has studied piracy as a behavioral outcome of consumers’ ethics and morals, which impact the use of pirated software, shoplifting, shirts, and cameras (e.g., Babin and Griffin, 1995; Cordell, Wongtada, and Kieschnick, 1996). Our research follows this approach and will be reviewed later. Here, we emphasize two contributions of our study. First, we develop a nomological model with internal ethical/moral attitudes and externallybased sentiments toward marketers’ products and prices as antecedents leading to attitudes about the act of piracy, which serves as a partial mediator of the impact of these antecedents on actual piracy. Inclusion of consumers’ sentiments is novel to our model. Second, our study was conducted in Israel, a unique setting for testing the model because most computer games, movie videos, and music CDs used in Israel are illegal copies (Hecht, 2001; Kara and Dror, 2002). Thus, the reality of Israel being a developed economy does not preclude consumers from piracy, which is a widespread local phenomenon (Bergerfreund, 2002; Kara, 2002; Koren, 2002). We first review the literature, develop a set of research hypotheses, and suggest a nomological model. After describing the study the findings are discussed. An implications section concludes the chapter.

In: Consumer Behavior Editor: Felix Saito

ISBN 978-1-60692-394-8 © 2009 Nova Science Publishers, Inc.

Chapter 1

RELATIONSHIP BETWEEN CORPORATE AND INDIVIDUAL ENVIRONMENTAL RESPONSIBILITY Rajiv K. Kashyap∗1, Easwar S. Iyer2 and Bobby ‘Subhabrata’ Bannerjee3 1

Cotsakos College of Business, 1600 Valley Road, #3068 William Paterson University, Wayne, NJ 07470, 973-720-3746 2 Isenberg School of Management University of Massachusetts Amherst, Amherst, MA 01003 3 International Graduate School of Management, University of South Australia, Adelaide, SA 5000

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ABSTRACT In this study, the authors extend previous research on corporate environmentalism by developing a framework that relates corporate environmental responsibility to individual environmental responsibility. We introduce the concepts of corporate environmental responsibility and individual environmental responsibility, identify their key indicants, and offer evidence of robust relationships between them. Our results highlight the importance of corporate environmental orientation and individual environmental values as the building blocks of environmental responsibility.

Keywords: Environmentalism, Environmentally Responsible Behaviors, Corporate Social Responsibility, Employee-Firm Value Alignment, Corporate Environmental Responsibility. Corporate environmentalism, individual environmentalism, environmental business processes, internal environmental programs, purchase and consumption script, recycling behavior.

∗

E-mail: [email protected]

2

Rajiv K. Kashyap, Easwar S. Iyer and Bobby ‘Subhabrata’ Bannerjee

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INTRODUCTION The expansion of the green market (Fortune Small Business 2003) and growth in socially responsible investing (Hutton, D’Antonio, and Johnsen, 1998) is the outcome of increased interest in corporate environmentalism. Whereas there is some research relating environmental practices to financial performance (e.g., Sharma and Vredenburg, 1998; Russo and Fouts, 1997), less attention has been given to whether corporate environmentalism is related to employees’ values, decisions, and behaviors. In other words, does corporate environmentalism affect an employee’s environmental values and their product purchases and disposal behaviors, and vice versa, do employees’ values and behaviors influence corporate environmentalism? Studying the influence of corporate environmentalism on individual behavior is essential from an organizational perspective. The importance of a good fit between organizational and individual values and perceptions is critical to the success of any strategic initiative (Bird and Beechler, 1995). Such a fit is best achieved through intra-organizational initiatives commonly referred to as internal marketing programs. In addition, satisfying customers in capital markets, i.e., institutional and retail investors, has important implications for firm competitiveness. These customers commonly evaluate corporate environmental practices to make inferences about social responsibility and devise social ratings. Simultaneously, public policy officials are seeking new ways to increase consumer sensitivity to environmental issues (e.g., FDCH Regulatory Database 2003, October 1 2003, and November 8 2001). American employees spend more time at work than their counterparts in any other industrialized country (US Department of Labor, 2004). Given the corporate trend towards fostering environmentalism, the workplace appears to be a useful venue to promote and reinforce pro-environmental values and behavior. With the exception of one study (Berger and Kanetkar, 1995), there has been little work to support the hypothesis that workplace programs can facilitate the translation of pro-environmental attitudes into environmentally responsible behavior. In this study, we aim to investigate the relationship between corporate environmental responsibility and individual environmental responsibility1.

FROM ENVIRONMENTALISM TO RESPONSIBILITY Corporate environmental initiatives were initially conceived as functional approaches, e.g., green advertising (Banerjee, Gulas, and Iyer, 1995) and environment cause marketing (Varadarajan and Menon, 1988), but have gradually acquired a more strategic purpose. This evolution was accompanied by a growing realization that an organic blending of employee skills and technologies would be necessary to foster environmentalism. Researchers used the term corporate environmentalism to describe this change in business philosophy. At first, attention was given to the firm’s mission, its values, and implementation infrastructure (Menon and Menon, 1997). Subsequently, Banerjee, Iyer, and Kashyap (2003) defined corporate environmentalism as a multidimensional construct consisting of an environmental orientation and an environmental strategy. Environmental orientation was conceptualized as a 1

We will more formally define these concepts in the next section.

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Relationship between Corporate and Individual Environmental Responsibility

3

cultural attribute that described the importance accorded to environmental issues. Environmental strategy referred to its subsequent incorporation into strategic planning. In the 1990’s, a proliferation of environmental NGOs, increased public concern for the environment and increased regulatory pressures jointly influenced the evolution of environmentalism into environmental responsibility (RoperASW, 2002). However, when companies formulated environmental mission statements activists accused them of greenwashing. Failure to implement environmental strategy has been attributed primarily to lack of employee training and organizational rigidity (Buysse and Verbeke, 2003; del Brio, Fernandez, Junquera, and Vazquez, 2001). Despite this finding, research on implementation of environmental strategy continues to be an underrepresented theme in academic inquiry (Maxwell, Rothenburg, Briscoe, and Marcus, 1997). We aim to study two factors that are vital to implementation: 1) internal marketing programs that help companies more closely align corporate and individual values and goals, and 2) environmental technologies and business processes, which describe how environmental strategies are implemented. Thus, we would like to include internal marketing programs and implementation processes in expanding the scope of corporate environmentalism. This we term as corporate environmental responsibility. To mirror the concept of corporate environmental responsibility, we propose the concept of individual environmental responsibility at the individual level. Individual environmental responsibility includes an individual’s environmental values and decisions processes that guide environmentally responsible behavior. Clearly, environmental values form the bedrock of individual environmental responsibility (Verplanken and Holland, 2002). We propose that an intervening process, i.e., environmental scripts, links values and behaviors. Collectively, we define these (i.e., values, scripts, and behaviors) as individual environmental responsibility. The purpose of this study is to examine the relationship between corporate and individual environmental responsibilities. The roadmap for the rest of the paper is as follows. First, we develop a conceptual framework that elaborates the multiple dimensions of corporate environmental responsibility including environmental orientation, environmental strategy, internal environmental programs, and environmental technologies and business processes. Next, we discuss individual environmental responsibility, which includes values, purchase and consumption script, and recycling behavior. Then we derive hypotheses to link the firm and individual level concepts. This is followed by a description of the empirical study, including the method, operationalization of constructs, analysis, and results. We conclude with a discussion on the implications of the findings for organizational researchers, managers and public policy officials.

CONCEPTUAL BACKGROUND AND HYPOTHESES DEVELOPMENT Corporate Environmental Responsibility Corporate environmentalism, whether described in terms of a business philosophy (Menon and Menon, 1997) or business strategy (Banerjee, Iyer, and Kashyap, 2003) includes environmental orientation and environmental strategy. Clearly, these represent the core of

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Rajiv K. Kashyap, Easwar S. Iyer and Bobby ‘Subhabrata’ Bannerjee

corporate environmental responsibility, although there is more to it. Corporate environmental responsibility also requires an alignment in the firm’s values with those of its employees and attention to implementation programs and processes. The two implementation dimensions of corporate environmentalism are internal marketing programs and environmental technologies and business processes, which when coupled with environmental orientation and environmental strategy constitute corporate environmental responsibility.2

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Internal Marketing Programs Internal Marketing Programs comprise an important component of corporate environmental responsibility that focus on the alignment between a firm’s values and employees’ values. This is achieved through efforts to promote, diffuse, and institutionalize environmental values and concern among its employees. Often part of broader environmental initiatives such as ISO 14001 (Bansal and Hunter, 2003), they serve to demonstrate the organization’s commitment to the environment. To promote environmental values among employees, rewards and / or incentives are offered for superior environmental performance and innovation. For instance, Dow Chemical’s 20 year old program (called WRAP for Waste Reduction Always Pays), rewards employees for methods that convert waste into raw materials (Nicoll, 2003). Rewards are often structured as bonuses and citations in formal programs, although many firms employ informal means such as supervisory praise and recognition (Ramus, 2001). Often, firms allow employees to set environmental goals and participate in environmental policy decisions, in the process empowering them as well. Environmental values may be diffused by disseminating information about the environmental impacts of firm operations. Such dissemination can occur through company newsletters, internal reports, and educational programs. In addition, recycling and car pooling programs encourage the adoption of pro-environmental behaviors. Further, companies design programs to improve environmental problem solving skills and provide training to develop competences needed to perform environmental functions. Internal marketing programs are institutionalized through irreversible commitments (Menon and Menon, 1997) that signal the importance of the environmental function. These include the creation of specialized positions (e.g., Environmental Director) and the development of formal policies (e.g., percent of workforce in special teams) to encourage environmental performance. Firms also institutionalize their environmental values through guidelines that specify the duties of environmental new product development teams. For instance, development of environmentally friendly new products requires both an assessment of environmental impacts and accurate product-market definition (Pujari, Wright, and Peattie, 2003). Such interfunctional coordination facilitates the sharing of environmental values. Proenvironmental values permeate every aspect of business in environmentally responsible organizations.

2

To facilitate exposition of our hypotheses we discuss the implementation constructs before orientation and strategy.

Relationship between Corporate and Individual Environmental Responsibility

5

Environmental Technologies and Business Processes

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Environmental Technologies and Business Processes focus more on implementation of programs and processes. Environmentally responsible firms make changes in technologies and business processes to improve environmental performance. As part of corporate environmental responsibility, firms proactively accumulate a portfolio of environmental technologies to reduce environmental impacts. Changes to the environmental technologies portfolio are usually incremental and firms seek to integrate them within existing systems and structures. These technologies are deployed in the design, manufacture, and disposal of new and existing products and by-products (Klassen and Whybark, 1999). Examples include, but are not limited to technologies for pollution prevention, use of reusable and recycled materials, and use of renewable energy sources and energy conservation. Implementing environmental strategy involves harmonizing changes in business processes as well. For instance, pollution prevention technologies often require changes in existing business processes such as sourcing new inputs for manufacturing (e.g., substituting environmentally friendly coatings in metal surface coating applications). Life cycle analysis to shrink the size of the environmental footprint requires a thorough assessment of the potential for using recycled materials. Further, environmentally proactive firms exert upstream pressure to increase supplier use of non-virgin materials. For instance, Kinko’s demonstrates its commitment to sustainable environmental practices through its procurement policy that prohibits suppliers from harvesting old-growth forests. Firms can also influence downstream demand by creating innovative green products (e.g., Electrolux’s new ‘Green Range’ of energy and material efficient appliances, GEMI 2001). Finally, we observe that environmental audits and separate environmental reports have become di rigeur for environmentally responsible firms these days. Therefore, communicating continuous improvements in energy efficiencies provides a sound means for firms to demonstrate their environmental commitment.

Environmental Orientation ‘Environmental orientation is the recognition by managers of the importance of environmental issues facing their firms’ (Banerjee, Iyer, and Kashyap, 2003 p. 106). An environmental orientation consists of values and norms that undergird a firm’s environmental responsibility. This expression of firm internal values regarding environmental commitment is an important dimension of corporate environmental responsibility. Environmental orientation is the element of firm culture that signifies the importance and precedence given to environmental issues. Environmentally sensitive cultures are an essential antecedent to improved environmental performance (Judge and Elenkov, 2004). Firms that recognize the importance of minimizing environmental impacts often describe their orientation through comprehensive environmental mission statements. These contain value expressive terms such as respect, care, responsibility and concern for the environment (Banerjee, 1998). Environmental mission statements reflect corporate values and provide guidance to managers and employees (Bansal and Roth, 2000). Environmentally oriented firms sensitize their employees to environmental concerns. Environmental preservation is given precedence and often framed as a central corporate value

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Rajiv K. Kashyap, Easwar S. Iyer and Bobby ‘Subhabrata’ Bannerjee

in firms that are highly committed to the environment (Banerjee, 1998). Such prioritization may occur through environmental norms that guide employee decisions regarding environmental issues. These norms are useful when employees are required to make tradeoffs to favor the environmental cause. In environmentally oriented firms, senior management often spearheads the company’s environmental efforts (Magretta, 1997; Coddington, 1993). In summary, an environmental orientation results in the strategic alignment of resources to improve environmental performance. An environmental orientation sets the stage for the design and implementation of internal environmental marketing programs. These programs serve to translate an environmental orientation into policies that shape employee behavior. For instance, in environmentally oriented firms, managers support employee efforts to develop environmental innovations and skills to deal with environmental problems (Ramus, 2001). Therefore, we hypothesize that H1: Environmental orientation influences internal marketing programs.

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Environmental Strategy Environmental strategy refers to firm efforts to incorporate environmental issues into the strategic planning process (Banerjee, Iyer, and Kashyap, 2003). Environmentally responsible firms link environmental strategies and objectives with corporate objectives. Such firms are more likely to utilize processes and technologies that protect the environment. Integration is a key issue in environmentally responsible firms and environmental concerns are not treated as ex-post issues after corporate strategic plans are made; rather these ex-ante concerns are integrated within the corporate strategic planning process. Recognition of the importance of environmental protection permeates policy relating to various business functions such as purchasing (Drumwright, 1994), product design (Hart, 1995), advertising and promotions (Drumwright, 1996; Zinkhan and Carlson, 1995), and business reporting (Solomon and Lewis, 2002). Such integration addresses the common critique, i.e., ‘greenwashing,’ often leveled at corporate environmentalism (Entine, 1995; Laufer, 2003). Environmental strategy is demonstrated by the explicit consideration of the environmental impacts of the firm’s products and processes. Environmental strategy may be motivated by different factors depending upon type of sector. For instance, Banerjee, Iyer and Kashyap (2003) found that public concern had a strong influence in high environmental impact industries while the need for competitive advantage was a strong driver in medium environmental impact industries. In addition, Klassen and Whybark (1999) have found that environmentally responsible firms make efforts to stay abreast of environmental technologies innovations. We observe that simply recognizing the importance of environmental protection is not sufficient to guarantee good environmental performance. Such awareness needs to be supplemented by an environmental strategy that provides managers and employees with the responsibility and ability to discharge their environmental strategy related duties. Environmental strategy may be manifest in a variety of ways including greater R and D investments in environmental areas, environmental benchmarking, Environmental Management System (EMS), Total Quality Environmental Management (TQEM), and green product development.

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Environmental strategy provides managers with direction and environmental goals that are achieved through changes in environmental technologies and business processes. Greater managerial attention to choice of technologies and processes results in superior environmental performance (Klassen and Whybark, 1999). Business processes complement the environmental technologies used to achieve environmental goals. For instance, DuPont developed a website to explain the benefits and cost savings of their ‘Green Range’ of energy saving products to consumers (GEMI 2001). In addition, environmental businesses processes are direct outcomes of strategic initiatives to achieve environmental goals. Therefore, H2: Environmental strategy influences environmental technologies and business processes.

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INDIVIDUAL ENVIRONMENTAL RESPONSIBILITY Individual environmental responsibility gives precedence to environmental protection. Individuals modify behaviors to minimize the environmental consequences of their actions and, in that sense, individual environmental responsibility is more proactive in nature. Our conceptualization builds upon Henion’s definition of the ecologically concerned consumer (1976)3 with one important difference. Whereas ecological concern is more passive and reactive in nature, individual environmental responsibility is more proactive. Thus, individual environmental responsibility places the onus for protecting the environment squarely on the individual. Individual environmental responsibility encompasses values, beliefs, knowledge, and attitudes, as well as actions aimed to preserve the natural environment. A high degree of environmental responsibility is correlated with an ecological orientation and protective attitudes towards the environment. Among such individuals, environmental values are likely to be ‘protected’ (Ritov and Baron, 1999), so that behaviors that entail environmental degradation are considered particularly abhorrent. Environmentally responsible individuals also actively seek new information about the environment and often champion conservation efforts. Individuals that accord high importance to the environment are positively biased towards environmental causes (e.g., wildlife protection, energy conservation) and firms that they consider environmentally friendly. Individuals that exhibit low levels of environmental responsibility are indifferent to environmental causes. They consider environmental protection to be somebody else’s responsibility and give no importance to environmental attributes in their purchase considerations. They are unlikely to participate in recycling programs unless persuaded by disincentives. Consistent with the definition of the firm level construct of corporate environmental responsibility (Banerjee, Iyer, and Kashyap, 2003), we consider individual awareness of environmental issues (i.e., cognition), preference for environmental entities (i.e., affect) and

3

Henion (1976) defined an ecologically concerned consumer as one ‘whose values, attitudes, intentions, or behaviors exhibit and reflect a relatively consistent and conscious concern for the environmental consequences related to the purchase, ownership, use, or disposal of particular products or services.’

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Rajiv K. Kashyap, Easwar S. Iyer and Bobby ‘Subhabrata’ Bannerjee

environmentally responsible behavior (i.e., conation) to be equally important4. Some individuals may recognize the importance of environmental issues but desist from changing their behavior, while others may adopt pro-environmental strategies without recognizing the full consequences of their actions. Both types of individuals would be rated lower on our measure of individual environmental responsibility as compared to those that declare their environmental responsibility and also behave accordingly. Next, we discuss three dimensions of individual environmental responsibility: 1) environmentally responsible behaviors, 2) environmentally responsible scripts, and 3) environmental values.

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Environmentally Responsible Behavior Environmentally Responsible Behavior (ERB hereafter) is conduct aimed at minimizing the negative impact of human consumption upon the environment. ERBs include a wide variety of activities such as consuming green products, recycling waste materials, boycotting environmentally irresponsible companies, volunteering time, money, and effort to environmental programs, and advocating environmental causes. Research indicates that ERBs have multiple antecedents and ‘…specific behaviors may have distinctly different patterns of initiation’ (De Young, 2000). This multiplicity arises as much from the variation in types of behaviors (e.g., consumer activism versus purchase of environmentally friendly products) as from the diversity of intra (e.g., preferences for public versus private ERBs) and interpersonal influences (e.g., attitudes versus peer norms). Antecedents to ERBs may be broadly classified as individual and contextual. In addition to socio-demographic characteristics (see Diamantopoulos, Schlegelmilch, Sinkovics and Bohlen, 2003 for a review), individual differences in ERBs have been attributed to environmental values (Verplanken and Holland, 2002), perceived efficacy (Kinnear, Taylor and Ahmed, 1974; Roberts and Bacon, 1997), value orientations (McCarty and Shrum, 2001), and environmental attitudes (Biswas, Licata, McKee, Pullig, and Daughtridge, 2000). All of these underscore the importance of intrinsic motivation as an antecedent to ERB. In addition, knowledge (Ellen, 1994) has been shown to predict individual propensity to engage in pro-social behaviors. While early research studied the role of (dis)incentives, more recent work has focused on norms that activate (social and biospheric) altruism and egoism, self-concept, and social justice to explain ERBs (see special issue on environmental issues in the Journal of Social Issues October 2000). In this study, we limit our attention to an important and common ERB that is performed both in public and private spheres, namely recycling. Recycling behavior is a good exemplar of an ERB; it reflects the responsibility perceived towards the environment and varies widely among individuals (RoperASW, 2002). Previous studies have found that individual characteristics such as values (Verplanken and Holland, 2002) and attitudes (Laroche, Tomiuk, Bergeron and Barbaro-Forleo, 2002), and group influences such as cultures (McCarty and Shrum, 2001) play significant roles in explaining recycling behavior. Research to determine effective intervention strategies has found that economic agents (e.g., monetary incentives such as raffles, lotteries, fines), and socio-cultural influences (e.g., psychological reinforcement) are successful in stimulating recycling behavior 4

To facilitate exposition of our hypotheses, here again we discuss environmental behavior, followed by environmental scripts before concluding with environmental values.

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(Diamond and Lowey, 1991; Vining and Ebreo, 1992). In addition, theorists have offered altruism as an explanation for differences in recycling participation rates (Hopper and Nielsen, 1991). Specifically, altruism is posited to motivate ERBs when individuals recognize the negative impacts of their own behavior upon others. Research has shown that what people think others want them to do (i.e., injunctive norms, Minton and Rose, 1997; Vining and Ebreo, 1990) and adoption of such behaviors among peers (Nyborg, 2003) can significantly predict recycling behavior. In summary, recycling behavior has multiple antecedents and is better explained with integrated models that incorporate multiple influences (Davies, Foxall, and Pallister, 2002).

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Environmentally Responsible Scripts To help better understand ERBs, we propose that individuals form mental scripts that facilitate the translation of their responsibility into behaviors. A script is a specific type of knowledge structure that guides individual behavior (Abelson, 1976). We define an environmentally responsible script as a procedural schema that guides a person’s environmentally responsible behaviors. These knowledge structures are created and maintained by individuals for the purpose of dealing with repetitive events (Schank and Abelson, 1977). Environmentally responsible scripts are like ‘knowledge drawers’ where individuals store and organize information regarding environmental issues (e.g., biodegradable packaging). When a particular issue is encountered, the relevant information is retrieved to make decisions. For instance, consumers may have some concern for the environment but may not end up buying the products that support their concern until they develop scripts that require them to read product labels. Individuals employ scripts to reduce cognitive effort by lowering the burden of interpreting cues. In this study, we limited our examination of individual environmental responsibility to one specific type of script of great interest to marketers, namely a purchase and consumption script. Purchase and consumption scripts guide individual purchase and consumption behavior. They include knowledge about the environmental impacts of product consumption and package disposal. In addition, a script may improve individual ability to decode product labels (e.g., is this truly biodegradable?) and recycle wastes generated through consumption (e.g., how to dispose of toner cartridges). Knowledge of corporate environmental practices (or lack thereof) helps individuals develop ‘screens’ to form preferences and exclude irresponsible companies from their consideration sets. In other words, environmentally responsible purchase and consumption scripts serve as ‘action’ guides to help individuals minimize the effects of their purchases and consumption on the environment. Interest in deconsumption (i.e. consuming less) has grown steadily over the years (see Arnould, Price, and Zinkhan, 2003, chapter 19 for some examples). A purchase and consumption script is an intermediate process that antecedes purchases of environmentally friendly products and their disposal. It helps individuals decide if, when, where, and how wastes should be recycled. Therefore, we hypothesize that: H3: Purchase and consumption script influences recycling behavior.

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Rajiv K. Kashyap, Easwar S. Iyer and Bobby ‘Subhabrata’ Bannerjee

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ENVIRONMENTAL VALUES Values are fundamental beliefs (Rokeach, 1973) or principles that serve to guide human behavior. Values help individuals decide upon the desirability of behaviors and outcomes (Arnould, Price, and Zinkhan 2004, p.146). We define environmental values as principled beliefs about the interaction between individuals and the natural environment. Previous research has revealed significant associations between environmental values and environmentally responsible behaviors such as purchasing environmentally responsible products (Follows and Jobber 2000), buying from food cooperatives (Fjeld, Schutz, and Sommer, 1984), and recycling (Bagozzi and Dhabolkar, 1994). Environmental values provide the normative impetus for behaviors aimed at improving the common good such as recycling (Schwartz, 1994; LaRoche et al 2002). LaRoche et al (2002) argue that since the rewards of recycling are not highly visible, recycling behavior must perforce be driven by strong environmental values. In addition, recycling behavior helps environmentally responsible individuals minimize the impacts of their consumption upon the environment. Values have also been described as desirable goals (Schwartz and Howard1994) that serve to guide behavior. Using a means-end chain analysis, Bagozzi and Dhabolkar (1994) found that reduction of trash, pollution, and avoiding landfills were prominent goals for recyclers. Individuals use environmental values as criteria to evaluate environmental behaviors and goals. Environmental values include sustainability, conservation, respect for all forms of life, and concern for land, among others. For instance, sustainability concerns could motivate individuals to protest the destruction of tropical rainforests and disapprove of gas guzzling SUVs. In addition, conservationists might show their respect for the natural environment by supporting environmental charities and NGOs. Support for wildlife and endangered species might spring from an innate respect for all living beings. Finally, one could argue that a deep concern for land health drives deconsumption and environmentally responsible purchasing behavior. For instance, a recent study (Follows and Jobber, 2000) found a strong influence of values on the purchase of environmentally friendly products. Therefore, we expect that: H4a: Environmental values influence recycling behavior. H4b: Environmental values influence purchase and consumption script.

Linking Corporate Environmental Responsibility and Individual Environmental Responsibility Thus far, we have discussed corporate and individual responsibility separately; we draw these together in a comprehensive framework (see Figure 1) and posit linkages between the various dimensions of corporate and individual environmental responsibility. We begin by describing the relationship between an environmental orientation and environmental values. This is followed by a discussion that connects internal environmental marketing programs and environmental technologies and business processes with purchase and consumption scripts and recycling behavior.

Relationship between Corporate and Individual Environmental Responsibility

11

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Figure 1. A Conceptual Framework of Corporate and Individual Environmental Responsibility.

An environmental orientation persuades employees to internalize the firm’s environmental values. An environmental orientation is the outcome of a number of strategies including hiring the right people, communicating environmental values, providing environmental norms, and developing special programs. Often, value alignment begins with selection and recruitment. Employees self-select companies that embrace similar values (Cable and Judge, 1996; 2002 Cone Corporate Citizenship Study). Further, companies expend considerable effort to recruit applicants that share values similar to their own (Cable and Judge, 1997). Developing and maintaining a communications system that emphasizes these values is another important step towards achieving value congruence (Argandona, 2003). This is accomplished by rituals and ceremonies (e.g., contests to reward environmental innovations like WRAP) and stories and metaphors that define the firm’s image (e.g., BP’s Beyond Petroleum). In addition to proper communication, habit and tradition are important forces that compel employees to internalize corporate environmental values. Habitual behavior precludes the necessity to engage in deliberative decision processes and shapes employee attitudes. Cordano and Frieze (2000) found that past organizational pollution source reduction activities had a significant influence on environmental managers’ attitudes towards pollution prevention. This underscores the importance of organizational norms and an environmentally sensitive culture (Fernandez and Ordiz, 2003). Individual environmental values are shaped by exposure to supervisory and peer expectations. For instance, supervisory support was found to be essential for the development of employee-driven environmental solutions (Ramus, 2001). Finally, employees learn to appreciate environmental values through training and development and special programs. For example, in keeping with its environmental mission, Timberland encourages its employees to apply for a paid 10 day science expedition with the Earthwatch Institute. In summary, we expect that a firm’s environmental orientation will drive employees’ environmental values as stated in this hypothesis: H5: Environmental orientation influences environmental values. Script formation is a highly cognitive process that is based upon the recognition of the consequences of one’s actions. By providing forums for the discussion of environmental issues, internal environmental marketing programs elevate the importance of minimizing environmental impacts. Script formation does not occur in social isolation; it is influenced by interactions with other individuals engaged in the same tasks (Drazin, Glynn, and Kazanjian, 1999). In other words, scripts are often formed vicariously through imitation of peer behavior. Script formation is facilitated by increased peer interactions and influence when employees

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Rajiv K. Kashyap, Easwar S. Iyer and Bobby ‘Subhabrata’ Bannerjee

work in cross functional teams to improve environmental performance. Further, participation in special training programs provides them with unique environmental problem solving skills. These types of internal marketing efforts provide employees with the necessary knowledge and skills to develop environmental solutions. Environmental technologies and business processes engage employees in duties that significantly raise their environmental awareness. We expect that the heightened importance of environmental issues in the workplace increases employees’ appreciation of the need for environmental protection. For instance, employees involved in environmental audits learn to apply environmental standards to evaluate operational performance. This knowledge is transferred to their purchase and consumption scripts. In addition, participation in environmental programs increases propensity and ability to discriminate between products with high and low environmental impacts (Berger and Kanetkar, 1995). Berger and Kanetkar’s study (1995) underlined the moderating role of direct experience, suggesting that environmentally relevant experiences can influence consumer choice. Therefore, we hypothesize that

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H6a: Internal marketing programs influence purchase and consumption script. H6b: Environmental technologies and business processes influence purchase and consumption script. While most past research on ERB among individuals has emphasized the importance of intrinsic motivation (cognition affect conation), there may be another equally effective approach for increasing ERBs (conation affect cognition). Internal marketing programs condition employees through mandated recycling programs in environmentally responsible companies. Recycling behavior is also conditioned through workplace initiatives that require the use of recycled paper and substitution of existing products with recyclable alternatives (Bansal and Roth 2000). In addition to conditioning, recycling behavior may be stimulated through social pressures in the workplace. Previous research has found that social norms and peer pressure play a significant role in explaining recycling behavior (Minton and Rose, 1997; Vining and Ebreo, 1990). Through socialization processes, firms teach employees acceptable attitudes and behaviors regarding environmental issues. Therefore, employee motivation to recycle is also influenced by environmental norms (Hines, Hungerford, and Tomera, 1987) and recycling practices in the workplace. Whereas environmental norms provide informal expectations to guide employee behavior, environmental policy statements shape conduct by setting formal environmental goals. Such goals and objectives are embedded within environmental technologies and business processes. They sensitize employees to the value of recycled materials in packaging and manufacturing operations. Further, direct experience with recycling and energy conservation processes increases individual propensity to translate motivation for environmental protection into behavior (Thogersen, 2002). This suggests transference of workplace to home based recycling behaviors. Hence, we expect that H7a: Internal marketing programs influence recycling behavior. H7b: Environmental technologies and business processes influence recycling behavior.

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EMPIRICAL STUDY Data Collection The American Marketing Association’s directory listing of names, titles, and addresses of managers was used as the sampling frame. A systematic random sampling method was used to draw a sample of 944 managers from this directory. The self administered questionnaire was sent to managers responsible for environmental issues in firms. A sample of job titles includes Director, Environmental Affairs, Environmental Manager, and Executive Director, Environmental Health and Safety. This assured us that our respondents were key informants in their firms. In addition, respondents represented a variety of industries including manufacturing, utilities, pharmaceuticals, financial and insurance services, and consumer products. This suggests that the findings are generalizable. A total of 42 responses were returned due to address changes and another 32 were incomplete, giving us 888 successful contacts. Altogether, we received 273 responses (30.7% response rate). We checked for non response bias by randomly selecting and contacting 10% of nonrespondents by telephone. We found no differences between firms on characteristics such as sales, number of employees, industry type, etc.

Measurement

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We used seven-point, Likert type reflective scales to measure environmental orientation, environmental strategy, environmental values, purchase and consumption script, and recycling behavior. Descriptive statistics for all constructs including means, variances, and correlations are provided in Table I. Table I. Descriptive Statistics and Correlations between Measures of Corporate and Individual Environmental Responsibility (n=273) EO 1.00

ES

EO

IMP

ETBP

EV

PCS

RB

ES

0.79

1.00

IMP

0.50

0.41

1.00

ETBP

0.56

0.61

0.44

1.00

EV

0.17

0.18

0.05

0.11

1.00

PCS

0.20

0.19

0.11

0.19

0.54

1.00

RB

0.07

0.01

0.13

0.13

0.14

0.21

1.00

Mean Variance

17.17 39.99

21.28 60.03

2.39 1.08

1.73 1.89

14.87 12.66

11.56 17.41

22.51 47.16

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Rajiv K. Kashyap, Easwar S. Iyer and Bobby ‘Subhabrata’ Bannerjee

Each reflective scale was subjected to a purification process including an initial reliability analysis, followed by a confirmatory factor analysis. The composition of each reflective scale is discussed below and scale items are contained in Appendix 1. We used previously designed and tested scales (Banerjee, Iyer, and Kashyap, 2003) to measure environmental orientation (EO) and environmental strategy (ES). First, environmental orientation was measured with a six item scale (of which two were dropped due to poor reliabilities) that tapped subject perceptions of the importance accorded to environmental issues in the firm. Second, environmental strategy was measured with a scale consisting of seven items that tapped respondent perceptions of the extent to which environmental issues had been incorporated into the firm’s strategic planning process. In the final analysis, two items were dropped from this scale due to poor factor loadings and low item-to-total correlations. Previous research indicates that environmental values (EV) are at the core of environmentally responsible behavior (Bagozzi and Dhabolkar, 1994; MCarty and Shrum, 1994). We used a six-item scale consisting of value-expressive statements to measure this construct. These items tapped individual perceptions of their connectedness and their concern for the environment. Of these, two items were dropped initially due to low item-to-total correlations and one subsequently due to a poor loading in a confirmatory factor analysis. A three-item scale that asked individuals whether they read product labels to evaluate environmental safety, preferred recyclable packaged products, and avoided environmentally irresponsible companies was used to measure the purchase and consumption script (PCS) . Recycling behavior (RB) was measured using a self report of the frequency of recycling glass, paper, cardboard, plastic and cans. Of these cardboard was dropped due to a low factor loading in the CFA analysis. Internal Marketing Programs (IMP) and Environmental Technologies and Business Processes (ETBP) were measured using formative scales. The scales were developed in accordance with recommended procedures for formative scale construction as follows. First, we used past research (e.g., Ramus, 2001) to describe and elaborate the domains of the constructs. In all, 14 items were initially generated for the environmental programs scale and 12 items for the technologies and business processes scale. These items were then independently shown to three experts and the list was paired down to six items and eight items respectively through mutual discussion. The internal marketing program scale contained questions about company initiatives aimed specifically at employees including recycling programs, newsletters, special environmental training programs, and so forth. The second scale consisted of eight items that related to technologies and business processes including use of recycled content, environmental audits, green marketing, environmental standards for suppliers, and so on. We employed a Guttman scaling procedure to identify items to be included in the formative scales. Conforming to the recommended value of 0.90 for the coefficient of reproducibility (Blalock,1968) would have meant retaining only three items in each scale. However, we felt that these items did not adequately cover the domains of the constructs. Therefore, one additional item was added to each scale and the two four- item scales were subsequently validated using MIMIC models with two reflective indicators for each scale (Diamantopoulos and Winklhofer, 2001). The composition of each scale and results of the MIMIC analysis are contained in Appendix 2.

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15

Reliability and Validity Analysis The reliability and validity of measures were established with a confirmatory factor analysis (see Table II). We eliminated items with standardized loadings lower than 0.6 (Hartline, Maxham, and McKee, 2000) and the resulting CFA model had a good fit (χ2 = 201.55, 142 df, p .95 GFI > .9 AGFI > .9

Bentler, 1990, 1992, 1995 Hu and Bentler, 1999 Hu and Bentler, 1999

TRA model 0.98 0.95 0.93

NFI > .9 NNFI > .9

Bentler and Bonnet, 1980 Bentler and Bonnet, 1980

0.93 0.97

CN > 200

333.37

root mean square error of approximation (RMSEA)

RMSEA < .05

Byrne, 1998 Hoelter, 1983 Hu and Bentler, 1999 Browne and Cudeck, 1993 Hu and Bentler, 1999 McDonald and Ho, 2002 Steiger, 1990

0.038

The TRA results (depicted in Figure 2) show that all the paths reached statistical significance, apart from the link between social influence and behavioral intention. The results confirm the findings of the earlier work, showing correlations between all but one of the key variables. The findings supported hypotheses H1, H2, H3 and H4, but not H5. The tvalue of a parameter indicates the strength of the relationship the parameter represents. The higher the t-value is, the stronger the relationship is. Only the link between social influence and behavioral intention was not significant (t = 1.16), but social influences strongly impact attitude (t = 2.05), revealing that social influences affected behavioral intention only indirectly. Therefore, users did not react to behavior without considering their own thoughts and opinions. These results confirm those of previous studies that the effect of attitudes on behavioral intention is stronger than that of social influences on behavioral intention (Gentry and Calantone, 2002; Oliver and Bearden, 1985; Ryan and Bonfield, 1980). The analytical

Mobile Learning

221

results also show that the strength of family members (t = 15.30), friends (t = 17.50) and experts (t = 14.30) strongly affected M-learning users (Oliver and Bearden, 1985; Ryan, 1982; Ryan and Bonfield, 1980). Social influences clearly play a crucial effect on user behavior.

Note: The figure shown in the edge connecting any two nodes represents the number of unit increase in the dependent variable if the causing variable increases by one unit. R2 represents the proportion of the variance of the variable that could be explained by its causing variables. biei= behavioral beliefs and outcome evaluations, nbjmcj= normative beliefs and motivation to comply, SI= social influence, ATT= attitude, BI= behavioral intention.

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Figure 2. Path coefficients of TRA model.

This study proposes a modified model to understand customers’ behavior of M-learning, namely the theory of reasoned action model. TRA provides a very strong foundation for studying user acceptance. Most users who encounter the emerging M-learning technology believe that it would enhance learning performance and convenience. Unfortunately, however, the M-learning technology has not been widely investigated from the customer’s point of view. This study examined the suitability of this social psychological theory for predicting personal behavior in M-learning. This investigation also observed factors that affect users’ thoughts and individual differences were addressed from customer perspectives. The structures of the model were consistent with prior research. Analytical results show that the proposed model successfully predicted user acceptance of M-learning. Furthermore, three social influences, namely family members, friends and experts, are the key determinants of users’ attitudes.

CONCLUSION This work proposes and verifies that TRA can be employed to explain and predict the acceptance of M-learning. Research about M-learning has focused on the technological evolution, but this work is the first to study customer acceptance in depth. The findings of this study have several implications for M-learning providers and researchers interested in Mlearning. First, the theory of reasoned action model needs to be run to determine customers’ opinions of new technology. As researchers noted, the theory of reasoned action model is good at predicting user behavior. The theory of reasoned action model enables researchers to

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measure the effect of social influences. In the study, the theory of reasoned action model exhibited the good fit of user perception of M-learning. Second, this study found that the opinions of family members, friends and experts are key determinants of user perception of M-learning. The predictive power of the three added constructs shows that the new social influences are imperative. These relevant people’ positive attitudes toward M-learning enhance user acceptance. The result indicates that service providers would promote Mlearning, and create opportunities for customers to chat with these relevant persons, enabling positive opinions of M-learning to spread rapidly by word of mouth. Further research is needed to examine the role of additional influences within the theoretical structure. As other new technologies become available for digital libraries and museums, TRA can be employed to predict and to explain the acceptance of the new technologies. When applying TRA in another context, the external social influences for that context have to be found and examined carefully to ensure that TRA is a viable model for that context. Furthermore, the subjects of this study are students, who are relatively homogeneous as compared with the general population. Population in general may vary substantially in terms of their acceptance of a new technology. For example, the adolescents’ perception, interest and attitude toward M-learning would be different from those of elderly. TRA can be employed to compare the differences as well as the similarities of accepting a technology among various groups of populations.

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REFERENCES Ajzen, I. and Fishbein, M. (1980) Understanding Attitudes and Predicting Social Behavior. Prentice-Hall, Englewood Cliffs, NJ. Alexander, B. (2004). Going nomadic: Mobile learning in higher education. EDUCAUSE Review, Vol. 39, No. 5, 29-35. Bagozzi, R.P., Baumgartner, H. and Yi, Y. (1992). State versus action orientation and the theory of reasoned action: an application to coupon usage. Journal of Consumer Research, Vol. 18, No. 4, 505-518. Bentler, P. M. (1990). Comparative fit indexes in structural models. Psychological Bulletin, Vol. 107, No. 2, 238-246. Bentler, P. M. (1992). On the fit of models to covariances and methodology to the bulletin. Psychological Bulletin, Vol. 112, No. 3, 400-404. Bentler, P. M. (1995) EQS Structural Equations Program Manual. Encino, CA: Multivariate Software, Prentice-Hall, Englewood Cliffs, NJ. Bentler, P.M. and Bonnet, D.G. (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, Vol. 88, No. 3, 588-606. Browne, M.W. and Cudeck, R. (1993). Alternative ways of assessing model fit. In K. A. Bollen and J. S. Long (Eds.), Testing structural equation models. Newbury Park, CA: Sage. Chang, M.K. (1998). Predicting unethical behavior: a comparison of the theory of reasoned action and the theory of planned behavior. Journal of Business Ethics, Vol. 17, No. 16, 1825-1834.

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Chang, C.Y., Sheu, J.P. and Chan, T.W. (2003). Concept and design of Ad Hoc and Mobile classrooms. Journal of Computer Assisted Learning, Vol. 19, No. 3, 336-346. Chen, Y.S., Kao, T.C. and Sheu, J.P. (2003). A mobile learning system for scaffolding bird watching learning. Journal of Computer Assisted Learning, Vol. 19, No. 3, 347-359. Choo, H.J., Chung, J.E. and Psysarchik, D.T. (2004). Antecedents to new food product purchasing behavior among innovator groups in India. European Journal of Marketing, Vol. 38, No. 5/6, 608-625. Clyde, L.A. (2004). M-learning. Teacher Librarian, Vol. 32, No. 1, 45-46. Compeau, D.R. and Higgins, C.A. (1995). Computer self-efficacy: development of a measure and initial test , MIS Quarterly. Vol. 19, No. 2, 189-211. Compeau, D.R., Higgins, C.A. and Huff, S. (1999). Social cognitive theory and individual reactions to computing technology: a longitudinal study. MIS Quarterly, Vol. 23, No. 2, 145-158. Davis, F.D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, Vol. 13, No. 3, 319-340. Davis, F.D. (1993). User acceptance of information technology: system characteristics, user perceptions and behavioral impacts. International Journal of Man-Machine Studies, Vol. 38, No. 3, 475-487. Fishbein, M. and Ajzen, I. (1975) Beliefs, Attitudes, Intention, and Behavior: An Introduction of Theory and Research. Addison Wesley Publishing, Reading, MA. Gay, G., Stefanone, M., Grace-Martin, M. and Hembrooke, H. (2001). The effects of wireless computing in collaborative learning. International Journal of Human-Computer Interaction, Vol. 13, No. 2, 257-276. Gentry, L. and Calantone, R. (2002). A comparison of three models to explain shop-bot use on the web. Psychology and Marketing, Vol. 19, No. 11, 945-956. Gillmore, M.R., Archibald, M.E., Morrison, D.M., Wilsdon, A., Wells, E.A., Hoppe, M.J., Nahom, D. and Murowchick, E. (2002). Teen sexual behavior: applicability of the theory of reasoned action’, Journal of Marriage and Family, Vol. 64, No. 4, 885-897. Goh, T. and Kinshuk (2004). Getting Ready For Mobile Learning, Paper presented at the Proceedings of ED-MEDIA 2004 - World Conference on Educational Multimedia, Hypermedia and Telecommunications, Lugano, Switzerland, June 21-26, 56-63. Hansen, T., Jensen, J.M. and Solgaard, H.S. (2004). Predicting online grocery buying intention: a comparison of the theory of reasoned action and the theory of planned behavior. International Journal of Information Management, Vol. 24, No. 6, 539-550. Hill, T., Smith, N.D. and Mann, M.F. (1987). Role of efficacy expectations in predicting the decision to use advanced technologies: the case of computers. Journal of Applied Psychology, Vol. 72, No. 2, 307-313. Hill, T.R., Roldan, M. (2005). Toward third generation threaded discussions for mobile learning: opportunities and challenges for ubiquitous collaborative environments. Information Systems Frontiers, Vol. 7, No. 1, 55-70. Hoelter, J. W. (1983). The analysis of covariance structures: goodness-of-fit indices. Sociological Methods and Research, Vol. 11, 325-344. Hu, L. and Bentler, P.M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives. Structural Equation Modeling, Vol. 6, No. 1, 1-55.

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Jöreskog, K.G. and Sörbom, D. (1993) LISREL 8: Structural Equation Modeling with the SIMPLIS Command Language. Scientific Software International, Inc. Kelloway, E. K. (1998). Using LISREL for structural equation modeling: a researcher’s guide. SAGE Publications, Inc. Thousand Oaks, California. Kleijnen, M., Wetzels, M., de Ruyter, K. (2004). Consumer acceptance of wireless finance. Journal of Financial Services Marketing, Vol. 8, No. 3, 206-217. Liu, T.C., Wang, H.Y., Liang, J.K., Chan, T.W., Ko, H.W. and Yang, J.C. (2003). Wireless and mobile technologies to enhance teaching and learning. Journal of Computer Assisted Learning, Vol. 19, No. 3, 371-382. Madden, T.J., Ellen, P.S. and Ajzen, I. (1992). A comparison of the theory of planned behavior and the theory of reasoned action. Personality and Social Psychology Bulletin, Vol. 18, No. 1, 3-9. McDonald, R.P. and Ho, M.R. (2002). Principles and practice in reporting structural equation analysis. Psychological Method, Vol. 7, 64-82. Miniard, P.W. and Cohen, J.B. (1983). Modeling personal and normative influences on behavior. Journal of Consumer Research, Vol. 10, No. 2, 169-180. Oliver, R.L. and Bearden, W.O. (1985). Crossover effects in the theory of reasoned action: a moderating influence attempt. Journal of Consumer Research, Vol. 12, No. 3, 324-340. Rajiv, N.R., Kevin, R. (2003). Understanding the influence of perceived norms on behaviors. Communication Theory, Vol. 13, No. 2, 184-203. Randall, D.M. (1989). Taking stock: can the theory of reasoned action explain unethical conduct? Journal of Business Ethics, Vol. 8, No. 11, 873-882. Roschelle, J. (2003). Keynote paper: unlocking the learning value of wireless mobile devices. Journal of Computer Assisted Learning, Vol. 19, No. 3, 260-272. Ryan, M.J. (1982). Behavioral intention formation: the interdependency of attitudinal and social influence variables. Journal of Consumer Research, Vol. 9, No. 3, 263-278. Ryan, M.J. and Bonfield, E.H. (1975). The Fishbein extended model and consumer behavior. Journal of Consumer Research, Vol. 2, No. 2, 118-136. Ryan, M.J. and Bonfield, E.H. (1980). Fishbein’s intentions model: a test of external and pragmatic validity. Journal of Marketing, Vol. 44, 82-95. Sheppard, B.H., Hartwick, J. and Warshaw, P.R., (1988). The theory of reasoned action: a meta analysis of past research with recommendations for modifications and future research. Journal of Consumer Research, Vol. 15, No. 3, 325-343. Shih, Y.Y. and Fang, K. (2004). The use of a decomposed theory of planned behavior to study Internet banking in Taiwan. Internet Research, Vol. 14, No. 3, 213-223. Shimp, T.A. and Kavas, A. (1984). The theory of reasoned action applied to coupon usage. Journal of Consumer Research. Vol.11, No.3, 795-809. Steiger, J. H. (1990). Structural model evaluation and modification: an interval estimation approach. Multivariate Behavioral Research, Vol. 25, No. 2, 173-180. Sutton, S., McVey, D. and Glanz, A. (1999). A comparative test of the theory of reasoned action and the theory of planned behavior in the prediction of condom use intentions in a national sample of English young people. Health Psychology, Vol. 18, No. 1, 72-81. Tan, T.H., and Liu, T.Y. (2004). The MObile-Based Interactive Learnng Environment (MOBILE) and A Case Study for Assisting Elementary School English Learning. In Proceedings of the IEEE International Conference on Advanced Learning Technologies (ICALT 2004).

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Taylor, J. (2003) A task-centered approach to evaluating a mobile learning environment for pedagogical soundness. London. Uden, L. (2007). Activity theory for designing mobile learning. Int. J. Mobile Learning and Organisation, Vol. 1, No. 1, 81–102. Wagner, E.D. (2005). Enabling mobile learning. EDUCAUSE Review, Vol. 40, No. 3, 41-52. Wu, I.L. (2003). Understanding senior management’s behavior in promoting the strategic role of IT in process reengineering: use of the theory of reasoned action. Information and Management, Vol. 41, No. 1, 1-11. Zurita, G. and Nussbaumw, M. (2004). A constructivist mobile learning environment supported by a wireless handheld network. Journal of Computer Assisted Learning, Vol. 20, No. 4, 235-243.

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In: Consumer Behavior Editor: Felix Saito

ISBN 978-1-60692-394-8 © 2009 Nova Science Publishers, Inc.

Short Communication B

COST-BENEFIT-ASSOCIATIONS: A POWERFUL BUT UNDERSTUDIED CONSTRUCT Bernadette Kamleitner Departamnet of Business and Management, Qween Mary Univ., London

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ABSTRACT This chapter reviews literature related to the emerging concept of cost-benefitassociations. Cost-benefit-associations are the degree to which thoughts of costs evoke thoughts of benefits and vice versa. Strong reciprocal associations between costs and benefits have been implicitly assumed by various theories such as rational choice accounts. Despite this theoretical importance, cost-benefit-associations have rarely been addressed in the literature. Based on related streams of literature and preliminary evidence this chapter provides a theoretical framework for the phenomenon. The framework describes major determinants and consequences of differing degrees of costbenefit-associations and highlights their broad theoretical and practical relevance.

1. INTRODUCTION Sometimes, consuming makes people think of the cost and sometimes, paying makes people think of the benefits they are paying for. Not much is known about when and why these thoughts occur and what they effectuate. Nevertheless, the mental association of consumption and payment is often taken for granted. For example, phenomena like the sunk cost effect (e.g., Arkes and Blumer, 1985; He and Mittal, 2007)--the finding that past investments influence future spending decisions--are inherently based on the assumption that people mentally link costs and benefits. So called mental accounting effects also underline the importance of cost-benefit-associations: people tend to set budgets for product categories, so that spending within one category decreases the probability of further spending in that category (Heath and Soll, 1996). Again it is vital to track and associate costs and benefits. Without this association mental accounting effects should disappear. Moreover, awareness and linkage of costs and benefits are immanent assumptions of theories assuming rational

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behavior. The very concepts of maximization and rational choice assume that people compare different cost-benefit combinations and make trade-offs between costs and benefits. In order to make such trade-offs, costs and benefits need to be mentally associated. In case this assumption does not hold or in case the strength of the mental association varies, rational choice theories may be dealt another striking blow. This chapter systematically summarizes what is explicitly known and implicitly assumed about the simple but powerful phenomenon of cost-benefit-associations. It does so by introducing a theoretical framework that highlights possible causes and consequences of costbenefit-associations.

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2. COST-BENEFIT-ASSOCIATIONS – A THEORETICAL FRAMEWORK Literature explicitly dealing with cost-benefit-associations is scarce. Aside from several theories addressing these associations indirectly (for a review of those theories see Kamleitner and Hölzl, in press) there is, to the best of my knowledge, only one theory addressing them directly: the theory of prospective double-entry mental accounting (Prelec and Loewenstein, 1998). This theory describes “the reciprocal interactions between the pleasure of consumption and the pain of paying (Prelec and Loewenstein, 1998, p. 4)”. To do so it also models the degree and the direction of mental cost-benefit-associations. These associations are termed “coupling” and defined as the degree to which thoughts of payment arouse thoughts of consumption and vice versa. Accordingly, a distinction between different directions of association is made: from costs to benefits and from benefits to cost. Both directions of association can vary in strength and are not necessarily equally strong, although this is a common simplification in the literature (Prelec and Loewenstein, 1998; Soman and Gourville, 2001). Most research on the topic consists of theoretically sound speculation and cost-benefitassociations have rarely been assessed directly (for a recent exception see Kamleitner, Hoelzl, and Kirchler, 2008). Current thinking can be summarized in the framework depicted in Figure 1. This framework schematically depicts causes, patterns, and consequences of cost-benefitassociations. Figure 1 shows that the actual cost-benefit-association structure depends on a variety of interacting causes that may originate from the particular circumstances, a consumer’s personal characteristics, and/or motivated reasoning. The shaded area comprising these three different categories of causes signals that multiple interactions are conceivable. In turn, different patterns of cost-benefit-associations (depicted by stars) probably lead to several interacting consequences. The list of particular causes and consequences mentioned in the literature review is by no means exhaustive (for a more extensive review and an analysis of cost-benefit-associations in non-consumption contexts see Kamleitner and Hölzl, in press). Nevertheless, additional causes and consequences are likely to fit into the general framework provided. As becomes evident concrete association patterns are a crucial component of the framework. Yet, in particular this component has not elicited much research as direct measurement attempts of cost-benefit-associations are rare. One reason seems to lie in the lack of clarity on what strength of association actually means.

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Figure 1. A framework of cost-benefit-associations.

It might refer to the frequency with which an association is established, it might refer to the automaticity with which associations are established or to the intensity of associations. Most likely it would be a combination of all these aspects but the current state of knowledge makes it difficult to specify the multiplication term. Some preliminary studies focused on the automaticity with which costs evoke thoughts of benefits and vice versa. Although these studies were exclusively done in loan contexts it seems that similar transactions can lead to very different association patterns (Hoelzl, Pollai, and Kamleitner, 2007; Kamleitner et al., 2008). Furthermore, it seems that often the cost-to-benefit association might be systematically stronger than the benefit-to-cost association (Kamleitner et al., 2008; Kamleitner and Kirchler, 2006). This suggests that association is not necessarily equally strong in both directions. Nevertheless, the current state of knowledge mostly does not allow discussing different associative directions individually. Consequently, although with some exceptions, the generic term cost-benefit associations will be used throughout.

3. CAUSES OF COST-BENEFIT-ASSOCIATIONS Cost-benefit-associations can be a situational by-product, depend on personal characteristics, and be driven motivationally. All these causes are discussed in turn.

3.1. Situational Circumstances Situations might either directly (3.1.1) or indirectly (3.1.2) influence the degree of association between costs and benefits; the latter being due to different accessibility of costs and benefits.

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3.1.1. Causes that affect cost-benefit-associations directly Direct causes affect whether costs and benefits are somehow perceived as “belonging together”. The first such cause is temporal proximity. Outcomes occurring within a short period of time are particularly likely to be mentally integrated (e.g., Linville and Fischer, 1991; Thaler and Johnson, 1990). On reason is that temporal contiguity increases salience of events or objects which then facilitates their combination (Hirst, Joyce, and Schadewald, 1994). Another factor directly affecting association is the complexity of the cost-benefit relationship. The more benefits and/or payments there are and the more ambiguity to the cost of a particular consumption there is, the more difficult it becomes to associate single benefits with costs and vice versa (Prelec and Loewenstein, 1998). In particular, situations in which the relationship of costs and benefits is one-to-many or many-to-many (e.g., fixed-fees, bundled, or lump sum prices) are likely to hinder strong cost-benefit-associations. For example, credit card bills which include many posts make it difficult to mentally access the cost of single benefits (Soman, 2001; Srivastava and Raghubir, 2002). Causal or topical relatedness also directly influences cost-benefit-associations. Costs and benefits need to be perceived as belonging together in some way (Henderson and Peterson, 1992). It is particularly beneficial, if cost and benefits are perceived as causally related (Hirst et al., 1994). For example, one way to achieve relatedness is to provide easily adoptable topical or causal frames (e.g., external earmarking of money in Christmas clubs Prelec and Loewenstein, 1998). 3.1.2. Causes That Affect Cost-Benefit-Associations Indirectly Association can only occur for concepts that are salient and accessible. One factor influencing salience and mental accessibility of costs and benefits is time. Temporal distance reduces the perceived magnitude of events and hence their accessibility and “associability”. In the context of payment events, this phenomenon was called payment depreciation (Gourville and Soman, 1998; Soman and Lam, 2002; Thaler, 1985). Other factors influencing salience are related to the circumstances under which costs and benefits arise. In particular the method of payment has often been assumed to influence costbenefit-associations via its influence on cost salience (Prelec and Loewenstein, 1998). Specifically, payment transparency (Soman, 2003) , and other characteristics of payments, like rehearsal of the price paid and immediacy of wealth depletion, lead to differences in cost salience (Soman, 2001). For example, writing a check is more salient and will thus lead to stronger cost-benefit-associations than paying by credit card. In a related vein, absolute magnitude or importance are likely to influence accessibility and associability. Especially very small amounts may hinder cost-benefit-associations. If costs are too low to be mentally booked (Thaler, 1999), they can be categorized and perceived as zero (Ariely and Silva, 2002) and will, hence, not be associated to any benefit. An analogous process for consumption episodes is easily conceivable. For instance, Chandon and Wansink (2002) show that large quantities of products (stockpiling) increase product salience. Similarly different product categories may differ with regard to benefit salience (e.g., luxury goods are likely to deliver more salient benefits than convenience goods). In sum, there are various situational characteristics that might influence cost-benefitassociations. Mostly these characteristics will coexist and counteract or promote each other. Hence, the influence of single factors becomes difficult to identify. In particular, because

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situational factors are likely to interact with personal and motivational factors (e.g., people differ in their likelihood to use credit cards).

3.2. Personal Characteristics To date there seems to be little empirical work on a relation between personal characteristics and cost-benefit-associations. However, there is some speculation on personality characteristics, socio-demographic characteristics, and habits that might play a role in cost-benefit-associations. Prelec and Loewenstein (1998) as well as Kivetz (1999) suspect that tightwads are more likely to engage in strong cost-benefit-associations than spendthrifts. People who care and are worried about costs might tend to strongly associate costs and benefits. This reasoning is in line with lay intuition. Overall, 59 people were asked to read the following scenario:

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Scenario 2: Mr. Schneider works as a clerk and lives in the surroundings of a big city. Two years ago he bought a medium-sized vehicle on a loan (loan duration 5 years). When talking about it, Mr. Schneider likes to call it an investment in his mobility. Mr. Schneider is one of those who consider money as very important. Some might even call him tight-fisted.

After reading the scenario participants were asked to state whether they thought that the loan makes Mr. Schneider think of the car and vice versa. Subsequently, they were asked to state the degree to which they used each information of the scenario when making this estimate. The information that Mr. Schneider could be called tight-fisted was used most. Mean response on a seven-point-scale (from 1 = not at all to 7 = very much) was 5.75 (SD = 1.52), while the means of all other pieces of information ranged between 2.54 and 4.90. Hence, there is preliminary evidence that personality might matter for cost-benefitassociations. A long list of further speculations could be added and research on this particular family of determinants seems promising. To name but a few: need for cognition may be positively related with cost-benefit-associations, and attitudes towards different payment methods (e.g., credit attitudes) might impact cost-benefit-associations.

3.3. Motivation Motivated establishment of cost-benefit-associations may be useful for various purposes such as self-justification. The most direct test for whether cost-benefit-associations can be motivationally driven was provided by Soman and Gourville (2001). Using a scenario, they found that people purposefully disassociated benefits of a bundle (theater tickets or ski tickets) from its cost depending on the attractiveness of alternative benefits. When people were highly motivated to forgo consumption (attend a prepaid play or go skiing) because of an attractive alternative (e.g., a tempting party) or because the consumption became unattractive (e.g., skiing in poor conditions), they were likely to disassociate benefits from costs; presumably because disassociation released consumption pressure.

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If consumers are motivated to influence cost-benefit-associations, they do not have to rely on willpower alone. Most people might implicitly know about the hedonic consequences of cost-benefit-associations and about the impact of circumstantial factors on cost-benefitassociations. As a consequence they can resort to several mechanisms that lead to the desired degree of cost-benefit-associations. Above all, they can mentally prepay and push costs out of mind (Prelec and Loewenstein, 1998), choose particular framings, choose specific payment methods, and/or time consumption and payment episodes. For instance, framing a purchase as an investment may make the association between costs and benefits less salient and may thus be an efficient strategy to weaken cost-benefit-associations (Kivetz, 1999). To conclude, causes of cost-benefit-associations are manifold. ‘Who buys what when how and why’ matters. Circumstantial, personal, and motivational factors behind cost-benefitassociations are probably not independent from each other. It is intuitively appealing that circumstantial and motivational causes might sometimes counteract each other (e.g., the amount of payment), that circumstances are selected in order to influence cost-benefitassociations (e.g., choosing payment method), or that individual differences influence the impact of circumstances (e.g., perception of topical relatedness is subject to individual interpretation).

4. CONSEQUENCES OF COST-BENEFIT-ASSOCIATIONS

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Cost-benefit-associations affect the degree to which consumption events can influence the perception and experience of payment events and vice versa. From the very first thought of costs or benefits till the very last, cost-benefit-associations may influence experiences, cognitions and behavior.

4.1. Experiential Consequences Both directions of association are important in determining the experienced disutility of payment and the experienced utility of consumption. For example, a person who pays for a newspaper subscription and automatically thinks of the future pleasure of reading the newspaper is supposed to experience less pain of paying than a person who does not have these thoughts (Prelec and Loewenstein, 1998). In particular, the two directions of association are supposed to lead to different consequences. If strong associations from costs to benefits are established this is supposed to reduce the disutility of payment because it makes people aware of what they are paying for. If strong associations from benefits to costs are established this is supposed to reduce consumption utility because consumers no longer can consume a product as if it were free. Different combinations of strength of association in the two different directions are then assumed to serve two counteracting functions: A strong cost-to-benefit association combined with a weak benefit-to-cost association is assumed to boost hedonic efficiency because consumption feels free while payments are buffered by thoughts of benefits. Strong associations in both directions are assumed to boost decision efficiency because people are

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(painfully) aware of the costs of consumption and are hence more likely to regulate their spending (Prelec and Loewenstein, 1998). These hedonic effects of cost-benefit-associations have mostly been assumed as given. Recent evidence does, however, suggest that actual experiences do not always follow predicted patterns. Several studies in a personal loan context showed that benefit-to-cost associations have an impact on the pain of paying rather than on consumption utility (Kamleitner et al., 2008). If a good makes people think of the cost, the cost are perceived as considerably more onerous. Whereas these results indicate that cost-benefit-associations are in fact consequential, they also indicate that the phenomenon may be more complex than assumed (for a discussion of possible meta-cognitive processes see Kamleitner et al., 2008). One issue adding to this complexity is the fact that factual costs do not necessarily always provide disutility. Rather people sometimes feel that they made a good deal or they value something because of its high price (e.g., snob effect) or the financial sacrifices made (e.g., installment credit). In these cases strong cost-benefit-associations might even lead to an increase in consumption enjoyment and/or cognitive evaluation of the good purchased. A preliminary test of this supposition is provided by scenario 4. Each answer option is preceded by the number of people choosing the option (N = 59). Scenario 4: Miss Yellow and Miss Red have just bought the same leather jacket at the same price. Both have an equal amount of money at their disposal. They each bought the jacket mainly because it really appealed to them. Miss Red has also thought that she always wanted to have such an expensive piece. Before going to bed both have another look at the jacket, which makes them automatically think of the €200 they spent on it. 1. Who is happier about the jacket in that very moment?

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3 Miss Yellow

15 both equally

41 Miss Red

2. A few days later Miss Yellow and Miss Red think of the €200 that they spent on the jacket. Who experiences this thought as more painful? 25 Miss Yellow

23 both equally

10 Miss Red

Results of scenario 4 give a hint that some sort of snob appeal might at least diminish the effect of cost-benefit-associations on consumption pleasure and pain of payment. A majority of those who made a difference between Miss Red and Miss Yellow thought that cost-benefitassociations led to more consumption enjoyment and less pain of paying for Miss Red who partly bought the jacket because it was ‘such an expensive piece’.

4.2. Cognitive Consequences Cost-benefit-associations influence cognition, too. Each association equals to an additional thought of the associated construct and hence makes the associated cognition—be it costs or benefits--more accessible. Thus, these events become mentally more present and easier to recall. Weak cost-benefit-associations, in contrast, may lead to loss of knowledge on how much things cost or what people are paying for. A striking proof for this consequence of

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weak associations comes from Soman (2001) who found that students leaving a bookstore were significantly less able to remember the amount spent when they had paid with credit card (supposedly leading to weak associations) than when they had paid in cash (see also Srivastava and Raghubir, 2002). Not only were those paying by credit card less able to remember the amount, they also significantly underestimated the amount spent. In addition, especially frequent credit card users were shown to underestimate their future credit card bills because they recalled past expenses holistically (Srivastava and Raghubir, 2002). If people were taught to decompose credit card expenses to single consumptions, that is taught to associate costs and benefits, biases in the recall of credit card expenses were diminished (Srivastava and Raghubir, 2002). Cost-benefit-associations may also relate to justification (Heath and Fennema, 1996). If consumption makes people think of the cost, they might experience an increased need to justify the expenses; and if cost make people think of benefits, they might be better able to justify these costs. In a related vein Kamleitner and Hoelzl (in press) report that strong costbenefit-associations may also increase the salience of opportunity costs and that this salience along other experiences and cognitions may influence behavior.

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4.3. Behavioral Consequences Behavioral consequences of cost-benefit-associations may be experienced even before the first consumption or payment episode. Cost-benefit-associations could influence consumers anticipations, affect the purchase decision (Heath and Fennema, 1996), and thus have an impact on if and when which purchase is made how. Especially consumers who do not associated benefits with costs are assumed to prefer to consume first and pay later (Prelec and Loewenstein, 1998). More generally, timing of consumption and payment events might be unimportant for people with weak cost-benefit-associations. Timing sometimes is an important consideration in a purchase decision. If that consideration is of no importance, different decisions may be made. For example, cheaper but less attractive options may become more appealing to those who strongly associate costs and benefits than to those who do not (Kamleitner and Hölzl, in press). The best discussed behavioral consequence of cost-benefit-associations is its impact on consumption. Overall, the weaker cost-benefit-associations, the more people will consume how they want instead of how they think they should—simply because consumption can be enjoyed as if it were free (Kivetz, 1999; Soman and Gourville, 2001). For example, services with unlimited usage will be used less frequently because there is no need to get as much for your money as possible (cf. Heath and Fennema, 1996; Soman and Gourville, 2001). On the other hand, several factors that weaken cost-benefit-associations (e.g., payment transparency, product bundling) were shown to increase and/or speed up consumption of goods for which each usage incurs extra costs such as using a Laundromat (Soman, 2001, 2003; Stremersch and Tellis, 2002). In a related vein, cost-benefit-associations may decrease the care people take of their goods and they may influence repurchasing behavior (see Heath and Fennema, 1996; Soman and Gourville, 2001 for these effects of mental depreciation and bundling).

Cost-Benefit-Associations: A Powerful But Understudied Construct

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CONCLUSION Cost-benefit-associations are a widely applied implicit assumption as well as a scarcely investigated phenomenon. They drive phenomena like the sunk cost effect but get not much attention in the literature. Establishing a rudimentary framework for the phenomenon, costbenefit-associations emerged as a complex issue with significant implications for theory and practice. Reality on cost-benefit-associations is probably much more varied and complex than presentable in this framework. The framework is at the current state of knowledge which does not allow it to be more than a preliminary attempt to tackle the phenomenon. Considering that cost-benefit-associations can be actively and passively driven, diverse interaction patterns within and between different causes and consequences are feasible. For example, experiential and cognitive consequences are very likely to turn into actual behavior. Doubtless much more research on the topic is needed to fully understand the underlying processes, dynamics and moderators. Nonetheless it has become clear that cost-benefitassociations are practically as well as theoretical important. Practical implications result from the facts that (a) cost-benefit-associations have an impact on consumer experiences, cognitions, and behavior and that (b) cost-benefit-associations can be manipulated by transaction characteristics (e.g., payment method) and the consumer herself. Marketers as well as consumer advisory services may potentially benefit from a better understanding of cost-benefit associations. Theoretical implications relate to the fact that strong cost-benefitassociations have often been implicitly assumed. For instance, previous studies on sunk cost effects barely took into account its dependence on a mental association between costs and benefits. This association was often implicitly established by experimental designs and scenarios (Garland, 1990; Staw, 1976) but situations in which the cost-benefit-connection is not salient are conceivable. There are a number of promising research directions. Considering the manifold consequences cost-benefit-associations can have, it seems auspicious to have a much closer look on the degree to which cost-benefit-associations arise in the first place. It would be worthwhile to establish differences in cost-benefit-association patterns across payment methods, products, income groups, and so forth. It would also be worthwhile to analyze changes in cost-benefit-associations over time. There is some evidence that people anticipate and recall changes in the strength of associations (Kamleitner and Kirchler, 2006) although anticipation and recollection do not necessarily reflect real dynamics (Hoelzl et al., 2007). Multiple other promising research directions are conceivable because it is possible to combine or integrate the idea of cost-benefit-associations with several existing streams of literature (e.g., literature on information search, literature on interpersonal decision making) and to expand it to various application fields that are determined by some form of costs and benefits (e.g., tax paying, environmental protection). The theoretical potential and practical importance of cost-benefit-associations seem to conflict with the scarce amount of research available. Cost-benefit-associations do in fact seem to be a powerful but understudied phenomenon.

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REFERENCES Ariely, D., and Silva, J. (2002). Payment method design: Psychological and economic aspects of payments. MIT Sloan School of Management Paper 196. Arkes, H. R., and Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior and Human Decision Processes, 35(1), 124-140. Chandon, P., and Wansink, B. (2002). When are stockpiled products consumed faster? A convenience-salience framework of postpurchase consumption incidence and quantity. Journal of Marketing Research, 39(3), 321-335. Garland, H. (1990). Throwing Good Money After Bad - The Effect Of Sunk Costs On The Decision To Escalate Commitment To An Ongoing Project. Journal Of Applied Psychology, 75(6), 728-731. Gourville, J. T., and Soman, D. (1998). Payment depreciation: The behavioral effects of temporally separating payments from consumption. Journal of Consumer Research, 25(2), 160-174. He, X., and Mittal, V. (2007). The effect of decision risk and project stage on escalation of commitment. Organizational Behavior and Human Decision Processes, 103(2), 225-237. Heath, C., and Fennema, M. G. (1996). Mental depreciation and marginal decision making. Organizational Behavior and Human Decision Processes, 68(2), 95-108. Heath, C., and Soll, J. B. (1996). Mental budgeting and consumer decisions. Journal of Consumer Research, 23(1), 40-52. Henderson, P. W., and Peterson, R. A. (1992). Mental accounting and categorization. Organizational Behavior and Human Decision Processes, 51(1), 92-117. Hirst, E. D., Joyce, E. J., and Schadewald, M. S. (1994). Mental accounting and outcome contiguity in consumer-borrowing decisions. Organizational Behavior and Human Decision Processes, 58(1), 136-152. Hoelzl, E., Pollai, M., and Kamleitner, B. (2007). Experience and its fit with prediction and recollection: The case of perceived change in loan burden. manuscript under review Kamleitner, B., Hoelzl, E., and Kirchler, E. (2008). Experiencing costs and benefits of a loan transaction: The role of cost-benefit associations. Working Paper. Kamleitner, B., and Hölzl, E. (in press). Cost-benefit-associations and financial behavior. Applied Psychology: An International Review. Kamleitner, B., and Kirchler, E. (2006). Personal loan users' mental integration of payment and consumption. Marketing Letters, 17(4), 281-294. Kivetz, R. (1999). Advances in research on mental accounting and reason-based choice. Marketing Letters, 10(3), 249-266. Linville, P. W., and Fischer, G. W. (1991). Preferences for separating or combining events. Journal of Personality and Social Psychology, 60(1), 5-23. Prelec, D., and Loewenstein, G. (1998). The red and the black: Mental accounting of savings and debt. Marketing Science, 17(1), 4-28. Soman, D. (2001). Effects of payment mechanism on spending behavior: The role of rehearsal and immediacy of payments. Journal of Consumer Research, 27(4), 460-474. Soman, D. (2003). The effect of payment transparency on consumption: Quasi-experiments from the field. Marketing Letters, 14(3), 173-183.

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Soman, D., and Gourville, J. T. (2001). Transaction decoupling: How price bundling affects the decision to consume. Journal of Marketing Research, 38(1), 30-44. Soman, D., and Lam, V. M. W. (2002). The effects of prior spending on future spending decisions: The role of acquisition liabilities and payments. Marketing Letters, 13(4), 359372. Srivastava, J., and Raghubir, P. (2002). Debiasing using decomposition: The case of memorybased credit card expense estimates. Journal of Consumer Psychology, 12(3), 253-264. Staw, B. M. (1976). Knee-deep in the big muddy: A study of escalating commitment to a chosen course of action. Organizational Behavior and Human Performance, 16(1), 2744. Stremersch, S., and Tellis, G. J. (2002). Strategic bundling of products and prices: A new synthesis for marketing. Journal of Marketing, 66(1), 55-72. Thaler, R. H. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199214. Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183-206. Thaler, R. H., and Johnson, E. (1990). Gambling with the house money and trying to break even: The effects of prior outcomes on risky choice. Management Science, 36(6), 643660.

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In: Consumer Behavior Editor: Felix Saito

ISBN 978-1-60692-394-8 © 2009 Nova Science Publishers, Inc.

Short Communication C

FAIRNESS PERCEPTIONS AND UTILITY MAXIMIZATION Irene Daskalopoulou∗ Department of Economics, School of Economics and Management, University of Peloponnese, Greece

ABSTRACT

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Available literature suggests that fairness perceptions underlie consumers’ economic transactions. Viewing economic transactions, as a social practice requires that the nonlinear effects of consumers’ judgments over the outcome they receive should be incorporated into the theoretical and methodological models of analyzing consumers’ choices among alternative outcomes. Here a model is proposed regarding the incorporation of fairness perceptions into consumers’ choices among alternative supermarket providers. Analysis is based on two assumptions. The first one relates to that consumers patronize stores using their own evaluations of the price and service fairness (overall fairness) that they expect to receive from each provider, as the underlying mechanism of patronizing alternative stores. The second one relates to that threshold levels of fairness exist and constitute the critical point at which a decision to transact with a specific provider turns from negative to positive and thus a transaction is observed. Based on these assumptions we formulate the hypothesis that utility maximizing consumers might actually be viewed as consumers maximizing the utility deriving from a patronizing process. Important implications arise from such a theorization. On the one hand, an analytical context is proposed for incorporating incommensurable human values and intangible constructs such as overall fairness perceptions into the methodological tools of consumers’ behavior analysis. On the other hand, a means is provided for empirical research over consumers’ expenditures to derive indirect, yet important, information as regards the unobservable process of patronizing stores. Using the shares of expenditures allocated to each provider as an approximation of the underlying transaction pattern (patronization pattern), the efficiency of households in allocating overall expenditures to different providers might be measured. Thus, observed deviations from an efficient allocation might be taken to account for the material value that is subject to ∗

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Irene Daskalopoulou the non-linear effects caused by human values and constructs underlying individuals’ economic transactions. In addition, this material value is the sum of expenditures shares weighted by the fairness ascribed to alternative prospective outcomes.

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INTRODUCTION Mainstream microeconomic theory suggests that consumers, when having to decide upon the purchase of a composite good, maximize value by means of choosing the price/quality ratio that maximizes value for each item that is included in a composite good (Debreu, 1959). Research along the economic psychology strand indicates that it is also human values and constructs that underlie individuals’ transactions (Tversky and Kahneman, 1986). One of the most pervasive notions drawing from this strand of research relates to individuals’ perceptions of fairness. Today it is widely acknowledged that fairness perceptions are a construct underlying observed economic outcomes (Rabin, 1993; Karni and Safra, 2002; Carpenter, 2003) and one of the reasons why individuals undertake certain actions (Maital, 2004; McFadden, 1999; Rabin 1993; Kahneman et al., 1986). Following this, a growing body of literature is dedicated to analyzing fairness as a construct underlying people’s transactions. The economists’ focus is on incorporating fairness into the economic theory and generating stylized facts regarding the effects of the notion of fairness upon individuals’ choices (Karni and Safra, 2002; Rabin, 1993). On the other hand, psychologists emphasize the value construct of the notion of fairness and argue that human behavior may be best explained by analyzing the framework of options that are available to individuals (Carpenter, 2003; Tversky and Kahneman, 1986). Research along the two disciplines has resulted into the generation of a quite important body of knowledge. Summarizing the areas of consensus among economists and psychologists, Rabin (1993) proposes a list of ‘stylized facts’ suggesting that first, people are willing to sacrifice material value to them in order to help/punish someone who has been kind/unkind, and second, that this motivation has a greater effect on behavior as the material cost of sacrificing becomes smaller. Yet, little is still known, as to the way in which fairness affects consumers’ behavior in everyday life. Obviously the effects of fairness perceptions need to be incorporated in the theoretical and empirical models regarding observed economic outcomes. A growing number of studies urges for an interdisciplinary approach of economic phenomena (Guerin, 2003; Foxall, 1999; Oliveira-Castro, 2003), while as Foxall (2003) suggests a more comprehensive analytical framework is needed in order to improve the analytical validity of empirical investigations aiming at interpreting real-world economic behavior (Foxall, 2003). Here a model is proposed regarding the incorporation of fairness perceptions into consumers’ choices among alternative transaction outcomes. It is proposed that utility maximizing consumers actually maximize the level of fairness received from alternative transactions. Important implications arise from such a theorization.

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THEORETICAL BACKGROUND In the quest of understanding process outcomes, an important issue that must be accounted for is the complex nature of the underlying processes involved (McFadden, 1999). Complexity arises from the fact that consumers perceive money and the outcomes of money exchanges, that is all transactions realized nowadays, as an abstract good (Thaler, 1985). A major consequence of this is the fact that individuals may consistently differ in their judgments regarding the various uses of money as well as in their judgments regarding the degree in which various outcomes of money exchange may be acceptable (Thaler, 1985; 1990). Following Thaler’s (1985) notion of the endowment effect and McFadden’s (1999) elaboration on that notion, unless paucity of transactions occurs reference point effects are relevant to the analysis of economic transactions. Two interrelated issues arise as a result of these arguments. The first relates to how consumers frame transactions, i.e. what is the problem that consumers’ aim at solving while the second relates to the mechanisms generating reference point effects in economic transactions. As regards to the first issue, Baumol (1982) suggests that individuals frame economic transactions as an allocation problem. According to Baumol (1982) an allocation problem refers to an individual who has to decide upon the outcome that he/she would like to receive among a set of available outcomes. This actually suggests that the choice of realizing a transaction is not independent of the anticipated outcome of this transaction. As he argues a person’s decision on the outcome that he/she most likely want to receive is affected by his/her perceptions over the fairness underlying the alternative outcomes they are faced with (Baumol, 1982). This suggests that individuals form perceptions of fairness over their transactions with different agents as the actions of these agents affect the level of satisfaction that they receive. Following these an observed outcome is a function of the consumers’ internal evaluation process according which alternative outcomes are hierarchically evaluated according to the value they offer to individuals. Utilizing the transactional theory approach of Dewey (1985), and the empirical findings of Lave (1988), Mousavi and Garrison (2003), argue that ‘a theory that can deal with deliberation regarding incommensurable values better explains economic behavior in the everyday marketplace’ (Mousavi and Garrison, 2003; p. 131). According to this argument, emphasis should be placed on analyzing a consumer’s decision-making process regarding a given transaction as a social practice (Mousavi and Garrison, 2003; Guerin, 2003). The work of Tversky and Kahneman (1986) best describes the process of evaluating alternative outcomes. Given that a choice has to be made Tversky and Kahneman (1986), argue that individuals first frame and edit the problem and the plausible outcomes and then they go on to evaluate each prospective outcome. As they argue, there are two ways of choosing between prospects that is individuals may either detect the outcome that dominates the other or they might compare the corresponding values of the prospective outcomes (Tversky and Kahneman, 1986). Thus, an individual’s final choice is a function of frame that is, choice is a function of all first-phase factors that act as explanatory variables via determining the outcome variable. As Tversky and Kahneman (1986) suggest individuals will choose the dominant option or the option with the highest value depending on its frame; the most transparent frame gets chosen easier. Practically this means that options are the result of individuals’ own rankings.

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Later studies bring into the empirical analysis other practical considerations that intervene in consumers’ buying decisions. Analyzing consumers’ expenditures on supermarkets, Lave (1988) notes that shoppers are, indeed, quite capable in marginal utility judgments. Nonetheless, she explicitly stresses the single-dimension character of such judgments and argues that the ‘non-arithmetic’ aspects of calculations are the ones that transform a shopping decision to an experience (Lave, 1988). Lave (1988) identifies as ‘nonarithmetic’ aspects consumers’ concerns over, the volume of goods that can be consumed within a given time to avoid waste or spoilage, the volume of goods that equals storage capacity of a person’s home (both practical concerns), as well as a person’s perceptions over tastes, nutritional value, aesthetics, or even feelings towards producers and suppliers of certain goods. Within that context, it is acknowledged that price is not the only determinant of individuals’ transactions. The social setting within which a transaction is realized plays a significant role. Consequently, consumers’ perceptions of fairness underlying a transaction should not be considered as a single-dimension concept. In an empirical setting Daskalopoulou and Petrou (2006) frame household supermarket expenditures as a set of alternative options that consumers are faced with. They view consumers’ expenditures as an allocation choice problem with perceptions of price fairness being an endogenous variable causing treatment effects to the consumers’ expenditures equation. As they argue consumers patronize alternative providers using their fairness perceptions as the criterion of deciding whether a transaction will be realized with a specific provider and the amount of money that it will be involved in the specific transaction (Daskalopoulou and Petrou, 2006). Through this operationalisation they empirically test the hypothesis that a consumer will tend to buy more/less or not at all from a provider who is being kind/unkind (Akerlof, 1982; Huang, and Wu, 1992; Rabin, 1993). Thus, empirical evidence is provided of the hypothesis that people are willing to sacrifice material value to them in order to help/punish someone who has been kind/unkind, and further this motivation has a greater effect on behavior as the material cost of sacrificing becomes smaller (Rabin, 1993). Such behavior may depart from consistency usually ascribed in human decisions by mainstream consumer expenditures models (Deaton and Muellbauer, 1980), thus allowing for non-linearities of value and belief to enter the analysis of economic transactions (Tversky and Kahneman, 1986). The above findings suggest that consumers actually solve a choice among alternative outcomes problem and further they use their own fairness perceptions in order to evaluate each prospective outcome. Given that, the second issue then relates to the mechanisms generating reference point effects in economic transactions. According to McFadden (1999) when a transaction is realized we might assume that consumers do not view the gains from the specific transaction they undertook as being modest. An issue then arises as to the critical point at which a negative decision to transact turns into a positive one (Daskalopoulou, 2008). Daskalopoulou (2008) defines that unobservable and yet critical decision point as threshold level fairness, that is the benchmark against which individuals determine whether they are going to transact or not given the monetary value involved in a specific transaction. For consumers who transact threshold evaluations might be viewed as positive. Nonetheless, these threshold levels of overall fairness might differ from what consumers identify as price and/or service fair, the latter two identified as components of levels of fairness for which information might be empirically acquired (Daskalopoulou, 2008).

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A note should be made here regarding the multidimensional character of fairness evaluations. Experimental studies, regarding the role of fairness perceptions upon consumers’ expenditures, usually analyze price fairness as the criterion that consumers use when shopping (Bolton et al., 2003; Campbell, 1999). However, the notion of fairness is too complex to be adequately approximated by a single factor (Konow, 2001). Consumers might be assumed to value not only the goods bought (Oliver, 1997) but also the service they are offered (Bolton et al., 2003; Grewal and Baker, 1994). In that sense, fairness might be conceptualized as a two-dimensional decision making criterion that incorporates ‘price fairness’, i.e. the price/quality ratio accepted to characterize each composite good, and ‘service fairness’, i.e. the value attached to the context within which the specific transaction is realized. Perceptions of fairness might be assumed to encompass consumers’ judgments over the overall value underlying their transaction with a specific provider, i.e. the overall fairness assumed in the current analysis (Daskalopoulou, 2008). The phenomenon of consumers buying goods from providers who they evaluate as price and/or service unfair does not constitute an inconsistency on behalf of the consumers (Daskalopoulou, 2008). Rather, it evidences the presence of non-linear effects caused by values and beliefs entering the analysis of individual choice of outcomes (Tversky and Kahneman, 1986). To the extent that fairness affects economic phenomena, Baumol (1982), suggests that the fairness criterion can be operationalized and applied to concrete problems in order to “derive results which are not all obvious in advance” (Baumol, 1982, p. 650). As regards price fairness in particular, Piron (1985) states that fairness as the outcome of a value construct is asymmetrically related with a process whose optimality may directly be related to a logical construct. Further, individual perceptions of fairness can take on a number of different forms (Rabin, 1993), as they are a complex construct exceeding beyond the price/quality ratio usually assumed in the relevant literature (Bolton et al., 2003; Campbell, 1999). The non-monetary aspects of a transaction are equally important in the process of determining the overall level of fairness characterizing a specific transaction (Lave, 1988), and thus a second dimension, related to an individual’s evaluation of the context within which a transaction is realized, and identified as service fairness perceptions should also be introduced in the analysis of individual transactions. Consumers’ evaluations of these two dimensions work in an additive way; and they form the criteria based on which an individual ascribes an overall value to the plausible outcomes that he/she is faced with (Daskalopoulou, 2008). Fairness thresholds, although unobservable, might be empirically approximated by the monetary value involved in a transaction under the assumption that a consumer’s decision to realize an economic transaction is jointly determined with a decision regarding the monetary value of the prospective transaction. Thus, observed expenditures could be viewed as an approximation of this unobservable threshold level fairness (Daskalopoulou 2008). On the other hand, reported price and service fairness judgments are the observed outcome of an internal process used by consumers in order to subsume and weight an individually specified number of factors that affect fairness judgments (Daskalopoulou and Petrou, 2006; Daskalopoulou, 2008). This operationalization acknowledges that, consumers may allow for different combinations of price and service fairness, when they decide upon the overall level of fairness underlying a specific transaction. On the other hand, support is provided to the argument that preferences are transactionally formed (Daskalopoulou, 2008) and this argument is consistent with studies emphasizing the importance of situational variables in

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both theory (Guerin, 2003; Stikkers, 2003) and experimental/empirical analysis (Foxall, 1999; Oliveira-Castro, 2003; Ruyter and Wetzels, 2000).

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FAIRNESS PERCEPTIONS AND UTILITY MAXIMIZATION In any individual transaction a number of possible outcomes might result with respect to the underlying level of fairness associated with the specific transaction as judged by consumers. As noted earlier, Tversky and Kahneman (1986) suggest that individuals will choose the dominant option or the option with the highest value depending on its frame (context). As such a consumer’s search for maximum value results into a hierarchy of alternatives from the most desired one (the one with the highest value) to the least desired one (the one with the lowest value). Real expenditures are considered as one of the most critical dimensions regarding consumers’ life, a dimension that actually determines the demand side in everyday transactions. Here, consumers’ supermarket expenditures are viewed as the outcome of an allocation problem. This view is based on the assumption that consumers are faced with alternative providers of goods and thus they have to decide upon how much money to spend, if any, at a specific provider. Three issues should be raised here. The first one relates to that for this type of repeated purchase it can reasonably be assumed that individuals have the information that is necessary for their evaluations. The second one relates to that the notion of overall fairness is assumed in the analysis in view of acknowledging that both price and service fairness perceptions create, in an additive way, the overall level of fairness ascribed to a transaction (Daskalopoulou, 2008). The last issue relates to the way in which fairness judgments are formed (Konow, 2001) for which the assumption adopted is that they are the outcome of a complex internal to the individual process (Monroe, 1973; Goering, 1985, Alba et al., 1994; Xia et al., 2004; Smith, 2005) of prioritizing and weighting a number of unknown parameters. Given that, for any utility maximizing consumer i ( i = 1,..., n ) we might assume a

ranked preference order of transaction outcomes as: F xijf ≤ ... ≤ xkgr ≤ ... ≤ xnm

(1)

where j represents the number of different providers with which a consumer might realize a transaction ( j = 1,..., m , m f 2) , f represents a fairness judgment order ranging from

totally unfair transaction judgment to more than fair transaction judgment ( f = 1,..., F ,

F f 2) , xijf stands for the least preferred outcome that might result from a transaction with F

provider j and xm is the most preferred outcome that might result from a transaction with provider m ( m ≠ j ) . We might denote as

xgr the referent outcome that is the fair transaction

outcome that might result from a transaction with provider

g ( g ≠ m ≠ j) .

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To simplify and drop subscripts for any consumer i ( i = 1,..., n ) realizing transactions with j different providers

( j = 1,..., m , m f 2) a ranked preference order of transaction

outcomes might be assumed as:

x f ≤ ... ≤ xr ≤ ... ≤ x F where x

f

(2) F

now corresponds to a vector of least preferred outcomes, x to a vector of most r

preferred outcomes and x to a vector of referent outcomes. Each of the outcomes described in relationship (2) has a positive probability of being observed that is:

prob ( x f ) ≥ 0, ∀ f = 1,..., F

(3)

since consumers realize transactions even when they consider the outcome as less than fair (Daskalopoulou, 2008). The probability of any of these transactions to occur results from an underlying store patronizing process wherein consumers utilize previous knowledge and information in order to form their expectations with regard to the fairness they expect to receive from a given transaction. According to this patronizing process the probability of observing any type of transaction is a function of a threshold level of fairness that individuals expect to receive (Daskalopoulou, 2008), that is:

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prob ( x f ) ≡ prob(threshold fairness) ≥ 0

(4)

Utilizing relationship (4) we can write consumers’ utility as a function of the utility obtained by each specific transaction, that is:

U = U (u1 ,..., um )

(5)

Denoting threshold fairness of any given transaction with

j

different providers

( j = 1,..., m , m f 2) by α we can rewrite relationship (5) as:

U = U (α1u1 ,..., αmum )

(6)

where (6) actually suggests that consumers maximize weighted utility from each specific transaction using threshold fairness as the relevant weight. Threshold fairness α j needs to be

(

)

α f0 strictly positive j for a transaction to occur. Thus, given that a transaction is observed threshold level fairness can also be held to exist.

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Important implications arise from such a theorization. A first implication relates to that we might utilize relationship (6) in an empirical context to suggest that consumers when maximizing utility actually maximize demand for fair transactions. Using relationship (6) as the analytical context, we can argue that consumers maximize utility by solving the following problem:

max U = U (α1 x1 ,..., α m xm )

(7)

m

s.t.∑ E j = Y j =1

where x j corresponds to the physical quantity of the goods bought from each specific provider

j , i.e. we refer to a composite good bought from each specific provider,

E j is the

amount of expenditures realized at a specific provider j , i.e. the monetary value involved in

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a transaction for which it holds that

E j = α j x j and Y stands for consumers’ income.

Also important is the fact that such a theorization gives room for analyzing the effect of price and service fairness judgments, as the two main components of overall fairness judgments (Daskalopoulou, 2008). Here, in turn, it is suggested that it is not the price itself that indeed determines the satisfaction derived from a set of goods but rather the perceived price of the composite good bought. Finally, an important insight drawing from the empirical use of relationship (7) relates to the ability to formally analyze the store patronizing processes followed by the consumers. Solving for consumers’ utility as a function of the relative share of expenditures realized in different prospective providers provides us with a measure of consumer’s efficiency in patronizing stores. Further, any plausible deviations from the efficient allocation of money amongst different providers can be used as an empirical approximation of the monetary cost that consumers are willing to undertake in order to reward and/or punish someone who has been kind/unkind to them, i.e. a fair and/or an unfair provider.

CONCLUSION The model proposed here suggests that when consumers are faced with a number of prospective outcomes maximize utility as a function of the level of fairness that they receive from each outcome subject to an underlying process of patronizing the agents that are responsible for the level of fairness that they receive. The case of consumers’ supermarket expenditures is used as such a paradigm. It is argued that the way in which consumers allocate expenditures to different providers can be used as an approximation of the underlying transaction pattern (patronization pattern). Further, deviations from an efficient allocation might be taken to account for the material value that is subject to the non-linear effects caused by human values and constructs underlying individuals’ economic transactions, i.e. the costs

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willingly endorsed by consumers in order to reward and/or punish a fair and/or an unfair provider.

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REFERENCES Akerlof, G.A. (1982). Labor contracts as a partial gift exchange. Quarterly Journal of Economics, 97, 543-569. Alba, J.W., Broniarczyk, S.M., Shimp, T.A. and Urbany, J.E. (1994). The Influence of Prior Beliefs, Frequency Cues, and Magnitude Cues on Consumers' Perceptions of Comparative Price Data. Journal of Consumer Research, 21, 219-235. Baumol, W.J. (1982). Applied fairness theory and rationing policy. American Economic Review, 72, 639-651. Bolton, L.E., Warlop, L. and Alba J.W. (2003). Consumer perceptions of price (un)fairness. Journal of Consumer Research, 29, 474-491. Carpenter, J.P. (2003). Is fairness used instrumentally? Evidence from sequential bargaining. Journal of Economic Psychology, 24, 467-489. Daskalopoulou, I. (2008). Fairness perceptions and observed consumer behavior: results of a partial observability model. Journal of Socio-Economics, 37, 31-44. Daskalopoulou, I. and Petrou, A. (2006). Consumers’ expenditures and perceived price fairness. International Journal of Social Economics, 33, 766-780. Deaton, A. and Muellbauer, J. (1980). Economics and Consumer Behavior. Cambridge: Cambridge University Press. Debreu, G. ( 1959). Theory of Value. New York: Wiley. Dewey, J. (198) [1932]. Ethics. In J.A. Boydston (Ed.), John Dewey: The Later Works, Volume 7. Carbondale: Southern Illinois University Press. Foxall, G.R. (1999). The contextual stance. Philosophical Psychology, 12, 25-46. Foxall, G.R. (2003). The behavior analysis of consumer choice: An introduction to the special issue. Journal of Economic Psychology, 24, 581-588. Goering, P.A. (1985). Effects of Product Trial on Consumer Expectations, Demand, and Prices. Journal of Consumer Research, 12, 74-82. Grewal, D. and Baker, J. (1994). Do retail store environments affect consumers’ price acceptability? An empirical investigation. International Journal of Research in Marketing, 11, 107-115. Huang, P.H. and Wu, H.M. (1992). Emotional responses in litigation. International Review of Law and Economics, 12, 31-44. Guerin, B. (2003). Putting a radical socialness into consumer behavior analysis. Journal of Economic Psychology, 24, 697-718. Kahneman, D., Knetsch, J.L. and Thaler, R.H. (1986). Fairness and the assumptions of economics. Journal of Business, 59, S285-S300. Karni, E. and Safra, Z. (2002). Intensity of the sense of fairness: measurement and behavioral characterization. Journal of Economic Theory, 105, 318-337. Konow, J. (2001). Fair and square: the four sides of distributive justice. Journal of Economic Behavior and Organization, 46, 137-164. Lave, J. (1988). Cognition in Practice. Cambridge: Cambridge University Press.

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Maital, S. (2004). Daniel Kahneman: on redefining rationality. Journal of Socio-Economics, 33, 1-14. McFadden, D. (1999). Rationality for economists?. Journal of Risk and Uncertainty, 19, 73105. Monroe, K. (1973). Buyers’ Perception of Price. Journal of Marketing Research, 10, 70-80. Mousavi, S. and Garrison, J. (2003). Toward a transactional theory of decision making: creative rationality as functional coordination in context. Journal of Economic Methodology, 10, 131-156. Oliveira-Castro, J.M. (2003). Effects of base price upon search behavior of consumers in a supermarket: An operant analysis. Journal of Economic Psychology, 24, 637-652. Oliver, R.L. (1997). Satisfaction: A Behavioral Perspective on the Consumer. New York: McGraw-Hill. Piron, R. (1985). Fair outcome/fair process. American Economic Review, 75, 878-880. Rabin, M. (1993). Incorporating fairness into game theory and economics. American Economic Review, 83, 1281-1302. Ruyter, K. de and Wetzels, M. (2000). Customer equity considerations in service recovery: a cross-industry perspective. International Journal of Service Industry Management, 11, 91-108. Smith, V.L. (2005). Behavioral economics research and the foundations of economics. Journal of Socio-Economics, 34, 135-150. Stikkers, K.W. (2003). Transaction, development, and capacity: commentary on ‘Toward a transactional theory of decision making’. Journal of Economic Methodology, 10, 157160. Thaler, R. (1985). Mental Accounting and Consumer Choice. Marketing Science, 4, 199-214. Thaler, R. (1990). Savings, fungability, and mental accounts. Journal of Economic Perspectives, 4, 193-205. Tversky, A. and Kahneman, D. (1986). Rational choice and the framing of decisions. Journal of Business, 59, S251-S278. Xia, L., Monroe, K.B. and Cox, J.L. (2004). The Price is Unfair! A Conceptual Framework of Price Fairness Perceptions. Journal of Marketing, 68, 1-15.

In: Consumer Behavior Editor: Felix Saito

ISBN 978-1-60692-394-8 © 2009 Nova Science Publishers, Inc.

Short Communication D

PURCHASING ILLEGAL COPIES OF MOVIES’ VIDEOS AS AN UNETHICAL CONSUMER BEHAVIOR: AN ISRAELI STUDY Aviv Shoham∗, Ayalla Ruvio and Moshe Davidow Graduate School of Management, University of Haifa, Haifa 31905, Israel

ABSTRACT

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Consumer piracy could include buying illegal copies of music CDs or movie videos or brand-name knock-offs and its cost is estimated at billions of dollars. Piracy by consumers is a severe problem to manufacturers. The annual global loss from counterfeiting, such as pirated software and purchases of counterfeited brands (e.g., fashion), is $80 billion (Wee, Tan, and Choek, 1995). Moreover, sales of pirated music exceed $4.0 billion (Mariano, 2002). Furthermore, the Global Software Piracy Report (Smith, 2003) showed that software piracy had cost the USA 109,000 jobs, $4.5 billion in lost wages, and $1.0 billion in lost taxes. We tested a model interrelating consumers’ ethics, their sentiments toward marketing, and their attitudes to piracy, and actual piracy itself. Attitudes about piracy served as a partial mediator of the impacts of consumer sentiments, morals, and ethics on actual piracy. Most hypothesized relationships, including the role of piracy attitudes as partial mediators were supported by data from Israeli consumers. Piracy by consumers is a severe problem to manufacturers. The annual global loss from counterfeiting, such as pirated software and purchases of counterfeited brands (e.g., fashion), is $80 billion (Wee, Tan, and Choek, 1995). The music industry exemplifies the potential losses with sales of pirated music exceeding $4.0 billion (Mariano, 2002). Furthermore, at the macro-country level, the Global Software Piracy Report (Smith, 2003) showed that software piracy had cost the USA 109,000 jobs, $4.5 billion in lost wages, and $1.0 billion in lost taxes. Previous research has studied piracy as a behavioral outcome of consumers’ ethics and morals, which impact the use of pirated software, shoplifting, shirts, and cameras ∗

Telephone: +972 4 8249580; Fax: +972 4 8249194; e-mail: [email protected]

250

Aviv Shoham, Ayalla Ruvio and Moshe Davidow (e.g., Babin and Griffin, 1995; Cordell, Wongtada, and Kieschnick, 1996). Our research follows this approach and will be reviewed later. Here, we emphasize two contributions of our study. First, we develop a nomological model with internal ethical/moral attitudes and externally-based sentiments toward marketers’ products and prices as antecedents leading to attitudes about the act of piracy, which serves as a partial mediator of the impact of these antecedents on actual piracy. Inclusion of consumers’ sentiments is novel to our model. Second, our study was conducted in Israel, a unique setting for testing the model because most computer games, movie videos, and music CDs used in Israel are illegal copies (Hecht, 2001; Kara and Dror, 2002). Thus, the reality of Israel being a developed economy does not preclude consumers from piracy, which is a widespread local phenomenon (Bergerfreund, 2002; Kara, 2002; Koren, 2002). We first review the literature, develop a set of research hypotheses, and suggest a nomological model. After describing the study the findings are discussed. An implications section concludes the paper.

LITERATURE REVIEW AND RESEARCH HYPOTHESES We view piracy as an outcome of internal ethics and morals and externally-based sentiments towards marketers’ products and prices. These two antecedents are discussed below.

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Ethics and Morals While managerial ethics have been studied based on Hunt and Vitell’s model (1986, 1992; see Srnka, 2004 for a review), fewer studies of consumers’ ethical behavior have been reported (Vitell and Muncy, 1992). These studies are reviewed here. Using the Theory of Planned Behavior (TPB: Ajzen, 1985; Fishbein and Ajzen, 1975, 1980), Kuo and Hsu (2001) developed an “ethical computer self-efficacy” scale and used it in their study to predict software piracy. Likewise, Wagner and Sanders’ model (2001) was based on the Theory of Reasoned Action (TORA) and the TPB. According to them, moral equity affected behavioral intention directly and through ethical judgments indirectly; actual behavior was determined by behavioral intention. Our model follows a similar approach and includes ethics, morals, and actual behavior (Tan, 2002; Wagner and Sanders, 2001; Kuo and Hsu, 2001). Notably, ethics and morals include two dimensions that could impact consumers’ piracy behavior. Moral equity is dominated by the notions of fairness and justice and relativism recognizes the importance of socio-cultural norms. Both were found to impact behavioral intentions, which ultimately affect actual behavior (Reidenbach and Robin, 1988, 1989, 1991). Thus: H1: High moral equity and relativism-based perceptions reduce individuals’ purchases of illegal copies of movie videos.

Purchasing Illegal Copies of Movies’ Videos as an Unethical Consumer Behavior 251

CONSUMER SENTIMENTS TOWARD MARKETING Following early contributions (Barksdale and Darden, 1972; Barksdale, Darden, and Perreault, 1976; Hustad and Pessemier, 1973), Gaski and Etzel (1985, 1986) developed a measure of consumer sentiments toward marketing. We believed a-priori that the product and price components of such sentiments will affect consumers’ piracy and used both in our study. In their investigation of consumer ethics, Vitell and Muncy (1992) argued that condemning the condemner is a primary explanation for deviant behavior (see also Sykes and Matza, 1957). This explanation fits Grove, Vitell, and Strutton’s model (1989), in which consumers rationalize non-normative behavior by condemning the condemner (Vitell and Muncy, 1992). The more negative the consumers’ attitudes to businesses the fewer the ethical judgments they made (Vitell and Muncy, 1992). Accordingly, as consumers perceive marketers’ products and prices more negatively (i.e., have more negative sentiments toward them), they should behave less ethically through heavier use of pirated products, including purchases of illegal copies of movies. In sum: H2: The more critical the consumers’ sentiments toward products or prices, the more they will engage in purchasing illegal copies of movie videos.

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ATTITUDES TOWARD UNETHICAL ACTS While the literature on attitudes is broad, we focus on consumers’ attitudes about using illegal copies of video movies. Including such attitudes is based on the Theory of Reasoned Action and Theory of Planned Behavior. According to these theories, the attitudinal components of cognition, affect, and behavior should be consistent and in agreement. This conceptualization follows previous research by taking attitudes toward the act as mediators of the relationship between attitudes (moral equity, relativism, and sentiments toward marketing in this article) and behavioral intentions or behaviors vis-à-vis the use of illegal copies of movie videos (e.g., Bagozzi, Baumgartner, and Yi, 1992; Sawyer and Howard, 1991). Consumers’ sentiments toward marketing, moral equity, and relativism should affect attitudes toward the act of unethical behavior. This expectation is based on the anticipated consistency with the attitudinal component of attitudes (e.g., Festinger, 1957). Cognitive dissonance theory holds that, in general, the experience of cognitive dissonance results from inconsistent cognitive thoughts. Applied to our more specific context, the ethical components should be consistent with attitude towards the act and with the ensuing actual behavior. Accordingly: H3: The higher the individuals’ moral equity and relativism-based attitudes, the stronger their negative attitudes toward acting unethically in the context of purchases of illegal copies of movie videos.

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H4: The more positive consumers’ sentiments toward marketing, the stronger their negative attitudes toward acting unethically in the context of purchases of illegal copies of movie videos. The impact of attitudes toward an unethical act on actual behaviors follows the same consistency argument outlined above. For example, attitude-behavioral consistency theory (e.g., Fishbein and Ajzen, 1975, 1980) led us to anticipate that being less forgiving towards the piracy act (technically we are talking about positive attitudes to acting ethically) would be consistent with behavior, namely refraining from purchasing illegal copies of video movies. Thus: H5: The less forgiving consumers’ attitudes toward piracy, the lower their purchases of illegal copies of movie videos. So far, we developed hypotheses about the relationships between the study’s constructs. Next, the study designed to test the hypotheses is described and its findings are presented.

METHODOLOGY

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Sample Data were collected from a sample of Israeli consumers. A total of 300 questionnaires were distributed randomly in shopping and community centers in Northern Israel by three teams of graduate students. All students were first instructed thoroughly in research methodology by one of the authors. They were instructed to aim for a demographic distribution of respondents as close to national averages as possible. Of the 180 returned questionnaires (60.0%), 178 included complete data for a 59.3% response rate. When queried, most of those who declined to respond did not own a VCR. There were more males (57.3%) than females (42.7%) in the final sample. This imbalance might be due to the technical nature VCRs, which may have made males more familiar with them and more qualified to answer questions about their use. Education and incomes were skewed to the higher end: 16.4% had some college and 68.4% had an undergraduate degree; similarly, 36.0% had incomes around the average, 21.1% below it, and 42.9% above it. Given the nature of the sample and the skewed demographics, generalizing should be done with caution, an issue revisited later.

Instrument All scales, except for behavior, have been used previously. Since most scales were developed in English, a back-translation method was used. The scales were translated from English to Hebrew by one bilingual individual and back-translated to English by another, blind to the original scales. The three versions were assessed by the two translators and one of the co-authors and minor changes were made to the Hebrew version. The scales are described below.

Purchasing Illegal Copies of Movies’ Videos as an Unethical Consumer Behavior 253 Moral Equity and Relativism. The six relevant items (7-points) from the scale developed by Reidenbach, Robin, and Dawson (1991) were used to operationalize moral equity and relativism. Alphas, at 0.87 (moral equity) and 0.82 (relativism) were deemed acceptable. Sentiments toward Marketing. Product and price sentiments were both operationalized by five 7-point items. However, as in previous studies (Gaski and Etzel, 1986; Chan and Cui, 2004), two items were removed to increase reliability. Alphas were 0.71 (product sentiments) and 0.68 (price sentiments). The latter is slightly lower than advocated levels, an issue revisited later. Attitudes toward the Act. Bagozzi, Baumgartner, and Yi (1992) and Sawyer and Howard (1991) developed five items to measure attitudes towards an act. The four 7-point items in their scale relevant to the behaviors studied here were bad-good, unfavorable-favorable, negative-positive, and unpleasant-pleasant. The fifth item (satisfactory-unsatisfactory) is a measure of satisfaction and was thus excluded. The scale’s alpha was 0.96. Self-Reported Behavior. Four behavioral items were developed for this research. The first measured frequency (7-point scale: 1 = very rarely, to 7 = very frequently); the second behavior relative to others (7-point scale: 1 = much less to 7 = much more than others); the third the portion of unethical purchases of the total ownership of the movie videos (7-point scale: 1 = very small to 7 = very large); and the fourth the total quantity of unethically purchased products over the last year (7-point scale: 1 = none to 7 = 15 or more). Given the different measurement units, the items were standardized before forming a reliable scale (alpha = 0.86).

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RESULTS The data were analyzed by structural equation modeling (SEM; AMOS 4.0). Measurement and structural models were analyzed simultaneously. Model fit statistics were within established guidelines (Hair, Anderson, Tatham, and Black, 1998), suggesting that the model fit the data very well (χ2 = 293.15 [159 d. f.; p < 0.01]; χ2 /d. f. = 1.84; CFI = 0.98; NFI = 0.96; NNFI = 0.98; RMSEA = 0.07). The data supported the hypothesized measurement model. Specifically, all scales’ items loaded on their constructs strongly and significantly (loadings ≥ 0.47; p < 0.001). Accordingly, we proceeded to examine the substantive structural model. The exogenous constructs explained 40% of the variance in attitudes towards using illegal copies of video movies. Combined with attitude toward the act, they explained 21.0% of the variance of actual unethical behavior. Hence, we examined the substantive results (Table 1 and Figure). Higher moral equity and relativism-based perceptions were hypothesized to reduce purchases of illegal copies of movie videos (H1). The data provided partial support for H1. Moral equity had a negative and significant impact on purchases of illegal copies of video movies (-0.16). However, but the impact of relativism on such movies’ purchases was not significant. H2 posited that more critical consumer sentiments toward marketing would lead to more frequent purchases of illegal copies of movie videos. The data supported H2 in that the expected relationships were substantiated for both coefficients: more positive product and price sentiments led to lower reported purchases of illegal copies of video films (0.17 and 0.20, respectively).

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Aviv Shoham, Ayalla Ruvio and Moshe Davidow Table 1. SEM Results – Standardized Coefficients

Path Product Sentiments Behavior Price Sentiments Behavior Moral Equity Behavior Relativism Behavior Product Sentiments Attitude toward the Act Price Sentiments Attitude toward the Act Moral Equity Attitude toward the Act Relativism Attitude toward the Act Attitude toward the Act Behavior

Estimate - Video Movies 0.17 0.20 -0.16 0.01 .08 -0.22 -0.36 -0.39 0.30

p = (one-tailed tests) 0.02 0.02 0.04 0.47 0.12 0.00 0.00 0.00 0.00

Product Sentiments

Price Sentiments

0.09

0.17

-0.22

0.20

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Attitudes toward the Act R2=0.40

Moral Equity

-0.36

-0.16

-0.39

0.01

0.30

Purchase of Counterfeit Video Movies R2=0.21

Relativism

Fit statistics: χ2 = 293.15 (159 d. f.; p < 0.01); χ2 /d. f. = 1.84; CFI = 0.98; NFI = 0.96; NNFI = 0.98; RMSEA = 0.07. Solid lines – significant links; dotted line – insignificant links. Figure. SEM model for Movie Videos’ Piracy (standardized coefficients).

Purchasing Illegal Copies of Movies’ Videos as an Unethical Consumer Behavior 255 It was hypothesized that higher moral equity and relativism-based attitudes would reinforce negative attitudes to acting unethically in the context of purchases of illegal copies of movie videos (H3). The data provided support for H3. Specifically, the impacts of relativism and moral equity on attitude toward the act were negative and significant (-0.39 and -0.36, respectively). Stronger positive consumers’ sentiments toward marketing were hypothesized to enhance negative attitudes to acting unethically (H4). This hypothesis was partially supported: consumers’ price sentiments (but not product sentiments) affected attitudes toward the act (0.22). Finally, H5 suggested that the less forgiving consumers’ attitudes about piracy, the lower would be their purchases of illegal copies of movie videos. The data supported H5 (0.30).

DISCUSSION AND IMPLICATIONS In general, the direct and indirect impacts of the internal ethics and morals on actual behavior were notably stronger than those of the externally-based price and product sentiments. Additionally, the direct and indirect impacts of consumers’ price sentiments on behavior were stronger than those of consumers’ product sentiments. We discuss these findings below.

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PROFILING UNETHICAL INDIVIDUALS We expected Israeli consumers with more negative sentiments towards marketing to pirate more than those with less negative sentiments, an expectation mostly borne out by the data. Notably, some consumers might misperceive business practices, so their negative sentiments are inaccurate. In such cases, macro-market-level actions could be used. Firms that believe that consumers’ sentiments do them injustice can inform consumers about their strategies and shift positions in consumers’ perceptual maps. Alternatively, groups of firms in an industry (or an industry-based association of firms) can similarly inform consumers at the industry level to shift the whole industry to a stronger position in consumers’ maps. However, if businesses bad reputation is deserved, they can pro-actively try to improve their positions in the marketplace. For example, firms might consider sponsoring internet sites of social importance or relevance or donating to a social cause. Alternatively, firms can consider changes to their product or price strategies to make them seem fairer to consumers. Such changes should be communicated to consumers in the hope of making their marketing sentiments more positive. In general, the findings showed that higher moral equity and relativism affected piracy behavior negatively. Additionally, the impacts of moral equity and relativism were stronger than the impacts of consumer sentiments. Thus, investing more resources in raising consumers’ ethical threshold might be more fruitful than in improving consumer sentiments. In way of guidance, it should be noted that following an unethical act, some people tend to become more aware of their moral balance, which leads to avoidance of future unethical behaviors (Nissan, 1990, 1991, 1993). Moreover, individuals want to behave ethically, but

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permit self-imperfections (Reshef, 2001). Since people could perceive some of their acts as unethical, they would tend to behave ethically in the future as a moral balancing behavior. The implications are two-fold. First, firms should promote purchases of illegal copies of movie videos as unethical as a precursor to some individuals’ recognition of such behavior as such. Additionally, to reduce piracy, people should be made aware of the need to balance ethicality in a similar future context. For example, people who buy movie knockoffs illegally should be encouraged to buy legal copies of movies from the same company in the future to “balance the book”.

LIMITATIONS First, we used a convenience sample in our study, with some (minor) deviations from national averages. Future research should sample consumers randomly to increase the external validity of the findings reported here. Second, would the Israeli results generalize to other cultures? Generalizing to different nations/cultures requires additional studies. This issue is revisited below. Finally, the consumers price sentiments scale exhibited slightly lower than desirable reliability (Nunnally, 1978), even after purification (α = 0.68). Given that the reliability is close to the minimum recommended by Nunnally (1978; 0.70), this limitation should not have impacted the findings appreciably. However, future research might include some additional items in the scale to improve its reliability.

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SUMMARY AND FUTURE RESEARCH Given the results of this study, future research should focus on several issues. The first issue is how to best approach the task of increasing consumers’ moral equity. For this purpose, additional explanatory variables should be assessed, such as consumers’ tendency (or lack thereof) to “balance” their ethical “book”. Second, further research should examine the applicability of the findings to other cultures. Such cultures should be maximally different from Israel’s on Hofstede’s cultural dimensions (power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, and long-term orientation; 1980). Finally, could individual companies impact piracy in isolation from its competitors? Answering this question requires future research to examine the ensuing costs and benefits at the levels of specific companies, as well as at the level of complete industries, which suffer most from piracy (e.g., music downloads, movie videos and computer software).

REFERENCES Ajzen, I. (1985). From intentions to actions: A theory of planned behavior. In J. Kuhl and J. Beckman (Eds.), Action control: From cognition to behavior (pp. 11-39). Berlin: Springer-Verlag.

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Purchasing Illegal Copies of Movies’ Videos as an Unethical Consumer Behavior 257 Babin, B. J., and Griffin, M. (1995). A closer look at the influence of age on consumer ethics. In F. R. Kardes, and M. Sujan (Eds.), Advances in consumer research (22, pp. 668-673). Provo, Utah: Association for Consumer Research. Bagozzi, R. P., Baumgartner, H., and Yi, Y. (1992). State versus action orientation and the theory or reasoned action: An application to coupon usage. Journal of consumer research, 18, 505-18. Barksdale, H. C., and Darden, W. R. (1972). Consumer attitudes toward marketing and consumerism. Journal of marketing, 36, 28-35. Barksdale, H. C., Darden, W. R., and Perreault, W. D. (1976). Changes in consumer attitudes toward marketing, consumerism, and government regulation: 1971-1975. The journal of consumer affairs, 10, 117-139. Bergerfreund, A. (November 10th, 2002). Counterfeiters continue counterfeiting, as do the authorities. Haaretz, C9. Chan, T.-S., and Cui, G. (2004). Consumer attitudes toward marketing in a transition economy: A replication and extension. Journal of consumer marketing, 21, 10-26. Cordell, V. V., Wongtada, N., and Kieschnick, Jr., R. L. (1996). Counterfeit purchase intentions: Role of lawfulness attitude and product traits as determinants. Journal of business research, 35, 41-53. Festinger, L. A. (1957). Theory of cognitive dissonance. Stanford, CA: Stanford University Press. Fishbein, M., and Ajzen, I. (1975). Belief, andand: An introduction to theory and research. Reading: Addison-Wesley. Fishbein, M., and Ajzen, I. (1980). Predicting and understanding consumer behavior: Attitude-behavior correspondence. In I. Ajzenm, and M. Fishbein (Eds.), Understanding attitudes and predicting social behavior. Englewood Cliffs, NJ: Prentice-Hall. Gaski, J. F., and Etzel, M. J. (1985). A proposal for a global, longitudinal measure of national consumer sentiments toward marketing practice. In E. C. Hirschman, and M. B. Holbrook (Eds.), Advances in consumer research (12, pp. 65-70). Provo, UT: Association for Consumer Research. Gaski, J. F., and Etzel, M. J. (1986). The index of consumer sentiments toward marketing. Journal of marketing, 50, 71-81. Grove, S. J., Vitell, S. J., and Strutton, D. (1989). Non-normative consumer behavior and the techniques of neutralization. In R. Bagozzi, and J. P. Peter (Eds.), Proceedings of the 1989 AMA winter educators’ conference, Chicago: American Marketing Association. Hair, J. F., Jr., Anderson, R. E., Tatham, R. L., and Black, W. C. (1998). Multivariate data analysis. Upper River Saddle, NJ: Prentice-Hall. Hecht, R. (November 16th, 2001). Phony sound. Yediot Aharonot – Mamon, 8-10. Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Beverly Hills: Sage. Hunt, S. D., and Vitell, S. J. (1986). A general theory of marketing ethics: A retrospective and revision. In J. Quelch, and C. Smith (Eds.), Ethics in marketing (pp. 5-16). Chicago: Richard D. Irwin. Hunt, S. D., and Vitell, S. J. (1992). The general theory of marketing ethics. Journal of macromarketing, 8, 5-16.

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Hustad, T. P., and Pessemier, E. A. (1973). Will the real consumer activist please stand up: An examination of consumers’ opinions about marketing practices. Journal of marketing research, 10, 319-324. Kara, B. (August 14th, 2002). In spite of the counterfeit industry, only four arrests. Haaretz, A1, A13. Kara, B., and Dror, Y. (August 14th, 2002). International report: Approximately 90% of the computer games in israel – counterfeits. Haaretz, A13. Koren, O. (August 28th, 2002). Performers to the industry and trade industry: Annual damage from counterfeit cds – a billion shekels. Haaretz, C5. Kuo, F.-Y., and Hsu, M.-H. (2001). Development and validation of ethical computer selfefficacy measure: The case of softlifting. Journal of business ethics, 32, 299-315. Mariano, G. (June 11th, 2002). Music industry sounds off on CD burning. C|net, available online at: http://news.com.com/2100-1023-935120.html, accessed on July 2nd, 2007. Nisan, M. (1990). Moral balance: A model of how people arrive at moral decisions. In T. Wren (Ed.), The moral domain (pp. 283-314). Cambridge, MA: MIT Press,. Nisan, M. (1991). The moral balance model: Theory and research extending our understanding of moral choice and deviation. In W. M. Kurtines, and J. L. Gewirtz (Eds.), Handbook of moral behavior and development (3, pp. 213-249), Hillsdale, NJ: Erlbaum. Nisan, M. (1993). Balanced identity: Morality and other identity values. In G. Noam, and T. Wren (Eds.), The moral self. Cambridge, MA: MIT Press. Nunnally, J. C. (1978). Psychometric theory. New York: McGraw-Hill. Reidenbach, R. E., and Robin, D. P. (1988). Some initial steps toward improving the measurement of ethical evaluations of marketing activities. Journal of business ethics, 7, 871-879. Reidenbach, R. E., and Robin, D. P. (1989). Toward the development of a multidimensional scale for improving evaluations of business ethics. Journal of business ethics, 9, 639-653. Reidenbach, R. E., Robin, D. P., and Dawson, L. (1991). An application and extension of a multidimensional ethics scale to selected marketing practices and marketing groups. Journal of the academy of marketing science, 19, 83-92. Reshef, A. (2001). The need for business success versus moral principles – how do managers settle between the two? Human resources, 20-27. Sawyer, A. G., and Howard, D. J. (1991) Effects of omitting conclusions in advertisements to involved and uninvolved audiences. Journal of marketing research, 28, 467-474. Skyes, G. M., and Matza, D. (1957). Techniques of neutralization: A theory of delinquency. American sociological review, 22, 664-670. Smith, J. (March 7th, 2003). Software piracy costs business billions. USA Today, available online at: http://www.usatoday.com/tech/columnist/ccjoel026.htm. Srnka, K. J. (2004). Culture’s role in marketers’ ethical decision making: An integrated framework. Academy of marketing science review, available online at: http://www.amsreview.org/articles/srnka01-2004.pdf. Tan, B. (2002). Understanding consumer ethical decision making with respect to purchase of pirated software. Journal of consumer marketing, 19, 96-111. Vitell, S. J., and and Muncy, J. (1992). An empirical investigation of factors influencing ethical judgments of the final consumer. Journal of business ethics, 11, 585-597.

Purchasing Illegal Copies of Movies’ Videos as an Unethical Consumer Behavior 259

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Wagner, S. C., and Sanders, G. L. (2001). Considerations in ethical decision-making and software piracy. Journal of business ethics, 29, 161-167. Wee, C.-H., Tan, S.-J., and Cheok, K.-H. (1995). Non-price determinants of intention to purchase counterfeit goods: An exploratory study. International marketing review, 12, 19-46.

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INDEX

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A ABC, 111, 152, 166 academic, 3, 119 accessibility, 93, 99, 229, 230 accountability, 25, 72 accounting, 111, 227, 228, 236, 237 Ach, 208 activation, 26 activism, 8 ad hoc, viii, 49 Adams, 183 adjustment, 203 administration, 54, 109 administrative, 53 adolescents, 67, 91, 222 adult, 173 adults, 89, 92, 93, 103, 180, 191 advertisement, 109 advertisements, ix, 87, 106, 258 advertising, ix, 2, 6, 22, 24, 26, 63, 65, 102, 103, 106, 108, 113, 191, 205 advocacy, 18 aesthetics, 37, 127, 242 affective reactions, 205 Africa, 27 afternoon, 132 age, 36, 50, 88, 92, 93, 103, 111, 121, 157, 170, 171, 173, 174, 179, 180, 201, 217, 257 agent, 50, 136, 138, 154, 155 agents, 8, 136, 138, 241, 246 AGFI, 15, 16, 220 aggregates, 130 aggression, 196 aging, 170 agricultural, viii, 63, 64, 65, 67, 72, 83, 88, 102 agriculture, 88, 92 aid, xii, 156, 213

air, 15, 93, 253 algorithm, vii, x, 129, 130, 131, 132, 135, 137, 138, 139, 140, 141, 143, 144, 146, 149 alkaloids, 109 alpha, 94, 95, 160, 203, 253 alternative, ix, xiii, 23, 50, 51, 89, 105, 106, 107, 108, 110, 113, 114, 153, 154, 155, 156, 172, 199, 204, 231, 239, 240, 241, 242, 244 alternative medicine, ix, 105, 106, 107, 108, 110, 113, 114 alternatives, xi, 12, 89, 91, 151, 153, 155, 223, 244 altruism, 8, 9, 26 altruistic behavior, 24 ambiguity, 164, 230 ambivalence, 164, 167 American Psychological Association (APA), 194, 195 Amsterdam, 61 anabolic, 108 anabolic steroid, 108 anabolic steroids, 108 analysis of variance, 158 analytical framework, 240 animal welfare, ix, 63, 69, 73, 79, 83, 88 animals, 66, 69, 94 ANOVA, 203, 206 antecedents, xiv, 8, 9, 211, 250 anxiety, 172, 183 AOC, 45 application, 47, 84, 129, 152, 156, 158, 162, 166, 222, 235, 257, 258 appraisals, 19 archeology, 127 argument, 241, 243, 252 arithmetic, 242 ash, 199, 200 Asia, 26 assessment, 4, 5 assimilation, 204, 208

262

Index

assumptions, xiii, 81, 136, 198, 227, 239, 247 asymmetry, 70 atmosphere, ix, 63 attitudes, vii, ix, xiii, xiv, 2, 7, 8, 11, 12, 23, 25, 26, 33, 36, 65, 68, 75, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 208, 216, 220, 221, 231, 249, 250, 251, 252, 253, 255, 257 attractiveness, xi, 151, 190, 231 Australia, 1, 28 Austria, 61 authority, 52, 70 automaticity, 229 availability, ix, 54, 74, 77, 87, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 114 avoidance, 99, 255, 256 awareness, viii, 6, 7, 12, 20, 28, 63, 64, 92, 100, 209, 227

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B backfire, 192 banking, 215, 224 bargaining, 52, 130, 247 barrier, 70, 90, 98 barriers, 64, 89, 90, 98 basic needs, 185 beef, viii, 63, 64, 65, 66, 67, 73, 75, 103 beer, xii, 197, 198, 201, 202, 203, 205, 207 behavior, iv, vii, viii, xii, xiii, 1, 2, 3, 6, 8, 9, 10, 11, 12, 13, 14, 17, 18, 23, 24, 25, 26, 63, 64, 67, 68, 78, 102, 107, 110, 119, 124, 127, 149, 152, 171, 180, 185, 193, 195, 196, 198, 200, 210, 214, 215, 216, 217, 220, 221, 222, 223, 224, 225, 228, 232, 234, 235, 236, 239, 240, 241, 242, 247, 248, 250, 251, 252, 253, 255, 256, 257, 258 behavioral effects, 236 behavioral intentions, 216, 250, 251 behavioral sciences, 166, 193 behaviours, 25, 100 Belgium, 87, 91, 92, 103 beliefs, 7, 10, 65, 67, 68, 78, 79, 81, 83, 91, 98, 99, 100, 189, 215, 217, 218, 221, 243 benchmark, 242 benchmarking, 6 benefits, vii, x, xii, 7, 33, 69, 72, 74, 79, 92, 93, 99, 108, 109, 117, 155, 192, 193, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 256 bias, 13, 25, 53, 54, 191 bilingual, 252 biodegradable, 9 bipolar, 93, 202 blame, 67, 73 blocks, 34

blood, 31, 182 blood pressure, 31 bonding, 118, 188 bonds, 196 borrowing, 236 Boston, 102 bounds, 130, 135 brand image, viii, 63 brand loyalty, 32 Brazil, 28, 31 breathing, 172 broadband, 170 bronchitis, 171 Brooklyn, 105 bubble, 31 building blocks, vii, 1 bundling, 234, 237 burning, 258 business ethics, 215, 258, 259 buttons, 99 buyer, 51, 53, 198 by-products, 5

C caffeine, 110 caloric intake, 69 CAM, 107 campaigns, 28 Canada, 28, 31, 75, 111, 115 cancer, 114 capacity, 25, 100, 130, 131, 134, 188, 242, 248 capital markets, 2 cardboard, 14 care model, 183 case study, 60 categorization, 158, 236 category a, 50, 201, 203 category d, 227 causal attribution, 19 causal relationship, 216 CBS, 111 cell, 56, 206, 214 Census, 53 CEO, 25 certifications, 67 CFA, 14, 15, 16 CFI, 15, 220, 253, 254 channels, 29 charities, 10 cheese, 35 chicken, 67, 73 children, 36, 37, 65, 69, 191, 195

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Index China, 31 Chi-square, 174 cholesterol, 31, 69, 79 Christmas, 230 chronic disease, 170, 171, 173, 181, 183 chronic diseases, 170, 171 chronic illness, xi, 169, 171, 181 chronic obstructive pulmonary disease, vii, xi, 169, 182, 183, 184 cigarettes, 201 CINAHL, 107 citizens, 65, 88, 174 classes, 50, 51 classical, 89, 91 classification, 52, 53, 154 classrooms, 223 clinical trial, 110 closed-loop, 130 CME, xi, 169, 172, 173, 184 Co, 24, 29, 149 coalitions, 52 coatings, 5 cocaine, 110 Cochrane, 183 codes, 40, 43 coding, 40, 43, 54, 138 coffee, 102 cognition, 7, 12, 101, 126, 193, 196, 231, 233, 251, 256 cognitive, 9, 11, 18, 19, 32, 46, 91, 98, 120, 156, 157, 198, 200, 205, 207, 214, 233, 235, 251, 257 cognitive dissonance, 251, 257 cognitive effort, 9, 91, 98, 200 cognitive load, 205 cognitive map, 32 cognitive process, 11, 157, 207, 233 cognitive tasks, 18 cohesion, 52 collaboration, 66 collectivism, 256 college students, 112 colon, 110 Columbia, 46 Columbia University, 46 commerce, 106, 108 commodity, 32 communication, 11, 33, 51, 70, 99, 100, 118, 122, 124, 125, 127, 128, 136, 167 communication strategies, 99 communities, x, 117, 118, 120, 121, 124, 126, 127, 128 community, x, 74, 88, 115, 117, 118, 119, 120, 121, 123, 124, 126, 127, 128, 186, 252

263

competence, 171 competition, 131, 133, 139, 140, 141, 144, 148, 189 competitive advantage, 6, 83 competitiveness, 2 complement, 7, 19 complementarity, 130 complexity, x, 52, 65, 93, 151, 230, 233 complications, 65, 75 components, 52, 53, 56, 72, 94, 95, 96, 97, 242, 246, 251 composition, x, 14, 117, 126, 209 compounds, 110 computer self-efficacy, 250, 258 computer software, 256 computing, 56, 223 conceptual model, 19 conceptualization, 7, 18, 119, 251 conceptualizations, 101, 120 concrete, 76, 83, 162, 228, 243 concreteness, 156 conditioning, 12, 18 condom, 224 confidence, 64, 67, 72, 73, 83, 103, 155, 171, 172 confidentiality, 120, 217 confirmation bias, 198 confirmatory factor analysis, 14, 15, 220 conflict, 52, 59, 75, 123, 193, 235 Congress, 85 congruence, 11 conjecture, 204 consciousness, 33, 100, 121, 123, 126 consensus, 240 consent, 109 conservation, 5, 7, 10, 12, 88, 155 constraints, 130, 131, 133, 136, 156 construct validity, 15 construction, 14, 23 constructivist, 225 consumer choice, viii, x, 12, 27, 151, 152, 153, 155, 156, 157, 159, 160, 161, 162, 163, 237, 247 consumer expenditure, 242 consumer goods, 153 consumer markets, 32 consumer surplus, 72, 83 consumerism, 257 Consumerism, 61, 103 consumption, vii, viii, ix, 1, 3, 8, 9, 10, 12, 13, 14, 17, 18, 27, 28, 29, 30, 32, 33, 34, 35, 36, 37, 42, 44, 45, 50, 63, 64, 65, 69, 72, 74, 75, 79, 81, 87, 88, 89, 90, 91, 92, 93, 95, 97, 98, 99, 103, 128, 188, 194, 195, 196, 227, 228, 230, 231, 232, 233, 234, 236 consumption frequency, 42

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264

Index

consumption habits, 92 consumption patterns, viii, 63, 64, 89 contamination, 66 contiguity, 230, 236 contingency, 56 contraceptives, 108, 114 contracts, 131, 247 control, vii, xi, 19, 68, 81, 89, 90, 91, 92, 93, 94, 99, 100, 128, 169, 173, 174, 177, 179, 195, 209, 256 control condition, 93 control group, 173 conversion, 200, 204, 209 convex, viii, 28, 42, 44 cooking, 33, 37, 38, 73, 83, 122 COPD, vi, vii, xi, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 182, 183 Coping, 170 corn, 29, 30 corporate responsibility, 101 corporate social responsibility, 25 corporations, 18, 19 correlation, 55, 95, 98 correlations, 13, 14, 15, 186, 202, 203, 220 cosmetics, 108 cost curve, 134 cost saving, 7, 155 costs, vii, xii, 65, 73, 110, 134, 171, 181, 182, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 246, 256, 258 cotton, 29, 30 counterfeit, 258, 259 counterfeiting, xiii, 249, 257 country of origin, 33, 34, 198, 211 couples, 51 coupling, 228 Cournot, 149 coverage, 64, 67, 119 creativity, 23 credibility, 119 credit, 111, 157, 230, 231, 233, 234, 237 credit card, 111, 230, 231, 234, 237 cross-cultural, 187, 209 cross-cultural comparison, 209 cross-sectional, 179 cues, 9, 154, 164, 198 cultural differences, 194 cultural influence, 8 cultural norms, 250 culture, 5, 11, 18, 19, 24, 124, 185, 189, 191, 194, 195 currency, xii, 197, 198, 199, 200, 203, 204, 205, 206, 207, 208, 209 current prices, 42, 44

customer preferences, 55 customers, 2, 21, 108, 110, 121, 129, 131, 201, 214, 221 cyberspace, 127, 128

D dairy, ix, 87, 93, 95, 96, 97, 100, 101 dairy products, 93, 95, 96, 101 data analysis, xii, 213, 257 data collection, 29, 107 database, 106 death, 171, 188, 194, 195 debt, 236 decision makers, 50, 67, 76, 152, 161, 163 decision making, x, 26, 50, 51, 52, 59, 92, 98, 101, 151, 152, 153, 154, 155, 235, 236, 243, 248, 258 decision task, 152 decision-making process, viii, 49, 50, 51, 59, 88, 91, 97, 241 decisions, ix, xi, 2, 3, 4, 6, 9, 19, 21, 22, 23, 29, 49, 50, 51, 52, 59, 63, 65, 67, 68, 69, 73, 74, 75, 78, 79, 83, 88, 91, 92, 98, 152, 155, 160, 164, 205, 208, 227, 234, 236, 237, 242, 248, 258 decoding, 119 decomposition, 237 decoupling, 237 deduction, 41 defenses, 114 definition, x, 4, 7, 53, 117, 120, 131, 133, 137, 139, 181 degradation, 7 degrees of freedom, 15 delinquency, 258 delivery, 108, 132 Delphi, 33 demand curve, 130, 132, 209 demographic characteristics, 8, 34, 231 demographics, 23, 33, 119, 195, 252 denial, 195 Denmark, 132 Department of Agriculture, 65, 84, 85 dependent variable, 35, 40, 95, 160, 202, 203, 207, 221 depreciation, 230, 234, 236 depression, 172 destruction, 10 devaluation, 186 deviation, 258 diabetes, 181 Diamond, 9, 23, 186, 194 diet, 28, 31, 41, 44, 78, 79, 81 dietary, viii, 27, 37, 108, 110, 114

Index dietary habits, 37 direct measure, 228 direct-to-consumer, 106 direct-to-consumer advertising, 106 disability, 181 disclosure, 110 diseases, 31, 170, 171, 182 Disease-specific, 183 dissatisfaction, 124 distribution, 28, 29, 33, 35, 51, 54, 252 distributive justice, 247 disutility, 232, 233 diversity, 8 diving, 125 division, 34 doctors, ix, 63, 70, 82, 175, 176 domestic markets, 64 dominance, 188, 205 donations, 189 download, 106 downsizing, 108 draft, 119 dream, 194, 195 drug interaction, 109, 110 drugs, 111, 114 DuPont, 7 duration, 52, 231 duties, 4, 6, 12 dyspnea, 172, 182, 183

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E E. coli, viii, 63, 64, 66, 67, 69, 70, 76, 77, 81, 82 eating, 38, 65 ecological, 7, 23, 24, 88, 93, 99, 101, 102, 164, 187 Ecological Economics, 103 e-commerce, 106, 108, 115 economic growth, 31 economic losses, 64, 66, 77 economic psychology, 240 economic theory, 240 economics, 73, 193, 247, 248 economies of scale, 65 ecosystem, 186 Education, 24, 37, 45, 69, 101, 102, 114, 252 educational programs, 4, 171 educators, 257 egoism, 8 e-health, 114 elaboration, 210, 241 elasticity, 129 elderly, 222 E-learning, 214

265

electric utilities, 149 electricity, vii, x, 129, 130, 131, 139, 140, 148, 149 emerging markets, 28, 30, 33 emotional, viii, 49, 65, 120, 198, 207 emotional processes, 207 emotions, 125, 126, 171 emphysema, 171 employees, 2, 4, 5, 6, 11, 12, 13, 14, 21, 24 empowerment, 182 Encoding, 210 end-users, 67 energy, 5, 7, 12, 131, 134, 135, 140, 141, 143, 144, 145, 147, 149 England, 167 enthusiasm, 124 entrepreneurs, 88 environment, 2, 3, 4, 5, 6, 7, 8, 9, 10, 14, 20, 35, 56, 60, 79, 88, 92, 93, 97, 100, 106, 121, 134, 138, 152, 156, 167 environmental audit, 5, 12, 14, 21 environmental awareness, 12, 20 environmental degradation, 7 environmental impact, 4, 5, 6, 9, 11, 12, 18, 20, 21 environmental issues, 2, 3, 5, 6, 7, 8, 9, 11, 12, 13, 14, 19, 20, 21 environmental policy, 4, 12 environmental protection, 6, 7, 12, 18, 235 environmental resources, 103 environmental standards, 12, 14, 21 environmentalism, vii, 1, 2, 3, 6, 22, 23, 25 EPA, 24 epidemic, 194 equilibrium, x, 33, 129, 130, 135, 136, 138, 141, 143, 144 equilibrium price, 130, 135, 136, 141, 143, 144 equity, 248, 250, 251, 253, 255, 256 estimating, 39, 153 ethics, vii, xiii, xiv, 120, 215, 249, 250, 251, 255, 257, 258, 259 ethnic minority, 52 etiquette, 122 Euro, xii, 197, 199, 200, 204, 206, 207, 208, 209, 210 Europe, 26, 31 European Americans, 192 European Commission, 84 European Union, 45 evening, 125 evolution, 2, 3, 140, 144, 145, 148, 152, 166, 186, 188, 193, 194, 221 evolutionary games, vii, x, 129, 131, 137, 138, 139, 149 evolutionary principles, 193

266

Index

evolutionary process, xii, 185, 186 exchange rate, 199 exclusion, 106, 122, 196 expenditures, xiii, 69, 239, 242, 243, 244, 246, 247 experimental condition, 91, 199, 201 experimental design, ix, 87, 235 expert, iv, 158, 216 expertise, 33, 122 exporter, viii, 27 exports, 45 exposure, 11, 19 external validity, 256 extra virgin oliv, 33, 35, 37 extraction, 94 extrapolation, 41

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F face-to-face interaction, 106 factor analysis, 14, 15, 94, 220 failure, 211 fairness, xiii, 113, 239, 240, 241, 242, 243, 244, 245, 246, 247, 248, 250 fairness judgments, 243, 244, 246 fair-trade, 88 faith, 101 family, xii, 49, 50, 51, 52, 53, 59, 60, 68, 72, 77, 78, 79, 83, 93, 98, 99, 128, 197, 213, 214, 216, 221, 222, 231 family life, 51 family members, xii, 50, 51, 52, 59, 83, 213, 214, 216, 221, 222 farmers, 74, 79, 81, 99 farming, 103 farms, 30, 99 fat, 69, 79 fatigue, 35 fear, 187, 195 fears, 66 February, 25, 107, 110, 173 feelings, 125, 171, 174, 177, 178, 242 fees, 230 females, xii, 36, 69, 92, 120, 185, 189, 190, 191, 192, 252 femininity, 256 fertility, 190 Fife, 65, 84 films, 253 finance, 224 financial performance, 2, 19 fines, 8 Finland, 132 firm size, 18, 19

firms, ix, 4, 5, 6, 7, 12, 13, 18, 19, 64, 65, 67, 69, 70, 72, 73, 77, 78, 81, 82, 83, 255, 256 first dimension, 56, 57 fish, 35, 45 fitness, 136, 137, 139, 140, 141, 143, 144, 146, 147, 220 flavor, 31, 79 float, 121 flow, 118, 120, 121, 122, 141 flow experience, 118, 120 flu shot, 175, 179 fluoxetine, 109 focus group, 118 focus groups, 118 focusing, 65, 172, 192 food, vii, viii, ix, 10, 24, 28, 29, 31, 35, 46, 47, 50, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 87, 88, 89, 90, 92, 93, 99, 100, 101, 102, 103, 154, 190, 223 Food and Drug Administration (FDA), FDA, 66, 73, 110, 112 food industry, 28, 103 food production, 73, 74, 88, 91, 100 food products, 29, 35, 46, 47, 65, 68, 78, 88, 89, 93, 99, 102 food safety, vii, viii, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 76, 77, 80, 81, 82, 83, 84 foodstuffs, 28, 45, 47 Ford, 165 forests, 5 forgiveness, 123 Fox, 180, 181 framing, 164, 232, 248 France, 31, 32 free will, 210 freedom, 15, 157 frying, 38 fuel, 166 functional approach, 2 furniture, viii, 49, 59

G Gallup, 209 game theory, 129, 130, 131, 138, 149, 152, 248 games, vii, x, xiv, 129, 130, 131, 137, 138, 139, 149, 250, 258 gas, 10 gender, 36, 93, 120, 121 gene, 67, 82, 187 General Motors, 202 generalization, 83 generalizations, 67, 82

Index generation, 130, 214, 223, 240 genes, 187, 189, 190 genetic algorithms, 138, 139 genetically modified organisms, 88 geography, 118 Ger, 107, 111, 113, 114, 187, 194 Germany, xii, 101, 111, 114, 197, 200, 204, 208 gestation, 189 GFI, 15, 16, 220 gift, 174, 247 gift card, 174 glass, 14 goals, 3, 4, 7, 10, 12, 19, 20, 21, 22, 52, 91, 194, 195 God, 122 goodness of fit, xi, 151, 161, 220, 222 government, 19, 31, 65, 70, 83, 88, 257 graduate students, xii, 213, 217, 252 graffiti, 120 Greece, 31, 32, 35, 239 groups, viii, ix, xii, 27, 42, 43, 44, 64, 69, 71, 83, 159, 160, 172, 173, 174, 177, 179, 185, 187, 188, 190, 191, 193, 194, 195, 200, 214, 222, 223, 235, 255, 258 growth, 2, 5, 31, 33, 74 guidance, 5, 119, 255 guidelines, x, 4, 73, 81, 113, 151, 156, 179, 180, 253

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H H1, 6, 16, 17, 200, 203, 217, 220, 250, 253 H2, 7, 16, 17, 201, 203, 217, 220, 251, 253 Haifa, 117, 249 Haiti, 46 handling, 73, 74, 81, 83 hardness, 109 harm, 20, 52 harmony, 52 Harvard, 25, 61 harvesting, 5 health, vii, viii, ix, 10, 27, 28, 31, 35, 38, 64, 69, 70, 71, 77, 78, 79, 82, 88, 93, 100, 105, 106, 107, 108, 110, 111, 113, 114, 115, 155, 171, 172, 173, 174, 175, 176, 179, 180, 181, 182, 183, 184, 190 health care, xi, 105, 106, 115, 169, 170, 171, 172, 174, 179, 180, 181, 182 health care costs, 171, 181 health care professionals, 106, 174 health education, 181, 183 health information, 105, 106, 111, 174, 180, 182, 183 health insurance, 106 health status, 171, 175, 176 hearing, 83

267

heart, 124, 181, 182, 183 heart disease, 181 heart failure, 182 Hebrew, 120, 121, 252 hedonic, 232, 233 heme, 119, 123 Hepatitis A, 74, 84 herbal, 106, 109, 110, 114, 115 heterogeneous, 100 heuristic, x, 151, 152, 154, 156, 160, 163, 166, 198, 207, 209 heuristic processes, 154 heuristic processing, 207 high risk, 109 high school, 37 higher education, 92, 222 higher quality, 83, 171 hiring, 11 Hispanics, 183 holistic, 156, 161 Holland, 3, 8, 26 homogenous, 100 Honda, 165, 166 hospitalizations, 171 hospitalized, 76, 81 hospitals, 106 House, 127 household, 36, 37, 50, 52, 59, 69, 73, 82, 83, 102, 103, 111, 174, 175, 242 household income, 111 household waste, 102 households, xiii, 49, 52, 53, 59, 67, 73, 92, 239 human, xii, xiii, 8, 10, 23, 24, 35, 88, 123, 152, 181, 185, 186, 187, 188, 189, 191, 192, 193, 195, 199, 214, 215, 239, 240, 242, 246 human agency, 181 human behavior, 10, 214, 215, 240 human motivation, 189, 193 human nature, 187, 188, 189, 195 human resource management, 23, 24 human resources, 24 human values, xiii, 195, 239, 240, 246 humanity, 191 humans, xii, 94, 185, 187, 188, 189, 192 husband, 36, 51, 52 hypothesis, xiii, 2, 11, 17, 53, 54, 91, 95, 145, 154, 155, 156, 158, 160, 162, 163, 167, 192, 200, 201, 203, 204, 206, 208, 210, 239, 242, 255 hypothesis test, 210

I ice, 200

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268

Index

id, 207 identification, 31, 37, 103 identity, 88, 100, 204, 258 ideology, xi, 151 Illinois, 185, 247 illness care, 181 illusion, 209 images, ix, 63, 64 imaging, 109 imitation, 11, 136 immersion, 119 implementation, 2, 3, 4, 5, 6, 18, 25, 46, 131, 166 imports, 28, 31, 32, 65 impulsive, 207 in situ, 123, 207 incentives, 4, 8, 72 incidence, 236 inclusion, 100, 106, 196 income, 33, 36, 37, 51, 52, 53, 92, 111, 130, 131, 137, 146, 147, 148, 170, 235, 246 incomes, 69, 130, 252 independent variable, 35, 161, 203, 207 India, 223 indication, 41, 45 indicators, 14, 16, 23, 189 indices, 15, 188, 220, 223 individual action, 101 individual character, ix, 8, 87, 89, 91 individual characteristics, ix, 8, 87, 89, 91 individual differences, 8, 185, 187, 189, 192, 194, 221, 232 individual perception, 14, 243 individualism, 256 industrial, 23, 188 industry, xiii, 13, 18, 19, 22, 26, 28, 32, 64, 73, 81, 82, 103, 105, 126, 248, 249, 255, 258 inertia, 56, 137, 198 infancy, 214 inferences, 2 inflation, xii, 197, 199, 209 information age, 103 information asymmetry, 70 information processing, 60, 152, 153, 207, 208, 209 information processing theory, 60 information seeking, 179 Information System, 223 information technology, 215, 223 infrared, 109 infrastructure, 2 initiation, 8 injection, 131, 132 injury, iv, 187 injustice, 255

innovation, 4 insecurity, 188, 194 insight, 28, 92, 152, 246 inspection, 65, 72, 85, 160 instinct, 167 instruments, 72 insurance, 13, 106, 157 insurance companies, 106 intangible, xiii, 239 integration, 6, 236 integrity, 119 intelligence, 189 intensity, 229 intentions, ix, xii, 7, 67, 69, 87, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 200, 213, 214, 224, 256, 257 interaction, 10, 130, 136, 137, 149, 161, 198, 201, 204, 206, 207, 208, 210, 235 interaction effect, 161, 201, 208 interactions, 11, 50, 109, 118, 119, 120, 193, 228 interactivity, x, 117, 120 interdisciplinary, 211, 240 interface, 107 interference, 92 internal consistency, 203 internal environment, 1, 3, 6, 10, 11, 17 internal value, 5 internalization, 195 International Trade, 213 Internet, v, vii, ix, x, xi, 33, 64, 70, 71, 76, 83, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 117, 118, 121, 126, 127, 169, 170, 171, 172, 179, 180, 181, 182, 183, 184, 215, 224, 255 interpretation, 55, 56, 59, 208, 232 interval, 42, 54, 144, 224 intervention, 8 intervention strategies, 8 interview, 25, 53, 54 interviews, 52, 118 intrinsic, 8, 12, 187, 194, 195, 198, 210 intrinsic motivation, 8, 12 intuition, 231 invasive, 53 investment, 190, 231, 232 investors, 2 iris, 87 irrigation, 66 island, 30 ISO, 4, 23, 131, 132, 133, 135 isolation, 11, 50, 89, 256 Israel, x, xiv, 117, 126, 249, 250, 252, 256 Italy, viii, 27, 29, 30, 31, 32, 34, 35, 40, 41, 42, 43, 44, 45, 49, 52, 54, 60, 61, 84, 85, 135

Index iteration, 147

J JAMA, 115, 180, 181 Japan, viii, 27, 28, 29, 30, 31, 32, 33, 34, 44, 45, 46, 65, 84, 85 Japanese, v, viii, 27, 29, 31, 32, 34, 36, 37, 39, 41, 44, 45 jobs, xiii, xiv, 249 Jordan, 107, 110, 113, 114 judge, 100 judgment, vii, xii, 32, 152, 153, 197, 199, 210, 244 judgmental heuristics, 207 Jung, 198, 209 justice, 8, 247, 250 justification, 65, 231, 234

K Kentucky, 63, 67

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L labeling, 83, 85 labour, 52 lactation, 189 Lagrange multipliers, 136 land, 10, 101 landfills, 10 language, 120 laughing, 122, 125 law, 31, 113 learning, vii, xii, 23, 111, 131, 136, 138, 149, 171, 185, 187, 189, 190, 192, 195, 213, 214, 215, 216, 217, 218, 220, 221, 222, 223, 224, 225 learning environment, 214, 225 learning process, 131, 136 leather, 233 Lebanon, 35 legal issues, 112 legislation, 64, 65, 72 leisure, 196 lens, ix, 105, 107, 108 lenses, 112, 113, 114 lettuce, 66 life cycle, viii, 51, 63, 64 lifelong learning, 199 lifespan, 170 lifestyle, 31, 186, 218 lifestyles, 50, 59, 189 likelihood, 39, 80, 81, 83, 154, 156, 210, 220, 231

269

Likert scale, 37, 67, 69, 71, 93, 174 limitation, 19, 101, 109, 110, 171, 256 limitations, 111, 120, 126, 179 linear, viii, xiii, 27, 39, 41, 43, 55, 57, 60, 130, 131, 134, 135, 153, 155, 215, 240 linear function, 134, 215 linear regression, 153 linkage, 227 links, 3, 18, 32, 67, 111, 189, 254 literacy, 111, 113 litigation, 247 living environment, 88 local government, 70 localised, 99 location, 41, 158 London, 61, 102, 181, 225, 227 long period, 133, 139, 148 longitudinal study, 223 losses, viii, xiii, 63, 64, 66, 135, 249 lotteries, 8 love, 192 loyalty, 32, 91, 121, 126 LSD, 110 lung, 110, 171, 182 lung disease, 171 lying, 132

M magazines, 20 magnetic, iv mainstream, 242 Maintenance, 26 maize, 29, 30 males, xii, 36, 92, 120, 185, 189, 190, 191, 252 malnutrition, 191 management, 6, 54, 103, 118, 120, 157, 170, 171, 176, 177, 180, 181, 182, 183, 225 manifold, 232, 235 manipulation, ix, 87, 94, 95, 96, 100 manners, 91 MANOVA, 161 manufacturer, ix, 105, 107, 108, 111 manufacturing, 5, 12, 13, 25 mapping, 89 marginal costs, 134 marginal utility, 242 market, vii, viii, ix, x, 2, 4, 27, 30, 31, 32, 33, 34, 35, 41, 45, 47, 49, 53, 54, 55, 59, 60, 63, 64, 67, 73, 88, 102, 105, 113, 129, 130, 131, 132, 133, 134, 135, 136, 137, 139, 140, 141, 143, 144, 145, 148, 149, 255 market segment, 113

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270

Index

market share, 31, 41, 45, 64, 73, 88, 102 market structure, 131 marketing, vii, viii, ix, x, xiii, 2, 3, 4, 6, 10, 11, 12, 14, 17, 18, 25, 26, 32, 33, 34, 35, 44, 46, 47, 59, 63, 64, 65, 66, 75, 87, 100, 105, 106, 114, 115, 117, 118, 121, 126, 127, 128, 237, 249, 251, 252, 253, 255, 257, 258, 259 marketing strategy, 25, 26 marketplace, ix, 87, 89, 186, 241, 255 markets, 28, 33, 46, 59, 64, 65, 67, 74, 81, 99, 131, 132, 149 marriages, 51, 191 masculinity, 256 Massachusetts, 1 mastery, 171 material resources, 185, 186, 187, 190, 191 materialism, 186, 187, 188, 189, 190, 191, 192, 193, 194, 195, 196 mathematical programming, 130 matrix, 56, 155 maximum price, 42, 44, 199 MCA, 56 meals, 81 meanings, 120 measurement, 24, 45, 47, 195, 228, 247, 253, 258 measures, 15, 16, 64, 69, 72, 73, 81, 101, 130, 159, 160, 161, 163, 215, 216, 220 meat, ix, 63, 65, 66, 67, 69, 71, 72, 73, 74, 78, 79, 81, 82, 85, 103 media, ix, 26, 63, 64, 66, 67, 70, 72, 78, 82, 83 median, 37, 54, 110 mediators, xiii, 249, 251 Medicaid, 105, 114 medical care, 38 Medicare, 105, 114 medication, 106, 110, 112, 183 medications, 108, 111, 115 medicine, ix, 105, 106, 107, 108, 110, 113, 114 Mediterranean, viii, 27, 28, 29, 31, 34, 40, 41, 42, 43, 44, 45, 47 Mediterranean countries, 31 Medline, 107 membership, 124 memory, 237 men, 33, 36, 179, 189, 190, 192 mental health, 192 messages, x, 100, 111, 117, 120, 124, 191 meta analysis, 224 meta-analysis, 24, 102, 182, 183, 211 metaphors, 11 metric, 54 Mexico, 28, 74, 75 microeconomic theory, 240

minimum price, 134 minorities, 192 minority, 52, 89, 100 mirror, 3 misleading, 109, 110, 119, 121, 190 misleading statements, 110 MIT, 166, 194, 236, 258 M-learning, vii, xii, 213, 214, 215, 216, 217, 218, 220, 221, 222, 223 mobile device, 214, 217, 224 mobile users, 214 mobility, 231 modeling, xii, 131, 171, 213 models, viii, xiii, 9, 14, 16, 24, 27, 33, 39, 47, 91, 138, 153, 155, 211, 222, 223, 228, 239, 240, 242, 253 moderating factors, 19 moderators, 101, 207, 235 monetary union, 210 money, 8, 32, 73, 74, 78, 79, 83, 109, 113, 114, 185, 186, 189, 199, 200, 230, 231, 233, 234, 237, 241, 242, 244, 246 Monroe, 198, 209, 244, 248 mood, 110 moral behavior, 258 morals, vii, xiii, xiv, 249, 250, 255 morning, 119, 132 mortality, 182, 190, 195 mortality rate, 190 motivation, xii, 8, 12, 98, 111, 188, 189, 193, 207, 208, 213, 215, 216, 217, 218, 221, 229, 231, 240, 242 motives, xii, 23, 185, 187, 188, 189, 192, 196 mouse, 124 mouth, 125 multidimensional, 2, 22, 243, 258 multiple regression, ix, 87, 97 multiple regression analysis, ix, 87, 97 multiplication, 229 multiplicity, 8, 28 multiplier, 19, 135 multiplier effect, 19 multivariate, 158, 180 mushrooms, 110 music, xiii, xiv, 249, 250, 256 music CDs, xiii, xiv, 249, 250 music industry, xiii, 249 mustard oil, 29, 30 mutation, 136, 138, 144

N narcissism, 188, 195

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Index Nash, vii, x, 129, 130, 131, 136, 138, 149 Nash equilibria, 149 Nash equilibrium, vii, x, 129, 131, 136, 138 natural, xii, 7, 10, 24, 88, 111, 114, 121, 140, 185, 186, 187, 189, 191, 192 natural environment, 7, 10, 88 natural selection, xii, 185, 187, 189 NBC, 111 negative attitudes, 251, 252, 255 negative consequences, 100, 195 negotiation, 52, 188 Netherlands, 61 network, 130, 135, 136, 225 networking, 128 neuroscience, 194 neutralization, 257, 258 New England, 149 New Jersey, 26, 45, 194, 196 New York, iii, iv, 23, 25, 26, 46, 60, 61, 66, 84, 102, 103, 105, 127, 128, 166, 167, 169, 193, 194, 195, 196, 209, 210, 247, 248, 258 New York Times, 66, 84 newsletters, 4, 14 newspapers, ix, 64, 70, 77, 83 Newton, 181 next generation, 25, 92 NFI, 220, 253, 254 NGOs, 3, 10 niche market, 28 Nielsen, 9, 24, 156, 167 NNFI, 220, 253, 254 nodes, 221 nonlinear, xiii, 154, 239, 242, 243, 246 non-linearities, 242 normal, 35, 54, 126, 138 normal distribution, 35, 54 normative behavior, 251 norms, 5, 6, 8, 9, 11, 12, 18, 25, 78, 83, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 122, 196, 224, 250 North Africa, 27 Norway, 132 nutrition, 28, 31, 110, 114

O observations, x, 40, 117, 118, 119, 162 occupational, 189 Oceania, 132 oil, viii, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47 oils, 29, 30, 31, 37, 38 older adults, 180

271

olive, viii, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 44, 45, 46, 47 olive oil, viii, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 44, 45, 46, 47 olives, 31 Oman, 35, 45 omission, 25 online, xi, xii, 106, 108, 109, 112, 113, 114, 118, 120, 121, 124, 126, 127, 128, 155, 169, 172, 173, 174, 175, 177, 178, 179, 180, 181, 183, 184, 213, 214, 217, 223, 258 online information, xi, 108, 169 openness, 191 operator, 130, 131, 132, 137 opportunity costs, 234 optimization, 130 oral, 108, 110, 251, 256 oral contraceptives, 108 organic, 2, 68, 74, 81, 88, 93, 97 organic food, 88, 97 organism, 154 organization, 4, 23 organizational culture, 18 organizations, ix, 4, 19, 22, 23, 64, 69, 77, 83, 106 orientation, vii, 1, 2, 3, 4, 5, 6, 7, 10, 11, 13, 14, 17, 18, 51, 52, 186, 187, 188, 195, 222, 256, 257 orthogonality, 39 outliers, 158 outrage, 66 over-the-counter, 108 ownership, 7, 253

P packaging, 9, 12, 21, 32, 88, 109 packets, 173 pain, 170, 228, 232, 233 pancreas, 110 paper, x, 3, 12, 14, 20, 21, 29, 33, 85, 89, 102, 117, 118, 120, 121, 126, 134, 137, 144, 157, 182, 196, 198, 205, 211, 223, 224, 236, 250 parameter, 39, 40, 41, 43, 220 parameter estimates, 41 parenting, 190 parents, 65, 144, 187, 189, 191 Pareto, 139 Paris, 45 partnership, 52 passive, 7 path analysis, 16 path model, 17 pathogens, 65, 67, 75, 82 pathways, 18

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272

Index

patients, xi, 109, 113, 114, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184 PCS, 13, 14, 15, 16, 17 pedagogical, 225 peer, vii, ix, 8, 11, 12, 68, 105, 106 peer review, vii, ix, 105, 106 peers, 9, 98, 99, 189, 191 perceived control, 90, 100 perceived norms, 224 perceived self-efficacy, 182 perception, 29, 31, 32, 38, 45, 65, 68, 78, 84, 88, 99, 110, 155, 196, 198, 200, 203, 204, 207, 209, 210, 215, 217, 222, 232 perceptions, xiii, 2, 14, 22, 23, 29, 47, 73, 99, 103, 172, 173, 174, 176, 177, 178, 182, 183, 199, 204, 205, 207, 208, 210, 223, 239, 240, 241, 242, 243, 244, 247, 250, 253 perceptions of control, 177 performance, 2, 4, 5, 6, 7, 12, 18, 19, 21, 25, 26, 90, 110, 139, 154, 164, 183, 221 permit, 19, 191, 256 personal, 8, 26, 50, 60, 65, 83, 90, 91, 93, 99, 100, 103, 118, 119, 128, 157, 158, 171, 182, 183, 188, 194, 199, 207, 214, 221, 224, 228, 229, 231, 233 personal benefit, 99 personal control, 90, 182 personal histories, 50 personal norms, 100 personal relations, 171 personal relationship, 171 personal values, 158 personality, 52, 121, 193, 195, 231 personality characteristics, 231 personality traits, 193, 195 persuasion, 52, 171, 191, 209 pesticide, 65 Petroleum, 11 pharmaceutical, ix, 105, 106, 108, 113, 114 pharmaceutical companies, 106, 113 pharmaceuticals, 13 pharmacies, ix, 105, 106, 108, 109, 112, 113, 114, 115 pharmacists, 115 philanthropy, 26 philosophy, 2, 3, 127 phone, 109, 199, 214 physical attractiveness, 193 physicians, xi, 109, 111, 113, 169, 172, 173, 174, 175, 179 physiological, 171, 194 pilot study, 182

piracy, vii, xiii, xiv, 249, 250, 251, 252, 255, 256, 258, 259 pirated, xiii, xiv, 249, 251, 258 planning, 3, 6, 14, 18, 20 plastic, 14 play, xi, 8, 12, 23, 52, 59, 83, 89, 102, 170, 171, 180, 192, 196, 221, 231 pleasure, 228, 232, 233 PLUS, 61 policy makers, 92, 99 politicians, 69, 191 pollution, 5, 10, 11, 93 pomace, 37, 41 pools, 149 poor, 14, 65, 89, 111, 121, 175, 176, 179, 190, 207, 231 population, 33, 53, 54, 67, 92, 130, 136, 137, 138, 139, 140, 141, 143, 144, 145, 146, 147, 148, 170, 179, 180, 208, 222 portfolio, 5 Portugal, 31, 35 positive attitudes, xii, 89, 90, 95, 96, 213, 222, 252 positive correlation, 95, 97, 188, 217 positive relation, 204 power, xii, 50, 52, 92, 129, 130, 131, 135, 149, 152, 159, 160, 161, 166, 213, 222, 256 power plant, 149 power plants, 149 pragmatic, 224 prediction, 97, 102, 201, 214, 224, 236 predictive accuracy, 154 predictors, 154, 167, 192 preference, xi, 7, 36, 41, 43, 44, 45, 151, 152, 156, 158, 161, 162, 163, 191, 192, 244, 245 pregnancy, 190 premium, xii, 109, 197, 200, 201, 202, 203, 204, 205, 207 preparedness, 187, 194, 195, 196 prescription drug, 111 prescription drugs, 111 pressure, 5, 12, 31, 51, 52, 68, 89, 97, 99, 155, 231 prevention, 5, 11, 31, 183 price changes, 144 price effect, 198 prices, xii, xiv, 34, 41, 42, 44, 65, 109, 110, 113, 130, 134, 136, 140, 145, 197, 198, 199, 200, 201, 202, 204, 205, 207, 208, 230, 237, 250, 251 primary care, 173, 181 primary data, 29 primate, 188, 195 priming, 211 prior knowledge, 93 privacy, 108, 121

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Index private, 8, 50, 120, 121, 123, 125, 126 privatization, 157 proactive, 5, 7, 18, 64 probability, viii, 27, 41, 42, 124, 138, 139, 144, 152, 153, 227, 245 problem solving, 4, 12, 52 producers, x, 45, 65, 72, 73, 129, 130, 131, 133, 134, 135, 139, 140, 141, 144, 145, 148, 149, 242 product attributes, 65 product design, 6 production, 30, 39, 64, 65, 88, 92, 93, 100, 108, 130, 134 profit, 88 profitability, 26 prognosis, 115 program, 4, 14, 21, 181, 182, 217 programming, 130, 131, 149 proliferation, 3 promote, 2, 4, 20, 21, 68, 100, 181, 196, 222, 230, 256 property, iv proposition, 136, 137, 138, 216 prosocial behavior, 196 prostate, 110 protection, 6, 7, 12, 18, 20, 72, 188, 190, 235 protocol, 158 proxy, 42 psychological phenomena, 193 psychological variables, 215 psychological well-being, 181, 186 psychology, vii, xii, 119, 157, 193, 194, 195, 196, 197, 198, 201, 210, 236 psychopathology, 194 PsycINFO, 107 public, ix, x, 2, 3, 6, 8, 18, 19, 25, 72, 73, 83, 87, 88, 99, 100, 103, 117, 119, 120, 121, 123, 125, 126, 151, 152, 154, 155, 156, 157, 159, 160, 161, 162, 163, 167, 204, 208, 210 public domain, 157, 161 public interest, 88 public opinion, 210 public policy, ix, 2, 3, 18, 19, 25, 87 public relations, 83 public schools, 73 public service, 83 pulmonary rehabilitation, 182 purification, 14, 21, 256

Q qualitative research, 34, 119, 127, 128 quality of life, 88, 171, 172, 180, 182, 183, 196 questioning, 112

273

questionnaire, viii, ix, xii, 13, 34, 44, 49, 54, 59, 87, 92, 109, 115, 213, 217 questionnaires, 92, 217, 252

R R and D, 6 race, 194 radical, 247 radicalism, 127 radio, 71 random, 13, 34, 53, 144, 145 range, 50, 54, 88, 145, 157, 159, 193, 215 rape, 29, 30 rating scale, 158 ratings, 2, 111, 158, 161, 165, 166, 201, 203, 204 rationality, 152, 154, 166, 210, 248 raw material, 4, 21 raw materials, 4, 21 RB1, 15 reading, 107, 109, 111, 231, 232 real time, 132 reality, xiv, 250 reasoning, 198, 207, 228, 231 recall, 42, 66, 233, 235 reciprocal interactions, 228 recognition, 4, 5, 11, 50, 51, 256 recollection, 235, 236 recovery, 66, 248 recreational, 110, 114 recruiting, 124 recycling, 1, 3, 4, 7, 8, 9, 10, 12, 13, 14, 17, 18, 21, 22, 23, 26, 103 reduction, viii, 10, 11, 23, 63, 65, 73, 157 reengineering, 225 regional, 28, 88, 99 regional economies, 88 regression, 16, 22, 35, 95, 96, 97, 153 regular, 21, 108, 112, 121, 122, 123, 124, 125 regulation, 188, 257 regulations, 113 regulators, x, 129, 130 reinforcement, 8 rejection, 139, 191 relationship, 2, 3, 10, 17, 19, 26, 32, 58, 103, 112, 138, 171, 182, 190, 198, 200, 209, 210, 216, 217, 220, 230, 245, 246, 251 relationships, vii, x, xiii, 1, 18, 19, 25, 33, 55, 56, 82, 94, 117, 119, 120, 122, 123, 171, 172, 186, 192, 216, 217, 220, 249, 252, 253 relatives, 79 relaxation, 135, 183 relevance, xiii, 91, 199, 227, 255

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274

Index

reliability, 14, 15, 21, 94, 95, 253, 256 religiosity, 195 religious groups, 187 renewable energy, 5 replication, 183, 257 reproduction, xii, 124, 136, 138, 139, 185, 189, 190, 191 reputation, 208, 209, 255 research, vii, viii, ix, xii, xiii, xiv, 1, 2, 3, 8, 10, 12, 14, 18, 19, 24, 33, 34, 41, 44, 45, 49, 50, 54, 55, 59, 60, 63, 67, 69, 73, 83, 87, 89, 90, 93, 97, 98, 99, 100, 101, 105, 113, 115, 117, 118, 119, 120, 121, 125, 127, 128, 152, 155, 157, 158, 181, 185, 186, 188, 189, 192, 198, 209, 211, 213, 215, 219, 220, 221, 222, 224, 228, 231, 235, 236, 239, 240, 248, 249, 250, 251, 252, 253, 256, 257, 258 research design, 157 researchers, x, 3, 18, 64, 109, 112, 121, 151, 156, 185, 192, 193, 215, 217, 221 reservation, 108 resolution, 52, 123 resource management, 23 resources, 6, 24, 98, 103, 120, 155, 182, 185, 186, 187, 189, 190, 191, 192, 255, 258 respiratory, 171 responsibilities, 3, 19 responsiveness, 23 restaurant, 200 resuscitation, 125 retail, 2, 89, 209, 247 retirement, 157 retirement age, 157 returns, 157 rewards, 4, 10, 21, 23 rheumatoid arthritis, 181 rice, 34 rigidity, 3 risk, viii, 51, 63, 65, 68, 69, 73, 75, 82, 83, 84, 99, 109, 114, 157, 181, 236 risk factors, 69, 114 risk perception, 84 risks, vii, viii, 63, 65, 66, 67, 68, 69, 70, 72, 73, 75, 77, 82, 83, 108, 109 Rita, 123 RMSEA, 15, 16, 220, 253, 254 roadmap, 3 rural, 53, 92 rural areas, 53 rust, 84

S sacrifice, 240, 242

safeguard, 114 safety, vii, viii, 14, 33, 63, 64, 65, 66, 67, 68, 72, 73, 74, 77, 81, 82, 83, 88, 93, 112, 113, 114, 190 salaries, 209 sales, xiii, 13, 53, 112, 198, 249 Salmonella, viii, 63, 64, 66, 67, 69, 70, 76, 77, 81, 82 sample, viii, ix, 13, 34, 36, 49, 53, 54, 59, 60, 87, 92, 108, 111, 154, 192, 201, 208, 224, 252, 256 sampling, 13, 33, 53 SAS, 174 satisfaction, 91, 155, 241, 246, 253 savings, 236 scaffolding, 223 scaling, 14, 22, 58 schema, 9 Schiff, 47 school, 37, 73 scientists, ix, 63, 70, 72, 82 scores, 111, 158, 160, 164 scripts, 3, 8, 9, 10, 11, 12, 18 SCT, 214 search, 19, 50, 51, 83, 91, 98, 103, 107, 108, 109, 110, 111, 113, 138, 154, 155, 170, 214, 235, 244, 248 search engine, 108, 110 search terms, 109 searches, 106 searching, xi, 82, 105, 109, 111, 169, 180 security, xi, xii, 131, 151, 156, 157, 164, 185, 187, 188, 189, 191, 192 seed, 29, 30 segmentation, viii, xi, 27, 43, 170, 171, 180 selecting, 13, 144, 152, 153 selectivity, 153 Self, xi, 103, 169, 171, 181, 183, 253 self-concept, 8 self-doubt, 188 self-efficacy, xi, 90, 169, 170, 171, 172, 173, 179, 181, 182, 183, 223 self-identity, 100 self-management, 171, 181, 182, 183 self-monitoring, 196 self-presentation, 194 self-reflection, 119 self-report, 182 seller, 52, 59 SEM, 253, 254 SEM model, 254 semantic, 93, 204, 208 sensitivity, 2, 18, 19, 23 series, 36, 130, 174, 199 service provider, 222

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Index services, iv, 7, 13, 21, 33, 50, 105, 106, 108, 121, 171, 214, 234, 235 sesame, 29, 30 settlements, 127 severity, 175, 176, 179, 183 sex, 180, 189, 190, 193 sexual behavior, 215, 223 shape, 6, 12, 19, 42, 55, 57, 58, 59, 60 shaping, 18, 29 shares, xiii, 120, 239 sharing, 4 short period, 230 shortness of breath, 172 short-term, 190, 193 signals, viii, 47, 63, 64, 190, 209, 228 significance level, 17, 158 similarity, x, 117 simulation, x, 129, 131, 134, 139, 144 Singapore, 196 singular, 56 sinus, 110 sites, 110, 126, 180, 255 skills, 2, 4, 6, 12, 52, 171, 180, 194 smokers, 174 smoking, 110, 174, 175 snakes, 187 social acceptance, 188 social behavior, 8, 22, 101, 257 social class, 50, 51, 92 Social cognitive theory, 223 social context, 121 social environment, 98 social exchange, 193 social exclusion, 188 social group, 50, 188, 190, 191, 193 social influence, vii, ix, xii, 87, 97, 100, 213, 214, 215, 216, 217, 220, 221, 222, 224 social influences, vii, ix, xii, 87, 97, 100, 213, 214, 215, 216, 217, 220, 221, 222 social isolation, 11 social justice, 8 social learning, 136 social life, 191 social norms, 12, 89, 91, 92, 93, 94, 95, 96, 98, 99 social psychology, 102, 103, 196 social relations, x, 117, 120 social relationships, x, 117, 120 social responsibility, 2, 25, 88 social security, xi, 151, 156, 157, 164, 199 social skills, 194 social standing, 50 social status, xii, 185, 188, 189, 191, 192, 193 social support, 128

275

socialization, 12, 119, 191, 195, 204 socially responsible, 2, 25 socioeconomic, 36 sociological, 258 sociology, 128 software, xii, xiii, xiv, 56, 213, 214, 249, 250, 258, 259 sounds, 258 South Dakota, 151, 157 South Korea, 65 soy, 29, 30 soy bean, 29, 30 Spain, viii, 27, 30, 31, 32, 33, 34, 35, 40, 41, 42, 43, 44, 45, 200 spam, ix, 105, 108, 111, 113, 114, 127 spatial, 120 specialization, 51 species, 10, 186 spectrum, 65 speculation, 228, 231 speed, 110, 234 spheres, 8 spinach, viii, 63, 64, 66 spirituality, 186 spirometry, 175 sports, 126 SPSS, 35 stability, x, 93, 109, 117, 120, 136, 139 stages, 50, 51, 59, 64, 153 stakeholder, 23 standard deviation, 37, 94, 175 standards, 12, 14, 21, 64, 66, 182, 208 stars, 165, 228 starvation, 191 statistics, 13, 16, 24, 30, 37, 54, 56, 158, 159, 253, 254 stock, 224 stockpiling, 230 storage, 67, 73, 74, 83, 242 strategic planning, 3, 6, 14, 20 strategies, x, 3, 6, 8, 11, 19, 20, 23, 25, 34, 46, 99, 100, 115, 128, 129, 130, 133, 134, 136, 137, 138, 139, 140, 145, 151, 152, 153, 154, 156, 157, 158, 160, 161, 162, 163, 164, 171, 172, 183, 193, 255 strategy use, 152, 154, 156, 157, 162 streams, xiii, 227, 235 strength, 26, 103, 109, 188, 189, 220, 228, 232, 235 strokes, 128 structural equation model, 220, 222, 224, 253 structural equation modeling, 223, 224, 253 students, xii, 112, 157, 199, 201, 213, 214, 217, 222, 234, 252

276

Index

subjective, 24, 68, 89, 90, 100, 153, 154, 155, 156, 161, 195, 198, 201, 203, 204, 210, 215 subjective well-being, 195 substitutes, 34, 37, 74 substitution, 12, 210 suffering, ix, 64, 82, 83 summaries, 108 sunflower, 29, 30 superiority, 32, 136, 139 supplemental, 111, 115 supplements, 110, 114 suppliers, 5, 14, 19, 21, 29, 53, 66, 121, 214, 242 supply, 33, 66, 70, 72, 73, 92, 132 supply chain, 66, 70, 72, 92 supply curve, 132 surplus, 72, 83 surprise, 172 survey design, 29, 179 survival, 124, 154, 196 sustainability, 10, 25, 88, 92, 93, 95, 96, 98, 101 Sweden, 132 switching, 91 Switzerland, 28, 61, 223 symbols, 124 symptom, 172, 173, 174 symptoms, 171 synthesis, 24, 47, 181, 237 Syria, 32, 44 systems, 5, 28, 50, 53, 149, 195

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T tactics, 113 Taiwan, xii, 31, 213, 217, 224 target population, 53, 54 taste, viii, 27, 34, 39, 40, 43, 44, 55, 60, 65, 73, 75, 78, 83, 88, 93, 99 taxes, xiii, xiv, 155, 249 teaching, 187, 191, 224 technological change, 72, 83 technology, 18, 21, 107, 214, 215, 221, 222, 223 telecommunications, 35 telephone, 13, 53, 54, 59, 99, 199 television, ix, 64, 66, 70, 76, 77, 83, 111, 187, 196 television advertisements, 111 television commercial, 66 temporal, 119, 121, 230 Tennessee, 111 theory, vii, ix, x, xii, 23, 35, 46, 65, 84, 87, 89, 90, 91, 101, 103, 129, 149, 193, 195, 196, 213, 214, 215, 216, 220, 221, 222, 223, 224, 225, 228, 235, 241, 244, 247, 248, 251, 252, 256, 257, 258 Theory of Planned Behavior, ix, 63, 67, 84, 250, 251

thinking, 20, 198, 205, 207, 228 third party, 67 threats, 52 threshold, xiii, 15, 39, 239, 242, 243, 245, 255 threshold level, xiii, 239, 242, 243, 245 thresholds, 36, 243 time, x, xi, 2, 8, 19, 20, 28, 29, 52, 53, 60, 64, 66, 68, 75, 81, 88, 98, 100, 117, 119, 121, 124, 126, 137, 138, 149, 151, 153, 154, 155, 156, 158, 170, 174, 176, 186, 192, 199, 204, 205, 207, 230, 232, 235, 242 time consuming, 153 time pressure, 52, 155 timing, 234 Tokyo, 33, 44 tomato, viii, 63, 64, 66 toughness, 188 tourist, 93, 95 trade, 6, 30, 46, 50, 64, 72, 88, 93, 102, 188, 228, 258 trade union, 65 trade-off, 6, 50, 228 trading, 52, 131, 134 tradition, 11, 52, 57, 59, 118, 125 training, 3, 4, 11, 12, 14, 21, 106 training programs, 12, 14, 21 traits, 194, 257 transactions, xiii, 129, 131, 132, 135, 229, 239, 240, 241, 242, 243, 244, 245, 246 transfer, 208 transference, 12 transition, 257 translation, 2, 9, 204, 252 transmission, 130, 131, 132, 136 transparency, 156, 230, 234, 236 transparent, 69, 241 transportation, 35, 67 trend, viii, 2, 27, 30, 37, 65, 88, 126 trial, 110, 181, 182 triangulation, 119 truism, 186, 188 trust, ix, 63, 68, 69, 70, 71, 72, 82, 84, 89, 101, 119, 152 trustworthiness, 128, 189 T-test, 174 Tunisia, viii, 27, 28, 31, 32, 34, 40, 41, 42, 43, 44 Turkey, 31, 32 turnover, 25 two-dimensional, viii, 49, 55, 57, 59, 243 two-way, 56, 161

Index

U ubiquitous, 223 uncertainty, 133, 153, 154, 156, 163, 164, 167, 211, 256 undergraduate, xii, 157, 213, 252 unemployment, 93 uniform, 92 United Kingdom (UK), 33, 35, 45, 67, 103, 110, 204 United Nations, 199 United States, 26, 31, 65, 67, 73, 75, 84, 85, 105, 106, 109, 110, 112, 132, 192, 194 United States Postal Service, 67 univariate, 96, 158 universities, xii, 213, 217 university students, 214 USDA, 65, 70, 71, 73 Utah, 127, 128, 257

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V validation, 195, 258 validity, 15, 16, 153, 217, 224, 240, 256 values, vii, xi, xii, xiii, 1, 2, 3, 4, 5, 7, 8, 10, 11, 13, 14, 16, 17, 18, 19, 22, 24, 25, 26, 30, 33, 35, 39, 40, 41, 42, 43, 44, 55, 56, 91, 94, 95, 96, 99, 103, 134, 138, 140, 141, 145, 151, 153, 154, 155, 157, 158, 164, 165, 166, 175, 176, 185, 186, 187, 189, 192, 193, 195, 202, 204, 208, 240, 241, 243, 246, 257, 258 variability, 187 variable, vii, viii, xii, 27, 28, 35, 39, 40, 41, 43, 44, 57, 95, 99, 100, 101, 134, 140, 141, 160, 202, 203, 207, 213, 217, 221, 241, 242 variables, vii, viii, ix, 24, 27, 39, 40, 41, 43, 55, 56, 68, 69, 87, 89, 90, 91, 92, 100, 101, 133, 140, 187, 198, 202, 203, 205, 215, 216, 217, 218, 219, 220, 221, 224, 241, 243, 256 variance, ix, 15, 56, 57, 87, 94, 95, 96, 97, 100, 158, 167, 221, 253 variation, 8, 18, 28, 43, 55, 163, 187 vector, 35, 245 vegetable oil, 29, 30, 33, 34, 37, 38, 39 vegetables, 46 vein, 230, 234 venue, 2, 106 verbal persuasion, 171

277

Vice President, 205 visible, 10 voice, 69, 85 Volkswagen, 165 volunteerism, 18 voting, 154

W wages, xiii, xiv, 249 waste management, 103 wastes, 9 wealth, xi, 50, 185, 186, 187, 188, 189, 190, 191, 192, 195, 230 web, 115, 120, 180, 223 websites, xi, 106, 108, 109, 110, 111, 113, 114, 170, 171, 179, 180 weight loss, 110 welfare, 69, 74 well-being, 181, 186, 193, 195, 196 WHO, 28 wholesale, 131 wildlife, 7, 10 windows, 119 wine, 35, 47 winter, 257 wireless, 223, 224, 225 Wisconsin, 180 withdrawal, 131, 132 wives, 50 women, xi, 33, 36, 170, 174, 179, 181, 189, 190, 191, 192 wood, 54, 55, 57, 60 word of mouth, 222 workers, 68 workforce, 4 workload, 154, 158 workplace, 2, 12, 19, 23, 68 worry, 191 writing, 93, 193, 230

Y yield, ix, 87 yogurt, 35, 45, 46 young adults, 89, 93, 103