Decision making and coping of functionally illiterate consumers and some implications for marketing management

Madhubalan Viswanathan, José Antonio Rosa, James Edwin Harris

Research output: Contribution to journalReview article

Abstract

A study of the decision making and coping of functionally illiterate consumers reveals cognitive predilections, decision heuristics and trade-offs, and coping behaviors that distinguish them from literate consumers. English-as-a-second-language and poor, literate consumers are used as comparison groups. The strong predilection for concrete reasoning and overreliance on pictographic information of functionally illiterate consumers suggest that companies should reconsider how they highlight the added benefits of new products or the differentiating aspects of existing product offerings across channels such as advertising, in-store displays, and positioning. Concrete reasoning also has strong implications for the execution and presentation of price promotions through coupons and in-store discounts, because many consumers are unable to process the information and thus avoid discounted products. Finally, the elaborate coping mechanisms identified and the loyalty that functionally illiterate consumers display toward companies that are sensitive to their literacy and numeracy deficiencies reveal a potential for loyalty programs aimed at this population that do not involve price discounts.

Original languageEnglish (US)
Pages (from-to)15-31
Number of pages17
JournalJournal of Marketing
Volume69
Issue number1
DOIs
StatePublished - Jan 1 2005

Fingerprint

Marketing management
Decision making
Positioning
Price promotions
Decision heuristics
Coupons
Price discount
Loyalty
Loyalty programs
Numeracy
New products
Language
Discount stores
Trade-offs
Coping behavior
Literacy

ASJC Scopus subject areas

  • Business and International Management
  • Marketing

Cite this

Decision making and coping of functionally illiterate consumers and some implications for marketing management. / Viswanathan, Madhubalan; Rosa, José Antonio; Harris, James Edwin.

In: Journal of Marketing, Vol. 69, No. 1, 01.01.2005, p. 15-31.

Research output: Contribution to journalReview article

@article{6febae3f573d44a5ba59155dea6c70c2,
title = "Decision making and coping of functionally illiterate consumers and some implications for marketing management",
abstract = "A study of the decision making and coping of functionally illiterate consumers reveals cognitive predilections, decision heuristics and trade-offs, and coping behaviors that distinguish them from literate consumers. English-as-a-second-language and poor, literate consumers are used as comparison groups. The strong predilection for concrete reasoning and overreliance on pictographic information of functionally illiterate consumers suggest that companies should reconsider how they highlight the added benefits of new products or the differentiating aspects of existing product offerings across channels such as advertising, in-store displays, and positioning. Concrete reasoning also has strong implications for the execution and presentation of price promotions through coupons and in-store discounts, because many consumers are unable to process the information and thus avoid discounted products. Finally, the elaborate coping mechanisms identified and the loyalty that functionally illiterate consumers display toward companies that are sensitive to their literacy and numeracy deficiencies reveal a potential for loyalty programs aimed at this population that do not involve price discounts.",
author = "Madhubalan Viswanathan and Rosa, {Jos{\'e} Antonio} and Harris, {James Edwin}",
year = "2005",
month = "1",
day = "1",
doi = "10.1509/jmkg.69.1.15.55507",
language = "English (US)",
volume = "69",
pages = "15--31",
journal = "Journal of Marketing",
issn = "0022-2429",
publisher = "American Marketing Association",
number = "1",

}

TY - JOUR

T1 - Decision making and coping of functionally illiterate consumers and some implications for marketing management

AU - Viswanathan, Madhubalan

AU - Rosa, José Antonio

AU - Harris, James Edwin

PY - 2005/1/1

Y1 - 2005/1/1

N2 - A study of the decision making and coping of functionally illiterate consumers reveals cognitive predilections, decision heuristics and trade-offs, and coping behaviors that distinguish them from literate consumers. English-as-a-second-language and poor, literate consumers are used as comparison groups. The strong predilection for concrete reasoning and overreliance on pictographic information of functionally illiterate consumers suggest that companies should reconsider how they highlight the added benefits of new products or the differentiating aspects of existing product offerings across channels such as advertising, in-store displays, and positioning. Concrete reasoning also has strong implications for the execution and presentation of price promotions through coupons and in-store discounts, because many consumers are unable to process the information and thus avoid discounted products. Finally, the elaborate coping mechanisms identified and the loyalty that functionally illiterate consumers display toward companies that are sensitive to their literacy and numeracy deficiencies reveal a potential for loyalty programs aimed at this population that do not involve price discounts.

AB - A study of the decision making and coping of functionally illiterate consumers reveals cognitive predilections, decision heuristics and trade-offs, and coping behaviors that distinguish them from literate consumers. English-as-a-second-language and poor, literate consumers are used as comparison groups. The strong predilection for concrete reasoning and overreliance on pictographic information of functionally illiterate consumers suggest that companies should reconsider how they highlight the added benefits of new products or the differentiating aspects of existing product offerings across channels such as advertising, in-store displays, and positioning. Concrete reasoning also has strong implications for the execution and presentation of price promotions through coupons and in-store discounts, because many consumers are unable to process the information and thus avoid discounted products. Finally, the elaborate coping mechanisms identified and the loyalty that functionally illiterate consumers display toward companies that are sensitive to their literacy and numeracy deficiencies reveal a potential for loyalty programs aimed at this population that do not involve price discounts.

UR - http://www.scopus.com/inward/record.url?scp=13244277633&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=13244277633&partnerID=8YFLogxK

U2 - 10.1509/jmkg.69.1.15.55507

DO - 10.1509/jmkg.69.1.15.55507

M3 - Review article

AN - SCOPUS:13244277633

VL - 69

SP - 15

EP - 31

JO - Journal of Marketing

JF - Journal of Marketing

SN - 0022-2429

IS - 1

ER -