The Impact of Emotional Intelligence: Understanding Consumer Behavior

The Impact of Emotional Intelligence: Understanding Consumer Behavior

Dr. Paula Zobisch, PhD – Ashford University

Dr. Andree C. Swanson, EdD – Ashford University

Copyright © MSRP 2013 Image(s) from IBAM.org and Ashford.edu

Abstract

Emotional decisions are made daily by

consumers. The power and impact of emotion on

the buying process is an emerging field.

Marketers must turn from the traditional

marketing strategies based on cognitive abilities

of the consumer to also include the role of

emotions in the buying process.

Copyright © MSRP 2013

Abstract (Continued)

A review of literature on consumer

behavior (CB) and emotional intelligence

(EI) is presented and a summary of a

baseline study on consumer behavior and

emotional intelligence is also presented.


Literature Review

Image(s) from Microsoft Clip Art.


Emotional Intelligence Defined

Personality

EQIQ

Image(s) from Microsoft Clip Art. Copyright © MSRP 2013

Emotional Intelligence (EI) Defined

EI is the capacity to…

perceive emotions,

assimilate emotion-related

feelings,

understand the information of

those emotions

manage them (Mayer et al., 1999) Image from Wordle.netCopyright © MSRP 2013

EI = Ability or Trait

Ability

(Salovey & Mayer, 1990)

Trait CharacteristicsRefer to emotional

intelligence as something that can be scored

Similar to IQEQ

(Bar-On, 2007)

Two schools of thought on EI


Is emotional intelligence distinct from IQ?

EI is located in a

distinct area of the

brain

Not just scholarly

theory; it is backed by

science

(Cherniss & Goleman, 2001)


Emotional Skills Assessment Process (ESAP)

Emphasized …

a person-

centered,

experiential

method of

considering any

situation

The ESAP stresses that emotional intelligence is a skill that can be learned and refined, much different than EQ

(Nelson & Low, 2011)


Synthezing Ability and ESAP

Image from Wordle.netCopyright © MSRP 2013

Integrating the Five Domains of Emotional Intelligence and the ESAP

Salovey and Mayer’s Five Domains of Emotional

Intelligence

Nelson and Low’s Emotional Skills Assessment Process (ESAP)

Self-Awareness The actual process of assessing emotional skills; includes self-monitoring

Managing Emotions Involves the stress management, assertion, anger management, anxiety management, empathy, social awareness, and positive change emotional skills

Motivating Self Involves the drive strength, decision making, time management, commitment ethic, positive influence, self-esteem, and positive change emotional skills

Empathy Involves the empathy, social awareness, self-esteem, assertion, and positive influence emotional skills

Handling Relationships Involves the self-esteem, empathy, assertion, stress management, anger management, anxiety management, positive influence, and positive change emotional skills.


Integrating the Five Domains of Emotional Intelligence and the ESAP

Salovey and Mayer’s Five Domains of Emotional

Intelligence

Nelson and Low’s Emotional Skills Assessment Process (ESAP)

Self-Awareness The actual process of assessing emotional skills; includes self-monitoring

Managing Emotions Involves the stress management, assertion, anger management, anxiety management, empathy, social awareness, and positive change emotional skills

Motivating Self Involves the drive strength, decision making, time management, commitment ethic, positive influence, self-esteem, and positive change emotional skills

Empathy Involves the empathy, social awareness, self-esteem, assertion, and positive influence emotional skills

Handling Relationships Involves the self-esteem, empathy, assertion, stress management, anger management, anxiety management, positive influence, and positive change emotional skills.

Theory

Practical applicatio

n


Nelson & Low (2011) stated…

“specific emotional skills are used

to understand and develop, on a

practical level, each of the five

domains”

(Nelson & Low, 2011, p. 192)


Use Emotional Intelligence to

Predict Consumer Behavior

More literature exists suggesting emotions have a much greater effect on consumer buying decisions than previously

believed. Scholars are divided on whether or not EI can be used to predict buying behavior.


Traditional Consumer Buying Models

Traditional Consumer Behavior Theory

Dismiss the role

of emotion when

making a buying

decision.

Contemporary Consumer Behavior

Theory

Found a

correlation

between EI,

impulse buying,

and self esteem

(Peter & Krishnakumar, 2010)


If Bar-On’s study is accurate…

Emotionally intelligent

consumers do not react

to their emotions, but

use their EI to assess

their current level of

emotions and are able

to make appropriate

choices.

(Bar-On, 2007) Image(s) from Microsoft Clip Art.

Contemporary Theory


Consumer Emotional Intelligence (CEI)

Consumer Emotional

Intelligence (CEI)

Recognized as a

combination of…

Cognitive

Emotions


(Bell, 2011)

Contemporary Theory


Types of Consumer Buying Decisions

o Emotional Buying with no cognitive

function

o “Low Road” – spontaneous,

impulsive

o “High Road” – controlled decisions

oA decision made by an absence of

cognition, a completely emotional

decision(Shiv & Fedorikhin, 1999)


Impulse (Emotional Buying) Consumer Buying

Loud Music

Distracting or

loud environment

Engaging display

Shorten waiting

times

Hedonic behavior(Shiv & Fedorikhin, 1999)

Copyright © MSRP 2013 Image(s) from Microsoft Clip Art.

Affection towards a product?

Do you ever buy something based on how you feel about the…

Brand?

Color?

Style?

Will you pay more or less based on a certain…

Brand?

Color?

Style?


How do these make you feel?

Image from Google imagesCopyright © MSRP 2013

Affection towards a product?

People act "toward products

and services just as they do

toward other individuals or

toward their pets" (p. 49).

Pet owners would purchase the

more expensive medication for

their pet when the pet was

held in higher affection than

when they were not.

Copyright 2013, Dr. Andree Swanson

(Hsed & Kunreather, 2000)Copyright © MSRP 2013

Scholarship on the Topic of EI and CB

Kidwell’s Dissertation and more


Kidwell’s Dissertation Topic

Emotional Intelligence in

Consumer Behavior:

Ability, Confidence, and

Calibration as Predictors

of Performance

Kidwell et al. (2004) focused on

creating an assessment to

measure emotional ability when shopping.


Significance of the Study


Potential Consequences of Spending by Emotion

Financial hardship

Coping strategy

Relationship

difficultiesCopyright © MSRP 2013


Marketing Implications

Marketers can use EI to segment the market and

communicate with a specific market segment

EI & CB indicate marketers must move from

cognitive-based marketing strategies to include

more strategies that involve the whole person

such as emotion

EI & CB can be used to predict impulse buying


Ethical Considerations

Do sales people and/or managers take advantage

of consumers through the use of emotions?

Using emotional strategies on a market segment

least likely to use emotions for good buying

decisions

Using the knowledge of EI & CB to sell to

vulnerable consumers with a low awareness of

how emotions affect their buying decisions


Research Methodology


Survey Methodology

Conducted a

baseline (pilot)

survey

Used Survey Monkey

Analyzed results


Participants / Demographics

Gathered 86

participants over

age 18 through

social media

Linkedin

Facebook


Survey Results


Heard of Emotional Intelligence

81 participants =

YES

5 participants =

NO

www.surveymonkey.comCopyright © MSRP 2013

Understanding of EI

67 participants =

strongly agree or

agreed that they had

an understanding of

EI


Unplanned Purchase in Last 12 months

86 out of 86

(100%) participants

had

unplanned

purchases!


Unplanned purchases in last 12 months

Question 1-3 4-6 7-10 10-15 16 or more

How many unplanned purchases have you made in the last 12 months?

44(51.2%)

20(23.3%)

9(10.5%)

4(4.7%)

9(10.5%)

Impulse behavior is a factor in affective consumer decision making (Shiv & Fedorikhin, 1999).


Limitations

Difficulty with self-reporting

No specific instrument accurately

measures (well… maybe the CEIS)

Emotions can be used to persuade


Future Research


Future Research

How do emotions influence the behavior of sales people?

What role do emotions play in self regulation of each

individual consumer?

How should emotions be measured in marketing?

Accurate research instrument

The development of a user-friendly assessment for

consumers to evaluate their effect of emotions on their

buying decisions.

An emotional self-check


Conclusion


Conclusion

Buying decisions are influenced by

emotions

Degree of influence varies among

emotional intelligence, or the

emotional awareness of consumer


Biographies

Dr. Paula Zobisch and Dr. Andree Swanson


Dr. Paula Zobisch

Assistant Professor, Ashford University

Ph.D. Adult Education, Capella University; MBA emphasis in

Marketing, University of Central Oklahoma

Director of Marketing and Major Accounts Sales Manager, 3M

Distributor, Oklahoma City, Oklahoma 1989 – 2007


Copyright 2013, Dr. Paula Zobisch

Dr Andree Swanson

Assistant Professor, Ashford University

Adjunct Faculty, Kaplan University

Ed.D. Educational Leadership, University of Phoenix

MA, Organizational Management, University of Phoenix

MHR, Human Relations, University of Oklahoma

Worked as a Dean of General Education, National Training Manager,

for the US government (DoD, USAF, & USA), corporations, and higher

education.


Copyright 2013, Dr. Andree Swanson

References


References

Bell, H. A. (2011, September). A contemporary framework for emotions in consumer decision-making: Moving beyond traditional models. International Journal of Business and Social Science, 2(17), 12-16. Retrieved from ProQuest database.

Cherniss, C., & Goleman, D. (2001). The Emotionally Intelligent Workplace: How to Select For, Measure, and Improve Emotional Intelligence in Individuals, Groups, and Organizations. New York, NY: Jossey-Bass.

Hsee, C. K., & Kunreuther, H. C. (2000). The affection effect in insurance decisions. Journal of Risk and Uncertainty, 20(2), 141-159. Retrieved from ProQuest database.

Kidwell, B., Brinberg, D., Parker, A., Nakamoto, K., Jewell, B., & Crawford, H. (2004). Emotional Intelligence in consumer behavior: Ability, confidence, and calibration as predictors of performance (Doctoral Dissertation). Available from http://scholar.lib.vt.edu/theses/available/etd-05082004-161747/unrestricted/Dissertation.pdf

Kidwell, B., Hardesty, D. M., & Childers, T. L. (2008a). Consumer emotional intelligence: Conceptualization, measurement, and the prediction of consumer decision making. Advances in Consumer Research, 35, 660. Retrieved from ProQuest database.


http://scholar.lib.vt.edu/theses/available/etd-05082004-161747/unrestricted/Dissertation.pdf



References, Continued

Kidwell, B., Hardesty, D. M., & Childers, T. L. (2008b, December). Emotional calibration effects on consumer choice. Journal of Consumer Research, 35(4), 611-621. Retrieved from ProQuest database.

Kotler, P., Kartajaya, H., & Setiawan, I. (2010). Marketing 3.0: From products to customers to the human spirit. Hoboken, NJ: John Wiley & Sons.

Mayer, J., Caruso, D., & Salovey, P. (1999). Emotional Intelligence meets traditional standards for an intelligence. Intelligence, 27(4), 267-298. Retrieved from ProQuest.

Nelson, D., & Low, G. (2010). Emotional Intelligence: Achieving academic and career excellence in college and in life. New York, NY: Prentice-Hall.

Peter, P. C., & Krishnakumar, S. (2010). Emotional intelligence, impulse buying and self-esteem: The predictive validity of two ability measures of emotional intelligence. Journal of Consumer Research, 35(1), 154-166. Retrieved from ProQuest database.


References, Continued

Ramanathan, S., & Menon, G. (2006, November). Time-varying effects of chronic hedonic goals on impulsive behavior. Journal of Marketing Research, XLIII, 628-641. Retrieved from ProQuest database.

Ramanathan, S., & Shiv, B. (2001). Getting to the heart of the consumer: The role of emotions and cognition (or the lack thereof) in consumer decision making. Advances in Consumer Research, 28, 49-50. Retrieved from ProQuest database.

Salovey, P., & Mayer, J. D. (1990). Emotional intelligence, imagination, cognition, and personality, 9, 185-211. Retrieved from http://www.unh.edu/emotional_intelligence/EI%20Assets/Reprints...EI%20Proper/EI1990%20Emotional%20Intelligence.pdf

Shiv, B., & Fedorikhin, A. (1999). Heart and mind in conflict: The interplay of affect and cognition in consumer decision making. Journal of Consumer Research, 26(3), 278-292. Retrieved from ProQuest database.


http://www.unh.edu/emotional_intelligence/EI%20Assets/Reprints...EI%20Proper/EI1990%20Emotional%20Intelligence.pdf

http://www.unh.edu/emotional_intelligence/EI%20Assets/Reprints...EI%20Proper/EI1990%20Emotional%20Intelligence.pdf

https://www.surveymonkey.

com/s/XCSCMMQ

SurveyMonkey.com


The Impact of Emotional Intelligence: Understanding Consumer Behavior

Education

Transcript of The Impact of Emotional Intelligence: Understanding Consumer Behavior