The Impact of Emotional Intelligence: Understanding Consumer Behavior
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Transcript of The Impact of Emotional Intelligence: Understanding Consumer Behavior
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The Impact of Emotional Intelligence: Understanding Consumer Behavior
Dr. Paula Zobisch, PhD – Ashford University
Dr. Andree C. Swanson, EdD – Ashford University
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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.
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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.
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Literature Review
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Emotional Intelligence Defined
Personality
EQIQ
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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
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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
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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)
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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)
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Synthezing Ability and ESAP
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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.
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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
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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)
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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.
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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)
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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
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Consumer Emotional Intelligence (CEI)
Consumer Emotional
Intelligence (CEI)
Recognized as a
combination of…
Cognitive
Emotions
Image(s) from Microsoft Clip Art.
(Bell, 2011)
Contemporary Theory
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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)
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Impulse (Emotional Buying) Consumer Buying
Loud Music
Distracting or
loud environment
Engaging display
Shorten waiting
times
Hedonic behavior(Shiv & Fedorikhin, 1999)
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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?
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How do these make you feel?
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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
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Scholarship on the Topic of EI and CB
Kidwell’s Dissertation and more
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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.
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Significance of the Study
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Potential Consequences of Spending by Emotion
Financial hardship
Coping strategy
Relationship
difficultiesCopyright © MSRP 2013
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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
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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
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Research Methodology
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Survey Methodology
Conducted a
baseline (pilot)
survey
Used Survey Monkey
Analyzed results
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Participants / Demographics
Gathered 86
participants over
age 18 through
social media
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Survey Results
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Heard of Emotional Intelligence
81 participants =
YES
5 participants =
NO
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Understanding of EI
67 participants =
strongly agree or
agreed that they had
an understanding of
EI
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Unplanned Purchase in Last 12 months
86 out of 86
(100%) participants
had
unplanned
purchases!
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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).
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Limitations
Difficulty with self-reporting
No specific instrument accurately
measures (well… maybe the CEIS)
Emotions can be used to persuade
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Future Research
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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
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Conclusion
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Conclusion
Buying decisions are influenced by
emotions
Degree of influence varies among
emotional intelligence, or the
emotional awareness of consumer
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Biographies
Dr. Paula Zobisch and Dr. Andree Swanson
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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
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Copyright 2013, Dr. Paula Zobisch
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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.
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Copyright 2013, Dr. Andree Swanson
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References
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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.
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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.
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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.
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https://www.surveymonkey.
com/s/XCSCMMQ
SurveyMonkey.com
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