The Impact of Emotional Intelligence: Understanding Consumer Behavior

Dr. Andree C. Swanson, EdD, MHR, MAOM

Dr. Paula Zobisch, PhD

Image(s) from Microsoft Clip Art.

Presenting at the IBAM

October 2013

in San Diego,

CA

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.

Abstract (Continued)

A review of literature on consumer

behavior and emotional intelligence is

presented and a summary of a baseline

study on consumer behavior and emotional

intelligence is also presented.

Literature Review

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Emotional Intelligence (EI) Defined

The capacity to…

perceive emotions,

assimilate emotion-related feelings,

understand the information of those

emotions

manage them

(Mayer et al., 1999)

EI = Ability or Trait

Ability

(Salovey & Mayer, 1990)

Trait Characteristics

Refer to emotional intelligence as something that can be scored

Similar to IQ

EQ

(Bar-On, 2007)

Two schools of thought on EI

Is emotional intelligence distinct from IQ?

EI is located in a

distinct area of

the brain

(Cherniss & Goleman, 2001)

Image(s) from Microsoft Clip Art.

If Bar-On’s study is accurate…

Emotionally intelligent

consumers do not react

to their emotions, but

use their EI to assess

their current level of

emotions and are able

to make appropriate

choices.

Image(s) from Microsoft Clip Art.

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).

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.

Nelson & Low (2011) stated…

In the ESAP “specific emotional

skills are used to understand and

develop, on a practical level, each

of the five domains” (Nelson &

Low, 2011, p. 192).

Traditional Consumer Buying Models

Dismiss the role of

emotion when

making a buying

decision.

Rational consumer

= rational buying

decision

Found a correlation between EI, impulse buying, and self esteem

(Peter & Krishnakumar, 2010)

Consumer Emotional Intelligence (CEI)

Consumer

Emotional

Intelligence (CEI)

Recognized as a

combination of…

Cognitive

emotions Image(s) from Microsoft Clip Art.

Types of Consumer Buying Decisions

“Low Road” – spontaneous, impulsive

“High Road” – controlled decisions

A decision made by an absence of

cognition, a completely emotional

decision

Impulse Consumer Buying

Loud Music

Distracting or loud

environment

Engaging display

Shorten waiting

times

Hedonic behavior Image from http://urcalendar.wordpress.com/2011/10/12/impulse-buying-behavior/

Affection towards a product?

Hsee and Kunreuther (2000)

suggest consumers develop

affection "toward products and

services just as they do toward

other individuals or toward their

pets" (p. 49).

Their study revealed pet owners

would purchase the more expensive

medication for their pet when the

pet was held in higher affection

than when they were not. Copyright 2013, Andree Swanson

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 Study

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Significance

Financial hardship

Coping strategy

Relationship

difficulties Image from http://taxreliefreviews.info/2012/09/is-there-tax-relief-when-in-financial-hardship/

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

Image(s) from Microsoft Clip Art.

Survey Methodology

Conducted a survey

Used Survey Monkey

Analyzed results

Image(s) from Microsoft Clip Art.

Participants / Demographics

Gathered 86

participants over

age 18 through

social media

Linkedin

Facebook

Image(s) from Microsoft Clip Art.

Survey Results

Image(s) from Microsoft Clip Art.

Heard of Emotional Intelligence

81

participants =

YES

5 participants

= NO

Understanding of EI

67 participants

= strongly agree

or agreed that

they had an

understanding

of EI

Unplanned purchases in last 12 months

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%)

The bottom-line

Difficulty with self-reporting

No specific instrument accurately

measures

Future Research

http://www.uws.edu.au/bioelectronics_neuroscience/bens/postgraduate

Future Research

How do emotions influence the behavior

of sales people

What role do emotions play in self

regulation

How should emotions be measured in

marketing

Accurate research instrument

Concluding Research

http://www.forskningsradet.no/servlet/Satellite?c=Nyhet&pagename=nanomat%2FHovedsidemal&cid=1253969771853

Conclusion

Buying decisions influenced by emotions

Degree of influence varies among

emotional intelligence, or the emotional

awareness of consumer

Biographies

Dr. Andree Swanson and Dr. Paula Zobisch

http://rediscoveringthebible.com/Biographies.html

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. 

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

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.

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.