A Study of Changes in Brand Preferences

ABSTRACT - Brand preferences are usually studied by attempting to profile and understand loyal consumers. This paper presents a study of changes in brand preferences. Theory and research is used to propose and test a model based on the proposition that changes in brand preferences and their development are the result of life events that serve as markers of life transitions. Changes are viewed to be the result of adjustments to new life conditions and changes in consumption lifestyles that reflect consumer efforts to cope with stressful life changes. The data support these notions and suggest implications for consumer research.

Citation:

Anil Mathur, George P. Moschis, and Euehun Lee (2001) ,"A Study of Changes in Brand Preferences", in AP - Asia Pacific Advances in Consumer Research Volume 4, eds. Paula M. Tidwell and Thomas E. Muller, Provo, UT : Association for Consumer Research, Pages: 133-139.

Asia Pacific Advances in Consumer Research Volume 4, 2001      Pages 133-139

A STUDY OF CHANGES IN BRAND PREFERENCES

Anil Mathur, Hofstra University, U.S.A.

George P. Moschis, Georgia State University, U.S.A.

Euehun Lee, Sejong University, Korea

ABSTRACT -

Brand preferences are usually studied by attempting to profile and understand loyal consumers. This paper presents a study of changes in brand preferences. Theory and research is used to propose and test a model based on the proposition that changes in brand preferences and their development are the result of life events that serve as markers of life transitions. Changes are viewed to be the result of adjustments to new life conditions and changes in consumption lifestyles that reflect consumer efforts to cope with stressful life changes. The data support these notions and suggest implications for consumer research.

INTRODUCTION

The question of "why consumers change their brand preferences" has intrigued marketers and consumer researchers for decades. Early attempts to understand brand-switching behavior focussed on the effect of past purchases on current purchase behavior (e.g., Morrison 1966). More recent studies have shown that brand-switching behavior is related to three types of factors (Morgan and Dev 1994): consumer charateristics (e.g., Vantrip, Hoyer, and Inman 1996), marketing mix factors (e.g., Deignton, Henderon, and Neslin 1994), and situational influences (e.g., Bucklin and Srinivasan 1991).

The purpose of the present research is to present a relatively unexplored approach to understanding changes in brand preferences. Specifically, it is proposed that changes in brand preferences are the result of life changes (events) that signify transitions into new roles and create stress, forcing the individual to modify his or her consumption life styles (including brand preferences) to adapt to new life circumstances. Theoretical perspectives are presented followed by the results of a large-scale national study.

BACKGROUND

Recent studies have revealed that periods of life transitions are associated with significant changes in consumer behavior (e.g., Andreasen 1984; Mehta and Belk 1991; Price and Curasi 1996). Two different theoretical perspectives help us find explanations for these changes: role transition perspective and stress perspective. The first perspective holds that as people change roles, adopt new roles, or give up old roles their consumer behavior also changes. These changes in consumer behavior are either because of their need to redefine their self-concepts as a result of the assumption of a new role (e.g., Mehta and Belk 1991); or due to role relinquishment as people attempt to dispose of products relevant to the enactment of a previous role (e.g., McAlexander 1991). Previous research has shown that possessions are integral to the definition of self and the expression and performance of roles (Belk 1988); and their disposition is necessary in communicating important changes both to the consumer and to others (Young and Wallendorf 1989).

The second perspective on behavioral changes is based on stress theory and research. Stress refers to environmental, social, or internal demands which require the individual to readjust his or her usual behavior patterns (Thoits 1995). These demands cause disruptions of previously more or less balanced states. Major life changes and transitions are often treated as "stressors" that create a generalized demand for readjustment by the individual. Thus, the assumption of a new role or its anticipation requires major adjustment of one’s lifestyle which can be stressful. People attempt to restore balance and relieve frustrations and tensions accompanying disequilibrium by initiating or modifying behaviors, which are viewed as coping strategies (e.g., Lazarus and Folkman 1984; Pearlin 1982). Coping refers to actions and thoughts that enable the individual to handle difficult situations, solve problems, and reduce stress (Lazarus and Folkman 1984). Support for the stress perspective is found in previous consumer studies showing that initiation, intensification or changes in consumption habits reflect efforts to handle stressful life events (e.g., Andreasen 1984; O’Guinn and Faber 1989).

Based on these two theoretical perspectives, it is proposed that changes in brand preferences are the result of life changes (events) that (a) signify transition into new roles and (b) create stress that forces the individual to modify his or her consumption behavior. While changes in brand preferences have not been linked empirically to life transitions or stress, there are reasons to believe that brand-preference change is a consequence of life changes for at least two reasons: first, product and brand choices are interdependent (e.g., Wells 1993) and should be studied as such (Meyer and Kahn 1991). Second, while some life events such as natural disasters may only create stress (and not result in transition into a new role), many other unpredictable events such as divorce and chronic illness may result in more permanent or longer-lasting changes and role transitions (Hetherington and Baltes 1988). Rutter (1983) has referred to such events as "transactional events." These are events that incease the probability of a set of other events occurring. For example, an accident may result in physical handicap, financial duress, career shifts, and alterations in social relations. Thus, the occurrence of an event, such as divorce, does not only creates stress, which may be handled via product consumption (and consequently may result in changes in brand preferences), but also raises the probability of the occurrence of other events such as relocation and financial duress (e.g., Price and Curasi 1996) that could also affect brand preferences.

MODEL AND HYPOTHESES

The preceding discussion suggests a model (Figure) which summarizes the main types of variables and their interrelationships within the context of brand preference change. It is proposed that changes in brand preferences are the result of life events. These life events create a generalize demand for readjustment and may create stress that is handled via changes in consumption.

Influence of Life Events

Indirect Effects. Most life-events studies have measured accumulated life stress through the use of self-report questionnaires containing a list of specific events. The overall life change score (weighted or unweighted; desirable or undesirable) is used as a measure of stress (often known as "acute stress"), which is inferred from one’s experience of specific life events (Cohen 1988). Thus, life events may require changes in consumption-related lifestyles. Andreasen (1984), for example, found life status changes to be positively associated with changes in lifestyles (a variable comprised of several consumption-related lifestyles); he concluded that "lifestyle change may reflect both a positive reorientation and a defensive adaptation to stressful circumstances" (p.793).

H₁: The greater the number of life events consumers experience, the greater the likelihood of change in their consumption-related lifestyles.

FIGURE

A MODEL OF CHANGES IN BRAND PREFERENCES

In the early 1980s, a series of articles made the point that life events may not only have a direct demand for readjustment, but also affect one indirectly through their exacerbation of role strains (e.g., Pearlin et al. 1981). Lazarus and DeLongis (1983) even argued that chronic (global) stress should be a better predictor of a person’s response because it is a proximal measure, reflecting the person’s immediate experience of the social environment, whereas life events are more distal measures, which may not carry a common meaning for all persons. The idea that life events may heighten day-to-day hassles flows easily from a large body of literature on stress. Substantial evidence has been accumulated supporting the view that chronic stress (whether defined as global stress, hassles, daily stress, role strains, or ongoing disadvantage) has repeatedly been shown to be a better predictor than life events and to mediate, at least in part, the impact of those events (Norris and Uhl 1993).

H₂: The greater the number of life events experienced, the greater the level of global stress.

H₃: There is a positive relationship between global stress and change in consumption-related lifestyles.

The occurence of a life event often depends upon the occurence of another life event. Many unexpected events may occur due to the increased likelihood of transactional events (e.g.; Rutter 1983) Other events, both normative and unexpected events, often serve as signals of other upcoming events or role transitions. The person’s response to such events can be in the form of formation of perceptions associated with the assumption of a new role upon the expected occurrence of the anticipated event (e.g., parenthood upon birth of first child). Thus, the number of events or role transitions a consumer has experienced within a recent period of time is expected to have a positive impact on the number of other events and role transitions he or she expects to experience in the foreseeable future (Figure).

H₄: There is a positive relationship between the number of life events experienced and anticipated life events.

Anticipation of acute stressors (life events and role transitions) may affect consumer behavior not only indirectly through mediating factors such as global stress (e.g., Pearlin 1982), but also directly. Folkes (1991) presented research that suggests that consumer behavior in general is influenced by one’s anticipation, although the specific processes of such influences are not spelled out. However, there are studies that are more explicit regarding the direct influences of one’s anticipation on his or her consumer behavior. For example, perception or anticipation of the occurrence of future events such as illness and widowhood is believed to affect the aging person’s decision to allocate available resources on various expenditure and investment categories (George 1993). Similarly, data presented by Wagner and Hanana (1983) suggest that persons approaching retirement are likely to change their consumption habits in anticipation of role transition (from the role of a worker to that of a retiree).

H₅: The larger the number of life events or role transitions consumers anticipate, the greater the (a) level of global stress they are likely to experience, and (b) likelihood of change in their consumption-related lifestyles.

Direct Effects. Whether occurred or anticipated, many life events, especially those that mark transitions into new roles (e.g., spousal, parenthood), demand readjustment that may not always result in stress (Norris and Uhl 1993). Consumers typically re-evaluate their consumption needs at several transition points in their lives, and many changes in consumer behavior are the result of these assessments. Schewe and Balazs (1992) discuss how transitions into several roles in later life (e.g., retiree, grandparent) may result in changes in consumer behavior due to the enactment of such roles. Mergenhagen (1995) presents several examples of first-time decisions made during transitional points. However, some changes in consumer behavior may involve only changes in preferences for brands and stores rather than changes in needs for products and services. For example, Andreasen (1984) provides empirical evidence in support of the influence of life status changes on consumer behavior (brand preference change), even after the mediating impact of stress and lifestyle changes are partialed out. Schewe and Meredith (1994) cite a 1993 Yankelovich study, which found that 40% of households that changed their address also changed their brand of toothpaste.

H₆: The larger the number of life events or role transitions consumers experience, the greater the number of changes in their brand preferences.

H₇: The larger the number of life events or role transitions consumers anticipate, the greater the number of changes in their brand preferences.

The Influence of Consumption Lifestyles

Individuals may engage in a variety of consumption-related activties to reduce stress, and these activities might be helpful in alleviating stress. Many consumption-related coping behaviors such as use of psychotropic drugs and impulsive shopping may be temporal activities which do not cause significant long-term alterations in already established patterns of consumer behavior; they may cease or disappear once stress is reduced and they may not appear until another stressful situation arises. Although many such temporal changes may not lead to the development of long-lasting changes in patterns of consumer behavior, they may affect certain aspects of consumer behavior. For example, shopping and over-consumption may provide opportunities to purchase new products, change brands and patronize different stores. Andreasen’s (1984) research appears to support this line of reasoning, showing that "lifestyle" change (a construct which included mostly consumption-based lifestyle changes) and brand preference change were positively related.

H₈: The number of changes in consumption-related lifestyles is related positively to changes in brand-preferences.

THE STUDY

Sample

Data for the study were collected through an anonymous mail survey. A random sample of 10,000 names was drawn from the database of R.L. Polk, which reportedly has approximately 87 million household names and addresses. The selection of names was in proportion to the population of each of the 50 states and specific age groups. A copy of the survey questionnaire along with a cover letter and a postage paid return envelope were mailed to each of the 10,000 names in the sample. A total of 1,534 completed questionnaires were returned. It is a common practice in psychological research to survey or include only those individuals or samples of people who have experienced certain events in the previous six or twelve months and compare them to those have not experienced them (e.g., Norris and Uhl 1993). In line with this practice, we include in our sample all individuals who had experienced a wide range of events. In addition, we selected a random subsample of those who had experienced only few events in the previous twelve months. Also included in the sample was a large subsample of those who had not experienced any of the events in the life event list. The final sample used consisted of 866 questionnaires. The age range of this sample was 21 to 84, with a mean of 49.95 and a standard deviation of 13.92 years, figures that compare favorably to Census data for adult population.

Variables

Changes in Brand Preferences. Respondents were asked to indicate whether their brand preference for seventeen specific products had last changed "in the past 6 months," "in the past 6 to 12 months," "more than a year ago," or "never changed." They were also given the option to indicate that they did not use the products. Positive responses for the first category (in the past 6 months) were summed across the seventeen items to form an index of "changes in brand preferences" (Appendix).

Consumption-related Lifestyles. Respondents were asked to indicate their most recent change (or initiation) in seventeen consumption-related lifestyles (Appendix), whether it was "in the previous 6 months," "6 to 12 months ago," "more than 12 months ago" or "never had experienced or done the activity". Positive response to any lifestyle item "in the previous 6 months" category was coded as 1 otherwise 0. Responses were summed across the seventeen items to form a zero-to-seventeen point index for this variable.

Respondents were also asked to indicate their most recent experience of 25 evens, whether it was "in the past 6 months," "in the past 6 to 12 months," "more than 12 months ago," or "never experienced." In line with previous research (e.g., Cohen 1988; Norris and Uhl 1984) this question was used to measure acute stress or life event stress. The total number of life events experienced in the previous six months was used to construct a 0-to-25 point index of life events experience (Appendix). Subjects also responded to a list of fourteen life events they anticipated to experience "in the next 6 months," or "in the next few years." The total number of events anticipated was used to form a 0-to-14 point index of anticipated events (Appendix).

The global stress measure was a single-item measure which had been used in previous psychological studies of life events and stress (e.g., Norris and Murrell 1984). Specifically, the respondent was asked to indicate how stressful his/her life had been in the previous six months, with responses measured on a seven-point "terribly stressful" (7) to "not at all stressful" (1) scale. In order to validate this measure, a global depression measure was used. Respondents were asked to indicate, on a similar seven-point scale whether in the previous six months they had been "terribly depressed" (7) to "not at all depressed" (1). These two variables were strongly correlated (r=.588, p<.001), providing evidence of validity (Cohen 1988).

TABLE

ANALYSIS OF THE HYPOTHESIZED RELATIONSHIPS

RESULTS

The Table shows Pearson product-moment correlations and partial correlations for the hypothesized relationships.

Indirect Effects. Hypothesis 1 suggested a positive relationship between life events and changes in consumption-related lifestyles. The data support this hypothesis. Both the product-moment correlation and partial correlation are statistically significant (r=.302, p<.001 and r=.253, p<.001, respectively).

Hypothesis 2 suggested a positive relationship between life events and global stress. The data show that life events experienced are associated with higher levels of global stress (r=.289, p<.001), even after the possible influence of anticipated life events is partialed out (r=.232, p<.001), providing support for Hypothesis 2. Global stress, in turn, is associated with changes consumption-related lifestyles (r=.179, p<.001), but this relationship weakens considerably when the effects of life events (experienced and anticipated) are partialed out (r=.089, p<.01). These data support Hypothesis 3.

The relationship between life events experienced and life events anticipated is positive and significant, as posited (r=.268, p<.001) (Hypothesis 4). Anticipated life events are in-turn positively associated with global stress (r=.280, p<.001), even after the effects of life events experienced are partialed out (r=.220, p<.001). These data provide support for Hypothesis 5a. The relationship between anticipated life events and changes in consumption-related lifestyles is significant (r=.141, p<.001), but becomes insignificant when the possible effect of life events experienced and global stress are partialed out (r=.044, n.s.). The latter finding provides inadequate support for Hypothesis 5b.

The model also suggested that global (chronic) stress is a mediator between experienced/anticipated life events and consumption-related lifestyles. As recommended by Baron and Kenny (1986) a series of regression models were used to test for this mediation. According to Baron and Kenny (1986), perfect mediation holds when the independent variable has no effect when the mediator is controlled. However, our model implied partial mediation only as these variables had direct effects as well on consumption-related life styles. Thus we expected the parameter for independent variable (experienced events/anticipated events) to be reduced in magnitude when the mediating variable is introduced in the model. The effects of life events on consumption lifestyles apper to be direct. The regression coefficient (b) without the effects of the mediator (global stress) is .302 (p<.001); it changes to .273 (p<.001) when the effects of the mediator are assessed along with those of life events. Thus, consumption-related lifestyles are likely to change in response to acute stress rather than due to chronic stress. Similarly, the parameter for anticipated events (b=.141, p<.001) drops (b=.098, p<.005) when the mediator variable is introduced in to the model.

Direct Effects. It was further hypothesized that life events experienced or role transitions would be related to changes in brand preferences (Hypothesis 6). The data did not provide unequivocal support for this hypothesis. While product-moment correlation is statistically significant (r=.153, p<.001) when the effect of anticipated events, global stress, and consumption related life styles is removed, it is no longer significant (r=.057, n.s.). However, neither the product moment correlation nor the partial correlation between anticipated life events and changes in brand preferences are statistically significant (r=.065, n.s. and -.005, n.s., respectively), providing no support for Hypothesis 7. Consumption-related lifestyles change is a strong predictor of changes in brand preference. Both product-moment correlation and partial correlation are statistically significant (r=.271, p<.001 and r=.231, p<.001, respectively). These findings provide support for Hypothesis 8.

The mediating role of changes in consumption-related lifestyles was also examined using similar series of regression analyses. The regression coefficient of life events (b=.153, p<.001) drops significantly (b=.078, p<.05) when the mediator variable is introduced. These findings suggest that the effects of life events are mediated, at least in part, through consumption lifestyles. Similarly, the coefficient for global stress (b=.132, p<.001) drops significantly (b=.086, p<.01) when the mediator variable is introduced, confirming partial mediation by consumption-related lifestyles. However, the regression coefficient for anticipated events was not significant to begin with, reflecting no direct effect on changes in brand preferences.

DISCUSSION AND IMPLICATIONS

The results generally support the notion that changes in brand preferences may be viewed as outcomes of stress, mediated through consumption-related lifestyles, as individuals try to adapt to stressful life conditions or role transitions marked by life events.

These findings have implications for theory and practice. The findings of this research can help us understand and extend research presented by Andreasen (1984). They can help us understand the positive (opposite to what was hypothesized) relationship of stress to changes in brand preferences found. Also, in the Andreasen study, quantity of life status changes (events) was positively related to both stress and "lifestyles" (related to consumption behavior), which in turn were positively related to his "change in brand preferences" variable. Thus, consumers may attempt to deal with averse psychological conditions during stressful life changes by initiating or changing their consumption lifestyles, which are likely to affect their brand preferences.

As previous research noted, consumer preferences are likely to develop and change in response to one’s efforts to adjust or adapt to new life conditions created by major life events and changes (e.g., Andreasen 1984; Mergenhagen 1995; Schewe and Balazs 1992). Consumer transitions into new roles, or attempts to adjust to stressful life events, create opportunities for marketers to position their products. As consumers are likely to reevaluate their consumption priorities due to major life changes (e.g., retirement, widowhood), needs for specific product may develop or intensify. While the practice of segmenting the market by life stage or age is widely accepted, the results of the present research suggest that speciic life events and status changes might prove to be better predictors of consumer behavior than broader measures of life-status change. Furthermore, marketers should recognize the opportunities created by life events in their attempts to build their customer base. Thus, marketers who wish to attract new customers may want to appeal to those who recently have experienced, or are about to experience, major life events (e.g., marriage, relocation). By the same token, marketers should be aware that their loyal customers are at greater risk of "defecting" once they experience or are about to experience major life changes.

APPENDIX

ITEMS USED IN SCALE CONSTRUCTION

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