Understanding the consumer propensity to observe

Abstract

Purpose

The purpose of this paper is to explore the tendency of some consumers to use the purchase behavior of unknown other consumers as a purchase decision heuristic, by first developing a measure of the consumer propensity to observe. The effects of likely individual consumer factors are then tested.

Design/methodology/approach

A total of 356 consumers participated in the study by completing a questionnaire containing items measuring the constructs of interest. The modeled relationships of variables were tested using structural equation modeling with interaction terms.

Findings

The specified model was found to explain 43 per cent and 44 per cent of consumers' propensity to directly and indirectly observe, respectively. Key antecedents identified as significant influencers of propensity to observe are consumer risk aversion, brand choice overload, self‐confidence, and propensity to conform to group norms. Additionally, moderating effects are identified, indicating that propensity to observe is higher when certain contingencies interact.

Practical implications

The results of this research suggest that: observation is an important heuristic in choice decision for many consumers; specific consumer characteristics define observational consumers for targeting purposes; and retailers should consider observational tendencies of consumers when marketing and merchandising products.

Originality/value

This study is designed to fill this void in the literature by creating and validating a measure of the tendency to be observational; and by examining influencing factors of the one particular heuristic where consumers look to the purchase behavior of other consumers to resolve their own product choice dilemmas.

Citation

Simpson, P.M., Siguaw, J.A. and Cadogan, J.W. (2008), "Understanding the consumer propensity to observe", European Journal of Marketing, Vol. 42 No. 1/2, pp. 196-221. https://doi.org/10.1108/03090560810840970