IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v91y2018icp159-168.html
   My bibliography  Save this article

A typology of consumers based on money attitudes after major recession

Author

Listed:
  • Hampson, Daniel P.
  • Grimes, Anthony
  • Banister, Emma
  • McGoldrick, Peter J.

Abstract

Since the Great Recession, not all US consumers have felt the financial benefits of the sustained period of macroeconomic expansion. While some research demonstrates renewed consumer confidence and financial security among households, other studies highlight economic vulnerability and higher levels of distress relative to before the 2007/09 crisis. This study examines empirically the heterogeneity of consumers' money attitudes in the post-recession economy. Based on a nationally representative sample of US consumers (n = 1202), we identify four post-recession consumer types, distinguished by important attitudinal and behavioral differences: “Flourishing Frugal”; “Comfortable Cautious”; “Financial Middle”; and, “Financially Distressed”. While the prior studies offer broad strategic advice, this study indicates that marketers need differentiated strategies to target most effectively and deliver value to different consumer clusters.

Suggested Citation

  • Hampson, Daniel P. & Grimes, Anthony & Banister, Emma & McGoldrick, Peter J., 2018. "A typology of consumers based on money attitudes after major recession," Journal of Business Research, Elsevier, vol. 91(C), pages 159-168.
    • Handle: RePEc:eee:jbrese:v:91:y:2018:i:c:p:159-168
    DOI: 10.1016/j.jbusres.2018.06.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296318302984
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2018.06.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephane Dees & Pedro Soares Brinca, 2013. "Consumer confidence as a predictor of consumption spending: Evidence for the United States and the Euro area," International Economics, CEPII research center, issue 134, pages 1-14.
    2. Wagner A. Kamakura & Rex Yuxing Du, 2012. "How Economic Contractions and Expansions Affect Expenditure Patterns," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(2), pages 229-247.
    3. John T. Addison & Orgul Demet Ozturk & Si Wang, 2014. "The Role of Gender in Promotion and Pay over a Career," Journal of Human Capital, University of Chicago Press, vol. 8(3), pages 280-317.
    4. Steven J. Davis & James A. Kahn, 2008. "Interpreting the Great Moderation: Changes in the Volatility of Economic Activity at the Macro and Micro Levels," Journal of Economic Perspectives, American Economic Association, vol. 22(4), pages 155-180, Fall.
    5. Hampson, Daniel P. & McGoldrick, Peter J., 2013. "A typology of adaptive shopping patterns in recession," Journal of Business Research, Elsevier, vol. 66(7), pages 831-838.
    6. Pires, Guilherme D. & Stanton, John & Stanton, Patricia, 2011. "Revisiting the substantiality criterion: From ethnic marketing to market segmentation," Journal of Business Research, Elsevier, vol. 64(9), pages 988-996, September.
    7. Hunneman, Auke & Verhoef, Peter C. & Sloot, Laurens M., 2015. "The Impact of Consumer Confidence on Store Satisfaction and Share of Wallet Formation," Journal of Retailing, Elsevier, vol. 91(3), pages 516-532.
    8. Andreas Knabe & Steffen Rätzel, 2011. "Scarring or Scaring? The Psychological Impact of Past Unemployment and Future Unemployment Risk," Economica, London School of Economics and Political Science, vol. 78(310), pages 283-293, April.
    9. Lastovicka, John L, et al, 1999. "Lifestyle of the Tight and Frugal: Theory and Measurement," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(1), pages 85-98, June.
    10. John G. Lynch Jr. & Richard G. Netemeyer & Stephen A. Spiller & Alessandra Zammit, 2010. "A Generalizable Scale of Propensity to Plan: The Long and the Short of Planning for Time and for Money," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(1), pages 108-128, June.
    11. Lisa Peñaloza & Michelle Barnhart, 2011. "Living U.S. Capitalism: The Normalization of Credit/Debt," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 38(4), pages 743-762.
    12. Aimee Prawitz & Julie Kalkowski & Judith Cohart, 2013. "Responses to Economic Pressure by Low-Income Families: Financial Distress and Hopefulness," Journal of Family and Economic Issues, Springer, vol. 34(1), pages 29-40, March.
    13. repec:cii:cepiei:2013-q2-134-1 is not listed on IDEAS
    14. Garretson, Judith A. & Burton, Scot, 2003. "Highly Coupon and Sale Prone Consumers: Benefits Beyond Price Savings," Journal of Advertising Research, Cambridge University Press, vol. 43(2), pages 162-172, June.
    15. Cotte, June & Coulter, Robin A. & Moore, Melissa, 2005. "Enhancing or disrupting guilt: the role of ad credibility and perceived manipulative intent," Journal of Business Research, Elsevier, vol. 58(3), pages 361-368, March.
    16. Jing Xiao & Cheng Chen & Fuzhong Chen, 2014. "Consumer Financial Capability and Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 415-432, August.
    17. Furse, David H & Punj, Girish N & Stewart, David W, 1984. "A Typology of Individual Search Strategies among Purchasers of New Automobiles," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(4), pages 417-431, March.
    18. Goldsmith, Ronald E. & Reinecke Flynn, Leisa & Clark, Ronald A., 2014. "The etiology of the frugal consumer," Journal of Retailing and Consumer Services, Elsevier, vol. 21(2), pages 175-184.
    19. Bas Verplanken & Ayana Sato, 2011. "The Psychology of Impulse Buying: An Integrative Self-Regulation Approach," Journal of Consumer Policy, Springer, vol. 34(2), pages 197-210, June.
    20. repec:ucp:bkecon:9780226316529 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joon-ho Kim & Seung-hye Jung & Bong-ihn Seok & Hyun-ju Choi, 2022. "The Relationship among Four Lifestyles of Workers amid the COVID-19 Pandemic (Work–Life Balance, YOLO, Minimal Life, and Staycation) and Organizational Effectiveness: With a Focus on Four Countries," Sustainability, MDPI, vol. 14(21), pages 1-31, October.
    2. Sarmento, Maria & Marques, Susana & Galan - Ladero, Mercedes, 2019. "Consumption dynamics during recession and recovery: A learning journey," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 226-234.
    3. Nikodemska-Wołowik Anna Maria & Wach Dagmara & Andruszkiewicz Katarzyna & Otukoya Ade, 2021. "Conscious shopping of middle-class consumers during the pandemic: Exploratory study in Mexico, Nigeria, Poland, and Sri Lanka," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 57(3), pages 209-219, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cäzilia Loibl & Jodi Letkiewicz & Simon McNair & Barbara Summers & Wändi Bruine de Bruin, 2021. "On the association of debt attitudes with socioeconomic characteristics and financial behaviors," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(3), pages 939-966, September.
    2. Hampson, Daniel P. & Gong, Shiyang & Xie, Yi, 2021. "How consumer confidence affects price conscious behavior: The roles of financial vulnerability and locus of control," Journal of Business Research, Elsevier, vol. 132(C), pages 693-704.
    3. Marcelo Vinhal Nepomuceno & Michel Laroche, 2017. "When Materialists Intend to Resist Consumption: The Moderating Role of Self-Control and Long-Term Orientation," Journal of Business Ethics, Springer, vol. 143(3), pages 467-483, July.
    4. Conti, Claudio Ramos & Goldszmidt, Rafael & Vasconcelos, Flávio Carvalho de, 2020. "Firm characteristics and capabilities that enable superior performance in recessions," Journal of Business Research, Elsevier, vol. 119(C), pages 553-561.
    5. Youngwon Nam & Cäzilia Loibl, 2021. "Financial Capability and Financial Planning at the Verge of Retirement Age," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 133-150, March.
    6. Conti, Claudio Ramos & Goldszmidt, Rafael & Vasconcelos, Flávio Carvalho de, 2015. "Estratégias para desempenho superior em recessões: pro ou contra-cíclicas?," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(3), May.
    7. Kapitan, Sommer & Mittal, Sarah & Sundie, Jill M. & Beal, Daniel J., 2021. "What a great deal…I need that! Updating need drives frugal consumers’ responses to deep discounts," Journal of Business Research, Elsevier, vol. 134(C), pages 467-479.
    8. Wang, Hong & Ma, Baolong & Bai, Rubing & Zhang, Lin, 2021. "The unexpected effect of frugality on green purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    9. Nurul Shahnaz Mahdzan & Rozaimah Zainudin & Mohd Edil Abd. Sukor & Fauzi Zainir & Wan Marhaini Wan Ahmad, 2019. "Determinants of Subjective Financial Well-Being Across Three Different Household Income Groups in Malaysia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(3), pages 699-726, December.
    10. Craig Gundersen & David R. Just & Cäzilia Loibl & Anastasia Snyder & Travis Mountain, 2017. "Connecting Saving and Food Security: Evidence from an Asset-Building Program for Families in Poverty," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(3), pages 659-681, November.
    11. Sarmento, Maria & Marques, Susana & Galan - Ladero, Mercedes, 2019. "Consumption dynamics during recession and recovery: A learning journey," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 226-234.
    12. Guissoni, Leandro Angotti & Rodrigues, Jonny Mateus & Zambaldi, Felipe & Neves, Marcos Fava, 2021. "Distribution effectiveness through full- and self-service channels under economic fluctuations in an emerging market," Journal of Retailing, Elsevier, vol. 97(4), pages 545-560.
    13. Vineetha Mathew & Santhosh Kumar P K & Sanjeev M A, 2024. "Financial Well-being and Its Psychological Determinants— An Emerging Country Perspective," FIIB Business Review, , vol. 13(1), pages 42-55, January.
    14. Domingo Gil-Giménez & Gladys Rolo-González & Ernesto Suárez & Gabriel Muinos, 2021. "The Influence of Environmental Self-Identity on the Relationship between Consumer Identities and Frugal Behavior," Sustainability, MDPI, vol. 13(17), pages 1-15, August.
    15. Cesar Leandro, Julio & Botelho, Delane, 2022. "Consumer over-indebtedness: A review and future research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 535-551.
    16. Marnik G. Dekimpe & Barbara Deleersnyder, 2018. "Business cycle research in marketing: a review and research agenda," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 31-58, January.
    17. Yeniaras, Volkan & Akkemik, K. Ali & Yucel, Eray, 2016. "Re-considering the linkage between the antecedents and consequences of happiness," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 176-191.
    18. Lawson, Stephanie J. & Gleim, Mark R. & Perren, Rebeca & Hwang, Jiyoung, 2016. "Freedom from ownership: An exploration of access-based consumption," Journal of Business Research, Elsevier, vol. 69(8), pages 2615-2623.
    19. Evans, Freya & Grimmer, Louise & Grimmer, Martin, 2022. "Consumer orientations of secondhand fashion shoppers: The role of shopping frequency and store type," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    20. Michaelis, Timothy L. & Carr, Jon C. & Scheaf, David J. & Pollack, Jeffrey M., 2020. "The frugal entrepreneur: A self-regulatory perspective of resourceful entrepreneurial behavior," Journal of Business Venturing, Elsevier, vol. 35(4).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:91:y:2018:i:c:p:159-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.