Dafna Goor, Assistant Professor of Marketing at London Business School, delves into the realm of deservingness, its impact on decision-making, and the intricate world of consumer behaviour.
In the labyrinth of consumer choices, what drives individuals to pick one option over another? Is it the allure of luxury, the call of eco-consciousness, or perhaps something deeper? Welcome to the world of deservingness — a powerful force shaping decisions in ways yet to be fully understood.
1. How do feelings of deservingness influence consumer choices between goal-aligned options and indulgent treats or purchases?
Let's break down the concept of deservingness. It typically reflects a healthy mindset where individuals feel entitled to rewards or benefits after exerting effort or achieving goals. Conversely, those who haven't put in the work may not feel entitled to the same rewards. However, some individuals exhibit chronic entitlement, believing they deserve things simply by virtue of their identity, while others experience chronic un-entitlement, even when they've achieved success. This is often linked to imposter syndrome.
When considering its impact on consumer behaviour, the effects span various domains. My research focuses on luxury and eco-friendly consumption. In the realm of luxury brands, those who feel more deserving are inclined towards high-quality, prestigious products. Interestingly, entitlement emerges as a more potent predictor of luxury consumption than income or gender. This suggests that consumer segments differ in their attitudes towards luxury, with entitled consumers gravitating towards such products regardless of their income level. Luxury brands must thus differentiate themselves effectively to appeal to this segment.
On the other hand, unentitled consumers, often self-made individuals or those from lower socioeconomic backgrounds, may require a different approach to feel worthy of luxury purchases.
Moreover, we observe the influence of deservingness beyond luxury brands, as evidenced by campaigns like L’Oreal's 'Because I’m worth it', which empower consumers and promote self-worth and deservingness to all consumers. This messaging can influence indulgent behavior and sense of status.
2. Goor's, et al. (2020) study suggests that luxury items are less likely to create dissonance when marketed as something consumers deserve. How does this rhetoric affect consumer perceptions of luxury products and their relevance to their lives? What implications does this have for luxury brand marketing in the self-care era?
Not everyone feels entitled to luxury, either due to inflated perceptions of privilege or a low sense of deservingness. Interestingly, although the industry defines objective levels of luxury (for example, affordable, aspirational, and absolute luxury), the concept is also highly subjective and can vary from one person to another. For one consumer, the threshold for luxury can be Chanel no.5 perfume, while for another, it might be a Lamborghini. Our sense of deservingness can affect that threshold significantly, shaping how we define and relate to luxury. Naturally, more people are likely to feel undeserving of ultra-luxury products like a Richard Mille watch or a private jet.
The appeal of luxury is especially strong as a symbol of success, representing that one “has made it.” Some brands have recognized that consumers often buy luxury to compensate for feelings of inferiority. This is particularly pertinent in the context of self-care, where some brands have exploited consumers’ insecurities to drive sales by creating unrealistic beauty standards and tying self-worth to outer appearance rather than inner qualities.
However, many self-care brands today focus on promoting feelings of worthiness and balance in life. By aligning luxury consumption with notions of self-worth and well-being, brands can foster healthier consumer relationships, moving away from compensatory consumption towards a more positive and fulfilling engagement. Goor suggests that when consumers are made to feel deserving of luxury, they become more comfortable with the idea, leading to an increased willingness to invest in and enjoy luxury products.
3. Low self-esteem consumers may avoid superior products because they don't feel entitled to them. How can marketers address this issue and encourage consumers with lower self-esteem to consider higher-quality products?
Self-esteem and deservingness are distinct concepts, but they can intertwine as they both involve positive self-evaluation. Individuals with high psychological entitlement have an unrealistic positive self-view whereas the positive self-view of high self-esteem individuals tends to be more realistic. In our studies, we find that low entitlement predicts feelings of inauthenticity from luxury consumption, but low self-esteem does not.
To address this, marketers can employ strategies to instill feelings of temporary specialness. For instance, they can create ads emphasizing worthiness or organize events that make consumers feel special, such as birthdays or vacations. Marketers can also capitalize on significant life events like graduations or weddings to evoke a sense of deservingness and worthiness, thereby appealing to consumers across all confidence levels.
4. How do you see the impact of exerting effort on a person's sense of deservingness and their likelihood to make pro-social or eco-friendly choices? How does this factor into the broader context of consumer behavior?
My research indicates that exerting effort actually diminishes individuals' inclination to purchase eco-friendly products. This phenomenon stems from a belief that hard work warrants high-quality rewards, often perceived as incompatible with eco-friendly options due to perceived lower product efficacy and convenience. Therefore, after physical or cognitive tasks, individuals are less inclined to opt for eco-friendly alternatives compared to before undertaking such tasks.
This effect extends to temporal considerations, with individuals more likely to choose non-eco-friendly options towards the end of the day when feeling depleted and deserving of indulgence and convenience. Interestingly, this phenomenon is rooted in a perception that eco-friendly products are inherently more difficult to use, although this may not always hold true, especially for products associated with gentler categories such as baby soap or organic food.
5. The study by Demarque, et al.* (2015) highlights the effectiveness of social influence in promoting pro-environmental behaviors. How can marketers leverage social influence to encourage more sustainable consumption choices, particularly in the context of online shopping?
Social influence has always held considerable sway over consumer behavior, a trend magnified in today's digital age dominated by social media and the internet. One effective strategy involves leveraging social norms to shape behavior. For instance, informing consumers about their neighbors' eco-friendly practices can prompt them to adopt similar behaviors.
Furthermore, trust in peer recommendations has surpassed that in corporate messaging, making peer influence an impactful force. When individuals observe their friends engaging in sustainable actions and advocating for them, they are more inclined to follow suit. Additionally, associating eco-friendly consumption with elevated social status can further incentivize sustainable choices. Brands like Tesla have successfully utilized this approach, positioning eco-friendly products as markers of prestige and social responsibility.
Moreover, contemporary consumers, particularly Gen Z, increasingly prioritize values aligned with sustainability and social responsibility. Therefore, brands that embody these values not only signal status but also resonate with a broader consumer base seeking meaningful consumption experiences.
6. What happens when individuals recognize their self-worth and resist marketing strategies or the notion of feeling entitled to certain products?
Self-affirmation plays a role here. When individuals recognize their inherent value, whether through acknowledging their relationships, jobs, or contributions to society, they may find themselves less inclined towards materialism or the need for status-signaling products. Research indicates that such individuals are less likely to succumb to the allure of products meant to showcase their worth, as they already possess a sense of self-assurance.
However, life's complexities introduce additional dynamics. Social comparisons, such as encountering more successful peers, can trigger feelings of inadequacy and a desire to compensate. Interestingly, this compensation doesn't always manifest through luxury purchases; individuals may instead seek to highlight their strengths in other domains, such as family, social life, or personal achievements like sports. For instance, they may proudly display family photos, wear marathon T-shirts, or adorn themselves with symbols of their unique accomplishments, rather than resorting to conspicuous consumption.
In essence, while self-affirmation can mitigate the allure of status symbols, our multifaceted nature means that various factors influence our behaviors and decisions.
7. Are the methods employed by marketers to encourage purchases beneficial for the personal development of consumers? Isn't exercising restraint in unnecessary spending and being less swayed by such tactics generally beneficial for human growth?
The essence of human growth and well-being lies in fostering healthy psychological mechanisms, making this question paramount for leaders and business professionals to ponder. In today's society, where consumer demand increasingly emphasizes ethical standards and values such as sustainability and fair labor practices, such discussions become even more pertinent.
Consider the objectives behind marketing tactics: If aimed at promoting healthier eating habits or encouraging recycling, their effectiveness may lead to positive outcomes. However, when tactics are geared towards promoting excessive consumption, particularly in industries like fast fashion where disposability is encouraged, the focus often veers more towards profit-making than societal well-being.
Many ponder why consumerism seems to define our worth and value, prompting a growing sentiment towards mindful consumption and contentment with essentials. This inclination towards conscious consumerism is a healthy evolution, one where individuals scrutinize the motives behind their purchases and demand accountability from businesses and regulators alike.
Ultimately, embracing critical thinking and evaluating the standards we hold for companies and governments is crucial. As consumers, we must reflect on the kind of individuals we aspire to be and the impact our consumption choices have on our well-being and the world around us. This challenge is especially relevant in today's landscape, where Gen Z, is at the forefront of demanding accountability and ethical practices from businesses and decision-makers.
* - Christophe Demarque, Laetitia Charalambides, Denis J. Hilton, Laurent Waroquier (2015), “Nudging Sustainable Consumption: The use of descriptive norms to promote a minority behavior in a realistic online shopping environment”, Journal of Environmental Psychology, Vol. 43, 166–174.
