Consumption in life transition : How do unemployed consumers behave in the marketplace?

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Consumption in life transition

How do unemployed consumers behave in the marketplace?

Master’s Thesis in Business Administration and Methodology Authors: Mesanovic, Diana

Sihvo, Cecilia Tutor: Hunter, Erik

Acknowledgements

The authors of this study would like to acknowledge the following people who have inspired the authors throughout the process of this research.

To begin with, the authors would like to thank all the consumers that have participated in this research, that took their time for the interviews and who have contributed with significant empirical findings. The authors would not have been able to accomplish this study without their contribution.

The authors would also like to thank their tutors, Mr. Erik Hunter and Mr. Benjamin Hartmann for their critical inputs, interesting discussions and for their precious time that they devoted to this thesis. Finally, the authors would like to show appreciation to their fellow students from the seminar sessions, at Jönköping International Business School, for their beneficial feedback during this semester.

_______________________ _______________________

Diana Mesanovic Cecilia Sihvo

Master’s Thesis in Business Administration

Title: Consumption in life transition – How do unemployed consumers behave in the marketplace?

Authors: Mesanovic Diana

Sihvo Cecilia

Tutors: Hunter, Erik

Hartmann, Benjamin

Date: May, 2010

Subject terms: life transition, consumer identity, consumption, social class, the

self-concept, the extended self, resistance, consumer resistance, escaping the market, desires, consumer desire, purchase decision, consumer decision, experience, impulse buying, consumer, involvement, methods, preparations, temptations, collecting information, priorities, everyday life resistance, reversed habitual decision making, the process of consumption in life transition.

Abstract

Background: We live in a world where not everyone is employed; numerous people have lost their jobs due to several factors where one of them is the economic crisis. This has had a huge impact on Sweden and the unemployment rate. Previous research has shown that inflation, unemployment, and high interest rates represent risks to consumer welfare. We all consume daily, or on occasions, but how do unemployed consumers consume, what do they consume and why? In this area, the authors have found a knowledge gap in literature; therefore exploring this phenomenon is of interest.

Purpose: The purpose of this study is to explore and illustrate how consumers who have experienced a life transition, from employment to unemployment, are affected by this and how it has an impact on their consumption.

Method: This is an exploratory study performed with a qualitative and an abductive approach, where the authors used primary data collection through semi-structured in-depth interviews in Swedish with 16 unemployed consumers. These unemployed consumers were selected at Arbetsförmedlingen, the public employment service, in Jönköping.

Results: By living in unemployment the consumers have been affected psychologically, physically, financially and socially. Their identity has changed for each of them since they have to adapt to the new circumstances in their life. The new life situation has had an impact on the consumer’s well-being where depression, anxiety, and a feeling of being the underdog in the society is present. Their new life situation has implied a change in their consumption behavior since they nowadays have to prioritize the basic needs. Many of the respondents used explicit and implicit shopping-list in order to reduce their impulse buying. The contribution that the authors have done to the theory of resistance is a fourth category called ‘Everyday life resistance’ which explains the behavior of people who live in unemployment, i.e. they always have to think about resisting temptations, wants, desires, and avoiding situations where the result may be unnecessary consumption. The consumers in this study are highly involved in their consumption behavior, which the authors have chosen to call ‘reversed habitual decision making’. This kind of involvement is very high despite the high- or low risk category of the product. Their new life situation has made them more aware of product alternatives, market supply, prices, and also knowledge about their own resistance in the marketplace.

Magisteruppsats inom företagsekonomi

Titel: Konsumption under en livsförändring – Hur beter sig arbetslösa inom konsumtionssamhället?

Författare: Mesanovic Diana Sihvo Cecilia

Handledare: Hunter, Erik Hartmann, Benjamin

Datum: Maj, 2010

Nyckelord: livsförändring, konsument identitet, konsumtion, samhällsklass, självuppfattning, utökat ego, motstånd, konsument motstånd, fly från marknaden, begär, konsument begär, köpbeslut, konsument beslut, upplevelse, spontanköp, konsument, involvering, metoder, förberedelser, frestelser, samla information, prioriteringar, vardags motstånd, omvänt rutin besluts genomförande, konsument processen under en livsförändring.

Sammanfattning

Bakgrund: Vi lever i en värld där inte alla har en anställning, en omfattande andel av befolkningen har förlorat sitt jobb på grund av flera faktorer, där en av dem är den ekonomiska krisen. Detta har haft en stor påverkan på Sverige och dess arbetslöshet. Föregående studier har visat att inflation, arbetslöshet och hög räntesats representerar risk för konsumentens välbefinnande. Vi alla konsumerar dagligen eller vid speciella tillfällen, men hur konsumerar en arbetslös konsument, vad konsumerar dem och varför? Inom detta område har författarna funnit ett kunskaps gap i litteraturen, därav är en undersökning av detta fenomen av intresse.

Syfte: Syftet med denna studie är att utforska och illustrera hur konsumenter som har genomgått en livsförändring, från att ha varit anställd till att vara arbetslös, är påverkade av detta och hur detta har inverkat på deras konsumtion.

Metod: Detta är en explorativ studie genomförd med en kvalitativ och abduktiv tillvägagångssätt där författarna har använt sig av primär information samlad genom, till viss del, strukturerade djupgående intervjuer på svenska med 16 arbetslösa konsumenter. Dessa var utvalda vid Arbetsförmedlingen i Jönköping.

Resultat: Att leva som arbetslös har påverkat konsumenterna psykologiskt, fysiskt, finansiellt och socialt. Deras identitet har förändrats då de måste anpassa sig till den nya livssituationen. Den nya situationen har påverkat konsumenternas hälsa då de känner av depression, ängslan och känner sig mindre värda i samhället. Deras nya livssituation har inneburit en det förändringar i deras konsumentbeteende eftersom de numera måste prioritera sina primära behov. Många av studiens deltagare använde sig av explicita och implicita inköpslistor för att minimera spontanköp. Författarnas bidrag till teorin om motstånd är en fjärde kategori kallad ‘Vardagligt motstånd’ vilket förklarar beteendet hos arbetslösa personer dvs. de måste hela tiden tänka på att motstå frestelser, begär och försöka undvika situationer där onödiga inköp kan uppstå. Konsumenterna i denna studie är synnerligen involverade i sitt konsumentbeteende, detta har författarna valt att benämna ’omvänt rutin besluts genomförande’. Denna typ av involvering är väldigt hög oavsett om produktkategorin innebär hög- eller låg risk. Deras nya livssituation har gjort dem mer medvetna om alternativa produkter, marknadens utbud, priser och ny kunskap om deras egna motstånd inom konsumtionssamhället.

Table of Contents

1

Introduction ... 1

1.4 The unemployment system in Sweden ... 4

1.5 Delimitations ... 4

1.6 Definitions ... 5

1.7 Outline of the thesis ... 5

2

Frame of reference ... 6

2.1 Choice of theory ... 6

2.2 The process of consumer identity renaissance ... 7

2.3 Consumer Identity and the self ... 9

2.3.1 Negotiating identity when contexts change ... 9

2.3.2 Consumption and social class ... 10

2.3.3 The self-concept and the extended self ... 11

2.3.3.1 Multiple levels of self ... 11

2.3.3.2 Money and extension of self ... 12

2.4 Consumer resistance ... 12

2.4.1 Escaping the market ... 13

2.5 Consumer desires ... 14

2.5.1 Desires in social context ... 14

2.5.2 Desire for sociality, danger and the inaccessibility ... 15

2.5.3 Desire to desire ... 15

2.6 Consumer decisions ... 16

2.7 Experience of consumption ... 17

2.8 Consumer impulse buying ... 18

2.9 Previous research on unemployment and consumption ... 19

2.10 Discussion of the theories ... 20

3

Methodology ... 22

3.1 Research approach ... 22

3.2 Research design... 23

3.2.1 Qualitative study ... 23

3.3 Literature collection ... 23

3.4 The sample collection ... 24

3.4.1 Target population... 24

3.4.2 Sampling frame ... 24

3.4.3 Sampling technique ... 24

3.4.4 Sample size ... 25

3.5 Interview technique... 25

3.5.1 From speech to text ... 27

3.5.2 Ethical issues ... 27

3.6 Analysis of data ... 28

3.7 Reliability, validity and generalizability... 28

3.7.2 Validity ... 29

3.7.3 Generalizability ... 30

4

Empirical findings ... 31

4.1 Experiencing unemployment ... 31

4.1.1 Living in unemployment ... 32

4.1.2 Feelings towards unemployment ... 33

4.2 Methods people use to deal with consumption ... 34

4.2.1 Avoiding situations... 34

4.2.2 Preparing before shopping for household ... 35

4.2.3 Collecting information ... 36

4.2.4 Dealing with temptations ... 36

4.3 Prioritizing during unemployment ... 37

4.3.1 Resisting consumption ... 37

4.3.2 Purchase decisions ... 38

4.3.3 Feelings towards brands ... 39

5

Analysis ... 41

5.1 The process of consumption in life transition ... 41

5.1.1 Life transition ... 42

5.1.2 Consumer identity... 43

5.1.3 Resistance ... 45

5.1.4 Desire ... 46

5.1.5 Involvement ... 47

5.1.5.1 Reversed habitual decision making ... 48

5.1.6 Consumption ... 49

5.1.6.1 Methods and strategies ... 50

5.1.7 Everyday life resistance ... 51

6

Conclusion ... 52

7

Discussion ... 53

7.1 Critique of the study ... 53

7.2 Suggestions for further research ... 54

7.3 Academic implications from this study ... 55

7.4 Managerial implications from this study ... 55

References ... 56

Appendix A ... 61

Questions for the interviews – English ... 61

Questions for the interviews – Swedish ... 62

Table

Figures

Figure 2 - The process of consumption in life transition inspired by Schau et al., 2009 ... 41

1

Introduction

This part of the thesis will introduce the reader to the topic by firstly presenting the background of this research. Further on, the problem area is discussed and the purpose is stated, followed by the research questions of this study, the perspective taken, the Swedish unemployment system and possible delimitations. The definitions will also be explained in the end of this chapter.

1.1 Background

We live in a world where not everyone is employed; numerous people have lost their jobs due to several factors where one of them is the economic crisis. In January 2008 in Sweden, the economic crisis showed its true colors when 17, 049 employees in Sweden had to quit their jobs (Dagens Nyheter, 2010). In December 2009, there was 417, 000 unemployed Swedes, which is a 34.9 per cent increase from 2008 (Statistiska Centralbyrån, 2009). The authors wish to contribute within consumer behavior, where the authors want to explore this phenomenon of how unemployed consumers chose to consume in the marketplace. The people of concern for this study have been through a life transition, a change from being employed to living in unemployment today.

In a letter to Jönköpings Posten, a local newspaper, an anonymous person who is unemployed expressed the feeling of living in unemployment as “an alienation from the society

where the self-esteem is challenged and the belief in the future is lost”. The person explains that there is no doubt that the recession has lead to the increase in unemployment, which has resulted in the fact that many of these people are living on the subsistence level and that they do not feel part of the society anymore (Arbetslösheten är lika med utanförskap, 2010, February 22).

We all consume daily, or on occasions, for instance when throwing a party, when we want to reward ourselves for a particular achievement, or celebrating an important event. However, most of the time we do it without much advanced planning or a second thought. How we consume, what we consume and why we consume have been significant influences on how people construct their lives (Miles, 1998). The authors want to investigate this phenomenon which concerns a specific group of consumers who live in unemployment which the business- and marketplace have limited information about. How do unemployed consumers consume, what do they consume and why? This area which concerns unemployed consumers is where the authors have found a knowledge gap in literature; therefore exploring this phenomenon is of interest, in order to contribute both to the academic- and managerial world.

Previous research has shown that inflation, unemployment, and high interest rates represent risks to consumer welfare (Monroe, 1990; Kotler & Roberto, 1989, Nagle & Holden, 1995; cited in Estelami, Lehmann & Holden, 2001). These factors, such as unemployment, are assumed to provide incentives for consumers to improve their knowledge of for instance prices, substitute products and services. The latest economic crisis, which started in 2008, has had a huge impact on Sweden and the unemployment rate. Earlier research on the Asian economic crisis has found that the social impacts are likely to be deep and can be expected to persist much longer after the economy returns to solid growth again (Knowles, Pernia & Racelis, 1999).

Consumption and lifestyle theories have revealed that consumption has a major role when creating the personal identity (Wilska, 2002). The demographic and socio-economic factors e.g. class, income, age, and gender have proven to have a great impact on the lifestyle and the consumption. According to Zhang and Baumeister (2006) people tend to waste money on resources because the concern over their self-esteem, and they also find various ways to moralize their consumption in order to justify them as being necessary and decent (Ger, 1997). People are not only consuming goods for what they mean to the individual, but also for what they communicate to other people around them (Beckman & Elliott, 2000). Simple credit terms with high interest rates are very common traps among impoverished consumers according to Hill (2002). This group of people are seen in the society as human beings with limited educational and intellectual skills as well as unforced victims. Hill (2002) states that necessary consumption like food, shelter, and medical care are the categories of consumption that people with low-income spend their money on (Hill, 2002). Is this also true for consumers who are living in unemployment?

Belk, Ger and Askegaard (1996) state that consumption is based not simply upon needs, but also upon desires, which can in the everyday life be referred to as a strong longing, or the process of passionately wishing for something. While needs is something that is anticipated, can be controlled and fulfilled, Belk, Ger and Askegaard (2000, p. 99) argue that “desires, on the other hand, are overpowering; something we give in to; something that takes control of us and totally dominates our thoughts, feelings, and actions”. They conclude their argument by stating that “passionate potential consumers are consumed by desire”. How do unemployed consumers perceive their desires, and is their consumption based upon these?

There have been few researchers who have focused on the motivation behind resisting the market at different stages of life (Close & Zinkhan, 2007). How has the unemployment affected people and their consumption, do they try resist it as a consequence of being unemployed? Some findings have shown that there are financially based motivations for resistance (Close & Zinkhan, 2007). According to Cherrier (2009) resisting consumption is not easy to adopt since consuming does not only provide comfort and satisfies physical needs; ultimately it contributes to the construction of one’s self and the communication of it to others. Consumers are offered the possibility to creatively pursue individual identities with the help of the immense diversity of products and services to choose from in today’s society.

1.2 Problem area

The authors of this study have found it difficult to find previous studies on people who live in unemployment and their consumption. What does it mean to be unemployed in today’s society where consumption plays a huge part in people’s lives? The authors are interested to explore how people, who have gone through a life transition and find themselves in unemployment, deal with consumption. The situation of unemployment is a life transition per se, which the authors will focus on, rather than a capital transition. Money and consumption are indeed related, but the authors want to put their focus on the life transition as such, and to explore how this affects the consumption of an unemployed consumer.

Belk, Ger and Askegaard (2003) explain how consumer desires involve hope and are significantly energizing, and how this also helps to explain the misery of people who cannot

afford hopeful desires. Further, they conclude that those who can neither afford nor hope to consume, must either let consumption exist only in magic and fantasy, or decide to not desire (Belk et al., 2003). The economic crisis has led to many people now facing unemployment in Sweden; therefore there is a need to understand how people in unemployment are affected by this life transition and how they are choosing to consume in the marketplace since there are no answers to how this change is experienced on a consumer level. Further, since research done on this area is falling short in explaining this from a consumer perspective, the authors wish to contribute with new knowledge. Therefore, the authors’ intended contribution with this study is to give new insights within the field in consumer behavior concerning unemployed consumers and their consumption.

1.3 Purpose

The purpose of this study is to explore and illustrate how consumers who have experienced a life transition, from employment to unemployment, are affected by this and how it has an impact on their consumption.

1.3.1 Research questions

Research question 1: What is the experience of unemployment from a consumer perspective concerning their consumption?

Research question 2: What kind of methods and strategies do unemployed consumers use to construct their daily consumption?

1.3.2 Perspective

In this research, the authors will take a consumer perspective and study the methods and procedures that consumers, who have gone through a life transition and are living in unemployment, use in their consumption to construct their everyday life. The authors feel that it is crucial to take a consumer perspective because consumers play an important part in the marketplace. Without the consumers, the marketplace would not exist. By investigating unemployed consumers, the authors can get insights in the methods and procedures they “use for conducting the different affairs that they accomplish in their daily lives” (Coulon, 1995, p. 2).

The authors found an inspiration for this study in ethnomethodology. Coulon (1995, p. 2) defines ethnomethodology as methods people use to create their everyday life: “Ethnomethodology is the analysis of the ordinary methods that ordinary people use to realize their ordinary actions”. Ethnomethodology is, instead of being seen as a research method, considered more as a research perspective (Coulon, 1995).

Atkinson (1988) states that ethnomethodology has had a great impact on the study of everyday life. He also argues that ethnomethodology has had a major role in our “understanding of social life in institutional settings” (Atkins, 1988, p. 442) in the pedagogic appointments, medical sessions, legal processes, scientific work, and political conferences. Ethnomethodology deals with the structuring principles used by a group or a society (Hartmann, 2009); therefore this perspective is suitable for the authors in order to fulfill the purpose of exploring how consumers who live in unemployment organize their consumption.

1.4 The unemployment system in Sweden

The unemployment system in Sweden can be quite confusing. The Swedish Federation of Unemployment Insurance Funds, SO, (2009) explain that in Sweden there is something called unemployment insurance which covers a part of the income loss for the period of unemployment that a person faces. This insurance is divided into two parts; a basic- and an optional loss of income insurance. One needs to be a member of an unemployment insurance fund to be able to take part of the optional insurance. In Sweden there are 32 different unemployment insurance funds which people can choose from depending on their field of activity or work. To obtain money from the basic insurance one need to satisfy several requirements, such as; willing to work at least three hours per day for at least 17 hours per week, be registered as entirely or partly unemployed, looking for work at the public employment service, Arbetsförmedlingen, and seek for work actively (SO, 2009). In order to take part of the unemployment insurance one needs to fulfill the requirements for basic insurance, be at least 20 years old, and also satisfy the work requirements. The work requirement consists of “that you during the twelve-month period immediately before the unemployment, must have been gainfully employed for at least 80 hours per month for at least six calendar months”. If this requirement is not met, it is necessary to have worked for 480 hours during a continuous period of six calendar months. At least 50 hours of work in each month is required. “People can satisfy the work requirements either as an employee or by working in their own company”(SO, 2009, p. 3). The first seven days when people have become unemployed they are not able to take part of the unemployment insurance since these days are considered to be ‘waiting days’. If an unemployed rejects an appropriate work offer from the employment service, they will inform the unemployment insurance fund that the person belongs to and the consequence of this may be that the benefit will be reduced. If a rejection happens three times within the same period the benefit will be disabled (SO, 2009).

1.5 Delimitations

The authors of this thesis aim at receiving in-depth, qualitative information from consumers who live in unemployment. This study will be conducted in Jönköping, where the authors will interview the people selected. The plan is not to be able to tell something about all unemployed in Jönköping, but to get a deeper understanding of the meaning of being unemployed on a consumer level. The aim is not to be able to generalize for whole Sweden, neither is it to prove and disprove anything. Instead, the authors want to generalize within their targeted sample and also connect theory to the findings. Further, the authors want to clarify that the intention is not to explore how income affects people who live in unemployment. Instead, the authors want to bring meaningful interpretation of how consumption is experienced by people who live in unemployment and who have gone through this life transition.

The authors have chosen to interview people who are registered at Arbetsförmedlingen, since this is the Swedish administrative authority that connects unemployed people with organizations looking for labour (Arbetsförmedligen, 2010). The authors believe that this is the right place to search for people who live in unemployment, but this can also be seen as a limitation since many people are not actively searching for a job through Arbetsförmedlingen.

1.6 Definitions

Arbetsförmedlingen: the public employment service, an administrative authority that connects the people who look for jobs with those who look for labour. Their mission is to improve the function of the labour market in Sweden (Arbetsförmedlingen, 2010).

Desire: Desire refers to a strong longing, or as a process of wanting something strongly. These are passionate imaginings which are shaped by, and also expressed in, a social context (Belk et al., 2000).

Experience: the experience of consumption can be seen as a phenomenon, where the consumer is directed toward “the pursuit of fantasies, feelings, and fun” (Holbrook & Hirschman, 1982, p. 132).

Need: a need is considered to be something that is “necessary for the survival of the person” and an organization. Shelter, sleep, and food are the basic necessities for survival (A Dictionary of Sociology, 2009).

Unemployed: in Sweden, a person who counts as an unemployed is not employed, is between 15-74 years old, can start working within fourteen days, and has actively searched for a job the last four weeks or wants to start work within three months. Also, fulltime students who are willing to take a job and are actively searching for it are defined as unemployed as well (Ekonomifakta, 2010). In this study unemployed will be referred to people who live in unemployment and have been employed before, meaning that they have been through a life transition.

Want: a want is referred to a thing that is desired (A Dictionary of Sociology, 2009).

1.7 Outline of the thesis

Chapter 2: This chapter of the thesis will discuss the theories chosen and their significance for this study. The theories will be presented in detail, and then the empirical findings for this study will be applied to the theories later in the analysis section.

Chapter 3: In this part of the thesis the reader will get an insight in how the authors gathered the empirical information needed for this study. The method chosen will be discussed, and also how the authors have analyzed the data. In the end of this chapter the authors will talk about the reliability, validity, and generalizability of this study.

Chapter 4: In this part of the thesis the empirical findings from the interviews will be presented. It has been divided in three parts, experiencing unemployment, the methods people use, and prioritizing during unemployment. Within these sections, overviews of the main findings are specified, the interview questions are stated and also quotes from the interviewees are presented.

Chapter 5: In this section the authors will analyze the empirical findings and connect it to the theories chosen. This part will start off by explaining the authors suggested model, i.e. the process of consumption in life transition, where the life transition, the consumer identity, resistance, desire, involvement and consumption is analyzed.

Chapter 6: In this chapter, the authors will give a conclusion for this thesis.

Chapter 7: Finally, the authors will discuss their findings, present their critique for this study and give suggestions for further research that can be done within this area.

2

Frame of reference

This chapter of the thesis will discuss the theories chosen and their significance for this study. The theories will be presented in detail, and then the empirical findings for this study will be applied to the theories later in the analysis section.

2.1 Choice of theory

The authors will use the theory as a part of an interactional process of the data collection. The theory will be used in order to interpret the empirical material received from the interviews, and the authors wish to contribute with new theory on this subject as well, which will be explained in the analysis section. The theories chosen will help to explain what the authors learn from the interviews, and also serve as a design of the investigation. This section will start off by explaining the theory called ‘the process of consumer identity renaissance’. This model has been an inspiration for the authors when creating their own model. The model of consumer identity renaissance is applied on people who face a new life stage, namely retirement, and how their life story and their consumption patterns change. Even though the area is not the same, the authors feel that this theory can be applicable to people who live in unemployment since it involves a triggering event. The triggering event has an impact on the person’s identity which in turn affects the consumption. Since the authors wish to explain the experience of consumption while living in unemployment, this theory allows the authors to connect several different theories and explain this phenomenon from another angle.

Next, the authors will explain several theories within the field of consumer identity and the self. The theory that deals with negotiating the identity will help the authors to clarify how unemployment is a threat to a person’s identity. Further, as one’s identity changes, the consumption patterns changes as well. The theory on the self-concept will help the authors explain how possessions can represent consumers and be part of the extended self. This theory will help the authors to understand the different levels that exist of the extended self and to see how this can be applied on consumers who are unemployed. The theory of consumption and social class will contribute to this thesis by explaining how people are members in a community, where they are placed in different social classes by the members. In what social class a person belongs to, will determine how people will spend their money, and also on what type of consumer goods.

Next, a theory on resistance is significant to include in this study because it explains the different categories of resistance, and how the consumer can try to escape the marketplace. Sometimes possessions, as well as parts of our life, have to be given up or resisted, when there is a life transition. This theory will contribute to the explanation of how unemployed consumers perceive this and how they resist the marketplace. Further, the theory of desires will help the authors to understand how desires are the motivating force behind today’s consumption. This continues with a theory on consumer decisions which are of importance for this study since it explains the different levels of problem solving consumers engage in. The authors wish to understand the experience of being an unemployed consumer, therefore a theory of experiencing consumption is of concern. Finally, a theory on consumer impulse purchase will explain how different factors in the marketplace can convince consumers to make impulse purchases, even if they have not planned it.

After searching through previous research, the authors have found that people who live in unemployment show more symptoms of anxiety and depression compared to employed people, they have more health related issues. Some previous research has showed that low-income consumers spend most of their money on necessary items; people in general also appear to use shopping-list when they go grocery shopping. These findings connected to unemployment will be presented in the end of this chapter. Finally, the authors will have a discussion on the relevance of these theories, how they can be connected to unemployment and how they will be used in the analysis.

2.2 The process of consumer identity renaissance

An inspiration for the authors when creating their own model has been the theory of ‘the process of consumer identity renaissance in retirement’ (see below in Figure 1) developed by Schau, Gilly and Wolfinbarger (2009). Retirement as well as unemployment is a life transition, which includes a change in a person’s life, including a change in identity, consumption inspirations and consumption activities performed in the marketplace. Therefore, the authors have included this theory since it explains all the different stages that a person experiences in a life transition. Further, it clarifies how these different parts are connected and how they impact each other. This theory is relevant for this study, because when a person experiences a life transition, with the result of living in unemployment, there are several elements, both internal and external, that have an impact on the consumer behavior in the marketplace. The study made by Schau et al. (2009) is concerning the retirement as a life stage which is very dynamic and where a ‘new’ identity is made. In this stage of life people usually have more time to spend on different goals and projects, they also have time to add more memories to their life through consumption of experiences, services and goods. Their model show how the consumer identity is made by consumption inspirations via consumption enactments, this will in the end result in “consumer identity renaissance” (Schau et al., 2009, p. 258).

The authors will explain the different components in the model which are; the triggering event, life narrative, consumption inspirations and consumption enactments.

The triggering event is the factor that starts the whole process; in this case Schau et al. (2009) have chosen retirement as the factor which leads to a change in the stage of life. This chosen trigger may originate from an external impact e.g. relocation or decrease in employees by a corporation, an unexpected financial gain or when a person may want to take care of a loved one. The internal impact to this trigger can be a disease, choice or desire (Schau et al., 2009).

The life narrative in this situations is the retirement, which is seen as a life stage where people actively want to contribute to their life story i.e. start a new chapter in their life which also affects the personal identity. According to Schau et al. (2009), in this stage of life the couples that retire together now have the opportunity to get to know each other e.g. realize if they have anything in common other than their kids. The life narratives of these people are influenced by present situations and the past experiences, but still they are long-term and look into the future (Schau et al., 2009).

Consumption inspirations include self-expression and affiliation. The self-expression concerns the internal-direction of inspirations referred to the development or enhancing the self which are then displayed outwards. There are four kinds of self-expression inspirations; retrieval, permanence, synchronization, and discovery. The first one, retrieval, concerns the fulfilling and renewing of life goals. The second one, self-permanence regards the establishment one of a kind legacy that lasts and will be recognized by others after they are gone. The third, self-synchronization, concerns the fact that the retiree’s want to be up to date with their actions, so it is in alignment with the present society and culture. The last one, self-discovery, regards the creation of new life goals, memories, and life projects. On the other hand, affiliation is the direction of others as an inspiration where symbolizing, maintaining, and forming social connections are of concern (Schau et al., 2009).

Consumption enactments deals with the retirees’ purchases, i.e. what retired people purchase and do in the market, here they “manifest consumption behavior” (Schau et al., 2009, p. 266). The allocation of their resources reveals the retiree’s identity rebirth where the performance of consumption will vary (Schau et al., 2009).

This model known as ‘consume identity renaissance in retirement’ is taking “place in a cultural context that favors individuality and where identity play” is allowed (Schau et al., 2009, p. 272). There are many different consumption alternatives available for the consumer to purchase in order to create the identity (Schau et al., 2009).

In this study, the triggering event is unemployment instead of retirement, which starts the whole process of life transition, which will have impact on the consumer identity. The consumption inspirations will have an impact on the consumer behavior. This is in turn, will have an impact on both the consumer identity and the consumption enactments, performed by people living in unemployment, instead of people in retirement. The theories that the authors have chosen, will be explained in the next section of the chapter, starting off with the next stage after the triggering event, i.e. consumer identity.

2.3 Consumer Identity and the self

The triggering event has shown to have an impact on the consumer identity (Schau et al., 2009). The personal identity is, according to Locke (2010), consisting of a durable awareness where a person is the same as last week as long as s/he can recall past conscious incidents. Solomon (2009) and Ball and Tasaki (1992), state that consumers purchase a lot of products in order to emphasize or conceal various features of the consumer’s self, these products have special purposes, since they will highlight our identities. These objects can range from private possessions to national landmarks or monuments with the aim of shaping the identity of the consumer (Ball & Tasaki, 1992; Solomon, 2009). The identity is, according to Ball and Tasaki (1992), developed from past experiences in a consumer’s life as well as from owned items. The involvement a consumer has attached to an object is determined from how important that item is for the consumer’s identity (Ball & Tasaki, 1992).

Across a person’s life span, there are transitions that happen in life which have significant affects on the self-definition (Ethier & Deaux, 1994). Individuals may find it necessary to adapt in some ways to these changes, which involve more than just monetary responses to situational pressure. Rather, the new situation may involve fundamental changes in the meaning, importance or support that a central identity has. The next section will describe how consumers need to negotiate their identities when they are confronted to a new context.

2.3.1 Negotiating identity when contexts change

A change in context concerns the efforts on social identity of a complete change in environment, where the former supports of an identity no longer exists as the person has known them. When the relationship between the individual and the environment changes during a life transition, the individual must adapt to these changes in some way. In the new context, the ways in which a person has previously maintained the identity are no longer valid or useful, and the person therefore needs to change the way in which the identity is maintained (Ethier & Deaux, 1994). To successfully maintain an identity in the new context, a person must develop new bases for supporting that identity. In this process, the person also needs to detach the identity from its support in the former context. According to Breakwell (1986) there are a variety of situations that pose threats to identity, including the loss of employment, the loss of spouse and cultural conflicts. In these new situations, people need to negotiate their identity.

An important aspect of the self-definition is the identification of oneself with other people, who share common attributes. According to Ethier and Deaux (1994), consumers who have weaker identification also perceive more threat in the environment and show a subsequent decrease in their self-esteem associated with that identity. This shows how important the collective membership is and the significant effects that group membership has on consumer behavior.

Social class is another element when constructing the identity, which is the next theory presented. Social class can be seen as an unfairness system, which is based upon a set of values, beliefs, and ideals. The authors feel that it is a significant theory in order to explain how unemployed consumers think that they are perceived in the society, and also they perceive themselves as part of the society.

2.3.2 Consumption and social class

According to Holt (1998) materialism can be defined as a value or trait, which is illustrates those consumers who use possessions to attain happiness in their life, and status. By interacting in the marketplace, consumers can construct their social identities, where materialism plays an important element. Individuals can selectively express their unique identity by acquiring brands which symbolize their personalities.

Citizenship is a given status for those people who are a part of community, i.e. complete members. Everyone within this group of members is equal when it comes to the rights and duties connected to the citizenship. These rights and duties, for an ideal citizen, are developed within the community where the citizens live, which mean that they can differ between communities (Marshall, 2009).

Marshall (2009) divide the citizenship into three groups; civil, political, and social. The civil part concerns the given rights for freedom, i.e. the right to possess property, close legitimate contracts, independence of the person, right to justice, and freedom of speech and faith. The political division regards the right to be involved in the performance of political authority, and the fact of being able to be a member of a political body. The final group, social, considers the individual right from a degree of economic security and welfare to the full right of a part in the ‘social heritage’ and having a life that is in align with the society’s standards of how to live that life. Like citizenship, social class is based upon a set of values, beliefs, and ideals, which can be considered as an unfairness system (Marshall, 2009).

According to Warner, Meeker and Eells (2006), everyone should have the chance and the right of getting to the top since we all are equally worth. What kind of decisions and actions that we make each and every day is mainly decided upon which social class we belong to (Warner et al., 2006). Hollingshead and Redlich (2007) argue that the social class could be resembled with an iceberg where almost 90 per cent is hidden underneath the surface i.e. you cannot see everything with your eyes, some things are learned which you cannot touch upon. These authors used Titanic as one example to illustrate how the social class matters within the society. At Titanic people were divided into different floors of the ship depending on their social class. Then when the ship had rammed the iceberg the social class of the passenger was of importance if s/he would survive or not since the boat’s crew prioritized their passengers with the higher levels of social class (Hollingshead & Redlich, 2007).

According to Solomon (2009, p. 514-515), social class “describe the overall rank of people in a society… is as much of a state of being as it is of having”. People create a picking order, as the animals do, where they place themselves and others in different levels in the society which will symbolize their standing within the society. This standing is decided upon people’s accessibility to resources like consumer goods, housing, and education. People tend to try to achieve a higher level than what they are considered to belong, since they want to improve their ranking in the society. This can be connected to a desire, longing for something you do not already have, and then trying to fulfill it by using your own strategies. Where you live and where your community is, may influence how much financial resources you will spend and also in what way you will spend them – how one consumes, the products one purchases, are symbols for people’s status (Solomon, 2009). The authors have chosen to include the self-concept and the extended self as an additional element in the process of constructing the consumer identity, which is the next theory in this chapter. Our possessions symbolize our identity, and they also construct the social

world consumers live in. The authors feel that this theory can contribute to the explanation of how unemployed consumers use products and possessions they have, to construct their identity in the life transition they have experienced.

2.3.3 The self-concept and the extended self

Belk (1988) argues that our possessions are a major contribution to our identities, this is how we reflect upon ourselves and they can also be part of ourselves.

“We feel and act about certain things that are ours very much as we feel and act about ourselves. Our fame,

our children, the work of our hands, may be as clear to us as our bodies are, and arouse the same feelings and the same acts of reprisal if attacked. And our bodies themselves, are they simply ours, or are they us?”

(James, 1890, p.291; cited in Belk, 1988) The extended self does not have to be limited to external objects and personal possessions. Instead, the extended self can include persons, places, or even group possessions (Belk, 1988). Nuttin (1987) argues that in claiming that something is “mine”, people tend to believe that the object of matter is “me”. This is the notion of the extended self, a metaphor involving not only what is seen as “me”, but also what is seen as “mine” (Nuttin, 1987). The products we consume can have two symbolic functions according to Elliott (1997), first they construct our social world (outward – ‘social symbolism’), and second they construct the self-identity (inward – ‘self-symbolism’).

2.3.3.1 Multiple levels of self

Some possessions can be more central to self than other possessions, and often these differ over individuals, time, and over cultures (Belk, 1988).However, there is a hierarchical arrangement of different levels of self. Belk (1988) has identified four different levels of self ranging from a personal level towards things and places that people feel are a part of their social environment. These four levels consist of the individual level, the family level, the community level and lastly the group level, which are explained further (Belk, 1988). The individual level: personal possessions e.g. clothing, cars, make-up, jewelry; The family level: the home of the consumer and the furniture in it;

The community level: the consumer is a part of the town or neighborhood; The group level: monuments, landmarks, and social groups e.g. sports team.

Primary distinctions in the multiple levels of self are between an individual level and the collective conception of self. According to Belk (1988) through shared consumption symbols, consumers can express and define their group membership. These symbols can therefore help the consumer to identify group membership and also define the group self. Even though consumers can be individualistic, they still define themselves through group identity at various levels. Consumers can use personal possessions, such as their car or clothing to help them define an individual sense of self, whereas a family is more prone to use family possessions, such as the home, to define a family self for the members in it. The community level of self deals with how consumers have the willingness to defend their neighborhood in different areas, where urban communities, farm families, and rural communities are brought up. Just as in the individual level, where for instance clothing can express an individual sense of being, it can also indicate a group identity and express

belongings to a group. However, these signs of the group identity do not have to be individually owned products, but instead these symbols can be places, landmarks and sport teams.

2.3.3.2 Money and extension of self

The central levels of which objects can become a part of a consumer’s extended self have been discussed, and here the authors wish to bring up a unique area of consumer behavior that is affected by self-expression, namely money. Unemployed consumers, who have experienced a life transition, have faced a negative decrease in their financial situation. What happens with money as an extension of self when a person faces a life transition like losing a job? What mechanism and methods are at work?

Belk (1988) argues that consumers’ well-being is linked to their well-being of their money, when they believe strongly in money as part of their extended self. If a consumer has a desire to extend self through having different things, possession in life, then money can be used in order to buy these tangible and visible extensions of self. For some people, money does not belong to the extended self; it is too abstract and invisible. But for others, money itself is regarded as an extension of self (Belk, 1988). According to Diener (1984; cited in Belk, 1988) research has consistently found that people with higher income report higher self-esteem, happiness, and also satisfaction in life. By having more money, the consumer could feel stronger, less fearful, more charming, less vulnerable and wiser; money is basically seen as a symbol of success and power.

The next theory in this chapter is consumer resistance, which concerns the fact that people sometimes need to reject parts of the consumption. This theory explains that there are different categories of resistance, which people may engage in, in order to escape the marketplace. The life transition that unemployed consumers have gone through, has had an impact on their capital resources in a negative way i.e. they have less to spend on consumption, which may lead to resisting consumption. Therefore it is crucial to include theory that explains this from different perspectives.

2.4 Consumer resistance

Bagozzi and Warshaw (1990) present a theory they call ‘theory of trying’, which focuses on a consumer goal that s/he desire and may fail to realize or follow, since there may be several expectations of the capability to accomplish it. Gould and Houston (1997) argue that the theory Bagozzi and Warshaw present may have the outcome that the consumer “try to consume and succeed in achieving their goal, try to consume but fail to achieve their goal, or fail to try altogether” (Gould & Houston, 1997, p. 211). They also conclude that there are two categories of people; (1) the one who is just not trying, and (2) the one who trying not to try. The first points out people that see other consumption options but they are not pursuing them. The second specify the people who put an effort in order to reduce their consumption in one or several parts in their life (Gould & Houston, 1997).

In the category ‘just not trying’ there may be many explanations of people’s behavior, Gould and Houston (1997) state that people who are satisfied with their present solution for their problem will not follow other suggestions. Further, people who consume by habit, inertia, will not change their behavior just because there may be other options to take in order to solve their needs, where factors such as laziness may be involved. Past trying may be a foreseer on future trying (Gould & Houston, 1997).

“To the degree that products to be foregone are seen as a part of the extended self, they must be denied, even as related parts of the identity are denied” (Belk, 1988). In any change of life people have to reject or give up parts of their life, as well as possessions related to the self-identity. Sometimes the consumer also denies aspects of the identity in order to form new associations with their identity where consumer goods may be used to make it noticeable (Gould & Houston, 1997).

2.4.1 Escaping the market

Kozinets (2002) argues that large corporations are widely viewed as possessing conflicting interests in certain consumer groups. Kozinets argument indicates that sharing and caring consumer communities, i.e. subcultures of consumption, can actually work against the market influences, “such as pitting consumers in competition with one another, or disabling their ability to share expensive products and services” (Kozinets, 2002, p. 33). In order to resist the atomizing and self-expression crushing competences of large corporations, consumers need to gather in a collective force.

“To disattach yourself from your belongings, to ask yourself what you can do without, what you came to the event to burn can be simultaneously self-reflective and self-transforming.”

(Kozinets 2002, p. 34) This process that is explained by Kozinets is in contrast to what Belk (1988) describes about consumer and their material possessions, i.e. how they contribute to the extended self. Kozinets (2002, p. 34) argues that the “burning of acquisitions can be a transformational shrinking of this (over)extended material self”. However, he states that escaping the market is not possible to completely accomplish. The seduction by particular products and symbols in the market, appeals to the consumer and their urge to differentiate them as consumers and be self-expressive does not help them to be released from the market’s game and social logic. The power of antistructure can be as a sense of release for the consumer, which seems enough to liberate the creativity, release the repression, fulfill people’s concealed potential, and to evoke self-expression. Kozinets concludes that “repeating the experience of resistance provide a foundation on which to build longer-term social change”, which is achieved by minor changes in the identity taking place collectively and simultaneously.

According to Close and Zinkhan (2009), consumers have, as a consequence of the heightened consumption during holidays such as Christmas, started to avoid, minimize, or adapt consumption traditions during these events. Close and Zinkhan (2009, p. 201) define anti-consumption as “active and passive resistance from consumers”. These attitudes are not just based on psychological factors; instead, these attitudes are largely influenced by cultural and societal factors. Close and Zinkhan (2007, p.14) argue that “resistance entails avoidance of unpleasant feelings”; furthermore these authors present three different categories of resistance, which are gift resistance, retail resistance and market resistance. Gift resistance: in gift exchanges people use limits, they do not give any gifts at all, or people may encourage others to not gift exchange;

Retail resistance: people may stay away from or on purpose boycott the retailers that are associated to a specific event that are not desirable;

Market resistance: consumers do not want to participate in behaviors related to a specific market e.g. engage in card or gift exchange – opposing the tradition during Christmas or any other holiday.

The gift exchange has according to Close and Zinkhan (2009) shown to spark anti-consumption behaviors. Consumers are resisting the market when they do not engage in the culturally-established behaviors related with a particular market. Therefore, consumers may actually resist a set of traditions related to the marketplace. The retail resistance may arise in response to over commercialization, where the consumers intentionally avoid retailers that are connected to non-desirable events. Consequently, Close and Zinkhan (2009) argue that consumers can, on a broader scope, resist an entire related set of marketplace activities. The authors feel that this theory is relevant because it can help to explain what relation unemployed consumers have to this phenomena of resistance, and how they resist their marketplace activities.

The next theory that will be presented is consumer desires. The authors find the theory of desires to be crucial in this study because it helps to explain the motivation for today’s consumption. The authors believe that understanding these desires can assist them into explaining the consumption behavior of unemployed consumers. Therefore, this next section will clarify how consumers are affected by their desires.

2.5 Consumer desires

Desire refers to a strong longing, or as a process of wanting something strongly (Belk et al., 2000), and it is said to be the motivating force behind much of today’s contemporary consumption. Desires are passionate imaginings which are shaped by, and also expressed in, a social context. They involve a quest for otherness, sociality, danger and inaccessibility and are embodied passions. Desires differ from needs, not only in their intensity or emotionality, but also in their basic perceived nature. While needs are perceived to originate internally and can be explained as a rational behavior, desires originate externally and do not offer a rational explanation.

These desires often take form of consumption in today’s modern societies. According to Gould (1991; cited in Belk et al., 2003) a consumption sequence is where an object desire arises, money is required to fulfill it, and then the object is acquired and finally consumed. This brings us to the death of the desire which ultimately leads us to a rebirth of a new desire focused on a new object. A desire can also be seen as a process where emotions change over time. Desires are kept alive and developed until the object is acquired or until it becomes clear that it will never be acquired, that it is beyond hope (Belk et. al., 2003). Desires also exist only within the person or group who participates in creating, nurturing, and pursuing it.

2.5.1 Desires in social context

Consumers have different consumption fantasies and they interact in different social situational contexts. Belk et al. (2003) argue that consumer desires are born between these consumption fantasies and social contexts. The craving for consumer goods not yet possessed can mesmerize and also help to promise magical meaning in life for people. The marketing system, with the help of advertisers and retailers among others, enchant these goods for the consumer. However, previous research also shows that the consumers are willingly acting as apprentices of this system by window-shopping, daydreaming, television

viewing, magazine reading, Internet surfing, word-of-mouth conversing, and observing others’ consumption (Belk et al., 2000; Belk et al., 2003).

“Desire addresses the interplay of society and the individual, of bodily passions and mental reflection”. (Belk et al., 2003, p. 328) Belk et al. (2003) argue that desires are a social template for the imagination. Therefore, people are always able to construct imaginations of a better life. These imaginations are then able to motivate people to take actions that attempt flesh out the imagination. This fleshing out of desires in modern societies often takes form of consumption. The scarcity or inaccessibility of various possible objects of desire is a factor that theoretically shapes what we desire. The definition which Rook (1987, p. 191) gives on impulse purchasing, “a sudden, often powerful and persistent urge to buy something immediately”, can be related to the powerful characteristics of desire. However, Belk et al. (2003) argue that impulse purchasing is sudden, where consumers seek immediate fulfillment, whereas desires are sustained over longer periods of time.

According to Campbell (1987), desires are incapable of fulfillment, since the objects of our desires can never be as magnificent as consumer’s imagination of them. Consumers balance between social encouragements to not only indulge, but also to control their desires (Elliott, 1997). This is carried out through personal cravings and inhibitions, where consumers are somewhat successfully resisting and controlling their desires (Belk et al., 2003).

2.5.2 Desire for sociality, danger and the inaccessibility

In the research carried out by Belk et al. (2003), there was noticed a pattern where the respondents had a desire for sociality, where relationships were the most important characteristic of desire. The things that were most often visualized by the respondents were people, including family, friends, and loved ones. For the reason that desire is such a powerful emotional condition, acting on some desires is seen to involve personally and socially dangerous consequences. Desires that can have personally dangerous consequences are those products that are considered unhealthy practices or addictive habits. On the other hand, desires that can have socially dangerous consequences is shown in the fear of what others will think of us, for instance as indulgent, weak, immoral and bad people if we pursue our desires.

Another way which desires are developed concerns the difficulty or the improbability of obtaining the desired object. As long as there is hope that a desire can be acquired, the distance can keep the desires alive. According to Belk et al. (2003), for those consumers that have hope, the presence of the distance, restraints and inaccessibility, makes the desire even stronger and more persistent. This is due to the fact that the desire will present challenges for the consumer, to heroically overcome these. The desire will lose its ability to remain an object of desire once the desired object is possessed.

2.5.3 Desire to desire

The fear of being without a desire makes the consumer sustain their desire to desire. When envisioning the absence of desire, consumers feel left without hope. To be able to desire and also to have some possibility to achieve the desire is to envision a transformed and ideal self. A chance of being able to realize a desire creates a state of hope, which is

pleasurable for the consumer. However, not being able to realize the desire, meaning that when the consumer is left with little or no chance at all to realize it, the resulting state is hopelessness, which is explained as a negative state of being. The consumer will subsequently be “forlorn, depressed, desolated, despairing, let down, discouraged, disappointed, resigned, hurt, or bitter” (Belk et al., 2003, p. 342).

The authors further argue that by making desire realization a goal, and working towards this, consumer may have an opportunity to increase hopefulness. Such work towards the goal can be “earning money, saving money, devoting time, sacrificing by forgoing other things, persuading others who are blocking the realization of a desire, preparing ourselves for attaining the object, being patient and being worthy and deserving” (Belk et al., 2003, p. 342). By exploring ways to make the distant object more accessible, consumers need to work on this to achieve desires. These actions will in turn nurture hope.

Next theory that is presented, deals with consumer decisions, and how involved consumers are in their purchases. The consumption is a part of the consumer’s everyday life, therefore the authors feel that understanding this consumer decision process, and their behavior before a purchase is made, is significant to this study.

2.6 Consumer decisions

There are different levels of involvement when making a purchase decision, i.e. low and high involvement (Crotts, 1999). The involvement one feels with a product is concerning the motivation one has to process information and the attention one give specific ads that are associated with a product. The process can vary from simple processing, i.e. low involvement, to elaboration, i.e. high involvement, depending on the consumer’s level of attachment. If the product is seen as low- or high risk is also considered when it comes to how much effort one should put on information search (Solomon, 2009). Crotts (1999) presents three different processes a consumer can engage in. Habit is on one end and on the other end one can engage in extended (also called complex) decision making; in the middle is where Crotts (1999) call limited decision making.

The extended problem solving concerns more expensive products which involves a high risk decision. This corresponds to a high consumer involvement since the consumers usually do not purchase this kind of products frequently, and are generally not familiar with the different brands and product classes (higher risk involved). The consumers feel that they have to make a more extensive information search (from both their memory and from external sources). This is done in order to gather as much information as possible and evaluate all alternatives in detail before making a decision. This type of decision making concerns mostly products that are related to the consumer’s ego and are within a more expensive category (Crotts, 1999).

In limited decision solving, consumers usually use guidelines to make simple decisions when they have many alternatives. This way of making a decision is quite similar to habitual decision making (Crotts, 1999). Consumers usually do not search for specific information or evaluate the alternatives carefully, instead they make easy and straightforward purchase decisions (Solomon, 2009).

Habitual decision making concerns with low risk decisions where the consumer purchase is made out of routine, usually with “little to no conscious effort” (Solomon, 2009, p. 352) where thought and search for information is very limited. The purchase is done automatically and straightforward; one may not recognize it before looking into its