Marketing Behavioral Theories 1

Marketing Behavioral Theories

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Marketing Behavioral Theories 2

Introduction

The term "evolutionary consumption" refers to the study of consumer behavior utilizing

principles from cognitive science. This field is still in its infancy. Customers' bodies and minds

have been impacted by a number biologically-related aspects as well as consumer-related ones.

The Darwinian meta-drives of survival, reproduction, kin selection, and reciprocal altruism may

be extended to a broad variety of consumer phenomena. Studies of the content of cultural

commodities can uncover universal themes that point to a shared humanity that is unchanging no

matter where or when it occurs in time and space (Saad, 2013). Despite objections from those

who do not have a solid understanding of the field, Darwinizing consumer research provides a

number of practical and theoretical advantages. Originating from a long-evolved need to

consume, Homo consumericus has a unique genetic makeup.

Reciprocal Altruism

Actions that promote another creature while appearing to harm the one doing it can be

classified as altruistic. The benefit and detriment are defined in terms of the contribution to the

overall fitness of the organisms involved. It might be considered generous action if a person risks

his own life to save a distantly related stranger from drowning. He may not be acting

"altruistically" if he jumps in to save his child; he may contribute to the survival of his genes

rooted in the youngster (Saad, 2011). Altruistic behavior can be explained in natural selection;

however, these theories remove self-sacrifice from altruism. In this study, we'll refer to situations

like these as "kin selection," meaning that creatures are being chosen to aid those relatively close

to them in the evolutionary tree. Altruistic conduct can be chosen even if the receiver is so
Marketing Behavioral Theories 3

distantly related that kin selection can be eliminated from the equation. This model is aimed to

explain how this might happen and eventually influence marketing as a whole.

Altruism and Purchase Behavior

Increasingly, customers are concerned about environmental and humanitarian concerns.

Altruistic companies and brands have a significant opportunity to capitalize on the increasing

sentiment of compassion in society. New and fascinating applications of the growing field of

altruism study have been found in studies of consumer purchasing behavior (Naftolin and

Richman, 2004). Altruism has been studied extensively in the past in a social or psychological

setting, but it has a direct application to international purchasing decisions.

Increasingly, altruism is being discussed in the literature on ethics and business. Ethicists,

business leaders, and the economies of the nations they operate in all have an interest in

altruism's influence on purchasing behavior. A significant component of nations' trade

imbalances is in autos and automobile parts as automakers become increasingly active in selling

their goods outside of their native markets.

The study provided here examines how generosity affects actual purchasing behavior in

the real world. Customers' buying habits are reviewed in light of their previous car-purchasing

habits, such as whether they purchased new or used, where they got it from, and how much it

cost them. Consumer ethnocentrism, cognitive moral growth, and prosocial conduct are the three

components of altruistic purpose (Naftolin and Richman, 2004). According to research, altruism

has a secondary effect on purchasing decisions, even if there are many other factors. Consumer

ethnocentrism and prosocial behavior differ depending on the mode of acquisition and the place
Marketing Behavioral Theories 4

of origin, according to the research. After that, we'll talk about altruism and look at how it's been

shown to affect purchasing decisions.

Customers are exposed to a variety of product signals when companies put their items on

the market. The "made-in" label is one of the clues that a product is created in the United States

or another country. Consumers are introduced to the country-of-origin effect (COO) when this

cue is recognized. The phrase "region of origin" is used since particular nations are not studied in

this study (Saad, 2013). Some customers have no idea who the chief operating officer (COO) of

a product is, while others actively seek it out. Consumers' purchasing decisions may be

influenced by their preconceived notions about particular nations or their products. For certain

goods, the impact of the COO may be higher than for others. Consumers are increasingly

influenced by cosmopolitanism, which allows them to choose products regardless of where they

live, as long as they adhere to generally accepted criteria of quality and efficiency.

If a product or service's place of origin is important to customers, benevolence might be a

motivating factor in its purchase. This is especially true for those who are among the first to use

a new product. Early adopters of renewable energy are said to be motivated by a desire to help

the environment. With its initial gas-electric hybrid car, Toyota employed an altruistic appeal to

attract early adopters (Child, 2003), but since then it has tried to sell the vehicle with a more

universal appeal. Buying incentives have been demonstrated to shift from materialistic to

altruistic considerations with age, supporting Toyota's strategy.

Marketing Model of Altruism in Consumption

When it comes to the psychology of global consumer product decision, altruism provides

a valuable foundation. There hasn't been enough study into the exact link between altruistic
Marketing Behavioral Theories 5

conduct and product choice, thus this paper evaluates the existing literature and suggests a

research methodology for finding out. This type of altruistic activity is often characterized as an

action that might benefit someone else. Such behavior might be a result of self-serving motives

for example, on a national level, an increase in commerce influences a country's consumption.

Self-serving altruism occurs when one country's spending increases the marginal utility of

consumption in another country (Saad, 2011). To emphasize the significance of trade, this study

makes use of the economic reciprocity of countries' preferences. There is self-serving altruism if

both countries are equally self-serving, according to our findings. Ultimately, the results are

influenced by the tastes, cost structures, and commerce of different countries.

We employ a multi-agent Cournot model because the utility function of each nation takes

into account consumption from both its own citizens and those from other countries. When a

country pays for another country's consumption growth, it is known as an altruistic premium.

Beyond the supply side, where inverse demand prices are determined based on an examination of

trade, we investigate the demand side and identify optimal global supply. As a result, imports

and exports alter the supply-side economy of both the importing and exporting countries. In

many scenarios, prices and global marginal costs may equalize buying power (Garcia and Saad,

2008). The supply and demand sides of purchasing power parity are differentiated. Prices under

buying power parity, as well as manufacturing costs, are shown to be equal. Examples of the

impacts of foreign currency rates and altruism on pricing are given in this framework.

Is there any reason for the rescued person to reciprocate? Being saved from drowning

without injuring oneself appears to result from natural selection. What's the harm in lying? The

term " cheating " suggests no deliberate purpose or moral connotation is suggested by the term

"cheating," which is used throughout this work purely for the convenience of denoting a failure
Marketing Behavioral Theories 6

to reciprocate (Saad, 2011). Selection will exclude the cheater if his actions harm his life in the

long run and outweigh the advantages of not retaliating. In response to the dishonesty, the altruist

could prohibit all future humanitarian acts to this individual. Individuals who cheat will be

disadvantaged compared to those who do not because the advantages of these missing altruistic

actions outweigh the costs of reciprocating.

It is possible to make this claim more specific. There are both altruists and neo-altruism

in a population of N. The altruists are characterized by the fact that each performs altruistic acts

when their costs are well below their benefits, where costs are defined as how much their

behavior inhibits altruism. Benefits are defined as how much their behavior enhances altruism.

To make things easier, let's assume that for the sake of simplicity, altruistic conduct is regulated

by an allele (dominant or recessive), at a certain point and that (for simplicity) there is only one

alternative at that locus and it does not lead to it. It is feasible that altruists distribute their

generosity in one of three ways: first, at random throughout the population; second, by

considering their degree of genetic link with potential beneficiaries; or third, by considering the

potential recipients' altruistic inclinations.

Amount of reliance on one another. For example, to escape predators, species members'

interdependence tends to keep people close to one another, increasing the likelihood that they

may experience altruistic circumstances in a group. Individuals will be more likely to interact

with the same small group of people if mutual dependency is most beneficial when just a limited

number of people are present (Garcia and Saad, 2008). There is a trade-off between protecting

each other from predators and forage effectively in a small group. Primates are an excellent

animal to study for reciprocal altruism since they match all of the other criteria listed above
Marketing Behavioral Theories 7

(Gert, 1967). Interspecies cooperation in the form of cleaning symbioses may have paved the

way for the evolution of various altruistic traits.

Reciprocity Theory Consumption

When goods and services are given away, purchased, sold, or traded, there are potentially

two components of the exchange--pure economic gain and social gain.  Both of these motives

usually occur at the same time in non-market economies (Naftolin and Richman, 2004). 

However, in market economies, the social component is often missing except when the exchange

is between relatives or friends. With strangers, the social gain is usually sacrificed for efficiency

and speed.

Distribution and Exchange

In non-market economies, more than only food and manufactured goods are

exchangeable. Courtesies, entertainment (such as songs, dances, and speeches), cures, military

support, ladies and children are likely to be the most appreciated presents. The concept that

women and children may be handed away as presents is disturbing in today's Western World.

That was not always the case, however, in Europe's historical past (Garcia and Saad, 2008). In

order to develop or consolidate economic and political ties, royal and rich families continued to

marry off their daughters and occasionally sisters as late as the nineteenth century. Throughout

much of the world, men have used the practice of offering female relatives to possible male

friends as a significant bonding technique.

It is common for gift exchanges to be reciprocal. To put it another way, if you get a

present, you have an obligation to return the favor with a second one. It is common for

reciprocity to lead to an ongoing cycle in which one person gives, another person receives, and
Marketing Behavioral Theories 8

another person returns the favor. A slight or even a rejection of the other person participating in

the trade is generally considered as breaking this commitment to maintain the reciprocity.

Friendships and families are held together through reciprocity, which is why it is so important to

maintain it. A society's wealth is not redistributed via reciprocal trades in a way that leads some

people to grow wealthy than others (Feinberg, 2007). As a result, there is frequently a movement

of products and services. For people, there is no net loss in terms of money because they receive

presents in exchange. Having an adequate answer is necessary for reciprocity, although

mathematical equality isn't a requirement.

Types of Reciprocity

It's important to remember that reciprocal transactions aren't always the same.

Generalized reciprocity, balanced reciprocity, and negative reciprocity are all forms of

reciprocity that may be found in human communities across the world. In general, reciprocity

means giving without expecting a reciprocal gift in the near future (Slote, 1964). What if you're

shopping with someone and you buy him or her a cup of coffee? You could assume that he or

she will reciprocate. However, if he insisted on purchasing you a cup of coffee at the same time

that you bought him one, you would be somewhat annoyed. This suggests he does not want to

engage in a long-term reciprocal exchange with you. Your sign of friendship has been rejected,

in a way.

The expectation of prompt recompense is implicit in the concept of balanced reciprocity.

The ability to barter or shop at the grocery store necessitates this level of comprehension.

Business staff and even the police may be called to the scene if someone walks out of a store

without paying for what they have stolen, which is a violation of the store's terms of service.

Westerners' custom of exchanging Christmas presents is also a sort of reciprocity that strives for
Marketing Behavioral Theories 9

a fair exchange of value (Garcia and Saad, 2008). It's customary to exchange gifts with family

members or close friends on Christmas, but there is an expectation that you'll get something back

in return. If you don't get them, you can conclude that your family or friends are uninterested in

you or committed a social blunder. When you offer someone a birthday gift, you are not

expecting anything in return, which makes it more like generalized reciprocity. You can,

however, expect a thank-you note from the person who received your present later in the year,

around the time of your birthday.

Negative reciprocity isn't always about taking advantage of the other person. It's possible

that someone will offer you more than you think you're entitled to in return. A disadvantaged

student who hopes to attend a prestigious institution can show respect and politeness to his or her

wealthy uncle in the expectation that he or she would contribute financially (Feinberg, 2007). To

thank him for all the goodwill, that uncle could be willing to foot the bill for his nephew or

niece's college educations. He doesn't care about the money as much as he cares about the

respect and attention he receives. This might be considered a form of negative reciprocity when

an employee acts respectfully or even submissively toward their boss to earn a promotion.

Redistributive Exchanges

Some economic transactions aim to redistribute a society's wealth in a different way from

how it is now distributed. Redistributive exchanges are the term for these kinds of transactions.

They are frequently used to level the playing field in the economy. Examples of redistributive

exchanges in the Western World include charitable giving and progressive taxation. People who

have more money are expected to donate more generously than those who are less well-off,

according to progressive income taxation (Ridel, 2010). The tax money is then used to support

the less fortunate segments of society. Reduce or avoid riches and poverty are the ultimate goals
Marketing Behavioral Theories 10

of this plan. Charitable gifts made by the wealthiest members of society can have a comparable

effect. Donors may benefit from a reduction in their tax burden, a lighter social load, or all three.

In fact, the public notoriety that comes with making significant charitable gifts is one of the

primary motivations for some extremely affluent persons.

The West is not the only place where redistributive trades take place. In fact, some of the

most sophisticated ones have been found in small-scale cultures with non-market economies.

Among the indigenous peoples of the Northwest Coast area of North America, a potlatch is a

typical example of this type of social gathering (May, 2011). Gift-giving was part of a

complicated system that included competitive eating, public speaking, and gift-giving to raise the

prestige of the donor. In Western Canada, potlatches are best known to those who live on

northern Vancouver Island and the Queen Charlotte Strait, where they have been practiced for

centuries. A potlatch was a traditional Kwakiutl social gathering to commemorate life's

milestones, such as a son's marriage, a child's birth, a daughter's first period, or an initiation

ceremony for the son of a sister. Besides claiming or transferring economic and ceremonial

rights, they were also utilized for this purpose. Potlatch preparations might last months or

perhaps years (Naftolin and Richman, 2004). This necessitated borrowing money from family

members at a high interest rate.

Comparison Of Altruism and Reciprocity in Consumption

Sugden (1984) develops a theory in which the concept of reciprocity operates as a

restraint on traditional individual utility maximization. Individuals should not take a free, cheap,

or easy trip if others are contributing to it, according to the premise Observed charitable behavior

(when others contribute) and voluntary contributions to public goods can both be explained by

models of reciprocity. Four independent outcomes are presented in this research to compare the
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comparative statics predictions of these theories in order to identify them (Johnston, 2018) . At

least one finding supports theories of reciprocity, while contradicting theories such as traditional

self-interest, commitment, or altruism.

This finding shows that an individual's own contribution has a strong positive

relationship with his beliefs about the contributions made by others in his group, Observations

two and three compare an individual's own contributions and the real contributions of others in

his group in different contexts in order to assess the robustness of the preceding finding (Slote,

1964). Similar outcomes can be found. Finally, in the last experiment, we can see the exact kind

of reciprocity that our individuals exhibit. Conclusions show that median reciprocity, rather than

minimum or maximum reciprocity, is more common, with participants attempting to equal the

contributions of the rest of their group.

Conclusion

To say altruism plays an important part in human life is a matter of understanding what it

means to be an altruistic person. The presence of altruism cannot be disputed whether one means

helpful conduct or assisting in order to achieve small self-benefits such as enhanced self-esteem

or guilt avoidance, as most behavioral and social scientists do when they use the term (Garcia

and Saad, 2008). However, these formulations simplify the centuries-old argument over egoism

versus benevolence We can only confront the basic questions about human potential and nature

that this argument raises if we adhere to the concepts of altruism and egoism at its core.

Ultimately, the existence of altruism boils down to the question of value (Feinberg, 2007). Is it

possible for us to care about the well-being of others in the same way that we care about our

own? There is evidence that humans are capable of valuing another's well-being.
Marketing Behavioral Theories 12

References

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Gert, B. (1967). Hobbes and psychological egoism. Journal of the History of Ideas, 503-520.

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