Consumer Acumen: Augmenting Consumer Literacy

Abstract

Appreciating that some consumer scholars are expressing frustration with limitations of consumer literacy, this article offers additional construct of consumer acumen (i.e., astute, penetrating mind and intellect). After discussing consumer confidence in global recession and emergent post-recession consumer segments (reflecting recession's psychological toll), consumer acumen, modeled after emergent literature on business acumen, is defined, including six proposed dimensions. Consumer acumen augments consumer literacy with keen, penetrating consumer intelligence that informs quick perception and discernment of changing economic contexts. Consumer acumen is foundational competency for future, enabling people to better function in post-recession economy. ********** Over past few years, JCA has published several special issues on different dimensions of consumer literacy: financial (2008), health (2009) and privacy (2009). Recently, call for papers was released for upcoming issue on product literacy. Many scholars contributing to these special issues express frustration with limitations of consumer information, education, advice, policy and assessment of best practices in improving literacy levels leading to more consumer security and self-protection (see Kozup and Hogarth 2008). Concerning health, Bone, France, and Aikin (2009, p. 192) explain, knowledge is there. The desire [motivation], for most, is also likely there. Yet, behaviour, long term commitment, does not occur. Also in relation to health literacy, Rotfeld (2011, p. 166) observes the mystery remains why [an] educated community evinced preference for higher risk behavior or at least not take simple steps to reduce risks. Commenting on financial literacy, Kozup and Hogarth (2008, p. 127) lament, How do we motivate them to behave in their own best [financial] interest and 'self-protect'? Perhaps stemming from this frustration with limitations of consumer literacy initiatives, some consumer scholars are leaning toward proactive, contextual orientations. Rotfeld (2011) suggests that most pressing need for consumer education (indeed, any education related to different dimensions of consumer literacy) is to assess how or why some people actually do learn to change their behaviors and perspectives in positive fashion. Kozup and Hogarth (2008, p. 131) propose that, in addition to numeracy and critical thinking, core competency for financial education is an awareness and understanding of macro impacts of society's collective microdecisions [akin to complexity economics]. Also, in interesting intellectual contribution, they use term marketplace metacognition (p. 131). The latter refers to one having knowledge about one's own mental processes (Demetriou and Kazi 2006), in this case, knowledge about how one mentally functions in marketplace. Langenderfer and Miyazaki (2009) conceive privacy literacy as understanding of landscape within which one is interacting and of one's responsibilities within that landscape. Bone, France, and Aikin (2009, p. 191) conclude that a theoretical foundation, as well as empirical research, is necessary to implement successful literacy campaigns. In spirit of these intellectual innovations, this article offers idea of consumer acumen as new theoretical construct pertaining to penetrating and insightful consumer decisions made in full awareness of larger economic context. Since concept of consumer literacy has evolved, context within which consumers are operating has changed. Indeed, after recent global recession, consumers themselves have changed. To place idea of consumer acumen in context, this article first discusses notion of consumer confidence in global recession followed by brief overview of new conceptualizations of consumer market segments. The case is made for necessity of new theoretical construct beyond consumer literacy to reflect emergent post-recession consumer. …