Consumer Motivations in Emerging Markets: Risk, Uncertainty, and Emotions: An Abstract

Abstract

Consumer culture theory developed for and tested in more stable Western economies insufficiently explains the dynamics of consumption preferences in emerging markets (EMs) (Nielsen et al. 2018). EM consumers remain under emotional stress stemming from steep political and socio-economic transformations. COVID-19 crisis exacerbates already acute concerns, disrupts many established consumption practices, and amplifies the feeling of uncertainty for the future.The main research question of the present conceptual study attempts to address: which compulsory and hedonic drivers motivate a substantial increase of luxury consumption in EMs? Addressing this question, our study examines a critical role played by social group subcultures as dominant factors affecting the purchasing decision-making process of EM consumers. We also discuss the antecedents and consequences of consumption choice in social environments affected by cultural transformation. First, we analyze the effect of emotional stress induced by the social transition on consumer value orientation. Second, we review the process of social migration in EMs and the dynamics of intrapersonal psychology in light of the prevailing cultural norms in desired social groups. Third, we examine cultural transformation in EMs at the societal and group level as a factor motivating hedonic consumption. Fourth, we suggest the probabilistic model explaining the phenomenon of burgeoning luxury consumption in EMs resulting from the consumer volitional and compulsory choices. Finally, we discuss the managerial implications and directions of future research.In Ems, upward-moving ‘social migrants’ have a strong desire to join higher-status social groups but lack information about the cultural and consumption norms of those groups. We theorize that the uncertainty of choice torments them, affects their self-concept, and motivates consumers to overspend on luxuries to ascertain social acceptance. In other words, the desire to join a particular group at a higher social level serves as a compulsory factor making aspirants allocate an excessive share of their income for the public consumption of luxury in an attempt to signal their perceived congruity with a target social group. Middle-class consumers have to resolve the major discord between the perceived risk of non-acceptance by the target group – if they spend too little – and acute financial loss of over-spending – if they spend too much.The suggested conceptual framework recognizes the emotional stress of middle-class consumers caused by political and socio-economic uncertainties in EM societies and provides a different perspective on the “pattern-level dynamics of the social world” (Brewer 2016). Deriving from the analysis above, we outline a shift of cultural norms and extensive social migration as the primary antecedents of luxury consumption, while hedonic motivation becomes a secondary factor coming into play mostly upon acceptance by the desired social group.KeywordsEmerging marketsCultural transitionMiddle-classConsumer motivationsSocial group