Understanding the consumer propensity to observe

Abstract

Purpose – The purpose of this paper is to explore the tendency of some consumers to use the purchase behavior of unknown other consumers as a purchase decision heuristic, by first developing a measure of the consumer propensity to observe. The effects of likely individual consumer factors are then tested.Design/methodology/approach – A total of 356 consumers participated in the study by completing a questionnaire containing items measuring the constructs of interest. The modeled relationships of variables were tested using structural equation modeling with interaction terms.Findings – The specified model was found to explain 43 per cent and 44 per cent of consumers' propensity to directly and indirectly observe, respectively. Key antecedents identified as significant influencers of propensity to observe are consumer risk aversion, brand choice overload, self‐confidence, and propensity to conform to group norms. Additionally, moderating effects are identified, indicating that propensity to observe is highe...