Regulatory orientation and the customers’ decision journey

Abstract

Previous research has highlighted that behavior is the result of both individual and situational factors. Therefore, consideration of both these factors is importantto better understand and predict human behavior. Despite this, extant literature is replete with studies which have mostly focused on studying the influence of either individual or situational factors on behavior. Given the (i) increased complexity faced by marketers due to greater number of product and channel options at different stages of customer decision journey (ii) premise involving the importance of studying both individual and situational factors to understand behaviour (iii) paucity of research involving customer decision journey and channels from the regulatory focus theory perspective, this thesis aims to provide a nuanced understanding of customer behavior from a multi-channel and customer decision journey perspective grounded in regulatory focus theory. It provides a rich customer behaviour understanding during different stages of customer decision journey based on chronic and situational regulatory orientation interaction. It provides answers to the “why” (regulatory focus theory), of “what” (means and emotions) and “where” (CDJ and channel context) questions(Ratneshwar, Mick & Huffman 2003). Specifically, this research aims to determine the influence of chronic and situational regulatory focus interaction on the choice of means and emotions faced at each stage of cutomer decision journey. For instance, what means (e.g. channels) will be chosen and what emotions will be experienced in case of chronic promotion person facing promotion situation?A mixed method approach is adopted for this thesis. The first qualitative phase involved in-depth interviews with 30 multi-channel customers. The results of this phase indicated differences in channel choice, actions taken at channels and emotions experienced at each stage of the customer decision journey among the chronic and situational regulatory orientationsinteractiongroups. The results of the first phase helped in the design of second experimental phase. This experiment was conducted in lab settingwith the aim of identifying chronic and situational regulatory focus interaction on the online customer decision journey. The first two stages provide complementarity. The results of the lab session indicate a significantinfluence of incongruent chronic-situation regulatory condition on the basket amount, significant promotion chronicsituation congruent condition on session duration and significant prevention chronic-situation congruent condition on the overall extensiveness of search and comparison. The third phase involved 14 interviews with experts from different industries. These experts highlighted the channel choices and actions of their customers. The experts also explained their implemented marketing strategies for each customer decision journey stage. The results indicate greater focus on push online marketing and separate rather than an integrated focus on each channel. This thesis contributes towards consumer behavior, regulatory focus theory and mixed method literature. It helps obtain a rich understanding of the role of both chronic and situational regulatory orientation on the channel choices and actions taken at these channels during different stages of customer decision journey. This may help marketers in targeting, channel and messagedesign. The results emphasize that marketers must use a combination approach in online channel design, involving usage of visuals and information. Product category may provide further guidance regarding the extent of trade-off between one type of design overanother. The strengths and limitations related to each stage are also provided.

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ORCID for Andrew M Farrell: orcid.org/0000-0002-5903-3611

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