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Conservative when crowded? Crowds affect consumer behavior, researcher says

Mon, 09/23/2013

LAWRENCE — Heading to the mall this weekend for some new shoes? Dropping by Home Depot tonight? Or grabbing a burger at the McDonald’s drive-through window?

Ahreum Maeng, assistant professor in the School of BusinessThese three scenarios would obviously entail different levels of crowds, ranging from big crowds at the mall to no crowds at the drive-thru. And according to a University of Kansas researcher, that difference in crowd size can lead to dramatically different purchasing behavior by consumers.

New research by Ahreum Maeng, an assistant professor in the KU School of Business, finds that socially crowded environments lead consumers to be more conservative. Specifically, Maeng finds that consumers in crowded settings prefer safety-oriented options and are more receptive to prevention-framed messages than promotional messages — for example, preferring a toothpaste offering cavity protection over a toothpaste promising a whiter smile. Maeng also finds consumers in crowded settings are less willing to make risky investments.

“Consumers in crowded environments get conservative and safety-focused,” Maeng said. “We believe this is because people in socially crowded settings activate an avoidance system that results in a more prevention-focused mindset. This, in turn, makes socially crowded individuals more likely to choose options that provide prevention-focused benefits.”

Additionally, Maeng finds that the impact of crowd size is influenced by whether the consumer considers the crowd an “in-group” or “out-group.” Specifically, out-group crowds — people the consumer doesn’t identify as peers — lead to increased conservatism and a greater focus on safety.

Maeng describes her research in an article titled “Conservative When Crowded: Social Crowding and Consumer Choice,” which is forthcoming in the Journal of Marketing Research. The article is co-authored by Robin J. Tanner at the University of Wisconsin-Madison and Dilip Soman at the University of Toronto.

Maeng’s research comprises six experiments, which collectively exposed participants to crowded or uncrowded settings, then had them complete tasks or indicate preferences for messages, products and behaviors. One study had participants complete a questionnaire measuring their preference for prevention-themed concepts (like “avoiding enemies”) versus promotion-themed concepts (like “making friends”). Another experiment asked participants to do a word-search task for safety-related words (like “insurance” or “helmet”) and neutral words (like “coffee”). Yet another experiment gave participants a $10 gift card and asked them to make a series of investment decisions based on different scenarios.

Collectively, the experiments demonstrated that individuals in crowded settings were more conservative and less willing to gamble. And those impacts were moderated by whether participants were surrounded by in- or out-group members.

Implications for retail outlets … and beyond
Maeng’s research would seem to have important implications for various audiences, including consumers who could use the information to better plan the time and location of their shopping in an effort to better control their decisions.

Of course, perhaps the most obvious beneficiary of Maeng’s research would be store managers and retail marketers, who could use Maeng’s findings to drive decisions on product placement, marketing and advertising.

“For example, our findings indicate a store would benefit by selling and marketing products differently on a crowded Saturday during the holidays versus a Tuesday morning in August,” Maeng said. “And even within the same day, stores might consider changing their signage or product placement to account for different levels of crowding.”

But Maeng’s findings go beyond retail settings and could potentially apply to numerous environments that vary in their crowdedness. For example, a doctor in a crowded emergency room might be better off delivering a prevention-themed message to a patient – “This medicine will prevent the pain” – while a doctor in an uncrowded exam room might be successful with a promotion-themed message like, “This medicine will make you feel more youthful and energetic.”

Another example: A political candidate might use a safety-themed message at a crowded rally — “I can protect you from terrorism” — versus a promotional message on a postcard mailed to people’s homes.

“We believe our findings could have far-reaching implications and help inform not only individual consumers and marketing professionals, but policymakers and citizens in any setting that experiences various levels of crowdedness,” Maeng said.



Wanna Skype? Chancellor gets creative to surprise Truman winner. See it here: http://bit.ly/1awodaa
Rock Chalk! Junior Ashlie Koehn named KU's 18th Truman Scholar
Ashlie Koehn, a University of Kansas junior from Burns studying in Kyrgyzstan, interrupted helping her host family prepare dinner to make a Skype call on Monday evening.

RT @kulibraries : Check out this news feature & then check out his book with us: http://t.co/gLNJxmtx1B #KULibraries #KUWorks https://t.co/L…
Wanna Skype? Chancellor gets creative to surprise Truman winner From KU News Service: http://bit.ly/1awodaa Ashlie Koehn, a University of Kansas junior from Burns studying in Kyrgyzstan, interrupted helping her host family prepare dinner to make a Skype call on Monday evening. To her surprise, Chancellor Bernadette Gray-Little was on the other end of the call letting Koehn know she had been named a 2015 Harry S. Truman Scholar. Koehn is the 18th KU student to be named a Truman Scholar and the only 2015 recipient from the state of Kansas. Earlier this month, she was also named a 2015 Udall Scholar. And in spite of a distance of more than 10,800 kilometers and 11 time zones, Koehn’s thrill from hearing the news from the chancellor came through loud and clear. “Ashlie’s experience at KU epitomizes a quality undergraduate experience. She challenged herself in her coursework, exposed herself to different research opportunities, studied abroad in Germany, Switzerland and Kyrgyzstan, and participated in both student government and community service projects,” Gray-Little said. “This is quite a year for Ashlie. Her hard work is a wonderful reflection on her and also a great reflection on the university, and we all congratulate her.” Each new Truman Scholar receives up to $30,000 for graduate study. Scholars also receive priority admission and supplemental financial aid at some premier graduate institutions, leadership training, career and graduate school counseling, and special internship opportunities within the federal government. Koehn, a member of KU’s nationally recognized University Honors Program, is majoring in environmental studies, economics and international studies. Her goal after earning her KU degree is to pursue a master’s degree in economics at either the London School of Economics or the University of Reading, with a focus on the economics of climate change. In 2014, she received KU’s Newman Civic Engagement Award for her work establishing the Coalition against Slavery and Trafficking. Her involvement with the issue was sparked by Hannah Britton, associate professor of political science and women, gender, and sexuality studies, who hosted national conference on contemporary slavery at KU three years ago. “Ashlie and I met several times to think about what KU students could contribute to the issue of slavery and human trafficking, and the result was her founding of KU CAST,” Britton said. “After a year as president, Ashlie successfully handed the organization over to the next student leader. She demonstrated her strong leadership qualities by setting a unique goal and then pursuing it with her sense of passion, engagement and dedication. No matter the country or context, her leadership strength is evident in her coursework, her public service and her work experiences.” The University Honors Program works with a campus committee to select KU’s nominees for the Truman Scholarship and supports them during the application process. Anne Wallen, assistant director of national fellowships and scholarships, noted it was an amazing ruse to pull off the surprise. Originally, the call was set up to be between Wallen and Koehn. “I was totally not prepared to be greeted by Chancellor Gray-Little, but it was an amazing surprise for sure,” Koehn said. “As a first-generation student, it took time to learn the collegiate system, but my parents taught me to be resourceful and independent from a young age and KU and the Kansas Air National Guard have provided me with the opportunities to drive me into the future, both at graduate school and in my career. I plan to use the Truman Scholarship to pursue a career as an environmental economist helping to shape future trade agreements and leverage action on important international environmental issues, particularly concerning climate change.” Koehn also had a surprise of her own for the chancellor — the meal she was helping to prepare was not exactly typical Kansas dinner fare. On the menu with her host family in Kyrgyzstan on Monday was a traditional Kyrgyz meal called Beshbarmak, or “five fingers,” because you eat it with your hands. The dish is made of horse and sheep and was being prepared as a birthday celebration for Koehn’s host mom. Chancellor Gray-Little, as she signed off from Skype, made sure to encourage Koehn to enjoy her Beshbarmak. Koehn is the daughter of Rodney and Carolyn Koehn of Burns. She graduated from Fredric Remington High School in Moundridge. She is an active member of the Kansas Air National Guard and currently on leave while studying abroad in Bishkek, Kyrgyzstan. She is a member of the KU Global Scholars Program and a past member of the Student Senate. In addition to being named a 2015 Truman and Udall scholar, she was named a 2014 Boren Scholar and Gilman Scholar and in 2013 was named the Kansas Air National Guard Airman of the Year.


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