Macromarketing Metrics of Consumer Well-Being: An Update: M. Joseph Sirgy
Macromarketing Metrics of Consumer Well-Being: An Update: M. Joseph Sirgy
Macromarketing Metrics of Consumer Well-Being: An Update: M. Joseph Sirgy
Journal of Macromarketing
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Macromarketing Metrics of Consumer ª The Author(s) 2020
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Well-Being: An Update DOI: 10.1177/0276146720968096
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M. Joseph Sirgy1
Abstract
This commentary updates much of the research related to the various constructs and metrics of consumer well-being. Specifically,
I review the research to date concerning several conceptualizations and metrics of consumer well-being from both public and
academic sectors. Public sector metrics include Cost of Living, Total Consumption Expenditure, Consumer Complaint, and
Quality. Selected contributions to consumer well-being metrics from the academic sector include Shopping Satisfaction, Shopping
Well-Being, Possession Satisfaction, Acquisition/Possession Satisfaction, Consumption Life Cycle, Community, Need Satisfaction,
Perceived Value in Life, and Bottom-up Spillover. I then provide some thoughts about how these metrics can be improved and
ideas that may spur future research. In doing so, I address issues related to construct validity to public sector metrics by
demonstrating association with human development measures. Metrics from the academic sector can also be improved by testing
association with newly established constructs of well-being (e.g., eudaimonia, social well-being) and introducing moderating effects
of individual differences (e.g., consumer involvement, consumer lifestyle) as well as product-related differences (e.g., experiential
versus material consumption; marketplace activities related to luxury versus nonluxury goods and services; and products
beneficial to society versus “sin” products).
Keywords
consumer well-being, consumer happiness, subjective well-being, life satisfaction, consumer welfare, consumer satisfaction
Table 1. Various Conceptualizations and Metrics of Consumer Well- countries should strive to increase or decrease consumption of
Being. goods and services to satisfy basic needs as a direct function of
Metrics from the Metrics from the
a ratio of total consumption expenditures and size of population
Public Sector Academic Sector (Ruger 2008).
The Better Business Bureau (BBB) of the U.S. developed a
Cost of Living Index Shopping Satisfaction consumer well-being metric based on Complaint data (http://
Total Consumption Shopping Well-Being www.thelocalbbb.com). Consumers call or write to the BBB
Expenditure Index Possession Satisfaction
and register a complaint against a company for problems
Consumer Complaint Acquisition/Possession
Quality Satisfaction related to the company’s goods or services. Consumer com-
Consumption Life Cycle plaints directed at specific companies and brands are aggre-
Community gated across all BBB communities. A high level of
Need Satisfaction complaints in relation to a specific company or brand repre-
Perceived Value in Life sents lower levels of consumer well-being — specific to that
Bottom-up Spillover company and brand.
Consumer Reports (www.consumerreports.org), a monthly
publication of the Consumer Union, provides expert assess-
Metrics of Consumer Well-Being based on ments of Quality for a variety of goods and services. Common
Various Conceptualizations dimensions of quality include experts’ ratings of product relia-
My colleague, Dong-Jin Lee, and I already identified and dis- bility, durability, and safety; as well as owner satisfaction rat-
cussed several conceptualizations and metrics of consumer ings. A high level of positive assessment for a specific product
well-being from both public and academic sectors (see Lee and represents a higher level of consumer well-being.
Sirgy 2012; Sirgy and Lee 2006). My attempt here is to review
and update this discussion. Metrics of consumer well-being Consumer Well-Being Metrics from the
from the public sector include contributions from the business Academic Sector
community, NGOs, and government agencies. In contrast, aca-
demic contributions involve metrics developed by academi- Contributions to consumer well-being metrics from the aca-
cians and published in academic journals. These metrics are demic sector include Shopping Satisfaction, Shopping
captured in Table 1. Well-Being, Possession Satisfaction, Acquisition/Possession
Satisfaction, Consumption Life Cycle, Community, Need
Satisfaction, Perceived Value in Life, and Bottom-up Spillover
(see Table 1).
Consumer Well-Being Metrics from the
With respect to the Shopping Satisfaction metric, H. Lee
Public Sector Meadow and I (Meadow and Sirgy 2008) developed the Over-
I will describe in this section several important metrics estab- all Consumer Satisfaction-Composite (OCSC). This index is
lished in the public sector. These include Cost of Living, Total based on consumers’ expressed satisfaction with local retail
Consumption Expenditure, Consumer Complaint, and Quality. institutions in purchasing food, housing, household operations,
With respect to the Cost of Living metric, we have the very household furnishings, clothing and accessories, personal care,
popular Consumer Price Index (CPI). The CPI measures medical care, recreation, transportation, and education. The
changes in the cost of living over time – specifically changes index was successfully correlated with measures of subjective
in prices of goods and services at the national level over time well-being.
(http//:www.bls.gov/cpi/home). The macromarketing assump- Building on the concept of shopping satisfaction and its
tion here is that increases in prices of goods and services (i.e., metric, my colleagues and I developed a new metric related
inflation) decrease consumer well-being in purchases of goods to Shopping Well-Being (Ekici et al. 2018; Lee et al. 2014;
and services – inflated prices make the purchase of goods and Sirgy, Lee, and Yu 2020). The metric underlying Shopping
services unaffordable (Samli 2003). Well-Being involves two dimensions: Positive beliefs regard-
The United Nations Development Programme (UNDP ing the degree to which shopping contributes to quality of life,
1998) has employed the Total Consumption Expenditure Index and negative beliefs related to the degree to which shopping
(TCEI). The TCEI is a composite of consumption of cars, paper activities result in overspending time, effort, and money. The
products, telephone connections, electricity, total energy, meat, metric was validated by demonstrating the two dimensions are
fish, and cereals. Thus, a TCEI score of a country refers to the significant predictors of life satisfaction (life satisfaction is a
summary of all expenses across various expenditure categories. positive function of the former dimension and negative in rela-
The goal is to identity and measure equities and inequities in tion to the latter dimension).
the consumption of goods and services that meet basic needs. Andrews and Withey (1976) measured Material Possession
The UNDP defines quality of life in terms of satisfaction of Satisfaction (referred to as the Consumer Index) in terms of
basic needs and equity in basic need satisfaction among differ- people’s feelings about transportation and access to work and
ent population segments. The public policy implication is that shopping, the medical services in their area, and the goods and
Sirgy 3
services they can get when they buy in their area — things like durables (cf. Durgee and Agopian 2018). The Consumption
food, appliances and clothes. Nakano, MacDonald, and Life Cycle metric has been adapted in other product-specific
Douthitt (1995) have used the same concept to develop a mea- contexts such as personal transportation and housing. Specifi-
sure of consumer well-being. The measure focuses on consu- cally, Sirgy and Lee (2003) found that consumers’ perceived
mers’ overall satisfaction with their material possessions and quality-of-life impact of current vehicles is largely determined
standard of living. The measure involves two survey items: by satisfaction with purchase, preparation for personal use,
“How do you feel about your standard of living — the things ownership, use, and maintenance (i.e., various experiences
you have like housing, car, furniture, recreation, and the like?” across the consumption life cycle with transportation vehicles)
and “How do you feel about the extent to which your physical (cf. Grzeskowiak and Sirgy 2007). Similarly, in relation to
needs are met?” Consumer well-being is computed as a com- housing, Grzeskowiak et al. (2006) developed a housing
posite of these two items. Additionally, my colleagues and I well-being metric guided by the notion that home resident’s
(Sirgy et al. 1998) developed a comparable measure based on cumulative positive and negative affect associated with house
possession satisfaction of economic goods. Data provided con- purchase, use, maintenance, ownership, and selling play an
struct validation by demonstrating that (1) satisfaction with important role in consumers’ overall well-being.
material possessions influences overall life satisfaction; (2) this Additionally, my colleagues and I (Sirgy et al. 2000, 2010a;
effect is moderated by materialism (i.e., emotional involve- Sirgy and Cornwell 2001) developed yet another metric based
ment with material possessions) – satisfaction with material on the notion that consumer well-being is a direct function of
possessions more strongly influences life satisfaction for mate- Community residents’ satisfaction with a variety of retail and
rialistic than for non-materialistic consumers; and (3) satisfac- service establishments in the local area – banking/savings
tion with material possessions is influenced by materialism – services, insurance services, taxi/private transportation, restau-
those who are materialistic are more likely to be dissatisfied rants/night clubs, department stores, drug stores/supermarkets,
with their possessions because they have high possession specialty stores, healthcare services, telephone services, elec-
expectations. Smits and Steendijk (2015) developed the Inter- tricity services, gas/oil services, real estate services, home
national Wealth Index (IWI) using similar reasoning. House- repair services, day care services, nursing homes/retirement
holds with an IWI value of 100 have a TV, fridge, phone, car, community-type services, private schools, spectator sports,
a house with piped drinking water, electricity, a flush toilet, TV stations, radio stations, local newspaper, automobile care
good quality floor material, and 3þ rooms. Households with a services, realtors, investment services, legal services, and
value of 0, on the other extreme, own none of the above items, entertainment.
have a floor of earth or dung, have none (or poor) quality The Need Satisfaction metric (Sirgy et al. 2010b) is based on
toilet, no electricity, only one room, and water from an unpro- need hierarchy theory. The basic premise of this metric is that
tected source. Also see other comparable measures such as consumer goods and services that serve to meet the full spec-
Arias and De Vos (1996), and Christoph (2010); also see Sirgy trum of human development needs should be rated highly in
(2018, 2019) for an extensive discussion of the concept of terms of consumer well-being, compared to goods and services
material well-being, its metrics, as well as antecedents and that satisfy only a small subset of needs. This metric was also
consequences. employed in the context of personal transportation (Sirgy, Lee,
Day (1978, 1987) and Leelakulthanit, Day, and Walters and Kressman 2006). Similarly, the measure is based on the
(1991) conceptualized the consumer life domain as having two notion that the welfare of consumers of personal transportation
dimensions: Acquisition and Possession of consumer goods vehicles is enhanced when the consumption of the vehicle
and services. The acquisition dimension refers to shopping meets the full spectrum of human developmental needs (i.e.,
experiences. Examples include consumer satisfaction with safety, economic, family, social, esteem, actualization, knowl-
assortment, quality, and price of goods available in local stores; edge, and aesthetics needs).
the attractiveness of the local stores; the courtesy and helpful- The Perceived Value in Life was used in a macromarketing
ness of personnel in the local stores; and after-purchase service setting to capture consumer well-being of an entire industry or
provided by the local stores (e.g., warranty policies, return sector, such as the Internet (Sirgy, Lee, and Bae 2006). Specif-
policies). In contrast, the possession dimension focuses on ically, the internet well-being is based on the theoretical notion
experiences related to material possessions (e.g., ownership that the perception of the overall impact of the Internet on users
of house/apartment, furniture, car/truck, clothing/accessories, of the Internet is determined by their perceptions of the impact
savings, etc.). of the Internet in their life domains such as consumer life, work
With respect to Consumption Life Cycle, my colleagues and life, leisure life, social life, education life, community life,
I (Lee et al. 2002; Sirgy et al. 2008) developed a consumer sensual life, among others. In turn, the perception of impact
well-being metric based on the notion that consumer satisfac- of the Internet in a life domain (e.g., consumer life, work life) is
tion with varied marketplace experiences plays an important determined by perceptions of benefits and costs of the Internet
role in life satisfaction (or quality of life). These experiences within that domain. Thus, the Internet well-being measure is a
involve shopping for goods and services in the local area, prod- composite of value perception of consumers across various life
uct ownership, actual use of goods and services, repair and domains. A high level of value perception represents a high
servicing of consumer durables, and disposal of consumer level of Internet well-being. A similar measure was developed
4 Journal of Macromarketing XX(X)
in relation to other products such as the use of mobile phones aspects of consumer well-being. If so, let us see if we can
(e.g., Sirgy et al. 2007). prove it. One can validate these popular metrics by developing
Metrics involving the Bottom-up Spillover concept is based a theoretical network of concepts related to the constructs
on the notion of a satisfaction hierarchy – and that positive and underlying the metrics and make every attempt possible to
negative affect spillover from concrete events to life domains empirically demonstrate the relationships among the concepts.
(e.g., work life, leisure life, family life, social life, love life) to Doing so provides a measure of construct validity of these
influence overall life satisfaction. Thus, specific events housed popular metrics. For example, changes in CPI at the country
in a life domain may affect life satisfaction through a “bottom- level can be correlated with as measures of quality-of-life at
up spillover” of affect (Sirgy 2012). Several consumer well- the societal level such as the United Nations’ Human Devel-
being measures in healthcare and travel and tourism were opment Index (HDI; http://hdr.undp.org/en/data). Increases in
developed guided by the Bottom-up Spillover concept. In rela- CPI should predict decreases in HDI, and vice versa. Such an
tion to healthcare, colleagues and I (Rahtz and Sirgy 2000; empirical test should provide greater credence in the use of the
Rahtz, Sirgy, and Lee 2004) developed a consumer well- CPI as a measure of consumer well-being.
being metric based on the assumption that community resi- Second, many of the consumer well-being metrics devel-
dents’ satisfaction with healthcare services (available within oped and published by academics can also be improved, and
their community) influences their sense of community well- new metrics can be developed. Let us focus on the consumer
being and overall life satisfaction. In addition, in hospital con- well-being metric based on based on the Consumption Life
text, colleagues and I (Sirgy, Hansen, and Littlefield 1994) Cycle concept. This metric is essentially a composite of con-
were able to demonstrate bottom-up spillover from hospital sumer satisfaction of local marketplace activities – satisfaction
satisfaction to community healthcare satisfaction, satisfaction with shopping in the local area, ownership of material posses-
with personal health, and overall life satisfaction. In relation to sions mostly bought in the local area, consumption of goods
travel and tourism services, again, colleagues and I (Neal, and services bought in the local area, servicing and repairs of
Sirgy, and Uysal 1999, 2004; Neal, Uysal, and Sirgy 2007) consumer durables found in the local area, and the disposal of
developed a metric of consumer well-being based on Bottom- durable goods in the local area. Research has demonstrated that
Up Spillover effects. Specifically, overall life satisfaction is this metric has construct validity through correlations with
theorized to derive from two sources of satisfaction, namely measures of various dimensions of subjective well-being
satisfaction with non-leisure life domains and satisfaction with (e.g., Grzeskowiak et al. 2006; Lee et al. 2002; Sirgy and Lee
leisure life. Satisfaction with leisure life is derived from satis- 2003; Sirgy et al. 2008). This metric can be improved by inject-
faction with leisure experiences that take place at home and ing a consumer involvement dimension into the calculus. That
satisfaction with travel/tourism experiences. Satisfaction with is, the index can be made more predictive of subjective well-
travel/tourism experiences results from satisfaction with trip being by considering the moderating effects of consumer invol-
reflections of the traveler (e.g., what the traveler remembers vement (Mittal 1995) in these marketplace activities.
regarding perceived freedom from control, perceived freedom Third, another way to improve the consumer well-being
from work, involvement, arousal, mastery, and spontaneity metrics developed by academics is to establish the construct
experienced during the trip) and satisfaction with travel/tour- validity of the metrics using new and emerging concepts of
ism services. Satisfaction with travel/tourism services is further well-being such as eudaimonia and social well-being (see an
derived from satisfaction with the service aspects of travel/ in-depth discussion of these concepts in Sirgy 2012, 2019, and
tourism phases—pre-trip services, en-route services, destina- Joshanloo, Sirgy, and Park 2018). The literature of subjective
tion services, and return-trip services. well-being has blossomed considerably over the last 50 years.
Quality-of-life scholars have accepted the concept of subjective
well-being as a broad category of phenomena that involves
Room for Improvement positive emotions (preponderance of positive over negative
Can the existing metrics of consumer well-being be affect), domain satisfaction (satisfaction in various life domains
improved? The answer is resoundingly yes. Here are some such as family life, social life, work life, etc.), and life satisfac-
suggestions. First, let us focus on the consumer well-being tion (a global judgment of satisfaction with life overall) (Sirgy
metrics available in the public sector (metrics provided and 2012). During the last 20 years or so, new concepts of well-
maintained by the business community, NGOs, and govern- being have emerged, concepts such as eudaimonia and social
ment agencies) such as the Consumer Price Index (CPI) main- well-being (Sirgy and Uysal 2016). The eudaimonic program of
tained by the U.S. Bureau of Labor Statistics, the Total research focuses on “functioning well in life.” For example,
Consumption Expenditure Index as maintained by the United eudaimonia (or psychological well-being) reflects the quality
Nations Development Programme, the Consumer Complaint with which individuals are functioning in their lives (not neces-
data base as maintained by the Better Business Bureau in the sarily how positive they feel about their lives). The construct
U.S., and Quality ratings as maintained by the Consumer involves several dimensions such as autonomy, positive rela-
Union and published in the Consumer Reports periodical. tions with others, environmental mastery, personal growth,
We take it for granted that these metrics are important because and purpose in life (Ryff and Singer 2003). Furthermore,
they purport to capture what we may intuitively feel important social well-being is now a well-established construct in
Sirgy 5
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Macromarketing: An Initial Step toward a Free Online Macromar- Need-based Measure of Consumer Well-being (CWB) in Relation
keting Course?” Journal of Macromarketing, 28 (4), 426-28. to Personal Transportation: Nomological Validation,” Social Indi-
Shapiro, Stanley J. (2008b), “Marketing, Society, and Controversy: cators Research, 79 (2), 337-67.
An Online Course from a Macromarketing Perspective,” Journal Sirgy, M. Joseph, Dong-Jin Lee, Kunal Kamra, and John Tidwell
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8 Journal of Macromarketing XX(X)
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Extension and Further Validation of a Community-based cators Research, 96 (2), 295-311.
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28 (3), 243-57. Index (IWI),” Social Indicators Research, 122 (1), 65-85.
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Michael Bosnjak, Jinfeng Jiao, Ahmet Ekici, Eda Gurel-Atay, and faction: A Meta-Analysis of the Empirical Evidence,” Journal of
Stephan Grzeskowiak (2020). “The Dual Model of Materialism: Suc- the Academy of Marketing Science, 29 (1), 16-35.
cess versus Happiness Materialism on Present and Future Life Satis- United Nations Development Programme (1998). Human Develop-
faction.” Applied Research in Quality of Life [published online]. ment Report 1998. New York: Oxford University Press.
Sirgy, M. Joseph, P. Stefan Kruger, Dong-Jin Lee, and Grace B. Yu Van den Bergh, Jeroen C. J. M (2009), “The GDP Paradox.” Journal
(2010b), “How Does a Travel Trip Affect Tourists’ Life Satisfac- of Economic Psychology, 30 (2), 117-35.
tion? Journal of Travel Research, 50 (3), 261-75. Webster Jr, Frederick E. (1988), “The Rediscovery of the Marketing
Sirgy, M. Joseph., Don Rahtz, and Dong-Jin Lee (2004), “Further Concept,” Business Horizons, 31 (3), 29-39.
Validation and Extension of the Quality of Life Community Wilkie, William L. (2005), “Needed: A Larger Sense of Marketing
Healthcare Model and Measures,” Social Indicators Research, 69 and Scholarship,” Journal of Marketing 69 (4), 8-10.
(2), 167-98. Wilkie, William L. and Elizabeth S. Moore (2006), “Macromarketing
Sirgy, M. Joseph and Dong-Jin Lee (2003), “Developing a Measure of as a Pillar of Marketing Thought,” Journal of Macromarketing, 26
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An Ethical Philosophy for Consumer Goods Firms,” Journal of
Author Biography
Business Ethics, 77 (4), 377-403.
Sirgy, M. Joseph, Dong-Jin Lee, Rustan Kosenko, H. Lee Meadow, M. Joseph Sirgy is the Virginia Tech Real Estate Professor of
Don Rahtz, Muris Cicic, G. X. Jin, D. Yarsuvat, David L. Blenk- Marketing at Department of Marketing, Virginia Polytechnic Institute
horn, and Newell Wright (1998), “Does Television Viewership & State University, Blacksburg, VA 24060-0236; and Extraordinary
Influence and Propagate Dissatisfaction with Standard of Living Professor, WorkWell Research Unit; Faculty of Economic and
and Overall Life?” Journal of Advertising, 27(1), 125-42. Management Sciences; North West University, Potchefstroom
Sirgy, M. Joseph, Robin Widgery, Dong-Jin Lee, and Grace B. Yu Campus, South Africa. Phone: (540) 231-5110; e-mail: sirgy@vt.
(2010a), “Developing a Measure of Community Well-being Based edu; Fax: (540) 231-3076.