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Decision Making and Coping of Functionally Illiterate Consumers and Some Implications for
Marketing Management
Author(s): Madhubalan Viswanathan, Jos Antonio Rosa and James Edwin Harris
Source: Journal of Marketing, Vol. 69, No. 1 (Jan., 2005), pp. 15-31
Published by: American Marketing Association
Stable URL: http://www.jstor.org/stable/30162030
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Madhubalan JoseAntonio
Viswanathan, Rosa,& JamesEdwinHarris
DecisionMakingandCopingof
Consumers
Illiterate
Functionally
andSomeImplicationsforMarketing
Astudy
Management
ofthedecision andcopingoffunctionally illiterate
consumers revealscognitive deci-
predilections,
making
andtrade-offs,
sionheuristics andcopingbehaviors thatdistinguishthemfrom literate
consumers. English-as-a-
second-language andpoor,literateconsumers are usedas comparison groups.Thestrong predilectionforcon-
cretereasoning and overrelianceon pictographic information offunctionally
illiterate
consumers suggestthat
companies should reconsiderhow theyhighlightthe added benefits
of newproducts orthe aspects
differentiating
ofexisting
product acrosschannels
offerings suchas advertising, in-store
displays,andpositioning.Concreterea-
soningalso has strong fortheexecution
implications andpresentation ofpricepromotions through couponsand
in-store
discounts,becausemanyconsumers are unableto processtheinformation andthusavoiddiscounted
Finally,
products. theelaboratecoping mechanisms identifiedand the that
loyalty functionally illiterate
consumers
toward
display companies thatare to
sensitive their and
literacy numeracy deficienciesreveala forloy-
potential
altyprogramsaimed at this
populationthatdo notinvolve pricediscounts.
be functionallyliterate,people musthave thelan- pingcontextsthanare CentralAmericanvillagerson Fifth

o Avenue.However,in economiesin whichthetypicalcon-
guage and numeracy competencies requiredto func-
tion adequatelyas adults in day-to-daylife (e.g., sumerexperienceinvolveschoosingamongdifferentially
Kirschand Guthrie1977). Because of significant differ- pricedofferings at self-service displays,the literacyand
encesin whatadultlifedemandsacrosseconomiesandcul- numeracycompetenciesrequiredare relativelyclear-cut.
tures,researchershave arguedfora plurality of literacies,Theyincludetheabilityto readlabels forinformation that
and theyemphasizethattheskillsneededto graspwritten differentiates to
productofferings, navigatecomplexshop-
and verbalmeaningsuccessfully are dependent on context ping environments by using signage,to calculateor esti-
(Scribnerand Cole 1981). For example, languageand
the mateunitpricesas a way to ascertainvalue,and to keep a
numeracy skillsrequiredof consumers in CentralAmerican running totalto avoidbeingshorton fundsat thecheckout
ruralvillages are differentfromthose requiredof con- counter.The functional literacydemandsin mostmodem
sumersin NewYorkCity.Moreover, itis possiblethatNew economiesare substantial, and the absenceof such skills
Yorkconsumersare less functionally literatein ruralshop- has significant implications forconsumersand marketers.
How do functionally illiterate
consumers navigateshopping
environments, choose amongtheproductsavailable,assess
Madhubalan isAssociate
Viswanathan Professor Administra-value, and cope withthe outcomes?1Should marketing
ofBusiness
tion,
CollegeofBusiness, ofIllinois
University atUrbana-Champaign(e-
mail: AntonioRosaisAssistant
Professorof managersbe concernedwith these consumers?If they
mviswana@uiuc.edu).
Jos6
Weatherhead
Marketing, SchoolofManagement, CaseWesternReserve shouldbe, whatare theimplications of havingcustomers
James EdwinHarris
isAssistant whose literacyand numeracy skillsdo notmatchwhatcur-
(e-mail:
University jar23@po.cwru.edu).
ofBusiness
Professor SaintNorbert
Administration, College(e-mail: rent marketing practices take for granted?
Theauthors
james.harris@snc.edu). thankEllen Abbie
Garbarino, Griffin, The questionwhether marketers shouldbe concernedis
Curtis CeleOtnes,
Haugtvedt, Bill
Quails,Mark John
Ritson, and
Sherry, addressed by some revealing statistics.In 1992, the
atseminars
participants attheUniversity
ofIllinois,
NanyangTechnologi-NationalAdultLiteracySurveyrevealedthatbetween21
calUniversity
andNational inSingapore,
University andOhio StateUni- and 23% of U.S. consumerslack
for
their comments. thankJohn manyof therudimentary
versity helpful They especially Muirhead, and skills to navigatethetypi-
Debbie Deborah
McDermott, Schlomann,JoAnne DianeJoy,
Eizinger, language numeracy required
Martha Carol
Bailey-Gaydos, Nina Ellen
Belber, Heckman, McDowell, and cal retailenvironment. Moreover, between 46 and 51% of
Greg for
Vankoevering their
valuablesupportofthedatacollection
and U.S. consumerslack the skillsrequiredto masterspecific
Reggie Kevin
Gaither, Sanford,andRoland Gaufor with
assistance the aspectsof shopping,such as creditapplicationsand sales
datacollection.
This
research
wassupported tothefirst
bygrants author
fromtheNational Foundation
Science andfrom theCampus Research
BoardandtheCollege
ofBusiness, ofIllinois.
University This material
is 1Weusethemoreappropriateterm"low-literate"
whenwedis-
basedonwork cussthe broad of
spectrum conditions.
literacy However,whenwe
byNational
supported Science
FoundationGrant
No.
discussfunctional weusetheterm illiterate"
0214615. literacy, "functionally
rather
than"functionally forimproved
low-literate" readability.
Journal
ofMarketing
Vol.69(January 15-31
2005), Illiterate
Functionally /15
Consumers
agreements(Kirschet al. 1993). Estimatesof functional We beginwitha discussionof our methods.Next,we
are equallysizable forotherindustrialized
illiteracy coun- discussour findings, variousaspectsof func-
highlighting
triesand even higherfordevelopingcountries(UNESCO tionally illiterateconsumers,and compare them with
2000). Whereaspovertyand low educationallevels are English-as-a-second language(ESL) andpoor,literatecon-
associatedwithfunctional illiteracy, mostfunctionally illit- sumers.We concludewiththeoretical andpracticalimplica-
erateconsumershave discretionary incomeand together tionsandlimitations ofourresearch.
represent a significant market.In theUnitedStates,most
illiterateconsumers areemployedand,on aver-
functionally
age, have 40% as much purchasing poweras literatecon-
ResearchMethodology
sumers(e.g.,Kirsch,Jungeblut, andCampbell1992).Taken Researchintofunctionally illiterateconsumersposes two
withgovernment studies(Bureauof LaborStatistics 2003), challenges.First,illiteracy poses significant hurdlesto the
thissuggeststhatfunctionally illiterate U.S. consumers may use of standardinstruments, suchas experiments and sur-
controlas much as $380 billionin spending.Moreover, veys(Wallendorf 2001). Even ifrespondents receiveassis-
giventhehighincidenceoffunctional illiteracy in emerging tance,it is difficultto ascertainthemeasurement errorthat
economies, in which standards of living and consumer is likelyto entera standard instrument studyoffunctionally
spending increasing, global purchasingpower of
are the illiterate
consumers becauseof therangeof abilitiesfound
functionallyilliterateconsumers is significant and likelyto in the low-literatepopulation(Kirsch, Jungeblut,and
increase. Campbell 1992). Second, functionalilliteracycan be a
Research on functionalilliteracyspans basic and sourceof emotionalstressand a topicthatmanyrespon-
applieddisciplinesandcoversa widerangeof contexts and dentswillnotdiscussopenly.Becauseofthelimitations, we
perspectives. It has been argued that literacy influences adoptedinterviews and observation forourdatacollection.
societiesbecauseliteratethought is abstract comparedwith Our methodsare bestcharacterized as partway alongthe
nonliteratethought, and its absence influences thelevel at "continuum rangingfrompositivismto idealism"(Desh-
which societiesrespondto theirsurroundings (Kintgen, pand61983,p. 102) and can be furthered characterizedas
Kroll,andRose 1988). For example,thewidespreaduse of hermeneutic (Spiggle 1994), in thatthe breadthof data-
mnemonicand word-syllable communication systemshas gathering methods, thecategories usedto code thedata,and
been creditedwith new modes of logical thinkingand theabstraction and comparison of dataelementsdeveloped
context-independent abstraction(Goody and Watt 1968; iteratively. Our purposivesampling(Lincoln and Guba
Greenfield1972). In contrast, the oral communication on 1985) was also iterative because we addedESL and poor,
whichlow-literate consumers relyis predominantly pictor- literateconsumers to oursampleas we learnedmoreabout
ial, dependenton context,and detrimental to abstraction functionally illiterateconsumers.
(Havelock1963; Luria 1976). Despitewhatis knownabout However, ours is not an interpretive studyin theclassic
how functionalilliteracyinfluencesotherdomains of hermeneutic tradition (e.g., Thompson,Pollio,and Locan-
humanexperience,the understanding of its influenceon der 1994).We arenotattempting to articulate theculturally
consumersis limited.There has been relativelylittle informedmeaningsthatfunctionally illiterateconsumers
researchintomarketing to functionally illiterateconsumers, attachto productlabels,storesignage,priceinformation, or
despitethesegment'ssize and purchasing power(Wallen- Our
shoppingexperiences. objective is to betterunderstand
dorf2001). Therefore,the attainingof a more detailed the processesby whichfunctionally illiterateconsumers
understanding of how functionallyilliterateconsumers assimilateinformation and make decisionsand to distin-
thinkand behavecan helpmarketing researchand practice guishthemfromothertypesof consumers. Even whenwe
bettermeettheneedsanddemandsofall consumers. exploretheircoping mechanismsand theirantecedents
A studyof functionally illiterateconsumerscan take (e.g., anxiety,negativeemotion), which by necessity
manydirections, but we focus on howfunctionally illiterate involvesmeaningnuances,we triedto remainas close as
consumersnavigateshoppingenvironments, assess value, possibleto thelabelstheinformants used.Ourresearchis a
makedecisions,and cope withtheoutcomesof theirdeci- "discovery-oriented approach" (Bendapudi and Leone
sions.We findthatfunctionally illiterate consumers exhibit 2002,p. 83), in whichmethodsareadaptedto theproblems
cognitivepredilections, decision heuristics and trade-offs, beingexploredandto theuniquecharacteristics ofthepop-
and copingbehaviors.We also findthatfunctionally illiter- ulationunderstudy.Data collectionand analysisoccurred
ate consumersstruggleconsiderably withelementsof the in threephases, whichwe depictin Figure 1. We first
shoppingenvironment (e.g., productlabels, storesigns, describetheinformants and thendifferent elementsof the
prices) that most consumers take for granted,and they methodology.
spend considerable energy and cognitiveresourcesassess-
Informants
ingvalueand makingdecisionsfrominformation thatliter-
ate consumers processtacitlyand automatically. Moreover, The informants centersin a
wereenrolledat adult-education
functionally illiterateconsumersincurdistinctemotional Midwestern market.Theyrangedin age from16 to older
and behavioralcostsfromshoppingwhiledisplaying inge- than 90 years and were dividedinto two groups(zero
nuityin copingwithsuchcosts.Finally,functionally illiter- through fourthgradelevel and fifth
through twelfthgrade
ate consumers respondpositively and in sophisticated ways level) on thebasis of standardized
testscoresin mathand
to marketers' efforts to accommodatetheirneeds,and in reading.We providea listof disguisedkeyinformants and
manycases thisleads to consumerloyalty. theircharacteristicsin Table 1. Details about informant
16/Journal
ofMarketing, 2005
January
55
and literate
5-12
and Month
ESL poor, and theory
Illiterate theory
0-4
Findings Interviews
betweenLiterate
betweenwithStudents existing existing
Students illiterate of
to to
Poor,
ESL illiterate Functionally Literate
Illiteratefor
with with InterviewsRefining relative
insights relative
Poor Interviews
differences differences Interviews
functionally X:
3 ESL & and
Noted and
Noted
functionally Refine
Assess S
S: analysis
analysi
Interviews
a) Interviews
Consumers
a) Functionally
One-on-
Additional a) b)
Boundaries
Consumers
Continued
Phase1. 2. 3. 4.
Authors critical
Author critical
* * Observations
Interviews
Themes;
Themes;
Shopping
andand
Process Teacher
0-4 5-12
and
from
andConcepts
Concepts
1 data 5-12 Interviews
Analysis Shopping
between X: Trip 0-4
students & 0-4
Students Emerging from S X:
and of & Emergent
Emergent
Second
0-4 5-12
FIGURE Relationships S forfor
students data and
of differences Shopping Additional
and andtheinsights Authors S:
0-4 0-4 DataData
5-12 Exploration Authors
2 Trip;
Gathering and
Highlight Probe
Develop
both *,- Author
Interviews
Observation
a) More
Concepts
a) b) Second
Data Phase1. 2. X:
Tutoring
Shopping
& Observation
Observation
S
0-4
Initial andand
and FirstAuthors
X: 4,
& Interview
Interview
S of of
mission Training
X:
differences & -
center S Analysis
Analysis
5-12MConsur
0-4 and 9Authors Z): Z):
and of
Teachers with X, X,
Illiterate
characteristics Authors (S, (S,
Classroom
with in confirmation/disconfirmation' --
categories
0
1 Interview Analysis
commonalities
Shopping
Observation Authors
Authors
Broad
Nomenclature
Common Initial
of
a) b) c)
Interviews Initial
Functionally
and Students
anda) Initial Month All All
Phase1. 2. 3.
Illiterate
Functionally /17
Consumers
TABLE 1
Informant
Name,Age, and Reading/Math
Level Information
Name Age Educational
andSkillLevelinReadingand Math
Ben (poor,literate) 21 Notapplicable,grade12 education
Chen (ESL) 27 graduate,grade2-6 reading(English)
University
Dee 16 Grade5-12
Esther 93 Grade0-4
Fiona 38 Grade0-4
Garvey 40 Grade0-4
Ivan 29 Grade0-4
Julie 16 Grade5-12
Kee 38 graduate,grade2-6 reading(English)
University
Kwon(ESL) 28 graduate,grade2-6 reading(English)
University
Larry 57 Grade0-4
Megan 58 Grade0-4
MeiKim(ESL) 26 graduate,grade2-6 reading(English)
University
Naomi 60 Grade5-12
Onuki(ESL) 26 graduate,grade2-6 reading(English)
University
Otto 38 Grade0-4
Ricardo 50 Grade0-4
Rita 22 Grade5-12
Sam 45 Grade0-4
Teresa 17 Grade5-12
Tina 24 Grade5-12
Henry(poor,literate) 21 Notapplicable,some collegeeducation
Valencio 21 Grade5-12
Victoria 25 Grade5-12
Xenia 46 Grade5-12
scoresareavailableon request.We addedESL andpoor,lit- through fourth gradereadinglevel students wereobserved

erateconsumersto thestudyto sharpenourunderstanding during classroom and
activities on two shoppingfieldtrips
of functionally illiterateconsumersand to distinguish the in whichshoppingtaskswere assigned.Studentschose to
influenceof functional illiteracyfrom relatedfactors such completeshoppingtaskseitherbythemselves or in groups.
as languageproficiency andpoverty. We recruitedESL stu- One-on-oneshoppingobservations of 15 students who
dentsfromclassesoffered atone oftheadult-education cen- hadbeentutored at thecenterwereconductedduringPhase
ters.TheirEnglishskillsrangedfromsecondto sixthgrade 3 of the study.These informants were asked to complete
level,and all had one or moreuniversity degrees.We inter- theirtypicalshoppingat a largechainstore,and theirper-
viewedfunctionally literate,poor adults,whose education sonalfundsweresupplemented with$10 giftcardsandtwo
rangedfromhighschoolto postgraduate studies,at a home- coupons.Consumerswere observedfroma distanceand
less shelter. occasionallyapproachedto ask clarification questions.In-
depthinterviews followedtheobservations. Data collection
Methodology extendedover55 monthsand includedinterviews with14
We used interviews and observations. At the startof the functionally illiterate at
consumers the zero through fourth
process,twooftheauthorsattended volunteer tutortraining 21
gradelevel; functionally illiterate consumers at the fifth
and servedas tutorsat an adult-education center,one for through twelfth gradelevel; 9 ESL students; and 10 poor,
150 hoursover18 monthsandtheotherfor15 hoursover2 literateconsumers.It also includedone-on-oneshopping
months. The tutoring serveda twofoldpurpose:(1) to iden- observations, with4 respondents of thezerothrough fourth
tifythebest approachforgathering data fromtherespon- grade level respondents and 11 of the fifththrough twelfth
dents and (2) to establish the trust requiredto breachthe gradelevel,and two shoppingfieldtripobservations, each
of
sensitivesubject illiteracy. All interviews wereunstruc- ofwhichinvolved10 respondents ofthezerothrough fourth
but
tured, recurring themes from earlyphases(e.g., Phases gradelevel. The observedrespondents were amongthose
1 and 2) were as
interwoven, appropriate, intolaterphases interviewed.
(e.g.,Phases 2 and 3). Interviewsranged from 20 minutesto Table 1 providesinformation aboutrespondents whoare
2.5 hours(averaging1 hour),and mostinterviews were specificallymentioned or quoted in the findings section. Of
tape-recorded and transcribed. Observation tookplace dur- the 14 zero through fourthgradelevel respondents, 9 are
ing classroom activities,one-on-one tutoring sessions,and listed,along with 9 of the 21 respondentsof the fifth
as
shoppingtripsdesigned learning exercises.Teachingat through twelfth gradelevel.Table 1 also lists4 ofthe9 ESL
adult-education centersis adaptedto studentneeds and respondents 2 of the 10 poor,literaterespondents.
and The
focuses on everyday-life skills. Notes and conversations proportion of listed respondents to totalrespondents, cat-
by
were recordedduringand immediately afterobservation egory, reflects the level of variance in how literatecon-
sessions and were transcribedand analyzed. The zero sumersmake decisionsand deal withtheiroutcomesfor
18/Journal
ofMarketing, 2005
January
withwhichwe studied
each group,notthelevelofintensity as a hierarchy,
withcognitive predilectionsas basicorfoun-
thegroups.The behaviorofzerothrough gradelevel
twelfth dationalfor decision heuristicsand trade-offs and ulti-
respondents fromthatof ESL and
differeddramatically matelyfor coping strategies.The hierarchicallayout is
consumers
poor,literate andthusreceivesmoreattention
in intendedto represent whatwe perceiveas differences in
ourdiscussion. conscious complexity, where cognitivepredilectionsare
primitive thoughtmechanismsor approachesthatrespon-
DataAnalysis dentsadoptby necessity, butof whichfeware aware;deci-
All authorsanalyzedinterview and observation data inde- sion heuristicsand emotionaltrade-offs are implemented
focusingattention on statements and behaviors deliberately,butare notalways based on sound reasoning;
pendently,
thatshedlighton howfunctionally ESL; andpoor,
illiterate; and copingstrategies consideredand orches-
are carefully
consumers
literate processinformation andevaluatealterna- trated.Althoughour discussionfollowsthe classificatory
tives,makedecisions,andcope withoutcomesandtheenvi- schemein Figure2, some of thequotesserveto illustrate
ronment. We analyzeddatafollowing establishedguidelines multiplephenomena(e.g., concretereasoningand decision
for qualitative inquiry (Glaser and Strauss 1967; heuristics).Theirconcurrent manifestation in thecommon
McCracken1988; Straussand Corbin1990),by whichwe language conversationof functionallyilliterateconsumers
identifiedcommonalitiesand differences among respon- servesas evidenceoftheinterrelatedness ofthehierarchical
dents.We resolvedall discrepanciesthroughdiscussion, levelswe imposeon thedataand illustrate in Figure2.
and severalinterrelated themesdevelopediteratively. The
themeswere further validatedby ten university students Predilections
Cognitive
whowerenotfamiliar withtheanalysisandwhowereeach Concretereasoning.Functionally illiterateconsumers
askedto read a subsetof transcripts forinsightsintohow a
display predilection for what we call "concretereason-
theinterviewed consumersprocessinformation and evalu- ing," or thebasingof decisionsand behaviors on theliteral
make decisions,and cope withsituations
ate alternatives, or concretemeaningof singlepieces of information (e.g.,
thatariseduringshopping.As a group,thestudent readers price,singleingredient content,size) and without regardto
identifiedthesame themesthatwe identified. In addition, theproductattributes thatare represented by the isolated
postinferentialcheckswere performed by teachersat the bitsof information.Concretereasoningwas manifest often
adult-education who
center, agreed that ourfindings charac- when consumersstruggledwithtrade-offs. For example,
terizethefunctionallyilliterate
students thattheyknow.Our whenconsidering priceand size, manyfunctionally illiter-
findings areelaboratedin thenextsectionwithquotesfrom ate consumersfocusedexclusively on onlyone dimension,
thedata. as illustrated
next:
Interviewer:Let'ssayyouhavea bigbagthatcosts$2.50
versus a smallbagthatcosts,say,$.90.Howdo youcon-
Findings sidersizes?Do youlookforthatatall?
In general,we foundthatfunctionallyilliterate
consumers
decisionrules and trade- Rita:Yeah,I lookandsee ifthey've thebigonesor do
displaycognitivepredilections, likeincereal.I buylike
theyhaveanysmaller size.Just
offs,and copingbehaviorsdistinctfromthoseof literate the... [pause].Theyhavethebigkindsofcereals,then
consumers. The findings
areillustrated
in Figure2, arrayed theyhave,like,thesmaller size.JustliketheRaisinBran;
I lookto see whichcoststhemostandwhichcoststhe
less,andso I justgetthesmalleronebecausethey costthe
FIGURE2 less.
ofFindings
ConceptualHierarchy Furthermore,concretereasoningwas evidenteven when
follow-upquestionsweremorepointed.
COPINGSTRATEGIES Elaborate Let's sayyoubuya packetofbreadthat's
Interviewer:
*Avoidance
andconfrontative halfthesize.You aregetting
less breadforthemoney.
*Problem
andemotion focused Howdoyoutrytomakesureit'scheapest intermsofhow
*Predecision
andpostdecision muchyouaregetting also?
*Strategies
implementedtooffset
outcomesfromotherstrategies Naomi:I justlookat thetagandsee what'scheapest.
I
don'tlookbytheirsizes.
DECISION EMOTIONAL The price fixationis oftencaused by concretereasoning
HEURISTICS TRADE-OFFS thatemergeevenwhenrespondents
predilections tryto be
*Single economic
*Trading value carefulshoppers.The most commonshoppingapproach
attribute andconvenience
for
decisions emotional
outcomes reportedbyrespondents beforetheyenteradulteducationis
to shop indiscriminatelyuntiltheirmoneyis gone. This
COGNITIVE
PREDILECTIONS
approachoftenresultsin runningshorton food and other
*Concrete necessitieslatein thepay period.To avoidsuchoutcomes,
reasoning
*Pictographic
thinking adult-educationcoursesreinforcethewisdomoflookingfor
the lowest-priced productsand budgetingweekly,which
Basic
takesforgrantedthatstudents are able to calculateor esti-
mate unitcosts and shop accordingly. However,because
Functionally
Illiterate /19
Consumers
manyrespondents findit difficult
tocalculateunitvalues, conceptsinvolved. As an aside,theyperceiveprice-sizeand
theyfocusexclusively on thepricedimension. attributetrade-offsas essential and taken-for-granted
Putting aside respondents whoreportbuyingthecheap- aspectsofshopping. Some weresurprised whenwe askedif
estor smallestproductbecauseof financialor storagecon- theyperformed trade-offs,as if theyfoundit difficult to
straints, thereemergesome distinctions amongconsumers envisionwhowouldnot.
withrespectto theirconcretereasoningfoci.Whereascon- Anothermanifestation of concretereasoningby func-
sumerssuch as Rita and Naomi focuson lowestpriceor tionallyilliterate
consumers is theirdifficultyin transferring
smallestsize, otherscomparethe physicalpackage sizes knowledgeacrossdomainsofexperience, in thiscase shop-
(e.g., height,width)of productsto deriveintuitive size-to- ping venues. Poor, literateand ESL consumersdid not
priceratioson whichtheybase theirdecision,buttheydo reportanxietyor confusion whenvisitingnew stores.Both
notuse thestandard volumeor unitinformation printed on groupswelcomedopportunities to shop in novel environ-
labels fortheirdecision(e.g., a tall 16 oz. bottlemaybe ments.In contrast, nearlyall functionally illiterate
respon-
perceivedas containing morethana short16 oz. bottle). dentsbecame anxiouswhentheyshoppedin new stores.
Whenasked,respondents who reliedon physicalpackage Theyhad difficulty transferring theshoppingskillsgained
characteristics fortheirdecisionreported thattheychecked fromadult-education classes,suchas comparing pricesand
sizes and receivedthebestdeals,buttheirclaimswerenot considering privatelabel products,whenshoppingin new
borneoutwhenunitpriceswerechecked. stores.Some even exhibiteddifficulty transferring basic
Not all concretereasoningfocusedon price.We also arithmetic skillsacrossdifferent domains.
foundrespondents whofixatedon singleattributes,suchas Interviewer:OK,now,before youwenttoadulteducation,
sugar or sodium content. wouldyoucheckpriceslikeyou'rechecking now?
Teresa: Anything I eatit.
sweet, Otto:No,I'd justgo in andgetstuff andthrow itin the
Interviewer:
Andhowdo youtellwhatthesugaris? basket andkeepgoing.
Teresa:I go down,andwe'vegot,like,...Someofthem Interviewer:Eventhough youcouldcountverywell?
say14 grams; theother
mightsay46 grams[ofsugar].I Otto:Yeah,I'd justthrow
it in thereandgo, noteven
gettheonethatgotthemost. worryaboutit.Butnow,yousee,yougottalook,be care-
Interviewer:
Is there ful,youknow.
anything youlookforonthepackage
whenyouarebuying canned food,other
thanprice? Ottois someonewhoneededto be taughtto applyarith-
Megan:Thesodium. It tellsyoulike30% andstuff like metic skills when shopping,despite havingprovedhis
that. numeracyskillsin othercontexts.Beforegoingto prison,
he soldillegaldrugsforseveralyears,a profession in which
Interviewer:
Whatwouldbe high?
counting errors
can result
in beatings or worse. In that occu-
Megan:About40% wouldbe high.I can'thavetoomuch pation, Otto handled transactionsworth hundreds of dollars
sodium. and made properchangeon streetcorners.However,he
Otherconsumersfocuson fatcontentand calories,usually couldnotprocesspricesandkeeprunning countsin grocery
without stores.In otherwords,his numeracyskills were context
regardto servingsizes or howmuchof a particular
is appropriate dependent. Anotherexampleof contextdependentnumer-
ingredient giventheproducttypebeingcon-
sidered.Respondentsdid not reporttradingoffbetween acy comes fromEsther,who enteredthe adult-education
arraysofproductattributes. centerin hereighties.AlthoughEstherhas difficulty with
In contrast,and withoutexception,
ESL consumersare simplearithmetic tasksin theabstract (e.g.,addingcolumns
able to make and articulatecomplex multiattribute and of numbers), she can keep a running totalof whatshe has
price-size trade-offs
in the same way thatliterate
con- putin hercartand compareit withwhatever she has avail-
sumersareexpectedand advisedto do. able to spend on the basis of magnituderelationships
betweencurrencytypesthatshe learnedas a youth.If
Interviewer:OK,howdoyoudecidewhethertobuylarge Esthercan hold or envisiondollar amountsin currency
orsmall?Do youlookatprice?Do youlookatsize?
(e.g.,billsand coins),she can perform simpleadditionand
MeiKim:Ifit'smorecheaper, thenI buythelargesize.... subtraction and maintaina relatively accuraterunning total
Forexample, smallsize,twotimesthelargesize,butprice ofherpurchases.She cannotmakethesamecalculationsin
is 1.5timesorsomething;I buyitlargesize. classroomexercises.
Poor, literateconsumersalso reportedmultiattribute
and Our findings are consistent withpreviousresearchthat
price-sizetrade-offs
withoutexception. showsthatlow-literate people can perform concreteopera-
tionson specificunitssuchas timeand engagein concrete
I lookatprice.IfI cangetitineconomy
Henry: sizefor
context-sensitivethinking based on practicalnecessity, but
ona per-unit
cheaper basis,I'll gettheeconomy
size.
they have difficultywithtrade-offs that require abstraction
We also foundsimilartrade-offs forproductattributessuch (Greenfield1972; Luria 1976). Amongfunctionally illiter-
as nutritional
or caloriccontenton a standard basis.
serving ate consumers, priceappearsto be a centraluniton which
Unlikefunctionallyilliterate
respondentswhodid notseem concreteoperationsare performed. The necessitiesof han-
to graspthenotionof attribute or price-sizetrade-offsor dlingmoney,transacting on thebasis of price,havingrela-
couldnotarticulatehow theyconsideredtheseissues,ESL tivelyavailablepriceinformation, andidentifying thelower
andpoor,literaterespondents displayeda cleargraspofthe price(i.e.,thelowernumber)relatively easilyarelikelyfac-
20/Journal
ofMarketing, 2005
January
torsthatinfluenceconcretereasoningusingprice.However, shoppinglists.He visualizescookingsituations (e.g., mak-
combiningattribute informationto generatevalue abstrac- ingstew)to determine howmuchofeach ingredient to buy,
tionsseems to be beyondthe commonpracticeof many andhe shopsby picturing himselfgoingthrough theactof
illiterate
functionally consumers. cookingdifferent dishes,pickingup products as hiscooking
A relatedpredilection revealed mentalepisodesunfold.
Pictographicthinking.
illiterateconsumersis for pictographic Anothermanifestation of pictographic thinking is the
by functionally
or theattachment of literaland concretemeaning way manyfunctionally illiterateconsumersrelateto cur-
thinking,
to pictorialelements,suchas color,font,packageillustra- rency.Functionally illiterate consumerssuchas Estherrec-
ognize coins and papercurrency because of the faces on
tions,andevenwords,insteadoftheabstract andmetaphor-
ical meaningoftenintended.Pictographic is not them.Manyconsumershave memorizedtherelativeorder
thinking
simply the use of pictorial information as representative of of value betweencurrency denominations (i.e., $5 is less
or attribute when brands or view- than$10) in the same less-thanor greater-than way that
products arrays choosing
This is somethingthatliteratecon- theyrecognize which product has the lowest pricein a par-
ing advertisements.
sumersalso do (Scott1994). Pictographic extends ticularcategory.As does Esther,manystudentsdisplay
thinking
a reliance on and includes the treat- rudimentary arithmetic skillswhenexercisesare framedin
beyond high pictures
mentof symbolicinformation brand names, dollar thecontextof money,buttheyhave difficulty applyingthe
(e.g.,
amounts)as images,or visualizingamountsto buyrather same skillsin the abstract.Luria (1976) reportsa similar
thanusingthemoresymbolicweightor volumeinforma- relianceon pictographic thinking and themanipulation of
tion.In the case of functionally illiterateconsumers,we images in the estimation of traveltimes between cities
foundinordinate and sometimesexclusiverelianceon the amonglow-literate peasants.
characteristics of encountered stimuliand an Somerespondents recognized pictographic thinking as a
pictographic
of strategy they use. Ricardo exemplifies consumers who rec-
accompanying face value interpretation whateverwas
being attended to. Use of physicalpackage sizes (e.g., ognizetheirpredilection forpictographic thinking.
height,width)to perform price-to-size valueassessments is Ricardo: Sometimes I stillhavetroublewithwords.I am
one exampleofthepictographic thinking we encountered. moresightreading. If I see something or a wordthatI
Manyfunctionally illiterateconsumers revealan almost don'tknow, andyoushowittomeandtellmewhatthat
completerelianceon context-based pictorialrepresenta- wordis,a lotoftimes, thenextdayorthedayafter, I am
tions.We also foundthatmanyfunctionally illiterate con- stillgoingto knowwhatthatwordis. I call it sight
sumerstreatproductcategorynomenclature on storesigns reading....
(e.g.,cannedsoups,paperproducts), brandnames,andeven Interviewer:Whenyou'rebuying haveyouever
groceries
encountered numbersas objectsin a scene or beenconfused inthestorebecauseofreading?
frequently
photographand dismissmuch of the symbolicmeaning Ricardo:No.
behindthebits of information. In turn,such mentalhan- Interviewer:
Howdoyoudoit?
dlingof information leads to confusionwhenthegraphical
characteristics IfI wanta canofSpam,I knowitwhenI seeit.
Ricardo:
(e.g.,fontstyle,color)of familiar wordsand
brandsare altered.A pointedexamplecomesfromGarvey, IfI gaveyoua bunch
Interviewer: ofcansonthewallhow
whospentalmost30 minutes lookingforice creamduringa wouldyouseeit?
shopping excursion at an unfamiliar store.Garveywas Ricardo:
Ithasthenameofitonit.
madenervousbythestorelayout,whichinterfered withhis
Interviewer:
Newwords?
to
ability apply the rudimentary reading skills he had
acquired in class. He wanted to on
rely pictographic think- Ricardo:ThenI might havetoasksomebody andI amnot
ing, but because the graphic characteristics of the store sig- ... [pause].Themajorityoffoodproducts,
I know. I know
nage (e.g., color,font,background) weredifferent, he was Kellogg'scerealanda lotofthatfoodis stillontheshelf
andI haula lotofit.It'snota problem
withme,yousee.
not able to navigatethe storeby relyingon pictographic
thinking either.His fallbackstrategy was to walk up and Ricardorecognizesthathe is notreading,butin effecthe
downthe aisles untilhe spottedthe logo forhis favorite recognizesbrandlogos in thesamewayhe mightrecognize
brandof ice cream,relyingon pictographic thinking at the peoplehe knowsin a photograph. This methodis whathe
packagelevel. calls "sightreading."Ricardo'sapproachto buyingSpamis
The most commonuse of pictographic thinking was thesameas Garvey'ssearching forice creamin a newstore.
memorizing brandsas combinations of lettersin specific Ricardois also notableinthathe is an interstatetruckdriver
fontsand colors withoutprocessingthebrandname as a who relieson pictorialrepresentations of streetnamesor
word.Otto,whocouldcountbutnotread,mademostofhis partsofnamesto navigatebetweencities.
purchasedecisionsthatway. He seemedto have a picto- Poor,literateconsumers did notexhibitrelianceon pic-
graphicimageofbrands,irrespective of his likingforthem tographicthinking, otherthantheimageryshortcuts com-
afterpreviouspurchases.He reliesalmostexclusivelyon mon to literateconsumers(Scott 1994). The ESL con-
thoseimageswhenmakingdecisions.It is not surprising sumersexhibitedsome pictographicthinking,such as
thathe mademistakeswhenalmostidenticalpackagingwas dependenceon brandlogos and pictorialmenus,butit did
usedfordifferent products (e.g.,Domino'sbrownsugarand notextendtotreating numbers as surface-levelpictorial
rep-
whitesugar).Along withseveralotherrespondents, Otto resentations or visualizingusage situations(e.g., cooking)
also reported usingpictographic thinking as a surrogate for to guidetheirshopping.The ESL consumersreported that
Functionally Consumers
Illiterate /21
theytreatedsome informationat thepictorially
based sur- Meganfocuseson sodium.We also finddecisionsbased on
facelevel,andtheyrecognizedwhytheyweredoingit. smallsize as a surrogate forlow price.Naomi appliesthe
Interviewer: same"buythesmallone" ruleto everything shebuys,from
Whydon'tyouaskthewaitress?
to
potatochips laundry This
detergent. is in contrasttoliter-
Onuki:Whenwejustgothere,wecan'treally
understand ateconsumers, whoconsidermultipleattributes
whathesays. (e.g.,price,
size, content,performance characteristics) and perform
Interviewer:
Thenwhatdidyoudo? mentaltrade-offs among such attributes. Moreover,we
Onuki:Theseniorschoolmate wouldcommunicate with foundthatOttoused to applya randomchoicemodelin his
himin English,
butwe couldn't understand whatthey're shoppingbutmorerecentlyswitchedto a habitualchoice
So actually
saying. tillthisdayI stilldon'tknowhowto modelthatprocessesbrandnamesas pictorialelements.
orderfood,sincethey[theseniors]areall gone.Wecan The data also provideclear distinctions betweenthe
onlyremember wheretheapproximate of the
position context-based singleattributedecisionsof functionally illit-
foodweorder wasonthemenu.
erateconsumers andconsumers who, on the surface,appear
The ESL consumers also reported thattheirrelianceon pic- to focuson singleattributesbutactuallybase theirdecisions
tographic thinking was a tactic to overcomelanguagediffi- on abstractionandinference processingthatwe did notfind
culties.Manyexpressedthattheyhad overcometheirneed amongfunctionally illiterate
consumers.
forpictographic thinking thelongertheylivedin theUnited Interviewer:
Imagineyouhave[a product package]in
Statesor thattheyexpectedto overcometheirneed over
yourhand.Whatkindof information do youlook at?
time. What'sthefirst
thing youpayattentionto?
The distinctionbetweenhow ESL respondentsand
Chen:Thefirst I'd payattention
to is whatit's selling,
functionally illiteraterespondents managenumberinforma- whether me or not,doesit looktastyon the
it attracts
tionis also important becauseithas implications forthedif-
picture.
ferencesin thevalue assessmentswe notedpreviously. All
ESL respondents in our studyhad a university education Interviewer:
So pictures
areimportant?
and a familiarity withnumbersand relations betweennum- Chen:Yeah.Ifthepictureattractsme,I'd lookatitsprice
bersas abstractconveyors of information. It is notsurpris- Forprice,I'd see if I can afford
secondly. it,is it too
ing thattheywere able to use numberinformation as If thepriceis OK, thencalories.If a small
expensive.
intendedand to makevalue assessments betweenproducts, hashighcalories,
thing thenI won'tbuyit.
even if theycould notread all theinformation offeredon Interviewer:
Howabouticecream?
the package. However,functionally illiterateconsumers
treatboth wordsand numbersas pictorialelements,and Chen:Ifit'sicecream,
thenI don'tlookatthecalories.
theyengage in surface-level processingof bothtypesof So it'sselective.
Interviewer:
information. Thus, theyare morelimitedthanESL con- Chen:IfI lookatthecalories,
thenI can'teatit.It'llbe
sumersin assessingvalue. toopainful[smiles].Forordinary
stuff,I'd lookat the
Pictographic thinking is a predilection consistent with calories.
findings thatilliteracy leadsto graphicthinking anchoredin
thehereand now(Luria 1976). Moreover, Chen uses an elimination-by-aspects
theinterrelation- rule (Russo and
shipbetweenconcretereasoningand pictographic Dosher 1983) whenpurchasing
thinking products, holdingdifferent
is noteworthy. Pictographicthinkingreflectsa primitivedecisioncriteriafordifferent productcategoriesandmoving
abilityto processinformation witha one-on-one betweenfocalattributes
correspon- anddecisionstandards withrelative
dence to thephysicalworldthatis availableto thesenses ease. Ice creamis heldto a priceconstraint butnota calo-
ratherthantothesymbolicworldthatdevelopswithliteracy riesconstraint,anditappearsthatfewproductsareallowed
(Havelock1963). This is themodeofprocessingthatfunc- such an exception.Chen relieson storedcategoryknowl-
tionallyilliterate consumersfavor.Whenfunctionally edge, possiblyderivedfromsome formof compensatory
illit-
erateconsumersare confronted processingduringpreviousshoppingtrips,to makeinfer-
withthepracticalnecessity
of completingtransactions ences and abstractions
thatinvolvepriceor choosing (in muchthesamewayliterate con-
products byusingsymbolicinformation, sumersapplynoncompensatory
theyconcretize the rules).However,in thecase
decisiontaskbyfocusingon singleattributes, of functionally
suchas price. illiterateconsumers,the rules are basic,
In general,functionally illiterateconsumersfunctionpri-
applied without adjustment acrossmostif not all product
marily in the visual and concreterealmratherthanin thecategories, and do notseem to involveabstraction or infer-
symbolic and abstract realm. ences. Althoughfunctionally illiterateconsumersapply
noncompensatory, single-attributedecisionrules,theyapply
Decision Making by Functionally Illiterate therulesat a moreconcretelevelthanthatused by literate
Consumers consumers.We believe that the applicationsof single
Some of thedata discussedin the
Decision heuristics. attributedecisionrulesby functionally illiterate
consumers
precedingsectionalso revealexamplesof single-attribute, arebetterclassifiedas a copingmechanism implemented as
habitual,and randomproductchoices amongfunctionally a resultof social context(Luce, Bettman, and Payne2001)
consumers.For example,Teresafocuseson sugar
illiterate thanas theuse of noncompensatory decisionrules(Russo
and consistentlychooses productshighin sugar,whereas andDosher1983).
22/Journal
ofMarketing, 2005
January
Megan's shoppingbehaviorfurther illustrates
theidea respondents will not shop alone and expendconsiderable
thatfunctionally illiterate
consumersapplysingle-attribute effortcoordinating withotherpartiesand planningshop-
decisionrules as coping mechanisms.In additionto the ping eventsin advance to avoid negativeemotionsand
"avoid sodium"rule,Megan appliesa "buythecheapest" stress.In effect,
theyavoidthepossiblenegativeemotions
rule to most purchases,where"cheapest"is assessed in and stressof shopping theirshoppingto fam-
by delegating
termsofpackageprice.We observedMeganponderforsev- ilymembersandothertrusted persons.
eral minutesthe choice betweena small $3.38 box of
Naomi:No,I don'tdo toomuchstuff, do all
mydaughter
HoneyNut Cheeriosand a "twoboxes for$6.00" deal on theshopping....
thelargersize of thesamecereal.She visuallymovedback
and forthbetweenthe choices severaltimesand, at one Interviewer:
Youusedtodo a lotofshopping?
point,handledthelargerbox forseveralsecondsto assess Naomi:No,notreally.
Youknow,whenI ama daughter,
its weight.Abruptly, however,she placed thesmallbox in mymomdida lotofshopping.
hershoppingcart,and whenwe askedwhyshe chose the
smallerbox, she answeredthat"it was cheaper."On the Delegatingshoppingto othersinvolvestradingaway
convenienceand timeforthe sake of avoidingemotional
basis of herindecisionand apparentstressoverthe deci-
costs,becauseit places functionallyilliterate
consumersat
sion, we concludedthatshe recognizedthatapplyinga
themercyof otherpeople's schedules.An extremecase of
compensatory rulewouldbe desirable,butherdifficulty in
such delegationthatwe foundis a consumerwho shops
performing the calculation pushedher to decide on surface
characteristics. onlywhenherbrother comesto visiteveryfewweeks.In
Meganis anchoredin theconcreteworldof
the senses (Luria 1976), and she applies single-attribute manyof the cases we found,the delegationof shopping
is a copingstrategy
responsibilities drivenbytheavoidance
decisionrulesat thesameconcretelevelofthinking, a level
of emotionalcosts.Moreover,it is notdifficult to imagine
thatis different
fromwhatwe foundthatESL andpoor,lit-
thatsomeoftheconsumers probablysuffer privationswhen
erateconsumers used.
theirsupplyofimportant productsis exhausted beforetheir
Emotionsand decision trade-offs. Megan's struggle nextplannedshoppingexcursion, whichaddswelfareto the
overtheCheeriospurchasehighlights anotherdistinguish- timeandconvenience thattheytradeaway.
ing characteristicof functionally illiterateconsumers:the Anotherstrategy to shoppingdelegationis to schedule
experience of adverse emotions associated withpurchase shoppingtrips around the availabilityof storepersonnel
decisions.Stressand anxietyoverpurchasedecisionsdoes who help theconsumers.Garveyplans his shoppingtrips
not affectonlyfunctionally illiterateconsumers.In some aroundtheworkscheduleof a cashierwho is awareof his
circumstances, such as choosinga familyhealthplan,for literacyand numeracydeficienciesand who is willingto
whichtrade-offs betweencoverageand affordability are work with Garveywhen items in the shoppingbasket
required,decisions can provokeanxiety any for consumer exceedthefundshe has on hand.
becauseofthepotential lossesthatthedifferent alternatives Interviewer:
Are you everafraidthatyou don'thave
entail(Luce, Bettman,and Payne2001). However,among
enoughmoney?
functionallyilliterateconsumers,we foundrecurring and
acuteanxietyevenin circumstances Yeah.I tryto addup inmyhead.It is justright
Garvey:
that,on thesurface, did
andsometimes
sometimes, itgoesover.
notseemto meritsuchemotionalreactions(e.g., shopping
at a new store).Because of theirdifficulty in performing Interviewer:
Howdoesthatmakeyoufeel?
calculationsor in reading store signs and labels, and Nottoogood.
Garvey:
because of thereactionsof storepersonneland othercon-
sumersto suchdifficulties, illiterateconsumers Interviewer:
Ifyougoover,whathappens?
functionally
experiencenegativeemotionsand oftenfindtheirself- Garvey:Nothin' Youjustsay,"I can'tbuythatand
really.
esteemundermined. They make significant trade-offs to havetotakeitoff."
I knowthewoman atCounty Market.
avoid negativeemotionsand to protecttheirself-esteem in
encounters. Garvey'scase is a good exampleof relationships between
marketplace
storepersonneland customers contributingto storeloyalty
Interviewer:
If something
is 30% offand thepriceis (e.g., Macintoshand Lockshin1997), whichin thiscase
$19.98,wouldyougouptoa person
andaskhowmuchit involvesa sensitiveissue.An additionalobservation about
reallyis?
Garveyis theunmistakable senseof comfort thathe drew
Dee: No. fromknowingthatnothing wouldhappenifhe wentoverat
Interviewer: Whynot? the checkoutcounter.Not all functionally illiteratecon-
Dee: I'd be embarrassed. sumerswere thatfortunate. We interviewed severalwho
attachedgreatsignificance to seeminglytrivialoccurrences,
Dee is not alone in refusingto ask forassistancein even celebratingwhen theyhad enough moneyat the
stores or in avoiding productswith fraction-off and checkoutcounteror despairingwhentheywere shortof
percentage-offlabelsto avoiddealingwithpriceuncertain- money.
ties.Julie,anotherrespondent,onlyconsidersproductsthat In general,we findthatfunctionally
illiterateconsumers
are 50% offbecause she can estimatethe cost as halfof investsubstantial effortin non-product-related aspectsof
what is posted. She avoids all other fraction-off or shoppingto reducenegativeemotions.Moreover,we find
percentage-off discounts.In addition,we findthatmany thatmanyundertake time,value,and welfaretrade-offs to
Illiterate
/23
reducestressand emotionalcosts.Similartrade-offs were statusquo (Luce, Bettman, andPayne2001). The strategies
madeby someESL informants, butnotby anyofthepoor, are also commonamongESL informants, thoughpredomi-
literateconsumerswe interviewed. For example,Onuki nantlyamongthosewhohadbeenin theUnitedStatesfora
appearsto giveup diningvariety by alwayschoosingfrom shorttime.As thetenureof ESL informants in theUnited
thesame sectionof themenuso as notto interact withthe Statesincreases,theirbrandand storeloyaltiesdecrease.
waiteror waitress.We also encountered severalESL con-
Interviewer:
Canyoudescribe tomewhatitis likewhen
sumerswho had recentlyarrivedin theUnitedStatesand whenyoujustarrived
yougo shopping here,and then
reliedon friendsto help themnavigateshoppingenviron- afteroneyear,
twoyears, andnow?
ments.At least fora shorttime,such consumersgave up
timeand convenience. OtherESL consumersshoppedpri- Kwon:Thefirst yearI juststicktomyhabitfrom Taiwan.
So mostofthecasesI justchoosewhatusedlikethestuff
marilyat a singlestorebecauseit was withinwalkingdis- inTaiwan. I waswilling totrysomething, butI shouldsay
tanceof theirhomeand theydid nothaveautos.The same thatthehabitis a little
different
from whatI amright now.
applied to poor,literateconsumerswho were limitedin I kindofunderstand thestuffI wanttobuyandkindoftry
theirchoice of shoppingvenuesbecause of transportation outtheweirdthings I have.So I'm a littlemoreAmeri-
problems.In general,however, ESL and poor,literatecon- canizednow.
sumersexhibited littlestressovershoppingand werecom- Other coping strategiesare to avoid fraction-off and
fortableshoppingin different storesas circumstancesdic-
percentage-offpricesandto base decisionson singleattrib-
tatedor as opportunitiesemerged. If friends
invitedthem to utes,bothof whichareproblem-focused in situa-
strategies
otherstores,ESL and poor,literateconsumerswententhu- tionsin whichinformation-processing capabilitiesare lim-
siastically.They did not reportfeelinganxious about ited.As we observedand listenedto informants, we also
changesin shoppingvenuedespitethechallengesthatdif- detectedan underlying need forthemto perceivethem-
ferentsignageand productlocationsrepresent, and they selves as in controland competentas consumers,which
shopped as needed without undue relianceon friends and comesacrossas an emotion-focused motivation.
family. The ESL and poor, literateconsumers we inter- We alreadymentioned shoppingwithfamilymembers
viewedexhibited independence and self-determination
sim- and relyingon othertrustedhelpers.A relatedstrategy is
ilarto whatwe expectfromliterateconsumers and around
carrying limitedamountsof cash so as not to overspend.
whichmanymarketing practicesarebased. Victoriaimplements all three.She primarily
relieson her
motherbutwill turnto othersif needed,and she carriesa
CopingStrategiesofFunctionally
Illiterate limitedamountofcash ($5) whenshoppingalone.
Consumers
Victoria:
Well,ifI'm,like,atthestorewithmymomand
Giventheanxietyand emotionalcoststhatmanyfunction- I goaround,
stuff, putallthestuff
inmycart,I waituntilI
ally illiterateconsumersassociatewithshopping,we were findher,andthenI go,"Mom,do I haveenough money
not surprisedto findvariousavoidanceand confrontative forthis"?andifshetellsmeno,thenI putbackmostof
coping strategies,some problem-focusedand others thestuff.
emotion-focused and some implemented beforeproduct Interviewer:
Whataboutwhenyouareshopping
onyour
choicedecisionsandothersimplemented afterthedecision. own?
Some of the copingstrategies are also used by ESL and
Victoria:
WhenI'm shopping
onmyown,I mostly
stayin
poor,literate consumers, butwe noteddifferences inthefre-
mybudget.
quencywithwhichthedifferent groupsuse differentstrate-
Interviewer:
OK.
gies. The observedcoping strategiesare summarizedin
Table 2. We classifiedthemas avoidanceand confrontative Victoria:
If I, like,had$5 on me,I wouldjustgetone
strategies(Luce, Bettman,and Payne 2001; Mick and Thatwouldbe something
thing. thatis,like,$3 orcheaper
Fournier1998) and problem-or emotion-focused (Luce, than$5.... Yeah,I don't,like,addverywellandstuff, so
Bettman,and Payne2001) forillustrative it'skindof confusing to me.I wouldneedsomeoneto
purposes,based
on theprimary reasonthatrespondents helpmewithit.Like,I wouldcallsomebody inthestore
gave forusingthat oranadult-whoever is withme-andI wouldaskthem.
strategy in
(typically response to a "Whydid youdo that?"
question). We also the
categorized strategies as beingimple- Anothercommonstrategy is to givecashiersall themoney
mentedprepurchase decisionor postpurchase decision.The theyare carrying, cashiersto givethemthecorrect
trusting
categorization scheme is not meantto be exhaustiveor change.
definitive. In addition,some of the copingstrategies can Interviewer:
Whatis themostyouhavespent?
overlapcategories,particularly with respect to emotional
and problem-solving motivations. We also findthatfunc- Larry:$200 or $300. I don'tcountit out.I give[the
checkoutclerk]themoneyI havein mypocket.I can't
tionallyilliterateconsumers oftenimplement copingstrate- read.
gies simultaneously, whichreinforces thepreviousobserva-
tion thatshoppingbehaviorscan involveadvanced and We foundthatmanyinformants used dissimulation
as
intricate planning.Ourdiscussionintermingles someavoid- partof theircopingstrategies.Some standin storeaisles
ance andconfrontative strategies. and pretendto studyproductlabels and comparepricesso
Some of thecommonlyused copingstrategies are evi- othershopperscannotguess theirliteracyand numeracy
dentin exampleswe have alreadypresented.Same-store deficiencies.Otto used to cover up his deficienciesby
and same-brandstrategiesare examplesof acceptingthe claimingto havevisionproblems.
24/Journal
ofMarketing, 2005
January
TABLE 2
Coping Strategies
CopingStrategies Classifications
Avoidance
Shopatthesamestore:avoidsstressofunfamiliar Problemfocused:
shopseffectively
environment Predecision:
habitual
choiceaboutstorehelpswith
choices
aboutproducts
Shopatsmaller
stores:avoidscognitive
demands
from Emotionfocused:
reducesstress
product
variety Predecision: advanceplanning
requires
decisions:
Single-attribute avoidsstressful
andcomplex Problem
focused:makesdecisions
manageable
product
comparisons Emotion
focused: imageofcompetence
preserves
Predecision: advanceplanning
requires
Avoidpercentage-
andfraction-off
discounted
items: Emotion
focused:reducesstress
avoidsdifficult
numerical
tasks Problem
focused:
lesschanceofmistakes
Predecision:
implements
habitually
Buyonlyknown
brands(loyalty):
avoidsrisks
from Problem
focused:facilitates
shopping
unknownbrands Predecision:
implementshabitually
Rationalize
outcomestoshift avoids
responsibility: Emotionfocused: selfesteem
protects
foroutcomes
responsibility Postdecision: after
implements outcome is clear
limited
Carry amountsofcash:avoidsrisks
of Problem
focused:controls
transactions
andbeingcheated
overspending Predecision: advanceplanning
requires
Buysmallamounts
moreoften:
avoidsriskoflargescale Problemfocused:
controls
transactions
cheating Predecision: advanceplanning
requires
Pretend avoidsrevealing
disability: deficiencies
and Problemfocused:
obtains
assistance
embarrassment Emotion
focused:preserves
publicimage
Predecision: advanceplanning
requires
Pretend
toevaluateproducts
andprices:avoidsrevealing Emotion
focused:preserves
publicimage
deficiencies
indirectly Predecision: advanceplanning
requires
Confrontative
Shopwith members
family andfriends:
enablesothers
to Problem
focused:helpsshopona budget
knowdeficiencies Predecision:
involves
advanceplanning
Establish with
relationships storepersonnel:
enables Emotion
focused:
avoidsembarrassment
andstress
otherstoknow deficiencies Predecision:
involves
advanceplanning
Seek helpinthestore:enablesothersto know Problemfocused:facilitates

finaldecision
deficiencies Predecision:
leads to a purchasedecision
Giveall moneyinpocketsto cashier:admitsdeficiencies, Problemfocused:avoidsnotbeingable to count

playson honestystandards Predecision:
implementshabitually
Buyone itemat a time:addressestheproblem

ofloss of Problemfocused:controls
pace oftransactions
and flowof
controlwhenturningovercash funds
Predecision:requiresadvanceplanning
Confront
storepersonneland demanddifferent
treatment: Emotionfocused:seeks to minimizeoreliminate
focuseson responsesand behaviorsofothers embarrassment
and to preserveor restorepublicimage
Postdecision:
implements inresponseto others
Planexpenditureswithassistancefromothers:enables Problemfocused:facilitates
a budget
othersto knowdeficiencies Predecision:
involvesadvanceplanning
Illiterate
Functionally /25
Consumers
Interviewer:
So, youmentioned
before
thatifyouneeded wantto.""Well,we can'ttakeit,sir,becauseit'sopened."
somebody'shelpandyouwould... [interrupted]. So I said,"Well,whenI tookittothehouseI hadtoopen
ittoputitinsomebags,anditwasspoiled." So, whatam
Otto:I wouldbe embarrassed,I wouldlie,tellthem
thatI
needthis,helpmewiththis, I supposed to do? Formenotto arguewithhimI said,
butnowI don'thavetolieno
more.IfI can'tread,I justcan'tread.Couldyouplease "Noproblem." I justgavehimthechickenandI justwent
tothehouse.I didn't provoke
anything,youknow. I'mnot
helpmeifyoudon'tmind? I'm morecomfortable....
goingtomakemyself lookbadforarguingwiththeman
Interviewer:Now,you mentioned thatsometimes you overthechicken.
wouldsay,"Well,I can'tread,canyouhelpout?"What
else wouldyou do to getby before,whenyou were Valencio was convincedthatbackroomclerksrelabeled
shopping? past-dated chickenandplaceditbackon storeshelves.That
Otto:I tellpeopleI gotproblems
withmyeyes."I can't otherpeople do notreportsimilarproblemsaftershopping
see.""I don'thavemyglasseswithme.""Couldyouhelp at thesame storesdoes not affecthis thinking. Sam used
meplease?" similarrationalizations
to accountforwhyhe sometimes
fallsshortofcash,attributingshortfalls
to beingcheatedby
Some copingstrategiesare implemented to offsetout- retailers.
comes fromotherstrategies.Sam does not knowhow to Anotherpostdecision is to remainpas-
copingstrategy
makechangeand is one of manyinformants who givesall sive and personableeven when negativeoutcomesarise
theirmoneyto cashiersand expectstherightchangeback. frombeingfunctionally illiterate.
Garveyputon a "no-big-
To avoidbeingcheatedandremainwithinbudget,Sam also deal" airwhenever hisgroceriesexceededhowmuchhe had
implementsa "one-item-at-a-time" strategyat fast-food available. Xenia respondsmore proactivelybut remains
restaurants. andcourteousthroughout thesituation.
friendly
Interviewer:
Howmuchmoney
doesitnormally
take? Interviewer:Haveyoubeenembarrassed goingoverand
Sam: $10 or $20. nothavingenough money? Hasthathappened?
Interviewer:
Howdoyouknowwhatyouwanttobuy? Xenia:Yeah.Like,I wenttoIGAtobuysomethings and
themoney thatI pickupoffthetableathomewasnotthe
Sam: I look at themenuand look to whatyou wantand moneyI supposedto pickup so whenI finish buying
yougotto figureoutwhatit's goingtocometo. everythingI justtakeoutthemoney andhanditherand
Interviewer:
Howdoyoudothat? shesays,"No,thisis $5 yougavetome,"andit[thetotal]
wasover$10,almost $20.ThenI'm like,"OhmyGod,I
Sam:Firstyoubuyonething
ata time,
so itcometoa dif- feelso bad."I tellher,I say,"OK,don'tputitback.I'll
ferent
price. justwalkhomeandgetthemoney andcomeback."I says,
"OK?" She says,"Yes."So I wenthomeand getthe
Sam also reportsbuyingin small quantitiesand visiting money.
storesmoreoftento reducetheriskofbeingcheated.
The copingstrategiesdiscussedthusfararepredecision Beingfriendly andcourteous was commonamongfunction-
illiterate
consumersspenda lot of ally illiterate who
consumers, also tendto be morepassive
strategies.
Functionally
timeplanningand developingways of gettingaroundthe and acceptingthanliterate consumers.
challengesand negativeemotionsinvolvedwithshopping. In contrast, ESL andpoor,literateconsumers displayed
Theyalso implement suchas morecombativetendenciesand less willingness to forgive
postdecisioncopingstrategies,
retrospectively
rationalizingoutcomes so as to shift retailers fornegativeexperiences and theemotionalor tan-
respon-
sibilityawayfromtheself.For example,Victoriahad a car gible costs incurred.Ben (a poor,literateconsumer)exem-
repossessedformissingpayments.She tookresponsibility the
plifies generalresponseof poor,literateand ESL con-
fornot stayingin school and acquiringliteracyskillsbut sumerswhentheyare stigmatized byretailers,
aggressively
shiftedresponsibility
for losing her car to unscrupulous confronting storeemployeeswho he believed were not
lenders.AnotherexamplecomesfromValencio. treating himproperly.
Valencio:I bought chicken plentyof times,andit was Ben:I wasatthegrocerystorenottoolongago.Wewere
spoiled.Becausetheworkers thatworkinthebackthat's Christmas
pricing becauseourmoney
gifts, wastight.
We
making thechicken,theybe taking theold chicken and are doingsomepricecomparison Thislady
shopping.
sellingit.Theydon'tsellthenewchicken. It'sjustcrazy. fromthefront... immediately
just looksfunnyat us. We
ButlikeI said,I bought
chicken before
anditwasspoiled. arewalking thestoreandshestarts
through tofollowus.
I tookittothestore,butI couldn't
getmymoney back. "Is therea problem?"...
"Do you thinkwe are shop-
Shegoes,"Youdo lookkindofsuspicious."
lifting?" We
Interviewer:
Thisonlyhappened
toyouonetime? fileda grievance
withthestoreand I haveaskedmy
Valencio:Ithappened
tomea coupleoftimes.
Notatthe nottoshopatthestoreuntilthegrievance
friends is taken
same store,butat different
store.You know,it was careof.
spoiled. In general,we foundESL andpoor,literateconsumerstobe
Interviewer:
Whywouldn't letyoutakeitback?
they morewillingto be confrontative and to demanddifferent
Valencio:I don'tknow.I don'tknowiftheywaspreju- treatment fromstorepersonnel,and ESL consumersonly
dicedorwhat.I don'tknow.I cameto themthecorrect holdbackbecauseofsocialnorms.In contrast, functionally
way.I said,"I bought somechicken.
Here'smyreceipt, illiterateconsumerswere consistently
morepassive;most
andthechicken is spoiled.Andyoucan smellit ifyou ofthefunctionallyilliterate acceptedthestatus
respondents
26/Journal
ofMarketing, 2005
January
quo ofbeingtreateddifferently
as a metalevelcopingstrat- product,price,promotion, distribution, and customerser-
egy(Luce, Bettman,and Payne2001). vice.Evenmorepoignantaresomeofthemanagerial impli-
cationsof havingsuch a largesegmentof thepopulation
unlikelyto processwordand numberinformation as man-
Contributions, and
Limitations, agers intend.We believethatthe incidenceof functional
Further
Research illiteracyhas strategic implications in areassuchas product
Our researchsheds lighton functionally illiteratecon- differentiation and new productintroduction, avoidanceof
sumers,an understudied productliability, management ofpricepromotions, andcus-
populationwithmeasurableand
tomerloyaltyprograms. Functionalilliteracy also has sig-
significantpurchasingpower. We identifycognitive
decisionheuristicsandtrade-offs,andcoping nificant tacticalimplications forretailers and productman-
predilections,
thatinfluence of theirbehaviors.The fac- agers. Because of space limitations, we discusssomeof the
strategies many
torsdistinguish illiterate
consumers bothfrom strategicimplications nextand include,withoutextensive
functionally
literateconsumersand fromconsumerswho, because of discussion, an illustrativelist of tacticalconsiderations in
or limitedlanguageskills,maybe consideredsimi- Table 3. We link the presentedimplications to cognitive
poverty
lar.Ourresearchprovidesvaluableinsightsand has impor- predilections, decisionheuristics andtrade-offs, andcoping
tantimplications formarketing researchandpractice. strategies.
Productdifferentiation and newproductintroduction. It
forMarketing
Implications Researchand is difficultto imaginea consumergoodsindustry in which
Management producers do notseeka competitive advantagethrough new
A fundamental theoreticalissue thatthisresearchraisesis products orimprovements to existing products andin which
whether existing models in marketing are adequatein cap- the effective communication of productofferings is not a
turing the decision of
making functionally illiteratecon- significant challenge.Billionsofdollarsarespenton adver-
sumers.The modelof the"cognitivemiser,"who seeks to tising,brandmanagement, point-of-purchase displays,and
economizeon cognitiveresources,forexample,has been packagingto communicate whatdefinesa productand the
prevalent in marketing and psychology. However,theview arrayof benefitssuchthatit deliversa good value evenat
thatarisesfromour researchis moreof a "cognitivesur- premium prices.However,formanyconsumers, mostofthe
vivor,"who,despitespendingconsiderable resources,can- efforts are wastedor maybe misunderstood and misrepre-
notreadilyengagein theabstractand analogicalthinking sentedas a resultof an overreliance on wordsand numbers
thatmakescognitive miserliness possible. as carriersof information to a populationthatprocesses
Ourfindings emphasizethatseveralextanttheoriesand themdifferently fromotherconsumers. Manyfunctionally
models of consumerbehavior(e.g., Luce, Bettman,and illiterateconsumersdo notprocesswordsand numbersby
Payne2001) shouldbe expandedto takeintoaccountfunc- incorporating theminto abstractedrepresentations of the
tionallyilliterateconsumers.Despitebeingemployedand products and their categories.They focus instead on a lim-
havingconsiderablespendingpower,functionally illiterate ited set of wordsthattheyprocessconcretely, and they
consumers processinformation andmakedecisionsin ways oftenbase theirdecisionson heuristics thatoveremphasize
thatdo notmatchcommonlyheld beliefsabouttheinflu- single attributes and deemphasize or even ignorehownew
ence of brandinformation, pricing,and productattributes productattributes anduniquecharacteristics delivervalueat
on consumer judgmentsand choices.Functionally illiterate a moreinclusivelevel.Forfunctionally illiterate consumers,
consumers also violateassumptions abouttheimportance of strategies thatadd featuresto existingbrands(e.g., bleach
value-producing ratherthannon-value-producing aspectsof alternativesin laundrydetergents, whiteningagents in
decisioncontexts.In manysituations, theybase decisions toothpaste, vitaminsin softdrinks)are unlikelyto resultin
almostexclusivelyon non-value-producing factors, suchas additionsof the new attributes to the brands'preexisting
familiarity with the shopping environment or the personali- qualityand performance images.A morelikelyoutcomeis
tiesof sales personnel, insteadof on productattributes and thattheseconsumers willperceivethenewproductas a new
price.It seems reasonable that the of a
incorporation deeper productcategory(e.g., Tide Bleach, ColgateWhitePaste,
understanding offunctionally illiterate
consumers intomar- PepsiVitamins)thatmayormaynotbe compatible withthe
ketingtheorieswill resultin theoriesthathave greater brands'cultivated image.In contrast, brandsmaybe associ-
explanatoryand predictivepower and in more effective atedwithattributes thatarenotcentralto theirvaluepropo-
marketing practice.Similararguments can be made in the sitions,whichcouldlead to brandconfusion insteadof the
realmof publicpolicy,in whichregulation thatpertainsto intendedenhancement of a brand's core characteristics.
productlabeling,pricing,and brandinghas been imple- Similarunintended outcomesare also possiblewhennew
mentedwithoutapparentconsiderationof the needs of brandsare introduced or whenbrandsare revitalizedwith
functionally illiterate
consumers. changesto thefontsor colorsused to represent them.Our
The broadimplication of our findings formarketers is researchsuggeststhatfunctionally illiterate consumersare
thatcarefulconsideration of andresearchintothefunction- morelikelyto ignorenew brands.Moreover,if thenew or
allyilliteratesegment withan aimtowardenhancing all ele- revitalizedbrandundermines or replacesthe preexisting
mentsof the marketing mix can be beneficial.Marketers brandas a pictorialelementin its typicalcontextand thus
can use thecognitivepredilections, decisionheuristics and generates confusion, theresultant anxietymaybe enoughto
trade-offs,andcopingstrategies thatwe identify to examine triggerbrandswitching. Many functionally illiteratecon-
anddesigntheirinteractions withconsumers in theareasof sumersarebrandloyalbecauseof pictographic recognition
Illiterate
/27
on
on train
Self- dignity.
while
to needs using based
and mouth.
Coping Esteem promotional
promotion
Strategies assist of
Others;
Maintenance;
Dissimulation
Dependence
Family-friendly
recognize
shopping
environments;
personnel
and Family-focused
preserving
consumer brand
consumers'
programs
similar
"stealth"
programs
word
not of and
Making
Choice; safe
Choice;
if
do aids thatin
deals.
depictions
them; adult- brands
of
Decision logo
Heuristics assisthandling
Single-Attribute value
Decision
Random
Habitual Pictorial
brand
explanations
producers
provide
pictorial
changes of (through
Consumer
education
programs)
education
highlight
and balanced-diet
teaching
food needs.
and
savings
incents fraction- savings
form; of
Counting form.
form;
and propositions
percentage-off
replace visual
visual
Producers Visual
Fractions
pictorial
dollar toand
discounting
displays inprice-size
displays.Value in
and
and that
and
Thinking use and on
to attribute
dollar
Situations other
carts depictions
Retailers displays;
Sunday
displays
Visualizes
3 Attributes unique
for Usage
Pictorial
cents
shelf(e.g.,
matched
dinner); Pictorial
ingredients
locations.
suggest ofinformation
packages.
Pictographic
TABLE to
brand
or over
Responses familiar store
Reading; implement
transitions
logos.
familiar
layout
Pictorial on
transitions
familiar
layout or
Recognition new
Sight
Maintain
storenew
ease logos
signage.
time; Retain
logos
smooth
to
Tactical
not
and aids do
dollar
rather does
content
Illustrative basket- depiction
that
as
shopping
management
withcentsfraction-off
Difficulties
Magnitude
Computing
total
Estimation volume
forms
Computation
price
for (e.g.,
carts
scanners);
and
discountsPictorial
ofinchange
discounts.
than packaging.
Reasoning
on
shelfshelf date.
on ratio
Concrete visual
size of depiction
depiction
Trade-Off;
price retail
shopping
Tasks
onas
Concretizing attribute
expiration
Value Actual
presented
clearly;
aids
such shelf. Pictorial
graphics;
price-size
depiction ofinformation;
pictorial
of
Retailers Producers
28/Journal
ofMarketing, 2005
January
coupledwithadequatebrandperformance. Whencompany sumers.At best, functionallyilliterateconsumersmay
actionscompromise pictographic recognition, functionally ignoresuch warningsbecause theycannotprocessthem.
illiterate
consumers maynotsearchtheshelffornewrendi- Moreover,givenfunctionally illiterateconsumers'tenden-
tionsof thesamebrandor forproductinformation thatsig- cies to fixateon singlepieces of information and process
nals thatthebrandhas been recastfortheirbenefit.They themat a concretelevel,it is notdifficult to imaginecir-
aremorelikelyto seekoutandpurchasea competing picto- cumstancesin which liabilityavoidance practicesmay
riallyrecognizable brand. resultin someconsumers usingtheproductin preciselythe
These are not insurmountableproblems,but they way that producers seek to avoid.For example,bottlesof
requirethatproducerstake into accountthatfunctionally dishwashing liquidmay contain claimssuchas "antistress"
illiterate
consumers do notprocesswordandnumberinfor- and "aromatherapy" in large,bold print,withdescriptors
mationin thesamewayas literate consumers do. Forexam- and warningssuch as "concentrated dish liquid" and "do
ple, new attributes, such as in
bleachingagents detergent or notuse withchlorinebleach"in smallprint.Furthermore,
whitening in
agents toothpaste, would benefit from pictorial suchbottlesoftenhave pictorialrepresentations of flowers
representations of thebenefits(e.g., before-and-after laun- and otheraromaticingredients on thelabel butno equally
drydepictions, a smile with dazzling white teeth),along visible and interpretable pictorialrepresentation of the
witha simple-to-process word(or words)thatrepresent the product's intended use. A functionally illiterateconsumer
benefit.Culturallysensitivemetaphors(e.g., pearls for couldmisinterpret a productlabel suchas theone we have
white)can also be used pictoriallyto take advantageof describedsuch thathe or she perceivesthe productas a
well-learned associationsthatmaybe partof an oraltradi- freshener thatcan be used in settingsthatincludedoing
tionandtranscend literacyandnumeracy skills.Needlessto laundry. combinedwithchlorinebleach,sucha product
If
say, the use of audiovisualmedia is important, because could producepotentially harmful fumes.The same could
information processedas conversations can be used to gen- be said forover-the-counter medications thatcontainsweet-
eratea richset of associationsto whichsimple-to-process eners(e.g., throatlozenges)and a printedwarning"thisis
wordscan be linked. notcandy"on thelabel.A functionally illiterateconsumer
An additionaltendencyof functionally illiteratecon- who focuses on the sweetenercontentand the word
sumersthatshouldbe managedin theintroduction ofprod- "candy"couldeasilyuse theproductinappropriately.
uctimprovements and newproductsis consumers'reliance Such scenarioscan be replicated in thethousands, ifnot
on assistancefromfamily,friends, and storepersonnelin millions,of householdsand businesssettingsaroundthe
makingpurchasedecisions.Without callingattention tocon- worldin whichfunctionally illiterateconsumerslive and
sumerdeficiencies, itmaybe possibletoremindfunctionally work.Ifproducers wereto arguethattheirnotknowingthat
literatehelperstorecommend newandimproved products to such a high percentageof the populationis low-literate
friends as a wayofbeinghelpfulto otherswhomaynotbe should exoneratethem,widespreadavailabilityof the
awareof theproduct'sbenefits. Assumingthatpeoplewho NationalAdultLiteracySurvey(Kirschet al. 1993) has
help functionally illiterateconsumersdo so because they weakenedthatargument. Marketing managersneed to be
care,it seemsplausiblethatemphasizing waystheycan be sensitiveto functionally illiterateconsumerpredilections
evenmorehelpfulwillbe consideredcompatiblewiththeir forconcretereasoningand pictographic thinking, and they
motivations andthuslikelyto generatepositiveresponses. shoulddevelopinstructions and warnings thatclearlycom-
it
Finally, is important formarketers tonotefunctionally municatetheproducts'intended uses and potential dangers
illiterateconsumers'highlevel of advanceplanningand, frommisuse.If functionally illiterateconsumerscan be
therefore, to seek a place on theirshoppinglistbeforethey countedon to makedecisionsbased on concretereasoning
arriveat thestore.Even in highlyfamiliarenvironments, it and pictographic thinking, it is good businessto reachcon-
is reasonableto expectthatfunctionally illiterateconsumers sumersthrough thoseinformation-processing mechanisms
are somewhatmore anxiousthanare literateconsumers, andto avoidproductliabilitycomplications bydoingso.
becausetheyfocustheirattention on recognizing preferred
Managingpricepromotions. In 2002,consumer promo-
productsand brandspictographically amidstthe tens of
tionsin the UnitedStatestotaledmorethan$233 billion
thousands of stockkeeping unitscarriedbythetypicalstore.
The cultivation of advance familiarity (Promo2004), muchof it devotedto couponsand other
throughtelevision
formsof pricediscountsdesignedto induceactionat the
and radio advertising,pictoriallyrich billboards and
pointof purchase.However,ourdatasuggestthatformany
posters,and even easy-to-comprehend directmail pieces
functionallyilliterateconsumers, suchpromotions are con-
can enhancethelikelihoodofpurchase.
fusingand mayevencause themto switchaway fromthe
Avoidingproductliabilityrisks.Consumermisuse of promotedbrands.Amongthe functionally illiteratecon-
products is an ongoingconcernamongproducers (at leastin sumerswe interviewed and observed,we foundrecurring
thelitigiousU.S. market),and emphasisis placed on both and significantdeficiencies in theabilityto calculateaccu-
explainingthe properuse of productsto consumersand ratepriceswhencouponsandpercentage-off orfraction-off
usingwarnings aboutthepotential
consequencesofproduct deals are used. In turn,thesedeficiencies engenderanxiety
misuse.However,ourresearchsuggeststhatmanyof com- andtrigger avoidancestrategies in someconsumers. Forthe
panies'liabilityavoidancepractices,suchas detailedwarn- mostpart,consumerpromotions are intendedto enhance
ings and instructions in multiplelanguageson package value to the consumerby reducingprice and have been
labels,will notbe effective
withfunctionally illiterate con- shownto resultin category expansionandenhancedmarket
Illiterate
/29
shareforpromotedbrands(Neslin2002). Theyhave also illiterate
consumers, therearemanywhogreatlyappreciate
beenlinkedto increasedsales forcompeting brands,a phe- shoppingenvironments thatrespondto theirneedsforpic-
nomenonthatis notalwayswell understood. Our research torialinformation, help protecttheirinterestsand self-
providesa possiblefactorthatcontributes to increasedcom- esteem,and seek to reducethestressof shopping.Conse-
petitorsales,giventhatin somecases consumer promotions quently, suchconsumers represent an untappedopportunity
scarefunctionally illiterate
consumers awayfrompromoted forat least some retailersto generateloyaltyfroma con-
brandsand to competing brands.Ourresearchalso empha- sumergroupwithdocumented spendingpowerand whose
sizes thatmanyconsumers havedifficulties in calculating or behaviorssuggestthattheycan be profitable.
evenaccurately estimating thevalue enhancement thatcon- The solutionsthatmarketers devise for functionally
sumerpromotions areintended to provide. illiterate
consumers may sometimes coincidewithsolutions
As withproductliabilityconcerns,carefulattention to forvariousothergroups,suchas noviceconsumers, time-
consumerpredilections forconcretereasoningand picto- constrained consumers,consumers in developingcountries,
graphicthinking can lead to modesofpresenting consumer and consumersshoppingin unfamiliar environments (e.g.,
promotions thatwill make them attractive instead of con- foreigncountries). There appears to be a strategic
overlap
fusing and to
repulsive functionally illiterate consumers. betweencateringto functionally illiterateconsumersand
Our data suggestthatfunctionally illiterate consumersare catering to othersignificant consumer segmentsin the
to
receptive price deals butlack the numeracy skillsto esti- globalmarketplace. However, the surface-levelsimilarities
mate value fromprice-discount calculations.However,if betweengroupsmayhidedeeperdifferences thatmarketers
price and discountsare represented pictorially(e.g., pie needto address,as ourcomparison groupsillustrated.
charts),itseemsreasonableto expectthatmorefunctionally
illiterate
consumers willgraspdiscountmagnitudes quickly Further
Researchand Limitations
and accurately. Moreover,giventherelatively low cost of Our findings also pointto some specificdirections forfur-
printing customizedlabels,theadoptionof graphicalrepre- therresearch. Forexample,pictographic has
thinking impli-
sentationsof pricepromotioninformation across markets cationsforvisualinformation If attribute infor-
processing.
and productcategoriesis notan oneroustask.Our datado mationthatis presented is
pictorially processeddifferently,
notenableus to estimatethedollarvalueofincreasedeffec- it is likelyto have unexplored effectson decisionmaking
tivenessfromsuchtactics,butifa largegroupofconsumers and memory. In addition, theconditions underwhichfunc-
respondto consumer promotions adversely becauseofliter- use
tionally illiterateconsumers different typesof decision
acy and numeracydeficiencies, the returnsfromaligning heuristics andcopingstrategies needto be identified. Simi-
the presentation of consumerpromotions to the skillsof lararguments can be madeforconcretereasoning.In every
theseconsumersshouldbe substantial. area depictedin Figure2, functionally illiterate consumers
Consumerloyalty programs.Researchintotheefficacy responddifferently thando literateconsumers,and their
of consumerloyaltyprogramshas shownthatbecause of thinking andbehaviorneedsto be betterunderstood.
theexpenseofcontinually satisfyingcustomers andconcur- Cross-cultural researchon functionally illiteratecon-
rentlymeetingtheirexpectationsfor preferential prices, sumerswouldalso be beneficial,giventhelargesegments
such programsare oftennotprofitable (e.g., Reinartzand of immigrant and illegal-alienfunctionally illiteratecon-
Kumar2000, 2002). Companiesspend large amountsof sumersin theCanadian,European,and U.S. marketsand
moneyto keep trackof customerpurchases,to stockthe the even greaternumbersof functionally illiteratecon-
productstheyfavor,and to designconsumerpromotions to sumersin theglobalmarketplace. Such researchshouldbe
keep regularconsumerssatisfied;it is farfromclear that conductedin culturesthatvaryin overalllevelsof literacy
such investments generatepositive returns. This may be and in theirmarketing infrastructure, giventhatfunctional
caused by consumerexpectationsthatloyaltyshouldbe illiteracyis context determined. Other notable cross-cultural
rewarded withlowerprices,giventhatmostotheraspectsof researchquestionsinclude:How do bothlow-literate buyers
shoppingenvironments are indistinguishable fromthose and sellers,notuncommonin developingcontexts, negoti-
offered elsewhere.However,whenit comesto functionally ate themarketing environment? Aretheemotionalandcop-
illiterateconsumers, our research suggests that differentia- ingphenomena observed in industrialized economiesrepli-
tion is possible throughactions such as store signage cated;if not,whattakestheirplace? Finally,thecombined
designed to have pictorialinformation alongside word andoverlapping effects offunctional illiteracy andlanguage
information, limited changes to storelayout whenever pos- deficiencies, such as those with ESL consumers, mustbe
in
sible, employeetraining sensitivity to consumers who studied in order to better understand consumer behaviors in
and
displayliteracy numeracy and
deficiencies, implemen- ethnically diverse markets.
tationof safeguardsagainst functionally illiteratecon- At a managerial level,theeffects of levelsof functional
sumers'exploitation byunscrupulous employees. Forexam- literacy on several phenomena also merit additional
the
ple, understanding revealed byGarvey's favorite cashier research. For example, theeffects of illiteracy on thepro-
shouldnotbe leftto chancebutshouldbe partofemployee cessingof nutritional and healthclaims shouldbe clearly
training in markets in whichone in fourcustomers maybe understood. Equallyimportant is theinfluence offunctional
functionally illiterate.Our researchfurther suggeststhat illiteracyon consumerrelationships withstorepersonnel
functionally literate consumers whofindsafeandamenable and on theefficacy of customer service.Functionalliteracy
shoppingenvironments areloyalandarenotlikelytoexpect is takenforgranted throughout muchofthemarketing man-
discountedpricesfortheirpatronage. Amongfunctionally agement literature.The prescriptionsof most extant
ofMarketing,
30/Journal 2005
January
researchneedto be examinedfortheirapplicability tofunc- functionally illiterateconsumersto deal withobjective
tionallyilliterateconsumers, withtheobjectiveof develop- methodologies such as surveysand experiments. Thereis
ing an enhancedunderstanding and moreappropriate theo- certainlymoregoingon in themindsoffunctionally illiter-
riesandpractices. ate consumersthanour interviewsand observations can
Ourstudyhas severallimitations thattemperitsimplica- reveal,thoughwe deliberately focuson behaviorsand out-
tions.First,ourfunctionally illiterate
informantsarelikelyto comes thatwe repeatedlyobserved.Whereaslarge-scale
be different in leveland typeof motivation fromones who self-administered surveysremainunrealisticin studiesof
are notenrolledin adult-education programs. Respondents functionallyilliterateconsumers,the carefuluse of well-
in our studyare trying to overcomeliteracyand numeracy designedexperiments and personallyadministered surveys
deficiencies, whichsuggeststhattheyare highlymotivated maybe worthexploring.
and possibly quite different fromfunctionally illiterate A finallimitation pertainsto the authors'tacitbiases.
consumerswho are notseekingto becomeliterate. This is Even withtrainingand self-monitoring, we remainfunc-
anothertopic on which additionalresearchis needed, tionallyliterate consumers examining a worldwithwhich
thoughourexperienceswithaccessingstudents enrolledin we cannotcognitivelyand emotionallyrelate.There is
adult-education centerssuggestthatevengreater difficulties probablymuchthatwe missedabouthowfunctionally illit-
arepossiblein trying to reachnonstudent samples. erateconsumersnavigatemodem shoppingenvironments
Second,althoughwe combinedmultipleresearchmeth- thatmustbe exploredbyfurther research.
ods, theirscope was limitedby the inherent difficulty of
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Decision Making and Coping of Functionally Illiterate Consumers and Some Implications for

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be functionallyliterate,people musthave thelan- pingcontextsthanare CentralAmericanvillagerson Fifth

scoresareavailableon request.We addedESL andpoor,lit- through fourth gradereadinglevel students wereobserved

Seek helpinthestore:enablesothersto know Problemfocused:facilitates

Giveall moneyinpocketsto cashier:admitsdeficiencies, Problemfocused:avoidsnotbeingable to count

Buyone itemat a time:addressestheproblem

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