Mapping the underlying drivers of nowism as a consumer trend, and its impact on customer satisfaction and customer loyalty

Abstract

Every now and then, a powerful consumer trend surfaces, leaving companies no other choice but to familiarize with the trend and its implications, and adapt to it. Since first introduced as a consumer trend in 2009, nowism has received growing attention as a trend that deserves recognition, yet no empirical research has been conducted on this subject. This leaves managers with no information or guidelines on how to handle this influential consumer trend. Our main goal with this dissertation is to rectify this situation We employ a combination of qualitative and quantitative methods, where our objective is to explore the construct of nowism, identify its underlying drivers, and uncover its impact on customer satisfaction and loyalty. We hypothesize that positive life orientation; impulsive behavior; extraversion; and individualism, all influence nowism positively. Moreover, we hypothesize that these relationships are moderated by discretionary income and free time. Further, we employ a segmentation technique based on life cycle, and hypothesize that the young, free and simple segment is more likely to have a high degree of nowism compared to the segments chaos in my life and got my life back. Lastly, we hypothesize that nowism will have a negative effect on customer satisfaction and customer loyalty. The Norwegian markets of grocery chains and mobile subscriptions are set as contexts when assessing customer satisfaction and loyalty. Data was collected using a combination of convenience and snowball sampling, yielding a final sample of 378. Our proposed models are tested by employing analysis of variance (ANOVA) and regression analyses, and further replicated by using partial least squares (PLS). The results reveal that positive life orientation; impulsive behavior; extraversion; and individualism all have a positive impact on nowism. However, we found no moderating effects from discretionary income and free time. Further, our research reveals that young independent individuals are most likely to adhere to nowism. Lastly, we found no significant effects of nowism on customer satisfaction and loyalty. Overall, our findings will help managers gain a deeper understanding of nowism, and enable them to exploit business opportunities related to the trend. This may in turn lead to competitive advantages and economic prospering.