Consumer attitudes and behavior related to the adoption of euro before the changeover

Abstract

Purpose -The aim of this paper is to enhance the understanding of the consumer attitudes and behaviour towards a new currency, euro, before the process of the changeover. The approach of the current study differs from most past research on the same topic as consumer attitudes are surveyed before the currency changeover, not retrospectively based on consumer recall. The research attempts to achieve the following set of objectives: to identify the general consumer attitudes towards euro and pinpoint sources of tension, resistance and uncertainty before the currency changeover process; to identify the pre-adoption assessment of euro value scales and inflation expectations; and to identify various emotional factors related to the national and European identity in the euro adoption process. Design/methodology/approach -The data analysis of the current research adopts a qualitative methodology. To gather a full insight into the pre-changeover attitudes, opinions, fears and hopes, a total of 29 qualitative interviews were conducted. Findings -The results suggest that consumer attitudes and opinions towards the changeover process are multifaceted and concerns and uncertainties rise from various sources -from rational economic aspects to emotional aspects related to national identity. This research points also to the underestimated role of national pride in the process of transfer from the national currency to euro. Research limitations/implications -The study is one of the first attempts to research consumers before a forthcoming changeover; thus it is exploratory in its nature and has the traditional limitations of an exploratory research. Based on the initial findings, it would be possible to design a quantitative research for the subsequent countries adopting euro. Practical implications -The research identifies the attitudes of consumers before the changeover, outlining their doubts, fears and prejudices. The results can be used by subsequent countries adopting euro while planning their changeover strategies. The efforts of the strategy developers should be directed towards addressing the real challenges people face before the changeover. Originality/value -A distinctive contribution of this study lies in the addressing of the pre-changeover attitudes and opinions before the currency change took place. Although there have been surveys asking respondents to recall their pre-changeover opinions, the accuracy of the respondents' memory over time has decreased, which is why such surveys may not give a valid picture. This paper contributes to the understanding of the pre-adoption phase in a currency changeover process as seen from the point of view of consumers.

Advertising and country-of-origin images as sources of brand equity and the moderating role of brand typicality

“…The favourable attention towards advertising can generate a positive attitude towards the advertisements, which in turn modifies or reinforces associations in consumers' minds and so favourably influences brand awareness/associations and perceived quality (e.g., Aaker, 1991;Keller, 2003;Kerem et al, 2013). In other words, advertising can shape consumers' brand associations and perceptions of quality.…”

Assessment Of Money Illusion Impact On Individuals’ Economic Behaviour In Lithuania

“…It was found that in some situations; if the exchange rate is low, (when prices in two different currencies look similar); people tend to use familiar currency as a reference when assessing prices in unfamiliar currency, thus increasing the probability of making a mistake. When the exchange rate is high (when the nominal values of prices differ substantially), price scales become incompatible and people convert new currency to the old one using converter, thus minimizing the risk of a mistake (Desmet, 2002;Kerem et al, 2013).…”

“…Accordingly, when the exchange rate is simple, consumers perform mental computation and round exchange rate, or use old reference points. This can leads to mistakes in assessment of prices and creates euro illusion effect (Kerem et al, 2013).…”

“…People experience personal negative outcomes and, therefore, in the long term usually have negative attitude towards the euro. Estonians also expressed pessimistic feelings about the euro (Kerem et al, 2013). Van Raaij and van Rijen (2003) found that most of The Netherlands citizens had negative opinion about the euro.…”