Corporate and societal rationalization

Thumbnail Image
Clarke, Michael F. H.
Journal Title
Journal ISSN
Volume Title
University of Guelph

This study examines how the sociological concept of rationalization applies to firms and consumers, via an examination of the advertising, distribution, payment, pricing, communication habit, and sales preferences of early adopters. The rationalization of consumption via powerful corporate standing, and the diffusion of technology, which acts as a culture changing force, emerges at the purchase decision level. The media richness theory, self serving biases in service contract settings, and empirical findings relating to the research of advertising, e-commerce, and text-based communications, combine to support the idea that marketing and sales is becoming increasingly characterized by the rationalization of consumption through change driven by efficiency, predictability, calculability, and artificial control. Concerning the retail purchase of a mobile phone, consumers are found to be positively impacted by less rich advertising mediums, efficient monetary transactions, and non-testimonial/non-personal style advertising, and equally price elastic negatively to both usage and contract pricing.

rationalization, firms, consumers, advertising, distribution, payment, pricing, communication habit, sales, consumption, corporate standing