PERSONAL ADAPTATION TO STAGFLATION: A SOCIAL LEARNING PERSPECTIVE

This dissertation was designed to examine the adaptation patterns of consumers to the economic stagflation of the 1970s and the early 1980s from a social learning perspective. Consistent with social learning theory, it was proposed that the individual's economic situation early in life is an important learning experience, and that this construct is a significant explanatory variable regarding his (or her) consumer attitudes and behavior during stagflation.;Personal adaptation to stagflation, defined as the dependent variable, was assessed through measuring the following constructs: (1) attitudes toward using credit and saving money, (2) attitudes related to present financial pressures, (3) consumption behavior aimed at coping with stagflation, (4) attitudes toward energy consumption and the use of limited resources, and (5) energy conservation behavior.;The findings of this research are based on data collected through personal interviews of a non-probability quota sample of 414 New York City residents. A nine-part questionnaire was administered during each interview. In addition to the measures of economic deprivation and of adaptation to stagflation, the questionnaire included measures of locus of control and a number of demographic descriptors. These constructs were also defined as independent variables and the relationship between economic deprivation and adaptation to stagflation was explored within the context of these factors. Twelve hypotheses were formulated to investigate this relationship, and two hypotheses were designed to examine locus of control as a moderating factor between attitudes and behavioral patterns related to stagflation.;When economic deprivation was tested within the context of the other independent variables, it was revealed that individuals who had experienced economic deprivation has a less favorable attitude toward using credit, exhibited higher mental strain related to present financial pressures, and perceived the impact of present economic hardships as more severe, than subjects who did not experience early economic deprivation. There was some indication that the economically deprived display consumption behavior aimed at coping with stagflation and energy conservation behavior more frequently, and that they are early adopters of these behavioral patterns. Locus of control appeared to have limited explanatory ability in relation to adaptation to stagflation.;Early economic learning was operationalized as an experience of economic deprivation early in life or the absence of such an experience. Thus, the sample generated included individuals who had experienced economic deprivation early in life, and a group of subjects who did not have such an experience. The focus of this study was on comparing the adaptations to stagflation of the two groups. Economic deprivation was measured through the subject's recollection of early life experiences that are indicative of economic deprivation and through the individual's perceptions of his (or her) economic situation early in life.;The findings indicate that individuals who had experienced economic deprivation early in life adapt to stagflation differently that persons who did not have such an experience. These results suggest that early economic deprivation is a valuable construct for market segmentation and for designing product strategy during stagflation. Consumers who had experienced early economic deprivation appear to be more receptive of public policies targeted at reducing inflation and economic instability, and of new products and services aimed at saving money. On the other hand, these individuals might be less innovative, and replace products less frequently. Additional research designed to develop improved measurements of early economic deprivation must be undertaken before this construct can be successfully incorporated into marketing strategy.