The consumer competence of young adults: a study of newly formed households

Abstract

Purpose The consumer competence concept is loaded with ambiguity in the academic as well as in the public use of the term. The purpose of this paper is to examine the concept theoretically and empirically. Design/methodology/approach Consumer socialization theories were compared and combined for the theoretical background, and a mixed‐methods methodology was applied for the empirical part. The study included young adults aged 18‐25, who had recently established their first household. Qualitative and quantitative methods were used to explore the way in which young consumers establish their first household, particularly with respect to how new, complex buying decisions are managed. Findings Guidance from family and friends was found to be of major significance as regards complex consumer decisions made in the transition period from home to first household. The young adults did not display very high levels of consumer competence in actual consumption decisions, however, more competent approaches were reported when respondents were faced with hypothetical purchase situations. The young consumers' own understanding of what consumer competence requires showed some degree of correspondence with traditional notions of “desirable consumer socialization,” but also added a fundamental consumer competence to the list: to carefully consider one's need to make a purchase. Research limitations/implications The study included only a certain segment of young consumers. Future studies of consumer competence may include consumers of other age groups, consumers at different transitional life stages, or consumers with other cultural backgrounds to make comparative studies of the consumer competence of different segments of the population and across nations. Originality/value The study highlights a concept of importance to both consumers and marketers, which has previously been largely overlooked or only implicitly referred to.