This thesis examined whether the saturation of the social identity environment could impact consumer decision-making and preferences. One experimental study revealed that consumer preference for identity-salient products is moderated by the strength of the identity of the consumer and saturation of the social identity environment. Results showed that when participants held a strong native membership, they were more likely to engage with identity relevant products when in an unsaturated (vs. saturated) social identity environment. Conversely, participants who held a low native membership were more likely to engage with identity relevant products when they are in a saturated social identity environment vs. an unsaturated social identity environment.

Private label growth in emerging markets has not kept pace with the growth in private labels elsewhere. For instance, in Europe and North America, private labels now constitute an average of 35% of total retail market share, compared to emerging markets, where market shares vary between 1% and 8 %. This dissertation examines the possibility that differences in private-label performance between developed and emerging economies is not driven by one mechanism, but arises from a variety of sources, both structural, and behavioral. Specifically, I focus on manufacturers’ market power, retailers’ private label portfolio strategies, and consumers’ perceptions of private labels. In most emerging economies, national brand manufacturers tend to be the sole producers of private labels. As a result, manufacturers have inherent market power and can deter retailers from pursuing aggressive private label strategies, which results in low private label market shares. Moreover, some retailers in emerging economies now carry their private labels as part of a multi-tiered portfolio. However, a small price-gap between the quality tiers results in high intraportfolio competition leading to cannibalization and lower private label market shares. Last, private label market shares in emerging economies may be smaller than in developed economies because low-income households prefer higher priced national brands. This counterintuitive phenomenon is driven by two interrelated factors. First, social influence implies that low-income households are upward-comparing, they contrast themselves with high-income households whom they believe are better-off. Because higher-income households purchase national brands, upward-comparisons lead to a preference for national brands. Second, low income households are unknowledgeable about private label advancements hence they prefer national brands.

This research investigates the conditions under which people use consumption choices to signal accurate versus enhanced information about themselves to others. Across five studies, I demonstrate that activating a self-verification, as opposed to self-enhancement, motive leads consumers to choose products that signal accurate information about a self-view, even when this view is negative. I replicate this finding across several self-view domains, including physical attractiveness, power, and global self-esteem. However, I find that this effect is attenuated when consumers have a high fear of negative social evaluation. My findings suggest that this type of consumption, in which choice is driven by the desire to be seen accurately (vs. positively), can explain abundant real-world behavior; contradicting the notion that consumers choose products primarily for self-enhancement.

Reciprocity is considered one of the most potent weapons of social influence. Yet, little is known about when reciprocity appeals are more or less effective. A functional evolutionary approach suggests that reciprocity helps people survive in resource-scarce environments: When resources are limited, a person may not be able to obtain enough resources on their own, and reciprocal relationships can increase the odds of survival. If true, people concerned about resource scarcity may increasingly engage in reciprocal relationships and feel more compelled to reciprocate the favors done for them by others. In a series of experiments, I test this hypothesis and demonstrate that: (1) chronic concerns about resource scarcity (low socioeconomic status) predict increased reciprocity, (2) experimentally activating resource scarcity enhances the effectiveness of reciprocity appeals, (3) this effect is moderated by cues of persuasive intent, and (4) this relationship is mediated by increased gratitude.