Rule theory, rooted in Systems theory and the philosophy of language as developed by Wittgenstein, provides a method for understanding the meaning and actions behind consumer behavior. This approach uses the concept of rules to analyze why consumers act the way they do. It primarily uses two types of rules: constitutive and regulative.
Types of Rules in Rule Theory
Rule theory uses two primary types of rules to interpret consumer behavior:
Constitutive Rules
- Definition: Constitutive rules define the meaning of a specific action. They establish what counts as a particular behavior within a system or context.
- Example: A constitutive rule in a soccer game is that kicking the ball into the net constitutes a "goal". In the context of consumer behaviour a constititutive rule might define what it means to be a "loyal customer" (e.g. regularly making repeat purchases).
Regulative Rules
- Definition: Regulative rules prescribe how an action should be performed, within the context defined by the constitutive rules.
- Example: In a soccer game, regulative rules dictate how players move the ball such as that they are not allowed to use their hands. In consumer behaviour, they might dictate certain purchasing processes, such as a policy of no refunds on sales items.
Key Concepts of Rule Theory
| Concept | Description | Example |
|---|---|---|
| Systems Theory Foundation | Rule theory is based on understanding behavior within a system. | Consumers interact with brands within a complex market system. |
| Wittgensteinian Language Philosophy | Meaning is created through rules and context of language. | How consumers understand marketing language to influence their purchasing behavior. |
| Interpretation | Consumer behavior is interpreted based on applicable rules. | Analysis of whether consumer acts are compliant or in violation of both constitutive and regulative rules. |
| Meaning-Making | Rules provide a framework for consumer's meaning and actions. | How consumers make sense of advertising campaigns and product usage instructions. |
Practical Insights and Applications
- Market Research: Businesses can use rule theory to analyze the rules governing consumer interaction with their products and marketing.
- Product Design: Knowing the rules that guide consumers can help design products that are intuitive and user-friendly.
- Marketing: It can inform more effective messaging by aligning marketing content with consumer's rule system.
- Customer Service: Customer service policies are often determined by regulative rules and these are made transparent through the rule of communication with the client.
Example of Rule Theory in Action
Imagine a new restaurant advertising itself as a fine dining experience.
- Constitutive Rule: "Fine Dining" may be defined through rules such as: formal dress code, extensive menu, sophisticated presentation of food, and attentive service.
- Regulative Rule: Customers must make reservations, must not wear casual clothing, and a specific level of behavior is expected within the environment (e.g., not speaking loudly, not using mobile phone).
- Consumer Interpretation: A consumer will use these rules and expectations to understand if this is the right experience for them, then behave accordingly, or to form a response if these rules are not upheld.
In summary, rule theory is a powerful analytical tool for understanding why people act the way they do, by analyzing the rules they are following and the contexts they find themselves in.
