DERIVATION OF HYPOTHESES REGARDING FAMILY ECONOMIC BEHAVIOR THESIS FOR THE DEGREE OF PhD. MICHIGAN STATE UNIVERSITY BY DOROTHY ZGLINSKI PRICE 1964 THESIS IHIIHHWHIHllllHlHlillllHlllllllillllllllllllillllll ”— ‘1' 3129301394 LIBRARY Michigan State University —vv v—vwv- This is to certify that the thesis entitled DERIVATION OF HYPOTHESES REGARDING FAMILY ECONOMIC BEHAVIOR presented by Dorothy Zglinski Price has been accepted towards fulfillment of the requirements for _EH..D.._degree in e en Major professor Date October 27, 1961; 0-169 ABSTRACT DERIVATION OF HYPOTHESES REGARDING FAMILY ECONOMIC BEHAVIOR by Dorothy Zglinski Price This study represented the first stage in a project designed to seek a partial explanation for differences in the economic behavior of families, which took into account family interaction and behavior other than that which is solely rational. I Family economists frequently use segments of theories from various disciplines in teaching and in research, since no single theory of family economic behavior yet exists. Economic consumption theory alone is not entirely satisfactory, since it is geared to the individual or to aggregates, not to families. In addition, doubt has been cast on several basic assumptions of economic theory, such as rationality and singularly- motivated behavior. Because of this, family economists fre- quently turn to concepts and principles found both in economics and in other behavioral sciences. Differing, sometimes con- tradictory, assumptions and diverse definitions of pertinent concepts frequently lead to a confused, disintegrated view of family economic behavior. Principles based upon an integrated set of assumptions and a set of operationally defined concepts 1 Dorothy Zglinski Price could provide a plausible guide for searching for laws and significant definitions related to family economic behavior. It was assumed that the basic concepts of an applied science, such as home management or family economics, are rooted in the related basic disciplines; therefore, postulates and principles from specific related fields could be integrated and from this could be derived hypotheses relevant to family economic behavior. The areas chosen were economics, psychology, and social psychology. Economic indifference theory, Rogers' self-theory, and Thelen's work-emotionality theory were ana— lyzed. Basic postulates were-drawn from all three areas and integrated to form one comprehensive set of postulates. Within this framework, two sets of principles were included, the prin- ciples of indifference theory and principles integrated from the two psychological theories. Using this construct as a base, and including definitions of concepts employed in the original theories plus several operational definitions, ll hypotheses were derived. This derivation represented a probabilistic type of explanation or an inductive systematization, not a purely deductive system. The hypotheses are not formally implied by the stated postulates and principles; rather, the postulates and principles make the derived hypotheses probable. The theoretical construct, itself, represents a holistic approach to human behavior and relies heavily on psychoanalytic techniques. Economic behavior in a family in viewed as one Dorothy Zglinski Price aspect of total behavior. Because of the holistic foundation of the construct, the whole person, as a creative organism with great potential for healthy behavior, is emphasized. The central derived hypothesis relates a fully- functioning family member to a rational pattern of family economic behavior. It is hypothesized that economic consump- tion theory will provide a relatively adequate explanation of family economic behavior when at least one family member is approaching a state of being fully-functioning, since the behav- ior is more apt to approach rationality. Where there is no such person in a family, small group theory will provide a more realistic explanation to family economic behavior. A method of empirically testing this hypothesis was dis- cussed. Qrmethodology provides the methodological foundation of the study, since intensive analysis of few families is planned. Empirical testing of the derived hypotheses will fur- ther enable significant variables affecting family economic behavior to be identified, and will provide some basis for an integrated theoretical explanation of this behavior. DERIVATION OF HYPOTHESES REGARDING FAMILY ECONOMIC BEHAVIOR By Dorothy Zglinski Price A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Home Management and Child Development 1964 ACKNOWLEDGMENTS During the four years of this study, many persons have been of help, directly by assistance, encouragement, and criti- cism, and indirectly, by their writings and teaching. Although only a few can be singled out for special acknowledgment, my gratitude goes also to the many who are not specifically men- tioned. I am especially indebted to Esther Everett, my thesis advisor, and to Beatrice Paolucci, Jean Schlater, Alice Thorpe, and James Shaffer, members of my graduate committee. Their confidence and encouragement enable the study to proceed from the muddled maze of initial ideas to its final state. Special thanks to Richard Rudner, whose inspiring classes led to a deep interest in research and the philosophy of science. A final note of gratitude to my husband, David, without whose profes- sional and personal aid, the entire study would have been impossible. iii/l"i TABLE OF CONTENTS ACMOMDGMENTS O O O O O O O O O O O O O O O O 0 Chapter I. II. DESIGN FOR STUDY . . . . . . . . . . . . . Need for Study . . Basic Assumptions Objectives . . . . Limitations . . . REVIEW OF LITERATURE . . . . . . . . . . . Interdisciplinary Study of Consumer Behavior . . . . . Theoretical Studie of Consumer Behavior Empirical Studies of Consumer Behavior Studies of the Self . . . . . . . . . Studies of Small Groups . . . . . . . Summary . . . . . . . . . . . . . . . III. SELECTION OF THEORETICAL CONSTRUCTS . . . General Procedure . . . . . . . . . . Analysis of Constructs . . . . . . . . Economic Indifference Theory . . . Basic Postulates . . . . . . . Principles . . . . . . . . . . Personality Theory . . . . . . . . Basic Postulates . . . . . . . Principles . . . . . . . . . . Small Group Theory . . . . . . . . Basic Postulates . . . . . . . Principles . . . . . . . . . . iv Page ii/iii \] PWWH H IV. DEVELOPMENT OF THEORETICAL CONSTRUCT Method of Integration . Development of Construct Basic Postulates . . Principles . . . . Derived Hypotheses . V. DISCUSSION OF FINDINGS . . . Summary of Findings . . Implications of the Study BIBLIOGRAPHY . O O O O O O O C O 0 INTRODUCTION TO APPENDICES . . . . APPENDIX A. DEFINITIONS OF GENERAL TERMS B. DEFINITIONS OF ECONOMIC CONCEPTS C. DEFINITIONS OF PSYCHOLOGICAL CONCEPTS Page 88 88 91 91 104 121 121 127 155 148 149 152 156 CHAPTER I DESIGN FOR STUDY The question of why money is used in a variety ways by different families has been of interest to social scientists for many years. Investigations by economists, psychologists, sociologists, and others have, directly and indirectly, resulted in a variety of theoretical constructs. With so much written and said in regard to family economic behavior, this often acts to create a smokescreen, making it appear that further studies are nonessential in this area. However, the direct question, ”Why does a family use its money as it does?" invariably cannot be answered. If home economists are concerned with improving family money use, it would be helpful to understand first the basic reasons behind this behavior. It is evident, then, that a problem still exists. Need for Study Home economists basically are concerned with the family unit. In teaching and research concerning family economic behavior, segments of theories from various disciplines are utilized, since no single theory of family economic behavior yet exists. With the expanding body of knowledge related to all areas of family decision—making, it appears to be obvious that some integration may be advisable. Integrative work in 1 psychology and economics is already being done, particularly by Katona1 and others involved in similar endeavors. Economic consumption theory, alone, has not been en- tirely satisfactory in explaining or predicting family economic behavior. It is geared to explaining the economic behavior of individuals or of the large group, such as the country, and not specifically of the small family unit. In addition, recent work in psychology and sociology has cast doubt on several basic assumptions of economic theory, such as rationality and singularly-motivated behavior. Because of this, those concerned with family economic behavior most frequently turn to the concepts and principles. found both in economic theories and in theories related to various aspects of human behavior.' Problems inevitably arise because of differing, sometimes contradictory, assumptions, and diverse definitions of pertinent concepts. This can then result in a confused, disintegrated picture of the family. Principles based upon an integrated set of assumptions and a set of operationally defined concepts could provide a plausible guide for searching for laws and significant defini- tions related to family economic behavior. These principles could also provide the teacher with a more logical framework for discussing the economic operations of the family unit, and would better enable the researcher to know what depends on what, and how, and why. Similarities and divergences among theories 1Among Katona's contributions are two books: Psycholog- ical Analysis of Economic Behavior and The Powerful Consumer. could be more easily seen, thus pointing more clearly to pos- sible research areas; what has been overlooked and what has been taken for granted may then be better known.2 One method of arriving at such principles is to first examine those theo- ries, in various disciplines, which are related to family economic behavior, in an attempt to determine if such integra- tion is possible, and if so, how it can proceed. Basic Assumptions It was assumed that the basic concepts of an applied science, such as home economics (or more specifically, home management, in this case), are rooted in the related basic dis— ciplines. (Theoretical work done in this area, as well as the philosophical background of science, have led to this assump- tion.) It was further assumed that postulates and principles from specific theoretical constructs from fields related to home management could be integrated and from this could be derived hypotheses relevant to family economic behavior. Objectives This study had two primary and one secondary objective. The primary objectives were: 1. To develop an initial theoretical construct seeking partial explanation for differences, in economic behav- ior of families, which took into account both family interaction, and behavior other than that which is 2Gustav Bergman, Philosoggg of Science (Madison, Wis.: University of Wisconsin Press, ), p. 18. solely rational. To derive several hypotheses from the proposed theoret— ical construct. In addition to these, the secondary objective was con- cerned with an evaluation of the use of this type of research in the area of home management. Limitations Prior to beginning this study, it was necessary to recognize several general limitations, which are characteristic of this type of research; 1. 3. The theories analyzed are not without critics. However, since it is the integration of basic postulates and principles recognized by authorities in various disci- plines, and not the reformulation of these theories, which was the concern of this study, the theoretical frameworks were generally taken as given. (This, of course, was not true where basic postulates were delib- erately relaxed.) Since the problem under study is primarily behavioral, only theoretical constructs with foundations in behav- ioral areas were conSidered. This excluded psychologi- cal theories based on such areas as physiology or neurology. No claim was made that the frameworks analyzed are the only ones affecting family economic behavior. However, it is inherent within the scientific method that this is the only way by which the relevancy of any specific framework can be determined. It is essential to work with theoretical frameworks which appear to be relevant to the problem. Only by deriving hypotheses from these frameworks and testing them extensively can their rele- vancy be determined. The scientific method is basically a logical procedure of trial and error. 4. Not all aspects of the theoretical constructs were analyzed or integrated. The points for integration were determined by connections, interdependence, congruity or lack of it, and reinforcement or lack of it.3 5. Much of the study and the resultant hypotheses were of a subjective, and therefore not easily measurable, nature. Since psychosocial factors were dealt with, this was to be expected. Much behavior in the real world is of this subjective nature. Scientific study necessitates a choice between degree of precision and degree of reality. It is often difficult to achieve both to any high degree. In addition, it should be kept in mind that simply because measuring devices are not now available does not mean that they cannot be developed. Measurements, though not extremely precise, should be possible in regard to subjective behavior. Even when measuring devices do not exist, identification of significant variables and relationships is valuable. 5These criteria are similar to those used by C. Addison Hickman and Manford Kuhn in Individuals Grou s and Economic Behavior (New York: The Dryden PEess, IHSBI. Derived hypotheses were necessarily broad in nature and related to several facets of human behavior. Since the theoretical constructs analyzed dealt with various behavioral aspects, this was to be expected. These hypotheses are purely exploratory and possibly testing will provide negative results for some of them. Deriva- tion of hypotheses in this manner simply provides leads for further refinement of the theoretical construct. CHAPTER II REVIEW OF LITERATURE Before the study was begun, literature pertinent to specific aspects of the research was surveyed. The focal points for this review were: 1. Interdisciplinary study of consumer behavior. 2. Theoretical studies of consumer behavior. 3. Empirical studies of consumer behavior. 4. Studies of the self. 5. Studies of small groups. Although the prime concern of this study was family economic behavior, most literature focuses on consumer behavior, which may or may not refer directly to the family. However, the simi- larities between family economic behavior and general consumer behavior are sufficiently numerous to warrant reviewing litera- ture referring to both. Interdisciplinary Study of Consumer Behavior The trend toward interdisciplinary study in such areas as consumer behavior has experienced a resurgence in recent years. More and more researchers have become aware of the need to study the "whole man," not merely carefully delineated sub- divisions. Boulding has coined the term "eiconics" as referring to such a new science or cross-disciplinary specialization deal- ing in the symbolic communication of an image of images. The "image" he defined as "the sum of what we think we know and what 7 makes us behave the way we do." He reemphasized the interdis- ciplinary approach by maintaining that we must always operate with the concept of an inventory of images, which can never be replaced by a single image.1 Several years ago a conference at Iowa State University was concerned primarily with the relevance of economics, soci- ology, and psychology to home management.2 Discussions such as this stimulate thought about basic disciplines and open the door to further interdisciplinary research cooperation. Many writers, over a long period of years, have main- tained that the economics of consumption is really an interdis- ciplinary field. It involves the psychology of wants and choices, the resultant economic decisions of people as consumers, and the effect of these decisions on resource utilization in the economy. Marshall, to whom consumption theory can be traced, realized that man is an enormously complex individual, who is beyond, before, and beneath economics, alone.3 Mack saw all behavior, including financial, as being directed in part by conscious and in part by unconscious motives. Because of these differing motivational processes, resulting actions may differ sharply. She listed several factors which appear to influence individual buying. These include income, lKenneth Boulding, The Image (Ann Arbor: The University of Michigan Press, 1956), chap. IO. 2Family Economics-Home Management Conference, Iowa State University, June,l960. 3Alfred Marshall, Principles of Economics (New York: MacMillan Co., 1891). changes in income, standards of living, physical goods and financial assets, demographic factors, habits and expectations, price, and miscellaneous external factors.4 Boulding too pointed out that the patterns of the con- sumer are the patterns of living and therefore require complex psychological and sociological, as well as economic, study. He went so far as to say that the psychosocial variables may even play the most important role in determining consumer eco- nomic behavior, more so than any strictly economic considera- tions.5 In his discussions of economic man, Drucker pointed out that only if the science of the economic sphere were to be regarded as supreme and economic aims as the most desirable, could present economics truly deal with social behavior of man.6 Apparently, many economists believe that something more than pure classical economic theory is needed in order to explain man's behavior, even on a solely economic level. .If we are to be concerned with economic behavior of individuals or families, it appears obvious that something in addition to economic theory is necessary. Boulding, among others, clearly indicated that "the economist sees the world 4Ruth Mack, "Economics of Consumption," A Surve of Con- temporary Economics, ed. Bernard Haley (Homewood, III.: Richard ”D. Irwin, Inc., 1952). SKenneth Boulding, A Reconstruction of Economics (New York: John Wiley & Sons, Inc., 19527, p. 147. 6Peter Drucker, The End of Economic Man (London: William Hernemann, Ltd., I959), p. E4. 10 not as men and things, but as commodities."7 This is where the peculiar skill of the economist lies. Boulding went on to say that since the economist is not concerned primarily with human behavior, he is willing to accept any behavior theory which answers the following type of question: "Do higher prices mean smaller purchases?"8 Therefore, if a complete theory of family economic behavior is desired, it may be worthwhile to integrate economic theory with theory from the behavioral sciences. An attempt at this type of integration has had signifi- cant impetus during the 1950's. The Survey Research Center at the University of Michigan has been one of the leaders in fur- thering this cause. Economic psychology, as this discipline is referred to, draws both on economic theory and psychological theory. Katona referred to Keynesian theory (including princi- ples regarding effects of change in income), Pigou‘s theory (effects of assets on spending), and classical theory of ra- tional behavior and utility preferences, as well as psychologi- cal theories of learning, habit formation, problem solving, motivation, and groups as most useful in setting up hypotheses in economic psychology.9 A study by Mueller is illustrative of the type of 7Kenneth Boulding, The Skills of the Economist (Cleve- land: Howard Allen, Inc., 1958), P. 9. , 81bid., p. 29. 9George Katona, "The Function of Survey Research in Economics," Common Frontiers of the Social Sciences, ed. Mirra Komarorsky (Glencoe, 111.: THe Free Press, 1956), p. 374. 11 research involved in economic psychology. In it, she found information on consumer attitudes to be most valuable when there was a marked divergence between changes in income and changes in attitudes.10 Others too have expressed interest and concern in what can be referred to as economic psychology. Simon and Edwards have both discussed theories of decision-making as seen by economists and psychologists. Edwards offered a critique of economic theories of decision-making, taking to task primarily the central principle of the theory of choice--economic man.ll Simon too pointed out the defects of traditional economic decision-making theory. Classical theory is a theory of a man choosing among fixed and known alternatives, to each of which is attached known consequences. But when perception and cognition intervene between the decision maker and his objective environment, this model no longer proves adequate. We need a description of the choice process that recognizes that alternatives are not given but must be sought; this description must take into account the arduous task of determining what consequences will follow on each alternative.12 Moore has devoted an entire small text to a discussion of the importance for sociologists to renew attention to the 15 social behavior of economic man. loEva Mueller, "Effect of Consumer Attitudes on Pur- chase," The American Economic Review, XLVII (1956). 11Ward Edwards, "The Theory of Decision-Making," Psychological Bulletin, LI (1954), 580-407. l2Herbert Simon, "Theories of Decision-Making in Economics and Behavioral Science, " The American Economic Review, XLIX (1959), 272. lBWilbert Moore, Economy and Society (Garden City, N.Y.: Doubleday &.Co., Inc., 1955). 12 A more complete explanation of the determinants of con- sumption, as seen by Keynes, is called for by Vickrey. He listed four specific hypotheses of consumer behavior which need further clarification: (1) the relationship of income to con- sumption is mediated by attitudes; (2) consumption is affected by past history; (5) consumption is affected by anticipations; and (4) consumers are not a homogeneous group}!+ One of the most complete studies involving integration of social psychological and economic theories was undertaken by Hickman and Kuhn. Their work had a dual purpose: demonstration of what can be accomplished by application of social psychology to economic problems and illumination and possible solution of three issues--nature and effect of managerial motivation; fea- sibility of making interpersonal comparisons of utility, and the compatibility of economic planning and human freedom. They approached these problems through the symbolic interactional method, popularly referred to as reference-group or self theory. This is the approach advocated by Cooley, Dewey, Mead, and Bloomer, among others.15 Two major texts have been written which deal wholly with economic psychology, both by Katona. The first, published over a decade ago, dealt with an over-all psychological analy— sis of economic behavior as directed toward an understanding of 14William Vickrey, "Keynesian Theory and Empirical In- quiry," Common Frontiers of the§ocial Sciences, ed. Mirra Komarovsky (Glencoe, 111.: The Free Press, 1957), pp. 580—81. 15Addison Hickman and Manford Kuhn, Individuals. Groups and Economic Behavior (New York: The Dryden Press, 1955). 13 major decisions and choices of consumers and businessmen and how these decisions contribute to economic fluctuations. In order to accomplish this, he was primarily concerned with twen- tieth century economics in the United States and studied the economic processes as affected by human decisions. This he saw as the microeconomics which provides the link with psycho- logical variables and the basis for a dynamic analysis of what happens and why it happens.16 Katona's more recent book was devoted entirely to the consumer. He attempted to conciliate seemingly opposing views of econqmics and psychology. According to Katona, classical economic theory postulates a single comprehensive motive-- maximization of utilities or profits, while modern psychology postulates that behavior is multimotivated. These two views, however, are not necessarily in conflict since he assumes that a multitude of forces represents description rather than sys- tematization and can be ultimately reduced to a basic motive. Psychology actually provides intervening variables, such as motives, attitudes, expectations, and group belonging, which Operate between the stimuli of market conditions and the re- sponses to them in the form of economic decisions. These psy- chological principles therefore tend to modify classical 17 economic theory. l6 . . George Katona Ps cholo ical Analys1s of Economic Behavior (New York: McGranHilI Book Co., Inc., 1951). ' l7George Katona, The Powerful Consumer (New York: McGraw Hill Book Co., Inc., 1960). 14 A study by Clarkson centered on an analysis of the theory of consumer demand, in an attempt to discover whether an empirically testable theory could be constructed. He con- cluded that the empirical basis of the theory of demand could possibly be found in a testable theory of individual decision- making behavior and developed outlines of a theory of individ— ual consumer behavior. The actual construction and validation of such a theory, however, awaits empirical testing. His work concentrated primarily on the process of decision-making itself, and was based on the following postulates: (1) each individual consciously decides over a period of time what proportion of his income to spend on each category of commodities; (2) deci- sion procedure will remain constant over time, as long as income does not vary significantly in either direction; and (3) proportions of total income a consumer allocates to each category will be reflected to a close approximation by the proportions allocated to these categories by consumers that are in the same social and economic class.18 The concept of the economic man is still adhered to by many, but is slowly being replaced by other psychological con— cepts. Cooperative work also needs to be done to clarify definitions of these concepts used in several different areas. An example of this is the existent gap between psychologists and economists in regard to the definition of decision or choice, as indicated by Arrow. Psychologists use decision only 18Geoffrey Clarkson, The Theoryof Consumer Demand: A Critical Appraisal (Englewood Cliffs, N. J.: Prentice-Hall, 110., 1 O 15 when conscious reflective choice is involved. Economists usu- ally refer to a decision as applicable to unconscious, or at any rate unreflective, choices.19 As cross-disciplinary re— search in the area of consumer behavior becomes more and more common, these concepts will be clarified and some of the assump- tions even now held in regard to consumption will be more readily explained. Theoretical Studies of Consumer Behavior Consumers have been the subject of much study, direct and indirect, for many centuries. Zimmerman presented an excel- 20 The lent historical account of some of these early studies. first theoretical work was undertaken by economists. Adam Smith, one of the founders of the classical school of economics, did not assign a specific role to consumption as the sole end and purpose of all production but implied that it would take care of itself. The reason for his overlooking the importance of consumption is rather obvious when looked at in the perspective of its day. At that time, the major economic problem centered about man's struggle to conquer nature in the production of material wealth, instead of the maximization of the consumer's satisfaction, which is a prime problem today, as 19Kenneth Arrow, "Utilities, Attitudes, Choices: A Review Note," Econometrica, XXVI (1958), 1. 20Carle Zimmerman, Consumption and Standards of Living (New York: D. Van Nostrand Co., Inc., 1936). 16 21 John Stuart Mills perhaps best summarized seen by economists. consumption as viewed by the classical economists: Political economy . . . has nothing to do with the con- sumption of wealth, further than as the consideration of it is inseparable from that of production, or from that of distribution. We know not of any laws of con- sumption of wealth as the subjects of a distinct sciengg: they can be no other than the laws of human enjoyment. One of the first attempts to introduce the psychologi- cal element to the economics of consumption was that undertaken by the early proponents of marginal utility. Marshall, the author of neo-classicism and a proponent of marginal utility, recognized the neglect of consumption by earlier economists and attributed this neglect to the belief that consumption was an individual and private matter which was better left to common 23 sense and experience, than to any economic analysis. 24 and Menger,25 two of the early proponents of Jevons marginal utility, emphasized the subjective aspect of human wants and the utilities that minister to the satisfaction of these wants. To them, the psychological approach was essential. 21Adam Smith, The Wealth of Nations (New York: w. J. Ashley, 1894). 22John Stuart Mills, Essays on Some Unsettled Questions (London: W. J. Ashley, 1844), p. 132. 23Marshall, op. cit. 24William Jevons, Theory of Political Economy (London: MacMillan & Co., Ltd., 1888). 25Carl Menger, Principles of Economics, trans. by James Dingwall and Bert Hoselitz (Glencoe, Ill.: ’THe Free Press, 1951). 1'7 Until Pareto, marginal utility was looked at as being a measurable concept, symbolized by cardinal numbers. He, however, sought to abandon the whole concept of measurable utility. He adopted the concept of indifference curves, first used by the English economist, F. Y. Edgeworth, and showed the possibility of constructing a theory on the basis of scales of preference only. Instead of relying on a cardinal measurement 26 He also displayed of utility, Pareto visualized it ordinally. interest in the nonlogical actions and introduced the concept of "derivations," which described the beliefs which served to rationalize man's nonlogical actions. Generally, he applied the term "logical actions" to actions that logically conjoin means to ends not only from the standpoint of the subject per— forming them, but from the standpoint of other persons who have a more extensive knowledge--in other words, to actions both subjectively and objectively in the sense just explained. Other actions he called nonlogical and saw them as originating chiefly in definite psychic states, sentiments, subconscious feelings, and the like.27 Another, among the first to perceive the irrationality of some consumption was Veblen, an economist, who was concerned primarily with human motives. He held that to ignore social institutions was to remove all foundations of economic theory and argued against the concept of economic man since existent 26Vilrredo Pareto, Manuale de Economia Politica (Milan: Societa Editrice Libraria, 1906). 27Vilfredo Pareto, Mind and Society, trans. by Andrew Bongroine and Arthur Livingston (New ork: Harcourt, Brace & Co., 1955). 18 social lags could hardly permit rational behavior to occur.28 In his view of consumption, Keynes took into account the psychological variables which may affect the consumption function. However, since the theory itself is concerned with aggregate consumption, it is formulated around the idea that this consumption is determined primarily by income.29 Duesen- berry has attempted to modify some aspects of the consumption function. He maintained that Keynesian formulation involves two false assumptions: that every individual's consumption behavior is independent of every other individual and that con- sumption relations are reversible in time (that is, that as income increases, consumption will increase and conversely, as income decreases, consumption will decrease). By developing a utility index in which he incorporated the weight applied to the consumer by the expenditures of others, he has determined that there exists a lagged effect in consumption when income falls. Previous consumption needs will continue for some time after income decreases and will only slowly adjust to the lesser income.50 According to Parsons and Smelser, Duesenberry's hypothe- sis represents an advance over Keynesian principles, to soci- ologists, since it takes into account the behavior of others as 28Thorstein Veblen, Theory of Leisure Class (New York: The Modern Library, 1916). 29John M. Keynes, The General Theory of Employment, Interest and Money (New York: Harcourt, Brace & Co., Inc., 1936). 50James Duesenberry, Income. Saving and the Theory of Consumer Behavior (Cambridge, Mass.: Harvard University ress, 1952). 19 well as the consumer's own past behavior. They also approve of his move toward incorporation of structured role expectations into his construct.51 Parsons and Smelser, themselves, have examined the implications of the household especially in regard to determin- ing the shape and behavior of the consumption function. They see a certain minimum of possessions as essential in order for a family to meet the cultural definition of "family." This list varies with value changes. In addition to this, a level of spending is required primarily for tension management within the family. (Tension management refers to personality and small group problems to which a family must adjust in order to function effectively.) Thirdly, class and prestige symboliza- tions are a major area of role involvement for a consumption unit. This last group represents the focus of the symbolic location of each family unit relative to each other unit in their society. Above and beyond these three sets of role definitions which define a certain level of spending for each family, another cluster of expectations leads to a level of saving or of liquid funds set aside for adaptation to future situational contingencies. This analysis indicated that spend— ing patterns for a family must fluctuate within rather narrow limits; the consumption function then, both individual and aggregate, assumes a very stable nature.32 In this framework, 31Talcott Parsons and Neil Smelser, Economy and Society (Glencoe, 111.: The Free Press, 1956), p. 251. 321bid. 2O Parsons and Smelser have attempted to combine Keynesian economic concepts and sociological concepts, primarily that of role. Friedman, an economist, has also worked toward an ex- planation of consumer expenditure patterns. Prior to attempting to explain or analyze patterns of expenditures, he believed it necessary to divide consumer income into a permanent component and a transitory component. The permanent component reflects factors considered as determining capital value or wealth, such as, personal attributes of economic ability of earners while the transitory component reflects all other factors, such as accidental or chance occurrences. He then concluded that per- manent consumption is influenced by some fraction of permanent income, this fraction itself being influenced by the interest rate, the ratio of nonhuman wealth to income, and other factors affecting tastes for current consumption rather than asset accumulation. Friedman, himself, pointed out one obvious difficulty with this conceptual framework: neither permanent income nor permanent consumption can be directly observed. Only actual receipts and expenditures can be observed while the construct refers to "ex ante" or planned magnitudes. The best that can be done is to adjust crude receipts and expenditure data for some obvious effects and then treat them as if they were "ex ante" magnitudes.53 Norris' theory of consumer's demand is essentially a behavioristic analysis, expenditure behavior being classified aaMilton Friedman, Theory of the Consumption Function (Princeton, N. J.: Princeton University Press, 1957). 21 in accordance with the amount of consideration given to each expenditure. Expenditures are then analyzed as to the reasons for their falling into different categories. (Classifications include: areas in which careful consideration is absent--for petty goods, goods arising out of past commitments and goods used to satisfy rigid habits; areas in which careful considera- tion occurs--goods which are costly; and the dynamic residual which oftens represents an experimental fund.)54 Bilkey, too, employed a primarily psychological approach to the question of consumer behavior. Using the vector hypoth- esis, which applies Lewin's vector psychology to consumer anal- ysis, he showed how consumer choice grows out of internal psychic conflict between attractions toward certain attributes of the same item. This desire-resistance relationship, when summed, determines Whether a particular purchase will be made. His entire hypothesis is based on four postulates: 1. Consumption is but one aspect of a person's total pattern of activities. 2. A person's actual disbursement pattern is the end resultant of many separate disbursement acts. 3. A person's disbursement acts are the net outcome of his psychic tensions regarding each item or activity in- volved, together with habits, carryovers of past commit— ments and external impositions, such as taxes. 4. If a homogeneous group of consumers all have an identi- cal likelihood of making a particular purchase, a frequency distribution of their psychic tensions regard- ing the purchase will form a normal probability 34Ruby Turner Norris, Theory of Consumer's Demand (New Haven, Conn.: Yale University Press, 1941)} 22 55 curve. Original work is still being done in the area of indif- ference curves. Little has attempted to construct a theory of choice on the basis of revealed preferences, but without the explicit assumption of complete ordering by preference of all alternatives. He assumed that there are certain situations in which choice is determinate and that preferences thus revealed are sufficient for a theory of choice.) According to his frame— work then, the market situation always gives rise to only one preferred alternative.36 Armstrong was quite critical of this aspect of Little's theory. He maintained that "it is incred- ible that one should be provided with a mechanism so discrimi- nating as to select one out of an infinite class of reactions in as determinate a manner as would be required."37 Some researchers, interested primarily in families, have also attempted to formulate theories of consumption. An early study was done by Kyrk, based on standards of living. A theory of consumption can, it is believed, be built around that outstanding feature of consumption, the existence of standards of living. . . . most neglected field of consumption, the ordering of our lives accord- ing to accepted codes of the necessary and proper. The analysis of our consuming habits and the formula- tion of a theory of choice must take account of the 55Warren Bilkey, "A Psychological Approach to Consumer Behavior Analysis," Journal of Marketing, XVIII (1955), 18-25. 55I. M. D. Little, "A Reformulation of the Theory of Consumer's Behavior," Oxford Economic Papers, I (1949). 57W. K. Armstrong, "A Note on the Theory of Consumer's Behavior," Oxford Economic Papers, II (1950), 121. 23 existence of these standards and the powers they exert over the individual's attitudes and conduct. An ade- quate theory of consumption must explain how these standards came to be. It must note their character- istics and manifestations; it must indicate the process of their formulation, analyze them into their elements, show how they develop and change, and 5 finally, indicate something of their significance. She also indicated her awareness of the broad nature of con- sumption and emphasized that it was actually a study of human behavior, a query into the organized motives and impulses which determine human conduct on the level of consumption. Perhaps Hoyt has been more interested in individual and aggregate family consumption patterns than any economist or home economist in modern times. Taking into consideration both the economic and the psychological nature of man, she has developed a theory of maximizing satisfactions which takes into account four things: (1) increasing the supply of factors-- purchasing power, time and energy, choice-making; (2) knowledge of alternative uses of factors; (5) increasing utility and expanding appreciation, and (4) balancing of choices.39 A certain balance of the factors leads to maximum satisfactions at minimum costs. This principle, however, still leads to many unanswered questions. Under what conditions is one factor more scarce than another? When are alternative uses of some factor preferable over an entirely different factor? How can the balancing of choices be analyzed? This represents 58Hazel Kyrk, A Theor of Consumption (New York: Houghton Mifflin Co., 1925). 59Elizabeth Hoyt, Consumption in our Society (New York: McGrawéHill Book Co., Inc., 1958). 24 a skeletal theoretical framework, with many questions needing answers in order to develop a theoretical body. Several theoretical contributions to consumer behavior have approached the problem from a primarily psychological viewpoint, even more so than that employed by some of those previously mentioned. Simon, for one, has attempted to set forth a consistent body of theory of the rational and nonra- tional aspects of human behavior in a social setting. 0f par- ticular interest are his thoughts on interaction and rational choice. Before discussing group interaction, he first identi- fied the variables of any social group as intensity of inter- action, level of friendship, amount of activity within the group, and amount of activity imposed by the external environ- ment. The values of the first three variables are determined within the group, while the final one is independent. By use of several mathematical equations, he discovered that an in- crease of the independent variable (that is, activities imposed from without the group) tends to increase group activity, friendliness, and interaction. In regard to rationality, he attempted to replace the complete global rationality of economic man with a kind of rational behavior compatible with access to information and computational capacities that are actually possessed by humans. His model of rational behavior initially requires these ele- ments: 1. Set of behavior alternatives. 2. Subset of behavior alternatives which the organism con- siders or perceives. 25 5. Possible future state of affairs or outcomes of choices. 4. "Pay-off" function representing the "value" or "utility" placed by the organism upon each of the possible outcomes of choice. 5. Information as to which outcome will occur if a par- ticular behavior alternative is chosen. 6. Information as to the probability that a particular outcome will ensue if a particular behavior alterna- tive is chosen. These requirements are then modified to correspond to observed behavior processes and to simplify computations in the making of choices. For the "economic man" then, Simon has substituted an organism of limited knowledge and ability.40 A recent conference held at the University of Michigan dealt with "models of household decision-making." They made it clear that their definition of model-~"a theory of how some unit of behavior operates, stated in a form that will generate quantitative predictions and permit itself to be operationally “1 It did, however, reflect the tested"--was not a rigid one. objectives of the conference. Motivation and interaction were two factors considered by several of the participants. Morgan, an economist, pointed out that prior to working out a theory of how family members interact to make decisions, it is necessary to go back and dis- cover what motivates each individual to act. He then proceeded to construct a model for individual preference for an alterna- tive, which takes into account physical and social-psychological 4OHerbert Simon, Models of Man (New York: 'John Wiley & Sons, Inc., 1957). 41Nelson Foote (ed.), Household Decision-Making (New York: New York University Press, 196I), p.44. 26 needs, as determined by one's life history as well as the in- centive values of the possible outcome of the alternative for each need and expectations as to the outcome, as determined by the current situation. Together, these determine the satis- faction from that particular alternative. Similar models would, of course, be formulated for each alternative. Once the preference of each family member has been determined, it would be possible to determine each individual's contribution to a family decision. This could be done by deter- mining the expected satisfaction the individual could derive by attempting to dominate the family and his ability to exert power within the family, together with other minor variables. Once determined, this would show the strength of the attempts 42 This model of an individual to influence a family choice. then focuses primarily on the family decision-making unit, first as individuals, and then as a group. Kenkel, a sociologist, also concentrated his model on the interaction process within the family. In order to under- stand family interaction, three groups of concepts were found to be useful: components of interaction, antecedents of inter- action, and finally the consequences of the interaction. The components of interaction he classified as task behavior and social-emotional behavior, while the antecedents considered were class and status variations, ethnic variations, changing 42James Morgan, "Household Decision-Making," Household Decision-Making, ed. Nelson Foote (New York: New York Univer- Sity Press, 1961), pp. 81—102. 27 of the American family, family of orientation, peer group influence, absence of presence of children, labor force status of the wife, and family stability. These antecedents act to alter, counteract, or reinforce prior cultural and subcultural influences on decision-making roles, and together with inter- action components act to bring on the results of family inter- action.43 Hill centered his interest on a broad, long-range view of consumption. Using a family development approach, which incorporated most relevant concepts from all disciplines, he attempted to account for the success or failure of families in structuring and controlling long-run consumption and asset accumulation. Effectiveness of long-range planning can best be determined, according to his model, by the interaction of the following variables: social placement-situational categories; general value orientations; family goals; policies and life styles; family organization and structure; family action poten— tials; career patterns; planning effectiveness, and accumula— tion of family assets. Together then, these will determine the lifetime consumption pattern of a family.l4L4 Komarovsky took a somewhat different view of the prob- 1em and concentrated primarily on the effects of one variable-- 43Uilliam Kenkel, "Family Interaction in Decision- Making on Spending," Household Decision-Making, ed. Nelson Foote (New York: New York University Press,I961), pp. 140-66. 44Reuben Hill, "Patterns of Decision-Making and Accumu- lation of Family Assets," Household Decision-Making, ed. Nelson Foote (New York: New York University Press, 1961), PP. 57-80. 28 social class. Developing several hypotheses based on psycho- logical characteristics shared by a social group because of similar experiences, she emphasized how communication is af- fected either by providing alternative channels for it or by presenting barriers. On the basis of these hypothese, she generalized that expenditures among different classes are curvi- linear; the wife has greater influence in lower socio-economic classes, and there is a higher rate of involvement regarding financial decisions among younger couples.45 In an earlier publication, Clark attempted to summarize the different variables which interact to influence actual decisions. These include personality variables (including the decision-making characteristics of an individual), perceptions of the situation, and situational variables. The latter group takes into account both incentives and constraints (economic, social, legal, as well as those determined by past decisions and decisions of others). These variables together produce a generalization of previous experiences on one hand and a pat- tern of constraints on the other. Depending on the relative strength of each, a decision is made.46 This framework applies only to the individual and in many respects is quite similar to Bilkey's vector analysis. 45Mirra Komarovsky, "Class Differences in Family Decision-Making on Expenditures," Household Decision-Making, ed. Nelson Foote (New York: New York University Press, 1961) PP. 255-65. 46Lincoln Clark (ed.), Consumer Behavior: Research and Consumer Reactions (New York: Harper & Bros., 1958). 29 A recent consumer marketing bulletin presents a rather concise summary of the main streams of thought in the area of consumption economics. In addition, it strives to develop an adequate, realistic picture of decision-making. To do this, the authors felt it was necessary to examine the entire expendi- ture pattern, not only a segment of it. They assumed individual decision-making to be a product of physical needs, social needs, values and attitudes, situational forces, and risks and uncer- tainty. Since the family unit was their chief concern, the effects of interaction were also considered. The following factors were chosen as the most influential interaction com- ponents: individual's desire for a specific alternative; indi- vidual's concern for other family members; and, his interest and ability in exerting influenceft7 This study typifies the recent upsurge in concern with the "whole man." All variables influencing behavior are being examined, and though the results may not always be perfectly accurate, they are monaapt to be, at least, realistic. 1 Despite this prevailing influence, valuable studies concentrating on specific aspects of consumption are still being done. Fisk has been interested in seeking an explanation of spending for leisure goods. Whereas he sees economic theory as serviceable for explaining empirical variations in spending, 47Joseph Gartner, Lee Kolmer, and Ethel Jones, Consumer Decision-Making, Consumer Marketing Bulletin (Ames, Iowa: Iowa State University, November, 1960). 50 he is more concerned with reasons for changes in taste-~"why, within income classes, do consumers spend different amounts per capita when prices and incomes are tolerably conStant?"48 He feels that there exists an "education for leisure spending," and proposed a two-pronged explanation for leisure-goods spend- ing: there is a hierarchy of goods typically purchased at each income level, regardless of family size, type, or age; and, marketing characteristics of leisure-goods can be roughly identified by ranking each item according to the income elas- ticity of demand.49 Attempts are also being made to determine the spending capacity of an individual family. Semon has attempted to de- fine discretionary income, concluding that "in a sense, a family's own financial ethic largely determines its discre- tionary ethic at any given time."50 It was his contention that savings frequently compete for and often preempt a large share of discretionary income, and that although discretionary income may be viewed as what remains after necessities have been pur- chased, the problem of defining a necessity still remains. Theoretical studies in consumer behavior deal with the "whole man" or with specific aspects of economic activity, the jpredominant present emphasis being on the "whole man." Many of ‘the studies have expressed lack of confidence in marginal —~ 48George Fisk, "Toward a Theory of Leisure-Spending Behavior," Journal of Marketing, XXIV (1959—1960), 51. 491bid.. PP. 51-57. 50Thomas Semon, "Family Income and Spending Capacity," Journal of Marketin , XXVI (1962), 26. 51 utility analysis. Even some of those which still retain it do so grudgingly. However, no comparable conceptual structure has been developed to replace it. Empirical Studies of Consumer Behavior The most common approach to the study of consumers and consumption, through the years, has been through family budgets and expenditures. Zimmerman51 indicated that the first sys- tematic profile of the economic standard of living in western countries was presented in a comprehensive summary of England, France, and Holland for 1688 and 1695. This was done by Gregory King. In the 1790's, two studies of workingman's budgets were made in England. One by a clergyman, Davies, gave a detailed account of 127 budgets. The second, by Eden, was a study of the history of the poor and of poor laws. Though neither researcher summarized his data, they were, nevertheless, impor- tant historical documents. The foundation of the modern school of consumer studies, especially of family units, was laid by Ducpetiaux, LePlay, and Engle. The first of this group to publish was Ducpetiaux who, in 1855, secured information about 155 Belgian families, whom he divided into three social classes. Already interest was beginning to be shown in the sociological variables affecting expenditures. LePlay began his work in 1829, when he became interested in studying social conditions through the use of 51Zimmerman, op. cit. 52 family budgets. His greatest contributions were his method of research and his comprehensive analysis of social and economic phases of the standard of living. Engel, the last of the group, was both a student of LePlay and a follower of Ducpetiaux. His main interest was the correlation of budget distribution with the abstract concept of well-being, and he is famous for his statistical analyses of budgets. By the 1870's, budget studies began to take on the characterisitics of a well established area of work and both increased in quantity and improved in quality. It was not, however, until the 1950's that income itself came to be analyzed systematically within economic theory. Stigler advanced two possible explanations for this: the widespread belief that income does not fluctuate much in the short-run, and the exist— ence of a set of problems, such as effects of monopoly, tariffs, and the like, in which income was not an important variable.52 Since then, however, many studies of income receipts and expenditures have been made. These include aggregate 53 54 studies such as those by Ferber and Juster and case studies 52George Stigler, "The Early History of Empirical Studies of Consumer Behavior," Journal of Political Economy, LXII (1954). 102. - 53Robert Ferber, A Stud of A re ate Consumption Functions (New York: National Eureau of Economic Research, 1 5 . 54Francis Juster, Consumer Expectations. Plans and Purchases (New York: National Bureau of Economic Research, 55 55 56 of families, such as those by Olivo and Deacon. Economists also have been concerned with attempts to measure utility experimentally. Most of these studies have taken form of a series of games of chance. They follow a fairly similar pattern. Subjects participate in a game with oppor- tunities to take or refuse certain gambles or risks entailing the use of money; from their behavior, utility curves are con— structed for each individual. It is hoped that by use of these curves, an individual's behavior toward later, more complicated risks could be predicted. It is still questionable, however, whether similar types of experiments would produce meaningful results in regard to specific commodities.57 Several economic studies have emphasized the importance of expectations in regard to spending. Van Syckle's study showed that expected spendable income in terms of real purchas- ing power was an important variable affecting consumer spending plans. Families were inclined to base future spending on the 58 outlook for the family's relative income situation. 55Virginia Britton Olivo, "Case Studies of the Economic Experience of Selected Families During Their Life Span" (Ph.D. thesis, University of Chicago, 1950). 56Ruth Deacon, "A Study of the Expenditures of Nine Families Over a Period of Years" (Ph.D. thesis, Cornell Univer- sity, 1955). 57Frederick Mosteller and Philip Nagee, "An Experimental Measurement of Utility," Journal of Political Economy, LIX (1951). 58Calla Van Syckle, "Economic Expectations and Spending Plans of Consumers," The Review of Economics and Statistics, XXXVI (1954), 451-55. 54 A study by Krugman introduced psychology into the learning of consumer preference. An attempt was made to cor- relate personality types with the purchase of convertibles, compacts, or standard automobiles. The Thurstone Temperament Schedule, which assesses traits relatively permanent for a per- son, was used to measure personality. The findings indicated that owners of convertibles displayed distinctly different characteristics than did the others in the sample. These men were especially more active, vigorous, impulsive, dominant, and sociable.59 This study points to an area where further work may be pertinent, that is, the analysis of the effect of per- sonality on various purchases. Studies of the Self The concept of self was widely used in discussing human behavior before the turn of this century. As behavioristic psychology rose to importance, the concept of self came to be viewed as too mystical to be of any value in scientific study. It was not until the book, Personality: A Psychological Inter- pretation, by Allport,6O was published in 1957, that the self once again became a respected concept. It is difficult to present any one position regarding self on which all psychOlogists agree. Stagner, in attempting to identify predominant positibns, indicated that no consensus 59Herbert Krugman, "The Learning of Consumer Preference," Journal of Marketing, XXVI (1962), 51—40. 60Gordon Allport, Personality: A PSychological Inter— pretation (New York: Henry Holt ECO., 1957). 35 exists.61 Some psychologists, such as Dollard and Miller, com- pletely reject the concept of self. Freud relied on the concept of ego, which related to a portion of self. Adler, a student of Freud, developed a theory of the self as a highly person— alized subjective system, with a characteristic "life style" which the self actively sought to enhance. Social psycholo- gists, such as Cooley and Mead, have stressed a "looking-glass" theory of self, which identifies self with self-image. (In this theory, self refers simply to "being," while self-image reflects opinions others hold of the individual.) Studies of the self and self-image have centered on a body-image of the self, or a view of the self in a social con— text. It is assumed that the self-image is first a body image. The child must first identify parts of the body as belonging to and being part of him. A series of studies by Fisher and Cleveland,62’6§ have attempted to identify the body image. Although their concern is essentially physiological, their find- ings may be applicable to personality analysis. The studies indicated that many people perceive their body as surrounded by a hard, protective armor; others see it as soft and open. 61Ross Stagner, Psychology of Personality (New York: McGraw Hill Book Co., Inc., 1961), p. 185. 62Seymour Fisher and Sidney Cleveland, "The Role of Body Images in Psychosomatic Symptom Choice," Psychological Mono- ra hs, LXIX (1955). 63Seymour Fisher and Sidney Cleveland, "Body Image Boundaries and Style of Life," Journal of Abnormal and Social Ps cholo , L11 (1956), 575-79. 56 Stagner suggested that those having the "armored" body image may also behave in a hard-boiled, unsentimental fashion, and therefore think of themselves in a similar way.64 Most studies related to self and self—image view this concept from the social aspect. Influences of the family, reference groups and inner aspirations all play a role in the shaping of self. A study by Jourard and Remy65 demonstrated that a child's concept is affected by his perception of his parents' evaluation of him. His interpretations of these appraisals then become incorporated into his self-image. Stud- 66 ies by Manis and Mannheim67 pointed to the definite effect that desired reference groups had on the self-image. The interactionist view of development of self was pre— 68 sented in the early part of this century by Cooley and most strongly advocated by Mead.69 Mead saw all social acts as 64Stagner, o . cit., p. 187. 65Sidney Jourard and Richard Remy, "Perceived Parental Attitudes, the Self, and Security," Journal of Consulting Psychology, XIX (1955), 564-66. 66Melvin Manis, "Social Interaction and the Self Con- cept, " Journal of Abnormal and Social Psychology, LI (1955), 562-70 1 67Betty Mannheim, Influence of Reference Groups and ,Membership Groups on the Self—Image (Urbana, 111. Group Effectiveness Research Laboratory, 1957). 68C. H. Cooley, Human Nature and the Social Order (New York: Charles Scribner's, 1902). 69G. H. Mead, Mind. Self and Society (Chicago: Univer- sity of Chicago Press, 1954). 57 dynamic wholes, not isolated bits of behavior. Sherif believes that the concept of self is developing from research in child development, anthropology, and ego- involvement experiments.7O Studies by Ausubel71 and Kuhlen,72 among others, indicated that the self is neither innately given nor is it finally structured in early childhood; significant changes occur in adolescence. Changes may also occur in later life when individuals encounter conflict situations. Many psychologists, including Murphy73 and Snygg and Coombs,74 now believe that psychology of human motivation must include a concept of self. It appears evident to them that the self affects an individual's selectivity and goal-directedness. In much literature, the terms ego and self are dis— cussed together. They may be considered as synonymous or as related in varying degrees. Sanford noted that contemporary writing distinguishes two conceptions: a group of processes (personality variables) usually called ego functions and a con- tent of awareness referred to as the self.75 The similarity . 70Muzafer Sherif, "Social Psychology: Problems and Trends," Psychology: A Study of a Scienceg Vol. 6, ed. S. Koch (New York: c raw- 1 ook 0., nc., l 5 . 71D. P. Ausubel, Theory and Problems of Adolescent Development (New York: Grune & Stratton, 1954). 72R. G. Kuhlen, The Psychology of Adolescent Development (New York: Harper & Bros., 1951). 73G. Murphy Personalit : A Biosocial Approach to Ori— gins and Structure New York: Harper & Bros., 1947). 74D. Snygg and A. Coombs, Individual Behavior: A New Frame of Reference (New York: Harper & Bros., 1959). 75Nevitt Sanford, "Personality: Its Place in Psychol- ogy," Ps cholo : A Stu%y’of a Science, Vol.p5, ed. S. Koch (New YorE: McGraw-Hillw ook Co.,‘Inc., 1965), p. 508. 58 between these two concepts is emphasized by Sanford: In the classical psychoanalytic view the ego is the part of the personality that is closest to consciousness and in closest touch with the external world. Some of its major functions, such as intending and decision-making, are well calculated to give the individual the impres— sion that his self is determining what he will do. More than this, processes that are not of the ego, in the psychoanalytic view (for example, primitive im- pulses or readinesses to respond automatically to threats of punishment) are likely to be excluded by the individual from his conception of himself. This cer- tainly argues for considerable overlap between conscious ego processes and the self of awareness. One of the theoretical problems regarding ego and self has to do with the question of how many of the functions some- times attributed to the ego might more properly be attributed to the self. Generally, psychologists who emphasize that which are called "higher things" attach more importance to the self. These include such people as Maslow and Rogers. Today's writing about self is holistically oriented. The self is studied as a whole, whose parts are interrelated, and as an entity which can be empirically analyzed. Lecky, one of the early contributors to self theory, was an advocate of holism: The point is that all of an individual's ideas are organized into a single system, whose preservation is essential. In order to be immediately assimilated the idea found as the result of a new experience must be felt to be consistent with the ideas already present in the system. . . . The nucleus of the system, around which the rest of the system revolve? is the individ- ual's idea or conception of himself. 7 76$anford, op. cit., pp. 508-509. 77P. Lecky, Self-Consistenc (New York: Island Press Co-operative, Inc., I935). 59 Psychologists such as Rogers and Snygg and Coombs follow Lecky's tradition. Recent years have seen a growth of research stemming from this client-centered school of psychotherapy. Rudikoffl78 studied the changes in self-concept, while Raimy79 analyzed the references that were made to the self in an actual clinical situation. Brownfain80 measured the stability of the self-image. He did this by asking subjects to rank themselves on 25 traits: first, "as you really are"; second, "the highest you think you are"; third, "the lowest you think you are"; and fourth, "as others see you." He found the greatest differences to be related with emotional disturbances. In his theory of self, Rogers also identifies a potential or ideal-self: the "81 "fully-functioning person. Many psychologists identify this potential identity, such as Adler's "creative self,"82 Rank's 78E. C. Rudikopp, " A Comparative Study of the Changes in the Concepts of the Self, the Ordinary Person, and the Ideal in Eight Cases," Ps chotherapy and Personality Changp, eds. C. R. Rogers and R. F. Dymond (Chicago: University of Chicago Press, 1954). 79V. C. Raimy, "Self-Reference in Counseli Inter- views," Journal of Consulting Psychology, XII (1948), 155-65. 80J. J. Brownfain, "Stability of the Self Concept as a Dimension of Personalit ," Journal of Abnormal and Social Psychology, XLVII (1952), 597-606. 810. R. Rogers, " Theory of Therapy, Personality, and Interpersonal Relationships, as Developed in the Client- Centered Framework," Psychology: A Study of a ScienceL Vol. 5, ed. S. Koch (New York: McGraw—Hill Book Co., Inc., 1959). 82A. Adler, Social Interest (London: Faber, 1958). 4O "true self,"85 and Maslow's "actualized self."8i+ As was indicated earlier, there exists much emphasis on the possibility of empirical study of the self. Personality inventories and self-rating devices provide some data on self- image. However, other more inclusive instruments are being devised. In a study of personality, Cattell used a profile method as an approach to self-image.85 Use of this method involves plotting a profile to indicate an individual's com- parative standing on a number of common traits. This method has been used sparingly, thus far. Various projective methods have been utilized to study the self. Friedman used TAT stories in a study of similarity between real and projected self-images of normal individuals, neurotics, and schizophrenics.86 Another example of the use of projective methods can be seen in a study by Wolff.87 Subjects judged personality traits by judging recorded voices and mirror images of handwriting. Without their knowledge, their own 850. Rank, Will Therapy, Truth and Reality (New York: 841. H. Maslow, "Self-Actualizing People," The Self, ed. C. E. Moustakas (New York: Harper & Bros., 1956). 85Raymond Cattell, Personality: A Systematic Theoreti- cal and Factual Study (New York: McGraw-Hill Book Co., Inc., 1950). 86Ira Friedman, "Phenomenal, Ideal and Projected Con- ceptions of Self," Journal of Abnormal and Social Psychology, LI (1955). 611-15. 87Werner Wolff, The E ression of Personality: Experi- mental Depth Psychology ew ork: Harper & Bros., 1945). 41 voices and handwriting were included. In this circumstance, he found that individuals tended grossly to exaggerate their good points. A method which has been gaining popularity is the Q- sort. It attempts to get a total portrait of the individual. Basically, this technique requires a person to sort a set of statements to indicate how well they describe him. The method is quite flexible and can be used for studying a variety of problems. Nunnally used various Q-sorts in a case study of self-concept.88 The literature indicates an increasing emphasis on the self, particularly on the search for more refined methods of analyzing this concept. Studies of Small Groupp Most studies in the behavioral sciences, which are relevant to consumer behavior, have been in the area of small group research. Sociologists have been especially active in studying roles, interaction, and communication. Herbst analyzed the entire behavior field of the family hypothesizing that it could be regarded as a dynamic whole hav- ing interdependent parts. This family field he defined in terms of t0pologica1 relationships between various activity regions, these being determined by activity relationship, power relationship, and degree of associated tension. The results of 88J. C. Nunnally, "An Investigation of Some Propositions of Self-Conception: The Case of Miss Sun," Journal of Abnormal and Social Ps cholo , L (1955), 87-92. 42 his study showed the family field to be bi-polar in terms of sex role activities--that is, activities were quite definitely sexually differentiated.89 Bales and Strodtbeck have shown particular concern with group decision-making. They hypothesized, in one such study, that the process of group decision-making tends to move through time from a relative emphasis on problems of orientation, to problems of evaluation, and subsequently to problems of con- trol and that concurrent with these transitions, the relative frequencies of negative, as well as positive, actions tend to increase. A study of 22 cases showed a tendency for this to be true. They also suggested that parts of the process of inter- action itself tends to affect other parts in such a way that at the time of any given act, the acts which have gone before or are yet to come, constitute a set of internal conditions which operate, in addition to external conditions, to affect group decision-making.90 Strodtbeck's interest in small groups has also extended to concern with the family as a group and especially husband- wife interaction. In an experiment with 48 families, he attempted to test the relevancy of propositions concerning ad hoc groups for use 89R. G. Herbst, "The Measurement of Family Relation— ships," Human Relations, V (1952), 5-55. 90B. T. Bales and F. Strodtbeck, "Phases in Group Problem-Solving," Journal of Abnormal and Social Psychology, XLVI (1951). 45 with father, mother, and adolescent son subject-groups. He found that in families, like any other groups, decision-making power is associated with high participation. When the two most active members present a solid front, the stability of their participation is high; however, when the two most active members are in conflict, the stability does not become as low as is the case for ad hoc groups.91 Strodtbeck's study of husband-wife interaction was pri- marily an attempt to validate the revealed difference tech- nique. The essence of this method consists of requesting subjects to reconcile any differences in interpretations which may have occurred. Three different types of communities were studied and it was shown that the disposition of reconciled decisions was related, both to power elements in the larger social and cultural organization, as well as to the amount of participation in small group situations.92 The analysis of husband and wife roles has concerned several researchers. Sharp studied some economic decisions of families and found little evidence that one spouse made all the decisions. However, considerable variation in relative influ- ence of either spouse was found among different types of eco- 95 nomic decisions. 91Fred Strodtbeck, "The Family as a Three-Person Group," American Sociological Review, XIX (1954), 25—29. 92Fred Strodtbeck, "Husband-Wife Interaction Over Re- vealed Differences," American Sociolo ical Review, XVI (1951), 95Harry Sharp and Paul Mott, "Consumer Decisions in the Metropolitan Family," Journal of Marketing, XXI (1956), 140-56. 44 Kenkel too studied couples in order to observe their decision-making by recording actions in terms of Bales' proce- dure of interaction process analysis. Twenty-five undergrad- uate couples were observed while determining how to spend a gift of 3500. The focus of interest was on the relative amount of influence exerted by husband and wife. Influence here was considered to be the degree to which a person had his own wishes reflected in the decision of the group. The results indicated that the traditional conception of spousal roles ran throughout the pattern--husbands were expected to have more influence, and did, although not as much as was expected by wives. Most interesting perhaps was the fact that the degree of influence was related to performance of traditional roles; therefore, the wife who did less talking and contributed less ideas might actually exert greater influence than her more active counter- part, that is, the decision is more apt to reflect her prefer- ences.94 It is obvious that in any group decision, communication among members is essential. Festinger and Thibaut looked at the effects of group pressures toward uniformity on communica- tion and the influence process that takes place within a group. Sixty-one groups of undergraduates ranging in membership from six to 14 were given a problem to solve. At a given moment, each showed a card with his opinion; more information was then given and opinions again recorded. At that point, discussion 94William Kenkel, "Influence Differentiation in Family- Decision-Making," Sociology and Social Research, XLII (1957), 18-25. 45 was opened to the entire group, but Opinions could only be given by writing notes. When anyone would change his mind, he then indicated this by changing the number on the card in front of him. Various degrees of pressure for both homogeneity and heterogeneity were employed. Results strongly supported the following three hypotheses: 1. Where there is a range of opinion in a group, com- munication tends to be directed towards those members whose opinions are at the extremes of the range. 2. The greaterthe pressure toward uniformity and the greaterthe perception of homogeneous group-composition the greater is the actual change toward uniformity which takes place. 5. The greater the perception of homogeneous group- composition and the greater the pressure toward uni- formity the greater is 958 tendency to communicate to these extreme opinions. Considerable study has been done comparing the effec— tiveness of a group decision as compared to an individual deci- sion. One study indicated the "clear superiority" of a group solution was due solely to the "higher probability of a better solution from five (or whatever number of members are in the group) than from one."96 Another study was more concerned with the differences between group decisions based on interaction and those produced through statistical pooling of individual judgments. The results, based on a sample of 27 groups of 95Leon Festinger and John Thibaut, "Interpersonal Com- munication in Small Groups," Journal of Abnormal and Social Psychology, XLVI (1951), 92-99. 96Jacob Tuckman and Irving Lorge, "Individual Ability as a Determinant of Group Superiority," Human Relations, XV (1962), 45-510 46 198 subjects, with 27-50 hours of in-group activity, indicated that interaction, per se, contributes something to group per- formance over and above the effects of simply bringing several individual judgments together.97 These two studies appear to be somewhat in conflict, the latter placing much greater empha- sis on the value of interaction, itself. Group leadership also has been an area of much study. Dubna investigated the interaction of fast and slow decision- time measures of leaders with task conditions calling for speed or quality of group problem-solving performance. He hypothe- sized that groups under conditions and instructions presumed to be congruent with decision—time characteristics of leaders would be most effective. Using 64 four-men groups, he found small evidence indicative of the importance of the leader's personality, since slowness in coming to a decision is a behav- ioral correlate of an obsessive personality syndrome. Regard- less of the leader's personality, however, all groups functioned more effectively without time pressure. An interesting side- light of this study was the indication that group satisfaction with their performance and efficiency did not coincide with their effectiveness in problem-solving.98 As is indicated by this brief survey, small group 97Ernest Jall, Jane Mouton, Robert Blake, "Group Problem-Solving Effectiveness under Conditions of Pooling versus Interaction," Journal of Social Psychology, LIX (1965), 147-57. 98Peter Dubna, "Decision-Time Characteristics of Leaders and Group Problem-Solving Behavior," Journal of Social Psychol- pgy, LIX (1965), 259-82. 47 research covers many areas, and is not necessarily and directly related to consumer behavior. However, many of the findings concerned with group decisions can be relevant when dealing specifically with group, or family, economic decisions. Summapy The survey of literature indicated the type of work which has been, and is being done, in areas relevant to con- sumer behavior, and more specifically to family economic behav- ior. The need for cross-disciplinary research appears to be evident. This has been realized by social scientists for years, and is now gaining momentum. Certainly empirical surveys and fragmentary theoretical analyses in various fields can provide more complete insights into consumer behavior if integrated than simply if relegated to isolated positions. The present interest in this area and the ever—growing body of knowledge point to an opportune time for interdisciplinary work. CHAPTER III SELECTION OF THEORETICAL CONSTRUCTS This study approached the problem of family economic behavior from the economic and the psychological/social psycho- logical points of view. However, it is primarily a psycholog- ical/social psychological approach to an economic problem. The theoretical constructs which were chosen will be discussed and briefly analyzed in this chapter. General Procedure Since this study involved more than one discipline, three early problems were encountered. What disciplines should be chosen? Which theoretical constructs should be analyzed? What type of integration would be most suitable? Choice of disciplines was most easily solved. Prior to the study, it was assumed that economic consumption theory would be relied upon as a starting point for analysis. It is most frequently utilized in discussing family economic behav- ior and its relevancy here is well-recognized; therefore, it presented an inherently logical choice. Two other disciplines were chosen to supplement eco- nomics. Psychology is most concerned with behavior of the individual; it is here where most studies related to motivation and rational or nonrational behavior are found. Postulates of 48 49 economic theory which most frequently are attacked are those regarding human behavior and are based on a hedonistic psychol— ogy. Social psychology is actually a branch of psychology con- cerned primarily with "problems having both an individual and a social aspect."1 Small group study is frequently classified as social psychological research. Economics, psychology, and social psychology, then, were chosen as disciplines for study. There has been much recent discussion and writing in regard to the links among 2 Much of this was reviewed in the survey of these disciplines. literature. Katona has referred frequently to the idea that research in economic psychology represents one of the major tasks for future years. In his estimation, theories of learn- ing, habit formation, problem-solving, motivation, and groups represent the social psychological areas most fruitful for analysis of economic behavior.3 Boulding has emphasized the necessity of developing an explanation of the way a person changes through time. In other words, the question, "Why does an individual or a family consume the kinds of goods they do?" must be answered.4 Tastes and preferences can no longer be lJames Drever, A Dictionar of Ps cholo (New York: Penguin Reference Books, 1952). 2 See particularly articles by George Katona, James Tobin and F. Trenery Dolbear, Jrs., Herbert Simon, and Kenneth Arrow in Ps cholo : A Stud of a Science Vol. 6, ed. Sigmund Koch (New York: McGraw-Hill Book Co., Inc., 1965), pp. 659-752. 5George Katona, "The Function of Survey Research in Economics," Common Frontiers of:phe Social Sciences, ed. Mirra Komarovsky (Glencoe, 111.: The Free Press, 1956), p. 574. 4Kenneth Boulding, A Reconstruction of Economics (New York: John Wiley & Sons, Inc., 1950), p. 146. 50 held constant. Here, psychology and social psychology may hold the keys to relevant concepts and principles regarding economic behavior. The decisions regarding choice of specific theoretical constructs and method of integration were interrelated. It was initially assumed that economic consumption theory would provide a basis for analysis; the assumption of rationality would be replaced by a psychological theory of motivation and a theory related to small groups would be added. However, further investigation in psychology revealed that there was little in the way of a theoretical structure,which met the specified criteria, presently available in respect to the con- cept of motivation. More readily available were theories of personality which sought to explain behavioral differences in more general terms, including within them, reference to moti- vation. Analysis of theoretical constructs also indicated that frameworks from several disciplines could not be completely intermeshed. Komarovsky indicated this when she discussed several methods of interdisciplinary cooperation: 1. Empirical data accumulated in one field could be illu- minated by concepts existing in another. 2. Two disciplines bring their respective theoretical frameworks to the investigation of the same empirical problem. 5. Concepts and hypotheses developed in one field open new problems and stimulate research in another. 4. Procedures used by various sciences are clarified. 5. A discipline may adopt an entirely new method used in 51 another area.5 The first three methods were particularly relevant in this study. Instead of attempting to completely integrate three areas, a psychological/social psychological view was taken of an essentially economic problem--family economic behavior. Economic consumption theory was taken as given, with the exception of the relaxation of the assumption of complete rationality. Theories of personality and of the group then acted to supplement the economic theory. The result of this type of integration could be stated thusly: given an explana- tion of some of the pertinent effects of personality and of the group (in this case, the family) on behavior, economic theory can then provide an explanation for the economic aspects of human behavior. The resultant theoretical construct embraced both economic and psychological postulates, but was couched primarily in psychological terms, since it represented, in effect, an application of psychological principles to economic behavior. Basically, then, this study searched for relationships in economics and in psychology and social psychology. These took the form of theoretical constructs from these areas. Basic postulates were analyzed in an attempt to discover areas of connection, interdependence, congruity or lack of it, and reinforcement or lack of it; this resulted in a set of postu- lates and two sets of principles which could be applied to 5Mirra Komarovsky (ed.), Common Frontiers of the Social Sciences (Glencoe, 111.: The Free Press, 1957), PP. 22-29. 52 family economic behavior. Hypotheses were then derived from defined concepts, the new set of postulates,_and the princi- ples--those of indifference theory, as given, and an integrated psychological set. It should be indicated here that the resultant theo- retical construct is not of a purely deductive nature. The hypotheses are not formally implied by the stated postulates and principles. Rather, it represents a probabilistic explana- tion; the postulates and principles make the derived hypotheses probable.6 The entire methodology of this study is based on the fact that research consists of definite and different levels, each requiring different methodologies. Northrop outlines three levels--analysis of the problem, natural history stage of inquiry or empirical testing, and formulation of the theory.7 This study is placed in the first level, that of analyzing the problem or "tracing it back to its (possible) roots."8 This means translating the problem into more specific questions which can be answered by the determination of certain facts which have been indicated by the analysis. This results in tentative statements or hypotheses. At this point, the state of the hypotheses is quite uncertain. 6Ernest Nagel, The Structure of Science (New York: Harcourt, Brace & World, 1961), pp. 22-25, 551-65. 7P. S. C. Northrop, The Logic of the Sciences and the the Humanities (New York: The MacMillan Co., 1947). 8Ibid., p. 23. 55 . . . tentative explanations are suggested to us by something in the subject matter and by our previous knowledge. When they are formulated as propositions, they are called hypotheses. The function of a hypoth- esis is to direct our search for order among facts. The suggestions formulated in the hypotheses may be solutions to the problem. Whether they are, is the task of inquiry. According to this view of research, the next step is to test these hypotheses (natural history stage of inquiry). This takes into account observation of the facts designated in the analysis of the problem; the expression of these in terms of concepts, and their systematization. This stage of inquiry begins with apprehended fact and ends with described fact. The third level follows and involves construction of a deductively formulated system. Theorems, which define the experiments to be performed, are then deduced. If the experiments give the results called for by the theorems, then the hypotheses are con- firmed. If not, then alternative hypotheses, suggested by the data collected in the previous level of inquiry, are subjected to the same procedure. As was indicated in the discussion of the limitations of this study, there was no certainty that the specific frame- works analyzed were actually the most relevant. Present liter- ature regarding the problem and the inherent relationships between the theories indicated their apparent relevancy. Hickman and Kuhn stated that in this type of scientific inquiry, nothing more could be asked at this stage. A priori speculation cannot predict which areas will be most fruitful; this verdict 9lbid., p. 11. 54 results after lengthy empirical testing of the resultant hypoth- eses.10 Even if hypotheses are refuted, an entire study.is not invalidated, since trial and error (and information obtained when error does occur) is an inherent aspect of scientific method. The elimination of seemingly relevant theoretical con- structs is as important as is the validation of the relevancy of a framework. Analysis of Constructs Economic Indifference Theory There are essentially two approaches to economic con— sumption theory--the classical utility approach and the indif- ference curve approach. Actually both approaches are merely different ways of analyzing the same problem, for the most part. Indifference theory is preferred by economists Who find it unrealistic to attempt to quantify utility. The concept of utility is not denied; however, the necessity for measuring how much satisfaction is derived from the consumption of a particu— lar combination of goods is circumvented. Because utility is difficult to measure precisely, and since this study was not concerned primarily with precise utility measurement, a more-preferred or less-preferred rela- tionship was sufficient for its purposes; the indifference curve approach to consumption then was used in the analysis. The history of the indifference approach to consumption 10C. Addison Hickman and Manford Kuhn, Individuals, Groups and Economic Behavior (New York: The Dryden Press, 1956). 55 is usually traced back to Pareto, whose most complete statement 11 It was Of it was published at the beginning Of this century. here that be substituted an ordinal conception of utility for the hitherto used cardinal concept. By adopting the concept Of indifference curves, he indicated the possibility Of con- structing a theory on the basis Of scales of preference only. Basically, this theory begins with two goods and shows that a number of quantitative combinations Of these goods can be equally desirable to an individual. (This theory focuses on the individual.) Other combinations Of these same goods will result in higher or lower indices of satisfaction. A person's entire system Of preferences, with regard to these two goods, can be shown on an indifference map, which indicates different levels Of satisfaction. This analysis can be extended to in— clude more than two goods. The more goods included, the more difficult it becomes to represent this geometrically; however, it can be done algebraically. Many of Pareto's basic ideas have remained unchanged. The most complete reformulation of the theory was offered by Hicks in 1959, in which he attempted tO complete the Paretian 12 Since then, there has approach to the indifference method. been some work done in regard to various aspects Of the theory, but there has yet to appear any major general restatement. llVilfredo Pareto, Manuale de Economia Politica (Milan: Societa Editrice Libraria, 1906). 12J. R. Hicks, Value and Capital (Oxford: Oxford University Press, 1959). 56 Basic Postulates Prior to listing the principles embodied in indiffer— ence theory, the basic assumptions or postulates upon which the entire approach is built must be realized. There are six such postulates: 1. The fundamental motivation of all economic activity is satisfaction of human wants.13 All economic behavior is viewed as having a sole motive, maximization of satisfaction (or utility). Consumers, then, expend their limited incomes along those lines which pro- vide the greatest satisfaction. This further assumes that con- sumers act rationally. ("Rational" here refers to the adequate or efficient use Of all available means or resources in order to attain the sought after goal--utility maximization.) 2. Commodities are substitutes for one another.14 Most commodities are substitutes to some degree: Aoranges and apples can be classified as close substitutes; hat and coat would seem less close; and meat and swimming lessons represent a rare substitute relationship. Some items, Of course, do not act as substitutes. An example here is left and right shoes; they combine in definite, fixed proportions. It is only where items may be substituted for one another that a 15This assumption can be traced back to Alfred Marshall, Principles of Economics (New York: MacMillan Co., 1891). It is Implicit in all economic consumption theory. 14Willard W. Cochrane and Carolyn Shaw Bell, The Eco- nomics Of Consumption (New York: McGraw4Hill Book Co., Inc., 1956), P. 119. 57 decision problem arises. And it is only where commodities sub- stitute for one another that it is possible to arrive at two different combinations which please the consumer equally well, hence to which he is indifferent. 5. The consumer can tell which combinations he prefers and to which combinations he is indifferent.15 Implied in this assumption is the idea that commodities are highly divisible; this is necessary if the consumer is to formulate specific combinations to which he is indifferent. This assumption is sometimes seen as a limitation of this theory, since it is difficult to work with large, or expensive items which are not highly divisible. The average consumer could find it difficult to make a comparison between the follow- ing combinations: one college education and two houses or two college educations and one house.16 (However, this problem may be partially remedied by changing the exact nature Of a spe— cific good. The comparison between a college education for a daughter at a local institution and a large, expensive house for the family or a college education at an exclusive girl's school and a more modest family house may be a more realistic one. Perhaps then the monetary value Of each of these can be translated back into terms Of one education and two houses or two educations and one house.) 4. Allocation of income for maximization of satisfaction depends on the consumer's taste factors and his Opportunity 16 15Ibid. Ibid., p. 141. 58 factors, both of which are fixed.17 The indifference curves indicate what a consumer would like to dO--these reflect taste factors. The line of attain- able combinations shows what the consumer is able tO dO--this reflects Opportunity factors. The consumer then maximizes utility by taking that combination Of goods at Which the line Of attainable combinations is just tangent to an indifference curve. That indifference curve is the highest one which the consumer is able to reach. 5. As X is substituted for Y, the amount of Y one is just willing to give up to get additional units of X becomes pro— gressively smaller, that is, marginal rate of substitution of X for Y eventually decreases.18 In giving up units Of Y When he has a supply Of Y, the : consumer does not require the addition of much X to hold him on the same indifference curve. But as more and more Of Y is given up and only a little remains, he must have increasingly larger amounts Of X to Offset any further decrease in Y. Y is now expensive in terms of X. Given these utility relationships, changes in combinations of X and Y will always be such as to yield indifference curves which are convex to the origin. Without this principle Of diminishing marginal rate Of substitu- tion, there could be no stable equilibrium-~no solution to the problem of the best division Of expenditure between commodities. (In order that equilibrium should be stable when expenditure is distributed among more than two commodities, it is necessary l7Hicks, op. cit., p. 17. . 18Ibid., p. 20. 59 that no possible substitution of equal market values should lead the consumer to a preferred position. This means that not only must there be a diminishing marginal rate Of substitution between each pair of commodities, but also that more compli- cated substitutions, such as, some X for some Y and some Z, must also be ruled out.) 6. It is unnecessary to quantify utility.19 As has been already indicated, this is one of the dif- ferentiating characteristics between classical utility theory and indifference theory. A more- or lessmpreferred relation- ship is used, instead Of relying on an attempt to measure utility precisely. Indifference theory, then, is built upon these six general assumptions or postulates. Principles The principles within the theory refer to more specific aspects of economic behavior; they generally follow from these basic postulates and the definitions of the concepts utilized 2O in the theory. The principles below were takn primarily from Hicks' Value and Capital with some additional clarifications 19This assumption can be traced back to Pareto’s Manuale de Economia Politica. 20Definitions of these concepts are found in Appen- dix B. 60 from Boulding,21 Cochrane and Bell,22 Leftwich,25 and Lerner.24 1. If the consumer's satisfaction is to remain constant when he gives up units of one commodity, the loss must be com- pensated for by additional units Of another commodity. A consumer cannot remain on the same indifference curve unless he gets an additional unit of X every time he gives up some Y. This causes the important parts of indifference curves, with few exceptions, to slope downward and to the right. If an indifference curve were horizontal or vertical, this would mean that the consumer is indifferent between two combinations of goods, both containing the same amount of one product. This would occur only if the consumer were receiving enough of the second product to be saturated with it. Additional amounts would then add nothing to his total satisfaction. 2. When marginal rate of substitution Of X for Y is equal to their rate of exchange in the market (that is, 2 Y for l X), the consumer has reached an equilibrium position. SO long as thd rate of exchange in the market, 2 Y for each unit Of X, exceeds the rate Of substitution at the margin along the indifference curve (for example, 1 Y for l X), the consumer gains by trading X for Y in the market. Thus, the 21Boulding, Op. cit. ZZCochrane and Bell, op. cit. 25Richard Leftwich, The Price S stem and Resource Allo— cation (New York: Holt, RineEarE E WInsEon, I955). 2“Abba Lerner "The Analysis Of Demand," The American Economic Review, LII (1962), 785-97. 61 incentive Of satisfaction maximization drives the consumer toward the equilibrium position, where his marginal rate Of substitution Of X for Y is equal to the rate of exchange in the market. On an indifference map, the best combination of X and Y for a consumer is given by the point where the outlay curve touches the highest indifference curve. A "scale Of living" or "standard of life" line is composed of the locus Of the points Of tangency of the indifference curves and the lines of attain- able combinatiOns; all points on this line represent point of consumer equilibrium. 5. A change in price, which is such that it leaves the consumer on the same indifference level, must result in the new collection Of goods purchased having a higher value in terms Of Old prices than the Old collection of goods had. This is necessarily true since the Old collection of goods was the only collection on that indifference level which was available to the consumer at the old prices. Similarly, the Old collection Of goods must have a higher value in terms Of the new prices than the new collection of goods has. 4. If a group of goods taken together is inferior, not all goods in the group need to be inferior individually; however, at least one must be inferior. Some Of the goods in such a group may be normal, or even superior goods. A smaller total is spent on all Of them together, but more may be spent on some Of them. 5. If a group Of goods is superior, not all of them need to be superior individually; it is possible that, individually, 62 none Of them are superior. Even though more of each good is purchased and more is spent on it, no single one has more than the whole increase of income directed to increased expenditure on itself. 6. With some inferior goods, rise in price may sometimes result in an increase of the quantity of that good purchased. This is due to a decline in the "standard of life." For this to occur, the commodity must not only be an inferior good, but must also play a relatively large part in consumption. At very low income levels, bread indicates one such good. 7. The income effect generally is positive, that is, if real income increases, the quantity Of X purchased will in- crease. Real income may increase directly, or a fall in price Of X may act like a rise in income, thus tending to increase demand. If the proportion of income spent on X is small, it will have only a small influence on demand for X, and will have a small proportionate influence on the demand for any other commodity. 8. The substitution effect is always in favor Of the com- modity experiencing a decline in price. A fall in the price Of X leads to a substitution Of X for Y, and a rise in the price Of X leads to a substitution Of Y for X. 9. Elasticity of demand depends upon the nature and magni- tude of the income effect and the substitution effect. The greater the substitution effect, the greater the 65 elasticity Of demand, and conversely. In regard to the income effect, if it is positive, then it is added to the substitution effect to contribute to an increased elasticity Of demand for the good; if it is negative, the demand elasticity is reduced, since the income effect cancels to some degree the substitution effect. 10. The direct price effect is always negative. If price of a good rises, the quantity Which a consumer will purchase, if it changes, will be in the direction of fewer units Of the good. (The reverse Of this is also true. Occa- sionally, price reductions may establish an expectation Of further reductions. Purchases, then, may drop but it is the expectation of future price reduction that is responsible, not the actual reduction of present price.) 11. Indirect price effect is positive in the case of two commodities. When more than two commodities are involved, the effect depends on the complementarity, anti-complementarity, or competitiveness Of the goods in question. When two commodities are involved, the quantity of one must move in the same direction as the price Of the other, that is, if X becomes relatively cheaper and more X is purchased, this must be accompanied by a decrease in amount of Y if the real level of income is not to go up, and vice versa. As more commodities enter the picture, the workings of the indirect price effect become more complex. 64 Personality Theory Current literature and recent research in human behav- ior have led to a questioning Of the degree Of rationality pres— ent in man's behavior. Perhaps one Of the major difficulties centers on the vagueness of the concept of rationality. If it were defined operationally and therefore became capable of being identified and measured, a clearer view Of economic behavior might be Obtained. This, together with recent psycho— logical findings in the area Of personality and small group behavior, could lead eventually to hypotheses indicative Of actual reasons behind family economic behavior. : (As has been indicated earlier, theories Of personality provide a broad approach tO human behavior. The Obvious con- cept for analysis in this area--motivation--appears to be sur- rounded yet by uncertainty. Work needs tO be done to further isolate and clarify the concept itself, and then to establish some framework of principles. Because of this, the concept of personality, which includes explanations of motivating behavior, was chosen as relevant to this study. Various theoretical constructs are present within the area of personality. Their approaches are quite varied, such as: emphasis on biological determinants (Jung, Murphy); empha- sis on group membership (Fromm, Horney, Lewin); emphasis on ' early developmental experience (Freud, Adler, Murray); emphasis on self-concept (Adler, Sullivan, Cattell, Rogers); or emphasis on nonpurposive behavior (Sheldon, Eysenck, Miller and 65 Dollard).25 All of these frameworks have proponents, as well as critics, within the discipline itself. Actual choice of a theoretical construct was based on several general criteria: 1. Is it available in a relatively organized manner so that basic postulates and principles are not apt to be readily misunderstood? 2. Has it generated onégoing research, so that instruments for identifying and measuring its concepts may be available in the future, if not now available? 5. Is there any apparent basis for integration between it, economic indifference theory, and the chosen theory related to small groups? After studying the various available theoretical con- structs, the self-theory Of Rogers was chosen for further anal- ysis. The theory itself is easily accessible in a well-organized framework. Rogers defineithe concepts he employs and identifies and clarifies the basic postulates and principles of his con- struct. Research has been and is being done regarding the test- ing of hypotheses derived from this framework; considerable methodological research has also been undertaken in an attempt to construct tools for measuring and identifying concepts such as, self, reality, and so on. When analyzed in relation to the other two chosen constructs, Rogers' theory presented several points for apparent integration. Various concepts used both by 25Calvin Hall and Gardner Lindzey, Theories of Person- ality (New York: John Wiley & Sons, Inc., 1957). 66 Rogers and Thelen (whose small group theory was analyzed) were quite similar. Interestingly, Rogers' theory supplemented eco- nomic theory quite well. Statements which appeared to be con- tradictory at firSt melded together upon further analysis, and both frameworks jelled to present a unified picture Of economic behavior. (This will be discussed further in Chapter IV.) Perhaps Rogers' theory appeared to satisfactorily supplement economic theory because it looks at behavior from both the Freudian view (which deals with unconscious behavior) and the Gestalt view (which deals with conscious behavior). What was actually desired was a theoretical framework which took into account a wide spectrum of behavior types. The central concept of Rogers' theory is the self. A number Of personality theorists have made provision for the self in their systematic formulations, but Rogers' is a most fully developed statement of self theory. In addition to the self, there are two other principal concepts in Rogers' theory. These are the organism, which is the total individual, and the phenomenal field, which is the totality of experience. The concepts of need for positive regard, need for self-regard, and conditions Of worth also serve as unifying concepts fer the theory. Perhaps the best summary of Rogers' theory can be given in his own words: This theory is basically phenomenological in character and relies heavily upon the concept of self as an explanatory concept. It pictures the endpoint of per- sonality development as being a basic congruence be- tween the phenomenal field Of experience and the conceptual structure of the self-~a situation which, if achieved, would represent freedom from internal strain and anxiety, and freedom from potential strain; 67' Which would represent the maximum in realistically oriented adaptation; which would mean the establish- ment of an individualized value system having con- siderable identity with the value system Of any other equally well-adjusted member of the human race. It should be indicated here that the results Of this congruence (as listed here) are hypothesized characteristics. Testing must still be done in order to determine the relation- ships which actually do exist. Basic Postulates Both the postulates and principles which constitute the framework Of Rogers' theory were taken from an article in Psychology: A Study of a Science.27 This represents a clari- fication and modification Of the theory as first stated in Client-Centered Therapy, with the inclusion Of principles embodied in theories of therapy, personality, the fully- functioning person, and interpersonal relationships. Principles from the latter three were particularly relevant. The entire theoretical framework is built upon six general postulates: 1. The individual has an inherent tendency toward actual— izing his organism. This assumes that the organism is a purely monistic dynamic system in which one drive suffices to account for all behavior. The personality then unfolds along the lines 26Carl Rogers, Client-Centered Therapy: Its Current Practice Im lications and Theor (Boston: Houghton MIIYIIn, , p. 5 . 27Carl Rogers, "Therapy, Personality and Interpersonal Relationship," Ps cholo : A Stu of a Science Vol. ed. Sigmund Koch (It—‘zY—JZMT'WgL—‘Cew ork: c raw- 111 Book ‘o.,""f'_nc., 1959), pp. 221-40. 68 dictated by the nature of the organism. On the one hand, there is a single motivating force; on the other hand, there is a single goal in life. The organism actualizes itself, becoming more differentiated, more expanded, more autonomous, and more socialized, as it matures. Since there is a forward movement in the life of every person, this basic tendency Of growth-- to actualize and expand oneself-~13 seen to best advantage when an individual is Observed over a long period Of time. It is emphasized that this forward-moving tendency can only operate when the choices are clearly perceived and adequately symbol- ized. A person cannot actualize himself unless he is able to discriminate between progressive and regressive ways of behaving. He has to know before he can choose but when he does know he always chooses to grow rather than to regress. 2. The individual has a need for positive regard. As the awareness of self emerges, the individual devel- ops a need for positive regard. This need is universal in human beings, and in the individual it is pervasive and persist- ent. Whether it is an inherent or learned need is irrelevant to this theory. (However, there is some evidence that it may be learned.)28 Since the satisfaction Of this need is necessar— ily based upon inferences regarding the experiential field of another, it is Often ambiguous. It is also reciprocal, in that when an individual discriminates himself as satisfying another's 288. Standal "The Need for Positive Regard: A Contri- bution to Client-Centered Therapy" (Ph.D. thesis, University of Chicago, 1954). 69 need for positive regard, he necessarily experiences satisfac- tion Of his own need for positive regard. The need for positive regard is so potent that positive regard Of any social other is communicated to the total regard complex which the individual associates with that social other. Consequently, the expres- sion Of positive regard by a significant social other can be- come more compelling than the organismic valuing process, and the individual becomes more adient toward experiences which are Of positive value in actualizing the organism. 5. The individual has a need for positive self-regard. A need for self-regard develops as a learned need developing out Of the association Of self-experiences with the satisfaction or frustration of the need for positive regard. The individual thus comes to experience positive regard or its loss independently Of transactions with any social other. He becomes, in a sense, his own significant social other, and the self-regard experienced in relation to self-experiences is com- municated to the total self—regard complex. 4. The individual possesses capacity to experience in awareness the incongruences between self-concept and totality of his experience. 5. The individual possesses capacity and has the tendency to reorganize his self-concept in such a way as to make it more congruent with the totality of his experience. 6. These capacities and this tendency, When latent, will be released in any interpersonal relationship in which the other person is congruent in the relationship, experiences uncondi- 7O tional positive regard toward, and empathic understanding of the individual, and achieves some communication of these atti- tudes to the individual. These last three postulates are necessary in order to understand Rogers' concept Of the basic nature of man. Principles The following principles relate primarily to the indi— vidual; one, however, relates Rogers' concepts to interpersonal relationships. As with the economic principles, these too follow from the basic postulates and the definitions of the concepts.29 1. A portion of the individual's experience becomes dif- ferentiated and symbolized in an awareness Of being, described as self-experience. 2. Awareness Of being and functioning becomes elaborated through interaction with the environment, particularly that composed Of significant others, into a concept Of self-~a per— ceptual Object in one's experiential field. 5. When a self-experience is avoided (or sought) solely because it is less (or more) worthy Of self-regard, the individ- ual is said to have acquired a condition of worth. This arises when self-experiences Of the individual are discriminated by significant others as being more or less worthy Of positive regard; self-regard then, becomes similarily selective. If an individual experiences only positive regard, 29Definitions of these concepts are found in Appendix C. 71 then no conditions of worth would develop; self-regard would be unconditional. This chain of events is hypothetically pos- sible, though it does not appear to occur in actuality. 4. Because of the need for self-regard, the individual perceives his experience selectively, in terms of the condi- tions of worth which have come to exist in him. ExperienCes whiCh.are in accord with his conditions of worth are perceived and symbolized aCcurately in awareness, while those which run contrary to the conditions of worth are perceived selectively and distortedly as if in accord with the conditions of worth, or arein part or whole denied to aware— ness. Thus from the time of the first selective perception in terms of conditions of worth, the state of inCongruence between self and experience exists to sOme degree. This causes the concept of self to include distorted perceptions which do not accurately represent his experience, and his experience in- cludes elements which are not included in the picture he has of himself. He is no longer a unified whole person. Certain ex- periences tend to threaten the self; in order to maintain self- structure, defense reactions become necessary. Behavior then is regulated at times by the self and at times by those aspects of the organism's experience not included in the self. He is no longer true to his own natural organismic valuing of experi- ence, but for the sake of preserving the positive regard of others has now come to falsify the values he experiences and to perceive them only in terms based upon their value to others. 5. Because of incongruence between self and experience, a 72 similar incongruence arises in the behavior Of the individual. As a result of this, some behaviors are consistent with self-concept and maintain, enhance, and actualize it, while others maintain, enhance, and actualize those aspects Of the experiences Of the organism which are not assimilated into the self-structure. These latter behaviors are either unrecognized as self-experiences or perceived in a distorted or selective fashion in such a way as to be congruent with the self. 6. An experience which is incongruent with the self- structure is subceived as threatening and leads to the estab- lishment Of a process Of defense. This process Of defense leads to rigidity of perception, due to necessity of distorting perceptions; an inaccurate per— ception of reality, due to distortion and omission of data; and,,intensionality. 7. In order for the process of defense to be reversed, there must be a decrease in conditions of worth and an increase in unconditional self-regard. One way Of achieving these conditions is through the communicated unconditional positive regard Of a significant other, which must exist in a context of empathic understanding. When the individual perceives such unconditional positive re- gard, existing conditions of worth are weakened or dissolved and his own unconditional positive self-regard is increased. The process of defense is thus reversed, and experiences cus- tomarily threatening are accurately symbolized into the self- concept. Along with this, the organismic valuing process 75 becomes increasingly the basis Of regulating behavior. 8. When the needs for positive regard and positive self- regard are met, the tendencies toward accurate symbolization of experiences and self-actualization are most fully realized. As this occurs, the individual will become a fully- functioning person. It is hypothesized that he will then pos- sess the following characteristics: a) He will be Open to his experience and exhibit no defensiveness. b) All experiences will be available to awareness. c) All symbolizations will be as accurate as experien- tial data will permit. d) His self-structure will be a fluid gestalt, changing flexibly in the process Of assimilation of new experience. ' e) He will experience himself as the locus Of evalua- tion; therefore, the valuing process will be a con- tinuing organismic one. f) He will have no conditions of worth and will experience unconditional self—regard. g) He will meet each situation with behavior which is a unique, creative adaptation to the newness Of that moment. h) He will find his organismic valuing a trustworthy guide to the most satiSfying behaviors. 1) He will live with others in the maximum possible harmony, because Of the rewarding character Of reciprocal positive regard. As thusly characterized, the fully-functioning person would be synonymous with optimal psychological adjustment, com— plete congruence, and complete openness to experience. Although these terms appear static, as though the person "had arrived," all the characteristics of such a person are actually 74 "in-process" characteristics. The fully-functioning person would be a person in process, continually changing; his spe- cific behaviors cannot be described in advance. However, they would be adequately adaptive to each new situation, and the person would be continually ina.process Of further self- actualization. 9. Given a minimal mutual willingness to be in contact and to receive communications, the greater the communicated con- gruence Of experience, awareness, and behavior on the part of one individual, the more the ensuing relationship will involve a tendency toward reciprocal communication with the same quali- ties, mutually accurate understanding of communications, im- proved psychological adjustment and functioning in both parties, and mutual satisfaction in the relationship. If person X and person Y are willing tO communicate to and be in contact with each other, a high congruence will exist in X among the following elements: a) His experience of the subject of communication with Y. b) Tlle symbolization Of this experience in awareness in its relation to his self-concept. c) His communicative expression of this experience. The communication Of X to Y will then be characterized by this congruence of experience, awareness and communication. This congruence will be experienced by Y as clear communication, and hence his response is more likely to express a congruence of his own experience and awareness. Since X is congruent, he is able to perceive the response Of Y in an accurate and extenaunxd 75 manner, with empathy for his internal frame Of reference. Thus feeling understood, Y experiences some satisfaction of his need for positive regard while X experiences himself as having made a positive'difference in the experiential field of Y. Because Of this, Y experiences himself in a relationship which, in the area Of communication, is characterized by congruence on the part Of X, an empathic understanding by X of the internal frame of reference, and an unconditional regard. Because Y has less need Of any of his defenses in this relationship, any need for distortion Of perception is decreased and he perceives the com— munication of X more accurately. Hence communication in both directions becomes increasingly congruent, is increasingly accurately perceived, and contains more reciprocal positive regard. This relationship, therefore, facilitates improved congruence and psychological adjustment in both X and Y. The foregoing has actually described an improved relationship be- tween X and Y. Were marked communicated incongruence of experi- ence, awareness, and behavior on the part Of one individual to exist, conditions for a deteriorating relationship would be present. Small Group Theory The theoretical framework of economic consumption theory relates to the individual; the home economist, in general, is interested primarily in the family. In order to be more rele- vant, indifference theory must be modified or supplemented so that more than one individual can be taken into account. Since 76 the family structure is that Of a small group, most relevant social psychological concepts and principles regarding the family group should be found in various theoretical frameworks dealing with small groups. This area, then, was also chosen for analysis in this study. Considerable research revolving around small groups has been published. At initial glance, there appears to be a multi- tude Of different ways in which the study Of groups, primarily small groups, has been approached. More careful examination, however, reveals that these theories actually augment and amplify, rather than contradict, each other. Six primary ways Of study can be identified, differing essentially in method- ological and conceptual approaches:50 1. Basic dimensions. Factor analysis is used to determine the major dimensions of groups. These factors are developed from three kinds of variables: measurable characteristics of individuals; structural characteristics Of the group; and, syntality variables, representing performance of the group as a whole. These dimensions then represent stable patternings in Which, for different groups in different situations, the same variables enter into the same dimensions, but with different loadings (Cattell and his associates). 2. Interaction. Interest here surrounds the development of the group and how it changes as a result Of interactions 3otherbert Thelen, "Work-Emotionality Theory Of the Group as Organism," Ps chology: A Study Of a Science, Vol.3, ed. Sigmund Koch (New ork: McGraw—Hill Book Co., Inc., 1 59), PP. 547-490 77 among members and between group and environment (Bales, Homans, Chapple, White, and Arensberg). 5. Organizational leadership. The functions and respons— ibilities of individuals with reference to achievement of group goals is usually considered primary (Stogdill, Shartle, and Hemphill). 4. Psychoanalytic. The essential notion here is that group cohesiveness arises through common identification of members with one another (Scheidlinger, Slavson, Redl, Bion, and Ezriel). 5. Sociometric. The basic postulate here is that the "social space" within which an individual lives is delimited by his range Of interaction with others and that this space is structured by his feelings Of attraction or repulsion for others (Moreno, Jennings, Barker, and Criswell). 6. Force field. The "life space" is a focal concept here. It is felt that behavior arises out of this "life space" Of the individual. This contains perceptions of behavioral altern- tives; in addition, there are barriers into chosen activity regions (Lewin). The work-emotionality theory, as presented by Thelen, attempts to present "in relatively summary form, a set of theo- retical elements Which may represent a composite view of the various approaches."51 In choosing this framework, the same criteria applied to personality theory were used (see page 65). 5llbid., p. 549. 78 As with Rogers, Thelen too, presents this construct in a well-organized framework. Basic postulates and principles are explicitly pointed out. Considerable empirical testing of hypotheses derived from this framework has been in progress for some period Of time. Much Of this has been in conjunction with the Committee on Human DevelOpment at the University Of Chicago. The research has indicated that the theoretical construct is of such wide SCOpe that it can be used in many different situa- tions for a variety Of purposes. Research is still continuing, much Of which is aimed toward sharpening basic concepts and constructing more precise tools Of measurement. All small group theories, of course, appear to be natural supplements to economic theory if we are concerned with the economic behavior of the family unit. This framework appeared to be particularly relevant when viewed in conjunction with Rogers' theory. Both relate to individual and to group behavior; both apply a some- what psycho-analytic approach; both utilize similar concepts to some degree; both have used an identical research method in some empirical studies (Q—method). Together they help to formulate a continuum Of human behavior ranging from a fully- functioning, nongroup-dependent person at one end to a com- pletely group-dependent person at the other. This type of continuum, in turn, fits well with present economic consumption theory, in that it attempts to point out the situations under which economic theory is most applicable, and the situations under which a theory of group behavior may be more valuable in analyzing even economic behavior. 79 Work-emotionality theory actually utilizes basic con- cepts introduced by Bion in a series Of seven articles in Human Relations.52 This framework then developed around these con- cepts. The focal point of the theory is that the group is seen as a miniature society which has conflicts within itself over the basic assumptions on which it Operates. The two general types of assumptions refer to different major purposes, to "work" in the sense Of dealing with reality factors diagnosed as creating problems to be solved, and to "emotionality" which attempts to avoid certain reality factors but which at the same time serves to help maintain the group. The group is then seen as a shifting network of actual and potential subgroups which changes in reSponse to the altered needs of the group. Basic Postulates The postulates and principles presented have been taken from articles by Thelen in Psychology: A Study Of a 30161109,33 and The State Of the Social Sciences.54 1. Units Of interaction exist. This is necessary in order to make study possible at the molar level. 2. Group life can be seen as an adaptive process; our 32These articles, "Experiences in Groups, I through VII," appeared in Human Relations from 1948 (Vol. I) through 1951 (Vol. IV). 35Thelen, op. cit., pp. 544-611. 54Herbert Thelen, "Emotionality and Work in Groups," The State Of the Social Sciences, ed. L. White (Chicago: University Of Chicago Press, 1956), pp. 184—200. 80 accounts Of it are descriptions Of the changing stresses in the group and of the ways in which group members respond to these stresses. This postulate outlines the structure for the type-Of models Which must be used. 5. Affective behaviors Communicate directly and non- verbally and are sensed directly. 4. The emotional aspects of group life, and particularly the use the group makes of its "feelings" will be direct evi- dence for diagnosing tensions and the stress conditions which give rise to the tensions. Postulates three and four are strategic in that they make a commitment to a psychiatric approach. 5. Groups have periods in Which they are dominated by different moods. 6. The concept of group qua group rather than as group qua” collection is essential to our thinking and acting as social beings. ' This indicates that the group is viewed as something more than a mere collection of individuals. 7. "Laws" governing group life will be "laws" Of change; they will be concerned with continually shifting balance of forces in the group, and with continually shifting "culture" of the group. This points toward the fundamental nature Of the phe— nomena to be studied, or toward the kind of study with which this framework will be involved. 81 Principles Since Thelen sees the study Of groups as only a selec- ted aspect of the study of human behavior in general, he Offers principles regarding both of these aspects. The first nine principles relate to general human behavior; the last 12 relate more specifically to groups. 1. Life is a sequence Of reactions to stress; man is con- tinually meeting situations with which he cannot cope. Behavior, thus, is conceived as purposive. Purpose is assigned to man as the actor; there must, therefore, be the concept of something acted on, such as, environment. From this distinction of inner-outer flows the possibility of the self- concept as distinguished from the Object- or other-concept; and also the acceptance of a priori realities apart from man. The group, as a whole, is then seen as a system sur- rounded by an environment and containing individual subsystems. As a social system it exerts control over interpersonal and person-environment interactions. This control is exerted through group culture and is necessary in order for the group to accomplish certain task purposes. These task or public purposes are achieved through taking action to change particu- lar conditions perceived as lying outside the group. To bring about these changes, the group must define and accept two kinds Of reality demands: a) Demands for a particular character of action dic— tated by the logic of the problem and directed against the conditions to be changed; and 82 b) Demands for reorganization of the culture so that the necessary participant roles can be developed and the needed human resources mobilized. This latter problem is complicated by the existence Of many interpersonal and person-environment relationships which are to be maintained while changing the par— ticular relationship whose unsatisfactoriness led to identifications of the problem and purposes. These "hidden" or process problems are products of the group as a system—-they come from the social inter- relations within the group. Apparently, demands of the "hidden" problems, like demands Of the task problems, result in stresses lying outside the indi- vidual subsystem. The group may or may not have public awareness Of a particular stress; different members may respond in different ways and have dif- ferent threshholds Of sensitivity to a particular stress. But the underlying condition, capable of mobilizing each person's tensions at a given time, is comprehended as a hypothesized stress. 2. In stress situations, energy is mobilized and a state of tension is produced. 5. The state Of tension tends to be disturbing and man seeks to reduce the tension. 4. Man has direct impulses to take action, and there appears to be a limited number of kinds Of impulses (or drive- actualizations). 85 Bion has proposed four major purposes to which impulses contribute. These he labeled fight, flight, dependency, and pairing. 5. Impulses may be translated directly into action. This may reduce the tension and render a person tem- porarily incapable of further reaction to the initiating stress. If the stress has Objective basis in real danger, then the person remains in danger, and behavior is nonadaptive. If the stress is projected from the subjective domain (such as a threat to the self-concept), then emotional discharge may be a prelude to reflection; and the behavior, although not itself adaptive, may make adaptive sequels possible. 6. Direct acting—out Of impulses has varying consequences, depending on the nature Of the impulse. Pairing increases adequacy to cope, without reducing Objective dangers. Dependency neither increases nor decreases adequacy nor removes the danger; its effectiveness depends upon whether the sought protection is forthcoming. If successful, fight destroys the danger, but it also "tears up the lawn" or makes enemies. Flight gets one out of danger without increas- ing adequacy or removing stress from the situation. From a long-range point of view, all these kinds of acting are mostly nonadaptive because little or nothing is learned from the act- ing—out experience. 7. Impulses may be temporarily thwarted or blocked, and the emergent feelings or other behaviors diagnosed. The nature Of the stress is made known by the behaviors 84 it tends to engender. Instead of acting-out, there is inquiry or reality seeking. Behavior is mediated by thought processes in which previous experience is brought to bear, and alterna- tives formulated, selected, and evaluated in action. 8. Human events contain a blend of acting-out and inquiry modes. There is acting-out in the sense of spontaneous, invol- untary expression Of impulse; there is inquiry in the sense Of developing awareness of factors in the situation and in the sense that something is learned from experience. Bion's con- cepts Of work and emotionality are essentially concepts of inquiry and acting-out, respectively, referred to the group as a whole. 9. Human situations require a particular blending Of the elements Of acting-out and inquiry modes. 10. Each person has the capability for meeting stress by acting-out and by inquiry. These capabilities, however, differ from person to person. 11. The tendencies Which will be actualized in the behavior of a particular person depend partially on the situation in which one finds himself. Despite this importance Of situation, there is enough consistency in the behavior of a person from situation to situ- ation that he is recognizable as the same personality. 12. Persons come together in the expectancy of mutual bene— fit in coping with Objective problems and meeting personal needs. 85 15. When persons get together, tensions are mobilized and interaction results. Out of this interaction then emerge mutual identifica- tions which determine the characteristics of "groupness," including a social order and structure. 14. Social order exerts control over the interactions among individuals and gives the interactions a discernible pattern and sequence. This social order can, in turn, be comprehended as necessitated by the group as a Whole. 15. The pattern and sequence in interaction changes in character from time tO time, thus creating the appearance of different units or phases Of interaction. The organizing principle for the interpretation of each Of these phases is that the group culture has shifted distinc- tively to a different configuration of "basic assumptions." 16. Group culture-units differ in quality Of the blend Of acting-out and inquiry. Because of this, they differ in the nature Of their contribution to the group's adaptation to the inner and outer stresses which were present initially and which are created as the members live together. 17. Intensity of stress developed in each situation during release of tension depends upon the extent to Which the mode Of tension release is acting-out. Acting-out tends, in itself, to be nonadaptive, but it builds stress; inquiry tends to be adaptive, but it reduces 86 tension with the minimum development Of stress. 18. The group, as a whole, must maintain the "appropriate" blend behwrm.acting-out and inquiry. 19. As a group continues to meet, individuals adapt to the group and they adapt the group to the individuals. Thus changes occur in the modal tendencies Of the units Of interaction. The amount Of change depends primarily on the extent to Which inquiry is the dominant mode, for inquiry is associated with learning. The amount Of "group growth" is determined primarily by the amount of energy flowing into inquiry components Of the adaptive process. 20. Potentialities for amount and adaptiveness Of cultural development, and range of problems (or stress) with which it can deal, are limited ultimately by the composition of the group. The degree and nature Of acting—out and inquiry which characterizes each member Of a group is important in determining what the group itself will do. 21. The extent to which and the rate with which the group actualizes its potentialities depends upon its "leadership" or development of a means for controlling and selecting and actual— izing needed contributions. Optimum leadership would appear to strike a balance between encouragement and support Of direct expression Of affect (so that the existence Of stresses could be known) and diagnosis and bringing into awareness (through problem redefini- tion) of the factors giving rise to the stresses to which the 87 group was reacting. These two frameworks-~Rogers' self-theory and Thelen's work-emotionality theory--served as a basis for joint analysis with theeconomic indifference approach to consumption. When studied together (within a framework Of basic postulates from all three areas), hypotheses relevant to family money use were derived. This approach and derivation is discussed in the fol- lowing chapter. CHAPTER IV DEVELOPMENT OF THEORETICAL CONSTRUCT Method of Integration After concepts, basic postulates, and principles of the three theoretical frameworks were identified and clarified, an attempt was made to mesh some key points Of these theories. Not all aspects of the frameworks were analyzed. As has already been indicated, four primary clues for seeking points of inte- gration were followed: connection between the different frame- works being analyzed; interdependence Of concepts, postulates and principles; congruity or lack of it; and reinforcement or 1 What was being sought was a psychological/social- lack of it. psychological explanation to family economic behavior. In an analysis Of this type, it was difficult to follow any prescribed procedure. The entire study was exploratory, both in relation to the actual research and to the methodology, which has not been used frequently and is far from well- clarified. The study by Clarkson is related in some ways.2 Clarkson utilized a theory Of human problem solving to reduce lThese clues were used in a study by Louis Schneider, ,The Freudian Psychology and Veblen's Social Theory (New York: King's Crown Press, 1948), pp. 185—86. 2Geoffrey Clarkson, The Theory of Consumer Demand: A Critical Appraisal (Englewood Cliffs, N. J.: Prentice Hall, Inc., 1965). 88 89 the theory of consumer demand to an empirically testable base. Both studies sought to provide testable hypotheses related to economic behavior. Clarkson, however, was concerned primarily with the actual process of decision making, while this study centered on a partial explanation of reasons underlying family money use. The process itself was not of prime concern. Actual integration focused first on the theories of personality and of small groups. Since both of these theories included principles related to the individual and to the group, it was important to identify points where they were similar or supplementary. By combination, condensation, and modification oen set Of principles (taken from both of these theories) related to human behavior was developed. Principles Of economic consumption theory were not specifically integrated with these. They remained as a separate framework. Both sets of principles --those related to human behavior and those Of economic theory-- were tied together by common basic postulates or assumptions, which related to personality, small group behavior, and indif- ference theory. Using these basic postulates as a foundation, and analyzing the two sets of principles, hypotheses explaining family money use were derived. It must be remembered that these hypotheses are essentially Of a psychological/social- psychological nature, meant to supplement or further clarify economic consumption theory. Essentially the entire integration Of this construct rested on a probabilistic type Of explanation or an inductive sthematization, using the aforementioned clues as guideposts. 90 Whatever validity the hypotheses may now have rests primarily on the results Of empirical studies which have tested hypotheses derived from these basic frameworks. Testing of these specific hypotheses will result in further evidence as tO their validity. The actual framework of the developed construct con- sisted of basic postulates, principles, and derived hypotheses. Definitions of concepts used were similar to those employed in the basic frameworks which were analyzed and are found in Appen- dices B and C. One definition was added; the concept of a "rational purchase" was defined operationally. (This definition is included in Appendix A.) As this construct is discussed, it may appear that the term "theoretical construct" is not appli- cable to it. However, as used in this study, the term refers to any set of related postulates and principles, and of hypoth- eses derived from these which attempt to explain some phenomenon. The construct may be relatively highly refined, such as eco— nomic theory, or it may be at initial stages of testing. A further clarification of the framework of the construct follows: 1. Basic postulates. These represent the assumptions upon which the construct is built. They are agreements as to how the study is to be approached, and act as a guide to the organi- zation of a body of principles. This construct consisted of one set Of basic postulates taken from personality theory, work- emotionality theory, and indifference theory. All that followed actually stemmed from these postulates and the definitions of concepts. 2. Principles. Two separate sets of principles are 91 implicit in this construct. One consists of the principles of economic indifference theory, as stated in Chapter III. The other is an integration Of principles from personality theory and work-emotionality theory. Both sets of principles are dependent upon the common basic postulates. It is the fruit- fulness Of these principles which will eventually be determined by hypothesis testing. These principles, then, have only a tentative status. 5. Derived hypotheses. The hypotheses represent state- ments which must be tested empirically. All specific instru- ments for testing may not yet be available. They were derived from both sets of principles, with basic postulates and concept definitions also taken into account. The purpose of these hypotheses is to testthe validity Of the principles Of this construct. Development of Construct Basic Postulates The formulation Of these postulates represented the combination of the postulates of the three frameworks which were analyzed; certain ones were not utilized since they were assumed to hold only under certain circumstances. An explana- tion Of some of these instances will be given in the discussion of derived hypotheses. Basic to the entire development of this construct is the view that economic activity is one aspect of human behavior, and that research related generally to small groups can be 92 related to one specific small group--the family. Eight basic postulates underlie this construct. 1. There exists an inherent tendency for all economic activity to be motivated by a tendency for actualization. This is an important and essential postulate, since it provides a close tie between economics and psychology. Social scientists have frequently pointed to this area as one Of diver- gence between the two disciplines.3 This assumption Of singular motivation was one reason for choosing Rogers' theory for anal- ysis. It appeared that it might provide an answer to the fre- quent criticism of the economic assumption that all behavior is oriented toward maximization of satisfaction. Essentially the same thing is postulated in Rogers' theory. The major difference appears to be one of semantics: economics speaks in terms Of satisfaction maximization, while psychology speaks of actualization. Once the meanings Of these terms are examined, little difference remains. It may be true that many needs exist, but they are all subservient to the basic tendency Of the individual to maintain and enhance, or to actualize himself. In life, there is a single motivating force, a single goal. As is suggested by the definition of the actualizing tendency, this singular motivation: 5George Katona, among others, has taken the view that economics assumes one motive, While psychology assumes many. (It is, of course, true that some psychological theories do assume multi-motivated behavior.) He, however, does indicate that these positions are reconcilable, and may be the result of semantic differences. 95 . . . involves not only the tendency to meet deficiency needs (for air, food, water, and so on), but also development toward differentiation of organs and of functions, expansion in terms Of growth, expansion of effectiveness through use Of tools, expansion and enhancement through reproduction. It is development toward autonomy, an& away from heteronomy or control by external forces. It is evident that this one motive is very broad, and encom- passes many facets. Also, it is assumed to be unnecessary, for purposes Of this study, that actualization (or maximization satisfaction) be measured precisely or quantitatively. 2. Economic activity which is consistent with true values will lead tO maximization of satisfaction. It has been assumed that satisfaction maximization and actualization are similar in meaning. Actualization leads to a striving for development toward autonomy and away from con- trol by external forces. Therefore, behavior consistent with true values (which stem from an organismic valuing system) should be more autonomous and lead to maximization of satisfac- tion. This assumption provides a link between the economic definition Of rational and the Operational definition Of a rational purchase as used in this study. 5. Economic activity is one way of satisfying needs for positive regard and for positive self—regard. Rogers postulates the existence of both of these needs, which are dependent on some activity in order to be satisfied-- the need for positive regard requires interaction with others; 4Carl Rogers, "Therapy, Personality, and Interpersonal Relationship," Ps cholo : A Study of a Science, ed. Sigmund Koch (New York: McGraw-Hill Book Co., Inc., 1959), p. 196 94 the need for positive self-regard is independent Of social others. Since economic activity is seen as one aspect of total behavior, it can then be assumed that it would provide one vehicle for satisfaction of these needs. 4. Units Of interaction exist. This assumption is necessary if this study is to be concerned primarily with group behavior. Individual behavior will be analyzed, but essentially in regard to its effect on the economic activity of the family. 5. Family life is an adaptive process characterized by differing phases. Family life is dynamic; it reacts to changing stresses within the group and to the ways in which members respond to these stresses. Some of these components Of change are con- sciouly guided; others occur at "deeper" levels. Elements for the most part already in consciousness are the Objective condi- tions usually seen as lying outside the family group. Intelli- gence may be more easily directed to problem solving or to achieving these purposes or tasks. This activity, with its clear-cut requirements Of information to be secured, roles to be played, and methods to be used, provides a set Of "givens" against Which the family can diagnose difficulties and evaluate and rectify internal conditions. The progress Of problem solv- ing, together with the attendant need frustrations or satisfac- tions, is something each person can judge independently and have Opinions about. In the family's conscious operations then, the outside demands for structuring tend to be perceived 95 as fundamental. At the unconscious level, however, it is the process problems connected with the inner system that most affect motivation, identifications, and so on. The problem solving operation merely provides the vehicle for these higher- priority "emotionalized" human purposes. The family, as a group, works simultaneously on these task and process problems; where the emphasis lies at any one time depends on the impera- tive needs of family members. The effectiveness Of inter- personal relationships among the members Of the family also plays a role in determining the degree Of emphasis on task or process problems. 6. Emotional aspects of family life evident during finan- cial discussions provide direct evidence for diagnosing tensions and stress conditions giving rise to tensions. This postulate is a commitment to a psychiatric approach. Not only "what is goingon" and "what is the overt behavior" will be important, but also "What does it appear to mean to the actor" and "What does it appear to mean to the others in the family." Affective aspects of behavior provide overtones which imply both how the actor evaluates the situation in which he finds himself and also What his purposes or needs may be. 7. Allocation Of income toward the ultimate goal Of actu- alization of self depends on taste factors, Which will be con- sidered as partially determined by the group phase in which the family is operating, and on Opportunity factors, which will be considered as fixed. This is essentially a postulate underlying economic 96 consumption theory. As usually stated, both taste factors and Opportunity factors are fixed. In this construct, one deter- minant of taste factors will be assumed to be the group phase in which the family finds itself at any one time. In economic theory, taste factors represent preferences which arise from needs and wants. In work-emotionality theory, the group goes through various phases in response to different needs. There- fore, the group phase (indicated by degree of task and process problems) will be assumed to be related to present preferences or taste factors. This group phase, in turn, is influenced by the degree to which family members are fully-functioning. 8. Commodities are substitutes for one another. This postulate is essential to consumption theory. It is when items are substitutes for each other that a decision problem arises. If goods were not assumed to be substitutable, a completely different approach to money use would be necessary. These eight postulates are assumed to hold throughout this framework regarding family economic behavior. This is necessary in order to understand the principles and derived hypotheses Which follow. Principles Two sets of principles are implicit in this framework. One is the set Of economic principles embodied in indifference theory, as identified and discussed in Chapter III. Since there was no change made in these they are not restated here. The second set represents an integration of principles from Rogers' theory and those from work-emotionality theory. For 97 simplicity and clarity, and because of some similarities be— tween them, they were drawn together to form one group of prin— ciples. It will be noted that some principles are stated in their original form; where this is true, no further explanation is given. Where there has been integration, either between theories or within a theory, a clarification of this follows. (Following each principle is an indication Of its original source. Therefore R1, T5 points to a principle stemming from the first principle stated in Rogers' theory and the third principle stated in work-emotionality theory, as discussed by Thelen.) l. A portion of the individual's experience becomes differ- entiated and symbolized in an awareness of being, described as self—experience (R1). 2. Awareness of being and functioning becomes elaborated through interaction with the environment, particularly that com- posed of significant others (such as, family members), into a concept Of self-~a perceptual object in one's experiential field (R2). 5. When a self-experience is avoided (or sought) solely because it is less (or more) worthy of self-regard, the individ- ual is said to have acquired a condition of worth (R5). 4. Because of the need for self-regard, the individual perceives his experience selectively, in terms Of the conditions of worth which have come to exist in him; thereby he subceives as threatening an experience Which is incongruent with his self-structure (R4,6). 98 Experiences which are in accord with one's conditions Of worth will be perceived and symbolized accurately in aware- ness, while those which run contrary to the conditions of worth will be perceived selectively and distortedly as if in accord with the conditions of worth, or are in part or whole denied to awareness. Thus from the time of the first selective per- ception in terms Of conditions Of worth, the state of incon- gruence between self and experience will exist to some degree. This can cause the concept of self to include distorted per- ceptions which do not accurately represent one's experience, and one's experience will include elements which are not in- cluded in the picture one has of himself. The individual will no longer be a unified Whole person. Certain experiences, incongruent with the self-structure, will be subceived as threatening; in order to maintain self-structure defense reac- tions will become necessary. If this is true, behavior will be regulated at times by the self and at times by those aspects of the organism's experience not included in the self. The individual will no longer be true to his own natural organismic valuing of experience, but for the sake Of preserving the posi— tive regard of others will come to falsify the values he exper- iences and to perceive them only in terms based upon their value to others. This process Of defense can lead to rigidity of perception, due to necessity of distorting perceptions, and inaccurate perception Of reality, due to distortion and omission Of data, and intensionality. 5. The incongruence between self and experience results in 99 a similar incongruence in the behavior of the individual; thus, life becomes a sequence of reactions to stress situations (R5; Tl,1o). Because of this incongruence, some behaviors will be consistent with self-concept and maintain, enhance, and actu- alize it, while others will maintain, enhance, and actualize those aspects Of the experience of the organism Which are not assimilated into the self-structure. These latter behaviors will either be unrecognized as self-experiences or be perceived in a distorted or selective fashion in such a way as to be con- gruent with the self. Incongruent behavior, or lack Of unity in man, can cause him to regard those situations which are not congruent with his self—concept as stressful; he will continu- ally meet such situations with which he feels he cannot cope. In a family situation, there are several individuals. The family, as a whole, is then seen as a system surrounded by an environment and containing individual subsystems. It exerts control over both interpersonal and person-environment inter- actions through its group culture. This is necessary in order for the family to accomplish certain task purposes. In the process of accomplishing these purposes, two demands must be defined and accepted by the family: a) Demands for a particular character of action dic- tated by the logic of the problem and directed against conditions to be changed. b) Demands for reorganization of group culture so that the necessary participant roles can be developed and the needed human resources mobilized. This latter demand is complicated by the existence of many 100 interpersonal and person-environment relationships which are to be maintained while changing the particular relationship whose unsatisfactoriness led to identification Of the problem and purposes. These hidden or process problems are products of the family group as a system--they come from social inter- relations within the group and result in stresses. A greater idegree of incongruence between self and experience of family 'members will result in a greater degree of stress. The family, as a whole, may or may not have public awareness Of a particu- lar stress. All family members have the capability for meeting stress by acting-out and by inquiry. Different members, how- ever, have different threshholds Of sensitivity to a particular stress, but the underlying condition, capable of mobilizing each person's tensions at a given time, is comprehended as a hypothesized stress. 6. In order for the process Of defense to be reversed, there must be a decrease in conditions of worth and an increase in unconditional self—regard (R7). 7. When the needs for positive regard and positive self- regard are met, the tendencies toward accurate symbolization of experiences and self-actualization are most fully realized (R8). 8. Given a minimal mutual willingness to be in contact and to receive communications, the greater the communicated congru- ence Of experience, awareness, and behavior on the part of one individual, the more the ensuing relationship will involve a tendency toward reciprocal communication with the same quali- ties, mutually accurate understanding of communications, 101 improved psychological adjustment and functioning in both parties, and mutual satisfaction in the relationship (R9). 9. The tendencies Which will be actualized in the behavior Of a particular person depend partially on the situation in which one finds himself.(Tll). 10. In stress situations, energy is mobilized and a state Of tension is produced Which man seeks to reduce. The family is one vehicle through which individuals seek to reduce this tension (T2, 5, 12). 11. Social order exerts control over the interactions among individuals and gives the interactions a discernible pattern and sequence (T14). 12. Impulses may be translated directly into action (T5). 15. Direct acting-out of impulses has varying consequences, depending both on the relative degree of acting-out (as com- pared to inquiry) and on the nature Of the impulse (T6, 17). Whereas inquiry tends to be adaptive, it reduces tension with minimum development Of stress; acting-out, on the other hand, tends to be nonadaptive, but builds further stress, there- by providing possibility for further action. How this stress is continued differs according to impulses involved: pairing increases adequacy to cope without reducing Objective dangers; the effectiveness of dependency depends upon whether the sought protection is forthcoming since it neither increases nor de- creases adequacy nor removes the danger; successful fight removes the danger but impairs personal relationships; flight removes one from danger without increasing adequacy or removing stress. 102 From a long-range point Of view, one learns little or nothing from acting-out. l4. Impulses may be temporarily thwarted or blocked, and the emergent feelings or other behaviors diagnosed (T7). 15. Human situations contain a blend Of acting-out and inquiry modes, Of which the group, as a whole, must maintain the appropriate blend (T8, 9, 18). Acting—out is present in the sense Of spontaneous, involuntary expression Of impulse, while inquiry is present in the sense of developing awareness of factors in the situation and in the sense that something is learned from the experience. Bion's concepts of work and emotionality are essentially con— Cepts Of inquiry and acting—out, respectively, referred to the group as a whole. 16. Group culture-units differ in quality Of the blend Of acting-out and inquiry (T16). 17. As a family remains a unit for a period of time, mem- bers adapt to the family group and they adapt the group to themselves (T19). 18. Potentialities for amount and adaptiveness of cultural development, and range Of problems (or stress) with which it can deal, are limited ultimately by the degree to which family members are fully-functioning.(T20). 19. The extent to which and the rate with which the family actualizes potentialities depends upon its "leadership" or development Of a means for controlling and selecting and actual- izing needed contributions (T21). 105 These 19 principles reflect the general ideas as explicitly stated in Rogers' theory and in work-emotionality theory. Three additional principles, relating specifically to family economic behavior, have been derived. 20. Family economic behavior follows an organized pattern (T15). Family life is assumed to be characterized by differing phases. These are differentiated by nature and degree Of acting- Out and inquiry modes Of behavior which are present. There is a definite sequence to these phases which can be identified after studying the individual family. Since a family composed of fully-functioning members is likely to be more involved with inquiry, this phase Of family life will dominate in the eco- nomic sphere, which is under study. It should be pointed out here that the type Of pattern of economic behavior which is being discussed refers to one marked by periods Of a relatively high degree of inquiry behavior and by periods of a relatively high degree Of acting-out behavior. 21. A family's expenditure pattern is dynamic and ever- changing; however, general pattern changes are predictable (T14). This follows logically from the above principle and from the definition of the actualizing tendency. Since economic behavior is an aspect Of total behavior, expenditure patterns change as family members become more fully-functioning. The ” more fully-functioning they become, the more changes that can be anticipated in their expenditure pattern, if it is true that 104 they become more flexible and more dependent on their own organismic valuing process. However, there remains enough of a pattern in their behavior so that general changes are still ,predictable; this was indicated in principle 20. 22. All family purchases do not appear to fit into their expenditure pattern (T5). ' Although an expenditure pattern exists, it is not com- pletely rigid. A person's behavior may be marked suddenly by more or less congruency, and therefore a specific purchase may :appear not to fit the general pattern. In addition to this, ‘some purchases made during phases of behavior marked by high degrees of acting-out may appear to be divergent with the pat- tern; later investigation, however, may indicate that this was not the case. Individual purchases must be thoroughly analyzed in order to determine their relevancy to an expenditure pattern. These 22 principles, together with the 11 previously stated economic principles, follow from the basic postulates and defined concepts Of this construct, and lead to the derived hypotheses. These principles cannot be taken as being presently supported. Their validity will be confirmed or.denied by test- ing hypotheses derived from the principles; some empirical evi- dence supporting these principles does, however, exist. Derived Hypotheses The hypotheses represent the part Of the study Which brings the theoretical framework directly to bear on the problem which is of concern--reasons underlying family economic behavior. Here the economic and psychological/social-psychological 105 constructs are utilized in an attempt to find an explanation to this problem. It can be mentioned that there is an indefinite number of hypotheses which can be derived from this construct; those which will be discussed do not represent an exhaustive list. Several, which now appear to be most relevant, were derived in order to indicate the type of explanation this con- struct appears to provide. At this stage, all the hypotheses represent mere hunches, substflétiated by limited related re- search; all, however, must be tested in order to ascertain their actual validity and therefore, the validity of the princi- ples from which they originate. As has been stated previously, all hypotheses follow from the defined concepts, the integrated set Of basic postulates, and the economic and psychological principles. Each hypothesis is discussed in order to clarify its source and its meaning. (Following each hypothesis is an indication of its source. Therefore BPl, E5, P6 points to a hypothesis stemming from the first integrated basic postulate, the third economic principle and the sixth psychological prin- ciple.) 1. The more fully-functiOning at least one family member is, the closer will family economic behavior approach ration- ality (BPl, 2, 4, 5; P4, 5, 7, 8, 10). A partial purpose of this hypothesis is to empirically test several Of the hypothesized characteristics of Rogers' fully-functioning person, especially the following two: a) He will experience himself as the locus of evalua- tion; therefore, the valuing process will be a continuing organismic one. 106 b) He will find his organismic valuing a trustworthy guide to the most satisfying behaviors. Studies by Tonietz5 and Raskin6 gave some evidence that as a person moves toward a state of being fully-functioning, he con— tinually experiences himself as the locus of evaluation more Often. Whereas these studies were clinical, this approach will analyze a real life situation, that is, family money use. This hypothesis can be pointed to as the basic, most comprehensive hypothesis Of the entire study. It essentially indicates the area where economic consumption theory should be most effective, and the area where small group theory is needed as a supplement, and even some cases where it may be most essen- tial. It follows from this hypothesis that all families can be classified on a continuum which ranges from those composed Of family members who are fully-functioning in all areas Of life to those who are totally psychologically maladjusted. Applying this to the specific case Of economic behavior, there would be a range from families composed Of members who are fully— functioning in the economic sphere of life to those who are psychologically maladjusted in this area. It has been assumed that behavior is singularly moti- vated, that motivation being actualization or satisfaction maxi- mization. If the fully—functioning person finds his organismic 5Alice Tonietz, "A Study Of Phenomenological Changes in Perception after Psychotherapy as Exhibited in the Content Of Rorschach Percepts" (Ph.D. thesis, University of Chicago, 1950). 6N. J. Raskin, "An Objective Study Of the Locus Of Evaluation Factor in Psychotherapy" (Ph.D. thesis, University of Chicago, 1949). 107 Fully-functioning Psychologically member in family maladjusted member in family v Most famiITEL would fall in this area-- not fully-functioning, but striving in that direction valuing a trustworthy guide to the most satisfying behaviors, as this hypothesis implies, his money use will reflect his move toward actualization. Each purchase will be one that leads to maximizing satisfaction; it will also be a "rational" purchase. Conventional economic consumption theory, based on this concept Of rationality, will operate most closely in this situation. The individual will evaluate experiences himself, and have been less dependent on a group, such as the family. Persons come together in a group in order to cope with stressful situations; a stressful situation results from an incongruent experience; since the self—structure Of a fully-functioning person is con- gruent with his experience, he does not encounter stressful situations of this type, and therefore, is less dependent upon family interaction. Purchases made by such individuals, even when they are family purchases, are more apt to reflect the indifference curve Of that individual; the prOblem Of group indifference curves is not met. This does not mean that the individual completely ignores the needs and wants Of other family members. Although experiencing little dependence on interaction, the fully-functioning member communicates accuratebr with family members. He has an awareness of each other family 108 member, which is taken into account in the formulation of his own preference pattern. In his description Of self-actualizing people (a close relationship can be seen between Rogers' "fully- functioning person" and Maslow's "self-actualizing person") Maslow found that two of the qulities present in these indi- viduals are detachment and autonomy.7 They do not need others in the ordinary sense, and have a relative independence of the physical and social environment. Essentially, they are depend- ent on their own potentialities and latent resources, for their own development and continued growth, rather than on other people or extrinsic satisfactions. Whereas the completely fully-functioning person is merely a hypothetical entity, a person may be fully-functioning in a specific area, as has already been indicated. It is, therefore, possible that an individual may be fully-functioning in the economic sphere Of his life. It should be clarified here that although the fully- functioning person is hypothesized to be detached and autono- mous with little dependence on the family, he is not a self— centered person. Maslow has indicated that this false image of the fully-functioning person is frequently reflected in the 8 literature. Despite his autonomy, he is assumed to have intimate feelings for others and where he is a member Of a 7Abraham Maslow, Motivation and Personalipy (New York: Harper & Bros., 1954), pp. 212914. 8Abraham Maslow, Toward a Psychology of Being (Princeton, N. J.: D. Van Nostrand Co., Inc., 1962). 109 close group, such as the family, all members are more apt to experience mutually satisfying relationships. His is a "healthy" personality whiCh leads to family growth, not to family disintegration. Directly in Opposition to the fully-functioning person is the psychologically maladjusted individual. The experi— ences Of this person are no longer congruent with his self- structure; many stressful situations therefore arise. Since persons come together in groups in order to cope with stressful situations, this person will be greatly dependent on the group. If he no longer relies solely on his own organismic valuing in order to make decisions, some behavior will be regulated by the actualizing tendency and some by the self-actualizing tendency. (At this point, it may be pertinent to clarify the difference between the tendencies toward actualization and toward self- actualization, as indicated by their definitions. Actualizing tendency is the basic, inherent motivation of all human behav- ior. It refers to the tendency of the organism to develop all its capacities in ways which serve to maintain or enhance the organism. However, once self-structure is developed, this gen- eral actualizing tendency expresses itself also in the actuali- zation Of that portion of the experience Of the organism which is symbolized in the self. According to this hypothesis, if the self and experience are incongruent, then the general tend— ency to actualize the organism may work at cross purposes with the subsystem of that motive, which is the tendency to actual— ize the self.) If the behavior of the psychologically 110 maladjusted person is regulated at times by the actualizing tendency and at times by the self-actualizing tendency, dis- cordant and incomprehensible behavior will be produced. One who is psychologically maladjusted in the economic sphere then will not react in a rational manner; economic theory, assuming rationality, may not be sufficient to provide an explanation to this behavior. Concepts, such as diminishing marginal rate Of substitution, may not always hold for these individuals, and the individual may not be able to tell what combinations are most pleasing to him. It is here where small group theory can play an important role. This type of person needs the group in order to help him cope with his stresses, of which there will be many. The phase in which the family is operating will serve as a partial explanation of the reasoning behind his purchases. Group interaction will be more necessary for this person to reach a purchasing decision. He may be more dependent on the group for his own purposes, while the fully-functioning person Operates for the betterment Of the whole group. The fully-functioning and psychologically maladjusted persons represent the extremes on the continuum. Sines it is necessary for these characteristics to appear only in the eco- nomic sphere Of life, it is possible for these types Of indi- viduals to exist. However, it is hypothesized that the largest number fall somewhere further in on the continuum; they are fully-functioning to a greater or lesser degree. According to this hypothesis, to the degree that family economic behavior does not reflect behavior Of a fully—functioning individual, 111 it will not be rational and work-emotionality theory can help to provide an explanation for it. The fully-functioning and the psychologically malad— justed persons have been discussed. The hypothesis, however, indicates a family orientation. This apparent divergence can be clarified. First of all, fully-functioning individuals are likely to associate with other fully-functioning individuals.9 Thus, a fully-functioning man would likely marry a woman Who was also fully-functioning. Also, a fully-functioning person tends to make others about him more fully-functioning due to the nature of his inter—personal relationships. With a fully- functioning member in the family, there is clear, congruent communication between that person and other family members although little importance is placed on interaction. This should lead to a tendency toward reciprocal communication with the same qualities, mutually accurate understanding Of the com- munications, improved psychological adjustment and functioning in both parties, and mutual satisfaction in the relationship. In other words, both individuals become more fully-functioning. Just as a fully-functioning person is hypothesized to use money more rationally, a family with at least one fully- functioning member, will also approach rational economic behav- ior more closely. Rationality here refers to purchases con- sistent with the true values Of the family, not only the individual. A contradiction, more apparent than real, exists here. The hypothesis indicates that a fully—functioning person 9Maslow, op. cit., p. 218. 112 will make purchases consistent with his own true values; how- ever, a family with at least one fully-functioning member will make purchases consistent with the family's true values. This is not contradictory since it is assumed that the values of the fully-functioning individual also reflect the true values of other family members, when he is Operating in a group situation. The clarification Of this hypothesis has been quite lengthy due primarily to the fact that it serves as the over- riding and unifying hypothesis Of the study. Several of the hypotheses which follow are merely subordinate parts Of this major one; most are related, in some way, to it. Essentially, it is the major product of the synthesis Of the three analyzed theoretical constructs. The next seven hypotheses are particularly related to hypothesis one and can be seen as sub-aspects of it. Because of this, they all stem from the same sources as does hypothesis one; therefore, only their primary sources will be indicated. 2. The more fully-functioning at least one family member is, the greater will be the number of delegated purchasing decisions (P5, 8, 10). Since fully-functioning individuals should have less need for interaction, and yet maintain adequate communication and take into account needs and wants of other family members in their own preference patterns, purchases which are for the family as a group will be made satisfactorily by the individual. Individuals who are less fully-functioning will require more group interaction and, therefore, not be as willing to assume 115 complete responsibility for a family purchase. 5. The more fully-functioning at least one family member is, the greater will be family reliance on inquiry modes Of behavior (BP5; P4, 15, 16). Family life is characterized by different phases, which vary in degree Of acting—out and inquiry modes Of behavior. Inquiry is marked by a SOphisticated reality seeking, using conscious problem-solving methods. A study by Stock indicated that a person's self-referent expressions become more Objective and less emotional as he becomes more fully-functioning.10 If his behavior is less emotional, it is likely to be marked by a greater degree Of inquiry behavior. If a fully-functioning person is extensional--he sees experience in differentiated terms; is aware of space—time anchorage of facts; is dominated by facts, not concepts; evaluates in multiple ways; is aware of different levels of abstraction; and, tests his inferences and abstractions against reality, then he should rely on conscious problem-solving methods in order to make purchase decisions. Families with such individuals would be more likely to collect and evaluate information from various sources, and to do com- parison shopping. As family members are more fully-functioning in the economic sphere Of life, we would expect to find more of this type of behavior. Modes of behavior marked by high degrees Of inquiry would predominate in their pattern of economic life. The existence Of group phases Of behavior was supported in a loDorothy Stock, "The Self Concept and Feelin s Toward Others," Journal Of Consulting Psychology, XIII (1949 , 176-80. 114 11 He constructed an instrument to unitize study by Ben-Zeev. sequences of group interaction and found that modes of behavior (inquiry and acting-out) could be identified and that some idea of their relative stability could be formed. A study by Glide- well indicated that certain characteristics of the solutions to problems worked out by groups Of military Officers could be predicted from knowledge of the emotionality-work patterns of 12 Both of these studies provide evidence pointing the groups. out the usefulness of studying behavior as composed of differ- ent phases. 4. The more fully-functioning at least one family member is, the less predictable will be specific individual or family purchases (P7). If fully-functioning individuals rely primarily on their own organismic valuing process, they, therefore, are not easily influenced by what others may purchase. They feel no need to "keep up with the Joneses." They are continually changing, and specific behaviors cannot be predicted in advance. All that can be said is that the purchases which they make will be ade- quately adaptive to each new situation. 5. The more fully-functioning at least one family member is, the better able will the family be to explain reasons for Specific purchases (P7). llS. Ben-Zeev, "The Construction and Validation Of a Method for Unitizing Sequences Of Group Interaction" (Ph.D. thesis, University Of Chicago, 1955). 12J. C. Glidewell, "Group Emotionality and Productivity" (Ph.D. thesis, University of Chicago, 1955). 115 Experiences Of fully-functioning individuals are con- gruent with the self-structure. Therefore, all experiences are available to awareness and are symbolized accurately. When incongruency exists, behavior is incomprehensible to the indi- vidual; he cannot explain the reasons for this behavior. If fully—functioning persons suffer from no incongruency, they can then comprehend their behavior and supply an adequate explana- tion for the reasons behind specific purchases. 6. As family income increases, some goods are dropped from the expenditure pattern. Where incomes are above a subsistence level, the more fully-functioning at least one family member is, the fewer goods that will be dropped or substituted (P7). This stems largely from the definitions Of the economic concepts Of inferior and superior goods. If less money is spent on an item after income increases, it is classified as an inferior good; when more than the increase in income is adsorbed by increased purchase Of an item, it is classified as a superior good. It is hypothesized here that the identifica- tion Of inferior and superior goods is learned. The less neces- sary one finds it to identify with significant others (a hypothesized characteristic of the fully-functioning person), the less likely is one to be concerned with the identification tags a socioeconomic group places on various items. As one becomes less fully-functioning, the approval Of significant others will become more important. Income increase will be more than absorbed by purchases of certain goods which are considered as "necessary" for acceptance in a certain group. 116 An increase in income may result in substituting a motor boat for the canoe; the next income increase may result in purchase Of a yacht. On the other hand, in a family where at least one member is fully-functioning, the canoe may outlive many income increases. It should be realized that this hypothesis does not maintain that no goods will be substituted or dropped from expenditure patterns in fully-functioning families. Rather, it is the degree Of dropping and substituting which is pertinent. 7. As conditions Of worth held by family members increase, expenditures similar to those of the socioeconomic group with which the family wishes to be identified will increase (P5, 4, 5). When a self-experience or set of self-experiences is either avoided or sought solely because the individual discrim- inates it as being less or more worthy Of self-regard, he can be said to have acquired a condition of worth. These conditions of worth disturb the valuing process because they are applied to experiences without reference to the extent to which the experience maintains or enhances the organism. "What others think" becomes more important than "what I think." Therefore, according this this hypothesis, as these conditions Of worth increase more purchase decisions will be made on the basis Of what is thought to be right by significant others (in this case, the socioeconomic group), than on the basis Of the organismic valuing process. An investigation by Diller indicated decreas— ing reliance on one's self as the locus Of evaluations as 117 conditions Of worth increased.13 Self-attitudes after success and failure were analyzed, and evidence pointed to the relation- ship between increasing numbers of conditions Of worth and increasing incongruency. 8. The more fully-functioning at least one family member is, the less identifiable will be the point Of satiety for intellectual, cultural, and aesthetic goods in family purchas- ing patterns (P7). Intellectual, cultural, and aesthetic goods represent goods which satisfy learned wants. A point of satiety is always more difficult to identify here. For physiological needs, satiety can be more easily identified; in some cases, a scientific standard can be applied. With fully-functioning individuals, satiety for goods satisfying learned wants is even more difficult to define. If these people value goods and experiences according to their own organismic valuing process, then they are not influenced by approval or disapproval of significant others. Therefore, the value placed on these goods will be dependent upon their own self-structure. A family whose members are less fully-functioning will be more apt to identify with others in purchasing goods to satisfy these wants. These families will purchase the items, and the quantity Of these items which it is "fashionable" to purchase at the present time. A family with a fully-functioning member may purchase 13L. Diller, "Conscious and Unconscious Self-attitudes After Success and Failues," Journal Of Personality, XXIII 118 books about history on and off throughout their life cycle, while a family whose members are less fully-functioning may purchase "20 feet of books with colorful jackets" to fill a new bookcase, since people they consider significant others have that amount of books in their living rooms. Although the first eight hypotheses are of primary sig- nificance and represent the major core of the study, three additional hypotheses are presented. These indicate other types of explanation which can be deduced from this framework. Separate studies would likely be needed in order to empirically test the validity of these hypotheses. 9. The further a family is along its life cycle, the greater will be the number of delegated purchasing decisions (P17). The longer a group remains together as a unit, the more do members adapt to the group and also adapt the group to them- selves. Therefore, the longer a family has been together, the better adapted to each other will they be. It follows that they will be more cognizant of each other's needs and wants, and will be better able to anticipate each other‘s behavior. Because of this, more delegation of purchasing decisions will be made. ~ 10. The greater the degree to which behavior is marked by acting-out, the shorter will be the period of deliberation regarding a prospective purchase (BP5; P15). Acting-out behavior is a primitive direct reaction, and responds to the unconscious needs of the group to maintain 119 itself in the face of stress. Inquiry behavior, on the other hand, consists of conscious problem-solving methods. These two modes of behavior are present in varying degrees in different phases of family life. Since acting-out represents a direct reaction to an impulse, when this type of behavior predominates in a phase, the purchase decision will be made quickly. It is at this time that the family may do more "impulse" buying. However, when inquiry is the predominant mode of behavior, more time will be taken to make the decision, since conscious problem-solving methods will be followed. 11. The higher the state of emotion during a purchasing decision, the less likely the purchase will appear to follow the family expenditure pattern (BPl, 6; P12, 15, 2o, 22). High emotion marks a phase of behavior in which acting- out prevails. Purchases may be made impulsively, without think- ing through all alternatives and consequences. If the stress that is being acted upon is such that it is a threat to the self- concept, then this emotional discharge, although itself non- adaptive, may be a prelude to reflection. This type of behavior may lead to further behavior which is based upon conscious problem-solving methods and is, then, adaptive. The impulse purchase may be valuable at times, since it "tides over" a per- son temporarily, and enables him to approach the problem more rationally at a later time. Thus, the traditional buying of a hat by a woman when things go wrong, may represent a worthwhile form of behavior. The studies by Ben-Zeev and Glidewell lend some support to both hypotheses 10 and 11. 120 These 11 hypotheses do not exhaust all the possibilities for derivation; they are merely representative. Essentially, an attempt has been made to provide some clues for testing a psychological/social-psychological explanation of the reasoning behind family money use, and to ascertain the instances when economic consumption theory may be most valuable, and the in- stances when it needs to be supplemented by small group theory. CHAPTER V DISCUSSION OF FINDINGS In a study of this nature, the specific findings are necessarily general and somewhat vague. No definite conclusions can be pointed out. Rather than being a complete project in itself, it represents an initial phase of study and points to areas and specific projects which appear to be relevant to the study of family economic behavior. Summary of Findings Economic indifference theory, Rogers' self-theory, and Thelen's work-emotionality theory were analyzed in an attempt to seek an explanation to family economic behavior. Basic post— ulates were drawn from all three areas and integrated to form one comprehensive set of postulates. Within this framework, two sets of principles were included: the principles of indif- ference theory and principles integrated from the two psycho- logical theories. (Three principles related specifically to family money use also were included.) Using this construct as a base, and including definitions of concepts employed in the original theories plus several operational definitions, 11 hypotheses were derived. Just how meaningful these hypotheses are cannot be determined prior to their testing. However, the fact that this type of integration and derivation is possible 121 122 is evidenced by the many logical points of conjunction found in the analysis and comparison of the selected frameworks, as well as the limited related empirical evidence. The first objective of this study was the development of an initial theoretical construct. (The word "initial" was used to emphasize the tentative nature of this construct; con- siderable testing of derived hypotheses is necessary before the construct can be viewed as anything else.) Such a construct was developed by studying two disciplines--psychology and social psychology—-in an attempt to answer questions stemming from another discipline--economics. The specific features of this construct were discussed in Chapter IV; several especially vital characteristics will be reemphasized here. The theoretical construct, itself, represents a holistic approach to human behavior and relies heavily on psychoanalytic techniques. Economic behavior in a family is viewed as one aspect of total behavior. (This is similar to Clarkson's view where he regarded a theory of consumer demand as a part of the general theory of decision-making.)1 Because of the holistic foundation of the theoretical construct, the whole person, as a creative organism with great potential for healthy behavior, is emphasized. As discussed by Dubos, this approach also leads to an attempt to comprehend the totality of human problems. This differs from the method of the reductionist who selects and arranges phenomena to create formal patterns not precisely 1Geoffrey Clarkson, The Theory of Consumer Demand: A Critical Appraisal (Englewood Cliffs, N. J.: .Prentice Hall, Inc., 1965). 123 true to life.2 Since some basic principles of the construct were developed in clinical practice, psychoanalytic techniques are necessary in order to identify and measure these concepts. Recently, there have been increased attempts to reformulate psychoanalytic principles in empirically testable terms. More and more of these instruments are being made available. An important characteristic of the framework itself is the assumption of a single motive underlying all family economic behavior. Not all of psychology assumes singular; motivation, and it is here where difficulties between psychology and eco- nomics often arise. Rogers' theory does, however, postulate one motive; as such, it is compatible with economic theory. Eco- nomic "maximization of satisfaction" and psychological "self- actualization" appear to be different only semantically, both referring to a similar type of sole motivation. The addition of an operational definition of a "rational purchase" should enable such a purchase to be identified. Once this is done, some relationship between a fully-functioning person and rational purchases of families possibly can be estab- lished. It may well be that the ability to purchase rationally may be one characteristic of the fully-functioning individual. (This, indeed, represents a central derived hypothesis.) Both economic and psychological theorists are cognizant of the fact that the "economic man" or the "completely fully- functioning" person exists only hypothetically. Where 2R. Dubos, "Logic and Choices in Science," Proceedin s of the American PhiIOSOphical Society, CVII (1963), 555-7E. 124 psychological theory is valuable as a supplement to economics is in providing an explanation for behavior which deviates from this ideal. The understanding of concepts such as "needs for positive regard and self-regard," "incongruency between self and experience," "conditions of worth," and "work and emotion- ality" supplies clues to actual family, or individual, economic behavior. Concepts and principles of work-emotionality theory become more important as behavior deviates further from the hypothetical ideal. It is hypothesized that the fully- functioning person does not experience the same dependence on a group as do others. A family, whose members are not fully- functioning will have definite dependence on the family, as a group; therefore, an understanding of such group behavior is valuable in order to provide a more realistic explanation to family economic behavior. The second objective of this study dealt with the deri- vation of hypotheses. Eleven were derived; further analysis could undoubtedly provide many more. It was felt that these hypotheses, especially the first eight, indicated the type of explanation to family economic behavior that integration of these theories could provide and the type of testing necessary to validate the principles of the construct. One hypothesis appeared to be most comprehensive: "the more fully-functioning at least one family member is, the closer will family economic behavior approach rationality." In a sense, this hypothesis ties together the entire study, leads 125 to many other hypotheses, and provides clues for further research. The hypothesis takes into account the psychological reasoning for rational buying, and the type of families in which economic theory needs to be supplemented by small group theory. It also indicates that since economic behavior is but a part of total behavior, it is possible for individuals to be fully-functioning in this area of their lives, and therefore, to be rational buyers, despite the fact that they may not be totally fully-functioning. Most of the remaining hypotheses are related to this one over-riding hypothesis. Several are concerned with specific aspects of family economic behavior, such as: changes during the family life cycle; behavior during various group phases; and, purchases accompanied by a high degree of emotion. The importance of emotion is implicit throughout the construct, since behavior is viewed from an essentially psychoanalytic standpoint. This will be especially important during empirical testing. Empirical evidence relevant to all hypotheses is avail- able primarily in psychological investigations, not in specific expenditure studies. This follows from the fact that the entire theoretical construct, and therefore the derived hypotheses, represents an application of psychological theory to economic behavior. Evidence is limited at present; however, further studies in this general area (not related to money use, however, as far as can be ascertained) are in progress. In addition to empirical evidence, other defense for 126 these hypotheses rests on their relationship to the concept definitions, to the postulates and principles as stated, and to subjective observation of family economic activity. Specific evidence as to the significance of these hypotheses, and there- fore the validity of the principles, in explaining reasons underlying family economic behavior awaits their empirical testing. A secondary objective of this study was the evaluation of the use of this type of research in home management. Whereas some value of this method had been presupposed prior to the actual investigation, the work done relative to this study pro- vided further such evidence to the researcher. Opinions of others in various disciplines upheld this view3 and actual analysis, even on this level, of theoretical frameworks from other disciplines indicates the many ways that integration can be accomplished in an apparently fruitful manner. The value of this method of research is, quite naturally, particularly per- tinent in an applied science, since such a science, by its very definition, involves the application of concepts and principles native to other disciplines. Would not investigation of these basic disciplines then indicate the most relevant concepts, as well as the theories in which they are embedded, therefore expanding the basis of knowledge within the applied field? There appears to be little question that such a step in 3Opinions of several researchers were discussed in the Review of Literature. See particularly Common Frontiers of the Social Sciences, ed. Mirra Komarovsky (Glencoe, 111.: he Free Press, 1§57), PP. 22-29. 127 scientific inquiry is valuable. Of course, complete evaluation of this type of research must await empirical testing of the derived hypotheses. Implications of the Study As has been indicated, this specific investigation marked only a beginning in study aimed toward explanation of some aspects of family economic behavior, particularly in respect to rational buying. As such, it resulted in consider- able implications for future researchers in the area. To indicate the type of research which will be neces- sary, one hypothesis was further analyzed. This analysis helps to clarify the fact that the derived hypotheses are researchable and points out specific methods for empirical testing. Hypothe- sis one, which is the most comprehensive and has been discussed briefly earlier in this chapter, was chosen for analysis. It states that "the more fully-functioning at least one family mem- ber is, the closer will family economic behavior approach rationality." The broad scope of the hypothesis can result in several research projects. The following are readily identifi— able: 1. Measurement of the degree to which each family member is fully-functioning in the economic sphere of life. 2. Use of a values-determination test to aid in identify- ing rational purchases for individuals and families. 3. Correlation of the degree to which family members are fully-functioning, economically, with the degree of rationality present in family expenditure patterns. (A method would be needed to help identify the classes of goods which were associated with certain values or value clusters, for the family in question.) 128 4. Where family members are not fully-functioning, economi- cally, an investigation of the relationship between rationality of purchases and group phases of behavior. As the above indicate, much of the needed research is methodological in nature. Instruments to measure various char- acteristics, relevant to family economic behavior, are needed. Many tests have been devised to identify values. How- ever, a test specifically identifying values related to money use is desired. This is the point, then, where research stem- ming from this hypothesis should begin. Q-methodology could be used throughout the entire study. A major reason for this is that the investigation will necessi- tate intensive study of families, thereby prohibiting the use of a large sample. In place of a study relying on a large num- ber of families, one relying on a large number of tests admin- istered to a small number of families will be used. Q-method- ology, which makes it possible for studies to be undertaken even on single cases, therefore, would provide the methodologi- cal foundation of the study. Stephenson introduced the major ideas of Q-methodology about ten years ago. Q—methodology is a set of statistical, philosophy-of- science, and psychological principles. . . . Factor analysis is reformulated. With respect to the phi— losophy of science, Q—methodology is in comport with logical analysis in important methodological aspects. . . . With respect to experimental method, Sir R. A. Fisher's great work on the design of experiments has contributed much. . . . We shall show how any person, in principle, can be made the subject of detailed factor and variance analysis. “William Stephenson, The Study of Behavigr: QrTechnique and its Methodology (Chicago: The University of Chicago Press, I§5339 PP. 1-20 129 The Q-technique can be applied to subjective as well as objec— tive behavior and has been used to test hypotheses derived both from Rogers' theory and from work-emotionality theory. Stephen- son maintains that "Q-technique has applications in every area where behavior is at issue since its concern is with segments of behavior, each a marked-off and separate event, yet always rooted in never ending personal history."5 Since an intensive study of family economic behavior is the prime concern and since Q—techniques have been used in studies related to Rogers' theory and work-emotionality theory, it appeansworthwhile to attempt the use of Q—methodology in the proposed study. To identify financial values, the forced Q—sort tech- nique can be used. In order to construct the instrument, values must be identified, as taken from literature, previous research, and subjective interpretation of observed financial behavior. A number of statements related to each value can then be set up. The source of these may be similar to the sources of the values themselves, with the addition of statements made by young mar- ried couples (who will constitute the eventual sample). These items should be submitted to a selected jury for sorting into their respective value categories, judging for ambiguities or bias, and rating for social acceptability. The social accept- ability rating may consist of a five-point scale ranging from 5--"I'd like very much to hear this said about me" to O—-"I'd dislike very much to hear this said about me." Both positive and negative statements regarding each value should be used; 51bid., pp. 542—45. 150 hence the need for the social acceptability index. Once the statements are selected, each can be placed on a separate card. The cards can be arranged in random order and then numbered consecutively. When the test is administered, the respondent would be asked to sort the statements in terms of a forced normal-distribution. For example, if 100 statements were used, the distribution would be as follows: Prefer Least Prefer Most Pile l 2 5 4 5 6 7 8 9 10 11 Number of Cards 2 4 8 12 14 2O 14 12 8 4 2 Once the sorting is completed, the respondent would indicate the number of the pile in which each statement was placed on a separate answer sheet. This type of sorting would indicate the relative dominance of each stated value. Since this test would need to be given to both husband and wife, an effort would then need to be made to develop an index of family values. Use of indices with the Q—sort technique were tested by Morsh.6 The groups with which he worked were larger than family groups and possessed some different characteristics. However, there is no reason to believe that an index of family values cannot be derived. It can, perhaps, be based on the strength of specific values of each family member. The next problem--identifying classes of goods with aspecific values or value c1usters--is somewhat more complex. 6Joseph Morsh, "Q—Sort Techniques as a Grou Measure," Educational and Psychological Measurement, XV (1955 , 391-95. 131 Methodological work is certainly needed in this area. There is much available evidence that values serve as the criteria for evaluating commodities.7 It is also generally believed that one commodity can satisfy many different values for different individuals, and perhaps even for the same individual. However, it is logical to conceive that one value, or at least a value cluster, can be the primary motivator behind any one purchase. The problem then becomes one of connecting the values with the goods for specific individuals or families. Methodological work in this area is definitely explora- tory. An attempt could be made to develop a Q—sort instrument to identify values with goods. It is assumed that several sorts would be required. One possibility is that a list of items could be selected; these would be such that they could be pur- chasable by the sample group, in order to make the sorting real— istic. Statements representing each value would be listed for each item. Sorts would then answer questions, such as: "For which of these reasons would you be most likely to buy a tele— vision set?" A sort will be made for each selected item. If values identified with a certain item are similar to those identified in the values-identification test, it could be assumed that those items would more likely be found in the expenditure pattern. In order to validate this, actual expendi— ture pattern would need to be studied over a period of time. 7See M. E. John, "Classification of Values that Serve as Motivators to Consumer Purchases," Journal of Farm Economics, XXXVIII (1956), 956-65. 152 Once the foregoing has been accomplished, the degree to which family members are fully-functioning could be correlated with the degree of rationality present in their expenditure pattern. Instruments to measure the degree to which a person is fully-functioning have been developed by Chodorkoff.8 These instruments identify an individual's self-concept and his experience. (Chodorkoff uses the term "objective description" in place of experience.) Essentially, a comparison is made between "what I am," as seen by the respondent, with "what he is," as seen by others. The image as seen by others constitutes "experience" or "objective description." This is generally given by a panel of experts and based on a series of psycholog- ical tests taken by the respondent. The greater the similarity between the respondent's view of self and the experts' view of him, the greater is the congruency present and therefore the greater the degree to which he is fully-functioning. According to the operational definition assigned to rationality, it exists when items purchased are those associated with the "true" values as identified with the purchaser. (As is indicated in Appendix A, "true" values here refer to those which arise from the self as locus of evaluation. In order to determine these, two values-identification tests may need to be used: one to identify "what I do"—-"real" values; and one to identify "what I would like to do"--"true" values.) Specific 8B. Chodorkoff, "Self-Perception, Perceptual Defense, and Adjustment," Journal of Abnormal and Social Psychology, XLIX (1954), 508-12. 133 hypotheses which could be tested here include: 1. The more fully-functioning at least one family member is, the more similar will be value patterns of individ- ual members. (Therefore, purchases reflecting an~ individual's value pattern actually may be reflecting the family's value pattern.) 2. Families which include at least one fully-functioning member are more likely to exhibit similar value pat- terns. 5. The more fully-functioning at least one family member is, the more often will purchases reflect the "true" value patterns of individuals or of the family. 4. In families where no members are fully-functioning, the greater the degree of inquiry behavior as opposed to acting-out behavior, the greater will be the degree of rationality in purchases. In families with at least one fully-functioning member, it would be advisable to study carefully the expenditures over a period of time. It is assumed that they may tend to adhere more closely to economic principles of demand, buying more when prices fell, buying less when prices rose, and generally follow- ing the principles of economic consumption theory. Testing of this one comprehensive hypothesis would be a complex project, including several sub—projects. As was indi- cated, a logical starting point appears to be the construction of instruments to identify financial values and items related to these values. Once this were accomplished, present instru- ments, to measure degree to which family members are fully- functioning, could be used or slightly modified. The major task of correlating degree to which family members are 9Abraham Maslow, "A Modern Approach to Values," Journal of Abnormal and Social Psychology, LIX (1964), 154 fully-functioning with degree of rationality present in their expenditure pattern could then be approached. In addition to the theoretical values of this study, its potential use in financial counseling can be mentioned. Use of the instruments, when formulated, may be helpful in identifying reasons for family problems in this area. In addi— tion, if testing validates the principles, they can prove to be valuable in helping to explain general decision-making prac- tices of families, as well as economic behavior. Generally, this type of research can be pertinent in many areas of home management and family economics. As inte- grative, applied areas, they may be able to serve best by study- ing what is available in related disciplines, sorting it for existing similarities and differences, integrating it where possible, and testing the results of these integrations. With its primary focus on the family as it is affected by all areas, home economics can help itself, basic disciplines, families, and society as a whole, by ad0pting a more definite integrative approach to research. In a complex society such as ours, stud— ies can no longer be justified simply by their adherence to the solution of one, very specific, narrow problem. Boundaries of research must expand, and home economists, too, must take an interest in the solution of problems of broad magnitude. BIBLIOGRAPHY Books Ackerman, Nathan W. The Psychodynamics of Family Life. New York: Basic Books, Inc., 1958. Adler, A. Social Interest. London: Faber & Co., 1958. Allport, Gordon. Personality: A Psychological Interpretation. 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"An Interpretation of Clothing Behavior Based on Social-Psychological Theory." Ph.D. thesis, Ohio State University, 1959. INTRODUCTION TO APPENDICES The following three appendices define terms as used in this study: general terms, economic concepts, and psychologi- cal concepts. For the most part these definitions are simply operational: An operational definition is a definition in terms of experimental operations required to determine whether the expression being defined applies in a given case.1 lArthur Pap, An Introduction to the Philosophy of Science (Glencoe, 111.: The Free Press, 1962), p. 422. 148 APPENDIX A DEFINITIONS OF GENERAL TERMS Concept.--A concept is a fundamental judgment. Con- cepts are related in laws by uniform assertions.l Decision-making.--Decision-making refers to a dynamic series of interrelated activities which ultimately results in choice. Family income.--Family income is the disposable money income of all members of the immediate family. Family economic activity, family economic behavior; and family moneyusg.--These three terms are taken to be synonymous in this study. They refer to the methods by which the immedi- ate family decides how to use family income. Fully-functioning.--In this study, an individual is considered to be fully-functioning when congruence exists between self and experience.2 lNorman Campbell, "The Structure of Theories," Readings in the Philosophy of Science, eds. Herbert Feigl and May Brod- beck (New York: Appleton-Century-Crofts, Inc., 1955). 2This definition is based on Carl Rogers, "A Theory of Therapy, Personality, and Interpersonal Relationships, as Developed in the Client-Centered Framework," Psychology: A Study of a Science, Vol. 5, ed. Sigmund Koch (New York: McGraw- ill Book 0., Inc., 1 and B. Chodorkoff, "Self-Perception, Perceptual Defense, and Adjustment," Journal of Abnormal and Social Psychology, XLIX (1954), 508-512. 149 150 Hypothesis.--A hypothesis is an assumption of a fact or connection of facts from which can be deduced an explanation of a fact, or connection of facts.5 It is a statement which is open to test. Postulate.--Postulates are initial, underived statements 4 which are assumed to hold in a theoretical construct. Principle.--A principle refers to a statement which follows from a set of basic postulates. They represent sum— maries of a researcher's preconvictions. Their validity is dependent on empirical testing of derived hypotheses.5 Rational.--In this study, rational behavior refers to that which is consistent with one's "true" values. A rational purchase, therefore, reflects one's "true" values. Theoretical construct. theoretical framework. and theory.--These three terms are taken to be synonymous in this study. They refer to a set of postulates and principles pro- pounded for the purpose of explaining and predicting phenomena 6 and result from systematic consideration. Values.--A value is a concept by which things are graded 3James Baldwin, Dictionary of Philosophy and Psychology (New York: The Macmillan Co., 1925). 4Arthur Pap, An Introduction to the Philosophy of Science (Glencoe, 111.: The Free Press, 1962), p. 101. 5Herbert Thelen, "Work-Emotionality Theory of the Group as Organism," Ps chology: A Study of a Science, Vol. 5, ed. Sigmund Koch ( ew ork: McGraw-Hill Book Co., Inc., 1959), p. 569. 6Pap, op. cit., p. 426. 151 or ranked in comparison to other things. This study refers to two types of values. "True" values are taken to be those which arise from the organismic valuing process. "Real" values are those which result from a reliance on others as the locus of evaluation.7 7Paul Taylor, Normative Discourse (Englewood Cliffs, N. J.: Prentice-Hall, Inc., 1961), p. 4. APPENDIX B DEFINITIONS OF ECONOMIC CONCEPTS Anticomplementarity.--If, when X is cheapened and more of it is bought, so much less of Y is bought that there is more money left for Z (even though less money than before must be available for Y and Z together) then Y is anticomplementary with x.1 Complementarity.--If more of Y is bought when more of X is bought (because X has become cheaper), then Y is comple- mentary with X.2 Demand.--Demand for a good is defined as the various quantities of it which consumers will take off the market at all possible alternative prices, other things equal.5 Economic equilibrium of consumer.--A consumer is in equilibrium when his expenditures on different goods and serv- ices yield maximum satisfaction. No move on his part can increase his satisfaction but, rather, will decrease it.4 1Abba Lerner, "The Analysis of Demand," The American Economic Review, LII (1962), 787. 21bid., p. 786. , 3Richard Leftwich, The Price System and Resource Allo- cation (New York: Holt, Rinehart & Winston, 1960), p. 27. 4Ibid., p. 560. 152 155 Elasticity of demand.--Elasticity of demand is the relative change in quantity divided by a corresponding relative change in price. It describes how quantity changes relative to its base as price changes relative to its base. When a small increase in the price of a commodity leads to a relatively large reduction in the quantity taken and a small decrease in price leads to a relatively large increase in the quantity taken, demand is said to be highly elastic. When a given increase in the price of a commodity leads to a relatively small reduction in the quantity taken and a small decrease in price leads to a relatively small increase in the quantity taken, demand is said to be highly inelastic.5 Income effect.--Income effect is the change in the quantity of good bought as a result of change in real income, relative prices remaining the same.6 Indifference curve.--A single indifference curve shows the different combinations of X and Y which yield equal satis- faction to the consumer, or among which the consumer is indif- ferent. Greater amounts of satisfaction than that obtained on indifference curve I are shown by higher indifference curves. All combinations on one indifference curve are of equal satis- faction to the consumer. All combinations on higher indiffer- ence curves are preferable to those lying on lower indifference curves. No inferences can be made with regard to the amount of 5Willard Cochrane and Carolyn Bell, The Economics of Consumption (New York: McGraw—Hill Book Co., Inc., 1956), PP- 3 -5 . 6Lerner, op. cit., p. 785. 154 satisfaction gained in moving from a lower to a higher indiffer- ence curve, nor are such inferences necessary. The entire system of indifference curves for a consumer is called an indif- 7 ference map. Inferior good.--An inferior good is a good of which less is bought (and therefore less income is spent on it) when income increases.8 Line of attainable combinations.--Line of attainable combinations indicates all combinations of two commodities which the consumer's income will allow him to take.9 Marginal rate of substitution.--Marginal rate of sub- stitution refers to the amount of Y the consumer is just will- ing to give up to get an additional unit of X.10 Normal good.--A normal good is a good of which more is bought when income increases, but not so much more as to leave less income for everything else.11 Opportunity factors.—-Opportunity factors include the price of commodities and the consumer's income. The opportunity factors are summed up in the consumer's line of attainable com- binations.12 7Leftwich, o . cit., pp. 70-72. 8Lerner, op. cit., p. 784. 10 9Leftwich, op. cit., p. 76. Ibid., p. 72. ll 12 Lerner, o . cit., p. 784. Leftwich, op. cit., p. 76. 155 Price effect.--Price effect may be direct or indirect. The direct price effect is the effect of a change in the price of a commodity on the quantity of that commodity bought (the real income level being kept constant by an adjustment of money income). The indirect price effect is the effect of a change in the price of a commodity on the quantity bought of another commodity (the real income level being kept constant by an adjustment of money income).13 Superior good.--A superior good is a good of which so much more is bought when income increases that more than the whole increase in income is absorbed (and less is therefore left available to be spent on everything else.)14 Utility.--In this study utility is synonymous with satisfaction and refers to a feeling of well-being, as deter- mined by the individuals or family in question. 15Lerner, op. cit., pp. 785-86. 14Ibid., p. 784. APPENDIX C DEFINITIONS OF PSYCHOLOGICAL CONCEPTS The following definitions explain the terms used in Rogers' theory (Group One)1 and in work-emotionality theory (Group Two)2. Group One Accurate symbolization.--This refers to the fact that the hypotheses which are implicit in the individual's aware- ness will be borne out if tested by acting on them. Actualizing tendency.--This is the inherent tendency of the organism to develop all its capacities in ways which serve to maintain or enhance the organism. (It involves not only the tendency to meet deficiency needs--for food, water, air, and so on--but also development toward differentiation of organs and of functions, expansion in terms of growth, expansion of effectiveness through use of tools, expansion and enhancement 1These definitions are taken from Carl Rogers, "Therapy, Personality and Interpersonal Relationship," Ps cholo : Stu of a Science Vol. , ed. Sigmund Koch (New York: McGraw— Hill Book Co., Inc., 1959;, pp. 196-212. 2These definitions are taken from Herbert Thelen, "Work-Emotionality Theory of the Group as Organism," Psychology: A Study of a Science. Vol.5, ed. Sigmund Koch (New York: McGraw-Hill Book Co., Inc., 1959), pp. 544-611. 156 157 through reproduction. It is develOpment toward autonomy and away from heteronomy or control by external forces. This basic actualizing tendency is the only motive postulated in this system.) Anxiety.--This is a state of uneasiness or tension whose cause is unknown. From an external frame of reference, anxiety is a state in which incongruence between concept of self and total experience of individual is approaching symbol- ization in awareness. When experience is obviously discrepant from self-concept, defensive response to threat becomes increas- ingly difficult. (Anxiety is the response of the organism to the subception that such discrepancy may enter awareness, thus forcing change in self-concept) Availability to awareness.-—When an experience can be symbolized freely, without distortion or denial, then it is available to awareness. Awareness. symbolization. consciousness.--These three are defined synonymously, as the symbolization of some of our experience. Awareness then is seen as the symbolic representa- tion (not necessarily in verbal symbols) of some portion of our experience. Congruence. congruence of self and experience.--When self—experiences are accurately symbolized, and are included in the self—concept in this accurately symbolized form, then the state is one of congruence of self and experience. (If this were completely true of some specific aspect of experience, such as the individual's experience in a given relationship or 158 in a given moment of time, then we can say the individual is to this degree in a state of congruence.) Conditions of worth.--Self-structure is characterized by a condition of worth when a self-experience or set of related self-experiences is either avoided or sought solely because the individual discriminates it as being less or more worthy of self-regard. (A condition of worth arises when the positive regard of a significant other is conditional, when the individual feels that in some respects he is prized and in others not. Gradually the same attitude is assimilated into his own self- regard complex, and he values an experience solely because of these conditions of worth which he has taken over from others, not because the experience enhances or fails to enhance his organism. Thus a condition of worth, because it disturbs the valuing process, prevents the individual from functioning freely and with maximum effectiveness--individua1 values an experience positively or negatively as if in relation to criterion of actualizing tendency, but not actually in relation to it. Experience may be perceived as organismically satisfying when in fact this is not true.) Contact.--Two persons are in psychological contact, or have the minimum essential of a relationship, when each makes a perceived or subceived difference in the experiential field of the other. Defense. defensiveness.--Defense is the behavioral response of the organism to threat, the goal of which is 159 maintenance of current structure of self. (This goal is achieved by perceptual distortion of the experience in aware- ness, in such a way as to reduce incongruity between the exper- ience and the structure of self, or by the denial to awareness of an experience, thus denying any threat to self.) Distortion in awareness. denial to awareness.--Material significantly inconsistent with the self concept cannot be directly and freely admitted to awareness. When an experience is dimly perceived (or subceived) as being incongruent with self-structure, the organism appears to react with a distortion of the meaning of the experience, (making it consistent with self) or with a denial of existence of the experience, in order to preserve self-structure from threat. Empathy.--The state of empathy means to perceive the internal frame of reference of another with accuracy, and with emotional components and meanings which pertain thereto, as if one were the other person, but without ever losing the "as if" condition. (If the "as if" quality is lost, then the state is one of identification.) Experience (noun).--This includes all that is going on within the envelope of the organism at any given moment which is potentially available to awareness. (This is a psychological, not physiological, definition and refers to the given moment, not to accumulation of past experience. It does not include neuron discharges or changes in blood sugar--they are not directly available to awareness; it includes influence of memory of past experiences, as these 160 are active at the moment, in restricting or broadening meaning given to various stimuli.) Experience (verb).--To experience means to receive in the organism the impact of the sensory or physiological events which are happening at the moment. Extensionality.--If a person is reacting or perceiving in an extensional manner he tends to see experience in limited, differentiated terms; to be aware of space-time anchorage of facts; to be dominated by facts, not by concepts; to evaluate in multiple ways; to be aware of different levels of abstrac- tion; and, to test his inferences and abstractions against reality. External frame of reference.--To perceive solely from one's own subjective frame of reference without empathizing with the observed person or object, is to perceive from an external frame of reference. Feeling. experiencing a feeling.--This denotes an emo— tionally tinged experience, together with its personal meaning. (It includes the emotion and the cognitive content of the mean- ing of that emotion in its experiential context. It refers to the unity of emotion and cognition as they are experienced inseparably at that moment. For example: "I feel angry at myself," "I feel ashamed of my desires when I am with her.") Ideal self.--This is the term used to denote the self- concept which the individual would like most to possess. Incongruence between self and experience.--A discrep- ancy frequently develops between the self as perceived, and the 161 actual experience of the organism. Thus the individual may perceive himself as having characteristics a, b, and c, and experiencing feelings x, y, and z. Inaccurate symbolization of his experience would, however, indicate characteristics c, d, and e, and feelings v, w, and x. When such a discrepancy exists, the state is one of incongruence between self and experience. Intensionality.--This term covers the frequently used concept of rigidity but includes a wider variety of behaviors than are generally thought of as constituting rigidity. If a person is reacting or perceiving in an intensional fashion he tends to see experience in absolute and unconditional terms; to over-generalize; to be dominated by concept or belief; to fail to anchor his reactions in space and time; to confuse fact and evaluation; and to rely upon abstractions rather than upon reality-testing. Internal frame of reference.--This is all of the realm of experience which is available to the awareness of the indi- vidual at a given moment. It includes the full range of sensa- tions, perceptions, meanings, and memories, which are available to consciousness. (It is the subjective world of the individual; only he can know it fully.) Locus of evaluation.--This term indicates the source of evidence as to values. (Thus an internal locus of evaluation, within the indi- vidual himself, means that he is the center of the valuing 162 process, the evidence being supplied by his own senses. When the locus of evaluation resides in others, their judgment as to the value of an object or experience becomes the criterion of value for the individual.) Openness to experience.-—When the individual is in no way threatened, he is open to his experience; it is the polar opposite of defensiveness. 'Every stimulus is freely relayed without being distorted or channeled off by a defensive mechan- ism. There is no need of subception whereby the organism is forewarned of experiences threatening to self. Organismic valuing process.—-This concept describes an ongoing process in which values are never fixed or rigid, but experiences are being accurately symbolized and continually and freshly valued in terms of the satisfactions organismically experienced; organism experiences satisfaction in those stimuli or behaviors which maintain and enhance the organism and the self, both in immediate, present, and in long range. Actualiz- ing tendency is thus the criterion--a satisfying diet which in the long run most enhances development. Perceive. perception.--Perception is a hypothesis or prognosis for action which comes into being in one's awareness when stimuli impinge on the organism. (When we perceive "this is a tree," it means that we are making a prediction that the object from which the stimulus is received would, if checked in other ways, exhibit properties we have come to regard, from our past experience, as being characteristic of trees. We might say perception and awareness 165 are synonymous, perception being narrower and used to emphasize importance of stimulus in the process, and awareness the broader term, covering symbolizations and meanings which arise from internal or external stimuli.) Positive regard.--If the perception by me of some self- experience in another makes a positive difference in my exper- iential field, then I am experiencing positive regard for that individual. In general, positive regard includes attitudes such as warmth, liking, respect, sympathy, acceptance. To perceive oneself as receiving positive regard is to experience oneself as making a positive difference in the experiential field of another. Positive self-regard.--This term denotes a positive regard satisfaction which has become associated with a particu- lar self-experience or a group of self-experiences, in which this satisfaction is independent of positive regard transactions with social others. (Though it appears that positive regard must first be experienced from others, this results in a posi- tive attitude toward self which is no longer directly dependent on attitudes of others. The individual becomes his own signifi- cant other.) Psychological adjustment.--This exists optimally when concept of self is such that all experiences are or may be assimilated on a symbolic level into the gestalt of the self- structure. (It is synonymous with complete congruence of self and experience, or complete openness to experience.) Psychological maladjustment.--This exists when the 164 organism denies to awareness, or distorts in awareness, signifi- cant experiences, which consequently are not accurately sym- bolized and organized into the gestalt of self-structure, thus creating an incongruence between self and experience. Regard complex.--This refers to all those self- experiences, together with their interrelationships, which the individual discriminates as being related to the positive regard of a particular social other. Self. concept of self.4self-structure.--These refer to the organized, consistent conceptual gestalt composed of per- ceptions of the characteristics of the "I" or "me" and the per- ceptions of the relationships of the "I" and "me" to others and to various aspects of life, together with the values attached to these perceptions. (It is a gestalt available to awareness, though not necessarily in awareness; it is fluid and changing, but at any given moment it is a specific entity capable of being at least partially defined in operational terms. Self or self-concept usually refers to a person's view of himself; self-structure is used when looking at this gestalt from an external frame of reference. Self-experience.--This is any event or entity in the phenomenal field discriminated by the individual which is also discriminated as "self," "me," "I," or related thereto. Self- experiences are the raw material of which the organized self- concept is formed. Subceive. subception.--This signifies discrimination 165 without awareness. (The organism may discriminate a stimulus and its meaning without utilizing higher nerve centers involved in awareness. This capacity permits one to discriminate an experience as threatening, without symbolization in awareness of this threat.) Tendency toward self-actualization.--Following develop- ment of self-structure, this general tendency toward actualiza- tion expresses itself also in actualization of that portion of experience of the organism which is symbolized in the self. Threat.--This is a state which exists when an experience is perceived or anticipated (subceived) as incongruent with the structure of self. (It is an external view of the same phenom- enon which, from the internal frame of reference, is anxiety.) Unconditional positive regard.--If the self-experiences of another are perceived by me in such a way that no self- experience can be discriminated as more or less worthy of posi- tive regard than any other, then I am experiencing unconditional positive regard for this individual. To perceive oneself as receiving unconditional positive regard is to perceive that of one's self-experiences none can be discriminated by the other individual as more or less worthy of positive regard. It means that a person is valued, irrespective of differential values placed on his specific behaviors. Unconditional self-regard.--When the individual per- ceives himself in such a way that no self-experience can be discriminated as more or less worthy of positive regard than any other, then he is experiencing unconditional self-regard. 166 Vulnerability.--This refers to the state of incongruence between self and experience when it is desired to emphasize potentialities of this state for creating psychological dis- organization. (If a significant new experience demonstrates this dis- crepancy so clearly that it must be consciously perceived, then the individual will be threatened, and his concept of self dis- organized by this contradictory and unassimilable experience.) Group Two Basic assumption of group purpose or need.--This refers to the stress or pressure on all members of the group. How— ever, this concept may not be within the perceptual field of a member; some members are usually quite unaware of this sort of influence even though they appear to react to it. Emotion.--This refers to affective behaviors which are communicated directly and nonverbally and are sensed directly. Emotionality.--This is a primitive, unlearned direct reaction, responding to the unconscious needs of the group to maintain itself in the face of stress from within or from with- out. This concept of emotionality is divided into four dis- tinguishable kinds: 1. Fight, which is an expression of aggression toward the problem, the group, an outside agency, the leader, the self, or anything else; 2. Flight, which is any behavior of "running away" from stress by joking, daydreaming, incoherent rambling dis- cussion, "academic" presentation, and so on; 5. Dependency, which is shown by any behavior which seeks aid from outside the person; and 167 4. Pairing behavior, which includes intimate remarks made privately to anotherindividual, "reaching out" to others with expression of warmth, approval, or agreement, or even, by extension, a warm statement to the group. Egggp.--This is a number opreople who think they are a group and act like one; there is some "communal thing" affect- ing all members. In this case, it is postulated that this "communal thing" is a basic assumption of group purposes or need. Given this, the fundamental problem of the group is to mediate between the psychological, inner directed needs of indi- viduals and the demands of the environment, as perceived by individuals. Group culture.--This includes the body of agreements, values, common perceptions, and common expectations developed through communication while working together. These various networks are perceived as belonging to the group as a whole. This culture, including the shared self-concept of the group as a unitary whole, becomes in itself an object to promote intermember and member-group identification or loyalty. Group factors.--These are categories descriptive of stresses which exist by virtue of the interactive networks among individuals rather than by virtue of what each individual independently brings into the group. Group leadership.--This refers to the development of means for controlling and selecting and actualizing needed con- tributions. Group maintenance.--This refers to the development and stabilization, during each phase of group life, of a situation 168 of dynamic interplay such that the most imperative needs of individuals can be met. Group phases.-—This refers to differences in moods or different emotionalized states of being, as well as different types of work going on, i.e., different kinds and degrees of emotion and work are found in a group at different times. Individual factors.--These are categories of stresses to which individuals are sensitive and of means individuals use to deal with stresses. Personality.--This refers to the unique patterning of drives or predispositions of an individual subsystem. Process problems.--These arise in the efforts of the group to organize itself to work on task problems and in its efforts to maintain itself as a group. They are hidden agendas of a group; as implicit problems, therefore, they are diagnosed through interpretation. Process problems come from social interrelations within the group, not from the internal individual subsystem per se. Stress.—-This refers to a state marked by ambivalence, conflict, and anxieties and arises from the working out of relationships between emotionality and work. Task problems.--These are equivalent to external prob- lems or problems in the external structure, but they come from needs arising from within the group and are projected into the environment (externalized) by action of the group itself. (In other words, environmental factors are brought into the group tasks through processes of opinion exchange and group decision. 169 These provide a necessary vehicle and frame of reference for group maintenance.) Tension.--This term describes the tonus or state of mobilization of drive-pattern. Work.—-This is sophisticated reality seeking, using conscious problem-solving methods; the ability to work is learned. This concept of work is divided into four distinguish- able kinds: 1. 2. 5. Individual work, in which the person is intent on his own private interest and concerns; Group "housekeeping," in which the group is making routine decisions; Task--or goal--directed work, in which the group has a clear purpose and is trying to collect information, make suggestions, select a course of action, evaluate suggestions, and so on; and "Integrative" work, which pulls the whole enterprise together. nICHIGAN STATE UNIV. LIBRARIES WW1||HAIW|NNN|IHIM“HUMAN 31293013947340