This research is inserted in the analysis of the current purchase process towards ethical products, in which explore the attributes inside ethical products, the evaluation of the factors influence the decision making that closure the attitude behaviour gap, and provide recommendations in how to influence this ethical issue inside the process.
Rise and fall of Kulula.com, an airline won consumers by different marketing ...
Decision making process towards ethical products during economic downswings
1. MBA Dissertation
An investigation of the decision making process
towards ethical products in economic
downswings: a case study of an Idealistic
Consumer Behaviour
Milagros Ponce 78736 July 2012
MBA Dissertation
An investigation of the decision making process
towards ethical products in economic
downswings: a case study of an Idealistic
Consumer Behaviour
Milagros Ponce 78736 July 2012
MBA Dissertation
An investigation of the decision making process
towards ethical products in economic
downswings: a case study of an Idealistic
Consumer Behaviour
Milagros Ponce 78736 July 2012
2. Abstract
This research is inserted in the analysis of the current purchase process towards
ethical products, in which explore the attributes inside ethical products, the
evaluation of the factors influence the decision making that closure the attitude
behaviour gap, and provide recommendations in how to influence this ethical issue
inside the process.
This arises from the data of a quantitative studies related with ethical products, in
which describe the 30:3 phenomenon linked with the attitude behaviour gap. The
case study was focused on the qualitative description of data collected by 8 semi
structured interviews, using a hybrid strategy with thematic analysis.
The findings related the major role of motivation as a moderating variable allowing
prevalence of an idealistic approach to the decision making in economic
downswings. In addition it gives to the fore the questionnaire bias weaknesses,
adding the importance of qualitative approach in Market research. Finally the
research limitation is the sample size for generalisation, and the implication for
companies to enhance CSR by ethical attributes inside their value chain.
This research provides a better understanding of a decisional model oriented to
ethical issues.
Keywords: Consumer behaviour, motivation, market premium, Idealistic
3. 5.1 Introduction
The next above present the main conclusion in order to answer the main research
question answer based on the findings and contributions of this research. Only this
part was extracted from the main dissertation for Publishing purposes.
5.2 Conclusion
The conclusion for this study is in aim to answer the main research question which
is What makes ethical consumers buy ethical products during economic
downswings. The question resulted from an amount of the research based on
theoretical concept to underpin the final answer. Given the fact that the study
emerge from the statistics issue of the 30:3 gap, this implies the exploration of this
numerical finding inside the ethical market, which revealed a serious problem in the
reliability of the data instrument in trying to point the real demand of these ethical
products. Thus one of the reasons in choosing the qualitative approach is to
provided rich data for the exploration to be later explained (De Bock and Kenhove
2010; Carrington et al. 2010; Sommer, 2011; Papaoikonomou, 2011; Bondy and
Talwar, 2011; Key Note, 2011; Brown 2012).
The first aim was to critically analyse the current purchase process on consumers
towards ethical products. The study shown that the process initiates with one
cognitive theoretical model which is the consumer decision making, influenced by
intrinsic and extrinsic factors. This aim was fragmented in three parts, the first one
is the analysis of the ethical product attributes that initiates the decision making
towards the purchase. Second is the discovering of the intrinsic factor that boost
the choice; and third the external factors influencing the final purchase. The last
two were compared in order to evaluate their effect over the decision making
(Howard and Sheth, 1969; Blackwell Miniard et al. 2001; Bray, 2008; Babin and
Harris, 2011).
Given the fact that the individual in this study certify the need recognition as initial
point in Decision Making Blackwell, Miniard et al. (2001), this leads to achieve the
first objective. This is presented as ethical products attributes described by
4. environmental concern, fairtrade, health and animal welfare. This attributes
positioned in the consumer mind make an easier from extensive problem solving to
limited problem solving, which is supported by past experiences and purchasing
habits, simplifying their process (Shawn and Newholm, 2002; Sommer, 2011).
The exploration of ethical attributes is related in the second objective which is the
factors behind the ethical choice. Once the individuals acquire certain knowledge
related with their impact or harm (Sun et al. 2012), inmediately boost a change on
their action, as it is shown in terms of ritual experience helping aids, family values,
they are known as motivational factors (Bray 2008; Babin and Harris, 2010; Brown,
2011). This motivation is the evolution from a particular stimulus, that is learned
through the time, building up determined attitudes. As a consequence enables the
closure of attitude behaviour gap, in which as stronger a person maintains his
beliefs, stronger is his predictive action Ajzen (2011). In addition the variable of
perceived behavioural control acts as a the projection or the thinking about the
impact of the their ethical actions (Ajzen, 1991; Fukukawa, 2002; Shaw and Shiu,
2006; Carrington et al. 2010)
This purchase behaviour are putting in practice inside the actual economical
reality, which price sensitivity is much higher in recession times, and given the fact
that ethical products (faitrade, animal welfare, environmentaly oriented, health) is a
growth market premium (Bondy and Talwar, 2011; Key Note 2011), makes the
demand inelastic (Key Note, 2011). This is due to the new trade off mainstream,
in which other factors are considered besides price, which relies on these ethical
consumers practices that sustain this market (Carrigan et al. 2006; Young et al.
2010; Luchs, 2010). Moreover they are affected in certain minimal extent by the
price sensitivity due its beliefs attachments (Carrigan and De Pelsmacker, 2009;
Bondy and Talwar). Thus motivation is the moderating factor towards individual
behaviour in tough economic circumstances. Another reason for the sustainability
of this market is because many diverse ethical attributes are inside these products.
The participants beliefs about this ethical products are reflected in the interviews,
which their judgement opinion relies in the meaning value towards sustainability as
5. well as their acknowledge about the convergence of the price and this value (Ajzen
2011; White et al. 2012). Moreover their views towards the industry responsibility
are mainly claims, because of company power in the market and their negative
environmental outcomes (Carrigan, 2006; Luchs, 2010; Young et al. 2010; Vancaly
et al. 2011).
This study also covered the experiences towards ethical products on the
participation on ethical organisations and communities, as main factors of
purchase decision. In which Education issue arises on the ethical selection, as it
not only implies consumption practices but the helping matter actions related to the
literature with Idealistic dimension of the ethical domain. Therefore this study came
to know that these practices can be applied as a model of good practice. Well, not
guided by the action itself to consume or pleasure which emphasizes the
materialistic sense, where every action has a motive. That is the fruition of this
consumer group ideals trespassing own convenience (Dean and Croft, 2009;
Carrigan, 2009; Lu and Lu, 2010; Kozar and Marcketti, 2011)
Furthermore this study reached the given objectives based in a qualitative basis in
order to identify the factors that close the attitude behaviour gap, which turns
effective the ethical purchase process on this individuals (Ajzen, 1991; Chen and Li
Ping, 2006; Jansson, 2010; Brown, 2011). This is a measure of the evaluation
between intrinsic over extrinsic factors in the given circumstances of this case
study. And the recommendations emerged underline Education as main agent into
enhance sustainability practices in terms of environment issues, health, fairtrade
and no harm products (Sun et al. 2010; Bondy and talwar, 2011). The Review
covered form a broad concept which is consumer behavior to narrow this topic in
which is included in behavioural models and ethical dimensions, circumbscribed in
price sensitivity influences (Blackwell, Miniard 2001; Hayer mcInnis, 2005; Bray
2008; Babin and Harris, 2010; Ajzen, 2011) The analysis of data based on the
Research design developed a rich exploration and explanation of the phenomenon,
confirming and testing the findings related with the theoretical background. The
6. limitations of this were the sample size, the research could be improves to acquire
mayor data and interacting in focus groups (Saunders, 2009; Bryman, 2012).
Despite the fact that particularity of the case, the ethical factor analysed underpin
the Ethical Market growth, which none study identified the explanatory reasons
from this ethical consumption that maintains sustainable. This is contextualised
within the theory of Planned behavior (Ajzen, 2011) with a Problem solving
situational model (Blackwell and Miniard, 2001; Babin and Harris, 2011), in which
beliefs and motivation enhances the closure of the attitude behaviour gap. The
study explained motivation as intervienening factor between the economic
environmet and decision making process. Which also at the same time exposure
the involvement level of individuals with the perceived value. (Howards and Sheth,
1969; Varey et al. 2002)
The contribution to this study in order to answer the Research Question is the
importance of the qualitative data which enabled to explore the idealistic dimension
of this ethical consumer putting in context its process in a TPB model, where it is
linked the individual altruistic issue or impact awareness with the Perceived
behavioural control in Ajzen model (Vitell et al. 2001; Shaw and Shiu, 2006; Bondy
and Talwar, 2011; Sun et al. 2012)
This ethical factors also pointed the simplified and frugal buying trends, not always
relying on brands. In which the ethical attribute is well defined in their trade off,
explained with the high effort route in their cognitive activity reinforcing those habits
(Shaw et al. 2002; Babin and Harris, 2011).
5.3 Managerial Implications
Since the market place is highly volatile due to the overall power of mass media
and consumers, and the unethical facts makes a great damage to the company like
cases related with Child Labour and pollution activites companies like Mattel and
7. Nike, brings to mainstream the context of ethical practices (Bondy and talwar,
2011).
This refers to the ethical activities in what do they do with their money, but how
they make it firstly, which is related mainly in the value chain activities. These
ethical practices link together with the company performance which is denominated
Corporate Social responsibility.
Since companies have major influences on consumption, have the main
responsibility to arise values in the society related with the welfare and impact over
others. These are subscribed on the universal values dominated by the ethical and
moral argument. This is how the companies like M & S redirected their objectives
to responsible practices rather than consumer oriented. Therefore it is important to
apply ethical practices changing the customer hedonistic focus into ethical
mainstream, which is aligned with customer approaches (Carrigan, 2009, Luchs,
2010)
Even though that fairtrade is a niche market, the yielded value has the ability to
consolidate the attribute on the prevailing the trade-off, but it also must be
reinforced by the Communications and Marketing means to increase the consumer
attitudes. (Key Note, 2011; Sun et al. 2012)
Also the natural phenomena impacted by climate change brought environmental
awareness, as natural disaster as Katrina Hurricane, world is not a safe place in
which gives to shine the responsibilities that people must convey. Thus this
environmental awareness becomes a common value between consumers and
companies. The CSR foundations does not seek to be more profitable but more
sustainable. (Vermeir and Verbecke, 2006; Vancaly et al. 2011; Bondy and Talwar,
2011).
8. 5.4 Research limitation
The limitation for this research is the number of the qualitative data, in a diverse
groups of ethical organisations. And the hipotesis limited to an explanation non
quantificable. It is a cross sectional study and no can be comparative in long term.
This as an inductive study limits the generality of the results. Also the sample
chosen was in UK, so leaves the exploration for other countries.
Additionally the research explore the intrinsic and extrinsic factor influencing the
consumer decision process. This research leaves a gap in the exploration of
relativistic consumer oriented to materialism approaches.
5.5 Future research
Finally it is important to emphasize the need of further qualitative research on the
relativistic choices in decision making process in order to explore the contrary of
this case, and more information is needed on the unrelisable actions of idealistic
consumers, and the major exploration on Marketing Communication effect on the
consumer towards the purchase decision. Furthermore the evaluation of the ethical
oriented companies and brand loyalties to sustain ethical practices.