Ethical clothing consumers - marketing mix for successful targeting2012 Towards graduation of Executive Masters in Marketing &Advertising Student: Anthea Missy Prof: Patrick De Pelsmacker Anthea.firstname.lastname@example.org Connectwith me on Linked
Introduction• Keywords >Ethical – sustainable – conscious – green – eco• Ethicalmarket X3 since 2000 in the UK• Ethicalclothingremains stable and a niche market (in UK 171 m£ - lessthan 1% of ethicalgoods’ expenditure – 0.5% of total 42 bn £ clothingexpenditure)• Few litterature on ethicalfashionconsumers and/or figures on potential/currentdemand• Ethical: for the good of the majority, making good to the majority with the least harm to other party• Ethical consumption : respects environment, human being from inception to floor• Ethical consumers: 30 % worldwide; 10 % of purists
LitteraturereviewDRIVERS OF ETHICAL CONSUMPTION:• Ethical cultural sensitivity ( Hofstede ; Inglehart 2005 ) : Anglo-nordic cluster and Japan• Buying ethically => sometimes not buying unethical goods, boycotts, anti- consumption• Clothing => high involvement product, consumers tend to look for detailed information on what they wear• Ethical clothing> mostly ‘fairly treated labour’, ‘bio cotton’• Clothing carries symbolic meaning => signal values and personality to others• Ethical clothing buyers => for themselves (experience of meaning), for others (express identity)
Litteraturereview - cont’dDRIVERS OF ETHICAL CONSUMPTION:• Ethical consumers: All age groups, gender, incomes, education level, but shared values• Post-materialistic values – need to be – quality orientation (GFK 2008)…• …Divided between need for peace and security vs. hedonism and pleasure• Barriers to buying ethical clothing : LACK OF AWARENESS AND INVOLVEMENT - NEGATIVE PERCEPTIONS OF BRAND AND STYLE ATTRACTIVENESS -LOW AVAILABILITY - MISUNDERSTOOD PRICING (COOPERATIVE BANK 2010, NICE 2011)• 25% people worldwide are willing to pay 10% more for ethical clothing (BCG 2008)• 30% of Belgians feel attracted by specialized ethical clothing shops while 30% do not believe in ethical claims (GFK 2008)
Methodology2 Research questions:A) Who is the ethical fashion consumer ?B) What is the marketing mix that should be used to attract ethical clothing consumers ?
Methodology1. Drawassumptionsregarding 4P’s expectations, based on litteraturereview2. Estimate 4P’s expectations of participants based on theiranswersraisedduring focus groups Rank individual expectations towards 4P’s from 0-5 Considering attitudinal and behavioural gap to estimateethicalsensitivity and actual consumer behaviourQualitative research => Focus group : 13 participants (4 F, 9 M) –22 to60 yo.
A) Whois the ethicalfashion consumer ?– consumer profiles TWO-FACED EXPLORERS TRENDY WHITE COLLARS EMOTIONAL CHOOSERS CONSCIOUS CONSUMERS CULTURAL CREATIVES
B) What is the marketing mix that should be used to attract ethical clothing consumers ? a) PRODUCT: CONSCIOUS CLOTHING CANNOT AVOID FASHION TRENDS AND STYLE Assumption 1: Ethical clothing products should at least satisfy same style and quality expectations than classic apparel goods. Ethical clothing should perform as well classic apparel on decisive buying criteria: comfort, quality, style Assumption 7: The first decisive buying criterion for target consumers is quality. Core aspects are comfort, quality, style for classic/ethical apparel No compromise on quality expected Style is very important (casual of fancy) Ethical clothing perceived as lacking style for most trendy consumers
B) What is the marketing mix that should be used to attract ethical clothing consumers ? b) PRICING: WILLINGNESS TO PAY AND “ETHICAL” PRICE Assumption 3: Pricing for ethical apparel goods is perceived as too expensive compared to quality and style of classic goods. Negative perception of quality/price ratio for ethical clothing “Poor style” perception => no worth it paying a higher price for clothes which are not flattering silhouette and style Often seen as “because it’s ethical it’s always far way over-priced compared to classic goods” Assumption 4: Pricing for ethical apparel cannot exceed 5%-10% compared to classic clothing goods of the same product category, in store. Majorityagreedtheywouldpay up to 10% for ethicalclothing Only if meeting quality, comfort, style expectations Only 1 person gave higherprices for ethicalclothing (up to 100%)
B) What is the marketing mix that should be used to attract ethical clothing consumers ? c) PROMOTION: LABELLING TO INCREASE AWARENESS AND ENGAGE, STORY TELLING TO DRIVE POSITIVE ATTITUDE AND PURCHASE INTENT Assumption 2 : Promotion is crucial to increase consumer’s awareness, positive attitude, and purchasing intent towards ethical clothing goods. The elements of promotion are labelling, transparency of production process and labour working conditions. Labelling => clear and transparent information on production processes; signaling item in store among other classic goods (packaging + care label) Information verification platforms => have insights on production processes via website, track accuracy of brand promise Interact with brand and people => promote or get reviews from others customers, testimonies of workers’ life improvement. Story telling => tell a story about how the product is ethically made and how it changes the world in a good way Green washing? => decrease doubt
B) What is the marketing mix that should be used to attract ethical clothing consumers ? d) RETAIL: DISTRIBUTION NEEDS TO BE SELECTIVE AND VISIBLE Assumption 5: Ethical clothing goods are not available in mainstream retail channels and it is difficult for consumers to find them. Positive attitude towards ethical clothing Not top of mind intent when buying clothing Could be considered as an option if available in store => Access ! Efforts to find ethical clothing => which brand? Where to buy them? Should be more accessible: promotion on brand + point of purchase
B) What is the marketing mix that should be used to attract ethical clothing consumers ? e) POTENTIAL CONSUMERS: VARIABLE BEHAVIOURAL/ATTITUDINAL GAPS Assumption 6: Target consumers have high awareness of ethical issues as far as environment and working labour conditions are concerned. All participants were really aware or labour working conditions in low-paid countries => does not necessarily imply buying more ethical products Need the tools to trust brands Good quality/price ratio Assumption 8: Daily ethical behaviour towards environment does not always involve ethical clothing consumption, and an moderate overall ethical behaviour can still be associated with ethical clothing consumption for some consumers. Most ethically engaged consumers rarely bought ethical clothing However they boycotted brands such as Nike
Conclusion• Brands> lack of credibility• Ethical apparel > major stake for brands > need to clean their reputation• Most influential consumers > Cultural Creatives, and Two-Faced Explorers > social charisma – trendsetters – social influencers• Small adjustments on ethical clothing products > improve price perception and level of acceptability• Story telling and a transparent approach > co create products and concepts with consumers - active ethical involvement and community• Most studies partly help defining ethical good/ consumer/ segments.• Fail to address estimation in terms of purchasing power and needs…• ..And propose an effective marketing mix to capture these consumers• Drawbacks>Small focus groups (13 participants) interviewed which result in low significance of findings
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References Parenthetical Notes Works Cited Format Type of Resource(Bougherara and Combris Bougherara D. and Combris, P. (2009) Eco-labelled food products: what are consumers paying for? European Review of Full Scholarly Article 2009) Agricultural Economics 36(3): 321-341 J. Bray (2009) ; Ethical Dimensions in Clothing Purchase ; In: First Annual Ethics in Everyday Life Conference, 17-19 March 2009, (Bray 2009) Academic Paper Salzburg ; Retrieved from http://eprints.bournemouth.ac.uk/9618/ M.C. Cervellon (GREEN IN FASHION? An exploratory study of national differences in consumers concern for eco-fashion ; (Cervellon 2010) Critical Studies in Fashion & Beauty, Vol. 2 Issue 2 ; Retrieved from Full Scholarly Article http://blog.zeit.de/gruenegeschaefte/files/2010/11/Cervellon_Green A. Chan, H. Cheung (2010); Cultural Dimensions, Ethical Sensitivity, and Corporate Governance; Journal of Business Ethics (Chan & Chung 2010) Scholarly Article (2012); Retrieved from http://rd.springer.com/article/10.1007/s10551-011-1146-9/fulltext.html Chan, AWH; Cheung, HY (2012) ; Cultural Dimensions, Ethical Sensitivity, and Corporate ; Journal of Business Ethics, 2012, v. (Chan, Cheung 2012) Full Scholarly Article 110 n. 1, p. 45-59 ; Retrieved from http://hub.hku.hk/handle/10722/147136 The Co-operative Bank U.K. (2011); Ethical Consumerism annual report 2011, Retrieved June 10th 2012 from http://www.co-(Co-operative Bank 2011) Public Report operative.coop/PageFiles/416561607/Ethical-Consumerism-Report-2011.pdf (Desmet and Hekkert Pieter Desmet and Paul Hekkert (2005); Framework of Product Experience; International Journal of Design, Vol 1, No 1; Retrieved Full Scholarly Article 2005) from http://www.ijdesign.org/ojs/index.php/IJDesign/article/view/66/15 (Deutsch and Gerard R. Cialdini;, R. Trost (2003); Social Influence: social norms, conformity and compliance; Chapter 21,; pp.151,193, Annual Review of Citation in Scholarly Article 1965) Psychology (2004);Retrieved from http://www2.psych.ubc.ca/~schaller/Psyc591Readings/CialdiniGoldstein2004.pdf Dickson, M.A., & Littrell, M.A. (1996). Socially responsible behaviour: Values and attitudes of the alternative trading organization(Dickson & Littrell 1996) Full Scholarly Article consumer. Journal of Fashion Marketing and Management, 1(1), 50-69; Retrieved from http://www.emeraldinsight.com/journals.h
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References Parenthetical Notes Works Cited Format Type of Resource Shopping Behaviour of the Belgian Consumer GfK Fashion Congress (2008); GFK; (GFK 2008) http://www.gfk.com/imperia/md/content/gfkpsbelgium/events/presentatie_koen_snoeren__gfk__gfk_fashion_congress_2008_belgi Private consumer report um.pdf Gilg, Andrew; Barr, Stewart; Ford, Nicholas (2005) ; Green consumption or sustainable lifestyles? Identifying the sustainable (Gilg 2005) consumer, Futures Vol 37, 481-504 ; Retrieved August 21, 2012, from http://www.scribd.com/doc/8074807/Green-Consumption- Full Scholarly Article for-Sustainable-Lifestyle GFK (2012); Environmentally Friendly Purchases Heat Up in Emerging Markets, Despite Discontent over High Prices; Retrieved from http://www.gfk.com/group/press_information/press_releases/010176/index.en.html Press Release (GLOBAL 2012) PR Newswire (2012); New Report: American Consumers Lead the World in Environmental Scepticism; SOURCE GfK Roper Consulting ; Online Article Retrieved from http://www.prnewswire.com/news-releases/new-report-american-consumers-lead-the-world-in-environmental- skepticism-103520764.html National Geographic & Global Scan (2012); Greendex 2012: Consumer Choice and the Environment - A Worldwide Tracking (Greendex 2012) Survey; Retrieved from http://images.nationalgeographic.com/wpf/media-content/file/NGS_2012_Final_Global_report_Jul20- Public Consumer Report cb1343059672.pdf Ha-Brookshire, J., & Hodges, N. (2009). Socially Responsible Consumer Behaviour?: Exploring Used Clothing Donation(Ha-Brookeshire & Hodges Behaviour. Clothing and Textiles Research Journal, 27, 179-196; Retrieved from Full Scholarly Article 2009) http://ctr.sagepub.com/content/27/3/179.full.pdf+html Ha-Brookshire, J., & Hodges, N. (2009). Socially Responsible Consumer Behaviour?: Exploring Used Clothing Donation(Ha-Brookshire & Hodges Behaviour. Clothing and Textiles Research Journal, 27, 179-196.; Retrieved from Full Scholarly Article 2009, Lin 2009) http://ctr.sagepub.com/content/27/3/179.full.pdf+html T. Higgins (1987); Self-Discrepancy: A Theory Relating Self and Affect; Psychological Review, the American Psychological (Higgins 1987 Full Scholarly Article Association, 1987, Vol.94, No. 3, 319-340; Retrieved from psycnet.apa.org/journals/rev/94/3/319.pdf G. Hofstede(1983); National Cultures in Four Dimensions, A research-Based Theory of Cultural Differences among Nations; (Hofstede 1983) Retrieved from http://leeds- Scholarly Article faculty.colorado.edu/selto/CURISES%202009%20Cost%20Mgt/CURISES%20Readings/hofstede%201983.pdf Houston, M.J. and M.L. Rothschild (1977), "A Paradigm for Research on Consumer Involvement," Working Paper no 11-77-46, (Houston 1977) Working Paper University of Wisconsin-Madison
References Parenthetical Notes Works Cited Format Type of Resource Hupfer, Nancy T. and David M. Gardner (1971),"Differential Involvement With Products and Issues: An (Hupfer and Gardner Exploratory Study, in Proceedings of the Second Annual Conference of the Association for Consumer Research, ed. David M. Full Scholarly Article 1971) Gardner, College ; Retrieved from The Institute of Grocery Distribution (2007) ; Ethical Consumerism; Retrieved March 2012 from (IGD 2007) NGO online Article http://www.igd.com/index.asp?id=1&fid=1&sid=5&tid=155&foid=77&cid=166 R.INGLEHART, C.WELZEL (2005); Modernization, Cultural Change and Democracy: The Human Development Sequence: (Inglehart 2005) Cambridg University Press, 2005: p. 63; Retrieved from Scholarly Article http://isites.harvard.edu/fs/docs/icb.topic96263.files/culture_democracy.pdf R. Inglehart and C. Welzel (2010) ; Changing Mass Priorities: The Link Between Modernization and Democracy ; Perspectives on (Inglehart 2010) Online article Politics June 2010 (vol 8, No. 2) page 554 554; Retrieved from http://www.worldvaluessurvey.org/wvs/articles/folder_published/arti(International Management Professor M. Van Hemele ( 2009/2010) Cultural Dimensions, MBA Course “International Management”, HUB Brussel. Management course Courses) T. Jägel, K.Keeling, A. Reppel, T. Gruber (2012); Individual values and motivational complexities in ethical clothing consumption: A means-end approach; Journal of Marketing Management, Vol. 28, No. 3-4, 21.03.2012, p. 373-396; Retrieved from https://docs.google.com/viewer?a=v&q=cache:yV5ilEGIapoJ:https://www.escholar.manchester.ac.uk/api/datastream%3FpublicationP (Jägel 2012) id%3Duk-ac-man-scw:129732%26datastreamId%3DPOST-PEER-REVIEW-NON- Scholarly Article PUBLISHERS.DOCX+Individual+values+and+motivational+complexities+in+ethical+clothing+consumption:+A+means- end+approach&hl=en&gl=be&pid=bl&srcid=ADGEEShKLn5Sv7obZd6ujgQ2VK4ZZcGGiTgPNGb5K_QHi0Adh9kXIOi6711_CUedsQuofiSS QGLBsZStBFpigu--3bU1tX_iWqadzBn-8loZPZbjrmsOuGsDJmp9V6081slFG1qQygVx&sig=AHIEtbRkDKU2ZSQ4sT_Cf8WuaLhoyKLvKQ (Jeremy Bentham and Stanford Encyclopedia of Philosophy (2009) ;The History of Utilitarianism ; Retrieved fromJohn Stuart Mill 18th-19th Online Encyclopedia http://plato.stanford.edu/entries/utilitarianism-history/ centuries) T Jones (1991), Ethical Decision Making by Individuals in Organizations: An Issue-Contingent Model. The Academy of (Jones 1991) Management, vol. 16/2, 1991, pp. 366-95 ; Retrieved from Full Scholarly Article http://worldroom.tamu.edu/Workshops/CommOfRespect07/MoralDilemmas/Ethical%20Decis
References Parenthetical Notes Works Cited Format Type of Resource Stanford Encyclopedia of Philosophy (2008) ; Kants Moral Philosophy ; Retrieved from http://plato.stanford.edu/entries/kant- (Kant 18th century) Online Encyclopedia moral/ (Katrin Magnussen, Mintel Oxygen Reports (2009) ; Ethical clothes sales go from rags to riches ; Retrieved from http://www.mintel.com/press-Euromonitor International Online Press Release centre/press-releases/341/ethical-clothes-sales-go-from-rags-to-riches 2009) Kevin Lane Keller (2005); BRANDS AND BRANDING: RESEARCH FINDINGS AND FUTURE PRIORITIES ; Marketing Science (Keller 2005) November/December 2006 vol. 25 no. 6 740-759 ; Retrieved from Full Scholarly Article bear.warrington.ufl.edu/.../BRANDS%20AND%20BRANDING.pdf(Kim & Damhorst 1998 p. Kim, H.E., & Damhorst, M.L. (1998). Environmental Concern and Apparel Consumption. Clothing and Textiles Research Journal, Full Scholarly Article 132) 16, 126-133; Retrieved from http://ctr.sagepub.com/content/16/3/126.full.pdf Kotler & Armstrong (2012); “ Four Types of Buying Bahaviour”; Principles of Marketing 14th Edition; Pearson Prentice Hall; p.151 Marketing Textbook(Kotler & Armstrong 2012) Kotler & Armstrong (2012); “Buying Decision Making Process”; Principles of Marketing 14th Edition; Pearson Prentice Hall; p. 152 Marketing Textbook Lin, S. (2009). Exploratory evaluation of potential and current consumers of organic cotton in Hawaii. Asia Pacific Journal of (Lin 2009) Marketing and Logistics, 21, 489-506, Retrieved from http://www.organic-systems.org/journal/Vol_2(2)/pdf/14- Full Scholarly Article 26%20LIN%20Org%20co (Litrell 1999) Littrell, M. & Dickson, M. (1999) Social responsibility in the global market: Fair trade of cultural products. Sage, Thousand Oaks. Full Textook
References Parenthetical Notes Works Cited Format Type of Resource (Marketing Magazine David Tiltman (2007); Green consumerism: Who is the ethical consumer?; Marketing Magazine UK ; Retrieved February 26th from Online Article 2007) http://www.marketingmagazine.co.uk/news/login/670357/?DCMP=ILC-SEARCH Mintel (2009); Ethical clothes sales go from rags to riches ; Retrieved April 2nd 2012 Private Consumer Research (Mintel 2009) http://www.mintel.com/press-centre/press-releases/341/ethical-clothes-sales-go-from-rags-to-riches Press Release Nordic Initiative Clean and Ethical (NICE), Danish School of Fashion, BSR Corporate Responsability (2012); Nice Consumer (NICE 2012) Research Summary and Discussion Paper Toward a Framework for Sustainable Fashion Consumption in the EU; Retrieved from Private Report http://www.bsr Niinimäki, K. (2010). Eco-clothing, consumer identity and ideology. Sustainable Development, 18, 150-162, downloaded from (Niinimäki 2010) Full Scholarly Article http://onlinelibrary.wiley.com/doi/10.1002/sd.v18:3/issuetoc(Ozcaglar-Toulouse et al. Studying the ethical consumer: A review of research (2007); Journal of Consumer Behaviour 6, pp. 253–270 (2007); Retrieved Full Scholarly Article 2006) from http://www.scribd.com/doc/17765469/Studying-the-Ethical-Consumer-a-Review-of-Research Patrick De Pelsmacker, Wim Janssens, Caroline Mielants (2005) ; Consumer Values and Fair-Trade Beliefs, Attitudes and Buying (Pelsmacker 2005) Behaviour; International Review on Public and Non Profit Marketing, vol. 2, no 2 (December 2005), pp. 50-69 ; Retrieved from Full Scholarly Article www3. P. Punyatoya (2011); How Brand Personality affects Products with different Involvement; European Journal of Business and (Punyatoya2011) Full Scholarly Article Management ; Retrieved from www.iiste.org/Journals/index.php/EJBM/article/download/165/48 LaetitiaRadder, Wei Huang (2007); High-involvement and low-involvement products: A comparison of brand awareness among (Radder, and Huang students at a South African university; Journal of Fashion Marketing and Management, Volume 12, Number 2, 2008, pp. 232-243; Full Scholarly Article 2007) Retrieved from http://wenku.baidu.com/view/99 A. J. Hoffman;Competitive Environmental Strategy: A Guide To The Changing Business Landscape; pp. 86-88 Retrieved from (Roper 1990) http://books.google.be/books?id=6gxwmh6JTIsC&pg=PA89&lpg=PA89&dq=Roper/S.C.+Johnson+sprouts&source=bl&ots=rrLFYf Management Textbook 1Gtq&sig=SYLTbx1hBUXLSn
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References Parenthetical Notes Works Cited Format Type of Resource Ethical Fashion Forum 2011; THE MARKET FOR ETHICAL AND SUSTAINABLE FASHION PRODUCTS, Briefing Report 2011; (TNS 2008) Retrieved from http://www.ethicalfashionforum.com/assets- Public Consumer Report uploaded/documents/Market_for_sustainable_fashion_Briefing_2011.pdf L. Percy, R.Rosenbaum-Elliott (2012); Strategic Advertising Management, Oxford University Press, 2012; p. 164; Retrieved from http://books.google.be/books?id=APuFBqYAXr0C&pg=PA164&lpg=PA164&dq=onlookers+principled+pioneers&source=bl&ots=zg Marketing Textbook (UK 2007) DY4cTkI3&sig=b-hV Online Article See (Marketing Magazine 2007) Cooperative Bank (2010); Ethical Consumerism Research; Retrieved from http://www.ipsos- (UK 2010) Public Report mori.com/Assets/Docs/Archive/Polls/coop-csr.pdf United Nations (1987); World Commission on Environment and Development. "Our Common Future, Chapter 2: Towards (UN 1997) Public Report Sustainable Development". Un-documents.net. Retrieved from http://www.un-documents.net/ocf-02.htm Jem Bendell & Anthony Kleanthous for WWF (2007); Deeper Luxury Report; Retrieved from (WWF 2007) Public Report http://www.wwf.org.uk/deeperluxury/_downloads/DeeperluxuryReport.pdf Yuniya Kawamura (2005); Fashion-ology: An Introduction to Fashion Studies; Berg Editions, pp. 23-28; Retrieved from(Yuniya Kawamura 2005). Full Textbook http://books.google.be/books?id=LUWTJWXZ2QQC&printsec=frontcover#v=onepage&q&f=false Going green: the future of Luxury (2009) ; The Luxury Channel; Retrieved from Video documentary http://www.youtube.com/watch?v=WIx3_22A4Io&feature=related
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