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Consumer Behaviour
- 1. The Fast Fashion ‘Conundrum’ Attitude-Behaviour Gap in Ethical Consumption of Clothing Student ID : 10480824
- 2. Context H&M offers sustainable clothing lines ‘Concious’ & ‘Close the Loop’ Attributed to heavy rise of global interest in sustainability Unethical disposal of used garments Use of pesticides in fabric ‘Farming’ Employee working conditions and wages
- 3. Close the Loop ‘Garment Collection Program’ Consumers hand in unwanted clothing Garments reproduced to produce new clothing Sold as a Sustainable line extension Fabrics from recycled polyester, organic cotton and linen Through farming practices that reduce water and chemical use Conscious Collection
- 4. Why Ethical Consumption ? Sustainability ‘development that meets the needs of the present without compromising the ability of future generations to meet their own’ Ethical Consumption ‘the behavior of ethically minded consumers who feel accountable for the environment and towards society' Positive Attitude towards Ethical Consumerism But does not translate to actual purchase behaviour!
- 5. The ‘Green’ Attitude Consumer attitude/ behaviour gap towards Environmental Sustainability 87% Consumers concerned about ethical consumption But only 33% ready to purchase ‘Green’ products Other past studies show no consistent relationship between ‘Green’ attitude and behaviour But Higher levels of ‘Green’ attitude positively influence consumers attitude towards ‘Green’ products
- 6. Why Produce ‘Green’? Clear Growing Demand for ‘Green’ products Consumer is the centre of an organisation Reduce Energy Consumption Reduce Risks Meet Competitive Threats Enhance Brand and Value Creation Increase Revenue in the Long-term
- 7. What Motivates Consumers to go ‘Green’? Society and Ethical Concerns; Superego Hierarchy of Needs – Self Actualization Self interest vs Societal Interests
- 8. Motivation and Perception Selective Attention Ethical Consumption not a primary need ‘Green’/eco clothing a Niche Selective Distortion Low quality but expensive ‘Green’ clothing Miss-fit between Fast Fashion and ‘Green’ Clothing Selective Retention Fast Fashion –Trendy ‘Green’ clothing is not Fashionable
- 9. Behavioural Intensions Consumers Self Ethical Values Commitment to Social Value Base Ethical Awareness Social Orientation, ideals and ideology
- 10. Behaviour and Attitude Symbolic meanings Self-Concept Extended-Self Lifestyle Brand Community / Consumer tribes
- 11. Ethical Purchase Decisions and Lifestyle Consumers Social Practices Routine Habits and ‘Self’ Story Portrayed Reasons for Actions and Routines But Routines are Open to Changes Moral Dimension of ‘Green’ thinking Therefore complex interplay of lifestyle and ‘Green’ consumerism
- 12. Why Doesn’t the Message get Through? Cognitive Complexity Cognitive Capacity Source Credibility Involvement Identification/loyalty Prior experience Affect: How we feel Behavior: How we intend to act Cognition: What we believe
- 13. Cognition & Affect Pre-Cognition – Negative Consequences of ‘Green’ Behaviour Economic rationalisation, Reality of Economic Development and Government Dependency Persuasive Tactics Psychological Mediators Persuasion Outcomes
- 15. Changing Buyer Behaviour Barriers • Lack of Consumer Awareness • Negative Perceptions of ‘Green Products’ • Distrust of ‘Green’ Claims • Low Availability Consumer Strategies • Educating Customers – Fear Appeals – Social Influence Techniques – Call to action • Building Better Products – Monetary Incentives – Extrinsic Incentives - Fashionable & Trendy • Honesty and Transparency – Feedback – Persuasive messages • Brining the products to the people • Close the gap of ‘Inconveniences’
- 16. Get Consumers to Conform? Remove Tension and Reach Desired Stage Complex Utilitarian Vs. Hedonic Needs Tension – Ethical vs Unethical behaviour Drive vs Expectancy
- 17. References • Bauman Z. 1996. Postmodernin Lumo [Enchantment of Postmodernity]. Vastapaino: Jyväskylä. • Beard N. 2008. The branding of ethical fashion and the consumer: a luxury niche or mass-market reality? Fashion Theory 12(4): 447–468. • Bird, K. and D. R. Hughes: 1997, ‘Ethical Consumerism: The Case of Fairly-Traded Coffee’, Business Ethics European Review (Chichester, England) 6(3), 159–167. • Bonini, S.; Oppenheim, J. (2008): Cultivating the Green Consumer, Stanford Social Innovation Review, Vol. 6, No. 4, 56–61. • Bray, J., Johns, N., & Kilburn, D. (2011). An exploratory study into the factors impeding ethical consumption. Journal of Business Ethics, 98. • Clavin B, Lewis A. 2005. Focus groups on consumers’ ethical beliefs. In The Ethical Consumer, Harrison R et al. (eds). Sage: London; 173–188. • D’Astous, A., & Legendre, A. (2009). Understanding consumers’ ethical justifications: A scale for appraising consumers’ reasons for not behaving ethically. Journal of Business Ethics, 87, 255–268. • Dahab, D. J., J. W. Gentry and W. Su: 1995, ‘New Ways to Reach Non-Recyclers: An extension of the Model of Reasoned Action to Recycling Behaviors’, in F. R. Kardes and M. Sujan (eds.), Advances in Consumer Research, Vol. 22 (Association for Consumer Research, Provo, Utah), pp. 251–256. • Dawn B. Valentine Thomas L. Powers , (2013),"Generation Y values and lifestyle segments", Journal of Consumer Marketing, Vol. 30 Iss 7 pp.597 - 606 • Diderich, J.(2011): H&M Launches Sustainable Conscious Collection. In: WWD: Women's Wear Daily, Vol.201, No.23, 3–1
- 18. References • Eckhardt, G., T. Devinney and R. Belk: 2006, ‘Why don’t Consumers Behave Ethically’, DVD Document, AGSM • H&M (2016): Closing the loop. [online]. Available at: http://about.hm.com/en/About/sustainability/commitments/reduce-waste/closing-the-loop.html [Accessed: 10 Mar 2016]. • H&M (2016b): CONSCIOUS FASHION. [online]. Available at: http://about.hm.com/en/About/sustainability/commitments/conscious-fashion.htmll [Accessed: 10 Mar 2016]. • H&M (2016c): RESPONSIBLE PARTNERS [online]. Available at: http://about.hm.com/en/About/sustainability/commitments/responsible-partners.html [Accessed: 10 Mar 2016]. • Joergens C. 2006. Ethical fashion: myth or future trend? Journal of Fashion Marketing and Management 10(3): 360– 371. • Kim, H.-S.; Hall, M. L. (2015): Green Brand Strategies in the Fashion Industry: Leveraging Connections of the Consumer, Brand, and Environmental Sustainability, in: Choi, T.-M.; Cheng, T. C. E. (ed.): Sustainable Fashion Supply Chain Management, Vol. 1: Springer International Publishing (Springer Series in Supply Chain Management), 31-45. • McNeill, L.; Moore, R. (2015): Sustainable fashion consumption and the fast fashion conundrum: fashionable consumers and attitudes to sustainability in clothing choice, International Journal of Consumer Studies, Vol. 39 • Moisander J, Pesonen S. 2002. Narratives of sustainable ways of living: constructing the self and others as a green consumer. Management Decision 40(4): 329–342. • Niinimake, Kris. (2010) ‘Eco-Clothing, Consumer Identity and Idealogy’ Aalto University, School of Art and design, Helsinki, Finland. Sust. Dev. 18, 150–162 (2010) • Raymond M. 2003. The Tomorrow People. Future Consumers and How To Read Them Today. Pearson: Harlow, UK.
- 19. References • Roach M, Eicher JB. 1973. The Visible Self: Perspectives on Dress. Prentice-Hall: Englewood Cliffs, NJ. • Schneider, A.; Schmidpeter, R. (Hg.) (2015): Corporate Social Responsibility, in: Nachhaltige, ganzheitliche Wertschöpfungsketten, Berlin, Heidelberg: Springer Berlin Heidelberg, 325 f. • Solomon M.R (2015 or 2014) Consumer Behaviour, Buying, Having and Being, 11th ed, Pearson • Thogersen, J. and S. C. Grunert-Beckman: 1997, ‘Values and Attitude Formation Towards Emerging Attitude Objects: From Recycling to General, Waste Minimizing Behaviour’, in M. Brucks and D. J. MacInnis (eds.), Advances in Consumer Research, Vol. 24 (Association for consumer Research, Provo, Utah), pp. 182–189. Thank You MKT701 : Consumer Behaviour Student ID : 10480824
Editor's Notes
- Many rising social and environmental issues, such as a ‘fast fashion fuelled’, increasing volume of clothing consumption, unethical employee working conditions and wages, disposal of used garments and pesticide use has tainted the fashion industry (Goworek et al., 2012). In order to solve these issues and respond to the call for ethically sustainable products, most businesses, including some of the well known and largest fast-fashion retailers, has begun offering sustainable line extensions. H & M a long-established, fast fashion brand, among many others have started offering sustainable product offering as brand extensions. Mainly attributed to rising interests in sustainability, globally specially among Gen Ys, a key target group of H & M (McNeil and Moore 2015)
- Under the ‘Conscious’ movement H&M’s sustainability strategy, H & M has launched two corresponding brand extensions, Close the Loop‘ and 'Conscious Collection'. Close the Loop Self-proclaimed as the ‘quickest and easiest way for our industry to dramatically reduce how many resources we use’, H&M's closed-loop system (see figure) in essence, under the 'Garment Collecting Program’, asks consumers to bring in unwanted clothing. These garments are either recycled or reused to produce new clothing material which are retailed under H & M’s ‘sustainable’ line extension 'Close the Loop' (H&M, 2016). With the aim to have 100% recycled material by 2020 latest, currently H&M has a cocktail of 20% of used textiles gathered through its in-store 'Garment Collecting Program' in the yarns used in its 'Close the Loop' clothing line (H&M, 2016). Conscious Collection The 'Conscious Collection' aims to conquer the ‘challenge of ultimately making fashion sustainable and sustainability fashionable’ Karl-Johan Persson, CEO, H & M. The line is manufactured through ethically and sustainably sourced fabric materials such as recycled polyester or organic linen and cotton, which in turn improve the lives of cotton farmers, and promote farming practices that reduce water and chemical use (Diderich, 2011). This is done through providing fashion for conscious customers, through organic certified cotton, recycled or grown under the ‘Better Cotton Initiate’ and use of many other environmental conscious materials such as Organic hemp and recycled wool (H&M, 2016c). Secondly H & M choses and rewards their partners (supplier) through Fair Wage Method and other agreements with the International Labor Organization to ensure a transparent supply chain. (H&M, 2016c)
- Sustainable options, specially as brand or line extensions are being increasingly used by many industries due the rising global interest in social and environmental sustainability as well a responsible ethical consumption (McNeill and Moore, 2015). The main aim of these initiatives being to strengthen the brand, retain and add value to existing consumers and increase attractiveness among the considerable and highly socially conscious Gen Y segment (Schneider and Schmidpeter, 2015). As defined by Bodur 2015, ethical consumption is closely connected to social and environmental sustainability. However a consistent observation through out past research, despite the positive altitude towards ethical consumerism, there appears to be no direct connection to actual purchase behavior (Ha-Brookshire and Norum, 2011). Further more, particularly identified in the case of ethical consumption of fashion items, there exists a gap between attitudes and behavior (McNeill and Moore, 2015; Bray et. Al. 2010).
- ‘Green’ attitude, defined as the consumer orientation or attitudes towards social and environmental sustainability, and is part of an individuals feelings, beliefs and behaviour towards aforementioned causes. (Kim and Hall 2015). Consumers perception of products positioned as ‘Green’, attributed with related marketing activities, has been researched by a number of researchers in the past. While most research indicated that consumers demand more socially and environmentally friendly products, their actual adaptation to aforementioned product offerings remained low (Kim and Hall, 2015). For example 87 % of consumers are either aware and or are concerned about the environmental and social impact of products bought by them. But a low 33 % of these consumers of the global survey by McKinsey in 2007, have either bought ‘Green’ products in the past or are ready to buy them (Bonini and Oppenheim, 2008).. Furthermore as discussed earlier, results from past studies show that there is no consistent relationship between attitude and behaviour. However higher levels of ‘Green’ attitudes such as environmental and social sustainability concerns have been recorded to positively influence consumers attitudes towards ‘Green’ products and marketing activities (Kim and Hall, 2015).
- ‘Regarding sustainable development, consumer choices and the importance of environmental aspects in consumers’ everyday purchasing decisions should be the centre of attention’ (Niinimaki, 2010 Cited; Jalas, 2004). One clear and obvious factor is the growing demand for ‘Green’ products in one of the most influential consumer segments. Therefore for marketers and brands alike it is imperative that they understand the wants and needs of their consumer as their strategies, products and all marketing functions will be based around their consumers needs and wants (Solomon, 2015). However there are other advantages to going green, organisations can reap multiple benefits. For example H & M significantly reduces their energy consumption through recycling and ‘Cloe the Loop’ system. As aforementioned many industry players are hoping on board the ‘Green’ train and therefore by producing ‘Green’ H & M reduces business risks and meet any potential competitive threats. This can all be done while creating Value to the customers and enhancing the overall image of the brand and hence potentially increase the long-term revenue of H & M ((Bonini & Oppenheim, 2008; H&M, 2015).
- Environmental protection, child labour, factory worker conditions in developing countries and the animal testing of consumer products are some of the hot topics that consumers hear or read on a daily basis. Such ethical and social issues have become major ‘preoccupation’ in society, and as aforementioned not only are most organisations adopting to and responding to this trend, governments and various interest groups actively promote, enforce and encourage ethical consumption behaviour (’Astous and Legendre 2009). Esteem needs, stemming into self-actualization is show cased by how consumers respond to society’s ethical concerns by wanting to be always informed of how products are made and what other parties ‘ethically’ benefit from these purchases. Boycotting of unethical business, and willingness to pay a price premium also attest to these needs (’Astous and Legendre 2009; Bird and Hughes, 1997). ‘Astous and Legendre (2009) summarises that in the case if adoption of ‘Green’ behaviour, several researches have suggested that consumers are much more inclined and motivated be self-interest that led to ‘concrete’ positive benefits than the interests of society as a whole.
- Joergens (2006) argues that design and appearance of eco-clothing are unattractive and unfashionable or fails to suit the consumer’s personal style and wardrobe needs. He also addresses the lack of real opportunity for consumers to choose ethical clothing, attributing to the fact that most garments are made in cheap Asian countries and thus prices are not comparable in ethical clothing. Beard (2008) supports this fact arguing that ‘Green’ clothing needs to be fashionable and fit the consumers ‘aesthetic’ needs and warns that otherwise, along with the fact there is not enough clothes produced ethically ‘Green’ fashion and clothing will remain a nice market as they fail to ‘reflect’ the broad scope of consumers lifestyles. The motivations and perception of consumers in the clothing industry are also lead by fashion and trends, thus as aforementioned consumers do not think about social or environmental sustainability when purchasing as their perceptions are selectively distorted and retained against ethical consumption as price and style play more dominant roles in the purchase decisions (Niinimaki, 2010 Cited Beard, 2008)
- While consumers are well aware of the social and environmental impact of consumption behaviours and present industrial production consequences, as discussed in previous sections it is clear that consumer choices are not always connected to values and somewhat irrational. As discussed and identified by Niinimaki (2010) there are ‘deep inner motivations and unconscious needs’ that consumers look to fulfil by consuming ethically or unethically. Consumers primarily have two key behavioural functions or intensions when required to fulfil these needs, targets and values. That is to achieve Individual (discussed earlier) or Collective benefits by consuming (Niinimaki 2010; Cited Moisander, 1991). According to Calvin and Lewis (2005), even if their behaviour does not reflect well on the consumer, he/she realizes the value in consumption behaviour, by taking ethical issues into consideration and behaving according to their own ethical values. And thus commits themselves to a social value base of ethical or ‘Green’ consumption. Therefore these consumers have high ethical awareness, and have knowledge on which brand and organisations function ethically. Thus this ‘Green’ attitude stems from the consumers social orientation, ideology and ideals. Making socially ethical motivators a strong ‘lever’ for ethical and ‘Green’ behaviour (Niinimaki, 2010).
- Moisander 1991 noted that ethical consumption produces ‘an individual, symbolic feeling of advantage’ that can be specially linked to lifestyles, social values and personal values. In a study by Dawn and Powers (2013) for the Journal of marketing, they attempted to identify the psychographic profile of Generation Y by using the VALS framework. By studying the Generation Y values and lifestyle segments, in summary, it was found that over 92% of the respondents fell into three primary VALS groups. Experiencers (80%) who are action oriented and follows fads such as ‘Ethical Consumption’ and other causes and have heavy media habits, all of which are fuelled by high resources. Second largest Strivers (24%) who even though had the lowest household income of the three groups have an important trait of status seeking and extended-self which can in turn stem towards striving for symbolic ‘Ethical Consumption’ of Experiencers and Achievers. The third largest group, Achievers (9%) the highest income group and as identified earlier, maybe the minority group willing to pay higher prices for ‘Green’ ethical products (Dawn and Powers, 2013). The aforementioned attests to the works of Gidden, 1991; Spaargaren and van Vliet, 2000; Oksanen, 2002, Cited by Niinimaki 2010, who identified that behind the need to purchase and beside the actual need (clothing, style and price factors too), other ‘deeper’ needs such as constructing identity through brand and symbols of products, association with some forms of social statuses and desire for certain lifestyles.
- It is argued by Moisander and Pesonen (2002) that ‘Green consumers and consumerism’ is representative of a desire to be a certain kind of individual and thus a certain lifestyle. This is actualized through the particular ways of acting and thinking. The story one tells about themselves, through routines incorporated in to habits and social practices defines a lifestyle in theory. Therefore consumers state reasons for themselves and others about their routines and actions. Thus lifestyles are created by each small decision a person makes on a daily basis building routines. How ever these routines are subject and open to change due to the ‘character of mobility in self-identity’. Therefore as an ethical consumer, when one realises that their thinking is contradictory to their own everyday choices, habits, practices and routines due to either some new perspective or new ‘inner picture’ of themselves they will change their aforementioned practices. (Niinimaki 2010 Cited, Giddens, 1991; Spaargaren and van Vliet, 2000; Oksanen, 2002). Furthermore Moisander and Pesonen (2002) disscussed the moral dimensions in ‘Green’ consumerism, as an ‘aesthetic of existence’, hence they claimed that there is an ongoing process of reinventing oneself by questioning. And concluded that due to the moral and aesthetic criteria of ‘Greem’ thinking, there is a complex interplay and instabilty between the two.
- In order to summarise, it was identified what motivated consumers, organisations and society towards ethical consumption and hence ‘Green’ attitudes and fashion was a complex mixture of what the individual felt, needed and believed vs the societal needs, feeling and beliefs. As described by Bauman (1996) the ‘liquid society’ we presently live in is a result of the constantly changing, implicit fluidity and uncertainty which effects consumers constant self-critique. Therefore as discusses consumers have a ever present need to renew their own appearance, clothing and fashion according to a ‘mobile’ self. This has lead to the tension of insecurity, thus consumers have to constantly evaluate and re-evaluate their purchase decisions on their cognition of acceptance by society between the ‘externalities’ of fashion and ethical values of consumption (Niinimaki 2010 ). Hence change is unavoidable, specially in clothing, in which fashion is constantly reinventing itself. As discussed this transition has affected how one constructs their identity, especially the Generation Y, through external symbols and the ‘aesthetic’ concepts of clothing. Therefore as identified by Roach and Eicher (1973) consumers need to consciously and unconsciously keep in mind what is culturally valid and how one can maintain an ‘appealing self-type’ within the limits of what is culturally acceptable. Thus leading to heavy psychological mediators affecting and creating the Attitude-Behaviour Gap’ identified (Niinimaki 2010; Roach and Eicher 1973).
- Consumers use many cognitively based justifications strategies to account for not engaging in ethical consumption. Research has identified ‘negative’ consequences foreseen by consumers resulting from socially and environmentally responsible behaviour. Usually taking the form of additional effort, these ‘consequences’ are likely to affect consumers overall willingness to adopt such behaviour and overall satisfaction (d’Astous and Legendre 2009). Higher prices, loss of quality of discomfort in shopping are some inconveniences highlighted by Niinimaki (2010), who also Cited Joergens (2006) study of the global clothing business, where consumers are interested in ‘Green’ fashion but do not want ethical consumption to cause inconvenience. In a similar context to H&M, the perceived additional effort required for recycling (taking old clothes to H&M) has been recorded as negatively impacting consumers intention to re-cycle and on ‘recycling behaviour’ it self (Dahab et al. 1995, Thogersen and Grunert-Beckman, 1997). These pre-conceived consequences and inconveniences which act as psychological mediators in ethical consumption have been categorised and studied by Eckhardt et al. (2006), to summarise, the Economic rationalisation by consumers comes down to the ‘cost vs benefit’ where consumers mediate that price and quality are more important factors than ethical factors. Consumers also argue under the Reality of Economic Development, the rate of economic development of a country justify their adaptation of unethical behaviour. And the last mediating category, Government dependency is justified as if there is no laws regulating unethical actions of social actors, then the consumers behaviour is legal and cannot be blamed for it (Eckhardt et Al. 2006).
- In order to summarise, Think Consumers aware of Ethical Consumption issues Consumers influenced and knowledgeable of needs of society and oneself Feel Liquid society of complex lifestyles portraying individualism and symbolism Quality, colour and compatibility to ones personal style weigh greater than social and environmental sustainability Do Psychological and functional mediators play an important role in the Conviction process Where price, quality, and fashionably triumph of ‘Green’ attitude Pre-conceived inconveniences, cognition and post purchase guilt affect purchase decision creating the ‘Gap’
- While consumers agree that organisations must engage in socially and environmentally responsible practices, most refuse to assume the results of such practices, such as higher prices, lower quality and time wastage. Consumers insincerity, laziness, posturing or other unsavoury traits. But more importantly due to the failure of businesses to educate consumers about the benefits of green products, give proper incentives and the failure to create green products that meet the customers needs. To sell green products, business need to remove the barriers between consumers intentions and actions. Educate Consumers - Lack of awareness of eco-friendly goods Build Better Products – Negative perceptions of green products Be Honest – Distrust of green claims Bring the products to the people – Low availability (Bonini & Oppenheim, 2008) Strategies to encourage consumers to ethically consume, include increasing consumer awareness and knowledge of sustainability related issues, providing monetary or other extrinsic incentives, feedback or persuasive messages such as, fear appeals, social influence techniques and calls to action. (Boduer et. Al, 2015)
- Consumer needs usually create a state of tension, which in turn drives the consumer to attempt to reduce it. As identified these may come in either forms of utilitarian, ‘functional’ needs or complex hedonic ‘emotional’ needs. Raymond (2003) claims that consumers will be influential and more active than ever in markets in the future, how ever as seen in contemporary practice, markets are fragmented and most do not follow and logical pattern. And instead of single consumers following trends, there are several small but influential groups of consumers (identified by VALS framework) who behave emotionally, chaotically and irrationally. Thus leading to the requirement of more complex development in the ‘Green’ fashion and clothing industry. As discussed, organisations like H&M can cater to these groups of consumers identified by a appealing to what they value most; their individual expression and lifestyle options which are reflective of sub-cultures in society, thus marketing efforts that reduce the tension between the two, and in essence promote Ethical behaviour will add value to consumers. Therefore by appealing to consumers desires, balancing own identity, aesthetic values and functional attributes. Marketers can potentially and successfully grow the Nice market of ‘ethical’ hardliners to a more mass market, everyday appeal.