Ethical Consumer Behaviour - Coursework Example

Ethical Consumer Behaviour Table of Contents Introduction 3 Discussion 3 Individual consumer factors 4 Issues and Drivers of Ethical Consumer Behaviour 5 Challenges 6 Opportunities 6 Conclusion 7 References 8 Introduction A number of studies tell us that, whenever people go for shopping, they will purchase only those goods that have quality and are affordable. Similarly, eminent scholar Bradshaw portrayed that people or the consumers normally select the cheapest goods, however only if they are convinced enough to the fact that, its value and efficacy are as good as or slightly less than the expensive item. He described such buying behaviour as the ‘traditional purchase behaviour’. Slowly with the development of consumer behaviour concept, a new concept generated which is known as ethical consumer behaviour. Sometime it happens that people are staying away from or not buying a particular product because of some speculative news about the company. Furthermore, people often considers buying those items only that is eco friendly, as consumers believe that environmental factors are important. Such buying behaviours are considered as the ‘ethical consumer behaviour’ or sometime termed as ‘ethical consumption’. A number of studies stated that people will not consume those products that are priced high or costs half of the monthly income or if the products do not meet their needs. Hence from this finding it can be clearly stated that people who consider ethical buying do not disregard the price and quality but also consider some of the additional factors while making their purchasing decision (Brinkmann, 2008). This report will primarily shed light on the individual consumer factors as well as the broader collective and societal issues that motivate and drive ethical consumer behaviour. Apart from that opportunities and challenges of ethical consumer behaviour will be also presented. Finally a conclusion will be drawn based on the findings from the report. Discussion Over the last two decades, there has been a steady growth in ethical consumerism exemplified by ideas such as fair trade buying, green consumer behaviour, etc. Ethical consumer behaviour is a wide ranging and complex phenomenon. However there are several ways by which it can be separated into convenient and handy segments. One of the most common form in which the purchasing behaviours can be segmented is about how the people are trying to influence the seller. The divisions are basically boycotts, positive buying, relationship purchasing, Anti or sustainable consumerism and comparative ethical buying. The buying approaches are presented below:- Positive buying: - The concept of positive buying is about the favouring a specific ethical product. For instance an individual may prefer to buy a particular electric bulb that consumes less energy than the others (Prasad, 2009, p.171-172). Negative purchasing: - The concept of negative purchasing is about neglecting or disapproving a particular product that according to the consumer does not remains compliant with the environmental norm or offers less value for it. For instance whenever an individual avoids purchasing of gas-guzzling cars or battery eggs, it can be considered as a negative purchasing. Company based purchasing: - Company based purchasing is a broader term and is not limited with a particular product or service, rather it takes into account into account all the products of a company. It therefore means targeting a specific business house and disregarding all the products made by the company. Often it is termed as boycott (Noel, 2009, p.12-15). To cite an example, if people targets and avoids the purchasing of products made by Nokia, in a bid to change the product quality of the company, can be portrayed as company based purchasing. Fully screened approach: - This is one of the most important approaches of them all. In this approach the consumers considers the evolution of both the company as well as the product. Among the products f the company, the consumers search for the most ethical product among the available ones. For example, most of the magazines give product recommendation only after considering the ethical aspect of the product (Ethicalconsumer, n.d.). Individual consumer factors A number of individual factors are there which drives ethical consumer behaviour. The determination of the consumers who are highly sensitive as well as sympathetic towards the ethical issues holds greater chances of selecting and using the products that are ethical (Cherrier, 2005). It is important to them in both theoretical and practical terms. In additions eminent scholars highlights that the age factor highly increases the ethical approaches of the consumers (Hines and Ames, 2000). Also other studies in the same field states that women possesses more ethical sensitivity than the males. In addition, affluence and education also increases the ethical sensitivity of the customers (Parker, 2002). Similarly, an individual with less education will have less compassion towards ethical buying. Apart from that Kohlberg (1969) stated that confidence, moral maturity, social situations, etc. also acts as a facilitator of ethical consumer buying behaviour. Hence considering the literature it can be demonstrated that the individual factors that influence or foster ethical consumer buying behaviour are age, confidence, maturity of the individual and emotions (Jones, 1991). Issues and Drivers of Ethical Consumer Behaviour For most of the people when the basic needs are fulfilled, they move towards the higher needs that lead to self actualization and the need to know. For example the self actualization can be achieved by ethical consumption. Several studies in this context reveal that there are convincing impulses which the customers have towards the consumer ethics. The studies also illustrated that there are seven factors that influences the development of ethical consumers. The factors are hereby detailed below:- Weakening of the national government and rapid globalization often influences customers to portray ethical buying behaviour. Increased number of branded products and transnational corporations. The environmental and social consequences of technological advancements. Prominent shift of the market power from the seller towards the consumers. Intensification of the extensive corporate social responsibility. Strong influence of the marketing campaigning (Harrison, Newholm & Shaw, 2005, p.5). Challenges Anything that exists in this universe has to face some kind of challenges. Similarly, organizations throughout the world are faced with some challenges that have been raised due to ethical consumerism. Some of the challenges are highlighted below:- The biggest challenge comes in the form of sustaining in the market place. If a company does not remain compliant with the ethical norms and individual practices ethical buying behaviour such as boycott, sustainability of the company will be a big issue. It can reduce the market shares of a brand dramatically. In this context the biggest challenge comes in the form of bad word of mouth. Marketing of the products manufactured by the company can also become a challenging task. While promoting the company has to be very much careful and should try to reflect ethical practices through advertisement campaigns. Opportunities Although a company has to deal with large number of challenges for ethical consumer behaviour, it sometime offers opportunities to the marketers and brands as well. One of the biggest opportunities provided by this behaviour is that, it makes the company ethical, if it was not thereby offering intangible resources to the company. Apart from that it also offers some other opportunities. They are detailed below:- Whenever an organization conducts itself ethically, the consumers develop a positive belief about the company along with its offerings. Hence it offers the company an opportunity to gain market share than the competitors. It also gives the firm an opportunity to gain competitive advantage in the market place. Also the company remains free from any king of negative publicity, bad word of mouth, legal actions antitrust etc. It gives the company an opportunity to appeal mass customers and can cater to them without any issues pertaining to marketing ethics. Conclusion Consumer ethics is a concept that is still in the developing stage of marketing and business ethics. This study was conducted with the primary intention of underpinning the evolution of consumer ethical behaviour. This paper has therefore sought to take a new impression towards the understanding of professed social responsibilities and ethics of the consumers. The study disclosed that ethical consumer behaviour is a buying behaviour portrayed by the consumers where they consider buying those products that are eco friendly, satisfied their need, within their affordability and the remains compliant with the laws. The study also revealed that the factors or the issue that fosters ethical consumer behaviour are age, confidence, maturity of the individual and emotions. On the other hand the societal factors include weakening of government, rapid globalization, intensification of the extensive corporate social responsibility and strong influence of the marketing campaigning among others. Also this is facing with some challenges as well. The challenges come in the form of reduced market and sustainability issue. However it offers the company an opportunity to gain competitive advantage by remaining fully compliant with ethical norms. Therefore based on the outcomes and analysing the aspects associated with the concept, it can be concluded that exhibiting ethical consumerism not only benefits the customers but also help the society to a large extent. References Brinkmann, J. (2008). Consumer ethics research: Reframing the debate about consumption for good. Electronic Journal of Business Ethics and Organization Studies, 13(1), pp. 22-31. Cherrier, H. (2005). Using existential-phenomenological interviewing to explore meanings of consumption. Retrieved from http://knowledge.sagepub.com/view/the-ethical-consumer/n9.xml. Ethicalconsumer. (No Date). A beginner’s guide: Ethical consumers. Retrieved from http://www.ethicalconsumer.org/linkclick.aspx?fileticket=20E2V6AnK5k%3D&tabid=1510. Harrison, R., Newholm, T., & Shaw, D. (2005). The ethical consumer. London: SAGE. Hines, C., & Ames, A. (2000). Ethical consumerism – A research study conducted for the co-operative bank. London: Mori. Jones, T. M. (1991). Ethical Decision-Making by Individuals in Organizations: An Issue-Contingent Model. The Academy of Management, 16(2), pp. 366-395. Kohlberg, L. (1969). Moral Stages and Moralization: The Cognitive Developmental Approach. New York: Winston. Noel, H. (2009). Consumer Behaviour. London: AVA Publishing. Parker, S. (2002). Retail week survey. Retrieved from http://www.icmresearch.com/pdfs/2002_october_retail_week_ethical_shopping.pdf. Prasad, V. (2009). Consumer Behaviour. New Delhi: Gyan Publishing House. Read More