Contrasting the Behavioural Business Ethics Approach and the Institutional Economic Approach to Business Ethics: Insights From the Study of Quaker Employers

The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have to be prioritised over behavioural business ethics, which tends to analyse morality at the level of the individual and favours behavioural intervention with the individual’s value, norm and belief system, e.g. through ethical pedagogy, communicative techniques, etc. Quaker ethics is taken as an example of behavioural ethics. The article concludes that through the conceptual grounding of behavioural ethics in the economic approach, theoretical and practical limitations of behavioural ethics, as encountered in a modern context, can be relaxed. Probably only then can behavioural ethics still contribute to raising moral standards in interactions amongst the members (stakeholders) of a single firm, and equally, amongst (the stakeholders of) different firms. Dr. Sigmund Wagner-Tsukamoto is researcher in business ethics, organisational economics and economic issues that concern the Old Testament. He is placed at the School of Management of the University of Leicester, UK. He holds two doctorates, one in social studies from the University of Oxford, UK, and one in economic studies from the Catholic University of Eichstaett, Germany. He has widely published on green consumerism and institutional economic issues that concern organization theory, business ethics theory and an economic interpretation of the Old Testament. His publications include the books Understanding Green Consumer Behaviour (Routledge, 2003) and Human Nature and Organization Theory (Edward Elgar, 2003).     

Overcoming the psychological barriers to energy conservation behaviour: The influence of objective and subjective environmental knowledge

Energy conservation is a crucial aspect of responsible consumption which is the reflection of individual efforts for sustainability. However, especially young consumers are reluctant to reduce their energy consumption despite their pro‐environmental attitudes. Resistance to behavioural change can be attributed to various psychological barriers that help consumer to avoid engaging in pro‐environmental actions. In this context, the first aim of the study is to extend the theoretical and empirical evidence regarding impeding effects of psychological barriers on individual energy conservation behaviour. Secondly, the study investigates the alleviating role of environmental knowledge on those barriers that limit energy conservation. Proposed impeding effects of objective and subjective environmental knowledge on various denial mechanisms, which are in turn expected to hinder energy conservation, were tested using the survey data collected from young Turkish consumers. Results suggest that denial mechanisms hinder young consumers’ energy conservation behaviour indirectly through diminishing feelings of moral obligations. Moreover, it was found that objective environmental knowledge's effect can be used to break down the psychological barriers and to facilitate the change towards more sustainable energy consumption patterns. Implications of the findings and directions for future research are discussed.     

Behavioural Economics: Next Steps

This essay briefly reviews select key accomplishments of a young field, behavioural economics, and then turns to suggest additional steps that are called for by the nature of the subject (economic behaviour) and the approach to its study embodied in this relatively new field (for a previous such survey, please see Fudenberg (Journal of Economic Literature, 44:694–711, 2006)).     

A different perspective on consumer engagement: exploring the experience of using health apps to support healthier food purchasing

ABSTRACT

Healthy food purchasing behaviour may be facilitated through the use of health apps if used for the necessary time period. However, little is known on the factors that influence the user experience and facilitate or impede their continued use. The purpose of the present research is to explore the lived experience of using a health app to support healthier food purchasing behaviour. Findings identify the presence of behaviour change motivation and anticipated effort levels as drivers of app engagement. It appeared that behavioural, cognitive and emotional dimensions of engagement may influence one another, driven by contextual influences, to simultaneously contribute to the intrinsic experience of engagement. The research makes practical and theoretical contributions to the consumer engagement literature and highlights the need to focus on understanding and capturing the specific engagement context to better understand engagement.     

Behavioural Economics in Unfair Contract Terms

The domain of behavioural law and economics is winning increasing attention also in the field of consumer policy. How the insights of behavioural law and economics can be used in policy remains, to a large extent, unclear. In this article, the following question is asked: “To what extent can the insights from the behavioural literature be applied in a way to formulate concrete suggestions to policy makers?” The authors show that many of the findings of the behavioural literature are very context-specific and hence apply only with respect to particular products or services and particular consumer groups. Formulating general policy conclusions is therefore difficult. However, as far as the specific domain of standard form contracts is concerned, the authors argue that the behavioural literature has shown that the traditional remedy (mostly resulting from information economics), being to focus on information disclosure will not be able to remedy market failures resulting from failing information and the "signing-without-reading-problem." Hence, more substantive forms of intervention in standard form contracts (e.g., resulting from collective bargaining) may be indicated as a remedy.     

New approaches in transportation planning: happiness and transport economics

The measurement of social and psychological phenomena has been advanced by recent progress in the fields of behavioural economics and hedonic psychology. In addition, the increased interest in understanding how individuals perceive their own quality of life, has led to investigating the relations between various macro and individual level variables, generically subsumed as happiness. For many “happiness is considered to be an ultimate goal in life” and it plays an important role in the way people perceive the overall society they live in. Therefore, social scientists and behavioural economists are now stressing the importance of well-being measures, related to people’s evaluations of their quality of life in addition to economic indicators. In the transport sector, project evaluation is mainly based on cost–benefit analyses using economic indicators. However, any provided transportation project/service impacts the quality of the travel experience, the well-being of travellers and their travel behaviour. Competitiveness of modes may be also affected by the promotion of derived or experienced travellers’ well-being. Thus, existing behavioural travel choice models should be enhanced with regards to their behavioural validity incorporating the impacts of travelling happiness/ satisfaction. This study aims to understand and model the impact of stated (anticipated) happiness in the decision choice between a private transport mode—car, and a public transport mode—metro.     

对流通理论与流通经济学科发展的几点思考

文章梳理了流通理论在当代西方经济学的发展历程,揭示了各种经济学流派对流通理论研究的影响。进而分析了全球化背景下中国经济面临的挑战以及现代流通的特点及其在经济体系中的重要作用,明确了构建我国流通理论体系的重要性。最后从流通理论核心概念的界定、流通理论研究对象的确定与学科体系的构建、流通理论研究方法的创新等方面提出了我国流通理论研究与学科体系构建的思路。     

Consumer Attitudes and Decision-Making With Regard to Genetically Engineered Food Products – A Review of the Literature and a Presentation of Models for Future Research

Few studies have to date explained consumer attitudes and purchase decisions with regard to genetically engineered food products. However, the increased marketing of genetically engineered food products and the considerable concern that consumers seem to express with regard to the technology call for the development of a theoretical basis for research into these issues. The aim of this article is to present three models which the authors have developed to explain consumer attitudes, buying behaviour, and attitude change with regard to genetically engineered food products.All three models build on established consumer behaviour theory and on existing and comparable research in the field. Consumer attitudes toward genetic engineering in food products are explained in an attitude model that builds on Fishbein's multiattribute attitude model but deviates from Fishbein's model in a number of ways. Consumer buying behaviour with regard to specific genetically engineered food products is explained in a behavioural intention model which uses Ajzen's Theory of planned Behavior as its point of departure. How consumers' attitudes towards genetically engineered food products are affected by various information strategies, finally, is explained in an attitude change model which integrates aspects of the Elaboration Likelihood Model and Social Judgment Theory. The model specifically takes into account the impact of source credibility and various informational factors, such as persuasive content of the information provided, on attitudes.     

The average consumer, the unfair commercial practices directive, and the cognitive revolution

This article examines the merit of the test of the average consumer as a basis for judicial and regulatory action. In the first part, we describe the origin of the test, its application in the Unfair Commercial Practices Directive and its possible developments. In the second part, we discuss the theoretical grounds of the average consumer test (i.e., information and rationality), drawing upon the studies of cognitive psychology and behavioural economics concerning consumers’ behaviour. The result of our analysis is that we call into serious question the practical workability of the test of the average consumer, which requires consumers an overly demanding standard of rationality and information without dedicating much attention to the real functioning of consumer behaviour. The average consumer may be described as an interesting, anti-paternalistic and, to some extent, useful notion. It is, however, an overly simplistic concept with little correspondence with the real world of individual consumer behaviour and should be reinterpreted more flexibly, or even abandoned to mirror consumer behaviour more effectively.

Towards a richer understanding of consumers in social marketing contexts: Revisiting the stage of change model

Abstract

In this paper, we present data from an 18-month-long longitudinal study of a sample of 40 people who received a test for cancer and who were subsequently advised by health professionals on the dietary changes that would lead to improved health. This study investigates the ways that behaviour change is instigated (or not) and how people cope with these changes. We use the Stages of Change model to categorise people by their dominant behavioural response to the test (maintainers, recyclers, no change). From these categorisations, we develop an in-depth understanding of the experience of their behavioural response. By looking at the three possible behavioural responses in this way, we provide insights into the different cognitive, emotional, and behavioural response to the disease trigger. We evaluate the implications for social marketing theory and public policy makers.     

Factors motivating male consumers’ eco‐friendly apparel acquisition in the South African emerging market

The necessity of pro‐environmental apparel behaviour is to date a neglected concept in the local South African apparel industry. This study focuses on male consumers’ underlying motivation and intent to acquire apparel in an eco‐friendly manner. The research hypotheses and framework for this study are based on the Norm‐Activation Theory and the Theory of Planned Behaviour to clarify underlying motivational factors that contribute to pro‐environmental apparel acquisition. Pro‐environmental approaches were conceptualized as consumers’ purposive reduction of the amount of apparel acquired as well as the evaluation and selection of apparel based on pro‐environmental attributes. A quantitative, cross‐sectional survey approach was used for explanatory research purposes. Male consumers (18 years and older, n = 305) were reached by means of non‐probability, purposive sampling. Respondents completed online and paper‐based questionnaires that included adapted scale items for use in the local context. Results suggest that respondents are aware of the environmental consequences of their apparel behaviour, which then ultimately influences their behavioural intent. In contrast to studies conducted abroad, social and moral norms did not significantly influence their decisions to acquire apparel in a pro‐environmental manner. Respondents’ attitudes and self‐efficacy (i.e. a dimension of perceived behavioural control) contributed to their pro‐environmental intent. Yet, controllability (another dimension of perceived behavioural control) was not a significant predictor of intent and warrants further empirical research. The findings of this study substantiate important recommendations for the development of intervention strategies to promote pro‐environmental apparel behaviour in emerging market contexts such as South Africa.     

Editorial: On submitting economics articles to JBV

This editorial provides guidance to authors considering submitting papers with economics content to Journal of Business Venturing. The aim of the journal is to publish high-impact articles on entrepreneurship which combine methodological rigor with comprehensibility (‘accessibility’). Since many economics articles are technically demanding, accessibility to non-technical readers can be a major challenge for authors. This editorial provides some advice for authors of such articles to make their articles more closely targeted on the core interests of the journal's readership and more accessible to non-technical readers. To this end, the editorial suggests that potential authors might benefit from adopting one of the following ‘3R’ strategies: ‘Remove’, ‘Reduce’ or ‘Relate’. It is hoped that this editorial provides useful and actionable guidance for economics researchers submitting theoretical and empirical papers to Journal of Business Venturing.     

Developing a contemporary conceptualization for consumer sciences in higher education in the UK

Consumer sciences and consumer studies as a recent interdisciplinary degree area in higher education in the UK has had limited published research either on the subject heritage or its disciplinary identity. Since the major subject review was undertaken by the Council for National Academic Awards 17 years ago, the research investigation aimed to study how consumer studies and home economics had moved to consumer sciences and consumer studies. The research has therefore involved a survey over a 15‐year period of development and changes of institutions and degrees and a content analysis of programme outlines and national benchmarking to reveal changing trends in how the subject has been conceptualized. The comparison used data from 1992, 1999, 2003 and 2007 to map degree programme and institutional changes. External and internal political and economic factors influenced subject growth, decline and development. It was found that the number of degree programme titles had remained relatively stable, with still a balance between BA and BSc degrees but that this disguised many changes in institutions and degree titles. The content analysis of trends was undertaken, comparing 1992, 1999, 2003 and 2007. Subject benchmarking statements introduced in 2002, currently being revised in 2009, were compared with programme content themes in 2003 and 2007. The content analysis showed that the overall approach or principles, areas of study, context, perspectives and processes for degree programmes at the undergraduate level had developed noticeably over the last 15 years and had been clarified by benchmarking guidelines. Themes of behavioural change, consumer ethics, consumer services, skills and education, sustainability and well‐being had developed with applied contexts depending on programme orientation. A model has been proposed to illustrate the current conceptualization of the subject in the UK at degree level, and Chenoweth's definition of consumer sciences and consumer studies has been redefined for the UK. It is recommended that there should be more theoretical reflection on the interpretation and development of the subject.     

Behavioural Finance and Investor Protection Regulations

The article deals with behavioural assumptions in legal norms, in particular with regard to investor protection norms in Europe and Germany as well as court rulings. Whereas traditional legal norms are based on the assumption of rationale behaviour, the financials crisis has demonstrated the pitfalls of the classical notions of economics, thus leading to new insights of behavioural economics. However, it is still unclear how behavioural economics may serve as a means to improve legal protection of investors. Neither a strong paternalism nor a simple extension of information obligation may suffice in the future.     

Aiding Decision Making to Reduce the Impacts of Climate Change

Utilizing theory and empirical insights from psychology and behavioural economics, this paper examines individuals’ cognitive and motivational barriers to adopting climate change adaptation and mitigation measures that increase consumer welfare. We explore various strategies that take into account the simplified decision-making processes used by individuals and resulting biases. We make these points by working through two examples: (1) investments in energy efficiency products and new technology and (2) adaptation measures to reduce property damage from future floods and hurricanes. In both cases there is a reluctance to undertake these measures due to high and certain upfront costs, delayed and probabilistic benefits, and behavioural biases related to this asymmetry. The use of choice architecture through framing and the use of default options coupled with short-term incentives and long-term contracts can encourage greater investment in these measures.     

Plastic bag politics: modifying consumer behaviour for sustainable development

The adverse environmental impacts of plastic bags, including production energy costs, limited lifespan, increasing landfill content and inability to biodegrade, provide symbolic and practical evidence of a ‘throwaway’ consumer culture which acts as a significant barrier to sustainable consumption in particular and sustainable development in general. Decoupling consumer behaviour from plastic bag use is therefore an important challenge in the pursuit of sustainable consumption as a precursor to achieving sustainable development. This article provides a critical evaluation of that challenge, set within the theoretical framework of sustainable development. It examines the adverse environmental impacts of plastic bag use and evaluates initiatives by governments and businesses internationally to change consumer behaviour regarding the use of plastic bags in line with sustainable development principles. The politics of this agenda are analysed using a combination of consumer policy and public policy perspectives. Finally, the article draws conclusions regarding the earlier analysis.     

Conceptualising consumers’ word-of-mouth behaviour intention: evidence from a university education services in Malaysia

The aim of this study is to propose a theoretical model to examine consumer word-of-mouth (WOM) behavioural intention in Malaysian education services. The results from a survey of 247 respondents indicate that servicescape, service recovery, service quality and satisfaction significantly affect consumers’ intention to engage in WOM behaviour. The results support majority of the hypothesized relationships, suggesting that servicescape and service recovery function as antecedents, directly affecting consumer perceptions of education service quality. The analytical results also demonstrate that perceived service quality positively affects satisfaction, which subsequently induces consumers’ behavioural intentions. Consistent with previous empirical studies, our findings suggest that satisfaction is a super-ordinate construct with a positive relation to behavioural intention, and significantly mediates the effect of service quality on the intention to engage in WOM behaviour. The insignificant direct effect from service quality to WOM further suggests the role of satisfaction as a complete mediator in the university education service setting. Implications for future research are discussed and limitations noted.     

Conducting qualitative and quantitative analyses of sustainable behaviour

Despite the efforts of academics, governments and industries, consumers do not have sufficient environmental education, attitudes and knowledge to change their behaviour. In terms of sustainable behaviour, most research has been focused on attitudes, while fewer studies have paid attention to and employed qualitative and quantitative analysis to sustainable behaviour investigation. This paper uses qualitative and quantitative analyses to explain sustainable behaviour and demonstrate the mutual relationships between environmental development, environmental impacts and sustainable behaviours. The results not only fill the gaps in the integration of qualitative and quantitative analyses of sustainable development but also provide theoretical and managerial implications for sustainable development in Taiwan.