Towards a Framework for Understanding Fairtrade Purchase Intention in the Mainstream Environment of Supermarkets

Despite growing interest in ethical consumer behaviour research, ambiguity remains regarding what motivates consumers to purchase ethical products. While researchers largely attribute the growth of ethical consumerism to an increase in ethical consumer concerns and motivations, widened distribution (mainstreaming) of ethical products, such as fairtrade, questions these assumptions. A model that integrates both individual and societal values into the theory of planned behaviour is presented and empirically tested to challenge the assumption that ethical consumption is driven by ethical considerations alone. Using data sourced from fairtrade shoppers across the UK, structural equation modelling suggests that fairtrade purchase intention is driven by both societal and self-interest values. This dual value pathway helps address conceptual limitations inherent in the underlying assumptions of existing ethical purchasing behaviour models and helps advance understanding of consumers’ motivation to purchase ethical products.     

Ethical consumption behaviours in supermarket shoppers: determinants and marketing implications

Understanding how consumers make ethical purchases has numerous benefits for firms and other stakeholders. Although several ethical decision-making frameworks seek to explain such purchasing behaviour, they typically focus on the content of such decisions, rather than considering how such decisions unfold in a given context. Yet, the complexities of consumer choice suggest that greater insight into how consumers make ethical purchases in store can enhance understanding. We report our findings from a survey of a geographically disperse sample of 688 UK shoppers and argue that a naturalistic theory of decision making, image theory, enhances our ability to explain consumer behaviour in this setting. As well as contributing to theoretical understanding of consumer choice, this has implications for the merchandising of ethical products, such as Fair Trade and ‘green’ goods.     

Consumers' Perceptions of Corporate Social Responsibilities: A Cross-Cultural Comparison

Based on a consumer survey conducted in France, Germany, and the U.S., the study investigates consumers' readiness to support socially responsible organizations and examines their evaluations of the economic, legal, ethical, and philanthropic responsibilities of the firm. French and German consumers appear more willing to actively support responsible businesses than their U.S. counterparts. While U.S. consumers value highly corporate eco-nomic responsibilities, French and German consumers are most concerned about businesses conforming with legal and ethical standards. These findings provide useful guidance for the efficient management of social responsibility initiatives across borders and for further academic inquiries.     

Emotions and dissonance in ‘ethical’ consumption choices

Abstract

This paper investigates the role of emotions and the prevalence of dissonant/incongruent choice behaviour within the context of ethical consumption. Based on 31 in-depth interviews with British consumers, the findings demonstrate that consumers consciously indulge in ‘ethical’ and ‘unethical’ behaviour (as defined by respondents themselves), often within short time frames, and that they often compensate for unethical choices by making ethical choices later on (and vice versa). The study provides evidence that positive and negative emotions are a key driver of this dissonant behaviour. Guilt is the most salient emotion, and a taxonomy of guilt in this context is derived from the data. Consumers are found to employ guilt-management strategies in order to sustain contradictory behaviour and manage cognitive dissonance. A conceptual framework is derived in order to summarise the observed role of emotions in ethical consumer choice. The paper also provides additional explanations of the manifestation of the attitude–behaviour gap.     

The Environmental Commitment of Consumer Organizations in Denmark, the United Kingdom, The Netherlands, and Belgium

Consumer organizations have traditionally been concerned with protecting, informing, and educating the "weak" consumers. These policies were deemed necessary because of the unequal power balance and conflicts of interests between consumers and producers. Since there are also conflicts between the interests of nature on the one hand, and consumers and producers on the other, this article discusses the rationale of consumer organizations' involvement in environmental issues while considering their original objectives. More specifically, it is aimed at identifying the commitment of several European consumer organizations with respect to environmental issues during the past two decades in order to assess whether and how environmental issues are internalized in consumer policy across time.     

Do You Need a Receipt? Exploring Consumer Participation in Consumption Tax Evasion as an Ethical Dilemma

The paper focuses on the consumer side of consumption tax evasion (CTE), a subcategory of the shadow economy. The ethical dimensions of tax evasion have been effectively captured by the existent literature on tax morale, yet it fails to address the role consumers can play in CTE. Further, there is a shortage of tax morale studies that explore ethical decision making as a process composed of multiple steps and determinants. To bridge these gaps, we turned to the consumer ethics literature and Jones’ issue-contingent model of ethical decision making. We developed the conceptual model of consumer ethical decision making for CTE by incorporating four key elements from the issue-contingent model, i.e. moral recognition, moral judgement, moral intention and moral intensity, while personal moral philosophies were introduced as an antecedent to the consumer ethical decision-making process. The study was conducted on a sample of consumers from Slovenia, where CTE is a widespread phenomenon. The findings confirm that consumers’ recognition of CTE as a moral issue is influenced by their moral philosophy and perceptions regarding the magnitude of CTE’s consequences, their visibility, probability, and temporal immediacy. These perceptions also play an important role in determining consumers’ moral judgements and intentions regarding CTE. Moreover, through the process of moral recognition and moral judgement, consumers form intentions to participate in, or avoid CTE. The study holds important implications for public policy makers who are trying to reduce the tax gap in times of economic instability and fiscal crisis.     

Towards an understanding of consumer recycling from an ethical perspective

Recycling is a post‐purchase consumer activity where the consumer usually considers not only individual but also social goals, ideas and ideologies. Accordingly, ethics is an inherent part of recycling; however, very few studies have explored this behaviour from an ethical point of view. The purpose of this paper is to explain consumer recycling by taking a multifaceted ethical approach. The conceptual model builds on theoretical underpinnings related to ethical consumption by exploring the extensions of the theory of planned behaviour, Jones' ethical decision‐making model and Holbrook's conceptualization of ethical consumption. Thus, the attitude‐intention framework incorporates three ethics‐related concepts: (1) moral obligation, i.e. the level of guilt to perform the behaviour, (2) moral intensity, i.e. the moral issue characteristics, and (3) collectivism, i.e. an individual‐level value orientation. The data were collected from a sample of Slovenian consumers, using an online consumer panel. The sample reflected the Slovenian population in terms of gender and age. The proposed conceptual model was tested using structural equation modelling. The results suggest the proposed ethical concepts play a significant role in the attitude‐intention framework. The more collectivistic individuals have more positive attitudes towards recycling. Moreover, the more consumers perceive recycling as morally intense, the more favourable their attitudes are. In turn, attitudes positively affect intentions to recycle. In addition, higher levels of moral obligation positively influence intentions to recycle. The only hypothesis that is not supported in this study refers to the influence of moral intensity on intentions to recycle. The implications for public policymakers and social marketers stem from a complex interplay of the antecedents of recycling behaviour. Future studies could go in several directions by extending the model to other moral issues, conducting a study in a cross‐cultural setting or taking a longitudinal approach.     

Consumer Religiosity: Consequences for Consumer Activism in the United States

In recent times, organizations have experienced consumer backlash as a result of decisions to support controversial causes. To date, little research has attempted to explain consumers’ negative response as a function of religion. This study addresses that gap in the literature and examines consumer religious commitment and Christian consumers’ conservative beliefs in the United States as motivating factors for consumer activist behavior and boycott participation. Findings from a national sample of 531 consumers suggest that consumers evaluate seller’s actions and form ethical judgments. These judgments are a major explanatory variable in consumers’ voice complaints, third-party complaint intentions, and boycott intentions.     

Consumer empowerment: global context,UK strategies and vulnerable consumers

Globalization has created new consumer needs and wants, and resulted in consumer confusion regarding the increasing complexity of products and services. This has stimulated global interest in educating and empowering consumers. The UK government has made a very ambitious commitment to ensure that the framework for consumer empowerment and support is at the level of the best in the world by 2008. The government, many consumer organizations and regulators believe that empowered consumers are key to the success of competitive markets. Two national strategies to co‐ordinate activities in the UK have been developed by the Office of Fair Trading (OFT) and the Financial Services Authority (FSA). The OFT consumer education strategy aims to deliver targeted, effective consumer education by increasing co‐ordination and making the best use of available resources. The FSA is leading a financial capability strategy designed to deliver change to improve the UK's financial capability. Both strategies share a vision of educated and confident consumers making informed choices about the products and services they buy, and both aim to empower vulnerable consumers. Given the global interest and the development of national strategies, it is useful to consider what is meant by the term consumer empowerment. Is there a shared view of consumer empowerment internationally? Does the education of consumers result in empowered consumers? To what extent do the national strategies address the empowerment of vulnerable, disadvantaged, excluded or susceptible consumers? These questions will be addressed in this article which reviews the global context for the consumer education and empowerment agenda and considers key UK developments, with particular reference to the needs of vulnerable consumers. The study found that the language of consumer empowerment is gaining prominence in policy and strategy documents at the highest levels internationally in the Organisation of Economic Cooperation and Development and the European Community, and nationally in the UK.     

Organic purchasing motivations and attitudes: are they ethical?

Despite the increased documentation of consumers’ purchases of organic food products, the motivations for such purchases are relatively under‐researched. An individual’s choice of food products can be linked clearly to ethical stances, but ethical choices can also vary from individual to individual, from industry to industry and among countries. Consequently, this paper investigates the degree to which ethical beliefs influence Scottish consumer perceptions, beliefs, attitudes and purchasing decisions, with regard to organic dairy products. Consumer purchasing motivations are revealed as being self‐interest‐centred (i.e. better tasting, safer), rather than altruistic. Therefore, to achieve future market development, organic dairy producers cannot rely upon the minority of hardcore green consumers to sustain growth, but must aim to modify perceptions and attitudes of larger consumer segments by implementing educational marketing campaigns that reinforce the ethical, environmental and societal benefits of organic production.     

Neuromarketing: Ethical Implications of its Use and Potential Misuse

Neuromarketing is an emerging field in which academic and industry research scientists employ neuroscience techniques to study marketing practices and consumer behavior. The use of neuroscience techniques, it is argued, facilitates a more direct understanding of how brain states and other physiological mechanisms are related to consumer behavior and decision making. Herein, we will articulate common ethical concerns with neuromarketing as currently practiced, focusing on the potential risks to consumers and the ethical decisions faced by companies. We argue that the most frequently raised concerns—threats to consumer autonomy, privacy, and control—do not rise to meaningful ethical issues given the current capabilities and implementation of neuromarketing research. But, we identify how potentially serious ethical issues may emerge from neuromarketing research practices in industry, which are largely proprietary and opaque. We identify steps that can mitigate associated ethical risks and thus reduce the threats to consumers. We conclude that neuromarketing has clear potential for positive impact on society and consumers, a fact rarely considered in the discussion on the ethics of neuromarketing.     

Young consumers’ green purchase behaviour in an emerging market

Young consumers represent a powerful engine in the development of environmentally conscious population as well as a promising market for green products. Marketers and organizations are therefore increasingly developing strategic marketing campaigns and environmental education programmes that target the young consumer segment. This study aims to examine a number of rational, moral, emotional and self-identity factors that may facilitate or impede green purchase behaviour among young consumers in an emerging market, Vietnam. A paper-based survey was employed to collect data from university students, which yielded an effective sample of 289 respondents. Multivariate statistics revealed that most factors (i.e. knowledge, attitudes, personal norms, self-identity and perceived barriers) significantly affected consumer purchase of energy efficient appliances, except for subjective social norms and warm glow. From these findings, implications for marketers, policy-makers and other stakeholders engaged in promoting green products are discussed.     

Ethics Gap: Comparing Marketers with Consumers on Important Determinants of Ethical Decision-Making

Studies in marketing ethics often revealed that ethical gaps do exist between marketers and other groups in society. The existence of these ethical gaps could be extremely counterproductive for marketing management. In order to effectively narrow these gaps, a marketing manager must first have a better understanding of causes of these gaps. To this end, this study compares marketing professionals with consumers on some important determinants of the ethical decision-making process. In particular, the marketers and consumers were compared with respect to their personal moral philosophies and ethical perceptions in marketing situations. The data were obtained from a national survey of the practitioner members of the American Marketing Association and members of a consumer panel of a major southern university in the United States. The results generally indicate that marketing professionals are different from consumers with respect to some of the determinants of ethical decisions investigated. Some important managerial implications based on these findings were discussed.     

Policy implications

Abstract: In the European Union, the framework of financial services legislation at EU level has been aimed primarily at forming a single market for banks, insurers and other financial services firms. Substantial progress has been made towards this objective. Also, the EU initiatives have stimulated a reappraisal of national regulatory systems. Most of this EU legislation (with the exception of the consumer credit directives) has not had consumer protection as one of its main aims, although it has been assumed that consumers will eventually benefit from a wide choice of financial services providers and from price competition. However, partly in response to consumer pressure, the European Commission is developing a set of initiatives more closely geared to protecting consumers’ interests. Within the context of the EU’s approach, there remain considerable variations in the approach to protecting consumers’ interests in different member states as a result of legal and cultural differences.     

Verbraucherpolitik als gewerkschaftliche Aufgabe

Trade unions and consumer policy. In the first part of his essay, the author discusses the position of the DGB (Deutscher Gewerkschaftsbund), the largest and most important of the West German trade unions, in the field of consumer policy. Consumer policy has been part of the statute of the DGB since 1971. Trade unions in West Germany regard themselves as consumer organisations because their members are consumers as well as employees, and consumer policy is understood to be part of the general economic policy of the unions. In 1975, the congress of the DGB accepted a programme of consumer policy. The programme demands that consumers rank equal with producers in the market. This goal should be reached by price competition (as a dominant factor of competition), by transparency (Markttransparenz) of prices and quality, and by the appointment of an ombudsman as a legal caretaker of consumer interests. The DGB rejects new consumer organisations, because in its view the trade unions constitute a well organised consumer institution. There is some cooperation, however, with the Arbeitsgemeinschaft der Verbraucher, the chief German organisation for consumer affairs. The author disagrees with legal writers who deny trade unions a right of claim against unfair competition and against unfair standard contract clauses, according to para. 13 of the German Unfair Competition Act. In the second part of his essay, the author analyses the legitimation of trade union consumer policy. The discussion concerns the question of whether or not employees are the only consumers who are in need of protection, and if there is a conflict between their interests as employees and as consumers. The author suggests that legal consumer protection should shield only individual persons as buyers (not small firms, for example). Furthermore, consumer interests should be defined from the perspective of the consumer who is anemployee. A consumer who is at the same time an employer, does not need protection because he can compensate for the disadvantages sustained in his consumer role by exploiting his position as an employer. Conversely, the employee-consumer has the weaker position in both of his roles. Another important question is whether or not there is a conflict between a high standard of consumer protection and a high level of wages. The author cites some economists who suggest that this conflict may be resolved, and that the real conflict is not between consumers and employees, but between those two on the one side and business on the other. The author draws the conclusion that there exists a theoretical legitimation for trade unions to represent the consumer interest. There is a wide gap, however, between the programmes of the trade unions and their policy as evidenced by their everyday activities. The hope is expressed that this gap will become narrower.     

Beyond organic: consumer interest in new labelling schemes in the Central Coast of California

Producers are interested in developing labelling schemes that go ‘beyond organic’ to address ethical criteria not included the US Department of Agriculture organic standards. However, consumer interests in labels that are not as widely available as organic in the market are poorly understood. This study reports results of focus‐group research and a survey of 1000 households in the Central Coast region of California to determine which standards consumers are most interested in supporting through their purchases. The results indicate that standards for the humane treatment of animals have the highest level of support, followed by a standard for local origin, and for a living wage for workers involved in producing food. Logistic regression analysis suggests that humane is more likely to be chosen by women, European‐Americans, younger people and frequent organic purchasers. Locally grown was preferred by older people and households with children. A living wage for workers involved in food production was selected more often by Latinos. Although a characterization of trends is not possible due to a cross‐sectional design, the results suggest some potential directions for producers in this region who are willing to supply unmet consumer demands for ethical criteria. There are three basic directions that new and emerging labels may take with respect to US national organic standards: (1) separate from organic; (2) institutionally separate, but tightly integrated with organic; and (3) intended to supplant organic. The success of each of these strategies will depend on how much trust consumers continue to place in government oversight of organic food. The study results also suggest that the movement for a more sustainable food system would benefit from devoting more attention to issues of animal rights and social justice.     

The Role of Moral Emotions and Consumer Values and Traits in the Decision to Support Nonprofits

We investigate the mediating role of moral emotions and their contingency on individual characteristics between perceptions of corporate ethical/unethical actions and consumer support for nonprofits. We conducted two between-subjects experiments to test our hypotheses on a sample of adult consumers. The results show that social justice values moderate elicitation of gratitude upon exposure to corporate ethical actions, which subsequently impacts consumer support for nonprofits. Furthermore, important individual characteristics (social justice values, moral identity) moderate the elicitation of negative moral emotions (contempt, anger, disgust) upon perception of corporate unethical actions, which then leads to consumer support for nonprofits. Our study adds to extant research on prosocial behavior by investigating how actions by for-profit companies impact individual helping and by examining a new psychological mechanism (i.e., moral emotional processes and their contingencies) underlying consumer support for nonprofits.     

Ethical judgment in business: culture and differential perceptions of justice among Italians and Germans

This study focuses on the cultural context of ethical decision making by considering the relationship between power distance and ethical judgment. Specifically, we propose that this relationship exists because of the influence of peers on ethical judgment and perceptions of justice. Considering the importance of peers in stage three of Kohlberg's model of moral development, we argue that peers are the basis for social comparisons, social cues and social identification and, hence, are critical to an individual's beliefs about justice. Using scenarios developed by Reidenbach and Robin, data were collected from German and Italian graduate business students. Germany and Italy differ substantially in power distance, but not in the three other cultural dimensions of Hofstede. Results show that the ethical assessment of the respondents from the two countries differs when justice criteria are used. Theoretical and practical implications of the results are discussed.     

Consumers' Punishment and Rewarding Process via Purchasing Behavior

While there have been many studies of the ethical behavior ofmanagers, little research investigated the ethical beliefs andideologies of consumers. Moreover, even less is known about therelationship between consumer beliefs and ideology and purchasingbehavior. The present study investigates the extent to whichconsumers punish or reward what they perceive as either a firm'sethical or unethical behavior. The research model was tested onsamples of Israeli and Turkish respondents. The results indicatethat personal economic benefit, ideology (idealism versusrelativism), economic cost to others and locus of control explainconsumer reaction to ethical, purchasing dilemmas. Moralexpectations did not influence whether a consumer would purchasein a store offering an unethical proposition. Apparently,material gain, if large enough, outweighs one's moralpredisposition. Idealists were found to be less likely topurchase in an unethical store situation. The Turkish respondentswere more concerned with economic cost to others than the Israelirespondents, apparently owing to cultural differences between thetwo groups. Finally, those respondents having higher internallocus of control were found to be more ethical.     

Preference for Locally Grown or Imported Fruit Among the Millennial Generation in Johor,Malaysia

This study attempts to explore factors influencing the choice of locally grown or imported fruits among young Malaysians. It investigates how consumer preference, socioeconomics, and demographic profiles can affect their choice of which fruit category they pick. Five hundred respondents were interviewed by using a structured questionnaire to collect information related to their fruit preferences and choices. The millennium generation in Malaysia, especially the Malay living in Johor, were surveyed as a representation of future consumers of fruit and their subsequent choices and demand. Factor analysis was carried out on statements regarding consumer preferences on choices of local or imported fruit. Five factors were identified as the outstanding consumer preferences for fruits. Demographic profiles of the respondents such as family size, and dimension of fruit preferences, including country of origin, perceived quality, and environmental concerns, were important factors that affect consumers’ purchasing behavior in choosing locally grown or imported fruits. Logit regression indicated that family size, country of origin product quality, perceived quality, and variety of fruits will likely influence the preferences for fruit among the younger generation.