Impact of Ethics on Consumer Behavior

This assignment investigates the growing trend of ethical consumerism and its impact on consumer behavior. It delves into how consumers perceive ethical brands, the role of trust and affect in shaping purchasing decisions, and the key factors influencing their choices. The assignment also explores the evolution of marketing ethics over time and emerging trends in ethical consumption.

ETHNIC CONSUMERISM

EXECUTIVE SUMMARY

Table of Contents
INTRODUCTION ..........................................................................................................................2
Ethical consumerism ..................................................................................................................2
Company review ........................................................................................................................3
Opinion survey............................................................................................................................5
CONCLUSION ...............................................................................................................................6
RECOMMENDATION ..................................................................................................................6
REFERENCE...................................................................................................................................7
APPENDIX .....................................................................................................................................9
Appendix 1: Questionnaire ........................................................................................................9
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INTRODUCTION
Ethical consumerism is the activity in which consumer makes efforts to purchase goods
and services from that particular organizations that uses ethical means with an aim to carry out
the production of products and services (Concept of ethical consumerism, 2015). This concept is
new and has been practised by many buyers that to purchase goods and services from the
particular firm. Nowadays, buyers are becoming more ethical and as a result of it they are
making efforts to purchase products from that firms which produces good without causing any
negative impact upon natural environment of the country.
For this report, famous travel and tourism firm of United Kingdom named as Thomas
Cook is selected. The given report will provide detailed explanation regarding the concept such
as ethical consumerism. In addition to this, the report will also showcase examples of different
products which fall into the ethical category. Furthermore, the study will also provide detailed
explanation regarding selected company which claims to operate ethically. Finally, at the end of
the report explanation relating to number of factors will be given which causes significant impact
upon consumer buying behaviour.
Ethical consumerism
Different authors have different views on the concept such as ethical consumerism. As
per the view point of Bray, Johns and Kilburn (2011) Ethical consumerism is the type of buying
habit which buyers adopt in which they make efforts to purchase or use the goods and services of
that specific organization which do not perform any illegal activity while purchasing the goods
and services. In addition to this, Howard and Allen (2010) have also stated that ethical
consumerism is the type of buyers which gives preference to varied activities while purchasing
the products. The activities involve following:
 The firm must be transparent.
 It must honour human rights.
 It must follow the fair labour practices.
 It should comply with sustainability feature.
 It must give clear and detailed information about the product.
Besides this, some products are identified which are being relied under ethical category.
It consists of travel and tourism firms, energy, charitable firm, fashion and food industry etc. For
example, food companies showcase their ethical behaviour by producing the varied food
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products with the help of natural and pure ingredients. In the similar way, cosmetic firms are also
fulfilling their ethical responsibility. It is done by them by using such ingredients in product
which do not affect the natural environment of the nation (Lewis and Potter, 2011).
Ethical consumerism is being regarded as one of the most effective way which each and
every firm must adopt. By adopting the given tactic, respective firms like Thomas Cook can
build positive image in the mind of its buyers. Thus, through this way firm can attract large
number of buyers towards its products and services. As a result of it, they can get the benefit in
the form of increased profits and sales (Schlegelmilch and Öberseder, 2012.). However, it has
been critically evaluated that it became difficult for the firms to follow all the ethical principles
when facing immense competition from the other corporations. In this context, it has been seen
that the manager of firms faces huge pressure in the competitive business environment. Due to
this, they have to make some unethical decisions which seem completely against the views and
opinions of the ethical consumerism. But, the company cannot survive in the business
environment for the longer period if it uses unethical approach or path. Thus, using the ethical
consumerism strategy is the good approach which every firm must adopt (Stanaland, Lwin and
Murphy, 2011).
Company review
On the basis of analysis, there are different type of companies identified which claims to
function ethically. However, among the number of firms, the company which is associated with
the travel and tourism industry is selected which is named as Thomas Cook. Thomas Cook is the
British global travel company which has its stock listed in London Stock exchange. The firm was
founded in the year 2007. It is the travel agency and it offers different types of products and
services such as passenger airline, packaged holiday, cruise lines along with scheduled and
charter airlines (Werther Jr and Chandler, 2010).
Thomas Cooks claims to operate ethically and the evidence of the same can be seen in the
ethical principles which is being followed by the company. In this context, on the basis of
analysis it is assessed that cited firm must comply with the sustainable tourism practices. Here,
71% of the hotels in which cited firm operates tend to hold the travelife sustainability award
(Thomas Cook Group plc launches its 7th annual Sustainability Report, 2015). This award is
given to those firms which adopts eco friendly practices while delivering the services to its
respective customers. In this regard, Thomas Cook encourage the hotels for educating thier
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customers with regard to adopt all type of sustainable practices. In this regard, the staff of hotel
makes sure that they must switch off all the lights in rooms whenever any guests check out. In
addition to this, firm also encourages the hotels to use cost effective LED lights which consumes
less energy. The steps which Thomas Cook adopts are small and it causes major impact upon
operation of the company in an effective manner (Zander and Hamm, 2010).
Here, by adopting the given ethical values, two way benefits are gained by the Thomas
Cook. Here, on the one hand cited firm can save different types of cost. Likewise on the other
hand, corporation can enhance as well as maintain the satisfaction of those customers who gives
first preference to ethical aspect while making the decision for purchasing the goods and services
from the specific enterprises. However, through this activity overall benefit can be gained by the
firm in the form of increased profits and sales.
In addition to this, Thomas Cook follows sustainable practices in its airline sector also. In
this regard, Thomas Cook made continual investment in the fuel efficiency type of practices.
The cited company operates one of the most effective aircraft fleet with 70.9g CO2 per passenger
kilometre. Through this way, cited firm is showcasing its ethical responsibility towards natural
environment of nation (Carrington, Neville and Whitwell, 2014). Furthermore, by complying
with the given type of activity only organization is maintaining the satisfaction level of its
buyers. In addition to this, Thomas Cook function ethically because it complies with all human
right related principles and practices. In this regard, it is assessed that cited firm make utmost
measure with regard to enhance as well as maintain the satisfaction level of its customers in an
effectual manner. Here, Thomas Cook provides all type of perks and rewards to its employees
which they always deserve. Furthermore, the cited firm also comply with all the employment
related principles which it has promised to its workers. In addition to this, the recruitment policy
of Thomas Cook is fair and effective (Katz, 2011).
In accordance with the given context, it is assessed that the corporation follows all
provisions of equality act when making the measure to fulfill the vacant position within
corporation. Here, firm will give importance to the skill and ability of individual rather than their
gender, caste and creed. Moreover, Thomas Cook organizes conservation and animal welfare
project. Thomas Cook organizes tours in number of country where it behaves ethically. Thomas
Cook make measures with regard to give best holiday experience to its buyers. But, in the
process of achieving the given objective cited firm also ensure that the natural environment of
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the nation will not be impacted in a negative way. These all are being consider as the part of
ethical aspect. Thus, it is correct to said that Thomas Cook is the company which function
ethically (Shen, Wang, Lo and Shum, 2012).
Opinion survey
In this section, survey has been conducted upon the GSM students in London. This
survey is conducted with an aim to get the information about the factors which leads to influence
the buying behaviour of customers. In this regard, sample of 10-15 students is selected. Here, in
order to assess their view points, primary research has been carried out. However, with an aim to
conduct the research the tool such as questionnaire is used. The given tool is effective as with the
help of this the views and opinions as being given by the buyers can be analysed in an effectual
way.
In accordance with the given context, on conducting the survey upon the GSM student
London, it is assessed that majority of the respondents have given positive response with regard
to the asked question that they given preference to the ethical aspect while purchasing the
products and services of any firm. This means that the young customers also give preference to
the ethical aspect. In this context, they have the opinion that they always prefer to purchase the
goods and services from that firm that comply with all type of ethical principles and practices.
Furthermore, on conducting the research upon the topic such as analysing the factors which leads
to influence the behaviour of GSM buyers it has also being identified that some students are
influenced through the views and opinions as being given by the friends and family members of
customers relating to the firm's product (Singh, Iglesias and Batista-Foguet, 2012). In this
context, it has also being seen that for some buyers product purchasing experience as being
communicated by their relatives matter a lot than that of other. Thus, if family members of
buyers have the bad experience from the products and services of the firm at that time the given
thing will lead to cause significant impact upon the behaviour of respective individual too.
In addition to this, from the opinions gather through survey conducted it has also being
assessed that students will not give second chance to the firm if at the first chance they had the
bad experience of purchasing the product. This is because, they believe that an individual must
not spend their money in giving second chance to the firm to whom it has bad experience of
purchasing (Solomon, Russel-Bennett and Previte, 2012). The quality of product is being
consider as one of the most significant factor which leads to cause necessary impact upon the
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buying behaviour of buyers in an effectual way. Overall, it can be said that social and personal
are being regarded as the two major factors which leads to influence the buying behaviour of
buyers (Smith, 2014).
CONCLUSION
From the whole report, it can be stated that ethical consumerism is the new and evolving
concept which is being followed by many customers. In addition to this, for the firms also it is
very essential that they must comply with the given concept when making the production of
goods and services. It is due to the fact that by relying upon the given concept, enterprise can
fulfill its ethical responsibility towards the nation in which it is working. The given thing will
also enable enterprise with regard to enhance as well as maintain the satisfaction level of its
buyers in an effectual manner. Through this way, overall impact can be seen by the firm upon the
sales and profits.
In addition to this, Thomas Cook is the firm which claim to operate ethically. Here, the
values and ethics which firm follows showcase that it complies with all type of sustainable
practices. Here, through this way only the corporation is getting the benefits in the form of
increase sales and profits.
RECOMMENDATION
Following recommendations are suggested to the manager of Thomas Cook.
 It is recommended to the cited firm that it must organize ethics education related training
and development related programs for its workers on monthly basis. Here, in this
program organization must educate its employees about ways that they must perform in
order to act ethically.
 It is also suggested to the firm that it should associate reward with the performance of the
employees. Here, firm should give reward to that particular employee only who have
behaved ethically or have done something ethically. Here, by complying with the given
type of practices, organization can attract large number of buyers who behave ethically.
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REFERENCE
Books and journals
Bray, J., Johns, N. and Kilburn, D., 2011. An exploratory study into the factors impeding ethical
consumption. Journal of Business Ethics. 98(4). pp.597-608.
Carrington, M.J., Neville, B.A. and Whitwell, G.J., 2014. Lost in translation: Exploring the
ethical consumer intention–behavior gap. Journal of Business Research. 67(1). pp.2759-
2767.
Howard, P. H. and Allen, P., 2010. Beyond organic and fair trade? An analysis of ecolabel
preferences in the United States. Rural Sociology. 75(2). pp.244-269.
Katz, M.A., 2011. The politics of purchasing: Ethical consumerism, civic engagement, and
political participation in the United States.
Lewis, T. and Potter, E., 2011. Ethical consumption: A critical introduction. Routledge.
Schlegelmilch, B. B. and Öberseder, M., 2010. Half a century of marketing ethics: Shifting
perspectives and emerging trends. Journal of Business Ethics. 93(1). pp.1-19.
Shen, B., Wang, Y., Lo, C.K. and Shum, M., 2012. The impact of ethical fashion on consumer
purchase behavior. Journal of Fashion Marketing and Management: An International
Journal. 16(2). pp.234-245.
Singh, J.J., Iglesias, O. and Batista-Foguet, J.M., 2012. Does having an ethical brand matter? The
influence of consumer perceived ethicality on trust, affect and loyalty. Journal of
Business Ethics. 111(4). pp.541-549.
Smith, N.C., 2014. Morality and the Market (Routledge Revivals): Consumer Pressure for
Corporate Accountability. Routledge.
Solomon, M., Russell-Bennett, R. and Previte, J., 2012. Consumer behaviour. Pearson Higher
Education AU.
Stanaland, A. J., Lwin, M. O. and Murphy, P. E., 2011. Consumer perceptions of the antecedents
and consequences of corporate social responsibility. Journal of Business Ethics. 102(1).
Pp.47-55.
Werther Jr, W. B. and Chandler, D., 2010. Strategic corporate social responsibility:
Stakeholders in a global environment. Sage Publications.
Zander, K. and Hamm, U., 2010. Consumer preferences for additional ethical attributes of
organic food. Food quality and preference. 21(5). pp.495-503.
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Online
Concept of ethical consumerism. 2015. [Online]. Available through:
<http://leadingincontext.com/2012/10/10/what-does-ethical-consumerism-mean-for-
business/>. [Accessed on 21st December 2015].
Thomas Cook Group plc launches its 7th annual Sustainability Report. 2015. [Online]. Available
through: <http://ethicalperformance.com/reports/view/918>. [Accessed on 21st December
2015].
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APPENDIX
Appendix 1: Questionnaire
Name:
Gender:
1. Do you give preference to the ethical aspect while purchasing the product from any firm?
 Yes
 No
2. Do you get easily influence with the views and opinions of your friends and family
members regarding any firm?
 Yes
 No
3. Do you give second trial to the firm where you had bad experience of purchasing the
product?
 Yes
 No
4. Which of the following factors is being consider by you while making the decision of
purchasing the product from specific enterprise?
 Quality of product
 Services given
 Employees behavior with buyers
 None of these
5. Suggest some measures for improving the services of enterprise?
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