2LITERATURE REVIEW Table of Contents 1. Introduction............................................................................................................................3 2. Description of Search Process................................................................................................3 3. Critical Analysis of the Literature..........................................................................................4 4. Implication and Conclusion...................................................................................................6 5. Summary table.......................................................................................................................6 6. References:...........................................................................................................................11
3LITERATURE REVIEW 1. Introduction Social responsibility and marketing ethics are highly controversial and there are years of researches that continue to depict the challenges and conflicts for the marketers on the importance of socially responsible approach for the marketing related activities. The modern customers care much regarding the ethical behaviour and both the good and bad ethical conduct on the purchase behaviour of customer. Through the focus groups it is clear that although people are more sophisticated as customers today, this does not potentially translate into the behaviour that favours the ethical firms and disregard the unethical ones. This paper shall elaborate on presenting a literature review on two research questions. The first is- Is consumer really looking for ethical sourcing and if no substitute products, will they stop buying? And the second is- do the purchasing behaviours impact how ethical products are being promoted and sourced? It shall present a description of the search process and shall critically analyse the literatures sourced from proquest. A brief summary table for each of the used article shall be provided at the end of this paper. 2. Description of Search Process In order to find out 15 references, I used the proquest by logging into my university account. I have used certain key words to find out the relevant articles to support my findings and conclusions. Those key words are ethical decision in product purchasing, purchase power impact on ethical products, customers purchasing decision about eco-friendly products, ethical sourcing, and ecological conscious customer behaviour. Thereafter, I selected the chosen articles relevant to the topic and cited them as per Chicago referencing style.
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4LITERATURE REVIEW 3. Critical Analysis of the Literature As the modern customers are becoming more aware and more eco-conscious of what their purchases mean to the people and the plant producing them, ethical sourcing has become somewhat a buzz word. According to Olivo Tara (2019), ethical sourcing is obtained from sustainable and responsible methods and they benefit both the businesses and the customers. Bartels and Onwezen (2014), in their study have investigated on how the social representationsandtheidentificationofcustomerswiththefoodconsumers’impacts intention of buying products that make ethical and environmental claims. As per their research, customers who are adherent to the natural technology and food and do not consider food as a necessity are more likely to buy eco-friendly and ethical productsHusser et al. (2014). In this way their study suggests that there is a strong relationship in between the food perceptions as a major source of enjoyment as well as the intentions of buying sustainable products. As per Hainmueller et al. (2015), ethical sourcing is focused on environmental impact, social impact and human rights. It is about ensuring that employees are paid fair wage and are given clean and safe working environment. With the same, it also involves environmentalandsocialaspectsoftheproductionthatconsidersthesurrounding communities. As per the data of Andrea (2016), about 88% of the consumers in USA is prompted to boycott the brands that practise irresponsible business actions and also, 87% of the customers purchase products that have social environmental benefit. Furthermore, Aysu and Sevil Oflac (2017) too in this context have suggested that 87% would buy a product from a firm that advocates for a problem that they care about. Researches by Ann and Font (2017) andLadhari, Riadh and Tchetgna (2017), also suggest that 56% of the American customers would stop purchasing from the brands that they believe to be unethical and among them 35% would stop purchasing from the brands that they consider as unethical even when no
5LITERATURE REVIEW substitute is available. Araque-Padilla et al. (2015) data demonstrates that about two-thirds of the customers globally are wilfully spending more on a product if it comes from any sustainable and ethical brand. As the ethical customers are rising, more number of fashion brands are announcing their efforts for committing towards becoming more sustainable in the long run and engaging into some ethical sourcing practices. The study by Heesook and Kang (2019) investigated that the casual affect relationships among the moral intensity, buying behaviour and the moral philosophy towards the environmentally sustainable apparel and textile products. It revealed that moral intensity had a notable effect on the customer buying behaviour towards the apparel products and sustainable textile that confirmed the sequential relationship among different variables. Harris, Roby and Dibb (2015) too in this context have researched on the impact of awareness of sustainability of clothing. It has undergone a survey that revealed that younger customers are more concerned regarding ethics while shopping as about 58% of customers in between the age range of 16 to 24 years have stated that ethical credentials are significantly important and the remaining 49% have stated the opposite. Sophie et al. (2016) in their study tool have revealed that there is a strong relationship in between the buying behaviours and the perceived customer activities. In parallel to the above mentioned studies, it has been founded that the perceived customer effectiveness has a notable and productive impact on the green product or eco-friendly product purchasing behaviour. In terms of food and beverage products, the ones that are sourced under sustainable and ethical means are highly demanding. Survey conducted by Shiksha, Dhir and Sagar (2019) have revealed that about 52% of the customers are likely to pay more for the such products that are sourced under ethical and sustainable conditions. Also, when it comes to footwear and clothing, about 45% of the customers are likely to pay more such products and 44% are likely to pay more for the ones that are sourced ethically (Lopes et al. 2020).
6LITERATURE REVIEW Similarly, Ladhari, Riadh and Tchetgna (2017) andWunderlich and Gatto (2016)too have claimed that consumer perception is highly important and they do look for ethical sourcing and if no substitute products, will they stop buying. 4. Implication and Conclusion From the above analysis it has been founded that 88% of the consumers in USA is prompted to boycott the brands that practise irresponsible business actions and also, 87% of the customers purchase products that have social environmental benefit. The other research studies also revealed that 56% of the American customers would stop purchasing from the brands that they believe to be unethical and among them 35% would stop purchasing from the brands that they consider as unethical even when no substitute is available. All these signify that that the ethical consumers exist and those they believe ethical credentials as important part. Consumers do look for ethical sourcing and if no substitute products, will they stop buying. With the same, it is also to conclude that purchasing behaviours of the customers impact on how ethical products are being promoted and sourced. 5. Summary table AuthorTitleSourceArgument BartelsandOnwezen (2014) "Consumers’ Willingness to Buy Productswith Environmentaland Ethical Claims: The RolesofSocial Representations and Social Identity." International Journalof Consumer Studies Customers who are adherenttothe naturaltechnology and food and do not consider food as a necessity are more likelytopurchase eco-friendlyand ethical products.
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7LITERATURE REVIEW Olivo (2019)"WithEco- Conscious Consumers Continuingto DemandCleaner, GreenerProducts, WipesMakersare Up to the Task." Journal of Retailing andConsumer Services Ethical sourcing is obtainedfrom sustainableand responsible methodsandthey benefitboththe businessesandthe customers Harris et al. (2016)"Sustainable Clothing: Challenges, Barriersand Interventionsfor EncouragingMore Sustainable Consumer Behaviour." Journal of Retailing andConsumer Services Younger customers are more concerned regardingethics while shopping. Hong,Heesookand Kang (2019) "TheImpactof MoralPhilosophy and Moral Intensity onPurchase BehaviorToward SustainableTextile andApparel Products." International Journalof Sustainable Developmentand Planning Moral intensity had a notable effect on thecustomer buyingbehaviour towards the apparel productsand sustainabletextile thatconfirmedthe sequential relationshipamong different variables Shiksha,Dhirand Sagar (2019) "Understanding Consumer Resistancetothe Consumptionof OrganicFood.A International Journal of Consumer Studies Majorityofthe customers are likely to pay more for the foodandbeverage productsthatare
8LITERATURE REVIEW StudyofEthical Consumption, Purchasing,and Choice Behaviour." sourcedunder ethicaland sustainable means Sophie et al. (2016)"Consumers' Environmentaland Ethical Consciousnessand theuseofthe RelatedFood Products Information:The RoleofPerceived Consumer Effectiveness." Journalof Agriculturaland Environmental Ethics Perceived customer effectiveness has a notableand productiveimpact onthegreen productoreco- friendlyproduct purchasing behaviour Padilla et al. (2015)"Moderatingthe Relationship betweenPriceand Perceived Value of Ethical Products." Journalof Agriculturaland Environmental Ethics About two-thirds of thecustomers globally are willing to spend more on a product if it comes fromany sustainable brand. Ladhari,Riadhand Tchetgna (2017) "Values,Socially Conscious Behaviourand Consumption Emotionsas Predictorsof Canadians’Intent to Buy Fair Trade Products." International Journalof Consumer Studies Consumers do look for ethical sourcing and if no substitute products, will they stop buying. Lopes et al. (2020)"TheRoleof EthicalProblems Journal of Retailing andConsumer About 44% of the customers are likely
9LITERATURE REVIEW Related to a Brand inthePurchasing DecisionProcess: An Analysis of the ModeratingEffect ofComplexityof Purchaseand Mediationof PerceivedSocial Risk." Servicestopaymorefor ethicallysources footwearand clothing products. WUNDERLICHand GATTO (2016) "Consumers’Food Choicesandthe RoleofPerceived Environmental Impact." International Journalof Sustainable Developmentand Planning Attitudesofthe customerstoward genetically modifiedfoods havebeen correlatedwith decreasedbuying behaviour of theirs. Thisindicatesthat the link in between attitudestowards certainfood production methods canpredictactual purchasing. Husser et al. (2014)"Linking Purchasingto EthicalDecision- Making:An Empirical Investigation." Journal of Business Ethics Customerswould buy a product from afirmthat advocatesfor ethicaland environmental concernsthatthey care about.
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10LITERATURE REVIEW Ann and Font (2017)"Ethicsand Influencesin Tourist Perceptions ofClimate Change." CurrentIssuesin Tourism 56%ofthe American customerswould stoppurchasing from the brands that they believeto be unethicaland amongthem35% wouldstop purchasing from the brandsthatthey consideras unethicaleven when no substitute is available AysuandSevilOflaç (2017) "Understanding Young Consumers’ Tendencies regardingEco- Labelled Products." Asia Pacific Journal ofMarketingand Logistics 87%wouldbuya product from a firm that advocates for a problemthatthey care about. Andrea (2016)"Consumers' Purchasing Decisions regarding Environmentally FriendlyProducts: AnEmpirical Analysis of German Consumers." Journal of Retailing andConsumer Services 88%ofthe consumers in USA ispromptedto boycottthebrands thatpractise irresponsible businessactions andalso,87%of thecustomers purchaseproducts thathavesocial environmental benefit
11LITERATURE REVIEW 6. References: Araque-Padilla,RafaelA., Maria Jose Montero-Simo,Pilar Rivera-Torres, andCarlos Aragon-Gutierrez. 2015. "Moderating the Relationship between Price and Perceived Value of Ethical Products."Journal of Agricultural and Environmental Ethics28 (2): 217-230. Bartels, J. and M. C. Onwezen. 2014. "Consumers’ Willingness to Buy Products with EnvironmentalandEthicalClaims:TheRolesofSocialRepresentationsandSocial Identity."International Journal of Consumer Studies38 (1): 82-89. Ghvanidze, Sophie, Natalia Velikova, Tim H. Dodd, and Wilna Oldewage-Theron. 2016. "Consumers' Environmental and Ethical Consciousness and the use of the Related Food Products Information: The Role of Perceived Consumer Effectiveness."Appetite107: 311- 322. Göçer, Aysu and Bengü Sevil Oflaç. 2017. "Understanding Young Consumers’ Tendencies regarding Eco-Labelled Products."Asia Pacific Journal of Marketing and Logistics29 (1): 80-97. Hainmueller, Jens, Michael J. Hiscox, and Sandra Sequeira. 2015. "Consumer Demand for Fair Trade: Evidencefrom a Multistore Field Experiment."Review of Economics and Statistics97(2): 242-256. Harris, Fiona, Helen Roby, and Sally Dibb. 2016. "Sustainable Clothing: Challenges, Barriers and Interventions for Encouraging More Sustainable Consumer Behaviour."International Journal of Consumer Studies40 (3): 309-318
12LITERATURE REVIEW Hindley, Ann and Xavier Font. 2017. "Ethics and Influences in Tourist Perceptions of Climate Change."Current Issues in Tourism20 (16): 1684-1700. Hong, Heesook and Ji Hye Kang. 2019. "The Impact of Moral Philosophy and Moral Intensity on Purchase Behavior Toward Sustainable Textile and Apparel Products."Fashion and Textiles6 (1): 1-22. Husser,Jocelyn,LaurenceGautier,Jean-MarcAndré,andVéroniqueLespinet-Najib. 2014;2013;."LinkingPurchasingtoEthicalDecision-Making:AnEmpirical Investigation."Journal of Business Ethics123 (2): 327-338. Kushwah, Shiksha, Amandeep Dhir, and Mahim Sagar. 2019. "Understanding Consumer ResistancetotheConsumptionofOrganicFood.AStudyofEthicalConsumption, Purchasing, and Choice Behaviour."Food Quality and Preference77: 1-14. Ladhari, Riadh and Nina Michèle Tchetgna. 2017. "Values, Socially Conscious Behaviour andConsumptionEmotionsasPredictorsofCanadians’IntenttoBuyFairTrade Products."International Journal of Consumer Studies41 (6): 696-705. Lopes, Evandro Luiz, Lucas Zimbres Yunes, Bandeira de Lamônica Freire, Otávio, Eliane Herrero, and Luis Hernan Contreras Pinochet. 2020. "The Role of Ethical Problems Related to a Brand in the Purchasing Decision Process: An Analysis of the Moderating Effect of Complexity of Purchase and Mediation of Perceived Social Risk."Journal of Retailing and Consumer Services53: 101970. Moser, Andrea K. 2016. "Consumers' Purchasing Decisions regarding Environmentally Friendly Products: An Empirical Analysis of German Consumers."Journal of Retailing and Consumer Services31: 389-397.
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13LITERATURE REVIEW Olivo, Tara. 2019. "With Eco-Conscious Consumers Continuing to Demand Cleaner, Greener Products, Wipes Makers are Up to the Task."Nonwovens Industry50 (4): 14 WUNDERLICH, S. and K. A. GATTO. 2016. "consumers’ Food Choices and the Role of Perceived Environmental Impact."International Journal of Sustainable Development and Planning11 (6): 989.