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Generation Y consumers?
INTRODUCTION AND OVERVIEW
Stakeholders and the market in general expect firms to respond to ethically charged issues
through their marketing practices and other behaviours, ethically charged issues to which
firms have been called upon to respond include worldwide poverty and the spread of
disease, global warming, natural resource depletion, and the massive accrual of man-made
In the bid to conform to Societal ethical expectations, firms facing the same institutional
differentiation and all players compete for the same scarce resources (Deephouse,1999). Yet
although differentiation can be a vehicle through which firms accrue important resources
and advantages, minimum acceptable level of conformity are required for a firm to remain
legitimate in the eyes of its many stakeholders (Dimaggio and Powell 1983). Based on these
often contradictory objectives, firms strive to strike the ideal balance of differentiation and
Laczinak (1993) has argued that as the field of marketing develops a stronger ethical profile,
academically and professionally, marketers are finding it harder to ignore the „ethics‟ gap
between what society expects and what marketing professionals are delivering. However,
does society expect such behaviour or at least if it does, will it actually reward marketers for
their ethical behaviour by buying their products and boycotting those of unethical firms?
Given that this flurry of ethical concern is driven in some way by the belief that consumers
will be attracted to socially responsible firms, is there existing evidence to support that
belief?
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Marketers are encouraged to behave in an ethical manner because information about a firm‟s
ethical behaviours is thought to influence product sales and consumer‟s image of the
company (Mascarenhas, 1995) hence various companies and brands have moved towards
the ethical branding arena. Ethical spending in the Uk has doubled since 2002 (Co-operative
Bank, 2007) with the result that companies who possess a substantial and growing share of
this market have now become acquisition targets in order to extend the brand portfolio of
large multinationals (Mascarenhas &Carrigan 2008) examples of moves into the ethical
branding arena include the likes of L‟oreal and its take-over of The Body Shop; Unilever‟s
purchase of Ben &Jerry‟s; Horizon Organic holding‟s take-over of Rachel‟s diary; and
However, do companies have clear objectives in mind when developing ethical marketing
policy especially for products directed and targeted at the Generation Y consumers?
Generation Y has tremendous spending power at $600 billion a year, in addition to the
influence the younger members of this group still exert over parental expenditures, they
number 76 million strong (Kennedy, 2001) and comprised 41% of the population in 2009.
Wolburg &Pokrywcznski (2001) describe Generation Y as the best educated and most
culturally diverse generation in history, a combination which others believe has made this
generation exceedingly tolerant and open minded towards different lifestyles such as
homosexuality, single parent households, etc (Morton, 2002; Paul 2001). Additionally
researchers explore Generation y‟s attitudes toward advertising (Beard, 2003) Celebrity
endorsers (Bush et al 2004), Corporate sponsorship (Bennett & Lachowetz, 2004) Ethical
internet-related behaviours (Freestone and Mitchell, 2004). Findings seem to paint a portrait
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of a generation that is media savvy and worldly enough to see through many advertising
tactics.
However, a study by Boulstridge and Carrigan (2000) investigated the response from this
segment of consumers to ethical and unethical marketing behaviour, what emerged was that
most consumers lacked information to distinguish whether a company had or had not
behaved ethically; Nestle and Exxon were known offenders, but there was little awareness
Martin and Turley (2004) observe that little is known about consumption patterns and
individuals.
As consumer attitudes, behaviour and skills are acquired via socialisation agents such as
family peers, school and the mass media (Moschis, 1987), the proliferation of media choices
including television, the internet and magazines has resulted in greater diversity of product
and lifestyle choices of Generation Y and marketing and retailing to this cohort requires a
different approach (Phelps, 1999). As such companies and brands should have clear
are the target, firms should temper expectations with reality (Carrigan & Atalla, 2001).
Consequent with this view, it becomes imperative to conduct a research into which ethical
issues really matter to this segment market, particularly those likely to impact on them.
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OBJECTIVES
perception and attitudes towards ethical strategies carried out by various organisations and
companies, the level of awareness of these strategies as well as their actual behaviour and
Are today‟s consumers fully informed about the ethical behaviour of marketers and does this
Marketing scholars have stated that consumers are better informed, more educated and
awareness is greater for consumer rights and product requirements at least in the western
society (Hirschman, 1980; Barnes & McTavsh, 1983). However, possessing what they term
Do Generation Y consumers reward marketers for their ethical behaviour by buying their
According to research, information about ethical and unethical actions has asymmetrical
influence on attitudes, such that vices detract from attitudes more than virtues enhance them
Is Social responsibility (In the form of ethical purchasing) the most dominant criteria in the
According to Ulrich and Sarasin 1995, consumers do care about ethical policies and its effect
but they care more about price, quality and value than corporate ethics. Hence, what are the
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Is there an attitude-behaviour gap between what Generation Y consumers say they do and
LITERATURE REVIEW
behaviour and behavioural disposition towards ethics, the literature would be presented to be
ETHICAL CONSUMERISM
Strong (1996) defined ethical consumerism as follows; Ethical consumerism refers to buyer
behaviour that reflects a concern with the problems of the third world, where producers are
paid low wages and live in poor conditions simply to produce cheap products for western
produced in the third world by people paid a fair wage, who work in good conditions and
While Doane (2001) defined the act of consuming ethically as the purchase of a product that
concerns a certain ethical issue (human rights, labour conditions, animal well-being,
In the bid to understand and evaluate ethical consumption, Hunt and Vitell (1993) draws on
both the Deontological and Teleological ethical traditions in moral philosophy where
Green (2010) states that deontology is defined by its emphasis on moral issues, most often
articulated in terms of rights and duties. Consequentialism, in contrast, is the view that the
moral value of an action is, in one way or another, a function of its consequences alone.
Consequentialists maintain that moral decision-makers should always aim to produce the
best overall consequences for all concerned, if not directly then indirectly. Both
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consequentialists and deontologists think that consequences are important, but
consequentialists believe that consequences are the only things that ultimately matter, while
deontologists believe that morality both requires and allows us to do things that do not
Ethical consumption campaign policies often rely on Teleological assumptions and appeals,
however Harrison et al (2005) state that ethical consumption is not so much the moral
evaluation, but more a medium for moral and political action. This is the dominant sense in
the case of consumer boycotts, ethical audits, CSR initiatives and fair trade campaigns.
Consistent with Ajzen‟s Theory of planned behaviour (which would be discussed later in the
proposed research), the H-V model posits that ethical judgments affect behaviour through
The emancipation of the ethical segment market began with a group of people identified as
the co-operative consumers; this was the first widespread organised consumer movement
that evolved as a result of working class reaction to excessive prices and poor quality goods,
food in particular. (Harrison et al 2005) the co-operative movement took off in its modern
process.
The second wave of the consumer movement is today by far the highest profile wave of
consumer activism, to such an extent that it is often wrongly regarded as being the entire
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Unlike the co-operative movement, this second wave of consumer organisations has no
pretensions of offering a radically different vision for society. Its adherents see the role as
ameliorative, to make the market-place more efficient and to champion the interests of the
consumer within it. Their aim is to inform and educate the consumer about the features
which will enable them to act effectively as consumers (John, 1994). The value-for-money
model places considerable stress on rights to information and labelling and redress if
The third wave of consumer activism, like the second, emerged in the USA. Its figurehead,
Ralph Nader, became one of the most admired US citizens in national polls for years. Like
the second wave of the consumer movement, Naderism is adamant on the role of
information and that it should be free and fair. If the first wave saw capitalism as something
to be stepped away from (co-ops are non-profit organisations that share out rather than
accumulate or privatise profits), the second wave sees its own role as that providing
information for the consumer to be able to operate more effectively in the market-place. And
the third wave, Naderism, sees capitalism as something to be accepted but which has to be
worked hard on to prevent its excesses becoming norms. Harrison et all (2005)
A new wave of consumer organisations emerged slowly in the 1970s and accelerated in the
1980s, which in 1995 was termed „alternative consumerism‟ Yang& Gabriel (2005)
At the end of the 1980s the most influential was green consumerism. This stemmed from a
new environmental consciousness to consume wisely in a manner that did not damage the
capacity of future generations to consume at all. One effect of pressure from this era was
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that companies started to undertake environmental audits as a way of gaining competitive
The Evolving Caring Customer of the 1990s: Consequent with the stance developed
in the fourth wave stage of consumer activism; „Alternative consumers‟ this segment
of shoppers have been identified by Strong (1996) as one of the features that
contributes to the growth of ethical consumerism. Reason being that the caring,
environmentally and socially aware consumers of the 1990s paved way for the
development of the Fair Trade Label and as such have led to increasingly well-
challenging the manufacturers and retailers to guarantee the ethical claims they make
about their products. This is illustrated by the development of the Fairtrade Label.
number of charities, including Oxfam, Christian Aid and the World Development
certification mark, a product label informing consumers that a product‟s supply chain
Organisation). The Fairtrade standards aim was to ensure both better working
standards establish minimum prices for a range of products and prohibit the use of
Pressure Group Support: Strong (1996) clearly states that this feature does not
necessarily reflect the growth in ethical consumerism but, as green consumers become
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more actively ecologically and ethically aware, it is conjectured that there is a
issues, membership of these pressure groups, the likes of Greenpeace, Friends of the
Earth, and Worldwide Fund for Nature etc. grew remarkable between 1981 and 1992
and as such has been able to increase the public concern and support of these pressure
group organizations.
Media Interest: Strong (1996); ethical issues, such as paying third world producers
and fair credit terms, the provision of minimum health, safety and environmental
standards, social justice and the sustainment of natural resources, have become
retailers revealed that five out of the eight responding organizations claim to consider
issues of ethical consumerism and fair trade when making purchasing decisions.
Increasing Supplier Power: The increasing power of the third world suppliers can be
differentiate its practices from the standard market practice, has encouraged
organizations to develop fair trading practices with third world suppliers, helping to
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Wider Availability of Alternative Products: Getting ecologically-friendly products
into the supermarkets has been a huge challenge for environmentalists, but now the
big retailers are been persuaded to stock people-friendly, fairly traded products
(Vaughan, 1993) Retailers like Sainsbury‟s, Tesco and Safe way have paved way for
demand for fairly traded products reveals that consumers perceive the alternate
retailers to guarantee the ethical claims they are making about their products, by
refusing to purchase products with unsubstantiated fair trade claims. Therefore, the
Adopted from Strong 1996, “Features contributing to the growth of ethical consumerism-a preliminary
investigation”
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GENERATION Y CONSUMERS
have unique characteristics that are different from preceding generations. This belief in
youth and searching for insights into their psyche. According to historians Hollander and
Germain (1992), marketers as early as in the 1920s recognized the value of the “youth
market” (Gilles, 1992), and they regarded the college market as one of the most coveted of
all segments (Burns, 1926; Dumont, 1929; George, 1920). According to one source, the
reasons are many: (1) their sheer size makes college students an important market. (2)
Students are often put in the role of trendsetters to the thousands of visitors who attend
events on college campuses. (3) College students acquire preferences for goods and
establish brand loyalties that continue long after the college years. (4) Students are expected
to attain a high standard of living after graduation. (5) College students set examples to
attain to the remainder of the population by being more receptive to new products (e.g.,
students tend to be early adopters). (6) Students influence parental choices for major
The spending power of college students is greater than in the past, and the newest youth
market is significantly larger than the previous. Figures depend upon how the groups are
divided, but one analyst estimates that Generation Y is three times the size of Generation X
(Cheng, 1999). By the year 2015 the campus population is expected to rise from the current
This is the first generation to come along that‟s big enough to hurt a boomer brand simply
by giving it the cold shoulder and big enough to launch rival brands with enough heft to
threaten the status quo. As the leading edge of this huge new group elbows its way into the
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marketplace, its members are making it clear that companies hoping to win their hearts and
wallets will have to learn to think like they do, and not like the boomers who preceded them.
Soon a lot of other companies are going to have learnt the nuances of Generation Y
marketing, Neuborne& Kerwin (1999). In just a few years, today‟s teens will be out of
college and shopping for their first cars, their first homes, and their first mutual funds. The
distinctive buying habits they display today will likely follow them as they enter the high
spending years of young adulthood. Companies unable to click with Gen Y will lose out on
a vest new market and could find the doors open to new competitors. “Think of them as the
quiet little group about to change everything,” says Edward Winter of the U30 Group, a
Marketers who do not bother to learn the interests and obsessions of Gen Y are apt to run up
against a brick wall of distrust and cynicism Morton (2002). Years of intense marketing
efforts aimed directly their way have taught this group to assume the worst about companies
trying to coax them into buying something. Ads meant to look youthful and fun may come
off as merely opportunistic to a Gen Y consumer. Hence, marketers who want to reach
worldly wise Gen Yers need to craft products and pitches that are more realistic.
To gain initial insights into the key determinants of intention to purchase fair trade grocery
products Shaw et al. (2000) used the well-known and extensively applied behavioural model
called the theory of planned behaviour (Ajzen, 1985). The theory of planned behaviour is a
that links attitudes, subjective norms, perceived behavioural control, behavioural intentions
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The theory of planned behaviour states that each of the measures of attitude, subjective
norms and perceived behavioural control are deemed to have underlying beliefs. Attitudes
Figure 2
Although the theory of planned behaviour has been applied in a variety of behavioural
domains, the context of ethical concerns in consumer decisions making has been neglected.
The theory of planned behaviour in its current form does not consider ethical or social issues
Hence, researchers like Fila & Smith (2006), Armitage &Conner have included to the model
of theory of planned behaviour, „barriers and Self-efficacy‟ as separate constructs that could
Research has also suggested that the theory of planned behaviour be modified to incorporate
a measure of self-identity (Sparks and Shepherd, 1992; Sparks and Guthrie, 1998; and
Granberg and Holmberg, 1990). The rationale for this argument is that as an issue becomes
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Hence Shaw et al. (2000) proposed a modified theory of planned behaviour with the notion
that ethical consumers make ethical consumption choices because ethical issues have
become an important part of their self-identity and as such self-identity was found to be
significant in the explanation of intention to purchase a fair trade product. This was
supported by earlier research which found that ethical consumers do not only identify with
one ethical issue but with a range of ethical issues, Sparks and Shepherd (1992).
Figure 3
Shaw et al (2000)
The pertinence of the additional model measures of ethical obligation and self-identity in a
modified theory of planned behaviour highlight, that while many consumers acting in a self-
motivated manner may select coffee for example, on the basis of factors such as price and
taste, those concerned with ethical about ethical issues may be guided by a sense of ethical
The proposed exploratory study would be studying the attitudes and behavioural
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METHODOLOGY
Carrigan & Atalla, 2001: Although there is doubt cast over the value of consumer research
“One thing is clear, don’t do any research. Don’t ask the public any questions on this
subject. The answers are never reliable. In instances where the head says one thing and the
heart another, studies are useless if not misleading (Ulrich and Sarasin, 1995)”
The proposed exploratory study been a qualitative work of research would be carried out
using the semi structured interview, this gives room for the interviewer to conduct on the
basis of a loose structure, open ended questions that define the area to be explored, at least
initially, and from which the interviewer or interviewee may diverge in order to purse an
Qualitative research interview becomes adequate because while carrying out the exploratory
study, the aim is to discover the interviewee‟s own framework of meanings and the research
task is to avoid imposing the researcher‟s structures and assumptions as far as possible.
Nicky Britten in his paper “Qualitative interviews in medical research” stated that
quantitative research, identifying with examples that qualitative research can also open up
get adequate response during qualitative interviewing the interviewer would draw up
questions that are open ended, neutral, sensitive and clear to the interviewee.
The questions would be based on the following according to Patton (1987); behaviour or
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THE SAMPLE
The sample of the exploratory study would be generation y consumers (18-25 years) male
and female, university educated students from the United Kingdom, as it appears that the
market for ethical goods and services is experiencing a quick growth in recent years in the
UK Feng ( 2005)
Due to financial constraints in the provision for social environments and resources that
would enable the interview process comfortable for the interviewees; a sample size of 20
would be employed.
project their underlying motivations, beliefs, attitudes or feelings regarding the issues of
Whilst researchers Carrigan & Attalla (2001), Freestone & Mitchell (2004) employ focus
group as the sampling technique in discovering consumer‟s perception on ethical issues, the
interviewer chooses one-one interviewing with respondents as it gives room for honesty,
question. And also to avoid any discomfort amongst peers that may arise when discussing a
EXPECTED IMPLICATIONS
According to Foddy (1993) the following best illustrate the inadequacy of many of the
questions that have been used in social research in the past and serves as the researcher‟s
The relationship between what respondent say they do and what they actually do is not
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Respondent‟s attitudes, beliefs, opinions, habits, interests often seem to be extraordinarily
unstable
Small changes in wording sometimes produce major changes in the distribution of responses
Respondent‟s answers are sometimes affected by the question format per se. (Open ended
questions often produce quite different results from closed ended versions of the same
questions)
sustainability?
What are the factors most strongly to influence your buying decision?
purchase decision?
The next time you go grocery shopping, how likely are you to purchase a fair trade
product?
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REFERENCES
Ajzen, I. (1985) “From intentions to actions: A theory of planned behaviour” in J. Kuhl and J.
Bainbridge, J. (1999), “Keeping up with Generation Y”, Marketing, 18 February, pp. 37-38
Boulstridge, E. and Carrigan, M. (2000), “Do Consumers really care about corporate
Carrigan, M. and Atalla, A. (2001). “The myth of ethical consumer-do ethics matter in
560-577.
147- 166.
DePelsmacker, P., Driesen, L., Rayp, G.: (2005) “Do consumers care about ethics?
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Doane, Deborah. : (2001) “Taking flight: The Rapid Growth of Ethical Consumerism.
DiMaggio, P.J. and W.W. Powell: 1983, „The Iron Cage Revised: Institutional
Foddy (1994) “Constructing Questions for interviews and questionnaires: Theory and
Harrison, R., Newholm, T. and Shaw, D.: 2005 “The ethical Consumer”
Hirschman, E.C. (1980), “Innovations, novelty seeking and consumer creativity”, Journal of
Hunt, S.D and Vitell, S.J “The general of marketing ethics: A revision and three
Laczniak, G.R. (1993), “Marketing ethics: onward toward greater expectations”, Journal of
Laczniak, G.R. and Murphy, P.E. (1993), Ethical Marketing Decisions: The HigerRoad,
Martin, K.D, and J.L, Johnson: 2008, „A Framework for Ethical Conformity in
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Newborne, N. and Kerwin, K. (1999), “Generatin Y”, Business week, 15 Februaury,
pp. 80-8.
Skowronski, J.J. and Carlston, D.E. (1987), “Social judgment and Social memory: the role of
M.V. Copeland: 2007. „Go Green. Get Rich‟, Business 2.0 8 (1). 68-77.
Titus, P.A. and Bradford, J.L. (1996), “Reflections on consumer sophistication and its impact
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Ulrich, P. and Sarasin, C. (1995), Facing Public Interest: The ethical challenge to Business
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