Download Socially Desirable Fast Moving Consumer Goods

UPPSALA UNIVERSITET
Department of Business Studies
Business Administration D-level
Master Thesis 15 credits, Spring 2011
2011-06-03
Socially Desirable Fast Moving Consumer Goods
A Literature Review on How To Decrease the Gap
Between Intention & Purchase Behavior Through Marketing
Authors:
Mikael Forsberg
Sara-Maria Löfvenberg
Tutor:
Susanne Åberg
Abstract
Authors:
Tutor:
Title:
Mikael Forsberg and Sara-Maria Löfvenberg
Susanne Åberg
Socially Desirable Fast Moving Consumer Goods – A Literature Review on How To
Decrease the Gap Between Intention & Purchase Behavior Through Marketing
Keywords
Branding, Consumer Behavior, Consumer Value Creation, Decision-making, Differentiation, Eco,
Ecological, Environmentally Conscious Behavior, Fast Moving Consumer Goods (FMCG), Green
Consumer, Green Marketing, In-store marketing, Marketing, Organic, Purchase decision, Socially
Desirable, Value Creation.
Background and Problem
Consumers today are more environmentally conscious than ever. However, it has been found that there
is a gap between the consumer’s intention and actual purchase when it comes to products that there is a
social pressure to buy for environmental reasons. The potential for the socially desirable segment is
estimated to have potential, but growth seems to be slow. It has been stated that until now, there is not
enough research done that take a holistic perspective including several fields of marketing. There is a
need to review and combine existing literature in various fields of marketing to investigate how the gap
can be decreased and sales increased.
Purpose
The purpose of this thesis is to review and combine existing literature in the fields of consumer value
creation, decision-making and in-store marketing. By doing so the authors of this thesis aim to present a
theoretical model on how producers of socially desirable FMCG can decrease the gap between the
consumers’ intention and actual purchase through marketing. Decreasing the gap refers to more fully
exploit the potential size of the segment and generate more sales.
Method
A completely theoretical method was chosen for this thesis. To the authors’ knowledge there has not been
done enough specific research to match the purpose of this thesis. A literature review has therefore been
conducted within three separate fields of marketing to get a broader understanding of how the gap between
intention and actual purchase can be decreased. Based on the extensive literature review, the authors
developed ten propositions that formed a model that can be used as the backbone for future theoretical and
empirical research.
Final Discussion
Some highlights of the theoretical discussions earlier in this thesis are presented in the final discussion. The
authors suggest that purchase decisions of socially desirable FMCG initially are high-involvement
decisions that often are formed outside the in-store-setting. This suggests that more long-term marketing
efforts such as brand building in some cases can be more important than in-store marketing when it comes
to FMCG that are socially desirable. Symbolic values should be highlighted in branding of socially
desirable FMCG because the instrumental differences between FMCG and socially desirable FMCG is
limited. It is therefore likely that it is more efficient to focus on consumers’ self-identity to convince them
to purchase socially desirable FMCG. It is also important that producers of socially desirable FMCG
provide consumers with clear product information in-store and that the products are easy to find. Based on
the extensive literature review, the authors have developed eight propositions that form the model presented
in this chapter.
2 Definitions
To reduce the risk for misunderstanding of what the authors intend to describe, a short list of definitions of
important terms may be followed below.
Fast Moving Consumer Goods (FMCG)
In this thesis, the term FMCG refers to retail goods that are consumed relatively quickly, many of them
within a short time period of just a few days. Examples include non-durable goods such as soft drinks,
toiletries, and grocery items such as meat, fruits or diary products. FMCGs are products that are
characterized as being sold quickly and that have a short shelf life, either as a result of high consumer
demand or because the product deteriorates rapidly. Generally, the profit per item is relatively small but
since they sell in large quantities the cumulative profit can be large. In this thesis it is important to
understand the term since the marketing implications might differ from more durable goods.
Socially Desirable FMCGs
Products that are characterized by a social pressure to purchase for environmental reasons are referred to as
“socially desirable FMCG”. The authors do not consider whether the production procedures are favorable
for the environment or not. Instead, it is the consumers’ perceptions of which products that are friendly to
the environment that counts. The expression “socially desirable” is taken from Öhman (2010). An issue for
the reader is that existing literature which deals with the topic are using different expressions. In some
literature, terms such as “organic” or environmental” are used. In this literature review, these terms will not
be replaced by “socially desirable” when referring to an article that are using other terms. Only when the
authors present their view, the term “socially desirable” will be used. However, the authors define the
expressions “organic”, “environmental”, or any other similar words, as “socially desirable”.
The “Green” Consumer
The “green” consumer refers to the environmentally conscious consumer who is buying, willing to or says
she will be buying socially desirable FMCG. This definition is used to determine what kind of benefits
consumers seek when considering buying socially desirable FMCG.
3 TABLE OF CONTENT
1. .INTRODUCTION
1.1 Background
1.1.1
1.1.2
1.1.3
The Gap between the Intention of Being Environmentally Friendly
and Actual Behavior
Socially Desirable Products and the Market for Those –
High Potential, Slow Growth
What is the Problem?
1.2 Purpose
1.3 Delimitations
2. .METHOD
2.1 Choice of Method
2.2 Collection of Relevant Research Articles
2.3 Limitations and Criticism of Sources
2.4 Outline of the Study
3. .LITERATURE REVIEW
3.1 Creating Value For the ”Green” Consumer
3.1.1 Who is the “Green” consumer and what Benefits is She Seeking?
3.1.2 Branding and Differentiation Creates Value for the Consumer
3.1.3 Consumer Confusion over New Market Entrants
3.1.4 Discussion: Creating Value for the ”Green” Consumer
3.1.4.1 Propositions
3.2 Decision-making – Behavioral Aspects
3.2.1 Different perspectives when Studying Decision-Making
3.2.2 The Purchase Decision – Planned or Unplanned
3.2.3 High-Low Involvement in Decision-Making
3.2.4 Where the Decision-Making Takes Place
3.2.5 Discussion: Decision-Making
3.2.5.1 Propositions
3.3 In-store Marketing
3.3.1
3.3.2
Harsh Competition Calls for Improved In-Store Execution
Factors that Affect the Consumer’s Choice of Socially
Desirable FMCG In-Store
3.3.3 Increased Sales through Aisle Placement
3.3.4 Discussion: In-Store Marketing
3.3.4.1 Propositions
4. .FINAL DISCUSSION
4.1 Approaching a Model
4.2 Further Research Suggestions
.REFERENCES
.APPENDIX
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4 11. INTRODUCTION
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In this section, the reader will be introduced to the topic of this thesis and the gap between the
intention of being environmentally friendly and actual behavior, socially desirable acts and the
high potential but slow growth on the market of socially desirable products. Furthermore, the
problem formulation and the purpose of this thesis will be presented.
1.1 Background
1.1.1 The Gap between the Intention of Being Environmentally Friendly and Actual Behavior
A Google search for “climate changes” generates 134 million hits, which is somewhat less than a
search for “Barack Obama” but much more than “terrorism” and “Madonna”. The concern about
the environment has become a fundamental economic and political issue across the world during
the last couple of decades (Peattie, 1992). More and more firms are working on different methods
on to reduce their environmental impact. Some do it because they truly believe it is the right thing
to do or because there are costs to save, while others do it because their customers demand it
(Unga Aktiesparare). In the latter group many firms have developed a range of products that are
appealing to consumers who think it is important to reduce their own share of negative
environmental influence. A very high share, 91%, of the Swedish population is aware of the
climate changes, and about half the population feel guilty when they are acting in a way which
they believe will have a negative impact on the environment (Naturvårdsverket, 2008). At the
same time, the consumption of goods and services that are known to be less environmentally
friendly has not declined - it has increased. For example, gas-guzzling cars and airplanes are used
like never before and the meat consumption per capita has increased (DN:a, 2010-12-15; SvD,
2010-11-30; DN:b, 2010-06-30).
Why is there a difference between intention and actual behavior? In SvD, (2010-11-30)
researchers and psychologists discuss why it is so hard for the human being to change its behavior
in relation to the environmental issues. Rees (2002-2003) also discusses whether humans really
have the ability to plan long-term. The legend says that the population of Easter Island cut down
the very last tree on the island, even though they knew that the trees were necessary for their
survival. The trees were fuel for fire and wood for building boats so they could fish. When the last
tree had fallen, it was just a matter of time until the whole population was extinct. Rees (2002-
5 2003) argues that there are limitations for expansion and growth, and that all populations keep
expanding until they destroy a critical resource for its own survival. Through evolution, our brains
have been developed to react on the most pressing physical threats (SvD, 2010-11-30). However,
the climate threat is different. No warning signals will be activated in the brain as long as the
threat does not immediately affect our local environment or us directly. The cost for acting in an
environmentally friendly way today may be perceived as a sacrifice and a cost, while the yield not
only is more diffuse, but also far ahead in the future. The human brain is rewarded when we
perceive pleasure – a behavior that often is strongly related to not being environmentally friendly.
In the choice between having a walk to the office or going by car, the latter often seems like a
better and more pleasant solution (Ibid; Öhman, 2010).
Öhman (2010) argues that there is a clear difference between intention and actual purchase. He
also states that trying to measure intention in consumer surveys often is an unreliable variable.
There are three main reasons for why consumer intentions tend to be misleading regarding
environmental consciousness. Firstly, the social pressure is strong; most people would like to see
themselves and be seen by others as environmentally conscious. Secondly, no one controls if you
actually follow your intentions and perform the action; in this case that you actually purchase
environmentally friendly products. Thirdly, the cost of the behavior is often underestimated while
the value is overestimated. This often occurs when the purchase takes place in the future, so-called
time shift, while the intention is measured before the purchase takes place (Ibid).
1.1.2 Socially Desirable Products and the Market for Those – High Potential, Slow Growth
Öhman (2010) also discusses that under normal circumstances it is hard to predict future consumer
shopping behavior and purchases. It is even harder when adding other aspects, such as trying to
predict socially desirable acts, which as already mentioned is overestimated when looking at the
intention. Socially desirable acts in this case refer to purchases of products for which there are a
social or external pressure to buy for environmental reasons. In this thesis, the focus will be on
Fast Moving Consumer Goods (FMCG) which fall under this definition. That is, the products that
will be discussed from now on are by the authors considered as products where there is a social or
external pressure to buy them. These products are most likely organically labeled in various ways,
or they might be labeled in a way that indicates climate or environmentally friendly production
procedures. The definition also applies to locally produced goods. The definition above is
6 important, since the authors of this thesis by no means intend to determine which production
procedures are the most favorable for the environment. The consumers’ perception and definition
of which products that are friendly to the external environment is what counts.
“It was initially thought that consumers would alter their attitudes in favor of purchases of
‘organic’ instead of ‘conventional’ food products. Nonetheless, consumer response has been very
slow resulting in ‘sub-optimal’ market performance” (de Vlieger et al., 1993; Urban et al.'s, 1986
in Chryssochoidis, 2000 p. 707). More recent news suggest that things may have changed since
these articles were written; Sweden’s largest grocery chain ICA, holding about 50 percent of the
market, increased its sales of organic products by 50 percent during 2008 compared to 2007 and
doubled its organic product range Although the total sales have increased, the organic products
still only represent 2,2 percent of the total grocery products sold in Sweden in 2004 (Statistics
Sweden, 2004). This is in line with ICA’s sales figures, where organic products generated SEK 2
billion in sales (Dagens handel, 2011-02-07) The total sales for ICA represented close to SEK 93
billion, which gives a share for organics of about 2,1 percent of total sales in 2010 (ICA AB Yearend Report, 2010). There is somewhat of a paradox here; the interest and the awareness for the
environment is growing and the socially conscious segment is predicted to increase, but growth
seems to be slow. It is also concluded that there is a discrepancy between how consumers say that
they act and how they actually act when it comes to making environmentally conscious purchase
decisions (Öhman, 2010). Hughner et al. (2007) states that organic products are one of the largest
growth markets within the food industry.
1.1.3 What is the Problem?
There is potential to develop the socially desirable segment but the gap between intention and
actual purchase provides a possible issue for producers of FMCG which are socially desirable
purchases. It will therefore not only be hard to predict production volumes, but it also means that
they reach a smaller group of consumers than the potential total size of the segment. Therefore,
there is a need to study this area more closely and to integrate existing marketing theories with
more specific studies on consumer behavior regarding FMCG which are socially desirable
purchases. Hughner et al. (2007) state that future research is needed to understand the complex
organic customer behavior in order to further improve sales in the segment. Öhman (2010)
concludes that the gap between intent and purchase is especially large in a retailing context. It is
7 questionable if the consumer makes any extensive purchase decisions regarding FMCG before
entering the retail outlet (Inman & Winter, 1998; Klabjan & Pei, 2011). Therefore, the producers
of FMCG which are socially desirable purchases are most likely to have an opportunity to
influence the consumer at the point of purchase to increase its sales. Because of this, the focus in
this thesis will be on in-store marketing, although more general marketing and branding theories
will be presented together with consumer behavior theories on decision-making. Until now, many
researchers and authors have conducted research in for this thesis relevant, although separate,
fields of marketing; customer value, decision-making and in-store marketing. Since each area of
marketing alone will not help us find an answer of how the gap can be decreased the authors
intend to present a literature review of the above-mentioned fields that could be used as the
backbone of future empirical research.
1.2 Purpose
The purpose of this thesis is to review and combine existing literature in the fields of consumer
value creation, decision-making and in-store marketing. By doing so the authors of this thesis aim
to present a model on how producers of socially desirable FMCG can decrease the gap between
the consumers’ intention and actual purchase through marketing. The term “decreasing the gap”
refers to more fully exploit the potential size of the segment and generate more sales.
1.3 Delimitations
It will not be possible within the scope of this thesis to cover all fields of marketing. As mentioned
in the introduction and in the purpose, the channel of focus will be on in-store marketing in a
retailing context. There are several aspects of marketing which are not covered, i.e. marketing
communications and advertising through other channels such as TV, online or magazines. Since
the idea of this thesis is to create a model built on existing theories the reader needs to consider
that the model can by no means be considered as complete, both for the reason mentioned above
and because the model is not based on empirical research carried out by the authors of this thesis.
8 12. METHOD…dd
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In this section, the authors will present how this paper has been compiled. At the outset, the
reader will be guided though the choice of method, followed by how the collection of relevant
articles were conducted. Thereafter, the design of this study will be described.
2.1 Choice of Method
The authors of this thesis aim to review and combine existing literature in the fields of consumer
value creation, decision-making and in-store marketing. This refers to taking a more holistic
perspective on how producers of FMCG which are socially desirable can increase sales and
exploit more fully the segment through different fields of marketing. To be able to fulfill the
purpose of this study, the different sub-fields of marketing presented above need to be reviewed
and compiled together as one entity. According to the authors of this thesis, it is vital to review
marketing fundamentals, differentiation and how value can be added to a product. Knowledge
about the decision-making process from a consumer point-of-view is also important in order to
understand how consumers think when they make a purchase decision. Moreover, knowledge
based on the retailer side is also important to consider, such as how price decisions, aisle settings
or display placements affect in-store sales. Separately, each of these areas can create a piece of a
puzzle, but to make the puzzle more complete, that is fulfillment of the purpose of this thesis,
there is a need to combine these pieces of the puzzle.
According to Cooper (1998), the literature review as a method can be pursued in various ways. It
can be used for different purposes i.e. to criticize previous studies or to connect different theories
from different fields of research. The reason for choosing a completely theoretical approach in this
thesis is that there is, to the authors’ knowledge, no combined compilation of the different
research areas described above. Therefore it is necessary to first put together the existing relevant
studies in those fields before it would be possible to execute empirical research to test the
propositions of this thesis. This is in accordance with Cooper (1998) who argues that a literature
review is a study in itself and that it can be used as a starting point for separate empirical research.
The authors of this thesis aim to present a model in the end of this review that could facilitate
empirical research on this topic. This could be a valuable contribution and a way to test if the
compiled conclusions and the model of this thesis can be validated. Within the time limit of this
9 thesis, conducting both a literature review, presenting a model and then test it empirically would
not be possible. The intention is therefore to present a model that can provide a structure for how
the gap between intention and purchase for FMCG goods which are socially desirable purchases
can be decreased according to a combination of existing theories.
2.2 Collection of Relevant Research Articles
An extensive literature review took place and the collection of relevant articles was conducted.
The starting point for this literature review was Considering Intentions by Öhman (2010), and
from this dissertation the authors have researched relevant references and theories on a step-bystep basis. If a reference in Öhman (2010) was considered interesting, it was reviewed. Then, in
turn, if references in that article were proven to be relevant, they were also reviewed. Some
articles that were considered to be relevant for this purpose were chosen out of the authors’
previous records obtained through various course work at university.
A third step in the pursuit of finding relevant articles was performed through an electronic search
in the reference database Business Source Premier. According to Cooper (1998), a comprehensive
literature search should use secondary channels, especially reference and research registers as the
backbone. These sources cast a very wide net and are close to keep approximately all research.
Therefore, using Business Source Premier is a legitimate action. However, it is also suggested that
only focusing on published articles is not advisable. Also using informal sources is recommended,
although it should only be a small share of the total articles reviewed, both because informal
sources tend to be more recent and because those can be a complement to the more established
sources (Cooper, 1998). Informal sources that were used in this thesis was Öhman (2010) (a
doctoral thesis) and Holt (2003) (case material), which both were found through previous
knowledge of the authors of this thesis. Keywords that were used, either individually or combined
in the article search: Decision-making, Organic, In-store marketing, FMCG, Differentiation, Eco,
Ecological, Purchase decision, Green Marketing, Branding and Consumer Behavior. Furthermore,
relevant articles were also found through cited references in articles generated through the search
on Business Source Premier.
The articles were then scanned through reading the abstract. If they seemed relevant for the
purpose, they were stored for later reading. The criteria for being relevant was that the article
10 related to what the authors of this thesis defined as being socially desirable FMCG in combination
with covering either customer value, decision-making or in-store marketing. However, in some
instances this search of multiple keywords did not generate enough articles that combined these
issues, which made the authors widen the search and allow theories covering only customer value,
decision-making or in-store marketing to be reviewed. More refined theories on socially desirable
FMCG used in combination with more conventional marketing theories also helped the authors
define the possible difference that exist between marketing conventional and socially desirable
FMCG. This also strengthened the authors’ hypothesis that this field has not been covered in a
holistic perspective to the extent that is necessary to put together a combined model built on
existing theories. Cooper (1998) determined that identifying a gap in existing research is an
important aspect of doing a literature review because it helps suggest future research. Another
relevance criteria for this thesis dealt with finding a mix of theories that both contradict each other
and that support each other’s arguments. Since it was not possible to cover every article the
authors’ decision to choose or not to choose certain articles added a subjective element to this
thesis that cannot be eliminated. All reviewed articles have been compiled in Table 1, which can
be found in the Appendix. Here, the authors have described each article reviewed, how it was
found, a brief description of the content and the main conclusion. The reader is also provided with
information about articles that were read but which were determined to be irrelevant for this
thesis. The table was designed to give the reader an overview over articles covered, but also to
demonstrate that the review was thoroughly done.
2.3 Limitations and Criticism of Sources
First of all the term mentioned in the introduction, FMCG that are socially desirable purchases,
provided an opportunity for the authors of this thesis to really investigate a behavior that is
probably no different if the product is locally produced or labeled organically with labels such as
KRAV or the EU-symbol (KRAV; European Commission on Organic Farming). On the other
hand, there is confusion about what kind of labeling means what, and in the scientific articles
researched for in the purpose of this thesis, different terms occur, such as “green”, “organic” or
“environmentally friendly”. It would be preferable if there were consistent labeling in this area
since it constitutes a problem for the consumers as well as it is a limitation for this thesis to some
extent. The consumer issue of it will be further discussed in the theoretical part of this thesis.
11 Finding relevant articles for FMCG goods which are socially desirable purchases specifically has
arisen as an issue. In some cases, theories covering other types of products than organic FMCG
are reviewed. When the content still has been judged as relevant for the purpose of this thesis,
those articles have been included but presented under a critical eye. Some articles that cover
organic products and the development of a market for them can be viewed as old in the context of
this thesis. The 90’s are considered to be the booming decade for green marketing, but it can still
be that attitudes and trends have changed since. Some articles are even older and therefore the
authors have been careful not to draw conclusions solely out of those articles which can be viewed
as outdated. This reasoning is not valid for articles and studies considering branding and
marketing in general, as older articles in those fields in many instances are well established.
Another limitation is that all relevant theories cannot possibly be reviewed or covered within the
scope of this thesis. This also concerns the fields of marketing chosen for this thesis. For example,
all aspects of marketing communication and media options to advertise such as TV, ads and so on
are not covered. This affects the result, and the model cannot be considered as a mirror image of
the full picture or reality for that matter. Since no empirical research has been conducted in this
thesis, the conclusions are based completely on theoretical approaches. What affected the final
results of this thesis were both the time frame (when the articles that have been reviewed in this
thesis were written) and the personal touch of the authors’ experiences and beliefs. The field of
green marketing is likely to continue to develop as well as the consumer behavior of today.
Therefore a similar review done in a few years from now would probably have a different content
and different result than this thesis.
The authors have not chosen a specific geographic region for this literature review, but have tried
to show awareness concerning regional differences in those cases where difficulties have occurred.
However, the authors make a calculated assumption that the consumer segment relevant for the
studied products has a higher price point in general. Therefore it is likely that the tendencies and
patterns that this study is based on are more transferrable within western countries with strong
buying power than in poor countries where consumers are likely to be more price conscious. For
example, in the introduction statistics about Sweden and the grocery chain ICA is presented. ICA
is considered to be representative to draw conclusions from Sweden as sample, as the chain holds
over 50 percent of the market and has retail outlets with different price concepts. The authors
12 consider Sweden as fairly representative for western countries. In this thesis, a basic assumption is
that the producing firms of FMCG that are socially desirable are competitive and strive to
maximize profit, which mean that they should have an interest in increasing the sales of this
segment. We are aware that this may not be valid for all firms.
2.4 Outline of the Study
There are three chapters of theory. The first chapter covers established marketing theories
describing how marketing can add value to the consumer by promoting differentiation, branding
and segmentation. The second chapter contains theories about intentions and purchase behavior in
the retail setting which provide a theoretical introduction to decision-making. To emphasize and
question if the type of differentiation that FMCG that are socially desirable purchases offer the
consumer really can be classified and treated as a more conventional unique selling point, both
more conventional marketing theories and those that specifically concern socially desirable
FMCG. The third chapter will cover the field of in-store marketing. This chapter provides
necessary knowledge of actual in-store execution. This kind of structure is in line with what Hart
(1998) suggests, thus there are several sections dealing with different concerns. This is to
demonstrate that the main concepts and theories examined in the literature review are covered in
this thesis (ibid). A discussion will follow after each chapter. Important propositions that conclude
the discussion will be presented at the end of every chapter. Together, the propositions of the
chapters form the framework for how to apply this knowledge in a model. The model is then
suggested to be used in future empirical research.
13 13. LITERATURE REVIEW
.
In this section, a literature review based on three different research areas will be presented. The
first chapter will focus on how to add value through marketing while the other two will focus on
decision-making and in-store marketing. Each chapter will be followed by a discussion and
propositions. Based on this, a model will be presented.
3.1 Creating Value for the “Green” Consumer
FMCG which are socially desirable purchases are linked to theories of differentiation and value
adding through marketing. What is it with these products that make consumers buy them? What
kind of benefits are the consumers seeking? In this part, theories covering marketing
fundamentals, differentiation and value added through marketing will be covered.
3.1.1 Who is the “Green” Consumer and what Benefits is She Seeking?
Hartmann and Apaolaza Ibáñez (2006) mean that individuals who are expressing high
environmental consciousness or concern in response to direct questions will not necessarily
transform this into an environmentally responsible behavior. In a Portuguese study, the sampled
consumers were aware of the existence of environmental problems, even though their concerns
were not always translated into environmentally friendly behavior (Finisterra do Paço et al., 2009).
In Öhman (2010), the author discusses how intentions to purchase eco-friendly products often
differ from regular products. The intention to purchase ecological products could be grouped into
the same category as other intentions such as quitting smoking or spending more time at the gym –
so called ”good intentions”. Öhman (2010) states that it has a desirable end-state even though the
process of getting there could be described as undesirable. The undesirable in this case refers to
the trouble, often in the form of a higher price, that consumers have to go through to reach the
desired state.
Hartmann and Apaolaza Ibáñez (2006) acknowledge that one of the major issues in green
marketing is to find a way to emphasize which individual benefits the consumer can obtain when
choosing the green(er) option. Hartmann and Apaolaza Ibáñez (2006) suggest that these benefits
can be emphasized by adding more and stronger emotional values to green brands. Belz and Dyllik
(1996) say that the consumer in most cases will see the improvement or the result of their
14 environmentally friendly choices only when a majority of the population is taking the same
actions. People often act out of a short-term personal goal. This might harm the collective in a
long-term perspective. Sometimes this situation is called “the tragedy of the commons”, and has
today become an accepted concept since the ecologist Garrett Hardin (1968) coined the
expression. This concept expresses how the motivation for the individual to pay a higher price for
green products decreases, as the reward or benefit of paying the higher price will happen in the
future or not at all. This has been said to resemble the ”behavioral dilemma faced by prisoner’s,
who may behave irresponsibly not as much on account of perceived benefits of good conduct, but
because they note that fellow prisoners do not behave properly either” (Hartmann & Apaolaza
Ibáñez, 2006, p. 676).
Finisterra do Paço et al. (2009), note that different segments of consumers look upon green
products in very different ways. They also conclude that there are some consumers who are
prepared to base their purchase decisions on the benefit of the product not harming the
environment. The result of their study also showed that there is a segment of green consumers that
is very different from other segments in some aspects. The consumers in the study which buy
green products do so for very specific reasons, are between 25 and 34 years old or 45 and 54 years
old and have the highest education level in the sample, work in intellectual, scientific or artistic
middle and senior management and are specialists earning higher incomes. The individuals in this
segment are positive towards all environmental aspects and have an environmentally friendly
buying behavior (Finisterra do Paço et al., 2009). According to their study, this segment consists
of 35 percent of the sample. Hughner et al. (2007) concluded that parents of young children are
more likely to purchase organic grocery products. In general, young people tend to have a positive
attitude to organic food but older people are the most likely purchasers (Hughner et al, 2007). Other research has found that the probability to purchase organic products is higher among the
college educated (Chandon et al., 2009), high income, older families and high-level occupation
groups (Jolly, 1991; Ngobo, 2011). Magnusson et al. (2001) found that between 46 percent and 67
percent (depending on food category) of the consumers have positive attitudes towards organic
food. Women had a more positive attitude than men. In spite of this, only between four and ten
percent had intentions to actually buy organic food. The probability to purchase organic products
is lowest among larger families (Ngobo, 2011).
15 In contrast to the authors above, Straughan and Roberts (1999) suggest that demographic factors
are not a good way to solely segment the consumers in respect of green behavior. This is because
demographics lack the explanatory power of the psychographic variables. They argue that the
typical profile given for green consumers; young, mid- to high-income, educated and urban
women is the result of an easy, but not very effective segmentation. The result of their study
shows that psychographics need to be included to make an accurate discrimination between
varying degrees of ecologically conscious consumers. An important conclusion of their study is
that the consumer needs to be convinced that his or her pro-environmental actions will be effective
in fighting environmental challenges. Therefore, marketing activities should focus on explaining
to the consumer what kind of beneficial environmental outcomes that is linked to making this
effort and buying this green product.
What kind of benefits is the consumer seeking when purchasing green products? This is important
to understand to be able to market this type of product successfully. According to Hall (2008),
consumers are likely to purchase organic food for numerous reasons, among others: the perceived
effect of organics on the environment, taste, sustainability, status, lifestyle, animal welfare, worker
safety, nutritional content, or reduced exposure to pesticides. The main reason for purchasing
organic food is health, but taste and environmental concerns are also important for consumers
(Hughner et al, 2007). Hall (2008) argues that this combines the findings of Katz (1960), Grubb
and Grathwohl (1967) and Lievens and Highhouse (2003) that are related to the brand image.
Those findings linked instrumental attributes to the need to maximize benefits and minimize cost
(Katz, 1960). Instrumental characteristics correspond to product-related attributes which describe
the product in terms of objective, physical, and tangible attributes (Hall, 2008). Symbolic
characteristics are described as the opposite; non-product related attributes which describe the
product in terms of subjective and intangible attributes (Hall, 2008). Symbolic attributes are linked
to self-identity, self-image, and self-expression (Grubb & Grathwohl, 1967; Lievens & Highhouse,
2003). Lievens and Highhouse (2003) determine that consumers buy products not only for the
instrumental attributes but also for their symbolic meanings. When the instrumental attributes
between brands are limited, the importance of the symbolic attributes increases. Similarly,
differentiation on symbolic brand personality is often easier and more effective than
differentiation on instrumental dimensions (Plummer, 2000).
16 3.1.2 Branding and Differentiation Creates Value for the Consumer
Branding is a way of creating value for the consumer. Imagining the value of the brand as the
difference between what a consumer will pay for a branded product and a physically identical
product without the brand culture (Holt, 2002). Measuring perceived value can be difficult.
(Kotler et al., 2005 p. 684-685). In value-based pricing, the firm sets its price according to
customer perceptions of the value of the product. It is important that the firm finds out what value
a customer assigns to different benefits and offers (ibid). The difference in value between the
branded and the generic product is explained by various aspects, two of them being experiential
value and symbolic value (Holt, 2002). The former refers to firms seeking to highlight benefits
delivered by the product, which then guides the consumer when choosing products. The latter
refers to brands acting as symbols that express values.
Holt (2002) argues that marketing strategies begin with the value proposition. That is, the various
types and amounts of value that the firm wants consumers to receive from the market offering.
The value proposition can also be referred to as the positioning statement. Sometimes it is
assumed that if a firm builds a better product, the consumers will also experience it as an
improved product. However, marketing emphasizes that customer value is perceptual and not
objective. Branding provides an opportunity for the firm to shape the customer’s perceptions;
thereby it also creates a window to influence the perceived value of the product.
Consumer goods of today are powerful markers to express identity, status, lifestyle and political
view (Holt, 2002). Holt (2002) also encourages thinking about the brand as the culture of the
product. Thus, a product acquires brand meaning and culture over time, as these meanings will be
accepted as truths about the product. Furthermore, this suggests that a newly introduced product is
devoid of meaning and therefore lacks a brand culture. This is also what makes branding a
powerful tool – the culture, stories and associations that are linked to the brand become
conventional, everyday truths that are continuously reinforced. This knowledge also explains why
brands are durable.
According to Levitt (1980) there is no such thing as a commodity. Differentiation is most readily
apparent in branded packaged consumer goods; in the design, operating character, or composition
of industrial goods; or in the features or “service” intensity of intangible products. In short, the
offered product is differentiated, although the generic product is identical to other products. When
17 the generic product is undifferentiated, the offered product makes the difference in attracting
consumers and the delivered product in keeping them. However, differentiation is not limited to
giving consumers what they expect. What the consumers expect can be augmented by things the
customer didn’t think about herself before noticing the benefit when using the product.
"Consumers attract value to a product in proportion to its perceived ability to help solve their
problems or meet their needs. All else is derivative" (Levitt, 1980 p. 3). “The ‘product’ is what the
product does; it is the total package of benefits the customer receives when he buys" (Corey, 1975
p. 122).
However, not all consumers under all circumstances can be attracted by an ever-expanding bundle
of differentiating value satisfaction. Some consumers may prefer lower prices to product
augmentation. Chryssochoidis (2000) discusses what differentiates organic food from
conventional food. The author argues that organic food may be a type of product possessing the
characteristics of a high differentiation. Sashi and Stern (1995) mean that organically produced
products can be regarded as differentiated products since the production method provides the
products with characteristics that are different from conventional counterparts.
Furthermore, Holt (2002) argues that it is a common mistake to consider the brand as the “frosting
on the cake”. In other words, the brand delivers value beyond the actual product. It would be more
correct to refer to the brand as a frame through which the consumers value and experience the
product. This way the brand enhances the consumer’s experience of the product and emphasizes
existing value of the product, however this is always subjective. All together, branding can create
a competitive advantage. An argument for this is that as consumers we seek to minimize and
simplify our thinking that comes with making good choices. If we determine that a brand culture
works for us, we are reluctant to seek out new alternatives (ibid).
3.1.3 Consumer Confusion over New Market Entrants
For a new product category, where consumers have little product experience, relationship and
quality is of high importance (Holt, 2002). Consumers usually reduce their cognitive demands of
processing new information by relying on previous learning (Fiske & Taylor, 1984). According to
Carpenter and Nakamoto (1989; 1994) consumers are confused about which unique characteristics
many late introduced differentiated products possess. This depends largely on human limitations
related to how consumers are able to process information regarding products that enter the market
18 later than their competitors. Chryssochoidis (2000) means that organic food is an example of a late
introduction compared to the established conventional food. The result of his study suggests that
”consumers' limited prior knowledge about possible differentiation between conventional and
organic food may have made them insensitive to differences and unwilling to learn about these
differences altogether” (Chryssochoidis, 2000 p. 707). Carpenter and Nakamoto (1994) mean that
organic products possess characteristics different from conventional food and that this makes
consumers compare newly introduced products to existing brands. According to Dens and De
Pelsmacker (2010) newly introduced brands are less positively evaluated than brand extensions.
Therefore, a viable strategic option when introducing new products to the markets is to do it in the
form of a brand extension (Dens & De Pelsmacker, 2010).
Because of the uncertainty and limited prior knowledge that some consumers experience regarding
the differentiation between conventional and organic products, consumers become indifferent to
these possible differences (Chryssochoidis, 2000). Consumers may in fact use conventional food
as the baseline for comparison with organic food (Carpenter & Nakamoto, 1989; 1994). For a new
category, where consumers have little product experience, relationship and quality is of high
importance (Holt, 2002). The findings of Chryssochoidis (2000) support these arguments. It is
likely that the respondents of the latter study were victims of self-invoked confusion regarding
organic food. Peattie (1990) states that consumers think of organic food as something desirable,
but due to various reasons, such as the products being new to the market and a heterogeneous and
indistinct labeling, very few of them truly understand what the term ‘organic’ means. 3.1.4 Discussion: Creating Value for the “Green” Consumer
With the difference between intention and the actual purchasing behavior being the starting point,
and with several authors noting that an environmentally conscious behavior (Hartmann &
Apaolaza Ibáñez, 2006; Finisterra do Paço et al., 2009; Öhman, 2010) is not the same as putting
this to action, you can question what it is that consumers who actually are buying socially
responsible FMCG products are seeking? Hartmann and Apaolaza Ibáñez (2006), Belz and Dyllik
(1996) and Hardin (1968) highlight something very important and that is when the individual
consumer considers purchasing a green product, the main added value in a product like that is that
it doesn’t harm the environment to the same extent as a conventional product. But for the purchase
to truly help the environment to any considerable extent, it demands that a majority of consumers
19 make the same types of decisions. If there are no other benefits attached to the products, benefits
that the consumer perceives as superior over the conventional one, it is very likely that the
consumer cannot comprehend what value he or she is paying for, as the benefit of being
environmentally friendly does not add any value to the individual herself. Compare for example
with paying a premium price for a high safety car. Here the buyer will receive higher safety –
something that benefits the consumer on an individual level. As Hartmann and Apaolaza Ibáñez
(2006) mentioned, it is therefore a major issue in marketing to determine what kind of benefits and
values consumers attach to these green products. But there are obviously some consumers who
still think that being altrustic give them enough value; “donating” the value they pay for to a
greater good, as Finisterra do Paço et al. (2009) discuss. If the consumer is defined as someone
who is information and knowledge seeking, consumer education and marketing for a specific
product coupled with Corporate Social Responsibility actions could be measures to increase sales
of socially desirable FMCG. For example, for every product sold we (the firm) plant a new tree in
the rain forest. This would send a clear message to the consumer regarding what kind of
environmental improvement the consumer is contributing to.
Obviously, consumers buy socially desirable FMCG today. It is important to determine who these
consumers are, especially when the objective is to decrease the gap between intention and
purchase, as this is likely to lead to higher sales. Therefore, if we know who the present consumer
is, we also can define who the present consumer is not. Is it for example possible to target other
segments through emphasizing or adding other benefits that add value to the individual consumer?
Except considering additional segments to target, the management of the existing target segment
(that already includes the most environmentally conscious consumers) could also be improved.
The target segment should also be carefully analyzed, using both demographics and
psychographics. If the findings of Finisterra do Paço et al. (2009), are transferrable to the rest of
the western world’s population, this means that 35 percent of the population are presumptive
consumers for organic products. At this moment this presumptive segment is not fully exploited
because it has further market potential, also in relation to the numbers presented in the
introduction of this thesis. Another important topic for management of firms producing socially
desirable FMCG should be to consider which specific reasons there are to purchase socially
desirable products – and there are several reasons (i.e. Hall, 2008). That lifestyle, emotional
20 fulfillment and societal status can be drivers behind intentions to purchase socially desirable
FMCG, was explained in the introduction (Öhman, 2010) and later in the theory chapter above
(Hall, 2008). Therefore it is very likely that consumers are attracted by the opportunity of
confirming to themselves that they are “good” and moral persons that take responsibility. It may
be even more likely that purchasing these kinds of products gives the consumer a feeling of
improving its image towards other people, as buying these products is considered socially
desirable by most people. In that sense, Katz (1960) is correct when referring to maximizing
benefits and minimizing costs. For the consumers that primarily purchase for image reasons, this
could very well be true. They pay a premium for the benefit of maintaining or building an image.
This is in line with what Grubb and Grathwohl (1967) and Lievens and Highhouse (2003)
conclude: Consumers purchase products not only for instrumental reasons but also for symbolic,
emotional reasons. Since there are few tangible differences between socially desirable products
and conventional products (what truly differs is the production method, not taste or another
“sensory” experience), emphasizing the more symbolic attributes could be a solution in line with
Lievens and Highhouse (2003) and Plummer (2000). Considering other aspects which have been
presented in the chapter above, such as the consumer’s need to be convinced that buying the
products will lead to environmental improvements, or at least not environmental degradation
(Straughan & Roberts 1999), this definitely should have marketing implications. Raising
awareness within the management of the firms producing socially desirable FMCG for these
issues is necessary, and should help the firm in creating a viable marketing strategy.
When discussing how the producing firm can create value and thereby attract consumers, it is
unavoidable to get into the subject of brands and differentiation. As Holt (2002) states, the brand’s
value is defined as the difference in price between what the consumer would pay for an unbranded
product and the branded version. In this case, finding out what the consumers are willing to pay
for an intangible benefit such as perceiving oneself as being moral is important. It is likely that it
is difficult for a firm producing socially desirable FMCG to determine how much the consumers
are willing to pay since consumers tend to underestimate what they need to pay for a product like
this and overestimating the value they assign to the product. Therefore, it is likely that those
consumers would say that they are willing to pay a higher price than what they actually are. To
circumvent this problem, again adding value through marketing could make the consumer more
willing to pay a premium price. Creating a powerful brand culture (Holt, 2002) should for example
21 increase the amount the consumer is willing to pay, without a tangible benefit being added to the
product. Branding is also a way of answering to the symbolic sought benefits such as lifestyle and
status markers. In a successful brand culture, these types of benefits are naturally developed; it
might even be that a “fan club” among consumers is created for the brand. Incorporating the
benefits that the consumers are seeking into this marketing strategy should be a successful recipe.
This should also be included in the value proposition. As mentioned by Holt (2002) it is the
consumers’ subjective taste that determines whether a product is improved or not. Actual adding
more nutritional content or better flavor does not necessarily mean that the consumers will think
about the product as improved. Therefore strongly communicating the improvement after careful
research of demanded benefits is recommended.
What truly separates conventional products from their organic counterparts is the production
method (Chryssochoidis, 2000). This should be considered the most basic p-o-d (point of
differentiation) of socially desirable purchases. It could also be more to it as the production
method can bring more emotional values. Augmenting the product above the expectation of the
consumer through branding and emphasizing other benefits could attract more consumers. The
extra value that the consumer seeks; beyond contributing to the “the common good” can in some
instances be a wish to augment one’s personal brand image, consciously or unconsciously.
Solving this problem for the consumer who feels guilty, will be like delivering a psychological
“guilt-free” service, buy me and you are a good person. If a firm producing FMCG that are
socially desirable can manage to create and deliver benefits through marketing that are beyond
what the consumer expects and through this create a differentiated brand, it is also likely that the
firm will have sustainable success as brands are durable, and socially desirable brands are likely to
be even more sustainable.
Some of the theories researched (Fiske & Taylor, 1984; Carpenter & Nakamoto, 1989;1994;
Chryssochidis, 2000) discuss if socially desirable FMCG can be considered new to the market. If
they can, this is likely to have an influence on why there is an ambiguity and confusion regarding
different labeling practices. Are socially desirable products really new to the markets? Considering
that they still represent a very small share of all products sold and that conventional products have
been on the market for longer, yes, they could be treated as a late entrant. According to the
previously mentioned authors, consumers might find these organic products hard to define and
22 have a limited capacity and willingness to compare these products with conventional ones. This is
definitely an issue that needs to be dealt with, from the producing firm’s perspective. A suggestion
would be to focus on consumer education and to work with industry organizations to create a more
clear-cut labeling system. Another solution would be to look into what Dens and De Pelsmacker
(2010) discuss, and that is to use existing conventional brands and make socially desirable brand
or product extensions, that can deliver the values of the conventional brand which will easier be
for the consumer to process. For a firm producing socially desirable FMCG, this could be done
through liaising with more established firms. Nonetheless, this should be done with care so that
the authenticity of the values delivered of the socially desirable differentiation is not threatened.
3.1.4.1 Propositions
P1: Increased use of psychographics when defining target segments of socially desirable FMCG
will lead to increased sales.
P2: Emphasizing symbolic values in branding of FMCG which are socially desirable will increase
sales.
P3: Firms producing socially desirable FMCG that stress individual consumer benefits through
marketing will increase sales.
3.2 Decision-Making – Behavioral Aspects
To be able to increase sales of socially desirable fast moving consumer goods, it is crucial to
understand how consumers think. In this part, theories about consumers’ decision-making process
from a behavioral perspective will be examined.
3.2.1 Different Perspectives when Studying Decision-Making
Extensive research has been conducted within the field of decision-making in order to better
understand consumer choice processing (e.g., Kollat & Willett, 1967; Olshavsky & Granbois,
1979; Hoyer, 1984; d'Astous et al, 1989; Ji & Wood, 2007; Shao et al, 2008; Irwin & Naylor,
2009; Nordfelt, 2009). Decision-making can be studied from two perspectives; either by studying
inner motivational factors or by studying outer/environmental motivational factors. An example of
the first mentioned perspective could be to observe how customer characteristics or other
underlying drivers are affecting decision-making (Essoussi & Zahaf, 2008; Inman et al, 2009).
The latter perspective could be studied through measuring factors such as how much time the
23 consumer spent considering buying each brand in the choice process, number of packages picked
up (Hoyer, 1984; d'Astous et al, 1989) or in-store displays (Inman et al, 2009). In order to
understand decision-making it is important to consider a range of various aspects, such as
attention, memory, cognitive representation, conflict, learning and feedback (Einhorn & Hogart,
1981). A potential problem when studying decision-making is that underlying assumptions may
affect the outcome of the research (Einhorn & Hogart, 1981). There is an individual cost-benefit
analysis inherent in human decision-making. The consumer will behave in an environmentally
friendly way if that behavior generates a sufficient benefit with regards to the higher price point
that green products is likely to have (Hartmann & Apaolaza Ibáñez, 2006).
3.2.2 The Purchase Decision – Planned or Unplanned
A purchase decision can be either planned or have more of an impulse character. According to
Stern (1962), in particular nine factors are influencing impulse buying: marginal need of product,
mass distribution, mass advertising, self-service, short product life, low price, a good store display,
small size or light weight. However, the author concludes that impulse buying in essence is
irrational. Therefore, impulse buying is impossible to influence (ibid). Research conducted later
points in the opposite direction (Olshavsky & Granbois, 1979; Inman et al, 2009; Nordfelt, 2009).
Inman et al (2009) found that in-store displays can have a high impact on unplanned purchases,
especially for products that are purchased relatively often. Also, the likelihood of unplanned
purchases increase with time spent in store, when stores accept check and credit cards but also
when the consumers are familiar with the store (Inman et al, 2009). Heilman et al (2002) found
that shoppers who received “surprise-coupons” (for example peel-off coupons) increased their
level of unplanned purchasing. Consumers who planned to buy a product often purchased an
increased quantity if it was a couponed item (Heilman et al, 2002).
According to the Stilley et al (2010), every customer has an in-store slack in their mental budget
for making unplanned purchases. Stilley et al (2010) found that savings on planned items created a
windfall effect that resulted in purchases of unplanned products increasing to a greater effect than
the savings of the planned products. In general, the effect of in-store savings depends on if they
appear before or after the customer's slack is depleted. If savings appear before the slack is
depleted, it results in stockpiling shopping by high-income consumers. If savings occur after the
slack is depleted, it will result in increased purchase of unplanned products (Stilley et al, 2010).
24 3.2.3 High-Low Involvement in Decision-Making
According to Mittal (1989), the degree of involvement in the purchase decision depends on the
consumer’s interest and concern for the product. Mostly, consumers are interested in what they
buy and want to make a good choice. However, the consumers might have either high or low
involvement in the purchase, depending on the context (Mittal, 1989). Typically, inexpensive
products are characterized by low involvement even though it might differ depending on if the
product for example is intended to be a gift (Michaelidou and Dibb, 2008). In that case, it might be
a high-involvement product, regardless of the price. In Mittal’s (1989) definition of involvement,
four aspects are considered: 1) How much the consumer cares about the brand or type of the
product to buy; 2) The perceived difference between the types and brands of the product; 3) How
important it is to choose “the right” product and 4) How concerned the consumer is with the
outcome of the choice (Mittal, 1989). Generally, FMCG are seen as low involvement products
(Knox & Walker, 2001; Ozretic-Dozen, 2007). This is in line with a study by Hoyer (1984) who
found that consumers which are purchasing FMCG are making an extremely quick decision.
Approximately 70 percent of the consumers in his observation study did not examine more than
one package. The pre-purchasing evaluation was more or less non-existent. Consumers mostly did
not compare brands, nor did they examine the shelf-tag (Hoyer, 1984). However, if product
performance was important for the consumer, brand-loyalty increased. Normative users tended to
pay more attention to packaging information than price.
3.2.4 Where the Decision-Making Takes Place
A study by Hoyer (1984) found that consumers are making many of their decisions outside the instore situation. d'Astous et al. (1989) performed a follow up-study on Hoyer (1984) but it was
conducted on products that were common but less frequently purchased. The authors concluded
that in-store decision-making is more difficult when the product is more important and purchased
less frequently. Affect, performance and normative reasons were more important and price less
important than in Hoyer’s study (d’Astous et al, 1989). There is no consistent decision process
across all choice contexts. However, the results from Hoyer’s study (1984) conflicts with other
studies. According to Inman et al. (2009), 45 percent of all purchasing decisions are made in-store.
Two other studies found that approximately 60 percent of the purchasing decisions by consumers
are made in the grocery store (Inman & Winter, 1998; Klabjan & Pei, 2011). A fourth study found
that the in-store decision share could be as high as 70 percent (Aldata Solutions, 2007). Olshavsky
25 and Granbois (1979) found that consumers sometimes not make a decision neither in-store nor
outside the store. Instead, their conclusion was that a decision process many times never exists,
not even on the first purchase, since consumers may rely totally on the recommendation from a
sales person. However, they also state that it might be an oversimplification to say that a prepurchasing evaluation occurs or does not occur. It might also be a “hybrid”-decision; for example
a combination of limited amount of research and a recommendation from a sales person.
3.2.5 Discussion: Decision-Making
According to Hartmann and Apaolaza Ibáñez (2006), consumers will behave in an
environmentally friendly way if the benefit outperforms the cost. The question is, how is it
possible to influence consumers to perceive that this is the case? From the consumer
perspective, the benefit is easily measured in money but it is more difficult for the consumer to
measure the positive effect on the environment. Most of us have intentions to be
environmentally friendly but the process of getting there can be seen as un-desirable. As
Öhman (2010) states, social pressure is an important factor for buying socially desirable
FMCG. Marketers should use this knowledge in various ways; for example creating online
communities or clubs for consumers shopping a certain amount of their socially desirable
products. Translating what social pressure means to the consumer; the consumer wants social
recognition and attention for shopping in a socially desirable way. That would give the
consumer the benefit and the affirmation of doing the “right thing”. One way that the firm can
deal with this is to concretize this benefit to the consumer by giving away marketing materials
that clearly state that “the owner of this bag is a responsible consumer”. This would function
both like a “treat” and an affirmation for the consumers that shop a certain amount of the
firm’s socially desirable FMCG. Moreover, the product design of the package should clearly
display that this is a socially desirable FMCG. This can also be done through labeling. This
would make it easier to show other people that the consumer cares about the environment.
Previous research has found that shoppers which receive in-store coupons are more likely to
increase their level of unplanned purchasing. Other research has shown that promotion campaigns
do not work well for socially desirable FMCG since consumers expect these types of products to
be more expensive. Therefore it is questionable if in-store surprise coupons for socially desirable
FMCG would lead to an increased level of sales of these products.
26 Theories about high and low involvement in purchase situations show that FMCG could be related
to the latter type of low involvement (Knox & Walker, 2001; Ozretic-Dozen, 2007). Purchase
decisions of FMCG are typically performed quickly and in-store. (Hoyer, 1984). Existing research
studies found that between 45 percent and 70 percent of all purchase decision of FMCG are made
in-store. However, it is questionable if socially desirable FMCG follow traditional FMCG
characteristics as low-involvement products. Is the purchase of a socially desirable item really a
low-involvement decision that the consumer makes quickly or is it a decision taken outside the
store setting that is based on long-term ideology and beliefs? Maybe the purchase of FMCG that
are socially desirable initially could be seen as a high-involvement decision. However, gradually it
moves from high-involvement toward becoming a low-involvement decision when it becomes
more of a habit for the consumer to purchase socially desirable FMCG. If the purchase of FMCG
that are socially desirable initially are more of a high-involvement product, it is likely that the
consumer has planned the purchase to a higher extent than for traditional FMCG. Maybe the
consumer hasn’t decided exactly which socially desirable FMCG to purchase but there is a higher
chance that she has decided that the purchase should be socially desirable. If the decision is made
outside the store, then the greatest chance of influencing the consumer is also outside the store. A
high involvement consumer might have it in her “culture” to always or to a high extent buy
socially desirable purchases, non-depending on price and in-store display. It could be part of this
consumer’s beliefs and ideology. This suggests that more long-term marketing efforts such as
brand building in some cases can be more important than in-store marketing when it comes to
FMCG that are socially desirable.
Olshavsky and Granbois (1979) found that consumers sometimes make a “hybrid”- decision
where a part of the purchase decision is based on a recommendation from a sales person.
Therefore, the authors of this paper argue that if the in-store staff is better educated in the
production processes of FMCG that are socially desirable, sales of these products will increase.
The reasoning behind this is that if the socially desirable companies come to the stores to arrange
educational clinics, the in-store staff will increase their understanding of the production processes.
Through an increased understanding, the staff to a higher extent will work as spokes persons for
FMCG that are socially desirable and spread the word to their consumers. In turn, this will drive
sales of socially desirable FMCG.
27 3.2.5.1 Propositions
P4: The consumer initially makes a high-involvement decision when purchasing FMCG that are
socially desirable.
P5: Purchase-decisions of socially desirable FMCG are made outside the store to a higher extent
than more conventional FMCG.
P6: When in-store staff is educated on socially desirable FMCG, sales of these products will
increase.
3.3 In-Store Marketing
In this section, existing theories of the opportunities and challenges for in-store marketing will be
covered. In-store marketing can be an important tool of a marketing strategy to improve sales.
3.3.1 Harsh Competition Calls for Improved In-Store Execution
The increased competition between grocery stores have forced them to focus more on in-store
merchandising and promotion strategies to keep improving their sales. (Kumar et al., 2006). For
example, they need to pay attention to price decision, aisle settings and display placements (ibid).
Since shoppers around the world spend millions of minutes in stores each year, the in-store
exposures may be seen as a great advertising opportunity for storeowners (Sorensen, 2009). The
advertiser's main task is to accelerate sales in the shopper space, without increasing the efforts
from the shopper. In this case, the effort can be seen as how much time it takes for the shopper to
finish a purchase (Sorensen, 2009).
3.3.2 Factors that Affect the Consumer’s Choice of Socially Desirable FMCG In-Store
Ngobo (2011) researched what the drivers are behind households choosing organic products in
grocery stores. Organic products are also credence products (Nelson, 1970) and mostly it is hard
for consumers to evaluate those. The purchase of organic products can therefore be seen as a risky
decision. Under uncertainty, consumers often rely on different information signals (ibid), such as
price (Dodds et al., 1991) and brand name (Erdem & Swait, 1998). In the study of Magnusson et
al. (2001), a very high share of the respondents claimed that it was tricky to know whether many
of the products in-store was organically produced or not, which is also a sign of uncertainty. For
uncertainty reasons, consumers negatively perceive products that have been distributed over long
distances (Ngobo, 2011). Therefore organic store brands are often more popular than national
28 brands (ibid). A reason for that is when large firms start to offer organic product lines, there is a
risk that many consumers start to doubt the authenticity of the organic label (Hughner et al., 2007).
For regular non-organic products, the situation is the opposite; here national brands often steal
market shares from lower-priced store brands (e.g., Blattberg & Wisniewski 1989; Sethuraman et
al., 1999).
A study conducted in California concluded that a major purchase constraint was the price level
(Jolly, 1991). This is in line with the findings of Magnusson et al. (2001). On the other hand,
consumers perceive price as a quality indicator for the organic product. Blattberg and Wisniewski
(1989) studied how price changes affected brand competition for low- and high-tier brands. They
found that low-tier brand mostly do not affect upper-tier brands, mainly because consumers
perceive a quality difference that is enough to preserve a difference between the low- and uppertier segments. However, price changes for upper-tier brands will affect brands that are in the same
price range but it might also affect lower-tier brands. Therefore, the competitive effects might be
asymmetric; one brand might a strong competitor for a second brand but the second brand will not
affect the first brand (ibid). Chandon et al. (2009) found that the price of the product did not have
any impact on the attention but more expensive brands tend to be recalled and considered to a
higher extent than low-price brands. When advertising levels are high, consumers more often use
performance related tactics than price related tactics. Instead, price tactics were increasingly used
when the consumer perceived the brands as more similar (Hoyer, 1986).
According to Jolly (1991), the time it takes to search for organic products in-store is a reason for
not buying organic. Better product information would also be desirable (Zanoli & Naspetti, 2002).
Chandon et al. (2009) found that attention the consumer pays in-store is often limited. However,
when consumers do pay more attention it will often also increase consideration and choice for new
brands.
3.3.3 Increased Sales through Aisle Placement
The most commonly used purchasing strategy by consumers is to take the shortest route from one
aisle, when finished the last required category purchase there, to the next aisle she must visit
(Klabjan & Pei, 2011). To increase the number of impulse purchases, frequently purchased
products should be placed tactically so consumers have to pass as many aisles and product
categories as possible (Inman et al, 2009). Two factors that affect shopping are; 1) how easy it is
29 to find the products in the store and 2) which product is the best choice (Sorensen, 2009). To
respond to these two factors, interactive digital in-store media such as hand-held shopping
assistants is one way to increase shopping efficiency and total sales (Sorensen, 2009; Klabjan &
Pei, 2011). This kind of technology will increase impulse buying since shoppers are routed to
certain locations in the store, based on their previous purchases (Klabjan & Pei, 2011). This
guidance will help the in-store consumer quickly find suitable products. When it is possible to
track shopping carts, an advantage for the consumer will be that no duplicate coupons will be
issued to the same consumer (Klabjan & Pei, 2011).
The aisle management strategy is important when considering improvements of cross-category
product sales and retails can benefit a lot from effective aisle management decisions (Bezawada et
al., 2009). Improvements of cross-category aisle management could for example be to place softdrinks closely to potato chips since the placement of “related products” often will drive sales for
both product categories. According to Bezawada et al. (2009), aisle placement can affect sales just
as much as more traditional marketing-mix variables such as price, product feature or display.
Therefore, both retailers and manufacturers should consider aisle placement as a way to increase
in-store sales. Manufacturers should coordinate marketing programs and cooperate with retailers
to improve cross-category sales. As a result, sales will accelerate and this is the main purpose of
in-store advertising (Sorensen, 2009).
3.3.4 Discussion: In-Store Marketing
Most of the authors of the literature reviewed in the section for in-store marketing seems to agree
that consumers look upon organic products with uncertainty and that they lack information and
guidance. According to the study by Magnusson et al. (2001), consumers claimed that it many
times was hard to know whether products were organically produced or not. According to
Hughner et al. (2007), many consumers doubt the authenticity of national organic labels, since
they expect that these products have been distributed over long distances. It is even more
important for these companies to inform consumers of why their products are organic. Jolly,
(1991) suggests that the time it takes to search for organic products is a limitation that prevents
them for purchasing organic products To reduce this kind of confusion, it is crucial that the
product information of socially desirable FMCG is very apparent in-store. Consumers need clearly
visible information of why they should purchase socially desirable FMCG instead of traditional
30 FMCG. This is especially important to attract consumers that are not consumers of socially
desirable FMCG today. Digital handheld shopping assistants could be a way of guiding the
consumer to the spots in-store where socially desirable FMCG are placed. The aisle placement
will also affect how easy it is for consumers to find products in the store (Sorensen, 2009).
Therefore, the producers of socially desirable FMCG should try to persuade storeowners to
arrange the store interior in a way that makes it easy for their consumers to find the socially
desirable FMCG that they are looking for. This is probably not easy since the storeowner is likely
to have other objectives than increasing sales of socially desirable FMCG in particular.
Some authors i.e. Jolly (1991) found that a major constraint to purchase organic products is that
the price is perceived as too high. Other research indicates the opposite; consumers expect that
socially desirable FMCG cost more than traditional FMCG and that they also see the price as a
quality indicator (Dodds et al., 1999; Ngobo, 2011). Consumers also tend to better recall products
that have a higher price (Chandon et al., 2009). Therefore it might be a mistake to sell socially
desirable FMCG at a discount. In general, consumers simply expect these kinds of products to be
more expensive. There will always be more price-conscious consumer segment in the retail market
but one of the tasks marketers of socially desirable FMCG stand in for is to define the right
segments to target, and the price-conscious segment is probably not one of those. Price cuts might
not even be possible anyway due to the likely more expensive production procedures of socially
desirable FMCG. Price tactics are more commonly used when consumers perceive brands as more
similar (Hoyer, 1986). However, it is doubtful if price tactics should be used for socially desirable
FMCG since consumers probably perceive them as different from traditional FMCG already.
Therefore, the authors expect that price tactics might be used between different socially desirable
FMCG’s, but not between socially desirable and non-socially desirable FMCG’s.
Bezawada et al. (2009) determined that the placement of “related products”, products which are
likely to be consumed on the same occasion, should be placed closely to each other to increase
sales. This should have implications on how socially desirable FMCG are placed on the aisles. As
mentioned previously in this section, according to previous research consumers are confused over
what socially desirable FMCG really are and where you find them in-store. This could be dealt
with in two different way; either all socially desirable products (non-depending on usage situation)
are placed in the same section of the store, almost like another store in-store only that only
31 contains socially desirable FMCG. In this way, it will be well defined where to find these
products. On the other hand, this is not likely to attract new consumers, as entering a complete
new section of the store is likely to be easy for the existing segment, but new consumers are likely
to be less exposed to socially desirable FMCG than if these products where placed to their
conventional siblings (i.e. socially desirable oatmeal next to conventionally produced oatmeal).
According to Sorensen (2009) the consumer shop more if it is easy to find the way in-store.
As Klabjan and Pei (2011) state, hand-held digital shopping assistants could be a good way for
stores to increase sales. The handheld computers could be used to identify which consumers that
already purchase socially desirable FMCG when these products are scanned. Based on this
information, the shopping assistants then can suggest more options of socially desirable products
that could be suitable for each individual consumer. The advantage of this would be that it
probably is easier to sell more socially desirable products to someone that already have purchased
some, than to someone that has not purchase any socially desirable FMCG at all. However, handheld digital shopping assistants can only work as a good guidance – it is still crucial that the instore interior, for example in form of signs, is clearly visible.
3.3.4.1 Proposition
P7: Price tactics might be used between different socially desirable FMCG but not between
socially desirable and non-socially desirable FMCG.
P8: Clear in-store information about FMCG which are socially desirable will help drive sales of
these products.
32 14. FINAL DISCUSSION
……
In this section, the three different chapters of theory will be linked together and the model of the
eight propositions will be presented. The strengths and weaknesses of the model will be discussed.
This is followed by further research suggestions.
4.1 Approaching a Model
With this thesis the authors aim to present a model on what existing literature say about how
producers of FMCG which are socially desirable can decrease the gap between consumers’
intention and actual purchase through marketing. To fulfill the purpose, the authors have reviewed
and combined existing literature within the fields of consumer value adding, in-store marketing
and decision-making. Some highlights of the theoretical discussions earlier in this thesis is
presented below.
The authors discussed if socially desirable FMCG follow traditional FMCG characteristics as lowinvolvement products. The authors suggest that purchase decisions of socially desirable FMCG
initially are high-involvement decisions that often are formed outside the in-store-setting. This
suggests that more long-term marketing efforts such as brand building in some cases can be more
important than in-store marketing when it comes to FMCG that are socially desirable. However,
socially desirable FMCG might gradually change into becoming low-involvement when
consumers have formed a habit to purchase these types of products. The authors also discussed
that symbolic values should be highlighted in branding of socially desirable FMCG. The reason is
that since the instrumental differences between FMCG and socially desirable FMCG is limited, it
will be more efficient to focus on consumers’ self-identity, self-image and self-expression to
convince them of why they should purchase socially desirable FMCG. Further on, in-store
information about socially desirable FMCG is proposed to be important. Not only is it important
that producers provide consumers with clear product information about the socially desirable
FMCG. It is also crucial that consumers are guided to these products in-store, either through a
clear in-store interior or hand-held digital shopping assistants. In the chapter covering theories on
in-store marketing, no univocal conclusions could be drawn from existing literature on how the
placement of socially desirable FMCG should be done. Therefore the authors of this thesis decided
to not present a proposition for this topic.
33 Based on the extensive literature review, the authors have developed eight propositions that form
the model below (see figure 1).
Figure 1. Model
In the model, all of the propositions together eventually will increase sales of the total potential
consumer market. The model should not be seen as neither complete nor an image of reality,
because it has not been tested empirically and because all fields of marketing are not covered in
this thesis. For producers of socially desirable FMCG who wish to increase sales, they either need
to sell more to existing consumers or attract new consumers. Either way, consumers will be the
focal point. In this model, the authors have illustrated that by placing the total potential share of
consumers in the middle of the figure. Each single activity, expressed as propositions, have the
potential to transform consumer intentions to purchase socially desirable FMCG into actual
purchases. If a proposition would be completely fulfilled, it would equal a piece of the total
potential consumer segment (the pie). However, it is unrealistic to expect all propositions to be
fulfilled at the same time. Instead, the reader should view the model as propositions of which areas
34 that are of importance to decrease the gap between purchase intention and actual purchase. A
shortcoming of the model is that all propositions seem to contribute equally to the improved share
of total potential consumer market. Most likely, this is not the case.
4.2 Further Research Suggestions
Except using the model of this thesis as the backbone for empirical research more theoretical
approaches are also suggested. It is likely that a more extensive study will result in more or
different propositions. Further research of areas of marketing not covered in this thesis would
probably provide this field of study with more and new perspectives. As mentioned in the section
covering delimitations, this thesis have chosen to focus more on in-store marketing than on other
marketing channels, such as TV advertisements and on-line marketing. Further research on what
kind of marketing activities that really are the most efficient for socially desirable FMCG is
welcomed. These subjects have only been touched lightly upon in this thesis, for example the
importance of long-term brand building. It can also be further investigated how and if aisle
management can be of importance for increasing the sales of socially desirable FMCG, since this
thesis could not present an unambiguous conclusion in this area. To test the model empirically,
research is needed for each proposition separately. This can be performed either in one single
study but it might also be possible to divide the research into several studies where each study
focus on different propositions. If that is the case, it is also needed to perform a “sum-up-study”
that will conclude all the propositions. Eventually, the model needs to be modified since empirical
research might suggest different solutions to increase total sales.
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39 .APPENDIX
.
Table 1. Compilation over Reviewed Articles
Author
Topic
Essoussi & Zahaf 2008
Underlying drivers of food
choice values in Germany
respectively in the UK.
Belz and Dyllik
-1996
Hartmann &
Apaolaza Ibáñez 2006
Article concerns positioning
strategies for ecological
products. It also discusses
what kind of individual
benefits the consumer is
seeking.
Bezawada 2009
Business Source
Premier
How display- and aisle
settings are affecting in-store
sales.
Blattberg and
Wisniewski 1989
Bezawada - 2009
How price changes affect
brand competition
Carpenter &
Nakamoto 1989
Carpenter &
Nakamoto - 1994
The authors discuss if it is
difficult for later entrants to
"compete away" the
pioneer's large market share.
Baker et al. 2004
Found through
Carpenter &
Nakamoto 1994
Business Source
Premier.
This article continues the
discussion of their work in
1989 (mentioned above)
Chandon et al 2009
Business Source
Premier
Discussing if in-store
marketing works
Analysis/Conclusion
The greatest similarity of
underlying drivers between
the UK and Germany was
found to be "health and
enjoyment". The greatest
difference between the
countries were found in the
perceptual orientation
connected with nature of the
environment.
The article suggest sthat
consumers may derive selfexpressive benefit from the
socially visible consumption of
green brands. Therefore, the
perceived individual customer
benefit might not be a
sufficiently powerful
motivation to green
purchasing.
The aisle management strategy
is important and retails can
benefit a lot from effective
aisle management decisions.
Aisle placement can affect
sales just as much as more
traditional marketing-mix
variables.
Low-tier brand mostly don't
affect upper-tier brands.
However, price changes for
upper-tier brands will affect
brands that are in the same
price range but it might also
affect lower-tier brands.
The article suggest that the first
mover advantage, under certain
conditions depends on biases
in buyers' preferences arising
from the preference formation
process.
The authors suggest that
marketing strategy influences
the evolution of consumer
preferences. The article
implies that preferences are
shifting so that simply
responding to consumer
preferences might not be
enough.
The authors found that in-store
marketing works better towards
well-educated, young and
“opportunistic” customers. Instore marketing will work as a
way to increase sales, at least to
a certain extent.
Other
Not chosen for this
thesis.
40 Author
Chryssochoidis
- 2000
Corey –
1975
Business Source
Premier.
Levitt - 1980
Topic
The article is trying to
determine which the
repercussions of the
confusion of late introduced
differentiated products such
as organic products are.
Case study of Crown, Cork
and Seal Aluminium
Company of America to
illustrate that marketing
strategies are not onedimensional in reality.
What type of decision
processing that occurs when
consumers are making a
choice for a common but
less frequently purchased
product
d'Astous et al. 1989
Öhman
Demski &
Swieringa –
1981
Öhman
To comment on Einhorn &
Hogarth's (1981) article.
Dens and De
Pelsmacker 2010
Business Source
Premier
Investigates interaction
effects between branding
strategy,, advertising
execution strategies and
product category
involvement (low and high)
on consumers’ attitudes
towards the product,
purchase intention and the
(parent) brand.
Dodds et al 1991
Business Source
Premier
How buyers´perception of
product quality and value are
affected by price, brand and
store information.
Einhorn &
Hogarth - 1981
Öhman - 2010
The article focus o some of
the methods of investigating
decision-making.
Erdem and
Swait - 1998
Business Source
Premier
Essoussi &
Zahaf - 2008
Finisterra do
Paço et al. 2009
Found through
Business Source
Premier
Business Source
Premier.
Explains the generation of
brand equity.
Analysis/Conclusion
Other
Late introduced differentiated
products are at a disadvantage
compared to existing products
in the marketplace as they
suffer from consumer
confusion regarding what the
differentation is compared to
conventional products.
Formulates a set of questions
for the management to ask
itself to be able to determine in
which segment the product
concept in question has most
value to the end-consumer.
The study shows that in-store
decision-making is harder when
the product is more important
and purchased less frequently.
Follow-up study on
Hoyer (1984)
In general, line extensions of
established brands are
preferrable over new brands.
There are greater differences
between advertising appeals in
both low- and highinvolvement conditions for new
brands than for brand
extensions.
Price has a positive effect of
how buyers perceive the quality
of the product. Favorable
brands are perceived as being
of better quality.
Attention, memory, cognitive
representation, conflict,
learning, and feedback are
important to understand
decision-making,
Brands are information sources
for the customers.Brands may
tell consumers something about
the product attribute.
Discovering differences in
consumers’ motives that
leading to consumption of
organic food products.
For a third or the respondents,
health was the main reason for
purchasing organic products.
Price are less important for
current buyers and they want
that the supply chain for the
products should be as short as
possible.
Focus on the identification of
distinct market segments for
environmentally friendly
products in Portugal.
Consumers who buy green
products do so for specific
reasons, and that certain
environmental and
demographic variables are
significant for differentiating
between the ‘greener’ segment
and other segments. The
Portuguese sample did not
always translate their
environmental concerns into
action.
41 Author
Fiske & Taylor
- 1984
Chryssochoidis - 2000
Grubb &
Grathwohl 1967
Business Source
Premier.
Hall - 2008
Business Source
Premier.
Topic
This a book, therefore the
whole of it has not been
reviewed but parts of
concerning on how
consumers react to new
information.
The authors briefly review
research and lay theoretical
foundations of consumer
behavior based upon an
individual's self-conccept and
the symbolic value of the
goods she buys.
The article looks at organics
from an
instrumental/symbolic
perspective and discusses the
marketing implications
associated with this
perspective.
Sustainability class at
the University of
British Columbia
Covers the “the tragedy of
the commons” which means
that people often act out of a
short-term personal goal.
This might harm the
collective in a long-term
perspective.
Hartmann &
Apaolaza
Ibáñez -2006
Business Source
Premier.
The article discusses the role
of emotional benefits,
particularly those based on
the hypothetical human
affinity with nature, and is a
reasoning paper rather than
an empirically tested study.
Heilman et al 2002
Business Source
Premier
What impact that in-store
coupons have on the
shopper's total basket of
purchase
Hardin - 1968
Holt - 2002
Hoyer - 1984
Hoyer - 1986
Found through
Analysis/Conclusion
N/A
Because the self-concept is of
value and of central importance
to the individual, she will direct
his be- havior to maintain and
enhance his self-concept.
Marketers need to take a very
broad perspective when trying
to understand organics and they
need to decide which aspects of
brand image they want to try to
develop and the implications of
doing so.
The concept of “the tragedy of
the commons”expresses how
the motivation for the
individual to act out of a long
term environmental goal to
support more the collective is
low. This is because the reward
or benefit of paying the higher
price will happen in the future
or not at all.
The key challenge for green
marketers is to strengthen
individuals’ perception of the
individual benefits to be gained
from “going green” by adding
more and stronger emotional
values to green brands.
Shoppers who received
“surprise-coupons” increased
their level of unplanned
purchasing. Customer who
planned to buy a product often
purchased an increased quantity
if it was a couponed item.
Branding provides an
opportunity for the firm to
shape the customer’s
perceptions; thereby it also
creates a window to influence
the perceived value of the
product.
Brand Management
class at University of
British Columbia.
The case material concern
branding and the importance
of brands. Furthermore, the
importance for marketers to
create a strong brand culture
is emphasized.
Öhman - 2010
What type of decision
processing that occurs when
consumers are making a
purchase choice for a
common, frequently and
typically low-involvement
purchased product
In general, customers that are
purchasing FMCG are making
an extremely quick decision. A
large portion of the decisions
are made outside the in-store
situation.
To what extent various
aspects of the task influence
consumers to employ a
particular type of choice rule
or heuristic.
There are no consistent
decision process across all
choice contexts. When
advertising levels are high,
consumers more often use
performance related tactics than
price related tactics. When the
perceived similarity between
brands was high, price tactics
was more commonly used.
Öhman - 2010
Other
42 Author
Hughner et al 2007
Found through
Business Source
Premier
Who the organic food
consumers are
Business Source
Premier
How category characteristics,
customer characteristics and
customer activities does
affect in-store decision
making.
Irwin & Naylor
- 2009
Business Source
Premier
Research about if consumers’
weighting of particular
attributes differed by
response mode, regardless of
framing.
Ji & Wood 2007
Business Source
Premier
Research about how
customers' habits are
following their stated
intentions.
Jolly - 1991
Business Source
Premier
Differences between buyers
and non-buyers of organic
products
Hall - 2008
The article concerns the
functional approach in the
attitude literature. Katz
discusses the link
instrumental attributes have
with the need to maximize
benefits and minimize cost
and that symbolic
characteristics generally
correspond to non-product
related attributes.
Business Source
Premier
To show how one-to-one
marketing can be carried out
during the shopping
experience by using PDA
devices.
Business Source
Premier
The role of brand loyalty as a
measurement of effective
brands marketing.
Inman et al 2009
Katz - 1960
Klabjan & Pei 2011
Knox and
Walker - 2001
Topic
Analysis/Conclusion
Other
Parents to young children are
more likely to purchase organic
grocery products. In general,
young people tend to have a
positive attitude to organic food
but older people are the most
likely purchasers.
The results show that coupon
useage decreases the likeliness
of unplanned purchasing. Instore decision-making is
affected by gender, household
size and store familarity.
Ethical attributes were
weighted more by participants
in exclusion mode than in
inclusion mode. Ethical
attributes are, according to the
respondents, more justifiable
and morally relevant in
exclusion than in inclusion.
The conclusion from this article
is that customers often repeat
habits in daily life even if they
reported intentions to not do so.
Intentions only guided behavior
in absence of strong habits. In
other words, what you say you
do is many times not the same
as what you actually do
The price and search cost are
important constrains for
customers to purchase organic
products. People with a high
income were more likely to
purchase organic products.
The author outlines the basic
notion of that people hold
attitudes toward objects, events,
issues and behaviors for
various reasons. That is,
attitudes fulfill functions for the
individual, such as maximizing
rewards, expressing one's
values, etc.
Use the digital shopping
assistant to provide customers
with digital coupons. An
advantage for the customer will
be that no duplicate coupons
will be issued to the same
customer.
Brand support and brand
commitment was found to be
needed if loyalty should
occur. Four purchasing styles
were identified: loyals,
habituals, variety seekers and
switchers.
43 Author
Kollat and
Willett - 1967
Kotler and Levy
- 1972
Kumar et al 2007
Levitt - 1980
Lievens &
Highhouse 2003
Found through
Topic
Öhman - 2010
Discover if
certain shoppers are more
likely to make unplanned
purchases and what kinds of
customers that are most
susceptible to unplanned
purchasing.
Business Source
Premier
An attempt to explain
marketing from the buyer's
side.
Business Source
Premier
Discovering how customer
lifetime value (CLV) can be
determined individually to
increase profit in a retail
store.
Brand management
class at University of
British Columbia.
The author is discussing in
which ways differentation is
the key to success in
marketing. He is making a
difference of the offered
product and the generic
product. Discusses this
through different empirical
examples.
Hall - 2008
Magnusson et
al - 2001
Hughner et al - 2007
Magnusson et
al - 2003
Business Source
Premier
The authors focus on a
marketing-based angle to the
study of the attractiveness of
organizations. Drawing on
the instrumental-symbolic
framework from the
marketing literature.
Swedish consumers attitude
towards organic food.
Attitudes and behavior
towards organic foods.
Analysis/Conclusion
The buyer's sex doesn't affect
the unplanned purchasing
behavior. Fill-in trips are
characterized by a lower level
of unplanned purchasing than
major shopping trips. The
authors noticed that, in general,
the greater number of products
purchased, the greater percent
of unplanned purchases.
Sometimes the seller has the
advantage and in this situation
the buyer have to apply
strategies to be able to achieve
the purchase. The authors
presents four strategies to overbridge this: through coercion,
inducement, education or
pursuation.
The authors found that CLV
increases when the customer
stays longer with the store and
purchases goods more
frequently.
Differentation is a very
powerful tool in how to
customers attract value to a
product in proportion to its
perceived ability to help solve
their problems or meet their
needs. All else is derivative
"The product ... is the total
package of benefits the
ciustomer receives when he or
she buys" Made us look up the
article by Corey Raymond, as
the quote seems good.
The study demonstrates that the
instrumental-symbolic model
provides practitioners with a
useful framework.
Other
The article using a
different perspective
of marketing but
considered relavant
for this thesis
anyhow since it
contains interesting
reasoning regarding
symbolic and
instrumental values
in brand
management.
A high percentage of the
sample are positive towards
organic products but only a
minory have intentions to
actually purchase organic
products. A very high share of
the respondents claimed that it
was hard to know whether
many of the products in-store
was organically produced or
not.
Organic food purchases was
found to be strongly correlated
to perceived human health
benefit. Egoistic motives are
important for the choice to
purchase organic products.
44 Author
Found through
Topic
Analysis/Conclusion
Michaelidou &
Dibb - 2008
Business Source
Premier
A literature study of different
views of consumer
involvement.
Mittal - 1989
Business Source
Premier
The author develops a scale
of purchase decision
involvement.
Nelson - 1970
Business Source
Premier
A theoretical model of how
consumers quest of quality
information of goods.
The choice of shopping channel
may affect the level of purchase
involvement.
The scale consisted of four
measurements: perceived brand
differences, degree of caring,
importance of right brand
selections, and concern with the
outcome.
Customers have a basic
alternative to search of
information; they may use
experience.
Ngobo - 2011
Drivers in a household's
choice of organic products in
grocery stores.
Nordfelt - 2009
Öhman (2010)
Discover if the type of
shopping trip influence the
number of unplanned
purchases.
Olshavsky and
Granbois 1979
Öhman
Research about if customers
necessarily perform a prepurchase valuation.
Business Source
Premier
Consumers' attitude towards
a low involvement food
category.
Ozretic-Dosen 2007
Business Source
Premier
Peattie - 1990
Business Source
Premier.
Peattie - 1992
Chryssochoidis - 2000
This paper takes a critical
review of incorporating green
issues in marketing strategies
and explores the implications
for marketing education. .
Examples of these factors
such as consumer and
management attitudes,
pressure groups and media
interest are discussed.
This a book, therefore the
whole of it has not been
reviewed but certain parts of
the book deals with the fact
that diffusion of organic
products in the marketplace
is currently suffering despite
their importance for
sustainable economic
development.
Other
The probability to purchase
organic products is higher
among the college educated,
high income, older families and
high-level occupation groups.
Customers negatively perceive
products that have been
distributed over long distances.
Store brands are more popular
than national brands.
The type of shopping trip
influences the number of
unplanned purchases. In
general, it is more likely with
unplanned purchases for a fillin trip than for a major trip,
mainly because of the time
factor.
The authors conclude that prepurchase decision-making
exist. However, the also found
that a decision process in many
cases never occurs, not even on
the first purchase.
The authors found that
knowledge about where the
brand has its origin has a strong
motivational factor on
consumers' purchase related
behavior.
Marketers need to continue to
educate themselves in the
growing area of green
marketing.
N/A
45 Author
Plummer 2000
Hall - 2008
Rees, William
E. - 2002/2003
Sustainability class at
University of British
Columbia
Sashi & Stern 1995
Business Source
Premier
Sethuraman,
1999
Shao et al. 2008
Sherman, S 1980
Sorensen 2009
Found through
Bezawada, 2009
Business Source
Premier
Topic
Discusses the importance of
better understanding the
whole concept of personality
and its relationship to how
consumers respond. If it
would be possible to isolate
and understand the basic
driving forces, such as
personality traits, that
predisposes consumers to act
in certain ways marketing
would be easier.
Question that is discussed is
what we can do about our
environmental crisis given
that H. Sapiens is inherently
biased against sustainability
by nature. The primary goal
of all life is to survive, but
the self-oriented aggressivedefensive behaviours that
served so well for that
purpose early in our
evolution are maladaptive in
the ecologically full world
today.
In this paper the authors
examine the relationship
between product
differentiation strategies and
profitability for different
categories of producer goods.
Discovering if the
neighborhood price effect
and the assymetric price
effect are generalizable
across product categories.
Research about if consumers
apply multiple decision
waves to choose a durable
product.
Öhman - 2010
The work will try to
demonstrate the scope of
people's inability to predict
their own social behavior.
Finally the research is
designed to investigate the
behavioral effects of
mispredictions.
Business Source
Premier
Discussing how store
design/layout and aisleness
will have impact on shopper
efficiency.
Analysis/Conclusion
Other
Even though working with
personality segmentation of
consumer populations has not
yet been proven to be
successful, marketers should be
motivated to work with brand
personality as a new arena of
marketing
The point is that the
sustainability crisis may be
humanity's final opportunity to
rise above mere animal
instincts. Humans need to
recognize that our best chance
for survival lies in collective
self-restraint and mutual
cmmitment to the common
good. This is an unaccustomed
mode of human political
behaviour.
Inspiration to the
overall paper idea.
The results indicate that
product differentiation is based
on "custom services".
Assymetric price effect is not
generalizable. There is a strong
generalizable neighborhood
price effect. For traditional
products, national brands often
steal market shares from lowerpriced store brands.
Consumers uses more than two
decision waves to make a
purchase decision for a durable
product. However, the number
of waves in this decision
scenario might be low
compared to reality since the
real world is even more
complex.
The result of the study shows
that by having people consider
beforehand what their behavior
might be in a situation
involving moral behavior, their
actual be- havior in that
situation will be more socially
desirable, acceptable, and
moral than if they had not made
initial predictions.
In-store exposures may be seen
as a great advertising
opportunity for storeowners.
The advertiser's main task is to
accelerate sales in the shopper
space, without increasing the
efforts from the shopper. In this
case, the effort can be seen as
how much time it takes for the
shopper to finish a purchase.
Not chosen for this
thesis. Doesn't put
emphasis on a
certain type of
consumption, more
discusses the
difference between
intention and moral
behavior.
46 Author
Steenkamp and
Kumar - 2009
Stern - 1962
Öhman
The article focuses on that
companies not should ignore
hard-discount retailers.
Refining the definition
"impulse buying"
Stilley et al 2010
Business Source
Premier
Straughan &
Roberts -1999
Business source
premier.
Looking into the future of
green marketing, and
examines the dynamic nature
of ecologically conscious
consumer behavior.
Zanoli and
Naspetti - 2002
Öhman - 2010
Business Source
Premier
Topic
Discovering if the impact of
promotions depend on
whether the shopper still has
in-store slack remaining in
his or her mental budget.
Williams &
Dardis -1972
Found through
Öhman - 2010
Emerald
Starting point for this
thesis, found through
other course work
The study examined
shopping behavior for soft
goods - apparel and
household textiles - to
determine the degree of
purchase planning and
shopping activity for such
goods.
Consumer motivations when
purchasing organic products.
Dissertation with several
chapters covering different
topics of Intentions and
Consumer Behavior.
Analysis/Conclusion
Hard-discounters keep the
number units in-store low,
which reduces supply-chain
costs. Discount retailers are
forecasted to increase by 50%
over the next 5 years.
The author identified nine
factors that influence impulse
buying: Low price, Marginal
need of product, Mass
distribution, Self-service, Mass
advertising, Prominent store
display, Short product life,
Small size or light weight and
Ease of storage. The author
concludes that impulse buying
is irrational and therefore
impossible to influence.
In general, the effect of in-store
savings depends of if they
appear before or after the
customer's slack is depleted. If
savings appear before the slack
is depleted, it results in stockpiling shopping by high income
customers. If savings occur
after the slack is depleted, it
will result in increased
purchase of unplanned
products.
Findings indicate that, despite a
significant amount of past
research attention, demographic
criteria are not as useful a
profiling method as
psychographic criteria.
In conclusion the relatively
low degree of shopping activity
for all items examined indicates
the importance of store choice
by consumer. For the
manufacturer of soft goods the
low level of brand preference
combined with low shopping
activity suggest increased store
reliance by the consumer.
Lower prices and better
distribution would increase the
demand for organic products.
Better product information
would also be desirable.
Healthiness is a major
motivator of why the
respondents are purchasing
organic products.
There is a gap between the
intention to purchase socially
desirable products and the
actual purchase. This is due to
various reasons.
Other
Not chosen for this
thesis.
Not chosen for this
thesis. Concerns
different kinds of
products not
relevant for this
thesis.
47