AN ASSESSMENT OF THE ECONOMICS AND ETHICAL CONCERNS FOR THE ENVIRONMENT IN CONSUMER CHOICES
INTRODUCTION
The article examines individual action informed by ethical concerns for the environment as a strategy for moving toward more sustainable consumption. The article first employs a model of rational choice to analyze independent consumer choices among the usually assumed self- and welfare-centered consumers and then expands the model to analyze the implications of other than self- and welfare-centered motivations for consumer choice.
The article next analyzes interdependent consumer choices informed by self- and welfare-centered values with the help of a simple game-theoretic model and then moves on to examine the implications of nonutilitarian environmental concerns for interdependent consumer choice in the same game-theoretic framework. The article concludes that although a strategy based on individual action may have limited promise when environmental concerns are widely shared, the case for collective action remains strong because of both efficiency and equity reasons.
- Literature Review
Information and Awareness of Green and Ethical Issues: The increased demand for eco-friendly
products and the green marketing concept in the modern era is primarily driven by rising consumer
awareness about environment. Therefore, consumers forced to accept eco-friendly products. In addition,
growing environmental crises have increased the environmental awareness and consciousness of both
firms and consumers. Because of environmental awareness, environmental information can effect and
direct consumers to make knowledgeable purchasing choices (Leire and Tidwell, 2005). When consumer
preferences are the subject, it can be seen that people seek for green products. Thereby, several
enterprises promote green marketing (Jose, 2012). Internet is a growing medium for carrying out
marketing of green messages, with print, television, mobile, and direct mail methods rising as other
popular sources (Jose, 2012; Leire and Thidell, 2005; Sullivan, 2008). In recent years, numerous online
green shopping sites have appeared which provides environment friendly products (Jose, 2012). In the
US and Europe, increasing awareness about the environment is motivating consumers to invest in energy
efficient products and recycling. Thus, this make firms to generate segmentation and positioning
strategies and to initiate a successful advertising and product program linked to green issues to enhance
awareness, especially in developing countries. For example, retail displays and product packaging are
using “green” ideas for proper visual communication (Jose, 2012). One of the ethical issues surrounding
marketing ethics studies is the awareness of consumers about ethical marketing activities of firms.
According to Alexander and Nicholls (2006), in order to behave in ethical manner, consumers appear to
have become more involved in achieving information about the production of purchased products.
Therefore, for the companies producing ethically may attract today’s knowledgeable and conscious
consumers who tend to behave much more ethical ways during consumption (Wherever, 1992). Even so,
a considerable part of consumers is still unaware about corporate ethical issues. For example, Corrigan
and Attala (2001) give the results of Dragon International’s research reporting that only 26% of
respondents could give the name of a firm, which is perceived as socially responsible. That means
consumer have low awareness and inadequate knowledge of unethical behaviors of firms. In addition, to
understand how consumers become aware of ethical activities of firms, researchers and marketers give
importance to examining the sources of information. In order to make ethical choices, consumers need
true and accurate information (Uusitalo and Oksanen, 2004). Media and television are seen as the
primary information sources of ethical awareness (Strong, 1996). Anon (1991) reported that, 70% of
consumers assemble information about ethical issues from television programs and documentaries in the
UK, although newspapers, books and magazines are the ensuing source of knowledge. Publicity is also an
important source for awareness, where negative publicity about unethical behaviors occurs more
frequently than positive publicity about ethical ones (Uusitalo and Oksanen, 2004). However, according
to Sun (2012) there are three barriers to being an ethical consumer: lack of information, perceived higher
National Differences: The sustainable consumption depends on some macro-level and structural factors
in addition to individual consumer choices (Thøgersen 2005; Kilbourne, McDonagh and Prothero, 1997).
There still exists a significant difference between developing and developed countries in terms of green
awareness (Tantawi, O’Shaughnessy, Gad, Ragheb, 2009). For example, in a developed Western Society,
sustainable consumption is driven, in part, by the fact that consumers are more educated, better
informed, and awareness is greater of consumer rights and product requirements (Carrigan and Attala,
2001). As Mostafa (2007) indicates, personal habits and lifestyles of consumers in the US and Western
Europe are becoming more environmentally responsible; yet Eastern countries, such as Egypt, are just at
the stage of green awakening. Further, sustainable consumption is considered as an important aspect of
sustainable development particularly in Western societies (Abeliotis, Koniari and Sardianou, 2010).
Therefore, environmental safety is relatively more crucial in the developing countries. Similarly,
Moisander (2007) indicates, environmental awareness increases especially in Western markets, yet there
are still barriers to the green consumption styles arising from the cultural, infrastructural, political and
economic circumstances. Thøgersen (2010) states consumers from northern European countries
purchase more organic food than Mediterranean countries. Amine (1996) calls attention to scandals
concerning production or marketing of potentially harmful products in less developed countries such as
high-dosage contraceptive sales; high-pressured baby food promotions; and unhealthy production of
asbestos. Besides green consumption, consumers from different nations have a propensity to analyze
ethical issues in different ways (Rawwas, Strutton and Johnson, 1996). For example, Al-Khatib, Vittel and
Rawwas, (1997) show that ethical beliefs of American and Egyptian consumers differ significantly.
Polonsky, Brito, Pinto and Higgs-Kleyn (2001), identify differences between the consumers in Northern
and Southern European Union countries in terms of ethical consumption perceptions. So, in this study.
- Methodology
Research Questions: The study explores views of consumer experiences based on following key research
questions, which are closely linked, to a qualitative research design:
RQ1: What is the relationship between ethical issues and green buying behavior of American and
Turkish consumers?
RQ2: How well informed are the consumers on ethical issues and how much are they aware of
ethical issues?
RQ3: Are consumers will to boycott or purchase according to ethical issues of a firm?
RQ4: How are consumers informed about green products, and are they aware of green products
sufficiently?
RQ5: What are the aspect of influences and barriers about green product purchase?
RQ6: Are there any national differences in terms of green and ethical issues between American
and Turkish consumers?
