CONTROVERSIAL ISSUES IN CONSUMER MARKETING

Controversial Issues in Consumer Marketing



Abstract

Consumers are becoming increasingly concerned with ethics. These ethics - from environmental impacts, fair-trade, ethical sourcing and manufacturing standards - are increasingly instrumental in guiding the purchasing decisions of consumers the world over. Ethical consumer publications (many of which will be cited in this dissertation) are proliferating, and readership and circulation of such publications are increasing at an exponential rate. Many of the issues that such publications focus upon draws consumers' attention to discrepancies between what consumer product manufacturers say via their marketing material, and the reality of what they actually do. Besides the importance that the very existence of such publications and their increasing popularity should signify to product manufacturers, companies and industries must begin to take notice of the scrutiny under which their advertising campaigns are now being placed. This dissertation will look at one of the most controversial companies, within one of the most controversial consumer industries, that reflects a myriad of the most controversial issues within this rubric as a whole. Indeed, mention the very word 'Nestle' to an ethical consumer, and you are likely to be met with an unstoppable barrage of accusations of seriousness ranging from the volume of plastic used in product packaging, to practices of inherently questionable ethical standing involving the exploitation of cheap labour in some of the world's poorest countries. The confectionary - especially the chocolate - industry as a whole has also come under substantial fire regarding its questionable ethics. This dissertation will focus, therefore, upon determining how the company has continued to grow in spite of its refusal to align itself with the changing needs and demands of consumers. The company's marketing and advertising material will constitute the main focus of discussion, which will be supplemented by comparison to manufacturers operating within the same industry.

Table of Content

CHAPTER-I: INTRODUCTION4

Research Aims & Objectives9

Research Hypothesis9

CHAPTER-II: LITERATURE REVIEW10

Early Studies10

Cross-Cultural Comparisons12

Transitional Economies15

Research Questions18

Reliability19

Validity Issues20

CHAPTER-III: METHODOLOGY26

CHAPTER-IV: RESULTS AND FINDINGS29

Table II Correlations between scale categories31

Discussion and Findings36

Implications40

CHAPTER-V: CONCLUSION, LIMITATIONS AND SUGGESTIONS44

Executive Summary and Implications for Managers and Executives46

The Consumer Society Begins in China46

Government Intervention or Consumer Power?47

The Mature Consumer Society49

REFERENCES51

CHAPTER-I: INTRODUCTION

Marketing can undoubtedly bring benefits to society, although some aspects of marketing may be questionable on ethical grounds. The aim of this assignment is to raise criticism of marketing and show that consumer behaviour is affected by ethical issues. Do consumers really care about marketing ethics?

Ethics is a complex concept to define, and there is an attempt made by contemporary theorists to highlight ethical behaviour in a marketing context. Issues surrounding marketing ethics and social responsibility are inherently controversial. An area that causes particular dispute is the question of the effect of ethical and unethical marketing activity in regards to the purchasing behaviour of consumers. According to the contemporary theory of ethics one would like to think that being a ``good company'' would attract consumers to your products, whilst unethical behaviour would see customers boycotting the products of the offending ...