This study examines whether consumers are willing to make tradeoffs to purchase ethically. Authors conducted experiments with students in Hong Kong and Australia and Amnesty International supporters. Labor practices or animal rights and the environment were the social product features studied. Results show social product features can affect a person's buying intentions, but that most will not trade off functionality.
Some research suggests consumers will pay for ethicalness but this has been examined mainly via case studies or survey results; consumers have not been forced to make a tradeoff between social and functional features. This research asks whether social product features (or lack thereof) impact consumer purchase intentions, especially when they interact with functional features. Further, does information about the social attributes change the intent to buy?
- Social features may make a difference but only once functional features are satisfied. Even "socially conscious consumers" (the segment identified as those for which all social attributes impacted purchase intentions) also valued function and price.
- Ethical features make a difference for at least some consumers. Shoes with ethical features made up 88 percent of total purchases for athletic shoes by the Amnesty International supporters.
- Some social features are more important than others. Of the social attributes studied, avoiding child labour was more important than working conditions, living accommodations and minimum wage; for soap, animal testing was more important than using animal by-products or being biodegradable.
- Providing information like a backgrounder, on social attributes does not change intent to purchase.
Implications for Managers
- Good social attributes can't make up for poor functional attributes. Socially conscious consumers exist but they also place great value on functional attributes. For example, in the case of athletic shoes, the likelihood that someone will purchase the ethical product with a premium of $4 without compromising functionality is 62 percent. However, with the same premium and having to sacrifice functionality the probability drops to 20 percent.
- Point of purchase signage on a social feature may not increase sales.
Implications for Researchers
The authors note the sample was not representative; it would be interesting to see what proportion of a representative sample would choose products based on ethical attributes. A more realistic experiment may observe what people actually buy, or force them to buy something rather than asking which they would buy.
The experiment asked subjects to decide whether to consider and purchase 32 hypothetical soap bars or athletic shoe products (with different functional and ethical attributes and prices). Some were also provided background information on the social attributes (e.g. a news story). The social attributes examined were (for shoes) child labour, minimum wage, working conditions and accommodations; (for soap) biodegradable, animal testing and animal byproducts. Researchers used 3 groups: Amnesty international, Hong Kong undergrads, and MBA students in Australia. In total 1253 people were studied; 445 instruments were returned.
Auger, Pat, Devinney, Timothy M., Louviere, Jordan J., & Burke, Paul F. (2008). Do social product features have value to consumers? International Journal of Research in Marketing, 25(3) 183-91.
Pam Laughland & The NBS Team