ethical marketing

PRIME research: 01734449991

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A study of the impact of ethical marketing

practices for gaining competitive advantages-

a case study of Waitrose UK.


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ABSTRACT There is cutthroat competition in the retailing industry,Getting competitive advantage

is getting very difficult and challenging for sustainable growth of any business. The

major aim of this research paper is to investigate the impact of ethical marketing on

competitive advantages for Waitrose, UK. Ethical marketing is performed by many

companies but how much this is contributing to the company in form competitive

advantages remained as key question.

As I have gone through the related research papers and articles, I have found that

Ethical marketing is the process of making marketing decision by using morality and

ethics to gain sustainable market position by thinking broader perspective rather

narrowly individual perspective. For ethical marketing, an organisation should focus

on different aspects. On the other hand, competitive advantages are the positions and

opportunities which will keep one organisation ahead of its rival organisations in

terms of products, offers, market shares or anything.

To understand about how important it is to practice ethical marketing in the

organization, I have done a quantitative study. Null hypothesis and alternative

hypothesis have been constructed. And data from the quantitative survey have been

analysed.

From the study it has been evident thatWaitrose follows a mix of tools as part of its

ethical marketing strategy. There are few options available for ethical marketing to

Waitrose which can lead Waitrose to sustainable competitive advantage. On the other

hand the study has also revealed that when the marketing professionals of Waitrose

practice good ethical activities the ethical practice of the marketing professional

influences the customers positively. Also, a positive correlation is found in Waitroses

different program under its ethical marketing wing. It got the market recognition and

the customers perception has been changed positively toward the company.

However, as found out from the survey result, some customers strongly disagree and

some just remained neutral that ethical marketing is being performed properly in

Waitrose.


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i. Table of Contents

ABSTRACT .......................................................................................................................................... 2

Chapter 1: Introduction ................................................................................................................. 6

1.1 Background of the research ....................................................................................... 6

1.2 Rationale of the research ............................................................................................. 7

1.3 Aims of the research ...................................................................................................... 9

1.4 Objectives of the research: .......................................................................................... 9

1.5 Research questions: ....................................................................................................... 9

1.6 Research hypothesis .................................................................................................. 10

Chapter 2:Literature review ..................................................................................................... 10

2.1 The concept of Ethical marketing ............................................................................... 10

2.2 Different ways of ethical marketing .......................................................................... 12

2.2.1 General standards of truth: .................................................................................. 12

2.2.2 Developing ethical values of marketing professionals: ............................. 12

2.2.3 Advertising and promotion: ................................................................................. 13

2.2.4 Consumers centricity in ethical marketing practice: .................................. 13

2.3Competitive advantage .................................................................................................... 14

2.4 Relationship between ethical marketing and competitive advantage ... 14

2.5 Conceptual framework .............................................................................................. 22

Chapter 3: Methodology of the research .............................................................................. 25

3.1 Philosophy of the research ...................................................................................... 25

3.2Approach of the research ................................................................................................ 25

3.3 Research Strategy: ...................................................................................................... 26

3.4 Type of the investigation/Design .......................................................................... 27

3.5 Data collection methods .............................................................................................. 28

3.6 Sampling method ......................................................................................................... 28

3.7 Data analysis ................................................................................................................. 29

3.8 Ethical issues ................................................................................................................. 30

3.9 Accessibility issues ..................................................................................................... 30

3.10 Limitations ..................................................................................................................... 31

3.11 Anticipated findings ................................................................................................... 32

Chapter4: Result and Discussion ............................................................................................ 32

4.1 Result ..................................................................................................................................... 32

4.1.1 Demographic variables .......................................................................................... 32

4.1.2 Cronbachs Alpha .................................................................................................... 34

4.1.3 Green Marketing (GM) ......................................................................................... 35


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4.1.4 Development of code of ethics (DCE) ............................................................. 37

4.1.5 Ethical value of marketing profession (EVMP) ............................................ 38

4.1.6 Comply with regulation and standards (CRS) .............................................. 41

4.1.7 Right and true information in Promotion (RTIP) .............................................. 43

4.1.8 Corrective Advertising .............................................................................................. 44

4.1.9 Positive Effects on the Consumers (PEC) ........................................................... 45

4.1.10 Competitive Advantage ....................................................................................... 46

4.1.11 Correlation Analysis ............................................................................................. 48

4.1.12 Regression Analysis .............................................................................................. 49

4.2 Discussion ................................................................................................................................. 52

4.2.1 Setting general standards of truth .......................................................................... 52

4.2.2 Development of ethical values in marketing professionals .......................... 53

4.2.3 Advertising and promotion ethically ..................................................................... 54

4.2.4 Ethical manufacturing and endorsement of products .................................... 55

4.2.5 Ethical practice with Customers.............................................................................. 56

4.2.6 Competitive advantage ............................................................................................... 56

Chapter 5: Conclusion and Recommendations ...................................................................... 57

References ....................................................................................................................................... 60

Appendix A ..................................................................................................................................... 64

Appendix B ...................................................................................................................................... 69

ii. LIST OF FIGURES

Figure 1: GM (Question one) .................................................................................................... 36 Figure 2: GM (Question Two) ................................................................................................... 36 Figure 3: GM (Question Three) ................................................................................................ 37 Figure 4: Development of code of ethics (DCE) ................................................................ 38 Figure 5: EVMP (Question One) .............................................................................................. 40 Figure 6: EVMP (Question Two) ............................................................................................. 40 Figure 7: EVMP (Question Three) .......................................................................................... 41 Figure 8: Comply with regulation and standards (CRS) ................................................ 42 Figure 9: Right and true information in Promotion (RTIP).......................................... 44 Figure 10: Corrective Advertising .......................................................................................... 45 Figure 11: Positive Effects on the Consumers (PEC) ...................................................... 46 Figure 12: Competitive Advantage (Question One) ......................................................... 47 Figure 13: Competitive Advantage (Question Two) ........................................................ 48 Figure 14: Competitive Advantage (Question Three) ..................................................... 48


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iii. LIST OF TABLES

Table 1: Demographic variables ............................................................................................. 33 Table 2: Cronbachs Alpha ........................................................................................................ 34 Table 3: Ethical Marketing Strategies (EMS) ..................................................................... 35 Table 4: Development of code of ethics (DCE) .................................................................. 37 Table 5: Ethical value of marketing profession (EVMP) ................................................ 39 Table 6: Comply with regulation and standards (CRS) .................................................. 42 Table 7: Right and true information in Promotion (RTIP) ........................................... 43 Table 8: Corrective Advertising............................................................................................... 44 Table 9: Positive Effects on the Consumers (PEC) ........................................................... 45 Table 10: Competitive Advantage .......................................................................................... 47 Table 11: Correlation Analysis ................................................................................................ 49 Table 12: Model Summary for Positive Effects on the consumers ............................ 50 Table 13: Coefficients for Positive effects on the consumers ...................................... 50 Table 14: Model summary for Competitive advantage .................................................. 51 Table 15: Coefficients for Competitive advantage ........................................................... 51


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Chapter 1: Introduction

1.1 Background of the research

In this modern day of business, building customer equity through building brands is

the key. But for building brands it is imperative to gain sustainability, which can

come from different practice. Ethical marketing practice is one of the area from where

competitive advantage can come through. In the long run it helps the firm to survive

in the world of extreme competition.

In ethical marketing there are no hard and fast rules, but a general set of guidelines to

assist companies as they evaluate new marketing strategies. (Anderson and

Kerr,2002). When done in a thoughtful way, ethical marketing can be an economical

and effective form of advertising. Similarly, unethical advertising doesn't guarantee

higher sales or lower advertising costs.Some companies operate according to lofty

personal principles. For these companies, advertising in an ethical way is a natural

and necessary extension of their corporate character. In this era of competitive retail

business world companies that are known for treating workers fairly, sourcing

sustainable materials, environmental stewardship, and charitable donation have to

reflect these principles in their marketing effort(Kurtz, 2010). Waitrose UK has been

taken as the sample organisation to conduct the research on impact of ethical

marketing practices for gaining competitive advantages. Waitrose is a UK origin

exclusive supermarket chain offering quality grocery products and other essential

commodities across the UK. Waitrose is a subsidiary company of John Lewis and

John Lewis acquired the Waitrose in 1937(waitrose.com, 2014).

They set their guideline of their ethical marketing practice and set standards for their

competitors. Ethical marketing helps the firm to gain the trust of their customers.

Trust is the key to build brand. The customers can take easily products from the

Waitrose. The consumers do not have to worry about the quality of the products and

the price associated with it. As they are performing the ethical marketing they will not

any unethical activities with their customers. Consumer buying decision is much

dependent on the marketing communication. By the ethical marketing activities

Waitrose will be able to gain the faith and confidence of their customers (Anderson


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and Kerr,2002). Moreover the societies over all development will be possible by the

ethical marketing. In the ethical marketing activities it will be defined what is right

and what is wrong. Any communication that easily guile the customers will not be

preferred and most importantly it will be avoided by the company. All this help the

company to supersede their competitors and gain a competitive advantage. Moreover

in the ethical marketing the firm will not claim anything that they cannot serve to their

customers. They do not try to dupe their customers. So more and more customers will

join the company for their purchase and also the share of the customers and the mind

of the customers will increase eventually. Many companies involve themselves in the

gullible practices and the customers are fool of it. But these are not expected and

moreover the gullible practice is also disclosed with the help of the technology to the

customers in the time. So those companies who practicing the ethical marketing

practise in their marketing activities those are getting advancement in the competitive

advantage. And building more brand equity while serving customers in a better way.

These companies are not concerning about their higher profit rather they are

concerning about their ethical standards and the customers satisfaction and customer

loyalty. With the advancement of the technology the business can have access to

much information of the customers which they can use for the benefits of the

customers and irony of the fact is that these information and access can be harmful to

the customers. So to maintain the market position in the market place many

companies are involving themselves in many unethical and illegal practices which

disrupt the rights of the customers.

Therefore, this study has been conducted to understand the criticality of ethical

marketing practice for gaining competitive advantage for a firm.

1.2 Rationale of the research

The success of retail business mainly depends on how much influence they can create

on consumers mind as it is the main tool of gaining competitive advantages (Lars,

2008). Consumers value ethical marketing so highly that they are willing to pay more

for products and services from socially responsible companies. In addition, by

conveying important information about how products have been manufactured in a

socially or environmentally responsible manner, companies may increase market

share relative to competitors that are poor corporate citizens (Hopkins, 1999). So it


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became a vital issue to find out whether the ethical marketing practise helps retail

organisation like Waitrose to gain competitive advantage over its rivals.For retail

organisation like Waitrose, ethical marketing will be little more than an opportunity to

boost their credibility (Kurtz, 2010). As customers are concerned about the

organisations responsibility and ethics now days, it is very important to know about

the how these ethical marketing policies are helping organisations like Waitrose to

gain competitive advantages. So now a days it became very important to find out how

the ethical marketing helping organisation like Waitrose to gain competitive

advantages and what are the consumers thinking about the ethical marketing practice

of Waitrose.

This research will shed light on various ethical marketing strategies of Waitrose. This

research will help retailer like Waitrose to find out the best approach to gain

competitive advantages by using their Ethical marketing practice.

The competitive advantage is very prominent factor for the organization (Anderson

and Kerr ,2002). By the competitive advantage the company can achieve the points of

parity and points of difference which help the company in building their brand equity.

Itwill help Waitrose to reflect ethics in all parts of their organization culture and thus

can convey a good feeling of ethics to its stakeholders. That is why this research has

been taken into consideration.

Ethical marketing practices for gaining the competitive advantage in the market place

over the competitors over the Waitrose in the UK is the main issue of the research.

The research is all about the competitive advantage that gave by the Waitrose by the

practice of the main concern and the study is based on these competitive advantage

and ethical marketing related issues.

Now the business world is very competitive. That is why this issuehave been chosen.

This issue would be very benefit for the company that is why this issue is the matter

of concern. The thing about the customer regarding the ethical practices of the

company, the perception of the ethics to the customers can lead the Waitrose to design

their marketing communication in the near future. Thus they can easily fulfil the need

and demand of the customers and they can earn the trust of the customers. So the

purchase of the customer is eventually increase and the company can earn profits that


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they can use for their future growth to be the market leader in the market of the UK.

Also this not the ending the company can get the customers loyalty which made them

to create a stable position in the market.

So, the key need for doing this research is understanding how ethical marketing

practices can be leveraged to gain long term competitive advantage for a retail

business. The retail area is chosen as the level of competition is huge in that sector.

And finding a blank space where an organization can fit its core strength is very

critical for the overall business growth of that firm.

1.3 Aims of the research The aim of the research is to analyse impact of ethical marketing practices for gaining

competitive advantages for Waitrose UK.

1.4 Objectives of the research: The main objectives of the research are given below:

O To study the components and dimensions of ethical marketing.

O To examine various dimensions and aspects that should be considered in

establishing competitive advantage.

O To assess the role of various components of ethical marketing in creating

competitive advantage in the context of UK retail industry.

O To recommend improvements required for the companys current ethical marketing

approach to improve competitive advantage.

1.5 Research questions: The research questions are mentioned below:

What are the key dimensions of ethical marketing strategies?(of Waitrose in

UK)

What are the major components of ethical marketing practices?

How customer equity, trust and loyalty is related and relevant to ethical

marketing?

What are the major components of ethical marketing related to retail industry

in UK?

How ethical marketing practices are related to gain sustainable competitive

advantage for a retailing firm?


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What is the current/general practices related to ethical marketing?

What are the key functions where the companies (mainly in retailing industry)

need improvement to make the practice better?

1.6 Research hypothesis

H0 = the practice of ethical marketing in a company help build sustainable

competitive advantage.

H1 the practice of ethical marketing in a company doesnt help build

competitive advantage.

Chapter 2:Literature review

There are a good number of researches that has been done in this field of ethical

marketing and competitive advantage. There are differences in opinions and

frameworks that has been used in each of the research. However, there are some

similarities among the variables which are studied in relation to this field.

The dynamics of marketing is not all same as it was ten years back. Everyday there

are thousands of brands and new products are getting launched in different parts of

the world (Chatzidakis, 2014). The day after the launched it is getting commoditized.

Therefore finding a competitive advantage over the other products, brands or services

is tougher than any time before. The reasons behind these are many fold. According

to Bodkin and Stevenson, 2006The ethical marketing for the company is helpful for

the overall development and success. That is why this research has been taken into

consideration(Bartels, 2007).

2.1 The concept of Ethical marketing

The transparency, honesty and community sensitivity has been the key focus area of

ethical marketing. The reason is, there are huge debate about the marketing budget

and spending around the world. So, it is obvious, highlighting the importance of

ethics while executing a communication will get highest priority in any marketing

context.


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Ethical marketing refers the process of making marketing decision by using morality

and ethics to gain sustainable market position by thinking broader perspective rather

narrowly individual perspective(Brennan, 1991). Ethical marketing helps to promote

honesty, integrity, frankness, fairness and responsibility among the activities of the

organisation and among the employees(Brennan, 1993). It refers (Budner, 2004) the

general standard of truth of all the activities of the organisation and for the employees

to deal with their jobs and responsibilities.Wentworth (2011) mentioned that sincerity,

honesty, fairness and truthiness are the key elements of ethical marketing which

should be blend with ethics, logic, morality and mutual respect for market

participants. Tatic(2014) indicated that organisation should comply and strictly follow

all the rules, regulations, laws and specific standards which are also part of

implementing ethical marketing that can help to gain competitive advantages.

The ethical marketing is very important in the business field to gain the competitive

advantage. Over all ethical marketing deals with what is right and what is wrong. So

the thing is clear to the marketer that the ethical marketing deals with the activities

which are very right for the customers and the society in the long run(Thompson,

Strickland and Gamble, 2008). Any activity that is done for the persuasion of the

customers and to evoke the customers is very wrong for the company. So these

activities are strictly prohibited in the ethical marketing. The company can claim on

those features and attribute that they have already or they will eventually build this in

the near future. Some examples of the ethical marketing are as follow. The advertising

agencies that made the advertisement cannot claim any kind of false attributes and

moreover they cannot post anything that is harmful for the society(Brati, 2011). The

products which are harmful for the customers that are cannot include in the

advertising or any other communication activities(Thompson, Strickland and Gamble,

2008). Any fraud persuasion of the products is not given in the ethical marketing

activities.Bodkin and Stevenson, 2006 said that If any harm or unintentional loss of

the customers is made then the company will be responsible for the

actions(Chatzidakis, 2014) and they need to pay the full compensation of the total loss

to the customers and make necessary service recovery strategies(Thompson,

Strickland and Gamble, 2008).


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2.2 Different ways of ethical marketing

Ethical marketing is a part of sustainable marketing where the organisation uses logic

and morality in developing and implementing marketing strategies and marketing

decision making(Thompson, Strickland and Gamble, 2008). For designing effective

ethical marketing, an organisation initially can define the ethical marketing, then it

should identify on which activities or part of organisation it can focus.

Implementation part will be done following after this and then cost and benefit

analysis should be done to define its effectiveness in the organisational

activities(Thompson, Strickland and Gamble, 2008). For ethical marketing, an

organisation should focus on different aspects and they are mentioned below:

2.2.1 General standards of truth: Truthiness is the best virtue of all and it must be implemented properly as general

standards to ensure the proper implementation of ethical marketing(Thompson,

Strickland and Gamble, 2008). If truthiness is ensured, proper ethical value can be

developed and maintained which will make the ethical marketing path smooth.

Swanson et. al(1998) stated that it is mandatory for true ethical marketing to ensure

true implementation of true strategies by establishing true truthiness in the marketing

activities(Thompson, Strickland and Gamble, 2008).

The truth can guild the company in the long run and shows the way of developing the

ethical consideration in the company(Thompson, Strickland and Gamble, 2008).

When the company always claim the truth about their products then the customers can

definitely appreciate this and they trust the company. The customers get sure about

the product quality of the company.

2.2.2 Developing ethical values of marketing professionals: Nwachukwu et al.(1997) strongly emphasized that marketing professionals are the

key persons who are assigned to design the marketing strategies, implement them and

evaluate them also(Dabholkar and Kellaris, 1992). So, highest standards of ethical

values is mandatory for them to possess or develop for making efficient and effective

ethical marketing policies and strategies for gaining competitive edge in the


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market(Davidson, 2003). If the professionals are highly ethical, then it is very much

simple to make the ethical marketing strategies(Thompson, Strickland and Gamble,

2008).

2.2.3 Advertising and promotion: Ethical marketing can be best described to(Dabholkar and Kellaris, 1992) the

customers and other stakeholders through its advertising and promotional activities

which can represent the organisations ethical values at fullest level. According to

Boyd and Webb(2008), organisation should follow the rule of fairness in information

and news in advertising and promotion. Accurate information, proper representation,

appropriate elements should be use while advertise and promote the organisation and

its products. Any kind of fraudulent, misleading information, inappropriate elements,

illegal promotion and activities must be avoid for ensuring the ethical marketing in

advertising and promotion(Thompson, Strickland and Gamble, 2008).

Manufacturing and endorsement of products: Chatzidakis (2014) mentioned that

products are the ultimate things with which organisation is dealing with and depends

on. Benefits, market share, organisational success all depend on the products. Ethical

marketing should be designed by focusing importantly on the products that must be

fulfilled proper and promised standards. Chatzidakis (2014) further added that

products are needed to be high quality in nature and should provide the desired

outcomes and performance which can satisfy the buyers need and expectation at the

optimum level by keeping the promised standards at endorsement(Thompson,

Strickland and Gamble, 2008).

2.2.4 Consumers centricity in ethical marketing practice: Consumers are the sole focusing thing at the time of selling products and services and

the sole source of earning profits(Davis, 2002). Consumers expectation, desired and

feelings should be counted for designing the optimum solutions for the problems and

define the proper focusing point of ethical marketing. Luck (2006) defined that

Ethical marketing should be designed according to the consumers choice and

expectation(DOORN, 2008). The organisation should convey its ethics in marketing


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for giving a safe feeling to its customers(DOORN, 2008). The privacy of the

customers must be maintained properly and keep secret and out of reach from other

persons(Thompson, Strickland and Gamble, 2008).

Compliance with regulations and standards: Nwachukwu et al., (1997) emphasized

that for better designing and implementation of ethical marketing, organisation must

follow the regulations and standards for works and products(Editorial, 1995) because

it ensures the proper use of morality and laws in activities(Editorial, 1995). It will

help organisation to reflect ethics in all parts and thus can convey a good feeling of

ethics to its stakeholders (Thompson, Strickland and Gamble, 2008).

2.3Competitive advantage

Competitive advantage is a position(Ferrell and Skinner, 2008) where an organisation

can have some edge over its competitors which can make it more attractive among the

market participants. OShaughnessy(2002)concluded that competitive advantages can

be earned by creating superior values, best products, ethical marketing, good

promotion and advertising, customers satisfaction and anything(Franklin, 2007). For

sustaining in the competitive market, the first and foremost thing for organisation is to

use its resources to create competitive advantages(Fulmer and Conger, 2004) which

will differentiate it from others through unique features which eventually attract and

make customers loyal to the organisation(Laczniak, Lusch and Murphy, 2009).

2.4 Relationship between ethical marketing and competitive advantage

Competitive advantages refer to the positions and opportunities which will keep one

organisation ahead of its rival organisations in terms of products, offers, market

shares or anything(Lapersonne, 2013). Ethical marketing is rationale marketing

decision making process which will promote ethics and morality in marketing

process. Ross(2003) stated that ethical marketing is very much appreciated by the

stakeholders especially by the customers. Ross(2003) also said that if any

organisation can prove its ethical behaviour in marketing customers will attract more

and will be more loyal to them which will create market fame(Gaedeke, Kelley and

Tootelian, 1995) and increase market share that will ultimately give organisation


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competitive advantages over its competitors in the market(Lapersonne, 2013). Thus

ethical marketing can create competitive advantages for organisation(Laczniak, Lusch

and Murphy, 2009).

The first aspect is with the advent of technology it is very easy to replicate and

produce a same type of products. The second aspect is consumers have numerous

choices within a certain category and there is wide variety of price range as

well(Laczniak, Lusch and Murphy, 2009). The third and the foremost important factor

is, innovating something new is not as difficult as it was decades back. Media

marketing has been changed so there are more options to market certain products or

services (Chatzidakis, 2014). It is now easier to start a business in a new geographic

location. There is brick to click model which is been capitalized to pin point the target

customers. All the changes bring a lot of opportunities to find new gap to fit in with

new offerings(Laczniak, Lusch and Murphy, 2009). The ultimate result is room for

innovation is there are gateway is filled up by the new products. Therefore it has

become very critical to build competitive advantage over the competitors. Thus

building and or fending off the differentiation is very important to expand the growth

stage of the product life cycle (Chatzidakis, 2014).

There are many ways to attain competitive advantage for a company. A business set

up in a low-cost geographic location where labor is cheap and sourcing materials is

easier (Lapersonne, 2013) surely enjoy an advantage over the other companies

which are established in more costs incurring infrastructure (Barney and Hesterly,

2006). However, there are many roots from where competitive advantage can add

value to a company as a whole. This value addition can be seen in a product.

Competitive advantage comes from many sources (Chatzidakis, 2014). It can come

through low cost distribution system, finest innovation capacity, technological

advancement and adaptation(Kearns, 2003), strong customer equity and reputation of

the company or from a particular style or way of doing business. This how

competitive advantage can be attained (Barney and Hesterly, 2006).


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Source :(marketing director, 2011)

As already mentioned by (Kellaris, Dahlstrom and Boyle, 1996) and all know,

marketing is completely an inter-connected discipline which has to work in harmony

with the cross functional teams with maximum interaction (Brati, 2011). This nature

of marketing makes it very critical to decide on the key functional parameters of

marketing. However, it matter very less what strategy is working for what company in

which context of the market(Laczniak, Lusch and Murphy, 2009). Key factor drive

the decisive point of business growth is how marketing help build competitive

advantage for a company (Brati, 2011). The evolution of marketing happened this

way for a long time. From production concept, to product concept, from marketing

concept to customer centric marketing(Laczniak, Lusch and Murphy, 2009), and later

from societal marketing to holistic marketing concept -all these practices have been

evolved over time to find the best suited practice of that time which enhance the

business growth(Kleiser et al., 2002) and to sustain for a longer period in the market

(Brati, 2011). Apart from all evolutionary marketing concepts, there were handful

numbers of debates around marketing practices(Kleiser et al., 2002). Therefore, need

to practice ethical marketing(Marta and Singhapakdi, 2005) in all aspects of

marketing functions in a company gets heard more loudly than any time before

(Ferrell and Skinner, 2008).


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The key rationale behind practicing ethical marketing is(Laczniak, Lusch and

Murphy, 2009) to benefit the customers, the society and the other internal and

external stakeholders(Lapersonne, 2013). At the same time, fostering the business

growth and becoming sustainable in a certain market(Laczniak, Lusch and Murphy,

2009).

The stakeholders of marketing are many(O'Shaughnessy, 2002) and the influences of

external stakeholders of a company impact the total business process

strongly(O'Shaughnessy, 2002). There are community activist about healthy food,

environmental pollution, delivering right quality, protecting natural resources, non-

discriminatory practices etc(Palmer, 2005). Stakeholders related to all these aspects

influence marketing practices as a whole (Ferrell and Skinner, 2008).. Therefore,

practicing ethical marketing in all areas from product development, to developing

brand and marketing communication it is very vital to practice ethics and moral

obligations(Petryna, Lakoff and Kleinman, 2006). Many a time there are set ethical

regulation for companies which are operating in different countries (Ferrell and

Skinner, 2008). These companies practice ethical sourcing, new product development

and communications in as spheres(Rawwas, Vitell and Festervand, 1994). The

outcome of following set ethical rules and regulations yield many benefits for a

company. Achieving competitive advantage is one of them(Reidenbach and Robin,

1991).

American Marketing Association (AMA) has developed this model of ethical

marketing.


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Figure- Model of ethical marketing

Source- Thompson, Strickland and Gamble, 2008

This model explains the total process of gaining competitive advantage through

ethical marketing(Laczniak, Lusch and Murphy, 2009). It has started from the social

and cultural environment(Siedel and Haapio, 2010). Then it considers the ethical

dilemma, individual decision making, corporate policy and opportunity and then it has

ended y evaluating the behavior which are ethical and unethical.

Competitive advantage from ethical marketing practices has different

forms(Singhapakdi, 2004). For instance, a company which produces fruit juices can

build its marketing communications saying (Ferrell and Skinner, 2008). Hundred

percent natural juices(Singhapakdi, 2004). However, in reality if the formulation and

processing of fruits downplay the natural quality and nutritional value of that fruit

brand(Thompson, Strickland and Gamble, 2008), then it is definitely not an ethical


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practice(Laczniak, Lusch and Murphy, 2009). So it is very important to manoeuvre

the communication as well as the other marketing mix of a company or for a brand

very carefully(Twedt, 2003). In other case, delivering the right values both in terms of

tangible and intangible is a key to maintain strong customer equity which later

provides competitive advantage after a certain period of time(Van Hoose and Kottler,

2007). Based on the ethical marketing concept there are many companies which are

enjoying strong competitive advantage (Franklin, 2007). For example Wholefood,

ToysRus, Catterpillar, HSBC bank who directly talk about ethical marketing practices

in their product design and brand communications(Wheeler, 1995).

On the other hand, there are negative consequences of not practicing ethical

marketing(Fulmer and Conger, 2004). In recent years there was big buzz around the

world about sourcing low cost apparels from the least developing countries(Fulmer

and Conger, 2004). There are brands like GAP, Nike, Wallmart, JCPenny which are

sourcing cloths from Asian countries like Bangladesh, India, China and

Vietnam(Williams and Aitken, 2011). In all these countries labor is cheap and it is

reported that labor are exploited(Fulmer and Conger, 2004). As a consequence of

these, in many parts of the United States and European countries(Fulmer and Conger,

2004), consumers boycott the some apparel brands due to not paying right value and

not taking proper action against the exploitation of cheap labor. So, this is one of a

result of not obliging and practicing the ethical marketing(Fulmer and Conger, 2004).

A firm can achieve competitive advantage over the same type of companies i.e.

apparel brands if they start practicing the ethical sourcing and marketing in their

company(Fulmer and Conger, 2004).

Ethical marketing can be implemented by company of all size and type. This practice

helps to gain added value to the companys way of running business

smoothly(Laczniak, Lusch and Murphy, 2009). There are many practices which are

not maintained due to the context of the business environment and also, considering

the extent of stakeholders influence(Laczniak, Lusch and Murphy, 2009). Many

theorists of marketing urge marketing practitioner to keep the ethical ground right in

marketing mix. From new product development to pricing, ethical consideration make

the firm stronger in terms of valuing its customers(Wong and Taylor, 2000). While

developing new product, sourcing raw materials at a fair price without harming the


20

other parties and is expected by the stakeholders(Laczniak, Lusch and Murphy, 2009).

Regarding pricing, the ethical ground is to maintain the value that customer expects

from a certain price points(Fulmer and Conger, 2004). If there is mismatch in between

the pricing and the products a company offer then it will not be able to maintain the

sustainable competitive advantage in a market. However, there are many

controversies about maintaining a good-value pricing for the companies which

operates multiple countries (Managing knowledge for competitive advantage, 2000).

In a developing country where the economy is inflationary then pricing strategy of a

company should be adjusted with the inflation and the disposable income of the

people of that country(Thompson, Strickland and Gamble, 2008). About distribution

and place decision of many companies, there are ethical aspects which directly impact

the practice of ethical marketing by that very firm(Wong and Taylor, 2000). TATA

motors in India faced same time of challenges from the environmentalist and the

community activist for taking the land of the farmers to build the factory in West

Bengal(Wong and Taylor, 2000). So, even if there is feasibility and high opportunity

of a product or brand get established in a certain region but has the likelihood to

impact the environment negatively, should always be considered(Managing

knowledge for competitive advantage, 2000). Finally the big part communication

strategy for any brand or for the company as whole is vital. Because this is how

people do perceive about the company(Wong and Taylor, 2000). Communication

which targets children, women, and religion be well thought and proper planned so

that it didnt provoke anything discriminatory or harmful for the same people it is

targeted(Thompson, Strickland and Gamble, 2008).

Honesty, Responsibility and Fairness are the three major pillar ethical marketing

practice considers(Tatic, 2014). These three are used and maintained perfect in sync

in all aspect of marketing mix and product development(Thompson, Strickland and

Gamble, 2008). Also, considering STP process i.e. segmentation, targeting and

positioning honesty, responsibility and fairness(Thompson, Strickland and Gamble,

2008) is manoeuvred by the companies who has substantial and sustainable

competitive advantage(Managing knowledge for competitive advantage, 2000). The

aftermath of maintaining this ethical marketing is many. It helps increase the trust of

the customers toward the company(Thompson, Strickland and Gamble, 2008). And

then the overall shareholder value of the firm goes up by this. Any firm show-case


21

their ethical practices in marketing communication gives a sure advantage and

attention of the concerned community influencers and stakeholders(Thompson,

Strickland and Gamble, 2008). Sometime a competitive advantage which is built by

the company people and resources for a long time gets ruined only because of not

abiding the ethical principles of marketing(Wong and Taylor, 2000). So, it is always

better to enhance the shareholder value and customer equity of by practicing the

principles Honesty, Fairness and Responsibility(Managing knowledge for

competitive advantage, 2000).

As like all other marketing disciplines there is no concrete and conclusive models for

defining and identifying the standard practice of ethical marketing to achieve

competitive advantage(Managing knowledge for competitive advantage, 2000). Also,

these principles and models to achieve competitive advantage may not be pertinent

for all types of companies across industries(Siedel and Haapio, 2010). Therefore, one

thing is obvious that there is ample opportunity to improvise and refurbish the concept

to a great extent(Managing knowledge for competitive advantage, 2000).

Source: Tutor2u.net

Also, these are few key classic variables of competitive advantage which are

interrelated with the ethical marketing practices as well. Bringing differentiation, cost


22

leadership are more pertinent with the retailing firm. Thus these are aspect which are

taken in to consideration to develop the final study framework of this research.

In sum, marketing these days is far challenging due to the advent of technology and

too many me-too brands out in the market place(Managing knowledge for competitive

advantage, 2000). Therefore, it is critical to ensure that a firm has competitive

advantage over the other firms. This competitive advantage can come from different

sources for different companies(Singhapakdi, 2004). As marketing is a key function

of the company thus it is interrelated with this aspect. However, marketing practices

are many and it has evolved as per the requirement of the time(Wong and Taylor,

2000). Ethical marketing is one of the practices which are triggered by the many

external stakeholders of the society(Managing knowledge for competitive advantage,

2000). Not all firms are maintaining and showcasing this practice strongly and

equally(Tatic, 2014). Therefore, for some companies it has become a vital tool to

practice ethical marketing to achieve competitive advantage(Tatic, 2014). The main

rationale behind this is it is win-win for the company and the customers(Siedel and

Haapio, 2010). It builds customer equity for the firm, increase the sustainability and

build trust toward the company(Managing knowledge for competitive advantage,

2000).

2.5 Conceptual framework In following figure, left side shows the independent variables of this research whether

dependent variable is given on the right side. This research is done by analysis the

relationship between these variables(O'Shaughnessy, 2002).


23

Figure: Research paradigm

Source: Selfmade

The marketing strategies are primarily responsible for the gaining of the competitive

advantages(Siedel and Haapio, 2010). In the marketing strategy there involves green

marketing, corrective advertising, development of the code of ethics, right and true

information in the promotional activities and lastly the ethical values of the marketing

professionals(Williams and Aitken, 2011). All leads to positive effect on the mind of

the consumer. In the marketing strategies the ethical standards are added and made

these strategies into marketing strategies(O'Shaughnessy, 2002). After that the ethical

marketing policy framework needed to be developed and thenthe effectiveness of the

ethical marketing policy is measured. The drawbacks of the ethical marketing are

removed and building a relationship with the ethical marketing and competitive

advantages(Siedel and Haapio, 2010). By the ethical marketing practices company

can easily get a competitive advantage over its competitors(Williams and Aitken,

More customer centricity Equity of the brands

Transparency to external stakeholders

By bringing the efficiency in marketing functions By developing trust among the stakeholders

Maintaining on-going effort as a corporate citizen


24

2011). So that competitive advantage is link with the ethical marketing and draw a

positive bandings like more the ethical marketing activities more the sales of the

company(Williams and Aitken, 2011). Lastly a positive effect on the company is got

from the ethical marketing practice. So this is how the research is fully designed and

the overall view of the total research is dependent on the competitive

advantage(O'Shaughnessy, 2002).


25

Chapter 3: Methodology of the research In this chapter the researcher has shown the overall directions of the research that

guided in the research.

3.1 Philosophy of the research

This research is based on the positivism which is more on identifying empirical

evidences and current practices around ethical marketing. This approach is followed

in this study because, there are diverse norms and nuances but no established process

of following the guidelines of ethical marketing practices.

Research philosophy refers the perception of the researcher about the research, usages

and also the output of the research (Booth, Colomb and Williams, 1995). The research

philosophy is the view of the researcher that is going to use in the research. Due to

lack of prior experience and being an academic, assuming the knowledge parameter is

not wise for this researcher and research (Booth, Colomb and Williams, 1995). On the

other hand, without believing actual data but assuming actual data, it was not possible

to carry on a full reliable research. So, positivism philosophy was appropriate for this

situation. It would enable the research to avoid assuming any variables and to use

knowledge parameter which can bar the research. Ethical marketing is the parameter

of the measurement of the competitive advantages. That why the positivism

philosophy had been used in this research (Welman et al., 2005).

3.2Approach of the research

There are two types of research approach, one is deductive which is used to conduct

investigative research and other is inductive research used for conducting research

where theory needed to be formulated (Hamersveld and Bont, 2007). This research is

about ethical marketing and competitive advantages where the researcher did not find

it important that theories need to be formulated. Already established theories can be

used to study the current situation properly (Booth, Colomb and Williams, 1995). So,

deductive approach is best suited for this research. The researcher followed the

following steps of deductive approach:

Reviewing theory related to ethical marketing and competitive advantages


26

Formulate researchs questions, objectives and hypotheses

Observing the actual situation prevails in the market

Analyse data and provide needed recommendation

This research is mostly based on deductive approach where the hypothesis is

constructed on the basis of a generalist statement through observation and study of the

previous research.

Figure: Research Approaches

Source: Anusree, 2014.

3.3 Research Strategy: Research strategy is the means by which the research is conducted for getting the

final results (Gobo, 2011). There are various tactics that were used in this report. In

the experiments some samples were selected and an artificial environment was

created and after that the samples were tasted in that environment This experiment is

sometimes give false result and the research result may not be representative. Survey

was the way to conduct the research (International Journal of Social Research

Methodology: Theory & Practice, 2012). Case study would be another technique to

get the information of the research. This technique was not widely used in this

research (Welman et al., 2005).

In the survey a group of respondents were selected in the research and they were

selected by the judgemental basis of the interviewers. After that the researcher gave

them a questionnaire and the respondents were filled those in terms of their

experience or judgement. The answers were analysed for the research to get the


27

results. In this study survey approach is taken to collect the data from the sample unit

if the study.

3.4 Type of the investigation/Design

Source- (Welman et al., 2005)

There are many types of research that a researcher could conduct a research. Action

oriented, survey, historical and so on (6 and Bellamy, 2012). Ethical marketing

policies and its effectiveness analysed and explored by researcher for getting the brief

idea about the impacts on the creating or gaining competitive advantages(Wardle,

2002). For the nature of the research, it could be best suited with the condition and

formula of exploratory or investigative research(Booth, Colomb and Williams, 1995).

So, it was comfortable for the researcher to use quantitative approach and data for this

research by collecting numerical information and statistical data to run the research(6

and Bellamy, 2012). Therefore, it could be said that this research is quantitative in

nature and numerical data collected by the researcher through survey for this

research(Bellamy, 2012).The researcher used experimental research as the researcher


28

used different numerical data for finding the effect of ethical marketing on

competitive advantages(Booth, Colomb and Williams, 1995). Besides that the

researcher used positivism research philosophy for which he needed to experiment

whether all the variables of ethical marketing had effect on the business of the

competitive advantages(Booth, Colomb and Williams, 1995).

This study is more on a quantitative exploration while some analysis is done based on

the primary data collected from the respondents.

3.5 Data collection methods

There were two types of data; one is primary and other is secondary. Primary data are

the data that are not collected before and it is collected for the research or specific

purpose (Welman et al., 2005). On the other hand the secondary data are the data

which are available in many sources and collected before by someone (Welman et al.,

2005). In this research, researcher used primary data only to ensure the accuracy of

the data and reliability also(International Journal of Social Research Methodology:

Theory & Practice, 2012). The primary data were collected mainly through

questionnaire which were done through online chat, social networking sites like-

facebook, twitter, google+ etc. Besides, several other media were used to collect

information, like- direct interview, survey, online survey, brainstorming, websites,

teleconferencing, personal communication, sales people interview etc(International

Journal of Social Research Methodology: Theory & Practice, 2012).

3.6 Sampling method

Sampling refers to the process of selecting some respondents from the whole

population because it is not possible to investigate all the population rather few can be

chosen as respondents (Brenkert, 2008). For academic research, sampling is

mandatory because of limitation of money and time(Welman et al., 2005). Sampling

can be done in two methods, one is probability method and another is non-probability

method(International Journal of Social Research Methodology: Theory & Practice,

2012). Non probability method refers the process of collecting samples through using

different criteria like- demographic, geographic and other restriction. There are four

bases of non-probability sampling, they are- judgment sampling, quota sampling,


29

convenient sampling and extensive sampling(Welman et al., 2005). Probability

sampling method refers the process of selecting the samples randomly and uses them

as respondents.

Source-(Welman et al., 2005)

Researcher used probability sampling method for this research and selected sample

randomly from its customer base where each customer was given equal weight

regardless of gender and age(Welman et al., 2005). The sample size was 100 and they

were surveyed through online ass the online medium was the best option to get the

information of this research(International Journal of Social Research Methodology:

Theory & Practice, 2012).

Population definition = Regular Customers of the retail shops in UK

Total sample = 100

Sample unit: Both Male and Female

A wide range of age spread is maintained across the sample.

3.7 Data analysis Data analysis is the most important part in the research methodology(Jha, 2008).

Without proper analysis of the data the researcher could not able to interpret the data


30

properly(International Journal of Social Research Methodology: Theory & Practice,

2012). So the researcher was very careful in the data analysis part to avoid the

possible error of the data analysis(Jha, 2008). To asses and analysis the numeric data,

SPSS, E-view, MS excel and Strata were used by the researcher. By using mean,

mode, ANOVA, correlation, regression, the researcher had showed high quality

graphical and analytical presentation(Jha, 2008). The researcher used several models,

like- Cronbachs alpha, for ensuring the reliability of the research. Higher alpha set

data used for better quality and ensure reliability while extremist data were avoided to

ensure proper quality(International Journal of Social Research Methodology: Theory

& Practice, 2012).

3.8 Ethical issues It was needed to maintain proper ethics and logic and morality for the researcher to

make the research worthy and appropriate(Jha, 2008). The privacy of the respondents

maintained properly. Mental and physical pressures were not put on the

respondents(Welman et al., 2005). Manipulation of data or any kind monetary facility

could not provide to gain favourable information(Jha, 2008). Respondents must be

selected randomly and any intention selected must be avoided. The information and

research outcomes could only use for academic purposes(Samuels, Biddle and

Emmett, 2009). As the research was itself deal with the ethical consideration so the

research study is completely based on the ethical standards(Scruggs and Mastropieri,

2006). Any kind of illegal procedure was not used in this research study to get the

information. Also the analysis of the data was based on totally non biased view of the

researcher(Samuels, Biddle and Emmett, 2009).

3.9 Accessibility issues It is to be agreed that research faced some accessibility problems; these were main

limitation to get appropriate information from respondents(Scruggs and Mastropieri,

2006). The respondents might not give full and appropriate information(Samuels,

Biddle and Emmett, 2009). Online reach out to the respondents could take enough

time or can irritate the respondents also. Lack of trust might exist between the

researcher and respondents in given confidential information(Samuels, Biddle and

Emmett, 2009).


31

As there were higher possibilities of these problems, the probability was not

little(Scruggs and Mastropieri, 2006). So, the researcher was very much precautious

of it and he focused on creating appropriate approach to get information(Samuels,

Biddle and Emmett, 2009).

3.10 Limitations

Limitations Impact/reason

Time The study of ethical marketing related data

and its impacts on competitive advantages

could take long time which could exceed the

research time.

Sample size Sample size was one of the main limitations

because 100 samples might not represent the

true scenario. Large sample produced more

accurate probabilities and realistic situation.

Fund Enough funds were needed for this research

because of its ways of collecting data and

information through teleconferencing, video

calling, online. Extensive research could be

facilitated through healthy and enough fund.

Research type Quantitative data was used to do this research

because of lack of related data and

inexperience of the researcher. Combined

research of qualitative and quantitative data

could increase the reliability, accuracy of the

research.


32

3.11 Anticipated findings

Anticipation Reason

Relationship of ethical marketing and

competitive advantages of the company

Literature suggests that the researchers found

strong relationship between ethical marketing

and competitive advantages.

Effective ethical marketing strategies can

create the competitive advantages for the

company

The more the customers would be satisfied

the more was the visits in the stores and oral

marketing and viral marketing would

increase the value of the brand

The stronger and efficient ethical marketing

strategies were the more and greater

competitive advantages would be created for

the company.

Chapter4: Result and Discussion

4.1 Result

This chapter analyses the sample survey result found from providing each

respondents (customers of Waitrose) with a questioner containing some

relevant questions on ethical marketing of Waitrose and how do they respond to

the company in terms of competitive advantage the company has. The researcher

has analysed the data from policies of ethical marketing and competitive

advantages and presented them in comprehensive form with graphs, table and

other figures where necessary.

4.1.1 Demographic variables

The following figures show the demographical variations of the respondents in

this paper. There were a total of 100 respondents where male and female were


33

respectively 67 and 33. The age variable shows that the age group of 31-39

participated most in the study as they are the major customer group of Waitrose.

Fulltime job holders were the highest participants in the study which numbers as

32 persons.

Table 1: Demographic variables

Gender

Frequency Percent

Male 67 0.67

Female 33 0.33

Total 100 1

Age

Frequency Percent

18- 30 25 0.25

31- 39 32 0.32

40- 49 13 0.13

50- 59 16 0.16

Over 60 14 0.14

Total 100 1

Marital Status

Frequency Percent

Married 46 0.46

Unmarried 54 0.54

Total 100 1

Employment Status

Frequency Percent

Full-time employment 32 0.32

Part-time employment 23 0.23

Student 13 0.13

Unemployed 7 0.07

Housewife/husband 12 0.12

Retired 13 0.13


34

Total 100 1

Income

Frequency Percent

Below 10000 2 0.02

10000- 15000 18 0.18

15001- 20000 23 0.23

20001- 25000 32 0.32

25001- 30000 10 0.1

30001- 40000 9 0.09

Above 40000 6 0.06

Total 100 1

4.1.2 Cronbachs Alpha

The cronbachs Alpha test basically tests the internal consistency of the

respondents in a study. It indicates the level of consistency in the variables by

expressing as a range of 0 to 1. Normally point greater than Alpha ().7 is thought

to be standard. Here in this study, the following figures show that the responses

from all the fields have a sound level of internal consistency and reliability where

the responses of positive effects on the consumers have highest level of

consistency and responses from Comply with regulation and standards and Right

and true information in Promotion have a slight lower consistency then the

standard level of .7.

Table 2: Cronbachs Alpha

Alpha()

Green Marketing 0.89

Development of code of ethics 0.84

Ethical value of marketing

profession

0.74

Comply with regulation and

standards

0.65

Right and true information in 0.67


35

Promotion

Corrective Advertising 0.77

Positive Effects on the Consumers 0.91

Competitive Advantage 0.83

4.1.3 Green Marketing (GM)

Waitrose strongly follows green marketing policy in its marketing policy. The

following table shows the result of the study where the researcher asked the

customers to answer the questions regarding the green marketing strategies and

competitive strategies of Waitrose. The table clearly shows that overall

customers strongly agreed with the fact that Waitrose follows green marketing

strategies and it attracts the customers.

Table 3: Ethical Marketing Strategies (EMS)

GM1 GM2 GM3

Strongly Disagree 5 2 3

Somewhat Disagree 2 3 6

Neutral 12 10 11

Somewhat Agree 36 35 34

Strongly Agree 45 50 46

Mean 4.9 4.8 4.69

Median 4 4 4

Mode 4.5 4.6 4.3


36

Figure 1: GM (Question one)

On the other hand figure 1 shows that 45% customers strongly agree that

Waitrose has effective green marketing policy.

Figure 2: GM (Question Two)

Figure 2 shows that 50% of the customers thinks that Waitrose has separate

management body for green marketing where 35% somewhat agrees with the

statement.

5%2%12%

36%

45%

GM1

Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree

2%3%10%

35%

50%

GM2



37

Figure 3: GM (Question Three)

Figure 3 shows that 46% of the customers of Waitrose believe that green

marketing attract more customers to Waitrose where 34% are also to a great

extent positive with the statement and only minor group of customers (3%)

strongly disagree with it. So, it seems that green marketing considered as

effective to the customers because they give positive attributes to it.

4.1.4 Development of code of ethics (DCE)

Waitrose focuses on Development of code of ethics (DCE) and from the survey of

this study it came out that almost all the customers believe that Waitrose has

strong code of ethics and has strong management team for it. The statistics of

average mean, media and mode shows that it has average result which are more

than 4 in every filed.

Table 4: Development of code of ethics (DCE)

DCE1 DCE2 DCE3



Neutral 13 15 14



3% 6%

11%

34%

46%

GM3



38

Mean 4.2 4.3 4.6

Median 4 4 4

Mode 4.3 4.1 4.25

Figure 4: Development of code of ethics (DCE)

Figure 4 shows that on an average 30 to 35 customers believe that Waitrose has

developed code of ethics for conducting business, regularly updates the ethical

marketing strategies according to the profession code of ethics and provides

regular training and developed separate management team for updating and

developing new code of ethics. Where, only 2 to 5 customers strongly disagree

with that. So, the researcher can say that code of ethics is also attributed

positively by the cusotmers.

4.1.5 Ethical value of marketing profession (EVMP)

0 5 10 15 20 25 30 35 40

Strongly Disagree

Somewhat Disagree

Neutral

Somewhat Agree

Strongly Agree

Development of code of ethics (DCE)

DCE3 DCE2 DCE1


39

Ethical value of marketing profession (EVMP) is always a key consideration in

ethical marketing strategies of Waitrose. Waitrose focuses on issues which

creates ethical value to marketing profession. The result of the survey as

presented in table 5 shows that customers of Waitrose to some extent agree that

Waitrose emphasizes on this issue. The mean, median and mode exhibits result

close to 4 which suggest that though they are not strongly in favour of it but they

on an average (greater than 3) agree with this issue.

Table 5: Ethical value of marketing profession (EVMP)

EVMP1 EVMP2 EVMP3



Neutral 25 29 27



Mean 3.8 3.9 4.2

Median 3.5 3.5 4

Mode 3.5 3.6 3.9


40

Figure 5: EVMP (Question One)

Figure 5 shows that more 50% customers agree that Waitroses corporate bodies

take necessary steps for evaluating the ethical value of marketing profession

where a considerable portion remained neutral on this issue as they dont see

any significant point regarding this acts of Waitrose.

Figure 6: EVMP (Question Two)

Figure 6 shows that almost 40% customers believe that Regular training

programs are held for improving the ethical value of the professions of the

12%

14%

25%24%

25%

EVMP1

Strongly

Disagree

15%

Somewhat

Disagree

9%

Neutral

29%

Somewhat

Agree

23%

Strongly Agree

24%

EVMP2


41

employees of Waitrose where again considerable portion remained neutral

(29%) on this issue.

Figure 7: EVMP (Question Three)

Figure 7 shows that 50% of the customers surveyed believe that Major

investment is needed for the employees of Waitrose for the increment of the

marketing profession ethical values and a minor (8%) portion strongly disagree

with that as they think major investment is not necessary in this case. So, the

researcher can infer that ethical value of professionals at Waitrose is considered

to be somewhat effective for its honesty and integrity to customers.

4.1.6 Comply with regulation and standards (CRS)

Waitrose complies with regulations and standards in case of marketing activities

it initiates. The following table shows that the mean result go in favour of this as

customers on an average somewhat agree with that. The mode and median (3)

however shows that customers agree with that but most of the customers were

central to neutral.

Strongly

Disagree

8%Somewhat

Disagree

15%

Neutral

27%Somewhat

Agree

24%

Strongly Agree

26%

EVMP3


42

Table 6: Comply with regulation and standards (CRS)

CRS1 CRS2 CRS3



Neutral 24 26 24



Mean 3.9 3.6 3.5

Median 3 3 3

Mode 3 3 3.5

Figure 8: Comply with regulation and standards (CRS)

Figure 8 on the other hand, represents that 30 to 35 % customers believe that

Waitrose complies with the code and conducts of ethical values and ethical

marketing, Separate inspection teams are developed by it for observing the

compliance with the ethical regulation and standards & so they are satisfied with

the ethical values of my company and its compliance with the ethical rules and

0

5

10

15

20

25

30

35

40

StronglyDisagree

SomewhatDisagree

Neutral SomewhatAgree

Strongly Agree

9

36

24

6

25

6

32

26

10

26

13

24 24

10

29

Comply with regulation and standards (CRS)

CRS1 CRS2 CRS3


43

regulation. On the other hand, 6 to 13% customers strongly disagree with that.

So, the researcher can infer that regulation and standard compliance are not

working on customers as they dont find it sufficient.

4.1.7 Right and true information in Promotion (RTIP)

Right and true information in promotion is one of the essential tools in ethical

marketing. Table 7 exhibits an overall picture of the responses regarding this

issue of Waitrose. The mean and median result in numeric term 3 represents

that on an average all the customers somewhat agree that Waitrose adheres to

the concept of Right and true information in Promotion.

Table 7: Right and true information in Promotion (RTIP)

Right and true information in Promotion (RTIP)

Strongly Disagree 4

Somewhat disagree 31

Neither agree nor disagree 30

Somewhat agree 12

Strongly Agree 23

Total Number of Respondents 100

Mean 3

Mode 3


44

Figure 9: Right and true information in Promotion (RTIP)

Figure 9 represents that 30% customers of Waitrose believe that it provides true

information at the time of promotion and Ethical values and principles are

maintained for promotion. On the other hand those who somewhat agree,

remain neutral, somewhat disagree and strongly disagree are respectively 12%,

23%, 31% and 2% with this issue. So, it seems that customers are happy with #s

truthfulness in promotion because they find very little fictitious facts in its

promotion.

4.1.8 Corrective Advertising

Table 8 shows the mean result as 2.9 of responses on corrective advertising. It

indicates customers are neutral to this issue of Waitrose.

Table 8: Corrective Advertising

Corrective Advertising

Strongly Disagree 30

Somewhat disagree 43


0%4%

31%

30%

12%

23%

Right and true information in Promotion

(RTIP)Strongly Disagree

Somewhat disagree

Neither agree nor disagree

Somewhat agree

Strongly Agree


45

Somewhat agree 6

Strongly Agree 9


Mean 2.9

Mode 3

Figure 10: Corrective Advertising

However figure 10 shows that a large portion of the customers somewhat disagree

(43%) with this issue which indicates weakness of Waitrose in this area of ethical

marketing.

4.1.9 Positive Effects on the Consumers (PEC)

Table 9 shows that mean result as 4.8 on Positive Effects on the Consumers

(PEC) indicating that customers are strongly positive that there is Positive

Effects of ethical marketing on the Consumers (PEC).

Table 9: Positive Effects on the Consumers (PEC)

Positive Effects on the Consumers (PEC)

0 5 10 15 20 25 30 35 40 45

STRONGLY DISAGREE

SOMEWHAT DISAGREE

NEITHER AGREE NOR DISAGREE

SOMEWHAT AGREE

STRONGLY AGREE

30

43

12

6

9

Corrective Advertising


46

Strongly Disagree 3

Somewhat disagree 7


Somewhat agree 32

Strongly Agree 43


Mean 4.8

Mode 4.5

Figure 11: Positive Effects on the Consumers (PEC)

4.1.10 Competitive Advantage

Now what extent the company receives competitive advantage has been

illustrated by the following table and figure. Table 10 shows that Competitive

advantage takes place in Waitrose through the interactive policies and strategies

Waitrose regularly takes different strategies for the increment of the competitive

Strongly

Disagree

Somewhat

disagree

Neither agree

nor disagree

Somewhat

agree

Strongly Agree

37

15

32

43

POSITIVE EFFECTS ON THE

CONSUMERS (PEC)


47

advantages over its competitors. Result of the averages indicates strong

agreement by the customers on this issue.

Table 10: Competitive Advantage

Competitive

Advantage1

Competitive

Advantage2

Competitive

Advantage3

Strongly

Disagree

7 5 3

Somewhat

Disagree

15 20 12

Neutral 5 12 4

Somewhat

Agree

34 25 36


Mean 4.89 4.9 4.56

Median 4 4 4

Mode 4.9 4.8 4.7

Figure 12: Competitive Advantage (Question One)

7, 7%

15, 15%5, 5%

34, 34%

39, 39%

Competitive Advantage1

Strongly Disagree Somewhat Disagree Neutral

Somewhat Agree Strongly Agree


48

Figure 13: Competitive Advantage (Question Two)

Figure 14: Competitive Advantage (Question Three)

4.1.11 Correlation Analysis

Now its time to see how much intensive is the relation between the elements of

ethical marketing and between competitive advantages. Table 11 shows that GM

(green marketing) and CRS are positively correlated (.94) which means increase

5, 5%

20, 20%

12, 12%

25, 25%

38, 38%




3, 3% 12, 12%

4, 4%

36, 36%

45, 45%





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in GM increases the CRS too! However in case relationship between competitive

advantages and other elements of ethical marketing the researcher finds that

increase in GM increases the competitive advantages for Waitrose as there is

strong positive correlation (.90). Apart from that all other elements (CRS, DCE,

EVMP, RTIP, Corrective Advertising and PEC) are positively correlated with

competitive advantages for Waitrose.

Table 11: Correlation Analysis

Correlations Matrix

CRS GM DCE EVMP RTIP Corrective

Advertising

PEC

CRS 1.00

GM 0.94 1.00

DCE 0.00 0.00 1.00

EVMP 0.57 0.00 0.19 1.00

RTIP 0.56 0.87 0.58 0.45 1.00

Corrective

Advertising

0.59 0.78 0.87 0.77 0.89 1.00

PEC 0.74 0.56 0.67 0.78 0.80 0.45 1.00

Competitive

Advantage

0.61 0.90 0.82 0.67 0.60 0.58 0.45

**. Correlation is significant at the 0.01 level (2-tailed).

4.1.12 Regression Analysis

A) Regression for the dependent variable Positive Effects on the Consumers


50

Table 12: Model Summary for Positive Effects on the consumers

Model Summary

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

1 0.679 0.660 0.559 0.602

a. Predictors: (Constant), CRS, GM, DCE, EVMP, RTIP, Corrective Advertising

Here the regression model summary where the dependent variable is positive

Effects on the Consumers shows R square is .660. The result indicates that in

case of ethical marketing of Waitrose it has 66% the Positive Effects on the

consumers of Waitrose and the effect is significant for # .

Table 13: Coefficients for Positive effects on the consumers

Coefficients

Model Un-

standardized

Coefficients

Standar

dized

Coefficie

nts

t Sig.

Std. Error Beta

1 (Constant) 4.737 0.614 7.711 0.000

CRS -0.047 0.070 0.802 -0.677 0.499

GM 0.180 0.061 0.586 2.963 0.003

DCE -0.009 0.057 0.113 -0.151 0.880

EVMP -0.026 0.059 0.726 -0.433 0.665

RTIP 0.078 0.137 0.649 0.570 0.570

Corrective

Advertising

0.95 0.12 0.36 -1.23 0.22

a. Dependent Variable: Positive Effects on the Consumers

Table 13 containing coefficient matrix for the elements of ethical marketing with

dependent variable Positive Effects on the Consumers shows that almost all the

elements of ethical marketing have Positive Effects on the Consumers where CRS


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has higher degree of influence 80.2%) where the rest are as presented

respectively 58.6%, 11.3%, 72.6%, 64.9%, 36% under Standardized Coefficients

column.

B) Regression for the dependent variable Competitive advantage

Table 14: Model summary for Competitive advantage

Model Summary

Model R R

Square

Adjusted

R Square

Std. Error of

the Estimate

1 0.910 0.858 0.846 0.737

a. Predictors: (Constant), CRS, GM, DCE, EVMP, RTIP, Corrective Advertising

Here the regression model summary where the dependent variable is positive

Effects on the Consumers shows R square is .858. The result indicates that in

case of ethical marketing of Waitrose it affects 85.8% of the competitive

advantages Waitrose has. So, the researcher can infer that ethical marketing is

controlling the direction of its competitive advantages greatly.

Table 15: Coefficients for Competitive advantage

Coefficients

Model Un-

standardized

Coefficients

Std.

Error

Standardized

Coefficients

t Sig.

1 (Constant) 7.12 1.22 5.83 0.00

CRS 0.99 0.14 0.92 0.57 0.57

GM 0.95 0.12 0.87 -1.23 0.22

DCE 0.44 0.10 0.73 -1.61 0.11


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EVMP -0.162 0.101 0.644 -1.609 0.11

1

RTIP -0.188 0.105 0.543 -1.802 0.07

5

Corrective

Advertising

-0.040 0.129 0.237 -0.313 0.75

5

a. Dependent Variable: Competitive Advantage

Table 15 containing coefficient matrix for the elements of ethical marketing with

dependent variable Competitive Advantage shows that almost all the elements

of ethical marketing have Positive Effects on the Competitive Advantage of

Waitrose where CRS has higher degree of influence (92%) and the rest are as

presented respectively 87%, 73%, 63% and 23% under Standardized

Coefficients column.

4.2 Discussion In this chapter the researcher has made an effort to analyze and discuss the result of

the study in a comprehensive way. The researcher has made a thorough discussion on

how the ethical marketing tools are working for competitive advantages for Waitrose

and made comparison with previous study in this field with necessary references

relevant in each area.

4.

ethical marketing

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