U P P S A L A U N I V E R S I T E T Department of Business Studies

Business Administration D-level Master Thesis 15 credits, Spring 2011

2011-06-03

Socially Desirable Fast Moving Consumer Goods

A L i tera ture Rev iew on How To Decrease the Gap Between Intention & Purchase Behavior Through Marketing

 

 

 

 

 

 

Authors:

Mikael Forsberg Sara-Maria Löfvenberg

Tutor: Susanne Åberg

 

  2  

Abstract

Authors: Mikael Forsberg and Sara-Maria Löfvenberg Tutor: Susanne Åberg Title: Socially Desirable Fast Moving Consumer Goods – A Literature Review on How To

Decrease the Gap Between Intention & Purchase Behavior Through Marketing

Keywords Branding, Consumer Behavior, Consumer Value Creation, Decision-making, Differentiation, Eco, Ecological, Environmentally Conscious Behavior, Fast Moving Consumer Goods (FMCG), Green Consumer, Green Marketing, In-store marketing, Marketing, Organic, Purchase decision, Socially Desirable, Value Creation.

Background and Problem Consumers today are more environmentally conscious than ever. However, it has been found that there is a gap between the consumer’s intention and actual purchase when it comes to products that there is a social pressure to buy for environmental reasons. The potential for the socially desirable segment is estimated to have potential, but growth seems to be slow. It has been stated that until now, there is not enough research done that take a holistic perspective including several fields of marketing. There is a need to review and combine existing literature in various fields of marketing to investigate how the gap can be decreased and sales increased.

Purpose The purpose of this thesis is to review and combine existing literature in the fields of consumer value creation, decision-making and in-store marketing. By doing so the authors of this thesis aim to present a theoretical model on how producers of socially desirable FMCG can decrease the gap between the consumers’ intention and actual purchase through marketing. Decreasing the gap refers to more fully exploit the potential size of the segment and generate more sales. Method A completely theoretical method was chosen for this thesis. To the authors’ knowledge there has not been done enough specific research to match the purpose of this thesis. A literature review has therefore been conducted within three separate fields of marketing to get a broader understanding of how the gap between intention and actual purchase can be decreased. Based on the extensive literature review, the authors developed ten propositions that formed a model that can be used as the backbone for future theoretical and empirical research. Final Discussion Some highlights of the theoretical discussions earlier in this thesis are presented in the final discussion. The authors suggest that purchase decisions of socially desirable FMCG initially are high-involvement decisions that often are formed outside the in-store-setting. This suggests that more long-term marketing efforts such as brand building in some cases can be more important than in-store marketing when it comes to FMCG that are socially desirable. Symbolic values should be highlighted in branding of socially desirable FMCG because the instrumental differences between FMCG and socially desirable FMCG is limited. It is therefore likely that it is more efficient to focus on consumers’ self-identity to convince them to purchase socially desirable FMCG. It is also important that producers of socially desirable FMCG provide consumers with clear product information in-store and that the products are easy to find. Based on the extensive literature review, the authors have developed eight propositions that form the model presented in this chapter.

 

  3  

Definitions To reduce the risk for misunderstanding of what the authors intend to describe, a short list of definitions of important terms may be followed below.

Fast Moving Consumer Goods (FMCG) In this thesis, the term FMCG refers to retail goods that are consumed relatively quickly, many of them within a short time period of just a few days.  Examples include non-durable goods such as soft drinks, toiletries, and grocery items such as meat, fruits or diary products. FMCGs are products that are characterized as being sold quickly and that have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Generally, the profit per item is relatively small but since they sell in large quantities the cumulative profit can be large. In this thesis it is important to understand the term since the marketing implications might differ from more durable goods.

Socially Desirable FMCGs Products that are characterized by a social pressure to purchase for environmental reasons are referred to as “socially desirable FMCG”. The authors do not consider whether the production procedures are favorable for the environment or not. Instead, it is the consumers’ perceptions of which products that are friendly to the environment that counts. The expression “socially desirable” is taken from Öhman (2010). An issue for the reader is that existing literature which deals with the topic are using different expressions. In some literature, terms such as “organic” or environmental” are used. In this literature review, these terms will not be replaced by “socially desirable” when referring to an article that are using other terms. Only when the authors present their view, the term “socially desirable” will be used. However, the authors define the expressions “organic”, “environmental”, or any other similar words, as “socially desirable”.

The “Green” Consumer The “green” consumer refers to the environmentally conscious consumer who is buying, willing to or says she will be buying socially desirable FMCG. This definition is used to determine what kind of benefits consumers seek when considering buying socially desirable FMCG.

 

  4  

TABLE OF CONTENT Page 1. .INTRODUCTION 05

1.1 Background 05 1.1.1 The Gap between the Intention of Being Environmentally Friendly 05

and Actual Behavior 1.1.2 Socially Desirable Products and the Market for Those – 06

High Potential, Slow Growth 1.1.3 What is the Problem? 07

1.2 Purpose 08 1.3 Delimitations 08

2. .METHOD 09 2.1 Choice of Method 09 2.2 Collection of Relevant Research Articles 10 2.3 Limitations and Criticism of Sources 11 2.4 Outline of the Study 13

3. .LITERATURE REVIEW 14 3.1 Creating Value For the ”Green” Consumer 14

3.1.1 Who is the “Green” consumer and what Benefits is She Seeking? 14 3.1.2 Branding and Differentiation Creates Value for the Consumer 17 3.1.3 Consumer Confusion over New Market Entrants 18 3.1.4 Discussion: Creating Value for the ”Green” Consumer 19

3.1.4.1 Propositions 23 3.2 Decision-making – Behavioral Aspects 23

3.2.1 Different perspectives when Studying Decision-Making 23 3.2.2 The Purchase Decision – Planned or Unplanned 24 3.2.3 High-Low Involvement in Decision-Making 25 3.2.4 Where the Decision-Making Takes Place 25 3.2.5 Discussion: Decision-Making 26

3.2.5.1 Propositions 28 3.3 In-store Marketing 28

3.3.1 Harsh Competition Calls for Improved In-Store Execution 28 3.3.2 Factors that Affect the Consumer’s Choice of Socially 28

Desirable FMCG In-Store 3.3.3 Increased Sales through Aisle Placement 30 3.3.4 Discussion: In-Store Marketing 30

3.3.4.1 Propositions 32 4. .FINAL DISCUSSION 33

4.1 Approaching a Model 33 4.2 Further Research Suggestions 35 .REFERENCES … .APPENDIX 41

 

  5  

11. INTRODUCTION …………. .m …… In this section, the reader will be introduced to the topic of this thesis and the gap between the

intention of being environmentally friendly and actual behavior, socially desirable acts and the

high potential but slow growth on the market of socially desirable products. Furthermore, the

problem formulation and the purpose of this thesis will be presented.

1.1 Background 1.1.1 The Gap between the Intention of Being Environmentally Friendly and Actual Behavior

A Google search for “climate changes” generates 134 million hits, which is somewhat less than a

search for “Barack Obama” but much more than “terrorism” and “Madonna”. The concern about

the environment has become a fundamental economic and political issue across the world during

the last couple of decades (Peattie, 1992). More and more firms are working on different methods

on to reduce their environmental impact. Some do it because they truly believe it is the right thing

to do or because there are costs to save, while others do it because their customers demand it

(Unga Aktiesparare). In the latter group many firms have developed a range of products that are

appealing to consumers who think it is important to reduce their own share of negative

environmental influence. A very high share, 91%, of the Swedish population is aware of the

climate changes, and about half the population feel guilty when they are acting in a way which

they believe will have a negative impact on the environment (Naturvårdsverket, 2008). At the

same time, the consumption of goods and services that are known to be less environmentally

friendly has not declined - it has increased. For example, gas-guzzling cars and airplanes are used

like never before and the meat consumption per capita has increased (DN:a, 2010-12-15; SvD,

2010-11-30; DN:b, 2010-06-30).

Why is there a difference between intention and actual behavior? In SvD, (2010-11-30)

researchers and psychologists discuss why it is so hard for the human being to change its behavior

in relation to the environmental issues. Rees (2002-2003) also discusses whether humans really

have the ability to plan long-term. The legend says that the population of Easter Island cut down

the very last tree on the island, even though they knew that the trees were necessary for their

survival. The trees were fuel for fire and wood for building boats so they could fish. When the last

tree had fallen, it was just a matter of time until the whole population was extinct. Rees (2002-

 

  6  

2003) argues that there are limitations for expansion and growth, and that all populations keep

expanding until they destroy a critical resource for its own survival. Through evolution, our brains

have been developed to react on the most pressing physical threats (SvD, 2010-11-30). However,

the climate threat is different. No warning signals will be activated in the brain as long as the

threat does not immediately affect our local environment or us directly. The cost for acting in an

environmentally friendly way today may be perceived as a sacrifice and a cost, while the yield not

only is more diffuse, but also far ahead in the future. The human brain is rewarded when we

perceive pleasure – a behavior that often is strongly related to not being environmentally friendly.

In the choice between having a walk to the office or going by car, the latter often seems like a

better and more pleasant solution (Ibid; Öhman, 2010).

Öhman (2010) argues that there is a clear difference between intention and actual purchase. He

also states that trying to measure intention in consumer surveys often is an unreliable variable.

There are three main reasons for why consumer intentions tend to be misleading regarding

environmental consciousness. Firstly, the social pressure is strong; most people would like to see

themselves and be seen by others as environmentally conscious. Secondly, no one controls if you

actually follow your intentions and perform the action; in this case that you actually purchase

environmentally friendly products. Thirdly, the cost of the behavior is often underestimated while

the value is overestimated. This often occurs when the purchase takes place in the future, so-called

time shift, while the intention is measured before the purchase takes place (Ibid).

1.1.2 Socially Desirable Products and the Market for Those – High Potential, Slow Growth

Öhman (2010) also discusses that under normal circumstances it is hard to predict future consumer

shopping behavior and purchases. It is even harder when adding other aspects, such as trying to

predict socially desirable acts, which as already mentioned is overestimated when looking at the

intention. Socially desirable acts in this case refer to purchases of products for which there are a

social or external pressure to buy for environmental reasons. In this thesis, the focus will be on

Fast Moving Consumer Goods (FMCG) which fall under this definition. That is, the products that

will be discussed from now on are by the authors considered as products where there is a social or

external pressure to buy them. These products are most likely organically labeled in various ways,

or they might be labeled in a way that indicates climate or environmentally friendly production

procedures. The definition also applies to locally produced goods. The definition above is

 

  7  

important, since the authors of this thesis by no means intend to determine which production

procedures are the most favorable for the environment. The consumers’ perception and definition

of which products that are friendly to the external environment is what counts.

“It was initially thought that consumers would alter their attitudes in favor of purchases of

‘organic’ instead of ‘conventional’ food products. Nonetheless, consumer response has been very

slow resulting in ‘sub-optimal’ market performance” (de Vlieger et al., 1993; Urban et al.'s, 1986

in Chryssochoidis, 2000 p. 707). More recent news suggest that things may have changed since

these articles were written; Sweden’s largest grocery chain ICA, holding about 50 percent of the

market, increased its sales of organic products by 50 percent during 2008 compared to 2007 and

doubled its organic product range Although the total sales have increased, the organic products

still only represent 2,2 percent of the total grocery products sold in Sweden in 2004 (Statistics

Sweden, 2004). This is in line with ICA’s sales figures, where organic products generated SEK 2

billion in sales (Dagens handel, 2011-02-07) The total sales for ICA represented close to SEK 93

billion, which gives a share for organics of about 2,1 percent of total sales in 2010 (ICA AB Year-

end Report, 2010). There is somewhat of a paradox here; the interest and the awareness for the

environment is growing and the socially conscious segment is predicted to increase, but growth

seems to be slow. It is also concluded that there is a discrepancy between how consumers say that

they act and how they actually act when it comes to making environmentally conscious purchase

decisions (Öhman, 2010). Hughner et al. (2007) states that organic products are one of the largest

growth markets within the food industry.

1.1.3 What is the Problem?

There is potential to develop the socially desirable segment but the gap between intention and

actual purchase provides a possible issue for producers of FMCG which are socially desirable

purchases. It will therefore not only be hard to predict production volumes, but it also means that

they reach a smaller group of consumers than the potential total size of the segment. Therefore,

there is a need to study this area more closely and to integrate existing marketing theories with

more specific studies on consumer behavior regarding FMCG which are socially desirable

purchases. Hughner et al. (2007) state that future research is needed to understand the complex

organic customer behavior in order to further improve sales in the segment. Öhman (2010)

concludes that the gap between intent and purchase is especially large in a retailing context. It is

 

  8  

questionable if the consumer makes any extensive purchase decisions regarding FMCG before

entering the retail outlet (Inman & Winter, 1998; Klabjan & Pei, 2011). Therefore, the producers

of FMCG which are socially desirable purchases are most likely to have an opportunity to

influence the consumer at the point of purchase to increase its sales. Because of this, the focus in

this thesis will be on in-store marketing, although more general marketing and branding theories

will be presented together with consumer behavior theories on decision-making. Until now, many

researchers and authors have conducted research in for this thesis relevant, although separate,

fields of marketing; customer value, decision-making and in-store marketing. Since each area of

marketing alone will not help us find an answer of how the gap can be decreased the authors

intend to present a literature review of the above-mentioned fields that could be used as the

backbone of future empirical research.

1.2 Purpose The purpose of this thesis is to review and combine existing literature in the fields of consumer

value creation, decision-making and in-store marketing. By doing so the authors of this thesis aim

to present a model on how producers of socially desirable FMCG can decrease the gap between

the consumers’ intention and actual purchase through marketing. The term “decreasing the gap”

refers to more fully exploit the potential size of the segment and generate more sales.

1.3 Delimitations It will not be possible within the scope of this thesis to cover all fields of marketing. As mentioned

in the introduction and in the purpose, the channel of focus will be on in-store marketing in a

retailing context. There are several aspects of marketing which are not covered, i.e. marketing

communications and advertising through other channels such as TV, online or magazines. Since

the idea of this thesis is to create a model built on existing theories the reader needs to consider

that the model can by no means be considered as complete, both for the reason mentioned above

and because the model is not based on empirical research carried out by the authors of this thesis.

 

  9  

12. METHOD…dd mmddddddddddddddddddddd….... In this section, the authors will present how this paper has been compiled. At the outset, the

reader will be guided though the choice of method, followed by how the collection of relevant

articles were conducted. Thereafter, the design of this study will be described.

2.1 Choice of Method The authors of this thesis aim to review and combine existing literature in the fields of consumer

value creation, decision-making and in-store marketing. This refers to taking a more holistic

perspective on how producers of FMCG which are socially desirable can increase sales and

exploit more fully the segment through different fields of marketing. To be able to fulfill the

purpose of this study, the different sub-fields of marketing presented above need to be reviewed

and compiled together as one entity. According to the authors of this thesis, it is vital to review

marketing fundamentals, differentiation and how value can be added to a product. Knowledge

about the decision-making process from a consumer point-of-view is also important in order to

understand how consumers think when they make a purchase decision. Moreover, knowledge

based on the retailer side is also important to consider, such as how price decisions, aisle settings

or display placements affect in-store sales. Separately, each of these areas can create a piece of a

puzzle, but to make the puzzle more complete, that is fulfillment of the purpose of this thesis,

there is a need to combine these pieces of the puzzle.

According to Cooper (1998), the literature review as a method can be pursued in various ways. It

can be used for different purposes i.e. to criticize previous studies or to connect different theories

from different fields of research. The reason for choosing a completely theoretical approach in this

thesis is that there is, to the authors’ knowledge, no combined compilation of the different

research areas described above. Therefore it is necessary to first put together the existing relevant

studies in those fields before it would be possible to execute empirical research to test the

propositions of this thesis. This is in accordance with Cooper (1998) who argues that a literature

review is a study in itself and that it can be used as a starting point for separate empirical research.

The authors of this thesis aim to present a model in the end of this review that could facilitate

empirical research on this topic. This could be a valuable contribution and a way to test if the

compiled conclusions and the model of this thesis can be validated. Within the time limit of this

 

  10  

thesis, conducting both a literature review, presenting a model and then test it empirically would

not be possible. The intention is therefore to present a model that can provide a structure for how

the gap between intention and purchase for FMCG goods which are socially desirable purchases

can be decreased according to a combination of existing theories.

2.2 Collection of Relevant Research Articles An extensive literature review took place and the collection of relevant articles was conducted.

The starting point for this literature review was Considering Intentions by Öhman (2010), and

from this dissertation the authors have researched relevant references and theories on a step-by-

step basis. If a reference in Öhman (2010) was considered interesting, it was reviewed. Then, in

turn, if references in that article were proven to be relevant, they were also reviewed. Some

articles that were considered to be relevant for this purpose were chosen out of the authors’

previous records obtained through various course work at university.

A third step in the pursuit of finding relevant articles was performed through an electronic search

in the reference database Business Source Premier. According to Cooper (1998), a comprehensive

literature search should use secondary channels, especially reference and research registers as the

backbone. These sources cast a very wide net and are close to keep approximately all research.

Therefore, using Business Source Premier is a legitimate action. However, it is also suggested that

only focusing on published articles is not advisable. Also using informal sources is recommended,

although it should only be a small share of the total articles reviewed, both because informal

sources tend to be more recent and because those can be a complement to the more established

sources (Cooper, 1998). Informal sources that were used in this thesis was Öhman (2010) (a

doctoral thesis) and Holt (2003) (case material), which both were found through previous

knowledge of the authors of this thesis. Keywords that were used, either individually or combined

in the article search: Decision-making, Organic, In-store marketing, FMCG, Differentiation, Eco,

Ecological, Purchase decision, Green Marketing, Branding and Consumer Behavior. Furthermore,

relevant articles were also found through cited references in articles generated through the search

on Business Source Premier.

The articles were then scanned through reading the abstract. If they seemed relevant for the

purpose, they were stored for later reading. The criteria for being relevant was that the article

 

  11  

related to what the authors of this thesis defined as being socially desirable FMCG in combination

with covering either customer value, decision-making or in-store marketing. However, in some

instances this search of multiple keywords did not generate enough articles that combined these

issues, which made the authors widen the search and allow theories covering only customer value,

decision-making or in-store marketing to be reviewed. More refined theories on socially desirable

FMCG used in combination with more conventional marketing theories also helped the authors

define the possible difference that exist between marketing conventional and socially desirable

FMCG. This also strengthened the authors’ hypothesis that this field has not been covered in a

holistic perspective to the extent that is necessary to put together a combined model built on

existing theories. Cooper (1998) determined that identifying a gap in existing research is an

important aspect of doing a literature review because it helps suggest future research. Another

relevance criteria for this thesis dealt with finding a mix of theories that both contradict each other

and that support each other’s arguments. Since it was not possible to cover every article the

authors’ decision to choose or not to choose certain articles added a subjective element to this

thesis that cannot be eliminated. All reviewed articles have been compiled in Table 1, which can

be found in the Appendix. Here, the authors have described each article reviewed, how it was

found, a brief description of the content and the main conclusion. The reader is also provided with

information about articles that were read but which were determined to be irrelevant for this

thesis. The table was designed to give the reader an overview over articles covered, but also to

demonstrate that the review was thoroughly done.

2.3 Limitations and Criticism of Sources First of all the term mentioned in the introduction, FMCG that are socially desirable purchases,

provided an opportunity for the authors of this thesis to really investigate a behavior that is

probably no different if the product is locally produced or labeled organically with labels such as

KRAV or the EU-symbol (KRAV; European Commission on Organic Farming). On the other

hand, there is confusion about what kind of labeling means what, and in the scientific articles

researched for in the purpose of this thesis, different terms occur, such as “green”, “organic” or

“environmentally friendly”. It would be preferable if there were consistent labeling in this area

since it constitutes a problem for the consumers as well as it is a limitation for this thesis to some

extent. The consumer issue of it will be further discussed in the theoretical part of this thesis.

 

  12  

Finding relevant articles for FMCG goods which are socially desirable purchases specifically has

arisen as an issue. In some cases, theories covering other types of products than organic FMCG

are reviewed. When the content still has been judged as relevant for the purpose of this thesis,

those articles have been included but presented under a critical eye. Some articles that cover

organic products and the development of a market for them can be viewed as old in the context of

this thesis. The 90’s are considered to be the booming decade for green marketing, but it can still

be that attitudes and trends have changed since. Some articles are even older and therefore the

authors have been careful not to draw conclusions solely out of those articles which can be viewed

as outdated. This reasoning is not valid for articles and studies considering branding and

marketing in general, as older articles in those fields in many instances are well established.

Another limitation is that all relevant theories cannot possibly be reviewed or covered within the

scope of this thesis. This also concerns the fields of marketing chosen for this thesis. For example,

all aspects of marketing communication and media options to advertise such as TV, ads and so on

are not covered. This affects the result, and the model cannot be considered as a mirror image of

the full picture or reality for that matter. Since no empirical research has been conducted in this

thesis, the conclusions are based completely on theoretical approaches. What affected the final

results of this thesis were both the time frame (when the articles that have been reviewed in this

thesis were written) and the personal touch of the authors’ experiences and beliefs. The field of

green marketing is likely to continue to develop as well as the consumer behavior of today.

Therefore a similar review done in a few years from now would probably have a different content

and different result than this thesis.

The authors have not chosen a specific geographic region for this literature review, but have tried

to show awareness concerning regional differences in those cases where difficulties have occurred.

However, the authors make a calculated assumption that the consumer segment relevant for the

studied products has a higher price point in general. Therefore it is likely that the tendencies and

patterns that this study is based on are more transferrable within western countries with strong

buying power than in poor countries where consumers are likely to be more price conscious. For

example, in the introduction statistics about Sweden and the grocery chain ICA is presented. ICA

is considered to be representative to draw conclusions from Sweden as sample, as the chain holds

over 50 percent of the market and has retail outlets with different price concepts. The authors

 

  13  

consider Sweden as fairly representative for western countries. In this thesis, a basic assumption is

that the producing firms of FMCG that are socially desirable are competitive and strive to

maximize profit, which mean that they should have an interest in increasing the sales of this

segment. We are aware that this may not be valid for all firms.

2.4 Outline of the Study There are three chapters of theory. The first chapter covers established marketing theories

describing how marketing can add value to the consumer by promoting differentiation, branding

and segmentation. The second chapter contains theories about intentions and purchase behavior in

the retail setting which provide a theoretical introduction to decision-making. To emphasize and

question if the type of differentiation that FMCG that are socially desirable purchases offer the

consumer really can be classified and treated as a more conventional unique selling point, both

more conventional marketing theories and those that specifically concern socially desirable

FMCG. The third chapter will cover the field of in-store marketing. This chapter provides

necessary knowledge of actual in-store execution. This kind of structure is in line with what Hart

(1998) suggests, thus there are several sections dealing with different concerns. This is to

demonstrate that the main concepts and theories examined in the literature review are covered in

this thesis (ibid). A discussion will follow after each chapter. Important propositions that conclude

the discussion will be presented at the end of every chapter. Together, the propositions of the

chapters form the framework for how to apply this knowledge in a model. The model is then

suggested to be used in future empirical research.

 

 

 

 

 

 

 

 

  14  

13. LITERATURE REVIEW .  

In this section, a literature review based on three different research areas will be presented. The

first chapter will focus on how to add value through marketing while the other two will focus on

decision-making and in-store marketing. Each chapter will be followed by a discussion and

propositions. Based on this, a model will be presented.

3.1 Creating Value for the “Green” Consumer FMCG which are socially desirable purchases are linked to theories of differentiation and value

adding through marketing. What is it with these products that make consumers buy them? What

kind of benefits are the consumers seeking? In this part, theories covering marketing

fundamentals, differentiation and value added through marketing will be covered.

3.1.1 Who is the “Green” Consumer and what Benefits is She Seeking?

Hartmann and Apaolaza Ibáñez (2006) mean that individuals who are expressing high

environmental consciousness or concern in response to direct questions will not necessarily

transform this into an environmentally responsible behavior. In a Portuguese study, the sampled

consumers were aware of the existence of environmental problems, even though their concerns

were not always translated into environmentally friendly behavior (Finisterra do Paço et al., 2009).

In Öhman (2010), the author discusses how intentions to purchase eco-friendly products often

differ from regular products. The intention to purchase ecological products could be grouped into

the same category as other intentions such as quitting smoking or spending more time at the gym –

so called ”good intentions”. Öhman (2010) states that it has a desirable end-state even though the

process of getting there could be described as undesirable. The undesirable in this case refers to

the trouble, often in the form of a higher price, that consumers have to go through to reach the

desired state.

Hartmann and Apaolaza Ibáñez (2006) acknowledge that one of the major issues in green

marketing is to find a way to emphasize which individual benefits the consumer can obtain when

choosing the green(er) option. Hartmann and Apaolaza Ibáñez (2006) suggest that these benefits

can be emphasized by adding more and stronger emotional values to green brands. Belz and Dyllik

(1996) say that the consumer in most cases will see the improvement or the result of their

 

  15  

environmentally friendly choices only when a majority of the population is taking the same

actions. People often act out of a short-term personal goal. This might harm the collective in a

long-term perspective. Sometimes this situation is called “the tragedy of the commons”, and has

today become an accepted concept since the ecologist Garrett Hardin (1968) coined the

expression. This concept expresses how the motivation for the individual to pay a higher price for

green products decreases, as the reward or benefit of paying the higher price will happen in the

future or not at all. This has been said to resemble the ”behavioral dilemma faced by prisoner’s,

who may behave irresponsibly not as much on account of perceived benefits of good conduct, but

because they note that fellow prisoners do not behave properly either” (Hartmann & Apaolaza

Ibáñez, 2006, p. 676).

Finisterra do Paço et al. (2009), note that different segments of consumers look upon green

products in very different ways. They also conclude that there are some consumers who are

prepared to base their purchase decisions on the benefit of the product not harming the

environment. The result of their study also showed that there is a segment of green consumers that

is very different from other segments in some aspects. The consumers in the study which buy

green products do so for very specific reasons, are between 25 and 34 years old or 45 and 54 years

old and have the highest education level in the sample, work in intellectual, scientific or artistic

middle and senior management and are specialists earning higher incomes. The individuals in this

segment are positive towards all environmental aspects and have an environmentally friendly

buying behavior (Finisterra do Paço et al., 2009). According to their study, this segment consists

of 35 percent of the sample. Hughner et al. (2007) concluded that parents of young children are

more likely to purchase organic grocery products. In general, young people tend to have a positive

attitude to organic food but older people are the most likely purchasers (Hughner et al, 2007).    

Other research has found that the probability to purchase organic products is higher among the

college educated (Chandon et al., 2009), high income, older families and high-level occupation

groups (Jolly, 1991; Ngobo, 2011). Magnusson et al. (2001) found that between 46 percent and 67

percent (depending on food category) of the consumers have positive attitudes towards organic

food. Women had a more positive attitude than men. In spite of this, only between four and ten

percent had intentions to actually buy organic food. The probability to purchase organic products

is lowest among larger families (Ngobo, 2011).

 

  16  

In contrast to the authors above, Straughan and Roberts (1999) suggest that demographic factors

are not a good way to solely segment the consumers in respect of green behavior. This is because

demographics lack the explanatory power of the psychographic variables. They argue that the

typical profile given for green consumers; young, mid- to high-income, educated and urban

women is the result of an easy, but not very effective segmentation. The result of their study

shows that psychographics need to be included to make an accurate discrimination between

varying degrees of ecologically conscious consumers. An important conclusion of their study is

that the consumer needs to be convinced that his or her pro-environmental actions will be effective

in fighting environmental challenges. Therefore, marketing activities should focus on explaining

to the consumer what kind of beneficial environmental outcomes that is linked to making this

effort and buying this green product.

What kind of benefits is the consumer seeking when purchasing green products? This is important

to understand to be able to market this type of product successfully. According to Hall (2008),

consumers are likely to purchase organic food for numerous reasons, among others: the perceived

effect of organics on the environment, taste, sustainability, status, lifestyle, animal welfare, worker

safety, nutritional content, or reduced exposure to pesticides. The main reason for purchasing

organic food is health, but taste and environmental concerns are also important for consumers

(Hughner et al, 2007). Hall (2008) argues that this combines the findings of Katz (1960), Grubb

and Grathwohl (1967) and Lievens and Highhouse (2003) that are related to the brand image.

Those findings linked instrumental attributes to the need to maximize benefits and minimize cost

(Katz, 1960). Instrumental characteristics correspond to product-related attributes which describe

the product in terms of objective, physical, and tangible attributes (Hall, 2008). Symbolic

characteristics are described as the opposite; non-product related attributes which describe the

product in terms of subjective and intangible attributes (Hall, 2008). Symbolic attributes are linked

to self-identity, self-image, and self-expression (Grubb & Grathwohl, 1967; Lievens & Highhouse,

2003). Lievens and Highhouse (2003) determine that consumers buy products not only for the

instrumental attributes but also for their symbolic meanings. When the instrumental attributes

between brands are limited, the importance of the symbolic attributes increases. Similarly,

differentiation on symbolic brand personality is often easier and more effective than

differentiation on instrumental dimensions (Plummer, 2000).

 

  17  

3.1.2 Branding and Differentiation Creates Value for the Consumer

Branding is a way of creating value for the consumer. Imagining the value of the brand as the

difference between what a consumer will pay for a branded product and a physically identical

product without the brand culture (Holt, 2002). Measuring perceived value can be difficult.

(Kotler et al., 2005 p. 684-685). In value-based pricing, the firm sets its price according to

customer perceptions of the value of the product. It is important that the firm finds out what value

a customer assigns to different benefits and offers (ibid). The difference in value between the

branded and the generic product is explained by various aspects, two of them being experiential

value and symbolic value (Holt, 2002). The former refers to firms seeking to highlight benefits

delivered by the product, which then guides the consumer when choosing products. The latter

refers to brands acting as symbols that express values.

Holt (2002) argues that marketing strategies begin with the value proposition. That is, the various

types and amounts of value that the firm wants consumers to receive from the market offering.

The value proposition can also be referred to as the positioning statement. Sometimes it is

assumed that if a firm builds a better product, the consumers will also experience it as an

improved product. However, marketing emphasizes that customer value is perceptual and not

objective. Branding provides an opportunity for the firm to shape the customer’s perceptions;

thereby it also creates a window to influence the perceived value of the product.

Consumer goods of today are powerful markers to express identity, status, lifestyle and political

view (Holt, 2002). Holt (2002) also encourages thinking about the brand as the culture of the

product. Thus, a product acquires brand meaning and culture over time, as these meanings will be

accepted as truths about the product. Furthermore, this suggests that a newly introduced product is

devoid of meaning and therefore lacks a brand culture. This is also what makes branding a

powerful tool – the culture, stories and associations that are linked to the brand become

conventional, everyday truths that are continuously reinforced. This knowledge also explains why

brands are durable.

According to Levitt (1980) there is no such thing as a commodity. Differentiation is most readily

apparent in branded packaged consumer goods; in the design, operating character, or composition

of industrial goods; or in the features or “service” intensity of intangible products. In short, the

offered product is differentiated, although the generic product is identical to other products. When

 

  18  

the generic product is undifferentiated, the offered product makes the difference in attracting

consumers and the delivered product in keeping them. However, differentiation is not limited to

giving consumers what they expect. What the consumers expect can be augmented by things the

customer didn’t think about herself before noticing the benefit when using the product.

"Consumers attract value to a product in proportion to its perceived ability to help solve their

problems or meet their needs. All else is derivative" (Levitt, 1980 p. 3). “The ‘product’ is what the

product does; it is the total package of benefits the customer receives when he buys" (Corey, 1975

p. 122).

However, not all consumers under all circumstances can be attracted by an ever-expanding bundle

of differentiating value satisfaction. Some consumers may prefer lower prices to product

augmentation. Chryssochoidis (2000) discusses what differentiates organic food from

conventional food. The author argues that organic food may be a type of product possessing the

characteristics of a high differentiation. Sashi and Stern (1995) mean that organically produced

products can be regarded as differentiated products since the production method provides the

products with characteristics that are different from conventional counterparts.

Furthermore, Holt (2002) argues that it is a common mistake to consider the brand as the “frosting

on the cake”. In other words, the brand delivers value beyond the actual product. It would be more

correct to refer to the brand as a frame through which the consumers value and experience the

product. This way the brand enhances the consumer’s experience of the product and emphasizes

existing value of the product, however this is always subjective. All together, branding can create

a competitive advantage. An argument for this is that as consumers we seek to minimize and

simplify our thinking that comes with making good choices. If we determine that a brand culture

works for us, we are reluctant to seek out new alternatives (ibid).

3.1.3 Consumer Confusion over New Market Entrants

For a new product category, where consumers have little product experience, relationship and

quality is of high importance (Holt, 2002). Consumers usually reduce their cognitive demands of

processing new information by relying on previous learning (Fiske & Taylor, 1984). According to

Carpenter and Nakamoto (1989; 1994) consumers are confused about which unique characteristics

many late introduced differentiated products possess. This depends largely on human limitations

related to how consumers are able to process information regarding products that enter the market

 

  19  

later than their competitors. Chryssochoidis (2000) means that organic food is an example of a late

introduction compared to the established conventional food. The result of his study suggests that

”consumers' limited prior knowledge about possible differentiation between conventional and

organic food may have made them insensitive to differences and unwilling to learn about these

differences altogether” (Chryssochoidis, 2000 p. 707). Carpenter and Nakamoto (1994) mean that

organic products possess characteristics different from conventional food and that this makes

consumers compare newly introduced products to existing brands. According to Dens and De

Pelsmacker (2010) newly introduced brands are less positively evaluated than brand extensions.

Therefore, a viable strategic option when introducing new products to the markets is to do it in the

form of a brand extension (Dens & De Pelsmacker, 2010).

Because of the uncertainty and limited prior knowledge that some consumers experience regarding

the differentiation between conventional and organic products, consumers become indifferent to

these possible differences (Chryssochoidis, 2000). Consumers may in fact use conventional food

as the baseline for comparison with organic food (Carpenter & Nakamoto, 1989; 1994). For a new

category, where consumers have little product experience, relationship and quality is of high

importance (Holt, 2002). The findings of Chryssochoidis (2000) support these arguments. It is

likely that the respondents of the latter study were victims of self-invoked confusion regarding

organic food. Peattie (1990) states that consumers think of organic food as something desirable,

but due to various  reasons, such as the products being new to the market and a heterogeneous and

indistinct labeling, very few of them truly understand what the term ‘organic’ means.    

3.1.4 Discussion: Creating Value for the “Green” Consumer

With the difference between intention and the actual purchasing behavior being the starting point,

and with several authors noting that an environmentally conscious behavior (Hartmann &

Apaolaza Ibáñez, 2006; Finisterra do Paço et al., 2009; Öhman, 2010) is not the same as putting

this to action, you can question what it is that consumers who actually are buying socially

responsible FMCG products are seeking? Hartmann and Apaolaza Ibáñez (2006), Belz and Dyllik

(1996) and Hardin (1968) highlight something very important and that is when the individual

consumer considers purchasing a green product, the main added value in a product like that is that

it doesn’t harm the environment to the same extent as a conventional product. But for the purchase

to truly help the environment to any considerable extent, it demands that a majority of consumers

 

  20  

make the same types of decisions. If there are no other benefits attached to the products, benefits

that the consumer perceives as superior over the conventional one, it is very likely that the

consumer cannot comprehend what value he or she is paying for, as the benefit of being

environmentally friendly does not add any value to the individual herself. Compare for example

with paying a premium price for a high safety car. Here the buyer will receive higher safety –

something that benefits the consumer on an individual level. As Hartmann and Apaolaza Ibáñez

(2006) mentioned, it is therefore a major issue in marketing to determine what kind of benefits and

values consumers attach to these green products. But there are obviously some consumers who

still think that being altrustic give them enough value; “donating” the value they pay for to a

greater good, as Finisterra do Paço et al. (2009) discuss. If the consumer is defined as someone

who is information and knowledge seeking, consumer education and marketing for a specific

product coupled with Corporate Social Responsibility actions could be measures to increase sales

of socially desirable FMCG. For example, for every product sold we (the firm) plant a new tree in

the rain forest. This would send a clear message to the consumer regarding what kind of

environmental improvement the consumer is contributing to.

Obviously, consumers buy socially desirable FMCG today. It is important to determine who these

consumers are, especially when the objective is to decrease the gap between intention and

purchase, as this is likely to lead to higher sales. Therefore, if we know who the present consumer

is, we also can define who the present consumer is not. Is it for example possible to target other

segments through emphasizing or adding other benefits that add value to the individual consumer?

Except considering additional segments to target, the management of the existing target segment

(that already includes the most environmentally conscious consumers) could also be improved.

The target segment should also be carefully analyzed, using both demographics and

psychographics. If the findings of Finisterra do Paço et al. (2009), are transferrable to the rest of

the western world’s population, this means that 35 percent of the population are presumptive

consumers for organic products. At this moment this presumptive segment is not fully exploited

because it has further market potential, also in relation to the numbers presented in the

introduction of this thesis. Another important topic for management of firms producing socially

desirable FMCG should be to consider which specific reasons there are to purchase socially

desirable products – and there are several reasons (i.e. Hall, 2008). That lifestyle, emotional

 

  21  

fulfillment and societal status can be drivers behind intentions to purchase socially desirable

FMCG, was explained in the introduction (Öhman, 2010) and later in the theory chapter above

(Hall, 2008). Therefore it is very likely that consumers are attracted by the opportunity of

confirming to themselves that they are “good” and moral persons that take responsibility. It may

be even more likely that purchasing these kinds of products gives the consumer a feeling of

improving its image towards other people, as buying these products is considered socially

desirable by most people. In that sense, Katz (1960) is correct when referring to maximizing

benefits and minimizing costs. For the consumers that primarily purchase for image reasons, this

could very well be true. They pay a premium for the benefit of maintaining or building an image.

This is in line with what Grubb and Grathwohl (1967) and Lievens and Highhouse (2003)

conclude: Consumers purchase products not only for instrumental reasons but also for symbolic,

emotional reasons. Since there are few tangible differences between socially desirable products

and conventional products (what truly differs is the production method, not taste or another

“sensory” experience), emphasizing the more symbolic attributes could be a solution in line with

Lievens and Highhouse (2003) and Plummer (2000). Considering other aspects which have been

presented in the chapter above, such as the consumer’s need to be convinced that buying the

products will lead to environmental improvements, or at least not environmental degradation

(Straughan & Roberts 1999), this definitely should have marketing implications. Raising

awareness within the management of the firms producing socially desirable FMCG for these

issues is necessary, and should help the firm in creating a viable marketing strategy.

When discussing how the producing firm can create value and thereby attract consumers, it is

unavoidable to get into the subject of brands and differentiation. As Holt (2002) states, the brand’s

value is defined as the difference in price between what the consumer would pay for an unbranded

product and the branded version. In this case, finding out what the consumers are willing to pay

for an intangible benefit such as perceiving oneself as being moral is important. It is likely that it

is difficult for a firm producing socially desirable FMCG to determine how much the consumers

are willing to pay since consumers tend to underestimate what they need to pay for a product like

this and overestimating the value they assign to the product. Therefore, it is likely that those

consumers would say that they are willing to pay a higher price than what they actually are. To

circumvent this problem, again adding value through marketing could make the consumer more

willing to pay a premium price. Creating a powerful brand culture (Holt, 2002) should for example

 

  22  

increase the amount the consumer is willing to pay, without a tangible benefit being added to the

product. Branding is also a way of answering to the symbolic sought benefits such as lifestyle and

status markers. In a successful brand culture, these types of benefits are naturally developed; it

might even be that a “fan club” among consumers is created for the brand. Incorporating the

benefits that the consumers are seeking into this marketing strategy should be a successful recipe.

This should also be included in the value proposition. As mentioned by Holt (2002) it is the

consumers’ subjective taste that determines whether a product is improved or not. Actual adding

more nutritional content or better flavor does not necessarily mean that the consumers will think

about the product as improved. Therefore strongly communicating the improvement after careful

research of demanded benefits is recommended.

What truly separates conventional products from their organic counterparts is the production

method (Chryssochoidis, 2000). This should be considered the most basic p-o-d (point of

differentiation) of socially desirable purchases. It could also be more to it as the production

method can bring more emotional values. Augmenting the product above the expectation of the

consumer through branding and emphasizing other benefits could attract more consumers. The

extra value that the consumer seeks; beyond contributing to the “the common good” can in some

instances be a wish to augment one’s personal brand image, consciously or unconsciously.

Solving this problem for the consumer who feels guilty, will be like delivering a psychological

“guilt-free” service, buy me and you are a good person. If a firm producing FMCG that are

socially desirable can manage to create and deliver benefits through marketing that are beyond

what the consumer expects and through this create a differentiated brand, it is also likely that the

firm will have sustainable success as brands are durable, and socially desirable brands are likely to

be even more sustainable.

Some of the theories researched (Fiske & Taylor, 1984; Carpenter & Nakamoto, 1989;1994;

Chryssochidis, 2000) discuss if socially desirable FMCG can be considered new to the market. If

they can, this is likely to have an influence on why there is an ambiguity and confusion regarding

different labeling practices. Are socially desirable products really new to the markets? Considering

that they still represent a very small share of all products sold and that conventional products have

been on the market for longer, yes, they could be treated as a late entrant. According to the

previously mentioned authors, consumers might find these organic products hard to define and

 

  23  

have a limited capacity and willingness to compare these products with conventional ones. This is

definitely an issue that needs to be dealt with, from the producing firm’s perspective. A suggestion

would be to focus on consumer education and to work with industry organizations to create a more

clear-cut labeling system. Another solution would be to look into what Dens and De Pelsmacker

(2010) discuss, and that is to use existing conventional brands and make socially desirable brand

or product extensions, that can deliver the values of the conventional brand which will easier be

for the consumer to process. For a firm producing socially desirable FMCG, this could be done

through liaising with more established firms. Nonetheless, this should be done with care so that

the authenticity of the values delivered of the socially desirable differentiation is not threatened.

3.1.4.1 Propositions

P1: Increased use of psychographics when defining target segments of socially desirable FMCG

will lead to increased sales.

P2: Emphasizing symbolic values in branding of FMCG which are socially desirable will increase

sales.

P3: Firms producing socially desirable FMCG that stress individual consumer benefits through

marketing will increase sales.

3.2 Decision-Making – Behavioral Aspects To be able to increase sales of socially desirable fast moving consumer goods, it is crucial to

understand how consumers think. In this part, theories about consumers’ decision-making process

from a behavioral perspective will be examined.

3.2.1 Different Perspectives when Studying Decision-Making

Extensive research has been conducted within the field of decision-making in order to better

understand consumer choice processing (e.g., Kollat & Willett, 1967; Olshavsky & Granbois,

1979; Hoyer, 1984; d'Astous et al, 1989; Ji & Wood, 2007; Shao et al, 2008; Irwin & Naylor,

2009; Nordfelt, 2009). Decision-making can be studied from two perspectives; either by studying

inner motivational factors or by studying outer/environmental motivational factors. An example of

the first mentioned perspective could be to observe how customer characteristics or other

underlying drivers are affecting decision-making (Essoussi & Zahaf, 2008; Inman et al, 2009).

The latter perspective could be studied through measuring factors such as how much time the

 

  24  

consumer spent considering buying each brand in the choice process, number of packages picked

up (Hoyer, 1984; d'Astous et al, 1989) or in-store displays (Inman et al, 2009). In order to

understand decision-making it is important to consider a range of various aspects, such as

attention, memory, cognitive representation, conflict, learning and feedback (Einhorn & Hogart,

1981). A potential problem when studying decision-making is that underlying assumptions may

affect the outcome of the research (Einhorn & Hogart, 1981). There is an individual cost-benefit

analysis inherent in human decision-making. The consumer will behave in an environmentally

friendly way if that behavior generates a sufficient benefit with regards to the higher price point

that green products is likely to have (Hartmann & Apaolaza Ibáñez, 2006).

3.2.2 The Purchase Decision – Planned or Unplanned

A purchase decision can be either planned or have more of an impulse character. According to

Stern (1962), in particular nine factors are influencing impulse buying: marginal need of product,

mass distribution, mass advertising, self-service, short product life, low price, a good store display,

small size or light weight. However, the author concludes that impulse buying in essence is

irrational. Therefore, impulse buying is impossible to influence (ibid). Research conducted later

points in the opposite direction (Olshavsky & Granbois, 1979; Inman et al, 2009; Nordfelt, 2009).

Inman et al (2009) found that in-store displays can have a high impact on unplanned purchases,

especially for products that are purchased relatively often. Also, the likelihood of unplanned

purchases increase with time spent in store, when stores accept check and credit cards but also

when the consumers are familiar with the store (Inman et al, 2009). Heilman et al (2002) found

that shoppers who received “surprise-coupons” (for example peel-off coupons) increased their

level of unplanned purchasing. Consumers who planned to buy a product often purchased an

increased quantity if it was a couponed item (Heilman et al, 2002).

According to the Stilley et al (2010), every customer has an in-store slack in their mental budget

for making unplanned purchases. Stilley et al (2010) found that savings on planned items created a

windfall effect that resulted in purchases of unplanned products increasing to a greater effect than

the savings of the planned products. In general, the effect of in-store savings depends on if they

appear before or after the customer's slack is depleted. If savings appear before the slack is

depleted, it results in stockpiling shopping by high-income consumers. If savings occur after the

slack is depleted, it will result in increased purchase of unplanned products (Stilley et al, 2010).

 

  25  

3.2.3 High-Low Involvement in Decision-Making

According to Mittal (1989), the degree of involvement in the purchase decision depends on the

consumer’s interest and concern for the product. Mostly, consumers are interested in what they

buy and want to make a good choice. However, the consumers might have either high or low

involvement in the purchase, depending on the context (Mittal, 1989). Typically, inexpensive

products are characterized by low involvement even though it might differ depending on if the

product for example is intended to be a gift (Michaelidou and Dibb, 2008). In that case, it might be

a high-involvement product, regardless of the price. In Mittal’s (1989) definition of involvement,

four aspects are considered: 1) How much the consumer cares about the brand or type of the

product to buy; 2) The perceived difference between the types and brands of the product; 3) How

important it is to choose “the right” product and 4) How concerned the consumer is with the

outcome of the choice (Mittal, 1989). Generally, FMCG are seen as low involvement products

(Knox & Walker, 2001; Ozretic-Dozen, 2007). This is in line with a study by Hoyer (1984) who

found that consumers which are purchasing FMCG are making an extremely quick decision.

Approximately 70 percent of the consumers in his observation study did not examine more than

one package. The pre-purchasing evaluation was more or less non-existent. Consumers mostly did

not compare brands, nor did they examine the shelf-tag (Hoyer, 1984). However, if product

performance was important for the consumer, brand-loyalty increased. Normative users tended to

pay more attention to packaging information than price.

3.2.4 Where the Decision-Making Takes Place

A study by Hoyer (1984) found that consumers are making many of their decisions outside the in-

store situation. d'Astous et al. (1989) performed a follow up-study on Hoyer (1984) but it was

conducted on products that were common but less frequently purchased. The authors concluded

that in-store decision-making is more difficult when the product is more important and purchased

less frequently. Affect, performance and normative reasons were more important and price less

important than in Hoyer’s study (d’Astous et al, 1989). There is no consistent decision process

across all choice contexts. However, the results from Hoyer’s study (1984) conflicts with other

studies. According to Inman et al. (2009), 45 percent of all purchasing decisions are made in-store.

Two other studies found that approximately 60 percent of the purchasing decisions by consumers

are made in the grocery store (Inman & Winter, 1998; Klabjan & Pei, 2011). A fourth study found

that the in-store decision share could be as high as 70 percent (Aldata Solutions, 2007). Olshavsky

 

  26  

and Granbois (1979) found that consumers sometimes not make a decision neither in-store nor

outside the store. Instead, their conclusion was that a decision process many times never exists,

not even on the first purchase, since consumers may rely totally on the recommendation from a

sales person. However, they also state that it might be an oversimplification to say that a pre-

purchasing evaluation occurs or does not occur. It might also be a “hybrid”-decision; for example

a combination of limited amount of research and a recommendation from a sales person.

3.2.5 Discussion: Decision-Making

According to Hartmann and Apaolaza Ibáñez (2006), consumers will behave in an

environmentally friendly way if the benefit outperforms the cost. The question is, how is it

possible to influence consumers to perceive that this is the case? From the consumer

perspective, the benefit is easily measured in money but it is more difficult for the consumer to

measure the positive effect on the environment. Most of us have intentions to be

environmentally friendly but the process of getting there can be seen as un-desirable. As

Öhman (2010) states, social pressure is an important factor for buying socially desirable

FMCG. Marketers should use this knowledge in various ways; for example creating online

communities or clubs for consumers shopping a certain amount of their socially desirable

products. Translating what social pressure means to the consumer; the consumer wants social

recognition and attention for shopping in a socially desirable way. That would give the

consumer the benefit and the affirmation of doing the “right thing”. One way that the firm can

deal with this is to concretize this benefit to the consumer by giving away marketing materials

that clearly state that “the owner of this bag is a responsible consumer”. This would function

both like a “treat” and an affirmation for the consumers that shop a certain amount of the

firm’s socially desirable FMCG. Moreover, the product design of the package should clearly

display that this is a socially desirable FMCG. This can also be done through labeling. This

would make it easier to show other people that the consumer cares about the environment.

Previous research has found that shoppers which receive in-store coupons are more likely to

increase their level of unplanned purchasing. Other research has shown that promotion campaigns

do not work well for socially desirable FMCG since consumers expect these types of products to

be more expensive. Therefore it is questionable if in-store surprise coupons for socially desirable

FMCG would lead to an increased level of sales of these products.

 

  27  

Theories about high and low involvement in purchase situations show that FMCG could be related

to the latter type of low involvement (Knox & Walker, 2001; Ozretic-Dozen, 2007). Purchase

decisions of FMCG are typically performed quickly and in-store. (Hoyer, 1984). Existing research

studies found that between 45 percent and 70 percent of all purchase decision of FMCG are made

in-store. However, it is questionable if socially desirable FMCG follow traditional FMCG

characteristics as low-involvement products. Is the purchase of a socially desirable item really a

low-involvement decision that the consumer makes quickly or is it a decision taken outside the

store setting that is based on long-term ideology and beliefs? Maybe the purchase of FMCG that

are socially desirable initially could be seen as a high-involvement decision. However, gradually it

moves from high-involvement toward becoming a low-involvement decision when it becomes

more of a habit for the consumer to purchase socially desirable FMCG. If the purchase of FMCG

that are socially desirable initially are more of a high-involvement product, it is likely that the

consumer has planned the purchase to a higher extent than for traditional FMCG. Maybe the

consumer hasn’t decided exactly which socially desirable FMCG to purchase but there is a higher

chance that she has decided that the purchase should be socially desirable. If the decision is made

outside the store, then the greatest chance of influencing the consumer is also outside the store. A

high involvement consumer might have it in her “culture” to always or to a high extent buy

socially desirable purchases, non-depending on price and in-store display. It could be part of this

consumer’s beliefs and ideology. This suggests that more long-term marketing efforts such as

brand building in some cases can be more important than in-store marketing when it comes to

FMCG that are socially desirable.

Olshavsky and Granbois (1979) found that consumers sometimes make a “hybrid”- decision

where a part of the purchase decision is based on a recommendation from a sales person.

Therefore, the authors of this paper argue that if the in-store staff is better educated in the

production processes of FMCG that are socially desirable, sales of these products will increase.

The reasoning behind this is that if the socially desirable companies come to the stores to arrange

educational clinics, the in-store staff will increase their understanding of the production processes.

Through an increased understanding, the staff to a higher extent will work as spokes persons for

FMCG that are socially desirable and spread the word to their consumers. In turn, this will drive

sales of socially desirable FMCG.

 

  28  

3.2.5.1 Propositions

P4: The consumer initially makes a high-involvement decision when purchasing FMCG that are

socially desirable.

P5: Purchase-decisions of socially desirable FMCG are made outside the store to a higher extent

than more conventional FMCG.

P6: When in-store staff is educated on socially desirable FMCG, sales of these products will

increase.

3.3 In-Store Marketing In this section, existing theories of the opportunities and challenges for in-store marketing will be

covered. In-store marketing can be an important tool of a marketing strategy to improve sales.

3.3.1 Harsh Competition Calls for Improved In-Store Execution

The increased competition between grocery stores have forced them to focus more on in-store

merchandising and promotion strategies to keep improving their sales. (Kumar et al., 2006). For

example, they need to pay attention to price decision, aisle settings and display placements (ibid).

Since shoppers around the world spend millions of minutes in stores each year, the in-store

exposures may be seen as a great advertising opportunity for storeowners (Sorensen, 2009). The

advertiser's main task is to accelerate sales in the shopper space, without increasing the efforts

from the shopper. In this case, the effort can be seen as how much time it takes for the shopper to

finish a purchase (Sorensen, 2009).

3.3.2 Factors that Affect the Consumer’s Choice of Socially Desirable FMCG In-Store

Ngobo (2011) researched what the drivers are behind households choosing organic products in

grocery stores. Organic products are also credence products (Nelson, 1970) and mostly it is hard

for consumers to evaluate those. The purchase of organic products can therefore be seen as a risky

decision. Under uncertainty, consumers often rely on different information signals (ibid), such as

price (Dodds et al., 1991) and brand name (Erdem & Swait, 1998). In the study of Magnusson et

al. (2001), a very high share of the respondents claimed that it was tricky to know whether many

of the products in-store was organically produced or not, which is also a sign of uncertainty. For

uncertainty reasons, consumers negatively perceive products that have been distributed over long

distances (Ngobo, 2011). Therefore organic store brands are often more popular than national

 

  29  

brands (ibid). A reason for that is when large firms start to offer organic product lines, there is a

risk that many consumers start to doubt the authenticity of the organic label (Hughner et al., 2007).

For regular non-organic products, the situation is the opposite; here national brands often steal

market shares from lower-priced store brands (e.g., Blattberg & Wisniewski 1989; Sethuraman et

al., 1999).

A study conducted in California concluded that a major purchase constraint was the price level

(Jolly, 1991). This is in line with the findings of Magnusson et al. (2001). On the other hand,

consumers perceive price as a quality indicator for the organic product. Blattberg and Wisniewski

(1989) studied how price changes affected brand competition for low- and high-tier brands. They

found that low-tier brand mostly do not affect upper-tier brands, mainly because consumers

perceive a quality difference that is enough to preserve a difference between the low- and upper-

tier segments. However, price changes for upper-tier brands will affect brands that are in the same

price range but it might also affect lower-tier brands. Therefore, the competitive effects might be

asymmetric; one brand might a strong competitor for a second brand but the second brand will not

affect the first brand (ibid). Chandon et al. (2009) found that the price of the product did not have

any impact on the attention but more expensive brands tend to be recalled and considered to a

higher extent than low-price brands. When advertising levels are high, consumers more often use

performance related tactics than price related tactics. Instead, price tactics were increasingly used

when the consumer perceived the brands as more similar (Hoyer, 1986).

According to Jolly (1991), the time it takes to search for organic products in-store is a reason for

not buying organic. Better product information would also be desirable (Zanoli & Naspetti, 2002).

Chandon et al. (2009) found that attention the consumer pays in-store is often limited. However,

when consumers do pay more attention it will often also increase consideration and choice for new

brands.

3.3.3 Increased Sales through Aisle Placement

The most commonly used purchasing strategy by consumers is to take the shortest route from one

aisle, when finished the last required category purchase there, to the next aisle she must visit

(Klabjan & Pei, 2011). To increase the number of impulse purchases, frequently purchased

products should be placed tactically so consumers have to pass as many aisles and product

categories as possible (Inman et al, 2009). Two factors that affect shopping are; 1) how easy it is

 

  30  

to find the products in the store and 2) which product is the best choice (Sorensen, 2009). To

respond to these two factors, interactive digital in-store media such as hand-held shopping

assistants is one way to increase shopping efficiency and total sales (Sorensen, 2009; Klabjan &

Pei, 2011). This kind of technology will increase impulse buying since shoppers are routed to

certain locations in the store, based on their previous purchases (Klabjan & Pei, 2011). This

guidance will help the in-store consumer quickly find suitable products. When it is possible to

track shopping carts, an advantage for the consumer will be that no duplicate coupons will be

issued to the same consumer (Klabjan & Pei, 2011).

The aisle management strategy is important when considering improvements of cross-category

product sales and retails can benefit a lot from effective aisle management decisions (Bezawada et

al., 2009). Improvements of cross-category aisle management could for example be to place soft-

drinks closely to potato chips since the placement of “related products” often will drive sales for

both product categories. According to Bezawada et al. (2009), aisle placement can affect sales just

as much as more traditional marketing-mix variables such as price, product feature or display.

Therefore, both retailers and manufacturers should consider aisle placement as a way to increase

in-store sales. Manufacturers should coordinate marketing programs and cooperate with retailers

to improve cross-category sales. As a result, sales will accelerate and this is the main purpose of

in-store advertising (Sorensen, 2009).

3.3.4 Discussion: In-Store Marketing

Most of the authors of the literature reviewed in the section for in-store marketing seems to agree

that consumers look upon organic products with uncertainty and that they lack information and

guidance. According to the study by Magnusson et al. (2001), consumers claimed that it many

times was hard to know whether products were organically produced or not. According to

Hughner et al. (2007), many consumers doubt the authenticity of national organic labels, since

they expect that these products have been distributed over long distances. It is even more

important for these companies to inform consumers of why their products are organic. Jolly,

(1991) suggests that the time it takes to search for organic products is a limitation that prevents

them for purchasing organic products To reduce this kind of confusion, it is crucial that the

product information of socially desirable FMCG is very apparent in-store. Consumers need clearly

visible information of why they should purchase socially desirable FMCG instead of traditional

 

  31  

FMCG. This is especially important to attract consumers that are not consumers of socially

desirable FMCG today. Digital handheld shopping assistants could be a way of guiding the

consumer to the spots in-store where socially desirable FMCG are placed. The aisle placement

will also affect how easy it is for consumers to find products in the store (Sorensen, 2009).

Therefore, the producers of socially desirable FMCG should try to persuade storeowners to

arrange the store interior in a way that makes it easy for their consumers to find the socially

desirable FMCG that they are looking for. This is probably not easy since the storeowner is likely

to have other objectives than increasing sales of socially desirable FMCG in particular.

Some authors i.e. Jolly (1991) found that a major constraint to purchase organic products is that

the price is perceived as too high. Other research indicates the opposite; consumers expect that

socially desirable FMCG cost more than traditional FMCG and that they also see the price as a

quality indicator (Dodds et al., 1999; Ngobo, 2011). Consumers also tend to better recall products

that have a higher price (Chandon et al., 2009). Therefore it might be a mistake to sell socially

desirable FMCG at a discount. In general, consumers simply expect these kinds of products to be

more expensive. There will always be more price-conscious consumer segment in the retail market

but one of the tasks marketers of socially desirable FMCG stand in for is to define the right

segments to target, and the price-conscious segment is probably not one of those. Price cuts might

not even be possible anyway due to the likely more expensive production procedures of socially

desirable FMCG. Price tactics are more commonly used when consumers perceive brands as more

similar (Hoyer, 1986). However, it is doubtful if price tactics should be used for socially desirable

FMCG since consumers probably perceive them as different from traditional FMCG already.

Therefore, the authors expect that price tactics might be used between different socially desirable

FMCG’s, but not between socially desirable and non-socially desirable FMCG’s.

Bezawada et al. (2009) determined that the placement of “related products”, products which are

likely to be consumed on the same occasion, should be placed closely to each other to increase

sales. This should have implications on how socially desirable FMCG are placed on the aisles. As

mentioned previously in this section, according to previous research consumers are confused over

what socially desirable FMCG really are and where you find them in-store. This could be dealt

with in two different way; either all socially desirable products (non-depending on usage situation)

are placed in the same section of the store, almost like another store in-store only that only

 

  32  

contains socially desirable FMCG. In this way, it will be well defined where to find these

products. On the other hand, this is not likely to attract new consumers, as entering a complete

new section of the store is likely to be easy for the existing segment, but new consumers are likely

to be less exposed to socially desirable FMCG than if these products where placed to their

conventional siblings (i.e. socially desirable oatmeal next to conventionally produced oatmeal).

According to Sorensen (2009) the consumer shop more if it is easy to find the way in-store.

As Klabjan and Pei (2011) state, hand-held digital shopping assistants could be a good way for

stores to increase sales. The handheld computers could be used to identify which consumers that

already purchase socially desirable FMCG when these products are scanned. Based on this

information, the shopping assistants then can suggest more options of socially desirable products

that could be suitable for each individual consumer. The advantage of this would be that it

probably is easier to sell more socially desirable products to someone that already have purchased

some, than to someone that has not purchase any socially desirable FMCG at all. However, hand-

held digital shopping assistants can only work as a good guidance – it is still crucial that the in-

store interior, for example in form of signs, is clearly visible.

3.3.4.1 Proposition

P7: Price tactics might be used between different socially desirable FMCG but not between

socially desirable and non-socially desirable FMCG.

P8: Clear in-store information about FMCG which are socially desirable will help drive sales of

these products.

 

 

 

 

 

 

 

  33  

14. FINAL DISCUSSION ……  

In this section, the three different chapters of theory will be linked together and the model of the

eight propositions will be presented. The strengths and weaknesses of the model will be discussed.

This is followed by further research suggestions.

4.1 Approaching a Model With this thesis the authors aim to present a model on what existing literature say about how

producers of FMCG which are socially desirable can decrease the gap between consumers’

intention and actual purchase through marketing. To fulfill the purpose, the authors have reviewed

and combined existing literature within the fields of consumer value adding, in-store marketing

and decision-making. Some highlights of the theoretical discussions earlier in this thesis is

presented below.

The authors discussed if socially desirable FMCG follow traditional FMCG characteristics as low-

involvement products. The authors suggest that purchase decisions of socially desirable FMCG

initially are high-involvement decisions that often are formed outside the in-store-setting. This

suggests that more long-term marketing efforts such as brand building in some cases can be more

important than in-store marketing when it comes to FMCG that are socially desirable. However,

socially desirable FMCG might gradually change into becoming low-involvement when

consumers have formed a habit to purchase these types of products. The authors also discussed

that symbolic values should be highlighted in branding of socially desirable FMCG. The reason is

that since the instrumental differences between FMCG and socially desirable FMCG is limited, it

will be more efficient to focus on consumers’ self-identity, self-image and self-expression to

convince them of why they should purchase socially desirable FMCG. Further on, in-store

information about socially desirable FMCG is proposed to be important. Not only is it important

that producers provide consumers with clear product information about the socially desirable

FMCG. It is also crucial that consumers are guided to these products in-store, either through a

clear in-store interior or hand-held digital shopping assistants. In the chapter covering theories on

in-store marketing, no univocal conclusions could be drawn from existing literature on how the

placement of socially desirable FMCG should be done. Therefore the authors of this thesis decided

to not present a proposition for this topic.

 

  34  

Based on the extensive literature review, the authors have developed eight propositions that form

the model below (see figure 1).

Figure 1. Model

In the model, all of the propositions together eventually will increase sales of the total potential

consumer market. The model should not be seen as neither complete nor an image of reality,

because it has not been tested empirically and because all fields of marketing are not covered in

this thesis. For producers of socially desirable FMCG who wish to increase sales, they either need

to sell more to existing consumers or attract new consumers. Either way, consumers will be the

focal point. In this model, the authors have illustrated that by placing the total potential share of

consumers in the middle of the figure. Each single activity, expressed as propositions, have the

potential to transform consumer intentions to purchase socially desirable FMCG into actual

purchases. If a proposition would be completely fulfilled, it would equal a piece of the total

potential consumer segment (the pie). However, it is unrealistic to expect all propositions to be

fulfilled at the same time. Instead, the reader should view the model as propositions of which areas

 

  35  

that are of importance to decrease the gap between purchase intention and actual purchase. A

shortcoming of the model is that all propositions seem to contribute equally to the improved share

of total potential consumer market. Most likely, this is not the case.

4.2 Further Research Suggestions Except using the model of this thesis as the backbone for empirical research more theoretical

approaches are also suggested. It is likely that a more extensive study will result in more or

different propositions. Further research of areas of marketing not covered in this thesis would

probably provide this field of study with more and new perspectives. As mentioned in the section

covering delimitations, this thesis have chosen to focus more on in-store marketing than on other

marketing channels, such as TV advertisements and on-line marketing. Further research on what

kind of marketing activities that really are the most efficient for socially desirable FMCG is

welcomed. These subjects have only been touched lightly upon in this thesis, for example the

importance of long-term brand building. It can also be further investigated how and if aisle

management can be of importance for increasing the sales of socially desirable FMCG, since this

thesis could not present an unambiguous conclusion in this area. To test the model empirically,

research is needed for each proposition separately. This can be performed either in one single

study but it might also be possible to divide the research into several studies where each study

focus on different propositions. If that is the case, it is also needed to perform a “sum-up-study”

that will conclude all the propositions. Eventually, the model needs to be modified since empirical

research might suggest different solutions to increase total sales.

 

  36  

REFERENCES . …….. d'Astous, A., Bensouda, I. & Guindon, J. (1989). A Re-Examination of Consumer Decision Making for a Repeat

Purchase Product: Variations in Product Importance and Purchase Frequency, Advances in Consumer Research, vol. 16, pp. 433-440.

Aldata Solution (2007), Keeping the Consumer: Three Strategic Imperatives for Optimizing the In-Store Experience,

report. Bezawada, R., Balachander, S., Kannan, P.K., & Shankar, V. (2009). Cross-Category Effects of Aisle and Display

Placements: A Spatial Modeling Approach and Insights, Journal of Marketing, vol. 73, pp. 99–117. Belz, F. & Dyllik, T. (1996). Okologische Positionierungsstrategien, in Tomczak, T.R. and Roosdorp, A. (Eds),

Positionierung – Kernentscheidung des Marketing, Thexis Verlag, St Gallen, pp. 170-9. Blattberg R.C., Kenneth, J. & Wisniewski, K.J. (1989). Price-Induced Patterns of Competition, Marketing Science,

vol. 4, no. 8, pp. 291-309. Bryman, A. & Bell, E. (2007). Business reserach methods. Oxford: Oxford University Press Carpenter, G.S. & Nakamoto, K. (1989). Consumer preference formation and pioneering advantage, Journal of

Marketing Research, vol. XXVI, pp. 285-98. Carpenter, G.S. & Nakamoto, K. (1994). Reflections on consumer preference formation and pioneering advantage,

Journal of Marketing Research, vol. XXXI, pp. 570-3. Chandon, P. J., Hutchinson, W., Bradlow, E. T. & Young S. H. (2009). Does In-Store Marketing Work? Effects of

the Number and Position of Shelf Facings on Brand Attention and Evaluation at the Point of Purchase, Journal of Marketing, vol. 73, pp. 1–17.

Chryssochoidis, G. (2000). Repercussions of consumer confusion for late introduced differentiated products,

European Journal of Marketing, vol. 34 No. 5/6, pp. 705-722.

Cooper, H. (1998). Synthesizing research - A Guide for Literature Reviews, SAGE Publications Inc, Thousand Oaks.

Corey, R. E. (1975). Key options in marketing selection and product planning, Harvard Business Review, vol. 53 issue 5, pp. 119-128.

Dagens handel, Icas ekologiska försäljning ökar, Published 2011-02-07. <http://www.dagenshandel.se/dh/dagensh.nsf/0/B4B8038308DFDF7FC125783000314AF2?open>, Retrieved 2011-05-22.

Dagens Nyheter (DN:a), Flygresandet ökar starkt. (TT) Published 2010-12-15. <http://www.dn.se/ekonomi/flygresandet-okar-starkt>, Retrieved 2011-02-10.

Dagens Nyheter (DN:b), Svenskarnas köttkonsumtion ökar. (TT) Published 2010-06-30. <http://www.dn.se/ekonomi/svenskarnas-kottkonsumtion-okar-1.1131036>, Retrieved 2011-02-10.

Dens, N. & De Pelsmacker, P. (2010). Consumer response to different advertising appeals for new products: The

moderating influence of branding strategy and product category involvement, Brand Management, vol. 18, issue 1, pp. 50–65.

Demski, J. S. & Swieringa, R.J. (1981). Discussion of Behavioral Decision Theory: Processes of Judgment and

Choice, Journal of Accounting Research, vol. 19, no. 1, pp. 32-41. Diego, K. & Jinxiang, P. (2011). In-store one-to-one marketing, Journal of Retailing and Consumer Service,s vol.18,

Issue 1, pp.64–73

 

  37  

Dodds, W.B., Monroe, K.B. & Grewa D. (1991). Effects of Price, Brand, and Store Information on Buyers' Product Evaluations, Journal of Marketing Research, vol. XXVIU, pp. 307-19.

Einhorn, H.J. & Hogarth R.M. (1981). Behavioral Decision Theory: Processes of Judgment and Choice, Journal of

Accounting Research, vol. 19, no. 1, pp. 1-30. Erdem, T. & Swait J. (1998). Brand Equity as a Signaling Phenomenon, Journal of Consumer Psychology, vol. 7,

issue 2, pp.131-157.

Essoussi, L. & Zahaf, M. (2008) Decision making process of community organic food consumers: an exploratory study, Journal of Consumer Marketing, vol. 25, issue 2, pp. 95-104.

European Commission on Organic Farming, <http://ec.europa.eu/agriculture/organic/consumer-confidence/logo-labelling_en>, Retrieved 2011-05-30. Finisterra do Paço, A. M., Barata Raposo, M. L. & Filho, W. L. (2009). Identifying the green consumer: A

segmentation study, Journal of Targeting, Measurement and Analysis for Marketing, vol. 17, issue 1, pp. 17–25. Fiske, S. & Taylor S. E. (1984). Social Cognition, Random House, New York, NY. Grubb, E. L. & Grathwohl, H. L. (1967). Consumer self-concept, symbolism and market behavior: A theoretical

approach, Journal of Marketing, Part 1, vol. 31 issue 4, pp. 22-27. Hall, M. C. (2008). The Marketing of Organic Products: An Instrumental/Symbolic Perspective, Journal of Food

Products Marketing, vol. 14, issue 3, pp. 1-11. Hamzaoui, E. L. & Mehdi Z. M. (2008). Decision making process of community organic food consumers: an

exploratory study, Journal of Consumer Marketing, vol 25, issue 2, pp. 95–104. Hardin, G. (1968). The Tragedy of the Commons, Science, vol. 162, issue 3859, pp. 1221-1312.

Hart, C. (1998). Doing a literature Review Releasing the Social Science Research Imagination, London, Sage.

Hartmann, P. & Apaolaza Ibáñez, V. (2006). Green value added, Marketing Intelligence & Planning vol. 24, no. 7, pp. 673-680.

Heilman, C. M., Nakamoto, K. & Rao, A.G. (2002). Pleasant surprises: Consumer response to un-expected in-store

coupons, Journal of Marketing Research, vol. 39, no.2, pp. 242-252.

Holt, D. B. (2003). Professor Douglas B. Holt prepared this note as the basis for class discussion. Harvard Business School Brands and Branding. Reviewed March 11, 2003. (9-503-045) pp. 1-12.

Hoyer, W.D. (1984). An Examination of Consumer Decision Making for a Common Repeat Purchase Product, Journal of Consumer Research, vol. 11, pp. 822-829.

Hoyer, W.D. (1986). Variations in choice strategies across decision contexts: an examination of contingent factors, Advances in Consumer Research, vol. 13, issue 1, pp. 32–36

Hughner R.S., McDonagh P., Prothero, A., Shultz, C.J. & Stanton, S. (2007). Who are organic food consumers? A

compilation and review of why people purchase organic food, Joumal of Consumer Behaviour, vol. 6, pp. 94-110. ICA press release, Försäljningen av ekologiska varor fortsätter att öka. Published 2009-01-20. www.ica.se:

<http://www.pirab.se/FTP/Kund9779/ICAWebb/SV-2009-03-17-10-00/ICA.html>, Retrieved 2011-04-15.

ICA AB Year-end Report 2010, <http://www.ica.se/Om-ICA/About-the-ICA-Group/Finansiellt/Case/Year-end-report/>, Retrieved 2011-05-22.

 

  38  

Inman J. J., Winer, R.S. & Ferraro R. (2009). The Interplay Among Category Characteristics, Consumer Characteristics, and Consumer Activities on In-Store Decision Making. Journal of Marketing, vol. 73, pp. 19–29.

Irwin, J.R and Walker Naylor, R. (2009). Ethical Decisions and Response Mode Compatibility: Weighting of Ethical

Attributes in Consideration Sets Formed by Excluding Versus Including Product Alternatives, Journal of Marketing Research, vol. XLVI , pp. 234–246

Ji, M.F. & Wood, W. (2007). Purchase and Consumption Habits: Not Necessarily What You Intend, Journal of Marketing Psychology, vol. 17, issue 4, pp. 261–276.

Jolly, D. A. (1991). Differences between buyers and non-buyers of organic produce and willingness to pay organic

price premiums. Journal of Agribusiness,  vol. 9 no.1, pp. 97-111. Katz, D. (1960). The functional approach to the study of attitudes. Public Opinion Quarterly, vol. 24, pp. 163–204. Klabjan, D. & Pei, J. (2011). In-store one-to-one marketing, Journal of Retailing and Consumer Services, vol. 18, pp.

64-73. Knox, S. & Walker, D. (2001). Measuring and Managing Brand Loyalty, Journal of Strategic Marketing, vol. 9, no. 2,

pp. 111- 129. Kollat, D. T. & Willett, R. P. (1967). Consumer Impulse Purchasing Behavior, Journal of Marketing Research, vol. 4,

pp. 21-31. Kotler, P., Wong, V., Saunders, J. & Armstrong, G. (2005). Fourth European Edition Principles of Marketing,

Pearson Education Limited Edinburgh Gate Harlow, Essex, England. KRAV, <http://www.krav.se/System/Spraklankar/In-English/KRAV-/>, Retrieved 2011-05-30. Kumar, V., Shah, D. & Venkatesan, R. (2006). Managing retailer profitability - one customer at a time!, Journal of

Retailing, vol. 82, issue 4, pp. 277-294.

Levitt, T. (1980). Marketing Success Through Differentiation – of Anything, Harvard Business Review, vol. 58 issue 1, pp. 83-91.

Lievens, F. & Highhouse, S. (2003). The relation of instrumental and symbolic attributes to a company’s attractiveness as an employer. Personnel Psychology, vol. 56, issue 1, pp. 75–102.

Magnusson M.K., Arvola, A., Koivisto Hursti, U-K., Åberg, L. & Sjödén, P-O. (2001). Attitudes towards organic foods among Swedish consumers, British Food Journal, vol. 103, no. 3, pp. 209-226.

Michaelidou, N. & Dibb, S. (2008). Consumer involvement: a new perspective, The Marketing Review, vol. 8, no. 1, pp. 83-99.

Mittal, B. (1989). Measuring Purchase-Decision Involvement, Psychology & Marketing, vol. 6, issue 2, pp. 147-162.

Naturvårdsverket och ARS Research AB (2008). Allmänhetens attityder och konsumtionsbeteenden kopplat till klimatförändringen. Rapport 2, ARS P0986:II.

Nelson, P. (1970). Information and Consumer Behavior, Journal of Political Economy, vol. 78, issue 2, pp. 311-329. Ngobo, P.V. (2010). What Drives Household Choice of Organic Products in Grocery Stores?, Journal of Retailing,

vol.87, issue 1, pp. 90–100. Nordfält, J. (2009). Unplanned grocery purchases: the influence of the shopping-trip type revisited, Journal of

Consumer Behaviour, vol 8, pp. 1-13.

 

  39  

Olshavsky, R.W. & Granbois, D.H. (1979). Consumer Decision Making—Fact or Fiction?, Journal of Consumer Research, vol. 6, pp. 93-100.

Ozretic-Dosen, D., Skare, V. & Krupka, Z. (2007). Assessments of country of origin and brand cues in evaluating a

Croatian, western and eastern European food product, Journal of Business Research, vol. 60, pp. 130–136. Peattie, K. (1990). Painting marketing education (or how to recycle old ideas), Journal of Marketing Management, vol. 6 no. 2, pp. 105-25.

Peattie, K. (1992). Green Marketing, Longman Group, London.

Plummer, J. T. (2000). How personality makes a difference. Journal of Advertising Research, vol. 40 issue 6, p. 79–83.

Rees, W. E. (2002/2003). Is humanity fatally successful? Journal of Business Administration & Policy Analysis, vol. 30/31, pp. 67-100.

Sashi, C.M. & Stern, L.W. (1995). Product differentiation and market performance in producer goods industries, Journal of Business Research, vol. 33, pp. 115-27.

Sethuraman, R., Sririvasan, V. & Kim, D. (1999). Assymetric and Neighborhood Cross-price Effects: Some Empirical Generalizations, Marketing Science, vol. 18, issue 1, pp. 23-41.

Shao, W., Lye, A. & Rundle-Thiele, S. (2008). Decisions, decisions, decisions - Multiple pathways to choice, International Journal of Market Research, vol. 50, issue 6, pp. 797-816.

Sorensen, H. (2009). The In-Store "Audience”, Journal of Advertising Research, vol. 49, no. 2, pp. 176-179. Statistics Sweden, Attityder till ekologiska livsmedel December 2004.

<http://www.scb.se/Pages/GsaSearch____287280.aspx?QueryTerm=ekologisk+livsmedel&PageIndex=1&hl=sv>, Retrieved 2011-05-22. Stern, H. (1962). The Significance of Impulse Buying Today, Journal of Marketing, vol. 26, pp. 59-62. Stilley, K. M., Inman J. J. & Wakefield K.L. (2010). Spending on the Fly: Mental Budgets, Promotions, and Spending

Behavior, Journal of Marketing, vol. 74, pp.34–47. Straughan R. D. & Roberts J. A. (1999).  Environmental segmentation alternatives: a look at green consumer behavior

in the new millennium, Journal of Consumer Marketing, vol. 16, no. 6, pp. 559-575. Svenska Dagbladet (SvD), Därför blundar du för klimathotet. (Anna Lagerblad) Published 2010-11-30.

www.svd.se:<http://www.svd.se/nyheter/idagsidan/psykologi/darfor-blundar-du-for-klimathotet_5751885.svd> Retrieved 2011-02-10. Unga Aktiesparare, <http://www.aktiespararna.se/ungaaktiesparare/Nyheter-och-artiklar/CSR---Framtid-eller-fluga/> Retrieved 2011-06-01. Vlosky, R., Ozanne, L. & Fontenot, R. (1999). A conceptual model of US consumer willingness-to-pay for

environmental certified wood products. Journal of Consumer Marketing, vol. 16, issue 2, pp. 122–140. Zanoli, R. & Naspetti, S. (2002). Consumer motivations in the purchase of organic food, British Food Journal, vol.

104, no. 8, pp. 643-653. Öhman, N. (2010). Considering Intentions. Stockholm, Center for Consumer Marketing and Center for Retailing,

Economic Research Institute, Stockholm School of Economics (EFI).

 

  40  

.APPENDIX .    

Table 1. Compilation over Reviewed Articles

Author Found through Topic Analysis/Conclusion Other

Baker et al. - 2004

Essoussi & Zahaf - 2008

Underlying drivers of food choice values in Germany respectively in the UK.

The greatest similarity of underlying drivers between the UK and Germany was found to be "health and enjoyment". The greatest difference between the countries were found in the perceptual orientation connected with nature of the environment.

Not chosen for this thesis.

Belz and Dyllik -1996

Hartmann & Apaolaza Ibáñez -

2006

Article concerns positioning strategies for ecological products. It also discusses what kind of individual benefits the consumer is seeking.

The article suggest sthat consumers may derive self-expressive benefit from the socially visible consumption of green brands. Therefore, the perceived individual customer benefit might not be a sufficiently powerful motivation to green purchasing.

Bezawada - 2009

Business Source Premier

How display- and aisle settings are affecting in-store sales.

The aisle management strategy is important and retails can benefit a lot from effective aisle management decisions. Aisle placement can affect sales just as much as more traditional marketing-mix variables.

Blattberg and Wisniewski -

1989 Bezawada - 2009 How price changes affect

brand competition

Low-tier brand mostly don't affect upper-tier brands. However, price changes for upper-tier brands will affect brands that are in the same price range but it might also affect lower-tier brands.

Carpenter & Nakamoto -

1989

Carpenter & Nakamoto - 1994

The authors discuss if it is difficult for later entrants to "compete away" the pioneer's large market share.

The article suggest that the first mover advantage, under certain conditions depends on biases in buyers' preferences arising from the preference formation process.

Carpenter & Nakamoto -

1994

Business Source Premier.

This article continues the discussion of their work in 1989 (mentioned above)

The authors suggest that marketing strategy influences the evolution of consumer preferences. The article implies that preferences are shifting so that simply responding to consumer preferences might not be enough.

Chandon et al - 2009

Business Source Premier

Discussing if in-store marketing works

The authors found that in-store marketing works better towards well-educated, young and “opportunistic” customers. In-store marketing will work as a way to increase sales, at least to a certain extent.

 

  41  

Author Found through Topic Analysis/Conclusion Other

Chryssochoidis - 2000

Business Source Premier.

The article is trying to determine which the repercussions of the confusion of late introduced differentiated products such as organic products are.

Late introduced differentiated products are at a disadvantage compared to existing products in the marketplace as they suffer from consumer confusion regarding what the differentation is compared to conventional products.

Corey – 1975 Levitt - 1980

Case study of Crown, Cork and Seal Aluminium Company of America to illustrate that marketing strategies are not one-dimensional in reality.

Formulates a set of questions for the management to ask itself to be able to determine in which segment the product concept in question has most value to the end-consumer.

d'Astous et al. - 1989 Öhman

What type of decision processing that occurs when consumers are making a choice for a common but less frequently purchased product

The study shows that in-store decision-making is harder when the product is more important and purchased less frequently.

Follow-up study on Hoyer (1984)

Demski & Swieringa –

1981 Öhman To comment on Einhorn &

Hogarth's (1981) article.

Dens and De Pelsmacker -

2010

Business Source Premier

Investigates interaction effects between branding strategy,, advertising execution strategies and product category involvement (low and high) on consumers’ attitudes towards the product, purchase intention and the (parent) brand.

In general, line extensions of established brands are preferrable over new brands. There are greater differences between advertising appeals in both low- and high-involvement conditions for new brands than for brand extensions.

Dodds et al - 1991

Business Source Premier

How buyers´perception of product quality and value are affected by price, brand and store information.

Price has a positive effect of how buyers perceive the quality of the product. Favorable brands are perceived as being of better quality.

Einhorn & Hogarth - 1981 Öhman - 2010

The article focus o some of the methods of investigating decision-making.

Attention, memory, cognitive representation, conflict, learning, and feedback are important to understand decision-making,

Erdem and Swait - 1998

Business Source Premier

Explains the generation of brand equity.

Brands are information sources for the customers.Brands may tell consumers something about the product attribute.

Essoussi & Zahaf - 2008

Business Source Premier

Discovering differences in consumers’ motives that leading to consumption of organic food products.

For a third or the respondents, health was the main reason for purchasing organic products. Price are less important for current buyers and they want that the supply chain for the products should be as short as possible.

Finisterra do Paço et al. -

2009

Business Source Premier.

Focus on the identification of distinct market segments for environmentally friendly products in Portugal.

Consumers who buy green products do so for specific reasons, and that certain environmental and demographic variables are significant for differentiating between the ‘greener’ segment and other segments. The Portuguese sample did not always translate their environmental concerns into action.

 

  42  

Author Found through Topic Analysis/Conclusion Other

Fiske & Taylor - 1984 Chryssochoidis - 2000

This a book, therefore the whole of it has not been reviewed but parts of concerning on how consumers react to new information.

N/A

Grubb & Grathwohl -

1967

Business Source Premier.

The authors briefly review research and lay theoretical foundations of consumer behavior based upon an individual's self-conccept and the symbolic value of the goods she buys.

Because the self-concept is of value and of central importance to the individual, she will direct his be- havior to maintain and enhance his self-concept.

Hall - 2008 Business Source Premier.

The article looks at organics from an instrumental/symbolic perspective and discusses the marketing implications associated with this perspective.

Marketers need to take a very broad perspective when trying to understand organics and they need to decide which aspects of brand image they want to try to develop and the implications of doing so.

Hardin - 1968 Sustainability class at

the University of British Columbia

Covers the “the tragedy of the commons” which means that people often act out of a short-term personal goal. This might harm the collective in a long-term perspective.

The concept of “the tragedy of the commons”expresses how the motivation for the individual to act out of a long term environmental goal to support more the collective is low. This is because the reward or benefit of paying the higher price will happen in the future or not at all.

Hartmann & Apaolaza

Ibáñez -2006

Business Source Premier.

The article discusses the role of emotional benefits, particularly those based on the hypothetical human affinity with nature, and is a reasoning paper rather than an empirically tested study.

The key challenge for green marketers is to strengthen individuals’ perception of the individual benefits to be gained from “going green” by adding more and stronger emotional values to green brands.

Heilman et al - 2002

Business Source Premier

What impact that in-store coupons have on the shopper's total basket of purchase

Shoppers who received “surprise-coupons” increased their level of unplanned purchasing. Customer who planned to buy a product often purchased an increased quantity if it was a couponed item.

Holt - 2002 Brand Management

class at University of British Columbia.

The case material concern branding and the importance of brands. Furthermore, the importance for marketers to create a strong brand culture is emphasized.

Branding provides an opportunity for the firm to shape the customer’s perceptions; thereby it also creates a window to influence the perceived value of the product.

Hoyer - 1984 Öhman - 2010

What type of decision processing that occurs when consumers are making a purchase choice for a common, frequently and typically low-involvement purchased product

In general, customers that are purchasing FMCG are making an extremely quick decision. A large portion of the decisions are made outside the in-store situation.

Hoyer - 1986 Öhman - 2010

To what extent various aspects of the task influence consumers to employ a particular type of choice rule or heuristic.

There are no consistent decision process across all choice contexts. When advertising levels are high, consumers more often use performance related tactics than price related tactics. When the perceived similarity between brands was high, price tactics was more commonly used.

 

  43  

Author Found through Topic Analysis/Conclusion Other

Hughner et al - 2007

Business Source Premier

Who the organic food consumers are

Parents to young children are more likely to purchase organic grocery products. In general, young people tend to have a positive attitude to organic food but older people are the most likely purchasers.

Inman et al - 2009

Business Source Premier

How category characteristics, customer characteristics and customer activities does affect in-store decision making.

The results show that coupon useage decreases the likeliness of unplanned purchasing. In-store decision-making is affected by gender, household size and store familarity.

Irwin & Naylor - 2009

Business Source Premier

Research about if consumers’ weighting of particular attributes differed by response mode, regardless of framing.

Ethical attributes were weighted more by participants in exclusion mode than in inclusion mode. Ethical attributes are, according to the respondents, more justifiable and morally relevant in exclusion than in inclusion.

Ji & Wood - 2007

Business Source Premier

Research about how customers' habits are following their stated intentions.

The conclusion from this article is that customers often repeat habits in daily life even if they reported intentions to not do so. Intentions only guided behavior in absence of strong habits. In other words, what you say you do is many times not the same as what you actually do

Jolly - 1991 Business Source Premier

Differences between buyers and non-buyers of organic products

The price and search cost are important constrains for customers to purchase organic products. People with a high income were more likely to purchase organic products.

Katz - 1960

Hall - 2008

The article concerns the functional approach in the attitude literature. Katz discusses the link instrumental attributes have with the need to maximize benefits and minimize cost and that symbolic characteristics generally correspond to non-product related attributes.

The author outlines the basic notion of that people hold attitudes toward objects, events, issues and behaviors for various reasons. That is, attitudes fulfill functions for the individual, such as maximizing rewards, expressing one's values, etc.

Klabjan & Pei - 2011

Business Source Premier

To show how one-to-one marketing can be carried out during the shopping experience by using PDA devices.

Use the digital shopping assistant to provide customers with digital coupons. An advantage for the customer will be that no duplicate coupons will be issued to the same customer.

Knox and Walker - 2001

Business Source Premier

The role of brand loyalty as a measurement of effective brands marketing.

Brand support and brand commitment was found to be needed if loyalty should occur. Four purchasing styles were identified: loyals, habituals, variety seekers and switchers.

 

  44  

Author Found through Topic Analysis/Conclusion Other

Kollat and Willett - 1967

Öhman - 2010

Discover if certain shoppers are more likely to make unplanned purchases and what kinds of customers that are most susceptible to unplanned purchasing.

The buyer's sex doesn't affect the unplanned purchasing behavior. Fill-in trips are characterized by a lower level of unplanned purchasing than major shopping trips. The authors noticed that, in general, the greater number of products purchased, the greater percent of unplanned purchases.

Kotler and Levy - 1972

Business Source Premier

An attempt to explain marketing from the buyer's side.

Sometimes the seller has the advantage and in this situation the buyer have to apply strategies to be able to achieve the purchase. The authors presents four strategies to over-bridge this: through coercion, inducement, education or pursuation.

Kumar et al - 2007

Business Source Premier

Discovering how customer lifetime value (CLV) can be determined individually to increase profit in a retail store.

The authors found that CLV increases when the customer stays longer with the store and purchases goods more frequently.

 

Levitt - 1980 Brand management

class at University of British Columbia.

The author is discussing in which ways differentation is the key to success in marketing. He is making a difference of the offered product and the generic product. Discusses this through different empirical examples.

Differentation is a very powerful tool in how to customers attract value to a product in proportion to its perceived ability to help solve their problems or meet their needs. All else is derivative "The product ... is the total package of benefits the ciustomer receives when he or she buys" Made us look up the article by Corey Raymond, as the quote seems good.

Lievens & Highhouse - 2003

Hall - 2008

The authors focus on a marketing-based angle to the study of the attractiveness of organizations. Drawing on the instrumental-symbolic framework from the marketing literature.

The study demonstrates that the instrumental-symbolic model provides practitioners with a useful framework.

The article using a different perspective of marketing but considered relavant for this thesis anyhow since it contains interesting reasoning regarding symbolic and instrumental values in brand management.

Magnusson et al - 2001 Hughner et al - 2007 Swedish consumers attitude

towards organic food.

A high percentage of the sample are positive towards organic products but only a minory have intentions to actually purchase organic products. A very high share of the respondents claimed that it was hard to know whether many of the products in-store was organically produced or not.

Magnusson et al - 2003

Business Source Premier

Attitudes and behavior towards organic foods.

Organic food purchases was found to be strongly correlated to perceived human health benefit. Egoistic motives are important for the choice to purchase organic products.

 

  45  

Author Found through Topic Analysis/Conclusion Other

Michaelidou & Dibb - 2008

Business Source Premier

A literature study of different views of consumer involvement.

The choice of shopping channel may affect the level of purchase involvement.

Mittal - 1989 Business Source Premier

The author develops a scale of purchase decision involvement.

The scale consisted of four measurements: perceived brand differences, degree of caring, importance of right brand selections, and concern with the outcome.

Nelson - 1970 Business Source Premier

A theoretical model of how consumers quest of quality information of goods.

Customers have a basic alternative to search of information; they may use experience.

 

Ngobo - 2011 Business Source Premier

Drivers in a household's choice of organic products in grocery stores.

The probability to purchase organic products is higher among the college educated, high income, older families and high-level occupation groups. Customers negatively perceive products that have been distributed over long distances. Store brands are more popular than national brands.

Nordfelt - 2009 Öhman (2010)

Discover if the type of shopping trip influence the number of unplanned purchases.

The type of shopping trip influences the number of unplanned purchases. In general, it is more likely with unplanned purchases for a fill-in trip than for a major trip, mainly because of the time factor.

Olshavsky and Granbois - 1979

Öhman Research about if customers necessarily perform a pre-purchase valuation.

The authors conclude that pre-purchase decision-making exist. However, the also found that a decision process in many cases never occurs, not even on the first purchase.

Ozretic-Dosen - 2007

Business Source Premier

Consumers' attitude towards a low involvement food category.

The authors found that knowledge about where the brand has its origin has a strong motivational factor on consumers' purchase related behavior.

 

Peattie - 1990 Business Source Premier.

This paper takes a critical review of incorporating green issues in marketing strategies and explores the implications for marketing education. . Examples of these factors such as consumer and management attitudes, pressure groups and media interest are discussed.

Marketers need to continue to educate themselves in the growing area of green marketing.

Peattie - 1992 Chryssochoidis - 2000

This a book, therefore the whole of it has not been reviewed but certain parts of the book deals with the fact that diffusion of organic products in the marketplace is currently suffering despite their importance for sustainable economic development.

N/A

 

  46  

Author Found through Topic Analysis/Conclusion Other

Plummer - 2000 Hall - 2008

Discusses the importance of better understanding the whole concept of personality and its relationship to how consumers respond. If it would be possible to isolate and understand the basic driving forces, such as personality traits, that predisposes consumers to act in certain ways marketing would be easier.

Even though working with personality segmentation of consumer populations has not yet been proven to be successful, marketers should be motivated to work with brand personality as a new arena of marketing

Rees, William E. - 2002/2003

Sustainability class at University of British

Columbia

Question that is discussed is what we can do about our environmental crisis given that H. Sapiens is inherently biased against sustainability by nature. The primary goal of all life is to survive, but the self-oriented aggressive-defensive behaviours that served so well for that purpose early in our evolution are maladaptive in the ecologically full world today.

The point is that the sustainability crisis may be humanity's final opportunity to rise above mere animal instincts. Humans need to recognize that our best chance for survival lies in collective self-restraint and mutual cmmitment to the common good. This is an unaccustomed mode of human political behaviour.

Inspiration to the overall paper idea.

Sashi & Stern - 1995

Business Source Premier

In this paper the authors examine the relationship between product differentiation strategies and profitability for different categories of producer goods.

The results indicate that product differentiation is based on "custom services".

Sethuraman, 1999 Bezawada, 2009

Discovering if the neighborhood price effect and the assymetric price effect are generalizable across product categories.

Assymetric price effect is not generalizable. There is a strong generalizable neighborhood price effect. For traditional products, national brands often steal market shares from lower-priced store brands.

Shao et al. - 2008

Business Source Premier

Research about if consumers apply multiple decision waves to choose a durable product.

Consumers uses more than two decision waves to make a purchase decision for a durable product. However, the number of waves in this decision scenario might be low compared to reality since the real world is even more complex.

 

Sherman, S - 1980 Öhman - 2010

The work will try to demonstrate the scope of people's inability to predict their own social behavior. Finally the research is designed to investigate the behavioral effects of mispredictions.

The result of the study shows that by having people consider beforehand what their behavior might be in a situation involving moral behavior, their actual be- havior in that situation will be more socially desirable, acceptable, and moral than if they had not made initial predictions.

Not chosen for this thesis. Doesn't put emphasis on a certain type of consumption, more discusses the difference between intention and moral behavior.

Sorensen - 2009

Business Source Premier

Discussing how store design/layout and aisleness will have impact on shopper efficiency.

In-store exposures may be seen as a great advertising opportunity for storeowners. The advertiser's main task is to accelerate sales in the shopper space, without increasing the efforts from the shopper. In this case, the effort can be seen as how much time it takes for the shopper to finish a purchase.

 

  47  

Author Found through Topic Analysis/Conclusion Other

Steenkamp and Kumar - 2009

Business Source Premier

The article focuses on that companies not should ignore hard-discount retailers.

Hard-discounters keep the number units in-store low, which reduces supply-chain costs. Discount retailers are forecasted to increase by 50% over the next 5 years.

Not chosen for this thesis.

Stern - 1962 Öhman Refining the definition "impulse buying"

The author identified nine factors that influence impulse buying: Low price, Marginal need of product, Mass distribution, Self-service, Mass advertising, Prominent store display, Short product life, Small size or light weight and Ease of storage. The author concludes that impulse buying is irrational and therefore impossible to influence.

Stilley et al - 2010

Business Source Premier

Discovering if the impact of promotions depend on whether the shopper still has in-store slack remaining in his or her mental budget.

In general, the effect of in-store savings depends of if they appear before or after the customer's slack is depleted. If savings appear before the slack is depleted, it results in stock-piling shopping by high income customers. If savings occur after the slack is depleted, it will result in increased purchase of unplanned products.

Straughan & Roberts -1999

Business source premier.

Looking into the future of green marketing, and examines the dynamic nature of ecologically conscious consumer behavior.

Findings indicate that, despite a significant amount of past research attention, demographic criteria are not as useful a profiling method as psychographic criteria.

Williams & Dardis -1972 Öhman - 2010

The study examined shopping behavior for soft goods - apparel and household textiles - to determine the degree of purchase planning and shopping activity for such goods.

In conclusion the relatively low degree of shopping activity for all items examined indicates the importance of store choice by consumer. For the manufacturer of soft goods the low level of brand preference combined with low shopping activity suggest increased store reliance by the consumer.

Not chosen for this thesis. Concerns different kinds of products not relevant for this thesis.

Zanoli and Naspetti - 2002 Emerald Consumer motivations when

purchasing organic products.

Lower prices and better distribution would increase the demand for organic products. Better product information would also be desirable. Healthiness is a major motivator of why the respondents are purchasing organic products.

Öhman - 2010 Starting point for this thesis, found through

other course work

Dissertation with several chapters covering different topics of Intentions and Consumer Behavior.

There is a gap between the intention to purchase socially desirable products and the actual purchase. This is due to various reasons.