Consumers, Society and Marketing : A Sustainability Perspective 9783031393587, 9783031393594

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CSR, Sustainability, Ethics & Governance Series Editors: Samuel O. Idowu · René Schmidpeter

Dilip S. Mutum Ezlika M. Ghazali

Consumers, Society and Marketing A Sustainability Perspective

CSR, Sustainability, Ethics & Governance

Series Editors Samuel O. Idowu, London Metropolitan University, Calcutta House, London, UK René Schmidpeter, Cologne Business School, Cologne, Germany

In recent years the discussion concerning the relation between business and society has made immense strides. This has in turn led to a broad academic and practical discussion on innovative management concepts, such as Corporate Social Responsibility, Corporate Governance and Sustainability Management. This series offers a comprehensive overview of the latest theoretical and empirical research and provides sound concepts for sustainable business strategies. In order to do so, it combines the insights of leading researchers and thinkers in the fields of management theory and the social sciences – and from all over the world, thus contributing to the interdisciplinary and intercultural discussion on the role of business in society. The underlying intention of this series is to help solve the world’s most challenging problems by developing new management concepts that create value for business and society alike. In order to support those managers, researchers and students who are pursuing sustainable business approaches for our common future, the series offers them access to cutting-edge management approaches. CSR, Sustainability, Ethics & Governance is accepted by the Norwegian Register for Scientific Journals, Series and Publishers, maintained and operated by the Norwegian Social Science Data Services (NSD)

Dilip S. Mutum • Ezlika M. Ghazali

Consumers, Society and Marketing A Sustainability Perspective

Dilip S. Mutum School of Business Monash University Malaysia Subang Jaya, Malaysia

Ezlika M. Ghazali Faculty of Business and Economics University of Malaya Kuala Lumpur, Malaysia

ISSN 2196-7075 ISSN 2196-7083 (electronic) CSR, Sustainability, Ethics & Governance ISBN 978-3-031-39358-7 ISBN 978-3-031-39359-4 (eBook) https://doi.org/10.1007/978-3-031-39359-4 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Paper in this product is recyclable.

In Loving Memories of Our Fathers, Whose Wisdom and Guidance Continue to Inspire Us: Mr. Mohd Ghazali Mohd Isa & Dr. Samarendra Singh Mutum

Preface

As concerns about the environment and social responsibility intensify, the field of marketing has pivoted towards sustainability. Studying the interface between consumers, society, and marketing is vital to grasp the intricate dynamics between individuals and their consumption choices, especially in a world where we’re constantly bombarded with ads and sales pitches. He study of the interface between consumers, society, and marketing is crucial for understanding the complex interactions between individuals and the products and services they consume and the resulting implications. Understanding this connection is now more crucial than ever in today’s culture, where we are inundated with advertisements and sales messaging. This book traces the evolution of marketing, from its origins in the early days of commerce to its current state as a dynamic and ever-adapting discipline. As concerns about the environment and social responsibility have become increasingly important, the field of marketing has had to adapt to a new focus on sustainability. We recognised a gap: There was no single volume that tackled the interconnected concepts such as the metamorphosis of consumer representation, green marketing, social marketing, and sustainable marketing. Diving into the latest research and theories on the subject, we provide insights into the various factors that shape consumer behaviour and the broader impacts of marketing on society. Our goal is to present a meticulous exploration of how marketing and society intersect and the ripple effects of this confluence on individuals, communities, and overarching cultures. Whether you are a student, a professional, or a curious reader, we hope this book will provide an indispensable trove of knowledge. While some literature approaches the subject from an ethical stance and others from a critical marketing lens, this book merges both perspectives and takes a broader sustainability viewpoint. We spotlight the various ways in which businesses are incorporating sustainability into their marketing strategies, and the impact these efforts are having on consumers, the economy, and the planet. We want to highlight the fluidity of consumer roles and representations. Marketing tactics are predicated on consumer behaviour research, but this relationship is reciprocal—consumer behaviour is vii

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Preface

concurrently moulded by marketing endeavours and influenced by marketing activities. This book is ultimately a call to action. We urge readers to critically assess both marketing’s benevolent applications and its omnipresent influence. Our ambition? To usher in a more informed, active, and empowered society where marketing champions transformative change. Subang Jaya, Malaysia Kuala Lumpur, Malaysia

Dilip S. Mutum Ezlika M. Ghazali

Acknowledgements

Our book has been influenced by so many people. From Dilip S. Mutum. First, I would like to acknowledge my colleagues at the University of Nottingham both in the UK and Malaysia. It was while teaching the Marketing and Society module that the seeds of this book were sown. I would like to thank my students for the interesting discussions and feedback while teaching the module. Their unique perspectives, thought-provoking questions, and enlightening discussions have played an instrumental role in the development of this book. From Ezlika M. Ghazali. I would like to thank my amazing MBA students. Your enthusiasm, experiences, and fresh perspectives have been a constant source of inspiration. Without your input, we would not have been able to produce this book. I would also like to extend my heartfelt appreciation to all the individuals including my colleagues, who generously shared their time, expertise, and insights. Your expertise and willingness to engage in thoughtful conversations have been instrumental in shaping its content and ensuring its relevance. We would also like to extend our deep appreciation and gratitude to our research assistant Caleb Chai, for his invaluable contributions to this book. His efforts in gathering and organising information were helpful in shaping the content of this book. Both of us are grateful to our respective organisations—Monash University Malaysia and University of Malaya, which provided the necessary resources and support, enabling us to undertake this ambitious project. We must acknowledge the financial support from the Ministry of Higher Education, Malaysia. It was while working on our research project on green consumer behaviour in Malaysia, funded by the Fundamental Research Grant Scheme (FP0262016), that we decided to build on our research and write this book. Last but not the least, we would like to acknowledge our loved ones for their unconditional support, unwavering encouragement, patience, and understanding throughout this journey. Any errors are our own.

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Contents

1

Consumption and Consumer Society . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Consumer Sovereignty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 Who Is Responsible for Consumption Outcomes? . . . . . . . . . . . . 1.5 Consumer Empowerment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5.1 Degree of Empowerment . . . . . . . . . . . . . . . . . . . . . . . 1.5.2 Antecedents of Consumer Power . . . . . . . . . . . . . . . . . . 1.6 Consumer Disempowerment and Vulnerability . . . . . . . . . . . . . . 1.6.1 Consumer Vulnerability . . . . . . . . . . . . . . . . . . . . . . . . 1.6.2 Vulnerability Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6.3 The Link Between Consumer Vulnerability and Consumer Disempowerment . . . . . . . . . . . . . . . . . . 1.6.4 Age-Related Consumer Vulnerability . . . . . . . . . . . . . . 1.7 Consumer Limitations that Lead to Disempowerment . . . . . . . . . 1.7.1 Lack of Access to Options/Choices . . . . . . . . . . . . . . . . 1.7.2 Lack of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7.3 Lack of Ability, Skill, and Motivation to Gather and Evaluate Information . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7.4 Exclusionary Practices . . . . . . . . . . . . . . . . . . . . . . . . . 1.8 Conditions That Facilitate Consumer Sovereignty and Empowerment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8.1 Access to Complete Information and Ability to Evaluate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8.2 Access and Freedom of Options/Choices . . . . . . . . . . . . 1.8.3 Better Legal Environment and Public Policy . . . . . . . . . 1.9 Consumer Empowerment Support from Businesses/Industries . . . 1.9.1 The Ikea Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9.2 Empowerment and Advertising . . . . . . . . . . . . . . . . . . .

1 1 1 2 5 6 7 8 11 12 13 14 15 15 15 16 16 16 19 20 21 21 23 23 24

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1.10 Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25 25

Evolution of Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Marketing as a Theory and the Evolution of Marketing Thought . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Synthesis of Micro- and Macro-Marketing . . . . . . . . . . . . . . . . . 2.4 The Three Schools of Marketing Thought . . . . . . . . . . . . . . . . . . 2.4.1 The Apologists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.2 The Social Marketers . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4.3 The Reconstructionists . . . . . . . . . . . . . . . . . . . . . . . . . 2.5 Moving Beyond Academic Theories . . . . . . . . . . . . . . . . . . . . . 2.6 Marketing Through the Lens of Feminism . . . . . . . . . . . . . . . . . 2.6.1 Commodity Feminism . . . . . . . . . . . . . . . . . . . . . . . . . 2.6.2 Femvertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 Critical Perspective of Marketing . . . . . . . . . . . . . . . . . . . . . . . . 2.8 Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31 31 32 33 35 35 36 36 37 39 39 40 41 42 42

Benefits and Detriments of Marketing . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Primary Benefits of Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.1 Social Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.2 Marketing by Non-profit Organisations . . . . . . . . . . . . . 3.2.3 Contributions to Economic Development . . . . . . . . . . . . 3.2.4 Benefits to the Economic System and Economic Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.5 Employment Opportunities . . . . . . . . . . . . . . . . . . . . . . 3.2.6 Benefits to Consumers . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Key Criticisms of Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.1 Unfair Practices and Consumer Exclusion . . . . . . . . . . . 3.3.2 The Promotion of Materialism over Other Social Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.3 Globalisation or Neo-Imperialism . . . . . . . . . . . . . . . . . 3.3.4 Intellectual Property Monopolies . . . . . . . . . . . . . . . . . . 3.3.5 Change in Food Habits . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.6 Genetically Modified Products . . . . . . . . . . . . . . . . . . . 3.3.7 Environment Degradation . . . . . . . . . . . . . . . . . . . . . . . 3.3.8 Washing Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

45 45 45 46 46 48

Ethical Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 The Body Shop: The Ethical Company . . . . . . . . . . . . . . . . . . . . 4.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

71 71 71

49 51 52 54 54 56 57 58 59 59 60 60 63 64

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4.3 4.4 4.5

72 74 75 77 78 78 79

Ethics: Terminology, Definitions, and Concepts . . . . . . . . . . . . . Perceptions Towards Marketing from an Ethical Perspective . . . . Definitions of Ethical Marketing . . . . . . . . . . . . . . . . . . . . . . . . 4.5.1 Socially Responsible Marketing . . . . . . . . . . . . . . . . . . 4.5.2 Quality-of-Life Marketing . . . . . . . . . . . . . . . . . . . . . . . 4.6 Ethical Codes in Marketing and Businesses . . . . . . . . . . . . . . . . 4.7 American Marketing Association: Code of Conduct . . . . . . . . . . 4.8 The Canadian Marketing Association: Canadian Marketing Code of Ethics and Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9 Other Ethical Marketing Codes . . . . . . . . . . . . . . . . . . . . . . . . . 4.9.1 The United Kingdom’s Information Commissioner’s Office (ICO): Direct Marketing Code of Practice (ICO, 2020) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9.2 Association for Data-Driven Marketing & Advertising: Direct Marketing Code of Practice . . . . . . . . . . . . . . . . 4.10 Corporate and Business Ethical Codes . . . . . . . . . . . . . . . . . . . . 4.10.1 Google: Don’t Be Evil . . . . . . . . . . . . . . . . . . . . . . . . . 4.10.2 PepsiCo: Act with Integrity . . . . . . . . . . . . . . . . . . . . . . 4.11 The Application of Ethics in Marketing . . . . . . . . . . . . . . . . . . . 4.12 Unethical Marketing Practices and its Consequences . . . . . . . . . . 4.13 Blurred Boundaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.14 Concluding Thoughts: Is Ethical Behaviour Genuine? . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Sustainable Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Sustainability Versus Sustainable . . . . . . . . . . . . . . . . . . . . . . . . 5.3 Sustainability Landmarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.1 1987: Sustainability Conference . . . . . . . . . . . . . . . . . . 5.3.2 1992: Rio Earth Summit . . . . . . . . . . . . . . . . . . . . . . . . 5.3.3 2000: The Millennium Development Goals . . . . . . . . . . 5.3.4 2015: Paris Agreement . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 Green Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 Sustainable Marketing Concept and Principles . . . . . . . . . . . . . . 5.6 Ethical Versus Sustainable Marketing . . . . . . . . . . . . . . . . . . . . . 5.7 Five Sustainable Marketing Principles . . . . . . . . . . . . . . . . . . . . 5.7.1 Consumer-Oriented Marketing . . . . . . . . . . . . . . . . . . . 5.7.2 Customer Value Marketing . . . . . . . . . . . . . . . . . . . . . . 5.7.3 Innovative Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7.4 Sense-of-Mission Marketing . . . . . . . . . . . . . . . . . . . . . 5.7.5 Societal Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.8 Corporate Social Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . 5.8.1 CSR Today and in the Future . . . . . . . . . . . . . . . . . . . . 5.9 Sustainable Marketing Mix: The 4C Approach . . . . . . . . . . . . . .

80 81

82 82 83 84 85 86 87 88 88 89 93 93 94 96 96 96 97 97 98 99 100 100 101 102 103 104 105 106 107 109

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Contents

5.9.1 Consumer Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.9.2 Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.9.3 Convenience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.9.4 Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.10 Two Examples of Sustainable Initiatives by the Private Sector . . . 5.10.1 Apple . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.10.2 Unilever . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.11 Sustainable Marketing Barriers and Challenges . . . . . . . . . . . . . . 5.11.1 Internal Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.11.2 External Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.12 Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

109 110 111 112 113 113 114 115 115 116 117 118

Social Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 History of Social Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 Social Marketing Mix and Principles . . . . . . . . . . . . . . . . . . . . . 6.3.1 Social Marketing Mix: The 4Ps of Social Marketing . . . . 6.4 Principles of Social Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 Social Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5.1 Social Entrepreneur Versus Business Entrepreneur . . . . . 6.5.2 Social Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5.3 Antecedents of Social Entrepreneurship . . . . . . . . . . . . . 6.6 Critical Marketing and Social Marketing . . . . . . . . . . . . . . . . . . 6.7 Applications of Social Marketing: Success, Failure, and Mixed Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7.1 The Truth® Campaign in the USA . . . . . . . . . . . . . . . . 6.7.2 The Indian Institute of Management’s (IIM) Family Planning and Condom Awareness Programme in India . . 6.7.3 Done 4 Campus Drinking Norm Campaign in the USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8 Current Challenges and Opportunities of Social Marketing . . . . . 6.8.1 Addressing Equity and over-Fixation on Individual Behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8.2 Success of Social Networks . . . . . . . . . . . . . . . . . . . . . 6.8.3 Sustainability and Scale . . . . . . . . . . . . . . . . . . . . . . . . 6.8.4 Strategic Planning and Design Issues . . . . . . . . . . . . . . . 6.8.5 Data Collection Difficulties . . . . . . . . . . . . . . . . . . . . . . 6.9 Chapter Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

123 123 125 127 127 131 133 134 134 135 135

140 140 141 142 142 143 144

Evolving Consumer Representations and Roles . . . . . . . . . . . . . . . . 7.1 VSCO Girls and the Environment . . . . . . . . . . . . . . . . . . . . . . 7.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 Consumers Consume What they Are . . . . . . . . . . . . . . . . . . . .

149 149 150 150

. . . .

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7.3.1

Ethical Consumption Versus Sustainable Consumption Versus Green Consumption . . . . . . . . . . . . . . . . . . . . . 7.4 Consumer Activism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4.1 Buycotting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4.2 Boycotting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4.3 Naderism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4.4 Consumer Activism and Social Movements . . . . . . . . . . 7.4.5 Political Consumerism . . . . . . . . . . . . . . . . . . . . . . . . . 7.5 Forms of Consumer Activism . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6 Consumer Resistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6.1 Consumer Revenge . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6.2 Subvertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6.3 Counterculture and Rebellious Consumption . . . . . . . . . 7.7 Alternative Forms of Consumption . . . . . . . . . . . . . . . . . . . . . . 7.7.1 Thrifting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7.2 New Consumption Communities . . . . . . . . . . . . . . . . . . 7.7.3 Alternative Monetary Systems . . . . . . . . . . . . . . . . . . . 7.8 Concluding Thoughts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

151 152 153 154 154 154 156 156 159 160 160 161 163 164 164 165 166 166

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

About the Authors

Dilip S. Mutum is Professor of Marketing at School of Business, Monash University Malaysia. Dilip's research interests include digital consumption and sustainable ethical marketing. His research work has been published within a range of publications. Dilip has also advised various organisations on sustainability, digital transformation, and digital marketing strategies. Ezlika M. Ghazali is Associate Professor at the Department of Marketing, Faculty of Business and Economics, University of Malaya. Her research interests include consumer behaviour, switching barriers, augmented reality marketing, online retailing, sustainable marketing, and social entrepreneurship. Ezlika has widely published in several high ranked journals.

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Chapter 1

Consumption and Consumer Society

1.1

Introduction

Marketing has made vast contributions to economic development, which in turn has helped deliver consumer welfare based on the premise of consumer sovereignty. Consumers now play an active role in the formation of public policy, social welfare, and environmental health through their consumption patterns. As such, the underlying question remains—what does it mean to be a sovereign consumer? Therefore, this chapter examines the consumer sovereignty model and how it leads to consumer empowerment. At the same time, as customer empowerment continues to grow in the marketplace, firms must adapt their relationships with consumers accordingly. However, many consumers remain vulnerable in different circumstances due to certain restrictions and marketing practices. Therefore, there is a growing need to consider interventions that facilitate consumer empowerment and limit vulnerability in the marketplace.

1.2

Consumption

At its simplest, consumption can be defined as the act of using resources to fulfil or satisfy one’s needs and desires. However, the concept and consequences of consumption continue to be hotly debated in both academia and society in general. Consumption is not always as straightforward as purchasing some water to quench one’s thirst; it is also a value-laden concept that reflects a consumer’s own principles. For example, environmentalist consumers might only support organic and local products or companies that are carbon friendly. Minimalist grocery shoppers prefer to buy products with as little packaging as possible to reduce waste.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 D. S. Mutum, E. M. Ghazali, Consumers, Society and Marketing, CSR, Sustainability, Ethics & Governance, https://doi.org/10.1007/978-3-031-39359-4_1

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Consumption and Consumer Society

In addition to a reflection of one’s value, consumption is also being increasingly seen as an evident manifestation of social stratification (Allen & Anderson, 1994). Upper-class consumers are sometimes assumed to possess “better taste” in their consumption behaviour and to make more fashionable choices. Therefore, it is generally more desirable to emulate their buying behaviour and product preferences. Consumption patterns have also shifted in modern consumer societies. Members of the consumer society, who derive their identities from symbolic resources reflected in various institutions such as clubs, schools, and the media, and, increasingly, through marketing, are now governed more by desires than needs. Modern marketing techniques are highly effective in encouraging consumption and buying behaviour. Worldwide, a common example is how retailers and shopping platforms offer seasonal promotions during festive celebrations like Eid, Christmas, Chinese New Year, or Boxing Day sales. Though these festivals weren't initially about encouraging sales, they have become synonymous with increased spending. The study of consumption from multiple perspectives is key to broadening the primarily ‘business’ understanding of the consumer. Indeed, consumption is now frequently discussed in non-pure business fields, including anthropology, sociology, cultural and media studies, philosophy, linguistics, geography, psychology, and others. Consumption is a complex concept with multiple nuances and has implications that transcend mere monetary exchanges. It is also non-static, and constantly varies across times and individuals (Mehta et al., 2020). A common theme and key debate surrounding consumption, however, centers on the structural constraints of the market and the concept of consumer agency.

1.3

Consumer Sovereignty

Our satisfaction towards our choices and decisions is not solely dependent on our experiences of particular outcomes, but also on our ability and sense of control over the decisions we make (Hsieh et al., 2022). We are fortunate to live in an age of abundance both in terms of choices and information. Most of us have easy access to a plethora of choices and the information needed to make informed consumption decisions. From social media networks to review websites, most of us can connect with various individuals to interact, acquire feedback, or obtain support on the choices we make. However, while it may seem ‘easier’ to make decisions, does this mean that we, as consumers, are more empowered? Are consumers solely responsible for their choices or are there other parties who may be complicit in the decision-making process? Furthermore, in the discussion of consumer empowerment and sovereignty, are there limitations and issues of which we are unaware of or that we intentionally avoid? These issues will be examined in detail in various chapters of this book. The consumer sovereignty model argues that the consumer is king. Accordingly, as any production is based on the whims of consumers (Narver & Savitt, 1971),

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Consumer Sovereignty

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consumers should be held almost completely accountable for individual consumption (Sirgy & Lee, 2008). This leads to discussions on the consumer–citizen hybrid, which is a reflection of the interconnections between economic, political, and cultural realms (Johnston, 2008), and the ability of consumers to now participate in political consumerism (Kyroglou & Henn, 2022). Consumer sovereignty was first popularised by the economist William Harold Hutt as ‘the controlling power exercised by free individuals, in choosing between ends, over the custodians of the community’s resources’ (Hutt, 1940, p. 66). This definition highlights several important points on integral subsequent discussions on consumer sovereignty, power, and empowerment. First is the controlling power exercised by free individuals, thereby emphasising the fact that individual consumers and marketplace participants should have the power and ability to make choices free from external pressure. Second is the ability to choose between ends, which implies that consumers should be able to select one of a variety of choices without being corralled, knowingly or unknowingly, into a single option. Third is over the custodianship of the community’s resources. As consumers are sovereign and can make their own choices, they should therefore assume a certain responsibility for how resources are allocated via their consumption. Only when these three conditions are met will consumers be fully sovereign. Hutt (1940) argued that the consumer is considered sovereign when as a citizen, he has not delegated to any political institution for authoritarian use the power, which he can exercise socially through his power to demand or refrain from demanding. The concept of consumer sovereignty has been richly expounded upon and explored by various authors. For example, according to Cvjetanovic (2013), consumer sovereignty can be classified into two main concepts. First, empirically/ descriptively, consumer sovereignty refers to the actual situation wherein the consumer can decide what is produced and at what price (i.e. the ‘consumer is king’ concept). While this rests upon the premise that consumers consistently make rational decisions, it implies that it would be inappropriate to question one’s preferences even if the wrong decisions are being made (Duggan, 1992). Ultimately, the notion of freedom of choice is a higher priority than the outcome itself (Reekie, 1988). On the other hand, normatively, consumer sovereignty can be described as a criterion for evaluating the social desirability of different social situations and in turn the desirability of the various public policies or institutional structures which give rise to these situations (Rothenberg, 1962). This approach to consumer sovereignty is closer to an ‘ethical-practical’ perspective and seeks to understand how consumer sovereignty can be used in benefitting consumer interest while simultaneously ensuring a higher quality of life (Duggan, 1992). Both approaches assume that consumers are naturally rational and self-expedient, meaning that the responsibility of the choices that they make should naturally rest with the consumers alone. However, what is ‘rational’ is highly subjective; personal incentives, emotions, situational contexts, and behaviour might prevent individuals from making ‘rational’ decisions.

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In addition, consumer sovereignty is also highly affected by one’s economic environment. The role of the marketplace, and its effect on influencing the offerings of products and services, also impacts this sovereignty. Therefore, policy intervention could well be needed to protect consumers, especially when they have limited ability to make rational decisions. Byrne (2003 cited in Wright et al., 2006), while discussing free-market competition and competitiveness, noted that, in a wellfunctioning market, consumers unite to punish producers who fail to meet their expectations, while rewarding those who fulfil their demands. Therefore, consumers having sovereignty over their actions ought to be a basic and non-violative right. In theory, when consumers possess full information and are of sound mind, they should be in full control of their choices (Norkus, 2003). Unfortunately, the issue of the responsibility of consumption choices is by no means straightforward. This is because ‘consumers are given the illusion of choice while both the supposed needs and desires underpinning these choices are constructed, and the choice set is strictly controlled, by marketing managers’ (Carrington et al., 2016). Moreover, our choices are inhibited by ethical issues and unpraiseworthy marketing techniques (Skiba et al., 2019). Furthermore, consumers also face behavioural, cognitive, and motivational obstacles on their paths towards an ethical, sovereign, and empowered life (Coffin & Egan–Wyer, 2022; Johnston, 2008; Shaw et al., 2016). Tadajewski (2018) further highlighted the complexity of consumer sovereignty, as well as the notion that there is no ‘true’ sovereignty for consumers as we are all subjected to the marketplace’s internal and external forces. On an individual level, we often have vague preferences and are buffeted by a dizzying array of information which negatively impacts our decision-making processes (McShane & Sabadoz, 2015). Additionally, our decisions can also be swayed by our emotions, thereby causing severe derailments to a rational train of thought. Externally, our choices can also be influenced by marketers and producers, thereby leading to biases in our decision-making or our being subjected to negative marketplace influences. The combination of internal and external forces can complicate consumer decision-making. Consumers are often disadvantaged by their limited knowledge, comparative lack of interest in extended problem solving, and predominantly habitual behaviour (Tadajewski, 2018). Other external forces, such as poor socio-economic and living conditions causing limited access to products and services (Johnston, 2008), irresponsible corporate actions with potentially life-damaging results (Boyd, 2012), and even the influence of culture on the degree of interdependency and communal decision-making (Markus & Schwartz, 2010) can either enhance or erode the concept of consumer sovereignty. Therefore, empowering consumers to achieve greater sovereignty is of paramount importance.

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Who Is Responsible for Consumption Outcomes?

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Who Is Responsible for Consumption Outcomes?

Debates and arguments over who should be accountable for consumers’ responses to advertising and marketing material are never ending. The question is rife with different perspectives on who is responsible based on a multitude of reasons and scenarios, such as the content, firm, or target audience. Fast food is often equated with junk food, which implies that these foods provide little to no nutritional value and are often consumed for their convenience, taste, and immediate gratification rather than for their health benefits. In fact, several studies have indicated significant links between fast food consumption and various health issues (Jaworowska et al., 2013). Let us take eating fast food as an example to show different arguments on who should be responsible for consumption outcomes: The first argument, based on the Consumer Sovereignty Model, claims that ‘No one is forced to eat fast food. Consumers have free choice’. From this viewpoint, the consumer, as sovereign, is accountable for their own response (Norkus, 2003). Firms have no power to force consumers to partake of their products as consumers are best at judging their own welfare. Therefore, the firm’s role is to continually produce fast food due to preference-based consumer demand. The second argument instead claims that ‘Marketing/Advertising is to blame for encouraging people to eat fast food’. Therefore, the consumer is a passive victim of marketing and specifically, advertisement’s manipulations and enticement (Nairn & Berthon, 2003). It is the firm, not the consumer, who is at fault for promoting goods that cause harm. As such, firms are only free from blame when they stop marketing/ advertising harmful products to the public. The third and final argument claims that companies can make any product, even harmful ones, because consumers should be free from state (Government) intervention. In contrast to the first argument, where firms play a more passive role and only produce goods favourable to public demand, this viewpoint frees the fast food industry from external influences. Proponents of this argument claim that companies should be free of all intervention when it comes to the production and marketing of their goods. Indeed, they argue that firms are not solely responsible for only producing what consumers want, nor are they accountable for how the public consumes their products. The above three arguments have one thing in common, that is no party is willing to take full responsibility in addressing market issues and sustainability. It is risky to rely solely on the market to address sustainability issues. Firms, government agencies, relevant organisations, consumer groups, and society at large should all contribute and seek solutions together (Sheth & Parvatiyar, 2021). As opposed to constantly shifting the blame, efforts should instead be redirected to increase the likelihood of finding effective solutions. As sustainable marketing and consumption is now garnering increasing attention, there are hopes that fruitful discussions will be held to address the consumption concerns we are all facing.

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Consumer Empowerment

Marketing discourses consistently involve power relations, especially in terms of which actor possesses more power than the other (Merlo et al., 2004). Are consumers more empowered and have a higher degree of control over a brand, or does the organisation hold more sway due to it having more power and knowledge? Various disciplines have examined what constitutes empowerment. Moreover, how it can be applied has been studied in and on individual, organisational, and communal levels (Hur, 2006; Li, 2019). Empowerment can be viewed differently as either an outcome (Hur, 2006) or a process (Mo & Coulson, 2010). It is important to recognise that, as in the field of marketing, empowerment is an ever-evolving concept and is never static. As Hur (2006) has pointed out, the empowerment process is not constant, but rather a continuing, development that involves many changes. As a result, an individual or group is able to strengthen and exercise the ability to act to gain control and mastery over life, community, and society. While empowerment is not a cure-all for any individual or social issues, and faces limitations depending on context, it is merited as contributing to accelerating the speed of betterment, in creating a better, happier, and healthier society. The core tenet of discussions surrounding consumer empowerment is ‘power’. More specifically, this entails questions as to what power entails from a consumer empowerment perspective, as well as how we can analyse the actual degree of power consumers have over their purchasing decisions. Power is multi-layered, influenced by many social and individual factors, and remains the heart of empowerment issues (Akhavannasab et al., 2018). A simplified explanation of power is the capacity and ability to control the resources and outcomes of oneself or others (Keltner et al., 2003). The empowerment process thus refers to the methods by which people can gain power either by becoming more enabled or by receiving it through a delegation process, traditionally influenced by firms, consumers, or other third parties. Moreover, the empowerment process is not necessarily beneficial for all parties involved in the consumption or exchange process. For example, having more empowered consumers often means the reduction of a firm’s power. Power is a ‘constant negotiation process between the parties involved in a relationship’ and is an interplay between one party seeking to exercise more power and the other’s ability to resist, with the success rates of both being influenced by the amount of social resources they have at their disposal (Barbalet, 1985). Power can manifest in two main ways. Personal powers allows individuals to ignore external influences and make independent decisions. On the other hand, social power provides the ability to influence others, even amidst resistance (Lammers et al., 2009). According to Akhavannasab et al. (2018), perceived personal consumer power is ‘the extent to which consumers feels that they able to ignore a firm’s persuasive efforts and make a final decision independently to fulfil their own needs’, whereas perceived social consumer power refers to ‘the extent to which a consumer believes that he or she can influence a firm’s decisions,

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Consumer Empowerment

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responses, and actions’. It is therefore difficult to accurately measure consumer power due to the shifting nature and interplay of power. The concept of consumer empowerment was originally viewed as the ability of consumers to spend. Spending was perceived as both a civic duty and the primary means for a society or nation to achieve economic and social prosperity (Cohen, 2008). As individuals were generally encouraged to spend more and engage in hedonic consumption, this eventually led to the understanding of consumer empowerment as the freedom and ability to exercise choice. A ‘good’ corporation is, therefore, one which maximises consumers’ choices and caters to the tangible and intangible needs of consumers, including material pursuit, social recognition, and status (Redmond, 2000). The underlying assumption of this viewpoint is that consumers are always rational, able to perfectly distinguish between options, and choose the best outcome (Wathieu et al., 2002), and that consumers consistently have a harmonious relationship with companies in which the interests of both are aligned (McShane & Sabadoz, 2015). However, there is a growing amount of dissent against this concept of choice as empowerment. Indeed, consensus seems to be shifting towards the ability to practice citizenship roles being true empowerment instead. In opposition to the first assumption of the ‘rational consumer’, prior research has proven time and time again that the rationality of consumers can be challenged by various factors. Impulse buying is a prime example of non-rational consumer behaviour, as consumers might engage in such purchasing due to peer pressure, the fear-of-missing-out (FOMO), or other forms of psychological anxiety (Li et al., 2021). In addition, a firm’s interest is not always necessarily aligned with consumers. The objective of most firms is to maximise their profits. This has resulted in a growing distrust of corporate practices and social movements targeted against unethical business practices (Bachouche & Sabri, 2019; Efuribe et al., 2020; Long & Murray, 2013; McShane & Sabadoz, 2015; Shandwick, 2018). Currently, the discourse of consumer empowerment has shifted from the options available in the marketplace to the subjective experience of control over one’s consumption choices. Nowadays, an empowered consumer is one who can engage in consumption activities that maximise utility while fulfilling civic duty. It can also be defined as the perceived benefit of an increase in control that helps consumers choose, on their own terms, what they want and when they want it (Wathieu et al., 2002). Empowerment can also be viewed as a collective process that is achieved through boycotts or other strategies to counterbalance the producer’s power (Denegri-Knott, 2006).

1.5.1

Degree of Empowerment

According to Wathieu et al. (2002), the degree of empowerment and its subjectivity is based on the following three elements, namely, control of the choice set composition, progress cues, and information about other consumers.

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Control of the Composition of the Choice Set

This element refers not to the size or amount of provided choices, but rather to the consumer’s ability and flexibility to adjust and define them. Being able to reverse changes to the choice environment, as well as to specify filter choices based on dimensions and categories, empower consumers.

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Progress Cues

Consumers’ ability to repeatedly assess or extend their progress during the selection process increases the perception of control in the choice experience. The capacity to identify the amount and length of progress, as well as the stages in the selection process, also ensures that consumers do not feel ‘lost’ in the process.

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Information About Other Consumers

As choice environments are usually influenced by a degree of self-interest on the host’s part (e.g. sellers, producers, intermediaries, and owners), being able to interact with and observe other consumers who are experienced also serves to provide new consumers with a sense of support. However, this raises questions on the ability to seek out aggregate information, the trustworthiness in a social comparison setting, the differentiation between firm-controlled or non-firm-controlled settings, and the veracity of information provided. While empowerment does not always necessarily ensure that consumers are better off in all their choices, it can enable consumers to relate their choices beyond the conventional outcome-driven concept of satisfaction.

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Antecedents of Consumer Power

According to Akhavannasab et al. (2018), there are three antecedents of consumer power that contribute to its perception and are manifested in three outcomes:

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Antecedent 1: Consumer-Based Factors

Based on the stimulus-organism-response model, consumer-based factors can be further differentiated into situational (stimulus), individual (organism), and behavioural (response) factors. Individual factors are composed of consumer experience and knowledge, self-determination and motivation, self-esteem and selfefficacy, brand attachment, and control. Consumers who possess higher levels of

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Consumer Empowerment

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individual factors generally feel more empowered. Situational factors refer to interpersonal interactions with others and social surroundings independent of the firm’s communication efforts. Behavioural factors include consumer engagement (from the firm or with other consumers) and consumer participation.

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Antecedent 2: Firm-Based Factors

Firm-based factors include the firm’s willingness to help consumers and the implementation of consumer-empowering strategies. Consumer empowerment strategies can include customisation and pricing strategies, where consumers can participate in the product design or price setting processes.

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Antecedent 3: Environmental Factors

The first environmental factor is competition—the quantity, quality, and level of differentiation of product or service offerings from one or multiple firms. The second factor is the technology available to consumers, business groups, and other thirdparty organisations. More advanced technology is a boon for consumers as it allows them to gather information, filter their options, compare prices, and interact with other consumers more easily. Technology also increases consumers’ social power as they can share their opinions more easily over social networks, review sites, or opinion boards. As a result of higher consumer power, consumers are expected to have cognitive outcomes which are more congruent with their decisions, higher trust towards companies, and greater levels of satisfaction towards the firms and offerings provided (Bachouche & Sabri, 2019). In addition, consumer power also evokes more positive and effective emotions, such as higher levels of satisfaction, desire, enthusiasm, and enjoyment (Hsieh et al., 2022). The outcome of higher consumer power relates to such behavioural consequences as willingness to pay, positive word-of-mouth (WOM), being willing to pay a premium for products, and being more disposed to defend and bond with companies (Branstad & Solem, 2020; Hsieh et al., 2022; Li, 2019). Wolf et al. (2015) provide an alternative, do-it-yourself (DIY) perspective of consumer empowerment. Their concept of empowerment is fundamentally based on the acquisition of power and is seen as the process by which a person without power in a certain situation, chooses a worthwhile objective, acts, and develops knowledge, confidence, and self-efficacy through the action taken. This process ultimately cultivate a renewed sense of power. Thus, the sense of power can be:

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Consumption and Consumer Society

Power-over

The power to control, where the degree of power is based on the degree of dependency of one party on another in an exchange process. A consumer empowerment ideology using this perspective refers to empowering consumers by providing them with more information or an increased understanding of the offering creation (Harrison et al., 2006).

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Power-to

The power to act, where the psychological empowerment is intrapersonal and emphasises one’s individual perception of achieving certain goals in a specific domain. Therefore, empowerment is considered a motivational force influenced by the meaning attached to one’s work, the competence and self-belief that personal efforts lead to successful outcomes, the ability to self-determine and choose or initiate activities, and the impact of how an individual’s input affects the outcome (Spreitzer, 1995).

1.5.2.6

Power-from

The power to resist control from others, where the degree of power is also relational in nature and used to address the pervasiveness of power imbalances in social issues. Discussions on ‘power-from’ and empowerment issues typically concern resisting social norms or countering expectations, being able to instil greater self-confidence, having the freedom of self-expression, and raising levels of independence (Wolf et al., 2015). It was shown that empowerment is highly related to the abilities of initiation, mastery, adding value to goods and services, unleashing creative potential, and ownership. It is worth emphasising that providing as much information as possible is not necessarily the best approach to empowering consumers. Based on the above definitions of empowerment, one could infer it to be highly influenced by one’s autonomy, decision support information, the ability to control the amount of information (to prevent information overload), product knowledge, and the level of difficulty involved in the decision (Hu & Krishen, 2019). However, these inferences are also highly contextual. Indeed, Hu and Krishen (2019) discovered that, when making difficult decisions, the degree of effect caused by information overload is influenced by one’s product knowledge. The same understanding should also be applied to choices in the consumer empowerment process, as simply having a greater depth and breadth of choices, or being able to freely customise them, does not necessarily translate into greater consumer empowerment (McShane & Sabadoz, 2015). On the contrary, having too many choices might even cause choice paralysis and confusion. Therefore, it is not the quantity of information or choices that is of utmost

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Consumer Disempowerment and Vulnerability

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importance, but, more critically, it is the veracity of information, as well as the ability to comprehend and filter the information and choices available, that is more salient. Bearing these facts in mind, McShane & Sabadoz (2015) proposed the following definition of consumer empowerment: . . . a state of being whereby consumers are free to enact and even privilege citizenship roles in the marketplace in such a way that they are cognitively able to pursue both economic/ rational interests as well as broader human interests in terms of their consumer citizenship (McShane & Sabadoz, 2015, p. 548).

Therefore, more empowered consumers are those who can exact citizenship roles and focus on the state of the consumer. The choice/information-as-power understanding of consumer empowerment should instead centre on how freely consumers can make decisions outside of the restrictions imposed by firms. Consumer empowerment does not refer to how many extra product options consumers have, but rather whether they can also consider options outside of those presented by companies. Marketing’s contribution to economic development enhances consumer welfare under the assumption of consumer sovereignty. Consumer sovereignty and empowerment should be reframed from the wealth of options available to citizens’ freedom and ability to enact positive change. To ensure that consumer well-being and empowerment are suitably addressed, we must first understand what puts consumers ‘at a disadvantage’.

1.6

Consumer Disempowerment and Vulnerability

In terms of how marketing has more widespread effects beyond financial prosperity (as discussed in previous sections), it is important to acknowledge that marketing and business activities have both positive and negative repercussions, the extents of which are not solely limited to customers. We have also mentioned how there is mounting distrust towards marketing and business activities, which is mostly due to unsavoury business practices that aim to make consumers more vulnerable or exploit those who are already at risk or disadvantaged (Chatzidakis et al., 2020; De Veirman et al., 2019; Pang et al., 2021). These practices often take advantage of populations that either lack knowledge or are easily influenced, especially among the younger and elderly generations (Kong & Zhou, 2018; Zaltman et al., 1978). The consequences of bad market activities generally aggregate to cause direct or indirect complications that affect public health, social welfare, workers’ well-being, environmental damage, or a combination of the above. Therefore, just as it is crucial for us to know what it means to be an empowered and sovereign consumer, it is equally important for us to understand consumer vulnerability, how disempowerment plays a role in making consumers more vulnerable, and to be aware of exploitative tactics in the marketplace.

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Consumption and Consumer Society

Consumer Vulnerability

Vulnerability implies an unfavourable situation or condition, where some level of fragility exposes an individual to a potential danger which would place them in an inferior or more easily exploitable position (Silva et al., 2021). Moreover, it is important to distinguish between the disadvantaged and the more vulnerable, since not all of the former experience vulnerability, and even people without perceived or unperceived disadvantages can find themselves to be vulnerable (Baker et al., 2005). Consumer vulnerability is often used as a general term to describe various scenarios where consumers face difficulties from physical characteristics, individual characteristics, business practices, environmental impacts, and social phenomena. According to Smith & Cooper-Martin (1997), vulnerable or at-risk consumers are those most susceptible to economic, physical or psychological harm, or as the result of economic transactions due to characteristics that limit their capacity to maximise their utility and well-being. The most widespread definition of consumer vulnerability was given by Baker et al. (2005, p.7) as ‘a state of powerlessness that arises from an imbalance in marketplace interactions or from the consumption of marketing messages and products. It occurs when control is not in an individual’s hands, creating a dependence on external factors (e.g., marketers) to create fairness in the marketplace. . . the experience affects personal and social perceptions of self’. Silva et al. (2021) argued that each consumer experiences different forms of vulnerability to varying degrees, as consumer vulnerability differs in terms of aetiology (e.g. cultural, economic, and social), duration (permanent or transitory), locus (market versus social life), significance (consumerist versus non-consumerist) and the number of people who share the vulnerable condition (individual or social). These consumers are also more dependent on external sources for both guidance and information due to their feeling a greater sense of helplessness. These vulnerable groups may include women, those with health conditions or impairments, the financially disadvantaged, uneducated racial minorities, youths, children, immigrants, the LGBT+ community, and the homeless (Visconti, 2016). While it is important to distinguish between groups, not all of them are equally vulnerable, nor might all individuals within the same groups suffer from the same level of vulnerability. Hill (2005) pointed out that age, race, sex, income levels, and education affect the level of one’s vulnerability, especially in terms of an individual’s capacity to process information and make decisions. He argued that based on the concepts of basic income, consumption adequacy, and distributive justice, society should specifically consider the poor. He proposed a subsidy programme, where the upper crust of society would continue to ‘thrive but without any residual guilt’ and at the same time the poor would be entitled to material abundance as well because of ‘their humanity, not their economic power’ (Hill, 2005, p. 218). Beyond socio-demographic or subculture aspects, the literacy level of consumers and certain marketing practices are also areas of concern. Consumer vulnerability can be increased due to certain marketing practices, including unfair, misleading,

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and deceptive marketing practices. It can also result from aggressive marketing campaigns targeted at disadvantaged consumers along with a lack of efforts to promote positive options or better choices. Marketing practices can also confound illiterate consumers, especially when these consumers are more vulnerable and may be struggling to cope within a highly information-laden society. Their limited literacy can lead to poor decisions, like misinterpreting labels, purchasing the wrong product or misusing products (Stewart & Yap, 2020).

1.6.2

Vulnerability Levels

Stewart and Yap (2020) created four typographies and vulnerability levels based on an individual’s coping ability and consumer education participation: 1. Endangered and defenceless—The most vulnerable segment, these individuals conceal their illiteracy and are the most socially constrained and alienated. 2. Emotionally encumbered—This group of consumers also has low literacy but participate in consumer education programmes. However, they remain highly vulnerable due to low self-esteem. 3. Confident illiterate—Unlike the endangered and defenceless, confident illiterates have higher self-esteem but employ confrontative coping mechanisms and generally refuse consumer education help from others. 4. Near-proficient—The least vulnerable segment. While not being fully literate, these consumers have higher degrees of individual coping and actively engage in consumer education. It is worth mentioning that not all forms of vulnerability are permanent and that certain consumers may be more vulnerable depending on the context they find themselves in. Vulnerability is typically situational and temporary as consumers develop coping mechanisms to deal with their circumstances, or because external factors change and eliminate the risk. However, there are certain groups of consumers with long-term vulnerability, including those with permanent cognitive impairments (Batat & Tanner, 2021). Consumers experiencing emotional upheavals and traumatic events are also more vulnerable to predatory market practices (Gentry et al., 1995). People experiencing grief or depression tend to have more limited decision-making and reflection capabilities—which some marketers routinely exploit. For example, funeral home operators are often accused of being manipulative profiteers leaching off the mental confusion and emotional vulnerabilities of their unfortunate customers (Tadajewski, 2018). It is easier for consumer disempowerment to occur in these situations, as the consumers are often fed misinformation or a false sense of urgency forcing them to make decisions without due consideration. The exploitation of consumers’ emotional states via disempowerment strategies further erodes their sovereignty while simultaneously increasing their vulnerability.

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The Link Between Consumer Vulnerability and Consumer Disempowerment

Consumers are deemed more vulnerable if they need to expend significant effort to properly evaluate their consumption choices. Unfortunately, examples of consumer vulnerability are plentiful. These vulnerabilities may arise from situations and causes outside a consumer’s sphere of control or due to certain inadequacies from the consumers’ perspective. Examples would include consumer illiteracy and the inability to effectively evaluate value-for-money options (Johnston, 2008). Even if consumers have ethical intentions to purchase organic or fair-trade goods, marketplace restrictions, such as the lack of options and accessibility or price barriers, are major inhibitive factors (Tan et al., 2016). In addition to certain marketplace restrictions, consumers may be made more vulnerable due to the marketing practices of companies, such as confusing labelling or misleading information. The ability to evaluate and access reliable information is an important condition for consumer empowerment (Hu & Krishen, 2019; Hudders et al., 2019; Petrescu et al., 2020; Hsieh et al., 2022) and information that is purposely vague, disempowers consumers, thereby heightening their vulnerability. Many examples of consumer vulnerability can also be attributed to deceptive information-related practices. Xiao & Benbasat (2011) discovered that unmotivated consumers have low product expertise and are more vulnerable to falsification or concealment strategies. They further showed that information can be manipulated in the following three ways in an e-commerce context: (i) Information content—The direct alteration of content related to product information, such as the concealment of negative information and reviews, the equivocation or provision of vague information, as well as information falsification by posing as fake consumers online or selling non-existent products. (ii) Information presentation—The manipulation of how product information is presented by the media, i.e. utilising media by altering product features to inhibit correct product understanding, manipulating the level of vividness of presentations, or presenting conflicting information. This also includes information organisation, i.e. manipulating the way information is presented to encourage or discourage information processing strategies. (iii) Information generation—The manipulation of dynamic information based on consumer interests and needs, and/or preferences which are obtained implicitly or explicitly, such as inducing an overreliance on personalised recommendation agents or targeted advertising based on consumers’ browsing data without their knowledge or consent.

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Consumer Limitations that Lead to Disempowerment

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Age-Related Consumer Vulnerability

An example of age-related consumer vulnerability is the impact of fast food advertising on children’s food consumption patterns and habits. Adolescents, children, and younger generations—who are more easily influenced and persuaded by advertising—are more receptive to fast food or other products and services (Nishadi et al., 2021). This, in turn, leads to adoption of unhealthy eating habits, and ultimately to several health issues including obesity (Kong & Zhou, 2021; Witkowski, 2007). The elderly also forms part of a vulnerable age-specific group. Older people are usually targeted by scam calls and other fraud victimisation schemes due to poorer emotional regulation, an overly trusting nature, psychological vulnerability, isolative lifestyles, a lack of technological knowledge, and cognitive decline (Shao et al., 2019). Research has demonstrated that cognitive decline occurs with advancing age, and includes deficits in working memory, processing speed, abstract reasoning, decision-making, response inhibition, comprehension, problem solving, and arithmetic/financial abilities (Shao et al., 2019). While age certainly plays a role in consumer vulnerability, some argue that it should not be the major determinant. Indeed, in opposition to the view that the elderly are more vulnerable, Berg (2015) argued that they are in fact smarter and more effective consumers due to their experience and flexibility in certain markets. On the other hand, it is younger consumers who are more vulnerable due to limited economic awareness, more time constraints, and poor household finances.

1.7

Consumer Limitations that Lead to Disempowerment

All the above are examples of failures of consumer empowerment. While these failures and the methods to alleviate them will be further elaborated in the following section, we will first examine consumer restrictions that lead to disempowerment.

1.7.1

Lack of Access to Options/Choices

Disempowered consumers often have limited access to options and choices within the marketplace. This is not only due to a scarcity of options, but also geographical or financial barriers, or other marketplace and systematic restrictions preventing them from accessing said choices (Johnston, 2008; Pittz et al., 2020; Coffin & Egan– Wyer, 2022). For example, people with poor credit ratings often have trouble accessing financial services (Hamilton & Catterall, 2005; Henry, 2005; FCA, 2014; Hoffmann & McNair, 2019).

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Lack of Information

In addition to the lack of access to options and choices, consumers—especially those who are new to a specific industry—may often find it difficult to evaluate the choices available in the market. Consumers who lack Internet access or those from rural areas are frequently at a disadvantage in terms of accessing and obtaining information needed to make the most suitable or effective purchase decisions (Simanjuntak et al., 2014). Moreover, as experiential information of other users is also important for gaining a sense of empowerment, the inability to obtain said information also hinders consumers as they cannot refer to the satisfaction levels or decisions of others prior to making consumption decisions (Hu & Krishen, 2019).

1.7.3

Lack of Ability, Skill, and Motivation to Gather and Evaluate Information

In addition to the lack of information, the inability, limited skills, and lack of motivation to gather and evaluate information properly are further limitations that contribute to consumer disempowerment. Consumers who lack the expertise to evaluate information tend to find it more difficult to make decisions in reference to other options, especially when said choices are heavily information ladened. It must be noted that, while having information is important, possessing too much of it can also be detrimental if consumers cannot properly evaluate it. Indeed, this can potentially trigger an information overload (Hu & Krishen, 2019). Another psychological barrier preventing consumers from gathering and evaluating information is the increasing scepticism towards the information available, especially that which appears online (Broniarczyk & Griffin, 2014). As consumers increasingly struggle to verify, obtain, or compare information, this contributes to decision difficulties and demotivates consumers from evaluating any further information.

1.7.4

Exclusionary Practices

Consumers can also be disempowered due to a lack of consumer control resulting from exclusionary practices, or face restrictions from factors outside of their control. Consumers may experience certain unfairness in the marketplace which may be intentionally or unintentionally caused by marketers or themselves. These restrictions often interrelate with each other, which may further worsen consumer disempowerment. These restrictions may include:

1.7

Consumer Limitations that Lead to Disempowerment

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i) Financial restrictions Consumers who face financial liabilities and higher financial burdens are more likely to feel disempowered. Their financial liabilities include low wages, insecure or unstable employment, inadequate state benefits, and/or limited access to credit (Henry, 2005). Consumers are also made financially vulnerable due to certain risk factors, such as low levels of education, numeracy, or financial literacy, physical disabilities, severe or long-term illnesses, mental health issues, low income, high debt, caring responsibilities, being either ‘younger’ or ‘older’, poor English language skills, and impactful changes in personal circumstances (i.e. a divorce, death of a spouse, or a redundancy) (FCA, 2014). It is worth stating that, while consumers who fall into the above categories might not necessarily be financially poor, they tend to be more susceptible to financial difficulties. Consequently, said consumers are more likely to make poor financial choices, and their behaviour is often guided by short-term circumstances and goals (Bertrand et al., 2006). Financial restrictions are by no means limited to the extremely poor. Indeed, working class individuals and those who live from paycheck to paycheck also experience financial duress—especially in precarious job conditions. These financial liabilities limit consumers’ access to better choices and reduce one’s sense of selfcontrol (Hamilton & Catterall, 2005). Even when options are available to low-income consumers, they must often choose from limited alternatives and be forced to decide between necessary expenditures (Hamilton & Catterall, 2005). Poor consumers tend not to have the luxury of always getting the quality products they need but rather must make do with inferior choices. The precariousness of a consumer’s finances does not only limit their consumption options and habits, but it also exerts a psychological effect that might undermine their state of empowerment. Therefore, it is critical that proper coping strategies are introduced to impoverished or financially burdened consumers to provide a sense of mental relief. While coping strategies might not necessarily alleviate financial difficulties, they could well enable consumers to form a more positive self-identity, which is itself crucial in creating a sense of consumer empowerment (Hamilton & Catterall, 2005). ii) Physical restrictions Certain consumers who reside in lower-income neighbourhoods also encounter barriers to accessing a wider range of products that are available to wealthier citizens. Using Whole Foods Market as a case study, Johnston (2008) revealed that one of the main reasons why certain consumers do not consume more ethical or sustainable products is because the shops which sell them are not located near their residential areas. When certain marketplaces or shops are difficult to access or require a certain amount of effort to do so, consumers are often disincentivised from visiting them. Fortunately, the Internet and the possibility of omni-channel retailing have alleviated these issues to some extent. It is now much easier for consumers to access a greater variety of products due to advancements in e-commerce and higher Internet

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availability across the world (Freathy & Calderwood, 2020). However, consumers in rural areas might still face certain issues, including deficiencies in transportation infrastructure and spatial difficulties in grocery provision. There is still a disparity in consumer empowerment levels between urban and rural consumers (Simanjuntak & Saniyya, 2021). Moreover, while consumers in rural areas now generally have an improved access to the marketplace, there is still a lack of consumer agency and access to institutions that can redress consumer concerns. For consumers to be properly protected and empowered, they should be able to easily access administrative and judicial justice. However, consumers in lessdeveloped countries and rural areas continue to be at a disadvantage as most protection authorities are in urban areas (Delgadillo, 2013). Therefore, if rural consumers wish to submit their complaints, the extra costs involved might deter them from reinforcing their rights. iii) Social restrictions (size, attitude, knowledge, and experience of social networks) Not all purchasing decisions are individualistic. Indeed, consumers make some (e.g. those involving financial practices) as a social unit (Henry, 2005). Therefore, a consumer’s social environment undoubtedly affects consumers in different ways. Indeed, one’s state of empowerment can differ depending on one’s social circle, general attitude towards consumer knowledge, and social network experience. Consumers with a larger social circle or access to social networks with experienced consumers can benefit from being able to obtain and share information more easily. They can also compare their own experiences to identify any information disparity (Wang et al., 2011). A consumer’s social circle also influences their propensity towards knowledge seeking and/or knowledge avoidance behaviour (Hsieh et al., 2022). Depending on consumers’ social environment, they can feel more supported, empowered, and satisfied with their consumption decisions. However, consumers without a supportive social circle or whose social circle is more antagonistic towards knowledge seeking might experience the reverse effect. iv) Psychological restrictions Consumer-experienced psychological restrictions include cognitive development, knowledge, motivation, and information processing capacity. The root causes of such psychological restrictions may not necessarily stem from internal circumstances, they could also be due to external conditions, such as one’s financial burdens (Henry, 2005). When consumers are forced to make choices out of financial duress, they are less likely to make optimal decisions. People encountering financial difficulties often experience a reduction in cognitive capacities and increased stress levels (Bertrand et al., 2006). Stress, in turn, causes their behavioural habits to shift from goal directed to habitual behaviour, and their focus on the present rather than the future (Hoffmann & McNair, 2019). One’s cognitive capacity and inability to process information are also another mental challenge consumers need to face. Consumers might feel a sense of information overload, especially when there is an

1.8

Conditions That Facilitate Consumer Sovereignty and Empowerment

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overwhelming amount of information (whose quality varies) from large unknown sources (Hu & Krishen, 2019). A relevant example to illustrate this point is by referring to consumers’ use of online reviews when purchasing decisions. Besides corporate or official information sources, WOM has traditionally been considered as a credible channel and form of interpersonal communication. While online reviews, a form of electronic WOM (eWOM), are increasingly used by consumers, they can also lead to an information overload. Information overload occurs when the nature of the information is uncertain, ambiguous, complex, or overwhelming. Specifically, the number of alternatives or product attributes can lead to information overload in consumer decisions (Hu & Krishen, 2019). The perceived information quality, the hyperchoice effect, and information quality asymmetry (when one party to a transaction has more or superior information compared to another) could reduce consumer’s purchase intention and encourage them to experience decision difficulties and lower decision satisfaction. Consumer motivation to obtain and assess information is another key matter in this regard. As highlighted earlier, not all consumers feel positive towards education efforts or obtaining more information. The increasingly sceptical attitude of consumers towards information veracity demotivates them from relying on official information sources (Broniarczyk & Griffin, 2014). Moreover, certain consumer groups could also be antagonistic towards consumer education and gaining knowledge due to rejection stigmas and self-pride (Stewart & Yap, 2020). It has been shown that highly resistant consumers with low literacy levels tend to be far more vulnerable to making poor decisions. The existence of information asymmetry issues between sellers and buyers can also lead to marketplace distortions that may potentially harm consumers. These consumers thus need to create new strategies, such as team purchase methods by comparing buyers’ recommendations with business sources, to make an optimal purchase decision based on more thorough product evaluations (Wang et al., 2011).

1.8

Conditions That Facilitate Consumer Sovereignty and Empowerment

The protection of consumer well-being should be based on understanding exactly what places consumers ‘at a disadvantage’. For proper consumer empowerment to occur, all marketplace participants, including consumers, businesses, non-profit organisations, regulatory agencies, and consumer interest groups should collaborate and contribute to the best of their abilities. The creation of proper conditions and scenarios for consumer empowerment often requires a collaborative effort between multiple parties. The conditions that facilitate empowerment include:

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1.8.1

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Access to Complete Information and Ability to Evaluate

According to Perkins and Zimmerman’s (1995) Empowerment Theory, consumer knowledge and skill are of utmost importance to consumer empowerment. Empowerment is both an input and output process, with the input being the literacy of individuals, and the output being the actions, structures, or activities of individual behaviour. Therefore, as consumers obtain more information, knowledge, and education, they become more empowered and competent within the marketplace. Through the preparation, gathering, and analysis of information, consumers become more protected and aware of their rights within the marketplace (Ioannidou, 2018). To further suitable consumer education, close attention must also be paid to the literacy level that industries require. For industries where the decision risks are higher (e.g. finance), more thorough education is required for consumers to make the most appropriate decisions (Hoffmann & McNair, 2019). As these industries are also frequented by at-risk consumers, more care is needed in the servicing of its customers. The empowerment of consumers should be viewed as a long-term process, rather than just the short-term outcome of them switching between brands or a short-term reaction to switching service providers. According to Ioannidou (2018), the process of empowerment has inherent limits due to its being linked to specific outcomes that cannot always be measured. This has been shown by past research in such areas as psychology, marketing, and behavioural economics. The failure to achieve desired outcomes could be attributed to various consumer biases, however, these can be overcome through consumer education. While consumer education is more time consuming compared to increasing options within the marketplace, as regulators, organisations, and consumer interest groups focus on education and enhancing information proliferation, vulnerability issues can be more effectively addressed. As consumers’ education levels increase, so too do their empowerment and decision-making skills (Tajurahim et al., 2020). The level of consumer education also enhances consumer self-efficacy, which in turn enhances faith and self-belief, thereby further empowering consumers. We also reiterate that it is not the amount of information that matters; rather, it is the provision of proper knowledge and skills for consumer self-development that is most important. The Internet is a valuable tool for consumers to obtain information from a multitude of sources. It has also skewed the balance of power from producers to consumers from a technological, economic, social, and legal perspective (Kucuk & Krishnamurthy, 2007). Consumers can switch to better offerings due to the Internet’s higher transparency, participate in collective anti-movements and exert greater pressure on companies, enjoy lower costs due to supply chain disintermediation, and gather more data and reports in cases of legal abuse, infringement, and/or prosecution. However, as mentioned earlier, accessing, and verifying online information are two separate matters. The presentation of online information (i.e. web design) is also an important component in conveying trust to consumers (Kucuk, 2009). Consumers

1.8

Conditions That Facilitate Consumer Sovereignty and Empowerment

21

pay close attention to the quality, recency, and security of online information, transactions, and interactions. To optimally harness the power of the Internet, consumers must have the proper skillsets and knowhow, and be aided by credible and trustworthy sources, e.g. other consumers and independent bodies.

1.8.2

Access and Freedom of Options/Choices

The Internet has also served to lessen geographic restrictions on patronage to a large extent, and it is now much easier and convenient for modern consumers to access a wider range of suppliers (Freathy & Calderwood, 2020). It has also greatly facilitated the search for, and comparing, information through a multitude of comparison sites. We also now have access to a growing volume of independent information on companies and their products (e.g. customer reviews on e-commerce sites and review sites). For example, the website TripAdvisor has over a billion reviews for hotels, restaurants, tourist attractions etc. As mentioned earlier, simply providing consumers with more choices is not sufficient in and of itself. Rather, ensuring that they are empowered to optimally decide between those choices is more important. Aside from ensuring that consumers possess the right knowledge, their sociodemographical, mental, emotional, and financial capabilities must be accounted for (Hoffmann & McNair, 2019).

1.8.3

Better Legal Environment and Public Policy

Much business law and public policy is focused on better protecting consumers from unscrupulous practices. These policies must be guided by existing (or, actual) vulnerabilities of clearly defined consumer groups while being sensitive to not portray minorities negatively or accidentally appear elitist (Smith & Cooper-Martin, 1997). A better legal environment is aided by ethical marketing codes to ensure businesses always act in an upright manner (Sroka & Szántó, 2018). Laws and regulations should be created to improve the state of consumer information and education, with policies encouraging consumers to acquire and process information about the quality and prices of competitor brands. Examples of these positive policies include: Policies to help consumers understand quality/price attributes of information on company/brand citizenship (e.g. communication between individuals and groups on a firm’s responsiveness to customers and other stakeholders). Likewise, regulatory approaches should also be introduced to enhance the amount of information presented by brands, such as ensuring its veracity, accuracy, and value to consumers. Consumers should not be bombarded by information or need to exert significant effort to parse through or verify the information provided by companies. The exposure to marketing ought to be controlled (e.g. technology enables consumers to stop telemarketing, screen calls, or block pop-ups). Moreover,

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Table 1.1 Examples of public policies to protect consumers Policy Decrease risk and threat of harm Protection of vulnerable age groups Prevent product harm Combat deceptive marketing

Examples 1. The testing and certification of electrical products, mandatory information on investment products, on-pack health warnings etc. 2. This includes banning ads targeted at children; laws on predatory lending and telemarketing fraud, specifically targeted at children, young people, and elderly consumers. 3. Passing laws to restrict the sale of second-hand products for babies; protection and warranties for consumers in second-hand markets. 4. Passing laws that make it a criminal offence for false and misleading advertising.

competing brands should collaborate on information presentation (e.g. the traffic light system for nutritional information). As mentioned previously, brands must ensure that their labelling is as clear and accurate as possible to avoid generating any confusion (Baker et al., 2005; Szabo & Webster, 2021). Anti-trust policies should be strengthened to discourage monopolies and encourage competition to increase consumer choice within market segments. For laws and policies to be properly effective, they must first distinguish between what types of vulnerabilities they seek to address. Consumer vulnerabilities can stem from either personal (age, income levels, disabilities, poverty etc.) or market (inability to process information due to market contexts, competition, market structure etc.) factors (Ioannidou, 2018). Therefore, prior to establishing any legalities, what exactly is being addressed should first be clearly defined. These legal protections could serve both purposes of preventing personal and market vulnerabilities. Some examples are given in Table 1.1. In examples 2 and 3, the main purpose of the protection is to prevent any unwanted personal vulnerabilities from occurring due to either product categories of the consumer’s age. However, in cases 1 and 4, laws should be established to prevent market vulnerabilities from occurring due to misinformation and product risks. In addition to enacting consumer-protection laws, public policy should also play a more active role in advocating for consumer empowerment. Public policymakers and governments should call attention to this issue, as well as encourage both consumers and businesses to improve the current state of consumer empowerment (McShane & Sabadoz, 2015). They could also work with other third parties and NGOs to raise awareness of consumer issues, which could motivate and empower consumers to perform their citizenship roles more actively by changing their consumption patterns. Policymakers could collaborate with NGOs to encourage consumers to focus on non-economic issues, establish legislation to guide corporations to engage in socially beneficial and more transparent activities, and communicate broader issues within the consumption context. This synergic effort could result in higher consumer awareness and increase their ability to self-reflect on their consumption patterns and state of empowerment.

1.9

Consumer Empowerment Support from Businesses/Industries

1.9

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Consumer Empowerment Support from Businesses/Industries

While it might sound counterintuitive to say that consumer empowerment benefits businesses and companies, since one of its key concepts is the reduction of firm power for the benefit of consumers, it is worth noting that empowerment can also aid companies by enhancing their appeal and interactions with consumers. As opposed to traditional company perspectives, which view consumers as passive buyers or service receivers, the reality today is that consumers are partners and active market agents or, alternatively, as service providers (Kucuk, 2009). We refer here to ‘prosumers’, individuals who both consume and produce at the same time. Brands and companies should strive to provide the necessary empowerment tools to consumers and build trust by reducing confusion and uncertainty throughout their interactions. However, it is important that a balanced consumer–company relationship is created as a power imbalance on either side can lead to negative repercussions.

1.9.1

The Ikea Effect

Consumer empowerment and involvement enables consumers to view their marketing decisions and brand interactions in a deeper light, thereby driving brand engagement (Acar & Puntoni, 2016). It has been shown that empowered customers develop positive attitudes towards brands. Moreover, when consumers are involved in creating a marketing offering, such as new product ideas, the ‘Ikea effect’ occurs, which is to say that they tend to value and like their creations (Mochon et al., 2012). The Ikea effect was defined as ‘consumers’ willingness to pay more for self-created products than for identical products made by others and explore the factors that influence both consumers’ willingness to engage in self-creation and the utility that they derive from such activities’ (p. 363). When consumers attach greater likability towards brands and feel a sense of ownership and impact over the marketing process, outcomes such as more favorable WOM and increased buying behavior usually ensue. Additionally, as the creation of products and services factor in the needs and desires of consumers, brands are increasingly embracing customer advocacy by becoming a ‘faithful representative of customers’ interests’ (Urban, 2008, p. 157). The sensitivity towards the needs of customers is not limited to a brand’s product and service offerings, but, most importantly, businesses can better identify consumers in vulnerable situations and adapt their marketing to protect their well-being. Therefore, a firm’s marketing activities should reflect the ethics of social justice, recognising and addressing social inequalities (Ferrell et al., 2019). Brand-initiated customer empowerment strategies can amplify the traditional push/pull model of marketing. Rather than viewing customers as the end recipients,

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brands can initiate dialogues and encourage customer participation throughout their marketing endevours. In so doing, brands can strengthen and build relationships with their core fanbases or potential customers even before the actual product or service is offered (Branstad & Solem, 2020). Brands can forge connections with their consumers using a variety of empowerment strategies, such as open innovation, open source, co-creation, establishing brand communities, and crowdsourcing strategies. By creating a supportive social environment for its members and customers to interact in, consumers enjoy higher user satisfaction and heightened motivation, thereby facilitating their empowerment and participation. This spurs a cycle wherein customers are more empowered to participate in co-creation activities, which feeds into future marketing activities (Hsieh et al., 2022). Another important note is that brands must indicate that they value customergenerated input and provide evidence on how they use it. Aside from driving engagement and building relationships, brands’ close involvement with customers also helps to educate the latter and provide them with first-hand information—which is another important component of customer empowerment. Knowledge-sharing behaviour is especially apparent when enthusiastic members are keen to share their experiences and communicate with new members.

1.9.2

Empowerment and Advertising

Another key component of marketing that benefits from consumer empowerment is advertising. Unethical advertising behaviour has drastically increased consumer scepticism. This is especially true when a company’s actual track record is at odds with its advertising message, thus damaging consumer perceptions of the firm (Jones, 2019). Fortunately, brands can use consumer empowerment to rebuild trust by including customers in advertising strategies. People tend to be more open to personal recommendations and human-to-human trust (Johnson, 2022). Advertising strategies can now leverage this insight by incorporating customer-generated content into their marketing efforts, thereby enhancing the credibility and persuasiveness of their messages. Not only does the message’s effectiveness receive a boost— but brands can tap into a fresh wellspring of creativity, identifying the ideas and values that most resonate with their customers (Acar & Puntoni, 2016). Such a method is also more cost effective as brands can gain more advertising ideas and initiatives at a lower cost.

References

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Chapter Summary

Marketing contributes to economic development by enhancing consumer welfare, premised on the notion of consumer sovereignty. There has been a shift in the perception of consumer sovereignty from an increase in marketplace options to a situation wherein consumers are more able to exercise their citizenship roles. Consumer empowerment, notions of power, and disempowerment seem also to constantly shift depending on the relevant firms and marketplace. Customers are becoming more empowered, so businesses must change how they interact with them. At the same time, consumers remain vulnerable in many circumstances due to restrictions and marketing practices. While choice is less of a restriction for consumer empowerment, such information issues including information veracity, information overload, and disinformation practices, are still challenges for the modern consumer. Interventions to protect consumer well-being should be based on a sound understanding of what places consumers ‘at a disadvantage’. Firms, governments, NGOs, and other consumer interest groups should collaborate to ensure that consumers are comprehensively empowered from an industry, marketplace, and legal perspective. Ultimately, to increase empowerment, more effort is needed to educate consumers regarding their rights and abilities to analyse information.

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Chapter 2

Evolution of Marketing

2.1

Introduction

Just as marketing is never stagnant, the study and perspectives of marketing should never remain inert. Consumerism is often (in our opinion, rightly) linked to marketing. Indeed, marketing has evolved from optimising production methods to encouraging customer retention and brand loyalty. The scope of marketing activities has also expanded over the years to include analysing, planning, producing, training sales teams, providing after-sales support, and so on. The continual study and criticism of consumerism and the role of institutions are required to effect positive changes. As Shultz (2007a, 2007b) argued, a meaningful study requires criticism of extant institutions, including marketing; not simply for the sake of being critical, but to stimulate change and improve marketing, policy, and, ultimately, societal welfare. This chapter critically evaluates the current status quo of firms, customers, governments, societal groups, and the environment from the perspective of consumption. Only through such an evaluation can more constructive engagement and co-operation between multiple stakeholders produce effective solutions to the modern consumer’s woes. Indeed, a mere inward-looking examination of the marketing process and its potential outcomes would be insufficient for increasing consumer welfare. Instead, it would be far more beneficial to also examine the political, economic, and cultural forces, such as managerial mindset and corporate culture that constantly shape marketing ideology, knowledge, and practice.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 D. S. Mutum, E. M. Ghazali, Consumers, Society and Marketing, CSR, Sustainability, Ethics & Governance, https://doi.org/10.1007/978-3-031-39359-4_2

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Marketing as a Theory and the Evolution of Marketing Thought

The debates surrounding the practicalities of the marketing discipline, otherwise known as the ‘marketing management discourse’, between academics and practitioners are often heated. The line between theory and actual practice occasionally appears blurred when it comes to marketing and consumerism. An earlier example of marketing management discourse can be seen in the nineteenth and early-twentieth centuries. Marketing then fell under the umbrella of ‘applied economics’, which assumes that an initiative’s success depends on evidence-based decisions derived from informed theories. This is especially so due to the dominance of the supply side orientation, meaning that the ability to predict future demand to plan current supply was key. Marketing’s definitions and systems have changed over time. Originally, Adam Smith defined marketing’s purpose as that which facilitates consumption, which itself ‘is the sole end and purpose of all production’. Marketing systems have since transcended producing for consumption’s sake to fulfil a more complex and holistic role in society (Layton, 2009). Layton (2007) provided the following more comprehensive and popular view of the marketing system by defining it as ‘. . . a network of individuals, groups, and/or entities linked directly or indirectly through sequential or shared participation in economic exchange that creates, assembles, transforms, and makes available assortments of products, both tangible and intangible, provided in response to customer demand’. To illustrate how marketing has evolved in both meaning and scope, we refer to changes in its definitions by the American Marketing Association over the years (Brunswick, 2014): 1935: The performance of business activities that direct the flow of goods and services from producers to consumers. 1985: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational objectives. 2006: An organisational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders. 2014: The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. As seen in the above definitions, marketing has moved beyond its foundations in economics. It is no longer seen as a mere bidirectional exchange of goods/services and cash, nor is it only concerned with the selling of physical products. Marketing now emphasises value creation and involves more stakeholders, including the wider society (for a more in-depth discussion of this, see Chap. 5: Sustainable Marketing).

2.3

Synthesis of Micro- and Macro-Marketing

33

It is highly likely that marketing systems will continue to grow and evolve over time. Even its definition has evolved to reflect human desire and societal complexities more accurately. For example, according to Layton (2011), the marketing system is a network of individuals, groups, and/or entities embedded in a social matrix, linked directly or indirectly through sequential or shared participation in economic exchange, which jointly and/or collectively creates economic value with and for customers, through the offer of assortments of goods, services, experiences, and ideas, that emerge in response to, or anticipation of, customer demand. The output of marketing systems is not limited to products; it can include experiences, ideas, and concepts. Likewise, rather than only satisfying demand, marketing systems are also capable of anticipating and shaping it (Layton, 2019). Marketing systems do not just deliver products to market but bring dynamism to society that encourages continual progress. Marketing now performs a variety of functions to enable market systems to operate effectively. For example, multiple systems, organisations, and individuals are required to work together to deliver products from a farm to our tables. This includes the farm (the producer), logistic companies, banks, retailers, middlemen, and so on. Marketing systems have since evolved from simple, straightforward structures involving only the buyer and seller to include other parties that affect the buying and selling process (Layton, 2011). These parties may not even directly impact the consumer but still play a role in the process. Marketing is central to anticipating and responding to evolving marketplace demands, with competition as the driving force. However, an effective system that works for all is only possible within ethical boundaries (Nill & Schibrowsky, 2007). It is vital to effectively correct any power imbalances. Regulatory and policy functions are needed to support and control marketing systems to prevent abuses of power. Such regulations can include legal provisions such as contract and property law, competition and anti-trust commissions, reliable financial institutions, fair information systems, and bodies in charge of transparency oversight.

2.3

Synthesis of Micro- and Macro-Marketing

The two main schools of marketing thought are micro- and macro-marketing. Micromarketing refers to marketing strategies and advertising campaigns that target specific customers based on their niches and unique characteristics (Hashimoto, 1974). Under the micro-marketing school, firms place a greater focus on individual consumer behavioural patterns and the four Ps of marketing. Micro-marketing main’s objective is to elicit higher loyalty from individuals. On the other hand, macro-marketing has a more holistic and wider viewpoint, which includes all business facets from production to global business behaviour (Bartels & Jenkins, 1977). Macro-marketing seeks to connect and draw links from the firm’s production process all the way to global changes in consumer patterns. Moreover, not only does it account for the firm’s relationship with consumers,

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macro-marketing also concerns legal responsibilities, environmental impacts, and social responsibility. Currently, micro-marketing is the dominant perspective, possibly due to firms’ desire to narrow down their targets to as specific a group as possible. While there are few concerns with firms continuing to adopt a micro-marketing perspective, the macro view should by no means be ignored. As consumers are becoming increasingly concerned with a firm’s relationship to other stakeholders and their own consumption values, companies should aim to combine both micro- and macromarketing in their practices to obtain more desirable outcomes (Hunt & Burnett, 1982). The shift in marketing perspectives can be seen by comparing the transactional view with that of the more modern, sustainable marketing perspective. As transactional marketing focuses on obtaining as many customers as possible to increase sales volume, there are fewer firm–customer interactions due to a shorter timeframe (Akroush, 2010). While it is useful in increasing ‘point of sale’ transactions, it is less effective in building trusting relationships and constant communication between a firm and its stakeholders. Firms that adopt the sustainable marketing perspective seek to take more responsibility over their environmental and social impacts. Further to promoting and selling their products and services, businesses also seek to champion environmental and social causes, as well as to guarantee that their business practices are ethical. This can range from ensuring their products are recyclable and environmentally friendly, to opting for local sourcing of food products, which benefits local farmers and producers. An increasing number of firms that still adopt the more mainstream micromarketing perspective are shifting towards a stakeholder perspective in their business activities. Mounting consideration is being given to how a firm’s marketing initiatives lead to wider-reaching repercussions. However, their attention mostly remains focused on marketing as a managerial activity and philosophy which is more passive, and market driven. There is still insufficient attention being paid to the power of business and consumption practices, their societal influence, and how their study and profession could help improve its broader societal impacts (Layton, 2009). In order to advance our understanding of marketing’s role in society, we need to recognise that first, consumer sovereignty is limited, and second, micro-marketing decisions have substantial macro-level impacts. As discussed in Chap. 1, consumer sovereignty can be considered a flawed concept, as consumers can still be discriminated against, thus limiting their sovereignty. Moreover, such other issues as addiction and problematic consumption also highlight the question of whether all blame should be shifted towards the consumer (Tadajewski, 2018). Some scholars have even gone further to claim that consumer sovereignty is a dangerous fiction in that it delegitimises more democratic and humane alternatives to current regimes of market capitalism (Schwarzkopf, 2011). Marketing can cause harm if used recklessly by organisations while ignoring their social responsibilities for short-term corporate interests (Sheth & Sisodia, 2005). Moreover, the line between sovereignty and being nudged/pushed is becoming

2.4

The Three Schools of Marketing Thought

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increasingly blurred, particularly when digital channels are involved (Dholakia et al., 2021). To address macro-level problems, we must also consider micro-level decisions and activities. Rather than view micro- and macro-marketing as separate entities, they should be seen as intrinsically intertwined, as all micro-marketing activities occur within, and thus derive meaning from, a larger marketing system (Shultz, 2007a). In other words, micro-marketing activities should align with macromarketing objectives to achieve the organisations’ macro goals (Little et al., 2019). To understand marketing implications, a bottom-up approach to developing microlevel behavioural insights can provide a basis for deriving significant macromarketing implications to researchers and practitioners (Viswanathan et al., 2014). Therefore, both critical and normative perspectives can help in the evaluation of marketing activities with negative consequences and inform debates and decisions on marketing practice. As Sirgy (2021) has highlighted, macro-marketing is deeply concerned with the interactions among markets, marketing, and society. It is closely tied to the idea that the entire marketing system enhances the quality of life for consumers.

2.4

The Three Schools of Marketing Thought

In the 1960s, the conflicts and ideas over marketing’s benefits and detriments created three main schools of thought on marketing’s function and purpose (Arnold & Fisher, 1996): namely, the apologists, the social marketers, and the reconstructionists. This section examines these three schools of thought in detail, exploring how marketing has evolved to address social issues more accommodatingly.

2.4.1

The Apologists

According to several economists and scholars, there is no need to integrate marketing principles and philosophies into non-commercial activities and domains as marketing is sufficiently beneficial to society by virtue of its economic contributions (Luck, 1969). The more ‘traditional’ apologist school of thought claims that marketing does not need to re-establish its value to society using other means and methods. Marketing should also not be used outside of the marketplace, nor be reinterpreted to reflect social responsibilities. Moreover, its performance should only be measured by organisational benchmarks, not those of society. As such, social responsibility is viewed negatively as a restraining force of marketing. While there are negative repercussions resulting from marketing activities, they are a ‘lesser evil’ compared to the efficiencies of marketing. Additionally, efforts to broaden the marketing concept would cause confusion and cause marketing to lose its identity. Therefore, marketing’s scope should be limited to processes and

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activities that result in market transactions. There is a need to explicitly distinguish between the responsibilities of public and private institutions before social responsibilities can be included in the marketing mix. An argument against social responsibility also includes the notion that social profit already serves society via the effective allocation of resources and that it overly empowers managers in deciding objectives (West, 1974). Furthermore, two other schools of thought emerged claiming that marketing has more value beyond profitability and economics. These schools, namely, the social marketers and the reconstructionists, argue that marketing has lost its value to society and needs re-examination. However, both schools differ in their approaches to marketing and societal issues.

2.4.2

The Social Marketers

Social marketers argue that marketing is inherently sound, but that it produces socially and environmentally undesirable results, such as the drive for consumption and materialism (Kotler & Levy, 1969). Marketing is inherently a neutral tool with the potential for both good and evil. There is no need to reconstruct marketing; rather, it need only expand to include broader concerns such as as social justice and ecological welfare. Therefore, when correctly and sensitively applied, marketing can enact social value and change. Kotler and Levy (1969) argued that, as one of the interpretations of the marketing concept is to sensitively serve and satisfy human needs, it can also be implemented to serve a larger role in the service of society. Kotler and Levy (1969) further argued against the apologists that marketing should be understood as a general concept of exchanges, not merely market transactions. As these are not limited to monetary exchanges, non-business entities can also profit from the reinterpretation and practice of the marketing concept. This led to the concept of social marketing being introduced as a panacea to address the problems facing society. The role of marketing has also changed from focusing on what products can be sold to what products should be sold, as well as an emphasis on products eliciting a sense of social satisfaction from its users by minimising their environmental impacts (Feldman, 1971). Marketing can also address social justice issues by improving the conditions of disadvantaged consumers, by helping retailers be more competitive and efficient (Sturdivant, 1968).

2.4.3

The Reconstructionists

According to this school of marketing thought, marketing’s core foundations are flawed and should be redefined and rebuilt to address social and humanistic needs.

2.5

Moving Beyond Academic Theories

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They call for a philosophical broadening of marketing, not just as an operational extension (Arnold & Fisher, 1996). Marketing is no longer a neutral instrument due to its flaws and weaknesses in addressing societal and human needs. Marketing is also viewed as having ‘permeated all corners of society and, in fact, could be a broader class of techniques that define basic social or human behaviour’ (Kotler & Levy, 1969). Marketing should also focus predominantly on the exchange of values as its disciplinary core. The reconstructionist movement was also largely driven by social undercurrents challenging social norms and established institutions. Calls against materialism, the need for social justice, and urgent environmental concerns spurred consumers and academics to reflect on the ethos and pathos of marketing. Reconstructionists closely examine the flaws of the marketing process, believing that ‘simply applying tools and techniques to social problems was irrelevant if the technology itself is inherently flawed’ (Arnold & Fisher, 1996). Proponents argue that the marketing concept must be expanded to include the concept of social responsibilities, social systems and their social effects, and a greater focus on the humanistic perspective. Marketing should therefore be reconstructed to be humanistic, socially responsible, and value driven for its flaws to be exposed and fixed. Today, we are supposed to be in the era of societal marketing. Let us look at this outlook of marketing in more detail. In addition to business profitability and consumer welfare, ethical and social considerations are important components of the societal marketing orientation. Firms that adopt a societal marketing outlook view their firms as active agents of good and take initiatives to use their considerable resources to resolve certain societal issues as best as they can. Its activities and plans are centred around the well-being of its stakeholders. This can be seen in the origin of the term ‘corporation’, which is derived from the Latin term ‘corpus’, meaning ‘body of the people’ (Chaffee, 2017). These organisations had close ties to governments and society, and were involved in the construction of asylums, orphanages, homes for the poor, and healthcare facilities. These organisations governed universities, towns, and religious institutions during the Middle Ages, and they also played a crucial role in establishing trade networks and developing newly conquered/colonised lands (Chaffee, 2017).

2.5

Moving Beyond Academic Theories

Effective marketing and branding aim to align all business elements and marketing strategies to achieve certain goals (Srivastava & Sushil, 2017). This includes being able to clearly communicate a message to resonate with and spur one’s target audience into action. Thus understanding a consumer’s values and thought process enables brands to frame their interactions in a more favourable light. Our own points of view or worldviews have an impact on the solutions we seek, the goals we want to achieve, and the choices we make as consumers and marketers. Our way of thinking and how we interact with the world around us, in turn, affects

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the way we make decisions and engage with the world around us. Therefore, the narrative we like to hear and the principles we uphold determine how we ‘perform’ marketing. The more practical perspective of marketing, namely, being able to apply the right knowledge and methods, contributes immensely to a firm’s financial success (Hunt, 2007). Marketing governs a wide range of business practices, including planning processes, reaching the right customers, advertising, public relations, and customer support. Merely knowing how marketing is effective is insufficient; instead, one must have a sound grasp of the underlying principles behind successful marketing practices. Possessing the necessary knowledge of marketing theory not only enhances the existing state of knowledge but also ensures that both future academics and practitioners can learn from past studies and predict future trends (Kumar, 2015). More companies are seeking to permeate a belief system or worldview throughout their marketing initiatives (Levy & Luedicke, 2013). Doing so enables consumers to more accurately identify brands that share their beliefs, which ties into the notion that people want to be a part of something bigger than themselves. Nowadays, people evaluate the brand more closely than the product. Brands are no longer just corporate identities; they may also offer a sense of purpose and community to their loyalists. One primary beneficiaries of marketing knowledge is the marketing manager. Being able to understand the psychology and decision-making process of consumers enables the marketeer to identify and develop methods to sell their products more effectively. Insightful marketing knowledge helps managers plan, predict, and control marketing activities. The field of marketing is also a scientific one (Kumar, 2015). While it may not be a ‘hard’ science, such as physics or chemistry, proper marketing planning also involves critically analysing data to inform decisions, identifying quantitative and qualitative patterns in the market and behaviour, and running experiments before rolling out campaigns. Moreover, while marketing is undoubtedly intertwined with businesses, it is important to be able to distinguish between running a marketing campaign versus excelling at one’s business (Morgan, 2012). While effective business strategies and marketing are both important, they are, however, ultimately different. Proper marketing knowledge allows managers to more clearly distinguish between the two. Freeing managerial experts from the hassle of concocting methods to increase sales, while simultaneously giving creative marketers more freedom to develop campaigns, benefits firms in the long run. Both management and marketing experts can thus focus on their respective areas of expertise and yield better results. Marketing not only impacts the firm and its customers, but also has a wider influence on society. The academic study of marketing sheds light on how it impacts society, as well as the necessary safeguards to protect consumers. Marketing theory can better inform public policy, thus enabling governments and certain institutions to intervene when needed (Wilkie & Gardner, 1974). Firms can also be held accountable for their marketing activities, ensuring that such unethical practices as spreading misinformation or slander can be more appropriately handled. Consumers can also

2.6

Marketing Through the Lens of Feminism

39

equip themselves with the proper marketing knowledge and be protected against unscrupulous techniques by knowing their rights. While marketing is important to improving profits, marketing theory itself is not limited to profit-making ends (Andreasen, 2012). Not-for-profit and charitable organisations can also refer to marketing theories and knowledge to increase the impact or awareness of their campaigns. While these organisations might not gain direct financial benefits from their marketing know-how, they can use marketingrelated knowledge to better connect with consumers and gain greater levels of societal support. It is well worth considering the role and essential functions of marketing in modern society. This leads to a number of questions: Why is marketing important? Does it simply aim to satisfy the needs and wants of consumers? Should it focus on creating demand? Is it appropriate to use propaganda to condition buyers and sellers in a more favourable light? Are there any explicit boundaries in marketing that should be drawn? We now know that the language and representations we use can influence both our thoughts and behaviour. Similarly, this is applicable to how certain brands and firms market their products. While resonating with a target audience is important, doing so by alienating or misrepresenting others is undesirable. For example, there is an increasing awareness on the need to pay attention to the type of language we use in talking about marketing, as it has real and vital consequences beyond sales (e.g. societal repercussions) (Middleton & Turnbull, 2021). To illustrate this, let us now turn to how marketing has changed and evolved over time by examining it through the lens of feminism.

2.6

Marketing Through the Lens of Feminism

Advertising and marketing material, or stories in the so-called ‘early days of marketing’, tended to be more masculine in nature (Tsichla, 2020). Clear product and branding distinctions were drawn between being active/passive, hard/soft, rational/emotional, dominant/submissive, quantitative/qualitative, and so on. Brands often associated ‘macho’ and dominant traits with male consumers, perpetuating the notion that using certain products would enhance one’s ‘manliness’ (Greenfield et al., 1999). Today, such practices are considered derogatory towards woman and reinforce unwanted stereotypes.

2.6.1

Commodity Feminism

Due to the fatigue and dislike of the ‘weak and submissive’ female portrayal in advertising material in the past, brands began to ‘embrace’ the feminist movement and churn out marketing content that emphasises female empowerment.

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Unfortunately, the desire to show support for female empowerment was instead blurred by increased consumerism. There were and still are growing scepticisms about how well-suited such actions are to feminist values and ideals. Commodity feminism suggests that feminist ideals, ideas, and icons are ‘rehabilitated’ for advertising purposes. It encourages the notion that, by purchasing certain products, consumers are also buying and supporting the feminist ideology. Advertising tactics in the era of commodity feminism no longer portray women as passive figures of the male gaze. As opposed to being overtly genteel or demure, female models are instead meant to strike independent poses and exude a strong sense of self-control. Women are also encouraged to show their liberal values and boldly embrace their own sexuality. However, according to some scholars, this expression of sexuality has almost always been portrayed in a way intended to be pleasing to men (Gill, 2008). In other words, as brands exploit these feminist ideals through products or advertising content, it ultimately returns them to male possessive individualism (Goldman et al., 1991).

2.6.2

Femvertising

In response to the realisation that the feminist ideology was being threatened by commodity feminism, the term ‘Femvertising’ was introduced by Samantha Skey in a 2014 AdWeek panel. Femvertising has been defined as ‘advertising that employs pro-female talent, messages, and imagery to empower women and girls’ (Bahadur, 2014). Femvertising messages are heavily targeted to members of Generation Y who have embraced third-wave feminism (Descouens & Gerbault, 2021). Their messages aim to challenge existing gender norms and stereotypes. Rather than seeking the singular ‘ideal woman’, all women are embraced as being unique, diverse, authentic, and inherently ‘ideal’ in their own ways. They also shy away from portraying women performing such traditional tasks as housekeeping duties. Instead, women are usually shown to be in more active scenarios or achieving professional success. More women are now the main protagonists in marketing representations. As opposed to traditional gender stereotypes and often flat portrayals of women, the use of positive messages and imagery to show women as multidimensional people is highly encouraged in modern advertising. An apt example of this can be found in Dove’s series of campaigns to debunk perceptions of ‘beauty’. Their campaign, ‘Reverse Selfie’, which was launched in 2021, targeted young girls on the issue of beauty standards in the digital era (Ormesher, 2023).

2.7

2.7

Critical Perspective of Marketing

41

Critical Perspective of Marketing

A critical perspective on what is happening in the marketplace and why it is happening helps to evaluate marketing activities with negative consequences. Marketing issues are constantly changing and never ending (Kilbourne & Beckmann, 1998). Marketers must be able to evaluate and understand the changes and issues occurring both within their industry and the marketplace at large. One of the biggest drivers of marketing change today is technology (Grewal et al., 2020). However, it generates its own share of challenges and changes, including the rapid rise of big data, AI, privacy concerns, and social media issues (Moorman et al., 2019). Datadriven marketing, digitisation, and data mining using personal data are also huge concerns for consumers and require further understanding and insight (Bleier et al., 2020). The recent pandemic has led to enormous disruptive and disproportionate impacts on multiple industries and ways of conducting business (Das et al., 2021). Moreover, it is important to identify and understand the ideologies and responses of society and individuals against certain marketing practices and worldviews. Consumers are becoming increasingly aware of environmental issues, exploitations, and their individual rights and liberties (Aksoy et al., 2021). Firms are now under more scrutiny and pressure to act in morally and ethically correct manners (Chalmers & Van Den Broek, 2019). Consumption patterns of consumers are also changing. As early as the late 1970s, it was recognised that consumer values in Western countries had shifted from an overwhelming emphasis on material well-being and physical security towards quality of life (Inglehart, 1977). Movements for community food projects, renewable energy, and sustainable products and supply chains embody and illustrate this shift from a post-material politics to a new and sustainable materialism. They pose a challenge and transcend both the values versus material condition dichotomy and the political determinism of post-materialism. These movements indicate a departure from individualist lifestyle politics or ethical consumerism, towards collective, sustainable, and prefigurative action (Schlosberg, 2019). These movements, such as minimalist lifestyles and zero-waste living, have emerged in protest to materialistic ideals, and are influencing marketing practices in numerous ways (Par, 2021). While these movements are often placed under one label, they are not homogenous and have their own needs, desires, motives, and goals (Pangarkar et al., 2021). A detailed discussion of evolving consumer representation and roles is in Chap. 7. After understanding the changes occurring in the marketplace, the next step is to decide how firms and marketers should respond. A normative perspective on what marketers ‘should’ do could help determine an organisation’s marketing philosophy, which would further direct marketing activity. Normative approaches are important as marketing and corporate activities both influences, and are influenced by, the external environment, which extends to the ethics involved. Firms must continuously and proactively consider what action they can and should undertake in their marketing activities (Wilkinson & Young, 2005). The increasing number, degree, and speed of interconnectivity among people and

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organisations have produced complex and turbulent environments, in which firms face strong forms of uncertainty. To survive and adapt to such environments requires firms to effectively participate in, help co-create, and sustain networks of relations in which no firm has control. As highlighted by Wilkinson & Young, (2005), this requires a change in management ideals, values, and strategies.

2.8

Chapter Summary

This chapter discusses how the philosophy of marketing has evolved over the years. A common criticism of marketing is that marketing theories themselves add little or no value to the actual act of marketing. However, this seems far from the truth. The study of marketing not only adds value to improving sales but also in informing general policy-making and equipping consumers with proper knowledge. Moreover, there are ongoing academic discussions over the positives or negatives of marketing. Do marketing agents always aim for the good of consumers, or might they be spreading misinformation or exaggerations to drum up their sales? Is marketing always manipulative and deceptive, and, if so, is this acceptable to a certain degree? It is important for marketing academics, practitioners, and even governments and society at large to discuss these issues and examine their changes over time.

References Akroush, M. N. (2010). Transactional marketing and relationship marketing paradigms: A structural equation modelling approach. International Journal of Electronic Customer Relationship Management, 4(2), 125–160. Aksoy, L., Banda, S., Harmeling, C., Keiningham, T. L., & Pansari, A. (2021). Marketing’s role in multi-stakeholder engagement. International Journal of Research in Marketing, 39(2), 445–461. Andreasen, A. R. (2012). Rethinking the relationship between social/nonprofit marketing and commercial marketing. Journal of Public Policy and Marketing, 31(1), 36–41. Arnold, M. J., & Fisher, J. E. (1996). Counterculture, criticisms, and crisis: Assessing the effect of the sixties on marketing thought. Journal of Macromarketing, 16(1), 118–133. Bahadur, N. (2014, October). ‘Femvertising’ ads are empowering women—and making money for brands. HuffPost Women. Available at: https://www.huffpost.com/entry/femvertising-advertis ing-empowering-women_n_5921000 Bartels, R., & Jenkins, R. L. (1977). Macromarketing. Journal of Marketing, 41(4), 17–20. Bleier, A., Goldfarb, A., & Tucker, C. (2020). Consumer privacy and the future of data-based innovation and marketing. International Journal of Research in Marketing, 37(3), 466–480. Brunswick, G. J. (2014). A chronology of the definition of marketing. Journal of Business & Economics Research (JBER), 12(2), 105. Chaffee, E. C. (2017). The origins of corporate social responsibility. University of Cincinnati Law Review, 85, 347–373.

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Chalmers, A. W., & Van Den Broek, O. M. (2019). Financial volatility and public scrutiny as institutional determinants of financial industry firms’ CSR. Business and Politics, 21(2), 240–266. Das, G., Jain, S. P., Maheswaran, D., Slotegraaf, R. J., & Srinivasan, R. (2021). Pandemics and marketing: Insights, impacts, and research opportunities. Journal of the Academy of Marketing Science, 49(5), 835–854. Descouens, M., & Gerbault, V. (2021). Generation Y’s attitude towards femvertising in cosmetics: women empowerment or purplewashing? A Mono-Method Qualitative Study. Available at http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-185097 Dholakia, N., Darmody, A., Zwick, D., Dholakia, R. R., & Fırat, A. F. (2021). Consumer choicemaking and choicelessness in hyperdigital marketspaces. Journal of Macromarketing, 41(1), 65–74. Feldman, L. P. (1971). Societal adaptation: A new challenge for marketing. Journal of Marketing, 35(3), 54. Gill, R. (2008). Commodity feminism. The international encyclopedia of communication. https:// doi.org/10.1002/9781405186407.wbiecc055 Goldman, R., Heath, D., & Smith, S. L. (1991). Commodity feminism. Critical Studies in Media communication, 8(3), 333–351. Greenfield, J., O’Connell, S., & Reid, C. (1999). Fashioning masculinity: Men only, consumption and the development of marketing in the 1930s. Twentieth Century British History, 10(4), 457–476. Grewal, D., Hulland, J., Kopalle, P. K., & Karahanna, E. (2020). The future of technology and marketing: A multidisciplinary perspective. Journal of the Academy of Marketing Science, 48(1), 1–8. Hashimoto, I. (1974). The formation of micro marketing theory. Kyoto University Economic Review, 44(1–2), 1–18. Hunt, S. D. (2007). A responsibilities framework for marketing as a professional discipline. American Marketing Association, 26(2), 277–283. Hunt, S. D., & Burnett, J. J. (1982). The macromarketing/micromarketing dichotomy: A taxonomical model. Journal of Marketing, 46(3), 11–26. Inglehart, R. (1977). The silent revolution: Changing values and political styles among Western publics. Princeton University Press. Kilbourne, W. E., & Beckmann, S. C. (1998). Review and critical assessment of research on marketing and the environment. Journal of Marketing Management, 14(6), 513–532. Kotler, P., & Levy, S. J. (1969). Broadening the concept of marketing. Journal of Marketing, 33(1), 10. Kumar, V. (2015). Evolution of marketing as a discipline: What has happened and what to look out for. Journal of Marketing, 79(1), 1–9. Layton, R. (2009). On economic growth, marketing systems, and the quality of life. Journal of Macromarketing, 29, 349–362. Layton, R. (2019). Marketing systems–looking backward, sizing up and thinking ahead. Journal of Macromarketing, 39(2), 208–224. Layton, R. A. (2007). Marketing systems–A core macromarketing concept. Journal of Macromarketing, 27(3), 227–242. Layton, R. A. (2011). Towards a theory of marketing systems. European Journal of Marketing, 45(1), 259–276. Levy, S. J., & Luedicke, M. K. (2013). From marketing ideology to branding ideology. Journal of Macromarketing, 33(1), 58–66. Little, V. J., Lee, C. K. C., & Nair, S. (2019). Macro-demarketing: The key to unlocking unsustainable production and consumption systems? Journal of Macromarketing, 39(2), 166–187. Luck, D. (1969). Marketing notes and communications: Broadening the concept of marketing -too far. Journal of Marketing, 33, 53–55.

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Middleton, K., & Turnbull, S. (2021). How advertising got ‘woke’: The institutional role of advertising in the emergence of gender progressive market logics and practices. Marketing Theory, 21(4), 561–578. Moorman, C., van Heerde, H. J., Moreau, C. P., & Palmatier, R. W. (2019). Challenging the boundaries of marketing. Journal of Marketing, 83(5), 1–4. Morgan, N. A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), 102–119. Nill, A., & Schibrowsky, J. A. (2007). Research on marketing ethics: A systematic review of the literature. Journal of Macromarketing, 27(3), 256–273. Ormesher, E. (2023). Dove takes crusade against unrealistic beauty filters into TikTok, The Drum., Available at: https://www.thedrum.com/news/2023/03/08/dove-takes-crusade-against-unrealis tic-beauty-filters-tiktok. Pangarkar, A., Shukla, P., & Taylor, C. R. (2021). Minimalism in consumption: A typology and brand engagement strategies. Journal of Business Research, 127(January), 167–178. Par, T. (2021). Materialism to Minimalism. BU Well, 6(1), 1–3. Schlosberg, D. (2019). From postmaterialism to sustainable materialism: The environmental politics of practice-based movements. Environmental Politics, 1–21. https://doi.org/10.1080/ 09644016.2019.1587215 Schwarzkopf, S. (2011). The political theology of consumer sovereignty: Towards an ontology of consumer society. Theory, Culture & Society, 28(3), 106–129. Sheth, J. N., & Sisodia, R. S. (2005). A dangerous divergence: Marketing and society. Journal of Public Policy & Marketing, 24(1), 160–162. Shultz, C. J. (2007a). Marketing as constructive engagement. Journal of Public Policy and Marketing, 26(2), 293–301. Shultz, C. J. (2007b). The unquestioned marketing life? Let us hope not. Journal of Macromarketing, 27(3), 224. Sirgy, M. J. (2021). Macromarketing metrics of consumer Well-being: An update. Journal of Macromarketing, 41(1), 124–131. Srivastava, A. K., & Sushil. (2017). Alignment: The foundation of effective strategy execution. International Journal of Productivity and Performance Management, 66(8), 1043–1063. Sturdivant, F. D. (1968). Better deal for ghetto shoppers. Harvard Business Review, 46(2), 130. Tadajewski, M. (2018). Critical reflections on the marketing concept and consumer sovereignty. In The Routledge companion to critical marketing (Vol. 44, pp. 196–224). Routledge. Tsichla, E. (2020). The changing roles of gender in advertising: Past, present, and future. Contemporary Southeastern Europe, 7(2), 28–44. Viswanathan, M., Jung, K., Venugopal, S., Minefee, I., & Jung, I. W. (2014). Subsistence and sustainability: From micro-level behavioral insights to macro-level implications on consumption, conservation, and the environment. Journal of Macromarketing, 34(1), 8–27. West, R. R. (1974). What are the social responsibilites of business? In J. H. Westing & G. Albaum (Eds.), Modern marketing thought. Macmillan Publishing Company. Wilkie, W. L., & Gardner, D. M. (1974). The public role of policy marketing research decision in making. Journal of Marketing, 38(1), 38–47. Wilkinson, I. F., & Young, L. C. (2005). Toward a normative theory of normative marketing theory. Marketing Theory, 5(4), 363–396.

Chapter 3

Benefits and Detriments of Marketing

3.1

Introduction

Countless questions have been raised on the general impact and nature of marketing. Does marketing have altruistic attributes, or is it predominantly focused on profitgenerating purposes? How does marketing impact society in a tangible or intangible manner? How does marketing shape consumer behaviour and societal values? Marketing and advertising implications have been widely discussed since the twentieth century (Borden, 1942), and continue to be debated to this day. Marketing’s process, methods, and messages could lead to either positive or negative outcomes. Marketing and, more specifically, advertising have both intended and unintended effects, ranging from inducing confusion and materialistic consumption to improving job performance and economic growth (Xu, 2020).

3.2

Primary Benefits of Marketing

Marketing yields numerous benefits beyond enhancing a firm’s performance. It plays a significant role in societal and economic development, moving beyond mere corporate gain. Rather than taking a self-serving, firm-centric approach, more companies are moving towards a society and stakeholder perspective, as well as being more socially responsible for their actions (Murphy, 2021). Firms are now encouraged to be pro-society and pro-environmental rather than simply pro-business (Laczniak & Murphy, 2012). Aksoy et al. (2021) pointed out that marketing’s responsibility included communicating with stakeholders, building brand reputation, understanding the needs of the market, and engaging with the market. Firms must broaden their engagement and communicate with multiple stakeholders, not just consumers. An important topic to discuss is whether marketing solely serves the

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 D. S. Mutum, E. M. Ghazali, Consumers, Society and Marketing, CSR, Sustainability, Ethics & Governance, https://doi.org/10.1007/978-3-031-39359-4_3

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interests of for-profit companies, or if its strategies and principles can also promote social welfare and positive change. Commercial marketing techniques and principles can also be used for altruistic and socially beneficial outcomes (Andreasen, 2012). Through constantly creating new and improved products, the overall welfare and quality of life of consumers might increase (Arndt, 1981). Marketing also plays an important role in improving the overall economy. It stimulates demand for products and services, aids in the efficient distribution of products, ensuring that goods and services reach those who need them most. Moreover, marketing plays a crucial role in introducing innovations to the market, which can drive industry advancement, enhance living standards and create jobs, thus providing more development opportunities in poorer societies (Karnani, 2017). The beneficiaries of marketing extend beyond firms and their direct or indirect consumers, encompassing wider elements of society and economy. Indeed, public policymakers, local economies, and broader societal members can also experience the positive impacts and significant benefits of thoughtful and responsible marketing initiatives. These are discussed below: The following section explores the benefits of marketing beyond the lens of profit generation, namely social marketing, marketing by non-profit organisations, contributions to economic development and finally, benefit to consumers.

3.2.1

Social Marketing

Social marketing can be understood as ‘the application of marketing to the solution of social and health problems’ (Kotler & Zaltman, 1971). Social marketing also refers to the use of marketing techniques and skills to sell healthier ideas or concepts to society. It operates at the intersection of public interest and traditional marketing strategies, aiming to influence social behaviours for the greater good. Furthermore, social marketing represents a systematic process through which programmes aimed at inducing social change are developed, executed, and evaluated, often targeting specific segments of society for the greater good (Andreasen, 1994). Social marketing is widely used in advocating for public causes, such as encouraging healthier lifestyles, spreading anti-smoking sentiment, or preventing obesity (Gracia-Marco et al., 2012). Social marketing is discussed in greater detail in Chap. 6.

3.2.2

Marketing by Non-profit Organisations

In line with social marketing initiatives, marketing know-how can also be implemented effectively by non-profit organisations (NPOs) (Andreasen, 2012), including charities, civil society institutions, and advocacy groups. These marketing efforts transcend increasing awareness in that they also aim to induce tangible behavioural changes, inspire meaningful action, and mobilise resources towards

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specific causes. Non-profit marketing can also be bolder in how it approaches consumers. They can often adopt a more direct and emotive approach when engaging with the public, utilising powerful narratives and compelling visuals to connect deeply with people’s sense of empathy and justice. A successful example would be UNICEF’s 2013 ‘Likes don’t save lives’ campaign (Toor, 2013). The campaign launched three commercials to spread the message that supporting causes online does not equate to actual donations. The campaign urged viewers to take an active stance and donate to its humanitarian efforts, as opposed to simply liking posts online. While certain marketing practices can be applied in non-profit organisations, there are several key differences due to the primary dissimilarities between forand non-profit organisations. Product differences aside (real products versus concepts and ideas), the target audiences differ greatly between for-profit and NPOs (Pope et al., 2009). First, NPOs have a broader and more diverse target audience. They must appeal not only to potential customers but also to volunteers, donors, funding agencies, and policy makers, among other stakeholders (Kramer, 2001). These stakeholders might be called upon to donate or contribute to a cause that may not provide them with direct tangible benefits. Instead, their reward may be intangible, deriving satisfaction from contributing to a meaningful cause and aligning with their personal or organisational values. They may also respond to the marketing mix very differently. Moreover, the benefits and assets received in exchange are usually intangible and non-monetary in nature. Despite the distinct end goals of non-profit organisations, the strategic implementation and outreach methods derived from traditional marketing can be adapted and used effectively by NPOs to foster engagement, raise funds, and amplify their advocacy efforts. This includes the use of social media to advance their objectives (Guo & Saxton, 2014). Social media messages employ viral marketing strategies to ensure a far reach (Parker et al., 2016). The term viral marketing was coined by Steve Jurvetson in 1997 and describes a strategy whereby content disseminates rapidly through social media networks, spreading organically from person to person much like a virus (Kirby, 2012). In marketing terms, it refers to ‘the strategic release or seeding of branded content into the socially networked online consumer ecosystem, followed by the potentially multiplicative spread of the content through the ecosystem as hosts (consumers) receive the content and are motivated to share the branded content with other consumers’ (Mills, 2012). A prime example of NPOs capitalising on viral marketing strategies through social media is the ALS ‘Ice Bucket Challenge’ in 2014 (Pressgrove et al., 2018). The challenge involved pouring a bucket of icy water over one’s head, capturing the moment on video, and then nominating someone else to the same, thereby creating a chain reaction of participation and awareness. The remarkable popularity of the campaign drew the participation of numerous high-profile celebrities, including Oprah and Bill Gates (Sifferlin, 2014). This campaign was ingeniously designed to increase both awareness and funding for Amyotrophic Lateral Sclerosis (ALS, also known as Lou Gehrig’s disease) and masterfully harnessed the power of social

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media to inspire millions of people worldwide to engage a cause that previously had a much lower profile. Thanks to the campaign, the ALS association reported a remarkable 187% increase in annual global funding (ALS Association, 2019). This innovative campaign not only increased global awareness of ALS but also sparked a significant surge in charitable donations, illustrating the potent impact of well-executed social media strategies in the non-profit sector.

3.2.3

Contributions to Economic Development

From a classical economic supply–demand perspective, marketing’s most significant influence is its substantial impact on aggregate demand. It acts as a bridge between the producer and consumer, thereby forming a critical component of modern economies. This influence is especially notable in terms of increasing autonomous consumption and marginal propensity to consume, on prospects for success of an investment in a new product, and on the volume of exports and imports (Wilkie & Moore, 1999). Thus, marketing can serve as both a stimulus and a pull factor in economic development, enabling countries to progress from agrarian societies to industrial powerhouses, and from there to advanced, service-driven economies. As Kinsey (1982) highlighted, marketing helps create latent demand, generate consumers, define markets, develop existing markets, and integrate customers’ wants, needs, and preferences. After latent demand materialises into effective demand, purchasing power might then be used to foster more prosperous economic conditions. Marketing also acts as an effective ‘multiplier’ or potent catalyst of entrepreneurial growth and development, particularly in emerging and underdeveloped ‘growth’ economies. Its growth enables economic integration, as well as the best potential use of an economy’s existing resources and productive capacity. It releases hidden economic power and unlock dormant economic potential. Furthermore, marketing presents an accessible entry point for aspiring professionals. It is often the most straightforward managerial sector for individuals to embark upon, owing to its pivotal role in satisfying critical business needs - primary the development of entrepreneurial talent and effective management capabilities (Drucker, 1958). At the organisational level, marketing should be infused, as proper management can organise and synergise economic efforts and energies to gather resources, thereby removing the self-limiting systems within a country that inhibit economic development. This synergy removes restrictive systems within a country that can otherwise stifle economic growth and development. In this context, labour and capital are undeniably central to economic progress. However, the role of management especially when it is adept at leveraging marketing strategies - is equally vital. It acts as a key player in unlocking a country’s resource potential and paving the way in creating new sustainable opportunities in the future (Freixanet et al., 2018).

3.2

Primary Benefits of Marketing

49

The subsequent sections centre more specifically on certain areas and insights into how marketing strategies and practices have directly and indirectly contributed to national economic well-being.

3.2.4

Benefits to the Economic System and Economic Development

In the twentieth century, the two primary approaches to economic development were capitalism, characterised by market-driven strategies, and socialism, where state intervention and planning played significant role (Kornai, 2000). Capitalism involves the ‘invisible hand’ of market-based economic liberalisation, while socialism entails the ‘visible hand’ of state planning and participation in a country’s economy (Inoguchi et al., 1999). Marketing’s role is considered more important in capitalist economies. Here, economic liberalisation is pursued through the implementation of government policies aimed to promote competition, deregulate industries, encourage private sector development, as well as to open the domestic economy to foreign competition. (Henisz & Zelner, 2005). This creates a vibrant and competitive market in which marketing becomes a key tool for businesses to differentiate themselves and thrive. The adoption of capitalism meant that marketing became an essential and core activity of firms in their efforts to remain relevant and competitive. As economies evolve, underpinned by pro-market reforms, marketing increasingly becomes a core firm activity (Sarathy & Banalieva, 2014). Unlike in socialist countries, where consumer supply and demand are state-regulated, capitalist consumers have the freedom of choice. From a broader macro-economic perspective, marketing plays an important role in fostering economic efficiency and sustainable growth. It helps allocate resources more efficiently, matching supply with demand, and thus plays a key role in the functioning of a free-market economy. According to Kinsey (1982), marketing achieves its impact on economic development through the following four key steps: 1. Stimulating the aggregate demand and expanding the size of the market. This involves creating strategies that encourage consumers to purchase more goods and services, thereby increasing overall demand and broadening the reach of the market. 2. Enhancing economic efficiency through customer-centric approach. This step is about tailoring products and services to meet customer needs more effectively. In doing so, businesses can reduce waste and align their offerings more closely with consumer preferences, thereby increasing efficiency. 3. Streamlining the transaction process to facilitate product usage by making consumers aware of products, ensuring they are available at the right places and times, and setting appropriate prices.

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4. Preemptive cost reduction and efficiency management. This involves conducting thorough market research before a product launch to assess whether there is sufficient demand for the product throughout its lifecycle. By influencing economic efficiency, marketing also contributes to societal wellbeing (Sirgy et al., 2012). Cundiff (1982) highlighted that micromarketing decisions and activities and specifically the role of entrepreneurs in introducing innovations in less-developed countries, result in the evolution of institutions and channels. This whole process was related to various stages of the economic development of these countries. Firms with greater marketing capabilities are generally more competitive and economically productive. Therefore, the more marketing capabilities a firm has, the larger the economic growth and contribution towards its country, as seen in the relationships between marketing and GDP growth (Klein & Nason, 2001; Wu, 2013). Marketing increases firm competitiveness and helps create new opportunities, both externally (trade and market growth) as well as internally (employment) (Sarathy & Banalieva, 2014). However, competitiveness is not solely a concern for firms; nations themselves must also strive to be competitive to attract foreign direct investment (FDI). Marketing, on a national scale - often referred to ‘place marketing’ - can be a powerful and effective tool for nations to attract FDI. This is particularly important in regions where clear developmental framework is already in place, and the vision and objectives for the area’s growth are well-defined. To heighten its effectiveness, place marketing should be supplemented and supported by place branding (Metaxas, 2010). Drawing on the experiences of the Association of Southeast Asian Nations (ASEAN), according to Kindra et al., 1998, the three main objectives of national promotion are: image building, which involves enhancing a country’s image as a favourable place for investment; investment generating; and, investment servicing, which is intended to assist prospective and current investors. This also involves crafting a compelling, unique, and authentic narrative about a location, which can effectively attract investors, businesses, tourists, and residents alike. Next, we explore how marketing is important in influencing sales and profits for domestic and foreign markets, as well as in providing employment opportunities. This is examined from the context of globalisation and FDI.

3.2.4.1

Outcomes in Domestic and Foreign Markets

While globalisation opens new markets, it also increases the competition faced by local firms. In response, these firms have several options: they can focus on leveraging their home market advantages, extend their local strengths abroad, rethink and reconfigure their business models, or actively contend with multinational corporations (MNCs) on an international scale (Dawar & Frost, 1999). In addition to being flexible, local firms must exhibit creativity in their strategic approaches and adaptations. Depending on the marketing and firm capabilities, companies choose specific entry modes that they believe will be most effective in

3.2

Primary Benefits of Marketing

51

achieving their objectives (Harzing, 2002). Due to an increase in globalisation and trade, business forms and investments must evolve continuously. This evolution ensures they remain competitive in both their home countries and in various international markets they enter (Chikán, 2008). Cultural concerns, economic distances, and market failures are all potential risks that firms must consider (Johnson & Tellis, 2008). Successful international firms are those that can adapt and localise their strategies to resonate with the cultural and consumer nuances of different markets (Belk, 2019). Successful firms contribute to the economies of both their home and host countries. In their home countries, they contribute through tax remuneration, and in the host countries, they often create vital employment opportunities, which, in turn, stimulate economic activity and growth. A common strategy employed by fast-food franchises is ‘glocalisation’—the refraction of globalisation through the local which results in glocality, a blend of both the local and global (Roudometof, 2016). This approach represents a fusion of global and local strategies, where companies adopt global business models while simultaneously customising their offerings and operations to suit local tastes and preferences. One prominent example is McDonald’s which, by applying the ‘think global, act local’ approach, managed to incorporate local elements into its marketing mix while retaining its distinct brand identity (Mathur, 2017). McDonald’s now offers different products to suit the taste of their local consumers, such as Nasi Lemak in Malaysia and vegetarian burgers in India. These offerings are reflected not only in their food products but also in their advertising campaigns. In Malaysia, the company uses its food offerings to relate to different tourist attractions in different states. In Kuala Lumpur, for example, they ingeniously used two ice cream cones with French fries to represent the iconic Petronas Twin Towers in their campaigns.

3.2.5

Employment Opportunities

Marketing has grown both as a scholarly discipline and also as a vibrant and diverse field of career prospects. Each marketing process can consist of several roles, each of which plays a vital part in contributing to the success of a firm’s overall marketing strategy. These roles span creative, analytical, communication, and strategic planning responsibilities, reflecting the multidisciplinary nature of the field. Importantly, not all marketing roles require the employee to engage with customers daily. There is a broad spectrum of positions within marketing that have different levels of customer interaction. Indeed, other positions, such as market researchers or research and development (R&D) teams, that are more internal, are also integral to the marketing process. Possibly owing to their crucial role in business sustainability and growth, the number of marketing jobs witnessed an increase during the pandemic period, and this trend is anticipated to continue in the foreseeable future (Moorman, 2021). Additionally, the integration of technology has also changed the marketing landscape, bringing both opportunities and challenges in the professional field. Marketing is now mainly dependent on technology in many areas, including the

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products offered, their promotion and distribution, and even the jobs and skillsets required (Jain & Yadav, 2017). Key concepts in the future of marketing and technology include health technology, AI and robotics, the dark web and chatbots, mobile and social, in-store technology, and legacy technology (Grewal et al., 2020). Along with rapid technological advancement and the expansion of marketing’s scope, employment opportunities in the market have also increased. Interested job seekers in marketing need not limit themselves to being door-to-door salespersons or sales managers. The field has evolved to a offer a myriad of new roles, such as data analysts, social media marketers, and influencers. These are only some examples of the many new jobs created in response to marketing needs. Moreover, FDI growth and, indirectly, advancement in marketing strategies, have also enabled more job creation on a global scale. The employment spectrum generated through FDI and marketing efforts is broad, ranging from low-skilled workers (e.g. factory workers and fast-food restaurant employees) to highly skilled managers capable of navigating complex global markets. For example, FDI inflows in the Mexican manufacturing sector increased both low- and high-skilled labour employment (Saucedo et al., 2020). While being largely self-evident, it worth noting that the beneficial impacts of FDI are not limited to under-developed or developing countries alone. Developed nations also enjoy the benefits. For instance, in 2016 alone, the US reported that 12 million people found jobs through FDI. More specifically, 6.1 million individuals found employment in foreign-owned firms, 2.4 million gained indirect and induced employment through ancillary industries and services, and 3.5 million benefitted from productivity spillovers, where the introduction of advanced technologies and practices led to enhanced overall productivity levels within the economy. These figures are attributable directly to FDI (Richards & Schaefer, 2016) and indirectly to marketing. They highlight the significant role that strategic marketing plays in attracting and sustaining such investments, thereby contributing to job creation and economic growth.

3.2.6

Benefits to Consumers

Marketing’s most consistent, and arguably most evident, benefit is in its direct and substantial impact on consumer well-being. It is instrumental in delivering value to consumers by identifying their needs and preferences, and offering products and services that satisfy these needs in an efficient and effective manner. Dixon (1984) suggested that the marketing system, through its emphasis on the provision of customer benefits through the availability of goods, services, experiences, and ideas, has an immediate impact on household needs and wants, on roles and behaviours, and especially on communications. It also significantly influences cultural beliefs and values, adding to the stock of cultural artefacts and transforms the everyday material settings of social life through product and service innovation, investments in physical infrastructure, and the creation of wants. However, Dixon

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Primary Benefits of Marketing

53

also cautioned that while marketing has numerous positive impacts, the system it operates within may ultimately be unsustainable due to issues like excessive resource consumption, environmental degradation, and fostering of materialistic values in society. Marketing’s impacts over the years can be clearly seen, such as in household products or artefacts, in writing and documents, in art and poetry, and in the design, construction, and use of homes, factories, and buildings (Layton, 2015). Marketing plays vital roles to improve the overall standard of living of consumers and societies alike (Wilkie & Moore, 1999). It encourages competition and innovation, which in turn leads to improved products and services, and a broader range of choices for consumers. The need for firms to remain competitive and the freedom of choice for customers provide consumers with a wider range of products of ever-increasing quality. Further to ensuring quality, target marketing has also narrowed down its approach from the many to a one-to-one. Marketing is becoming less generalised and more individualised (Arora et al., 2008). In addition to offering greater variety, more niche and specific consumer needs can also be met. As marketing and companies offer more than consumable goods, other services, such as healthcare and education, have also improved due to marketing. A prime example of this is how modern consumers can now enjoy better and more varied education, both overseas and locally, which strengthens the role of education as a lucrative export industry (Krasnova, 2018; Mutum et al., 2023). Many British and Australian universities, recognising the potential of global education markets, have strategically established branch campuses across several countries and continents. For example, Monash University now has campuses spread across various locations in Australia, Asia, and Europe. This is a reflection of a broader internationalisation trend in higher education, enabled and driven by effective marketing strategies. Moreover, with the advent of sophisticated marketing strategies in the healthcare sector, consumers now have access to better and more personalised healthcare services, both within their home countries and abroad. We have seen the growth of medical tourism fuelled by the ease of travel, and technological advances in information systems and communication. Even during the COVID-19 pandemic lockdowns, consumers could access telemedicine and digital healthcare providers from the comfort of their own homes (MIDA, 2021). The desire for new experiences and items is an impetus for trade. Concerns, ideas, and efforts to develop and facilitate marketing activities were already being discussed as early as the Middle Ages (Shaw & Jones, 2005). Historically, a prominent logistical effort to facilitate marketing activities involved the establishment of land and sea routes, e.g. the well-known Silk Road. Such activities not only facilitated economic growth between international communities but also gave rise to cultural exchanges and diffusion. These exchanges allowed for better understanding and communication between the East and West (Aigul et al., 2016). Marketing can fulfil consumers’ needs to have novel experiences and exposure to foreign cultures. Cultural exchanges via tourism activities have been highly facilitated due to advances in transportation (Richards, 2020). Thanks to technology, it is

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now possible to experience or glimpse exotic locations and foreign culture without being physically present. Entertainment exports are also effective channels of cultural exchanges and even sources of GDP growth, as evidenced by the popularity of Japanese anime (Hidayat & Hidayat, 2020) and Korean pop music worldwide. In some cases, the result of these exchanges is not just restricted to one product, industry, or cultural aspect; rather, cultural exports can encompass multiple industries, from tourism to entertainment and technological adoption (Jin & Yoon, 2017). These cultural exchanges, enriched by marketing strategies, can further facilitate economic activities by acting as a powerful pull factor for tourism (Lim & Giouvris, 2020; Lee & How, 2022). Marketing has been a significant contributor to economic development, elevating standards of living and improving social conditions. The various marketing functions transform resources into goods as services that meet a range of consumer needs. It has empowered consumers with choices, knowledge, and convenience, which are integral for a thriving society. Unfortunately, such complex functions and operations inevitably involve certain downsides, including opportunity costs, externalities, and unintended consequences that may challenge societal and environmental sustainability (Laczniak, 2017). In light of this, the following section examines some of the key criticisms levelled against marketing.

3.3

Key Criticisms of Marketing

As the potential negative consequences of marketing activities are hard to avoid, it is critical for all stakeholders to understand these repercussions and collaboratively decide how to best address them (Arndt, 1981). Instead of attributing markets’ failures solely to one entity, efforts should instead be redirected and redistributed towards ensuring that all parties share responsibility over their actions (Ferrell & Ferrell, 2008). It is important for firms to reconceptualise and incorporate out-ofmarket targets and challenges to achieve a common good (Pittz et al., 2020). Firms must employ a broader perspective of marketing and consider how its activities may harm their stakeholders, either intentionally or unintentionally (Fry & Polonsky, 2004). These consequences, otherwise known as marketing externalities, are not always immediately apparent. The costs and consequences of the actions might only be evident after a lapse of time (Varadarajan, 2020). Several key criticisms of marketing relate to unfair practices and social exclusion, materialism, globalisation, and environmentalism.

3.3.1

Unfair Practices and Consumer Exclusion

Marketing systems are not perfect. Therefore, certain consumers and firms experience exploitation or discriminative actions. From a marketing system’s perspective,

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unfair practices can be differentiated into two categories: exploitative abuse (firms preventing the entry of potential firms) or exclusionary abuse (actual abuse of market power). Examples of exploitative abuse include unfair pricing, misleading advertisements, and discriminatory dealing, whereas exclusionary pricing practices include predatory pricing, refusal to deal, and systematic obstruction of competition (Bougette et al., 2019). Discriminatory practices might be applied to certain groups due to their physical features, ethnicity, race, and so forth. Prejudice, fuelled by societal biases and stereotypes, serves as the main driver of such discrimination, perpetuating a cycle of exclusion and inequity (Yinger, 1998). Individuals encountering such prejudices suffer from service and price discrimination. Another main cause of discrimination is the lack of consumer knowledge of the product/services and or/consumer rights. Knowledgeable or a well-informed consumer stands in better position when seeking redress. More informed consumers are less likely to encounter unsatisfactory experiences and have a greater chance to resolve or redress any issues with relatively little friction. Less knowledgeable and more inexperienced consumers are less able to judge product performance and evaluate the goods and services they use. In addition, such consumers tend to be unfamiliar with procedures for seeking redress and registering complaints (Donoghue & De Klerk, 2009). It is important to note that not all forms of exploitation are obvious. In addition to discriminatory practices, there are growing concern over the covert tactics employed by marketers. This tactics are also known as stealth, undercover, deceptive, or masked marketing often exploit consumers’ lack of knowledge by not disclosing details of the product or company. They do so through misleading advertisements, masking the commercial nature of the product, creating surreptitious buzz, or refusing to disclose their information (Skiba et al., 2019). These tactics, often hidden in the fine print of terms and conditions, can lead to a breach of privacy and trust, further disenfranchising the consumer. Data-related concerns have increasingly become a recurrent issue. Studies indicate that many firms continue to design privacy policies and terms and conditions with the intent of inducing consumer agreement or consent, rather than supporting consumers to make informed and meaningful choices (CPRC, 2020). This reduces consumers’ ability to make informed choices on how to protect themselves from privacy breaches and violations. Furthermore, consumers find it difficult to prevent their personal information from being misused by firms. This includes discrimination and advertising targeting. Some practices considered as exploitative, may be embedded and repackaged in more seemingly innocent forms. An example of this is the ‘loot boxes’ in video games (King et al., 2019). These loot boxes (also called loot or prize crates) are used by video game companies to encourage consumers to spend real money for virtual in-game items. It should be noted that not all consumer exclusion consequences are intentionally introduced to place consumers at a disadvantage. As discussed earlier in Chap. 1 looks at consumer vulnerability, consumers might be disadvantaged due to their physical health, mental state, situational factors, caring responsibilities, and skillsets.

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While the advancement of technology is leading to a wealth of conveniences for large groups of consumers, most elderly people are facing digital inequalities in terms of access and proficiency (Francis et al., 2019). Older people might be at a disadvantage due to certain knowledge barriers, personal concerns, or scepticism (Vaportzis et al., 2017). The different disabilities consumers face may not be mutually exclusive. Indeed, it is possible for consumer groups with more ‘disadvantages’ to face a greater number of issues. Returning to older consumers, they not only face barriers in operating newer technologies but also existing physical conditions could further hinder their technology usage (Neves et al., 2015). More research is needed on which areas of technology require more usability and improvement to increase their accessibility (Hauk et al., 2018). While products and services are usually designed to be accessible to most consumers, a minority are unable to enjoy the new benefits the product might bring. Participatory design is a method to include consumers’ feedback in the product creation process (Joshi & Bratteteig, 2016). For example, consumers tend to be less active knowledge seekers as they age, thereby reducing their consumer awareness (Zaltman et al., 1978).

3.3.2

The Promotion of Materialism over Other Social Values

Many scholars have highlighted the negative effects of promoting materialism over other social values (see, for example Phillips, 1997). Materialism has been defined in many ways, permeating scholarly discourse. According to Górnik-Durose (2020), it can be understood as the importance people attach to worldly possessions which take a central place in their lives and are expected to be the greatest source of satisfaction or dissatisfaction, or as a high valuation of material goods that are perceived as a measure of a successful and happy life, and an indication of high status, power, and popularity. The current global marketing landscape, driven by relentless advertising and promotional campaigns, tends to prioritise materialistic values over social or moral values. This has repercussions on societal norms and individual mental health, as the incessant pursuit of material wealth rarely translates into long-term happiness and satisfaction. Personality is significant in the relationship between materialism and well-being, with neuroticism and vulnerable narcissism being seen as (negative) drivers of materialism (Górnik-Durose, 2020). According to Dittmar (2008), the pursuit of material possessions offers a temporary source of comfort and security, and an ineffective method of attaining happiness. This has repercussions on societal norms and individual mental health, as the incessant pursuit of material wealth rarely translates into long-term happiness and satisfaction. For instance, materialistic attitudes can lead to unhealthy competition among peers, fostering a culture of envy and discontent. The growing prevalence of mental health issues, such as anxiety and depression, is often linked to the constant comparisons with others that a materialistic culture encourages. However, because materialism is so easy to

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adopt, it is now deeply embedded in contemporary consumer culture (Dittmar, 2008; Kilbourne et al. 2018). Materialism is one of many possible consumption orientations, and it evolves as the product of a society’s particular set of cultural institutions (Kilbourne et al., 2018). Many authors have expressed concerns that our current worldview overemphasises consumerism, materialism, and the acquisition of wealth. Materialism and consumerism drive people to fulfil their needs. While the motives and values behind consumerism and materialism might be virtuous, problems arise when individuals consume excessively, as judged by the level needed to prevent others from being deprived of similar opportunities (Campbell, 2010). Materialism is also problematic as it forces consumers to constantly feel the need to compare themselves with others. Additionally, it instils the belief that to be happy, we must possess more than others (Par, 2021). There are several unhealthy behavioural and mental issues that might be linked to materialism. For example, materialism is found to be a key concept among problematic gamers and those suffering from gambling disorders (Eyzop et al., 2019). A study conducted in a non-university African American population showed that materialism may be a disorder and might lead to materialistic depression (Azibo, 2013). Materialistic depression can also lead to alcoholism, drug abuse, crime, and any number of social and other mental health problems, and even suicide. Therefore, being too materialistic not only induces one to spend, but the inability to do so can result in despair, thus inciting negative unrest in society. Materialistic dissatisfaction is more pronounced when people compare their current living standards using fantasy-based/ideal expectations (Sirgy et al., 2013). In an era of sales promotions and bargain hunting, consumers are sometimes led into dangerous situations. In extreme cases, such as the Black Friday sales in the USA, the urgency, scarcity and the fear-of-missing-out (FOMO) created by marketing strategies have led to injuries and even deaths due to stampedes (Dawson, 2010). Unfortunately, such incidents are not one-off events. Deaths and injuries due to Black Friday stampedes occur on an annual basis. A grim testament to this is a website called the ‘Black Friday Death Count’ which tracks and records stampederelated deaths and injuries within the USA (Kaplan, 2020). Such tragedies highlight the darker side of consumerism and raise critical questions about the ethical responsibilities of marketers.

3.3.3

Globalisation or Neo-Imperialism

The advent and consequences of globalisation go beyond trade and cash flows, it also leaves behind cultural imprints on countries across the globe. This phenomenon has ignited debates and discussions on the impacts of globalisation on cultural identities, local economies, and societal structures. Globalisation, with its imperialist overtones, has been likened to a top-down, ethnocentric, and technocratic approach that treats peoples and cultures as abstract concepts, i.e. as statistical figures to be moved up and down in the charts of progress. Thus, it is not surprising that

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development has turned into a force that is so harmful to developing nations, despite the irony that it was done in the name of interests of people there (Escobar, 1999). Some critics have expressed deep concern that marketing strategies, particularly from multinational corporations, are used to undermine and erode local cultural values, especially in developing nations where cultural preservation is alreadt a challenge. Indeed, Witkowski (2005) noted, ‘. . .an influx of ideas, values, products, and lifestyles from the rich countries, above all, the increasingly hegemonic United States, unduly influences and ultimately debases developing countries’ cultures.’ Emerging economies and developing countries are particularly susceptible to acculturation effects due to an overall rise in education and income, which causes a predisposition towards Western culture and values (Gupta, 2012). Southeast Asians, like many other groups, are increasingly finding themselves in a struggle between embracing global relevance and maintaining their unique cultures. This tension is escalating as globalisation threatens their local cultures, values, and distinct identities, forcing them to reassess their place in a rapidly changing world. It has been argued that homogenisation resulting from globalisation is causing a decline or loss of local cultures (Ullah & Ming Yit Ho, 2021).

3.3.4

Intellectual Property Monopolies

Another argument raised by anti-globalisation proponents is the issue of intellectual property (IP). While IP rights are beneficial to MNCs located in more developed countries, one concern is that they could monopolise knowledge and resources that are crucial for developing nations (Witkowski, 2005). The seriousness of these issues was especially highlighted during the COVID-19 pandemic, in which vaccine monopolies increased the cost of vaccinations, thus further inhibiting the deployment of much-needed vaccines in poorer countries (Oxfam, 2021). The monopoly of IPs has several consequences, including the uneven geographical distribution of intangibles which may limit developing countries’ economic and social upgrading. Monopolisation may exacerbate trends in high-income economies concerning financialisation and a slowdown of capital investment. It may also result in the capture of value via control over intangibles can exacerbate the erosion of national tax bases, an issue that concerns both high- and low-income developing countries. The consequences of intellectual monopoly are not only harmful to human rights activists; producers are also at a disadvantage as the collection of consumer data plays an additional role in preventing producers from climbing the value chain. Moreover, the uneven distribution of intangibles allows leading firms to reap a disproportionate share of the benefits of output expansion (Durand & Milberg, 2020). Trade and IP negotiators should consider a human rights perspective on IP issues, thereby solidifying their legitimacy and promoting greater integration between human rights and IP. To do so, it is important to develop a human rights framework for IP to facilitate legal provision and protection over human dignity and respect

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(Yu, 2007). While high IP protection standards strengthen the attributes of IP rights that have human rights status, they can also create roadblocks to human rights protection. It is important to strike a balance between protection and enforcement of IP rights and human rights instruments (Yu, 2012). Being able to innovate freely and safely is crucial for a country’s economic development. However, so is the need to insinuate the right type of IP rights and incentives in different countries, thereby allowing a more beneficial dissemination of knowledge and inventions (Kim et al., 2012).

3.3.5

Change in Food Habits

The eating habits of people in developing nations have undergone tremendous changes. The rise in economic prosperity has seen an unfortunate rise in obesity. It has been shown that the presence and density of fast-food restaurants increase the likelihood children’s overweight or obesity at a community level (Kong & Zhou, 2021). Marketing critics have argued that marketers are extremely competent at creating a seemingly limitless range of tasty, fast foods that are widely accessible, affordable, and promoted through aggressive advertising that frequently targets vulnerable people, particularly children and teenagers (Witkowski, 2005). The proliferation of brands has led to a lack of consumer awareness and apathy towards fast-food nutritional values (Pérez-Villarreal et al., 2019). There is a need for more regulations, and possibly location restrictions, on fastfood restaurants (Kong & Zhou, 2018). Marketers cannot fully fall back on the argument that ‘consumers are rational’, as not all consumers (especially in the case of children) possess the necessary information, abilities, and alternatives to make informed decisions. Therefore, marketers should act ethically and assist consumers make better informed decisions and provide them with more healthier alternatives (Witkowski, 2007).

3.3.6

Genetically Modified Products

In addition to fast-food issues, the development of genetically modified (GM) products has raised concerns on the possible undermining of traditional agriculture (Witkowski, 2005). Genetically modified organisms, or GMOs, are organisms that have been genetically engineered with DNA from other organisms. This DNA is typically inserted into the organism using biotechnology techniques, and the resulting organism is then said to be genetically modified. The aim is to add novel features or characteristics that are not present naturally in the organism. For instance, GM crops may be developed to provide greater yields or to higher pest resistance.

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The introduction of GMOs is a contentious issue. It has been argued that GM foods are of greater benefit to developed, rather than developing, countries, which is where most of the food production occurs (Brettingham, 2005). Considering both sides of the arguments regarding GM products and food insecurity, Azadi and Ho (2010) argued that GM technology has the potential to increase food supply due to the resistance of crops to pests and reduced chemical inputs. However, the disadvantages mainly relate to food safety concerns and, consequently, health and environmental impacts. Developing countries also face difficulties in exercising autonomy in setting regulatory standards given their limited financial and human resources (Millstone & van Zwanenberg, 2003). Fear of GM food and the absence of regulatory monitoring leads to an endless cycle, where fear fuels lethargic oversight, which in turn fuels further misinformation and worry (Adenle et al., 2018).

3.3.7

Environment Degradation

Various studies have indicated that the environmental issues we face today are directly or indirectly related to consumers’ purchasing behaviours (Ghazali et al., 2021; Johnstone &Tan, 2015). This includes global warming, the depletion of the ozone layer, soil degradation, and increased desertification; increased air and water pollution; reduction in the availability of freshwater; and increasing depletion of physical and natural resources. Marketing activities and strategies must adapt to the existing environmental concerns and challenges in the future. We discuss these issues in more detail in Chap. 5.

3.3.8

Washing Practices

A number of ‘washing’ practices have been identified where organisations ‘don’t walk the talk’ or in many cases, misrepresent themselves:

3.3.8.1

Greenwashing

Firms have also come under increasing pressure from governments, environmental organisations, social media, and concerned citizens to be more sustainable and greener in their practices (Kotler, 2011). New York environmentalist Jay Westerveld coined the phrase greenwashing in 1986 to criticise the hotel industry’s practise of displaying notices in its rooms urging towel reuse while doing little to nothing to cut energy use or waste (McClimon, 2022). He asserted that the true intention behind these ineffective measures was to boost profits. In other words, rather than adopting a true green approach, some firms use greenwashing practices.

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Greenwashing has been defined differently by various scholars. For instance, according to Senthilnathan et al. (2015), greenwashing is when an organisation presents incomplete information to give itself an environmentally responsible face and mislead consumers. A similar definition was given by Aksoy et al. (2021). According to them, greenwashing involves ‘firms conveying a false impression or providing misleading information about a firm’s products being environmentally sound’. Similarly, according to Sailer et al. (2022), greenwashing refers to firms exploiting the benefits of environmental friendly branding and using ‘exaggerated, deceptive, or unsubstantiated claims of environmental benefits to improve their corporate image’. Greenwashing can be in the form of claims, which involve textual arguments that explicitly or implicitly refer to the ecological benefits of a product or service to create a misleading environmental claim’. It can also be in execution, i.e. to suggest natureevoking elements to induce false perceptions of the brand’s greenness (de Freitas Netto et al., 2020). Based on a study conducted by the environmental firm TerraChoice Environmental Marketing (2009), companies are guilty of greenwashing if they conduct ‘the Seven Sins of Greenwashing’, which are: 1. The Hidden Trade-off: Making environmental claims based on a very ‘narrow set of attributes’ while disregarding other relevant aspects. 2. No Proof: When brands provide no reliable evidence for their environmental claims. 3. Vagueness: When brands use ‘poorly defined or broad’ terminology to imply environmental compatibility, e.g. unregulated buzzwords. 4. Irrelevance: When brands make claims that are not relevant for consumers seeking to make green purchase decisions (e.g. highlighting the absence of a harmful substance that has been already banned by law). 5. The Lesser of Two Evils: Making environmental claims about a product that may be true in comparison to a competing product but disregard the negative environmental impact of the product category. 6. Fibbing: Making factually untrue or misleading claims of environmental benefits. 7. The Worshipping of False Labels: When brands use ‘fake labels’ to imply thirdparty certification. More effort is required to understand how firms can objectively evaluate whether they are practising ‘intentional greenwashing (the “evil greener”), unintentional greenwashing (e.g., from their supply chains), no greenwashing (truthful green marketing), and unadvertised green initiatives (the “green blusher”)’, as well as methods for rectifying any greenwashing behaviour (Szabo & Webster, 2021). Unfortunately, going green seems to be highly challenging as firms have compartmentalised green marketing rather than developing a holistic perspective that embraces all aspects of the company, product, the means of production, consumption, and disposal (Peattie & Crane, 2005). A green marketing strategy is only achievable by combining external objectives with internal competencies, as well as by building a green culture within the organisation itself (Papadas et al., 2019).

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Rather than clinging to a trade-off mentality between stakeholders, organisations should shift towards a mutuality perspective that differently frames the interactions between customers, society, governments, ecosystem services, and partnerships with NGOs (Mohr et al., 2016).

3.3.8.2

Bluewashing

Another term that has recently emerged is ‘bluewashing’. It is similar to greenwashing but is instead applied instead to social issues (Chen & Chang, 2013). According to McClimon, the origin of the term comes from the blue colour of the United Nations flag and was first used to refer to companies who signed the United Nations Global Compact but made no actual policy reforms. In other words, these companies deceived the public into perceiving them as socially responsible without having to enact any real changes or reforms. It also refers to any misleading appeals about the social efforts or impact of a brand, product, or process (Sailer et al., 2022). Another term has emerged—Corporate Social Responsibility (CSR) washing, which involves companies profiting from insincere claims of corporate social responsibility (Pope & Wæraas, 2016). Past appropriation of social movements and CSR activities by companies that use business practices disguised under the CSR banner have led to high levels of scepticism among the public, activists, and academics, who claim that CSR practises are nothing more than false advertising. PepsiCo learned the hard way that campaigns must be exceptionally careful with their 2017 ‘Live for Now’ advert. The short commercial featured celebrity Kendall Jenner joining what seems to be a protest march handing police officers Pepsi and ended with everyone cheering and reconciling. The advertisement was widely criticised and condemned for capitalising on and trivialising the Black Lives Matter movement (Victor, 2017). While intending to show the spirit of reconciliation and understanding between protestors and police officers, the public found it to be tonedeaf and insulting to the reality that black citizens routinely face in the USA. Pepsi finally pulled the ad. While it might be encouraging for brands to advocate social causes, as the example above highlights, they must be especially careful in how they do so. They must work to demonstrate that their goals seek to genuinely enhance societal welfare rather than just to increase commercial buzz.

3.3.8.3

Pinkwashing

‘Pinkwashing’ refers to the activities of companies and groups that position themselves as leaders in the struggle to eradicate breast cancer while engaging in practices that may be contributing to rising rates of the disease (Lubitow & Davis, 2011). Despite organisations that claim to care about breast cancer awareness or to promote its awareness through so-called pink ribbon products, some simultaneously create, sell, and profit from products linked to the disease (Taylor & Knibb, 2019). Even

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worse are the businesses that benefit off pink products that include harmful substances, like carcinogens (Lubitow & Davis, 2011). Because of this, corporations that engage in pinkwashing are viewed as erecting obstacles in the continuing environmental health debate about breast cancer. Critics of pinkwashing argue that it is a manipulative and dishonest marketing tactic that takes advantage of people’s concern about cancer.

3.3.8.4

Ethicswashing

The term refers to the repurposing of ‘ethics’ as a cynical strategy for companies to avoid regulation by governments while continuing to promote their own ethical selfregulation. This occurs predominantly in the tech industry in areas of AI, big data, and information technology, when ethical language creates what is termed ‘an acceptable façade’, which refers to a cover for tech companies to appear as though they are following ethical principles when it comes to doing business. They are, in reality, using it to support industry’s voluntary self-regulation as opposed to government intervention (Zalnieriute, 2012). This issue was highlighted due to the tech industry not honouring its commitments and how easily it dismissed their voluntary ethical codes of conduct (Yeung, Howes, & Pogrebna, 2020). The lack of regulatory and uncertain delegatory authority is still a major issue for both governments and tech companies. More research and debate are needed to identify the legal rules, especially with regards to how information is handled, who should assume the responsibility, and whether more external government intervention and scrutiny is required on issues pertaining to tech and big data.

3.4

Chapter Summary

Marketing has contributed to economic development, rising standards of living and social conditions, and the spread of culture to various parts of the world. The various marketing functions transform resources into goods and services that meet a wide range of consumer needs. Unfortunately, it also comes with its own slew of intended or unintended negative repercussions. Key criticisms related to unfair practices and social exclusion, materialism, globalisation, and environmentalism still abound in marketing. To solve these issues, firms must shoulder their responsibilities, and critically and normatively evaluate their marketing activities to inform debates and decisions on marketing practices.

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Hidayat, D., & Hidayat, Z. (2020). Anime as japanese intercultural communication: A study of the weeaboo community of indonesian generation Z and Y. Romanian Journal of Communication and Public Relations, 22(3), 85–103. Inoguchi, T., Newman, E., & Keane, J. (Eds.). (1999). The changing nature of democracy. United Nations University Press. Jain, D. E., & Yadav, A. (2017). Marketing and technology: Role of technology in modern marketing. IOSR Journal of Business and Management, 19(05), 49–53. Jin, D. Y., & Yoon, T. J. (2017). The Korean wave: Retrospect and prospect: Introduction. International Journal of Communication, 11, 2241–2249. Johnson, J., & Tellis, G. J. (2008). Drivers of success for market entry into China and India. Journal of Marketing, 72(3), 1–13. Johnstone, M. L., & Tan, L. P. (2015). Exploring the gap between consumers’ Green rhetoric and purchasing behaviour. Journal of Business Ethics, 132(2), 311–328. Joshi, S. G., & Bratteteig, T. (2016). Designing for prolonged mastery. On involving old people in participatory design. Scandinavian Journal of Information Systems, 28(1), 3–36. Kaplan, M. (2020, November). Black Friday’s most gruesome injuries and deaths through the years. New York Post, Available at: https://nypost.com/article/black-fridays-most-gruesome-injuriesand-deaths-through-the-years/ Karnani, A. (2017). Marketing and poverty alleviation: The perspective of the poor. Markets, Globalization & Development Review, 2(1) https://doi.org/10.23860/mgdr-2017-02-01-05 Kilbourne, W. E., Dorsch, M. J., & Thyroff, A. (2018). Theorizing materialism through the institutional analysis and development framework. Marketing Theory, 18(1), 55–74. Kim, Y. K., Lee, K., Park, W. G., & Choo, K. (2012). Appropriate intellectual property protection and economic growth in countries at different levels of development. Research Policy, 41(2), 358–375. Kindra, G. S., Strizzi, N., & Mansor, N. (1998). The role of marketing in FDI generation: evidence from ASEAN countries. International Business Review, 7(4), 399–421. King, D. L., Delfabbro, P. H., Gainsbury, S. M., Dreier, M., Greer, N., & Billieux, J. (2019). Unfair play? Video games as exploitative monetized services: An examination of game patents from a consumer protection perspective. Computers in Human Behavior, 101(July), 131–143. Kinsey, J. (1982). The role of marketing in economic development. European Journal of Marketing, 16(6), 64–77. Kirby, J. (2012). Viral marketing. In J. Kirby & P. Marsden (Eds.), Connected marketing (pp. 123–142). Routledge. Klein, T. A., & Nason, R. W. (2001). Marketing and development: Macromarketing perspectives. Handbook of Marketing and Society, 263–297. Kong, N., & Zhou, W. (2018). The massive expansion of Western fast-food restaurants and Children’s weight in China. SSRN. https://doi.org/10.2139/ssrn.3131308 Kong, N., & Zhou, W. (2021). The curse of modernization? Western fast food and Chinese children’s weight. Health Economics, 30(10), 2345–2366. Kornai, J. (2000). What the change of system from socialism to capitalism does and does not mean. The Journal of Economic Perspectives, 14(1), 27–42. Kotler, P. (2011). Reinventing marketing to manage the environmental imperative. Journal of Marketing, 75(4), 132–135. Kotler, P., & Zaltman, G. (1971). Social marketing: An approach to planned social change. Journal of Marketing, 35(3), 3–12. Kramer, M. (2001). Who, exactly, are the “customers” of a nonprofit organization? The Chronicle of Philanthropy, May, 31, 42. Krasnova, G. (2018). The main trends of higher education exports in the world. SSRN Electronic Journal, 325187753(August). https://doi.org/10.2139/ssrn.3167754 Laczniak, G. (2017). The hidden costs of hidden costs. Journal of Macromarketing, 37(3), 324–327.

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Chapter 4

Ethical Marketing

4.1

The Body Shop: The Ethical Company

In 1976, Dame Anita Roddick opened The Body Shop in Brighton, England. Its founding philosophy was simple—to sell products that are natural, free of animal cruelty and tests, and with ethical ingredients sourced directly from producers. Its business philosophy—which focuses on environmentalism, ethical production processes, corporate philanthropism, and sustainable outcomes—resonated with consumers across the world. It currently employs over 10,000 employees worldwide and earns billions of dollars each year. In 2016, it announced its ambition to become ‘the most ethical and truly sustainable global business’ by ensuring that all its operations, customers, and proceeds positively contribute to the environment in some manner (King, 2021). Since then, The Body Shop has doubled down on its activities to ensure it is not merely greenwashing but is an ethical company in every sense of the word. These activities include ensuring that its producers do not use child labour in Asia, advocating against animal cruelty practices in Europe, and contributing to front-line workers during the COVID-19 pandemic in the Philippines.

4.2

Introduction

Concern for ethical issues in marketing and organisations has dramatically increased over the last 20 years. Both academics and practitioners have shown an intense interest in understanding the implications of ethical issues for marketing practices. Inquiries into marketing activities are important due to their formidable influence on the ethical and social values of society. Although educational, religious, and governmental institutions have a significant influence on shaping a country’s values, only marketing commands the tremendous resources that are used to convey a single message: ‘consume’ (Kangun, 1972, xiv). As discussed in earlier chapters, © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 D. S. Mutum, E. M. Ghazali, Consumers, Society and Marketing, CSR, Sustainability, Ethics & Governance, https://doi.org/10.1007/978-3-031-39359-4_4

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marketing’s impacts go beyond profit; it also has environmental, economic, and social repercussions. Therefore, it is important to understand, define, promote, and practice ethical marketing practices to ensure societal and environmental well-being. Previously, firms and businesses could adopt a single-minded pursuit of profits while having little-to-no regard for the impacts of their activities. However, the alarming growth of environmental issues and social concerns, as well as the empowerment of consumers and organisations, has meant that this disregard no longer has a place in business operations (Donoghue & De Klerk, 2009; Deighton et al., 2021). Consequently, business practices have changed to suit a more ‘ethical’ narrative which not only measures their impact but also seek to address the needs of the wider community and environment (Kotler, 2011). These changes stem from how businesses and individuals perceive ethics, identify the ethical issues from a business or marketing perspective, methods of addressing said issues, and the responses of consumers’ own ethical values. An organisation’s marketing philosophy should reflect a certain ethical standard, which should then be reflected in its operations, activities, and ability to make more socially responsible judgements (Laczniak & Murphy, 2012). In the following section, we briefly explore how ethics came to be as well as its role in marketing.

4.3

Ethics: Terminology, Definitions, and Concepts

The term ‘ethics’ is derived from the Greek words ēthikós and êthos, which refer to character and morality. The term morality meanwhile comes from the Latin word moralis, which means well-mannered, good character, and proper behaviour (Bietti, 2020). Therefore, ethics and morality refer to the study of character (i.e. what makes it good or bad), appropriate behaviour, and virtue. While these terms may seem rather synonymous, there are slight differences between them. Ethics was earlier viewed as referring to the virtuous behaviour of individuals and is more personal in nature. Morality, meanwhile, signifies proper decorum and respect in pursuit of social harmony. Currently, the terms ‘ethics’ and ‘morals’ are frequently used interchangeably by most scholars (Caner & Banu, 2014). The following section explores how ethics has been defined differently by various scholars in a more modern context. The term ethics holds different meanings to different people and groups. According to some scholars, ethics go beyond the law in that it concerns issues which may be legal, yet nevertheless are unethical. De George (1982, pp. 13–15) defined ethics as the study of morality. Similarly, Taylor (1974, p. 5) argued that it involves the study of the nature and grounds of morality, which itself refers to judgement standards and rules of conduct. Other authors have described ethical behaviour simply as the ‘just’ or ‘right’ standards of behaviour (Beauchamp & Bowie, 1983). Ethics is also considered the ‘science of conduct’, which includes laying several fundamental principles and rules on how one ought to live (Krishnamurthy, 2011).

4.3

Ethics: Terminology, Definitions, and Concepts

73

The basic premise of ethical principles and values is that they should follow the law of the land. Thus, Beauchamp and Bowie (1983, p. 3) defined ethics as the ‘inquiry into theories of what is good and evil, and into what is right and wrong, and thus an investigation into what we ought to do and what we ought not to’. While ethics can be simplified as the study of what is right and wrong, agreeing on what falls under these two categories is far from straightforward. Ethical and legal practices are also highly debatable, as certain practices which are technically legal may be unethical, and thus the subject of much debate. For example, the common claim that hand sanitisers kill 99.9% of bacteria, is a common advertising gimmick used to attract customers. However, these results are only under specific lab conditions. Real-life scenarios show that the real percentage usually hovers around 40–60% (Bialik, 2009). However, marketers can continue to advertise their products based on lab results due to the legally grey area of product efficacy. While the law can serve as a basic guideline, businesses should not merely content themselves with achieving the minimum legal standards, but instead strive for more. Laws constitute the baseline expectations of society codified in the form of rules and regulations, which are the least common denominator of expected behaviour for marketing and business practice (Westing, 1967). However, ethical marketers are expected to achieve a behavioural standard exceeding their legal obligations (Laczniak & Murphy, 2006). Ethical behaviour and standards will undoubtedly continue to evolve across different cultures, times, and industries. In the past, an ethical company was one that adopted the agency theory approach and had the maximisation of investors’ returns as its sole responsibility. Therefore, additional ethical responsibilities and actions were viewed negatively as extra business costs or subversive business doctrines (Friedman, 1962). However, this concept is now considered relatively obsolete and challenged by the stakeholder theory concept, which states that firms have obligations to other parties, asides from their own contractual obligations, and ‘can supersede the immediate objectives of investors and/or stockholders’ (Laczniak & Murphy, 2006). Firms now have extra responsibilities that are not always financial in nature. They are required to be more socially responsible, as well as to address social, environmental, or civil needs that might not strictly fall within their business scope (Laczniak & Shultz, 2021). Organisational and global cultures also play key roles in shaping ethical decisions. As morality and values are highly fluid, blindly imposing certain ethical standards on different cultures might result in unwanted negative outcomes (Javalgi & Russell, 2018). Businesses cannot simply assume ethical behaviours to be uniform across countries. In fact, a key challenge to MNCs and conducting business overseas is to bridge the cultural and ethical gap between home and host countries and reach a common understanding of what is or is not ethical. As different countries have their own cultural nuances and ideas on what determines ethical behaviour, one must always consider foreign values and beliefs. While certain ethical standards and behaviour are prevalent, the attitudes and reasons on why the ethical behaviour is being actioned upon will differ accordingly (Chan & Chau, 2021).

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One of the main criticisms of ethical relativity is that the wrong code of conduct is frequently justified as a form of ‘moral sanctuary’ because it comes under a unique set of codes or moral standards espoused by the social group or institution in which they operate (Konrad, 1982). While it is nearly, or perhaps absolutely, impossible for there to be a code of ethics that addresses and satisfies everyone’s ethical standards equally, there is still a need for an ethical baseline which most can adhere to—which is where conventional standards become relevant. Conventional standards can be understood as the concern shown towards justice or moral rights, as well as the generally accepted standards or norms by businesses, industries, professions, the judiciary system, or society which are necessary for the proper functioning of a business (Schwartz & Carroll, 2003). Conventional standards depend upon a society’s ethical norms, which include the concerns of the company’s stakeholders (shareholders, employees, consumers, suppliers etc.). To overcome the many moral differences and understandings, a company’s adherence to a conventional standard is judged by how closely it follows formal ethical codes of conduct. While the conventional standard can be understood as a minimal standard required of businesses, it can be criticised if it is the only standard of reference. The next section focuses on ethics’ applicability in marketing.

4.4

Perceptions Towards Marketing from an Ethical Perspective

Most literary sources have highlighted the fact that marketing activities are viewed in a negative and unethical light. Marketing as a discipline and more specifically, marketing managers, are being increasingly scrutinised and criticised by society. They are being accused of making false claims about products, manufacturing inferior products, charging consumers more than what a product is worth, using deceptive advertising practices and irresponsible sales techniques (Hisrich & Peters, 2002). Similarly, Jamnik (2011) mentioned that marketing has been charged with engaging in practices that involve dishonesty, manipulation, invasion of privacy, creating unsafe products, as well as the exploitation of children and vulnerable consumers across several marketing areas. Marketing’s image is further damaged by media reports on illegal and questionable marketing conduct. The criticality of ethics in marketing is heightened by marketing activities’ persuasive nature, as well as its litany of issues. Malliaris (2001) and Vassilikopoulou et al. (2008) outlined the following common criticisms of marketing: 1. 2. 3. 4. 5.

Marketing encourages materialism, hedonism, and eudemonism. Marketing stresses consumers to acquire goods. Marketing pollutes the natural environment. Marketing exhausts natural resources. Marketing increases the product’s final price due to the high production cost, which must be paid for by the consumer.

4.5

Definitions of Ethical Marketing

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6. Marketing deceives consumers by projecting imaginary or zero-quality differences onto the products. 7. Marketing lures consumers into buying products that they might not actually need. 8. Frequent advertising is bad and offensive to many people. 9. The involvement of too many intercessors during product distribution raises product prices. 10. Personal sales are too pushy and oppressive as they force consumers to purchase under pressure. Fortunately, an increasing amount of effort is being directed towards advancing the field of ethics in marketing (Durif et al., 2009). It is critical for there to be continual discussions on marketing issues, its ethical implications, the ethics of marketing, as well as how any ethical deficiencies can be addressed. The idea of ethical marketing is simply the extension of marketing knowledge, techniques, and concepts into influencing the acceptability of ethical ideas and causes, rather than just economic goods and services. Two broad domains can be found within the existing marketing literature. First, ethics are introduced and considered during, and because of, marketing decision-making processes. Second, marketing ethics are evaluated as part of product and service augmentation. As globalisation continues to change the nature of businesses, marketing ethics must account for cross-cultural practices and concerns to address the ‘ethics gap’ of what society expects and marketers deliver (Javalgi & Russell, 2018). Given the wide scope of marketing and its close interrelation with our daily lives, the risks of unethical marketing conduct with socio-economic costs can no longer be ignored (Wade, 2020). Moreover, given the increasing advancement of technology, and the sudden challenges posed by the COVID-19 pandemic, social unrests, and international conflicts, ethical issues are being thrust into the spotlight more than ever before. Marketing ethics must continue to evolve and change in line with the needs of society. Likewise, ethical standards should also be continually re-evaluated to be more anticipatory of future challenges and trends. There is an ongoing need to address the ethical issues that might arise from marketing, to properly define what it means to be an ethical marketeer, and to systematically outline the marketing and ethical standards within organisations.

4.5

Definitions of Ethical Marketing

Ethical marketing has been defined as ‘an inquiry into the nature and grounds of moral judgments, standards, and rules of conduct relating to marketing decisions and marketing situations’ (Hunt & Vitell, 1986, p. 4). Subsequent definitions of ethical marketing have helped shift the concept into more practical and applicable domains and activities. This shift can be seen in Laczniak & Murphy (1994) definition of marketing ethics as the systematic study of how moral standards are applied to

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marketing decisions, behaviours, and institutions. Ethical marketing behaviour should apply to everyone in any organisation and be constantly reflected in all decision-making processes, from the lowest-level intern to the CEO (Murphy, 2017). Marketing ethics is constantly expanding to be more inclusive, which also reflects its increasing importance as a topic of discussion. This change can also be observed in how its definitions have changed from a literary perspective. Previously, Smith & Murphy (2012) defined marketing ethics as ‘the judgment of marketing activities as morally right and wrong’. However, marketing ethics’ importance is now a compass that guides the behaviour of businesses, consumers, and other stakeholders. This can be seen in their revised definition of marketing ethics: ‘practices that emphasize transparent, trustworthy, and responsible marketing policies and activities that embodies all the stakeholders’ (Murphy, 2017). Marketing ethics continued to evolve to include a more value-ethic approach and be more stakeholder-centric in nature. From a normative perspective, ethical marketing means focusing on transparent, trustworthy, and responsible personal and organisational marketing policies, as well as activities that indicate both integrity and fairness to consumers and other stakeholders (Murphy et al., 2005). Therefore, marketing ethics not only focuses on the standards and principles of acceptable conduct, but it also includes legal, regulatory, and marketing issues that build longterm marketing relationships (Caner & Banu, 2014). Ethical firms, therefore, are those that ‘choose appropriate marketing conduct and consumption decisions considering the trade-offs between guiding and ideal end-state values—throughout the creation, communication, delivery, and exchange of products and services that their customers, organization, stakeholder, and society at large all value’ (Mahr et al., 2020). As consumers and societies are being increasingly empowered, firms are under more scrutiny than ever to do the right thing and do things right. Not only must firms be transparent and fair in their dealings, but they must also account for the cultural complexities in their areas of operation. Therefore, ethical marketing can also be defined as ‘an honest and factual representation of a product, delivered in a framework of cultural and social values for the consumer’ (Sharma, 2013). A simplified and broad definition of marketing ethics can be the ‘moral standards for marketing practices, behaviour, and institutions that give guidance regarding what to do and what the ideal should look like for both individuals and groups’ (Pittz et al., 2020). Similarly, according to the American Marketing Association (2021), marketing ethics ‘refers to the process of applying morality principles to the execution of marketing campaigns and services. Advertising and promotion are a few of the most relevant applied marketing ethics areas and they often overlap with media ethics—which differ from that of marketing. Marketing ethics is also known as a process of generating consumer intrigue and relationships as well as stakeholder values. Laczniak & Murphy (2006) provided the following four starting questions for managers to reflect upon:

4.5

Definitions of Ethical Marketing

77

1. What general dimensions do managers and academics need to consider when challenged with issues regarding the results of their particular marketing practices for society? 2. How can marketing managers begin to assess whether their products are sold, priced, distributed, and promoted in ways that are morally right and fair? 3. What are the fundamental predispositions necessary for rendering judgements about whether various marketing practices, policies, and strategies are ethical or unethical? 4. What do marketing organisations aspiring to operate at the highest ethical level need to address? From a marketing mix perspective, ethical issues related to promotion, product, and place are significant to consumers (Lee & Jin, 2019). Several studies have shown that constantly improving and reinforcing ethical behaviour and standards are essential for profitability, survivability, and success (Treviño et al., 2006; Mayer et al., 2010). To both meet and strive towards higher ethical standards, it is time for a ‘socially responsible’ or ‘quality of life’ marketing orientation to be widely adopted and implemented.

4.5.1

Socially Responsible Marketing

Socially Responsible Marketing (SRM) has been defined by Laczniak & Shultz (2021) as the practices and perspectives mandated by an implicit social contract, which requires marketing policies, actions, and outcomes to adhere to a corporate ‘good’ citizenship that is proactive and non-discretionary. It is informed by a stakeholder orientation that recognises an authentic consideration of stakeholder claims, especially those of the customer/consumer and vulnerable stakeholders. Furthermore, SRM seeks social and environmental sustainability in all its actions. The manifestation of SRM should be evaluated by a normative ethic of distributive justice and coordinated with a macro-marketing disposition for constructive engagement when addressing the marketing/society interface. Firms cannot shy away from their social responsibility. Indeed, aside from profit maximisation, Corporate Social Responsibility (CSR) is now a key objective and responsibility (Lee, 2008). Companies must be financially, socially, and environmentally sustainable, and are encouraged to develop a proactive stance towards society and take custody of natural resources (Galvão et al., 2019). To better resonate with their customers, firms can adopt a choice-of-cause approach in their causerelated marketing programmes. The ability to empower and involve consumers in their CSR processes gives consumers greater autonomy- and competence-need satisfaction by providing them with a sense that they can co-create societal values with companies (Tao & Ji, 2020).

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4.5.2

Ethical Marketing

Quality-of-Life Marketing

In addition to adopting SRM practices, firms can also employ a quality-of-life (QOL) approach. QOL marketing has been defined as a marketing practice designed to enhance the well-being of customers while preserving the well-being of the firm’s other stakeholders (D. Lee & Sirgy, 2004). A QOL approach looks beyond competition and profit but includes as many stakeholders as possible in its marketing practices, with the aim of providing all parties with a better quality of life (Sirgy, 2021). A QOL approach to marketing emphasises the following points (Sirgy & Lee, 1996): (i) Enhancement of target consumers’ well-being (in terms of the marketing and/or consumption of products). (ii) Reduction of negative side effects associated with the marketing and/or consumption of products to target consumers. (iii) Reduction of negative side effects associated with the marketing and/or consumption of the product to other publics (besides target consumers). (iv) Long-term profitability.

4.6

Ethical Codes in Marketing and Businesses

Ethical marketing codes are important not only because they give customers peace of mind, but, perhaps more crucially, they ensure that businesses conduct their affairs with integrity. Asides from being fiscally successful, reliability is also a key issue. Being able to establish and adhere to ethical business codes is a key component of both corporate success and image, even for companies in controversial sectors (Sroka & Szántó, 2018). Several key organisations and agencies have established their own marketing and ethical codes, which may serve as a general reference point for other businesses. Ethical codes range from the most general (e.g. the American Marketing Association’s Code of Conduct) to ethical codes governing specific marketing methods (e.g. the Direct Marketing Code of Practice) to ethical codes tailored for organisations and businesses (e.g. Google’s code of ethics). While ethical marketing codes and standards developed by marketing groups and organisations are usually voluntary, some are mandatory for its members, such as the Canadian Marketing Code of Ethics & Standards developed by the Canadian Marketing Association (Canadian Marketing Association, 2008). Most ethical codes follow a similar structure as given below: 1. 2. 3. 4.

Key definitions of values and terminologies. Expected or encouraged behaviours and member expectations. Applicability and to-do or not-to-do actions. Enforcement methods and reporting procedures.

4.7

American Marketing Association: Code of Conduct

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These structures differ depending on the intended nature of the code (generalisability versus industry/company-specific ethics) as well as the organisation to which the organisation belongs. In this section, we examine several ethical marketing codes developed by various organisations and discuss their commonalities and applicability.

4.7

American Marketing Association: Code of Conduct

The American Marketing Association (AMA) is an international association of marketing managers and scholars that was founded in 1937 by the merging of the National Association of Marketing Teachers and the American Marketing Society (Cochoy, 2014). It developed a code of ethics that calls on marketers to adopt several ethical norms and values. These are intended to serve as a more general guideline and, as such, are not specific to any particular sector or marketing sub-disciplines. According to the American Marketing Association (2021), norms are defined as ‘established standards of conduct that are expected and maintained by society and/or professional organizations’, whereas values are ‘the collective conception of what communities find desirable, important, and morally proper . . . for evaluating our own personal actions and the actions of others’. Its norms include: (i) Do no harm. Consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations when making decisions. (ii) Foster trust in the marketing system. Striving for good faith and fair dealing to contribute to the efficacy of the exchange process, as well as avoiding deception in product design, pricing, communication, and delivery or distribution. (iii) Embrace ethical values. Building relationships and enhancing consumer confidence in the integrity of marketing by affirming such core values as honesty, responsibility, fairness, respect, transparency, and citizenship. On the other hand, the ethical values include: (i) Honesty. To be forthright in dealings with customers and stakeholders; to be truthful in all communications and times, as well as to honour commitments and promises. (ii) Responsibility. Accept the consequences of marketing decisions and strategies. This includes taking care of customers’ needs, embracing social responsibilities, empowering marginalised and vulnerable market segments and consumers, and being ecologically conscious. (iii) Fairness. To justly balance the needs of the buyer with the interests of the seller. This entails establishing open lines of communication that can be trusted, as well as guarding against conflicts of interest and data breaches.

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(iv) Respect. To acknowledge the basic human dignity of all stakeholders. This includes valuing individual differences and customer needs, treating everyone respectfully, and acknowledging their contributions. (v) Transparency. To create a spirit of openness in marketing operations. This includes creating two-way communication channels and being transparent in all business dealings. (vi) Citizenship. To fulfil the economic, legal, philanthropic, and societal responsibilities that serve stakeholders. This includes encouraging sustainable efforts, contributing to society, and developing proper trading practices. As the AMA’s organisational nature is focused on deepening the knowledge of the field of marketing, its code of ethics is more advisory in nature. The values and norms listed are ultimately meant to diffuse and encourage ethical behaviour among marketeers, as well as to improve the overall state of marketing. Its values and ethical codes are also generalisable to most industries, meaning that it can serve as a useful guide for how various businesses can structure their codes of ethics and values to fit their needs most suitably. However, as the AMA is more academic compared to other marketing organisations, it has less power to police unethical practices within the business world—unless its members blatantly disregard its rules and regulations. Even in such a case, the punishment meted (if any) is only enforceable to a lesser degree. Organisations comprised professional corporate members are much more effective in setting industry standards and enforcing ethical behaviour among its members.

4.8

The Canadian Marketing Association: Canadian Marketing Code of Ethics and Standards

The Canadian Marketing Association (CMA) was founded in 1967 (Canadian Marketing Association, 2008). It is a national, non-profit, community-based association that represents various Canadian sectors and marketing disciplines and is the only association to encompass virtually all of Canada’s major business sectors. Accordingly, it represents the integration and convergence of all marketing disciplines, channels, and technologies. The CMA works closely with businesses, government agencies, regulatory bodies, and other non-profit organisations. The CMA also provides several public offerings, including a ‘Do Not Contact’ service and a customer complaint resolution programme. Therefore, it is more rigorous in the enforcement of its ethical codes and the adherence to its standards. Its code of ethics is the ‘Canadian Marketing Code of Ethics & Standards’ (formerly known as the ‘CMA Code of Ethics and Standards of Practice’) and is used as an effective selfregulatory benchmark for CMA members. Compared to the AMA’s code of ethics, the CMA’s code is much more detailed in its applicability and standards. It shares certain commonalities with the AMA’s code of ethics, such as having provisions on ethical principles (e.g. personal information

4.9

Other Ethical Marketing Codes

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practices, truthfulness, campaign limitations, and professionalism). The main difference is that the CMA’s codes of best marketing practices are much more tailored for professional marketing practices, such as standards for disclaimers, support for claims, and testimonials. Additionally, it also includes provisions on personal privacy protection, special considerations for children and teenagers, media-specific standards, and environmental citizenship. Not all its clauses are mandatory. Indeed, the CMA’s code differentiates its clauses between those that are compulsory (‘must’) and strongly encouraged (‘should’). Nevertheless, CMA members must adhere to the ethical codes and standards lest their membership be revoked upon public expulsion. The CMA and AMA’s codes of ethics, therefore, differ due to their generalisability, enforcement, and intended purposes. The former’s code of ethics clearly distinguishes between good and bad ethical practices and addresses its members’ obligations to other market segments and stakeholder groups. Unlike the more advisory and general AMA’s codes of ethics, the CMA’s is far more detailed in that it not only codifies ethical behaviour but also serves as a solid foundation on which ethical laws and statutes can be built. This is not to say that the AMA’s code of ethics is inferior to the CMA, as both serve different purposes and have different organisation natures (academic versus industry). The simpler nature of the AMA’s code of ethics allows other organisations to identify areas of improvement within their organisations based on the ethical principles listed. On the other hand, as the CMA’s code of ethics are more stringent, membership may be more tedious, but it also carries more weight and trustworthiness in terms of public opinion. Nevertheless, the Canadian Marketing Code of Ethics & Standards is not a legal code; it is inapplicable to non-members, and all parties to it are still subject to official laws and regulations.

4.9

Other Ethical Marketing Codes

There are many other marketing codes of ethics and practices which serve different purposes. Unlike the two listed above, these marketing codes may be created for specific marketing sub-disciplines (e.g. direct marketing) or to serve as guidelines for compliance with certain laws and regulations. Marketing codes also help ensure due diligence and compliance with legal rules without the imposition of new regulations. These codes may not apply to all marketers, but only to those who practise certain marketing sub-disciplines, as well as to the marketing processes involved in their operations.

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The United Kingdom’s Information Commissioner’s Office (ICO): Direct Marketing Code of Practice (ICO, 2020)

The Direct Marketing Code of Practice of the UK’s ICO is a statutory code of practice prepared under Sect. 122 of the 2018 Data Protection Act. It is non-legally binding as compliance can still be demonstrated using other methods. Its aims are to provide practical guidance and promote good practice for direct marketing in compliance with data protection and e-privacy rules. It applies to almost everyone conducting, or intending to conduct, marketing by processing data, as well as individuals or organisations processing personal data on EU citizens for the purposes of direct marketing—all of whom are protected by the General Data Protection Regulation (GDPR) of 2016 and the 2003 Privacy and Electronic Communications Regulations.

4.9.2

Association for Data-Driven Marketing & Advertising: Direct Marketing Code of Practice (ADMA, 2015)

The Association for Data-Driven Marketing & Advertising (ADMA) is the largest marketing and advertising association in Australia and the principal industry body for data-driven marketing and advertising. It consists of over 350 corporate members, including various companies, energy providers, airlines, charities, statutory bodies, and specialists. They aim to establish best practice standards for handling personal information, increasing community trust, enhancing self-regulatory standards, and promoting regulatory compliance. Its code aims to provide best practices in compliance with the laws established by the Australian Communications & Media Authority (ACMA), Australian Competition & Consumer Commission (ACCC), Australian Securities & Investments Commission (ASIC), and the Office of the Australian Information Commissioner. The code was also established to comply with several Commonwealth legislations, including the Australian Securities and Investments Commission Act 2001, Broadcasting Services Act 1992, Competition & Consumer Act 2010, Privacy Act 1988, Spam Act 2003, Do Not Call Register Act 2006, Telemarketing and Research Calls Industry Standard 2007, Telecommunications Act 1997, and Telecommunications (Interception and Access) Amendment (Data Retention) Act 2015. These codes are much more stringent, detailed, and specific to marketing-oriented data collection and use. Unlike the AMA and CMA’s ethical codes, the ICO and ADMA’s codes are structured based on the regulatory framework and needs of the countries/regions the organisation has jurisdiction in. Therefore, adherence to their codes most likely ensures legal compliance. While the AMA and CMA’s codes are wider in scope and aim to address various issues across multiple disciplines, the ICO

4.10

Corporate and Business Ethical Codes

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and ADMA’s codes are more specific and narrower but contain far more detailed information on the dos and don’ts of marketing. These ethical codes were established due to technological changes and innovation within the field of marketing and advertising. They reflect the constant need to revise and discuss ethical codes to ensure that they are on par with current technological levels, as changes in technology also give rise to various ethical topics which need to be addressed (Bietti, 2020; Ferrell & Ferrell, 2021). Data storage, privacy concerns, and data generations, among others, are new concerns in marketing that require further ethical discussions (Loi et al., 2019).

4.10

Corporate and Business Ethical Codes

Most large companies and businesses also have their own unique ethical codes to address their individual concerns. These ethical codes serve as moral and ethical guides on how to conduct business, as well as the most suitable manners to address any ethical, legal, or compliance risk areas to guarantee that employees are not misguided in their daily decision-making (Babri et al., 2021). These ethical codes are usually formalised in a written manner and distributed throughout an organisation to address the various moral needs and complications that might occur on multiple business levels. Corporate ethical codes are not limited to how a company conducts businesses internally, but also how it interacts and addresses the needs of external stakeholders. Corporate ethical or business codes have been defined as a distinct and formal document containing a set of prescriptions developed by and for a company to guide present and future behaviour on multiple issues of at least its managers and employees towards one another, the company, external stakeholders, and/or society in general (Kaptein & Schwartz, 2008). Similarly, Babri et al. (2021) defined corporate codes of ethics as the written and formal documents intended to increase moral resistance in the organisation and to guide corporate, employee, and other stakeholders’ behaviour. Most companies have a general, overarching code of conduct which serves as a foundational moral guideline, followed by detailed codes addressing various specific workplace and at-risk scenarios. These ethical codes are typically developed and enforced by internal compliance and ethics officers in reference to the legal requirements and associations of which the company forms a part. Some companies also make their ethical codes mandatory for certain external parties, such as independent agents and contractors. Some companies also develop programmes to teach managers about important ethical issues and help them find the proper responses. They hold ethics workshops and seminars and create ethics committees. Some examples of corporate codes of conduct or ethics include Google’s and Pepsi’s as given below:

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Google: Don’t Be Evil (Alphabet Investor Relations, 2022)

The detailed code’s core message is simple, Google employees (known internally as ‘Googlers’) must earn users’ faith and trust by holding themselves to the highest possible standards of ethical business conduct. Google’s code of conduct serves as a more advisory and general ethical guideline and was intentionally made to be as easy to understand as possible. While its code is meant specifically for Googlers and board members, extended workforce members (interns, vendors, independent contractors) and other parties working for Google are also required to follow the code within the performance of their work. Google’s code of conduct includes the following key values: • Serve Our Users. Holding on to the principles of integrity, usefulness, privacy, security, freedom of expression, responsiveness, and taking action. • Support and Respect Each Other. To prohibit and respond to harassment, discrimination, misconduct, abusive conduct, and retaliation. Also creating a supportive and healthy work environment. • Avoid Conflicts of Interest. Prevent engaging in business situations that might create conflicts of interest and escalation, such as: personal investments; outside employment, advisory roles, board seats, and starting one’s own businesses; business opportunities found through work; inventions; friends, relatives, and co-worker relationships. • Preserve Confidentiality. Relates to the proper handling of confidential Google material, safeguarding information under non-disclosure agreements, and protecting trade secrets and IP. • Protect Google’s Assets. To conserve the company’s resources and important information, including IP, equipment, network facilities, and physical security. • Ensure Financial Integrity and Responsibility. Making sure that money is appropriately spent, and that financial records are complete and accurate in compliance with internal or external controls. • Obey the Law. This relates to complying with laws and regulations and ensuring that all employees understand key legal issues affecting their fields of expertise. While not exhaustive of Google’s entire ethical guidelines, this code is intended to serve as a foundational code for its employees and stakeholders. The company also outlines specific codes and policies which address various issues, such as its Non-Government Related Gifts and Client Entertainment Policy, Anti-Bribery and Government Ethics Policy, and Records Retention Policy. Nevertheless, employees are still expected to have a certain amount of self-regulation with reference to Google’s code of conduct.

4.10

Corporate and Business Ethical Codes

4.10.2

85

PepsiCo: Act with Integrity (PepsiCo, 2021)

PepsiCo’s mission seeks to ‘Create More Smiles with Every Sip and Every Bite. Every action we take and decision we make must be in service to this ambition as we strive to achieve our vision To Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose’. To achieve this aim, PepsiCo abides by the following seven behaviours, known as ‘the PepsiCo Way’. This includes: 1. 2. 3. 4. 5. 6. 7.

Acting with integrity Voicing opinions fearlessly Act as owners Focusing and getting things done quickly Raising the bar on talent and diversity Celebrate success Be consumer centric These in turn are based on PepsiCo’s ethical principles, which are:

1. 2. 3. 4. 5.

Respect in the workplace Trust in the marketplace Fairness in business relationships Honesty in business conduct Purpose in the world

Regarding its marketing practices, PepsiCo clearly outlines the necessary responsible principles, such as not overstating or misrepresenting its product qualities, as well as refraining from using misleading statements and claims. Unlike Google’s code, PepsiCo’s is much more stringent, and contains more detailed reporting procedures and ethical requirements. While Google’s code is more advisory towards external parties, PepsiCo’s ethical codes are mandatory for its suppliers. Due to the nature of PepsiCo as a food and beverage (F&B) company, its ethical code also addresses PepsiCo’s stance on sustainability and environmental issues, fair trade practices, safe food practices, and so on. In short, different companies follow different approaches to their codes of conduct and ethical guidelines. There is no one-size-fits-all approach to corporate ethical codes. These differences may stem from the business nature of the organisation in question, their corporate culture, the country it resides in, and its proactiveness in enforcing adherence to its code. However, simply having a code of conduct does not automatically mean that a company is ethical; individuals and members of the organisation must constantly self-regulate to ensure that they abide by its ethical principles (Babri et al., 2021). Corporate codes of ethics are not always perfect in confronting ethical issues. Indeed, the following shortcomings have been identified. First, an over-focus on ethical compliance as opposed to worker’s rights. Second, enforcement tensions in international settings, and finally, the potential to lead to negative outcomes. Therefore, for an ethical code to be effective and useful, companies must consider not only

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legal and business risks, but also the cultural settings and approaches to creating ethical codes. A top-down approach may well be insufficient for formulating an effective ethical code. Indeed, a company’s employees and stakeholders should also be able to influence its creation, and voice their thoughts and concerns (Stevens, 1994; Babri et al., 2021). Cultural nuances and social norms should also be considered in ethical codes, as practices deemed acceptable in certain cultures may be considered unethical according to a company’s ethical code, thus requiring more explanation and communication on the company’s part to its employees and stakeholders (Chen et al., 2018). Strong ethical values also aid in compliance with formal corporate governance codes, effective synergy (when properly included in the overall organisational values), and robust compliance practices (Fotaki et al., 2020).

4.11

The Application of Ethics in Marketing

Ethics in marketing should not be considered a limitation; rather, it improves both the competition and the standing of a brand. As modern consumers are more empowered in identifying areas of weaknesses in business practices, how ethical (or unethical) a brand is will undoubtedly influence its profitability. Ethical considerations are crucial factors in the consumer decision-making process; brands and businesses with strong ethics have a competitive edge over their less-scrupulous rivals (Ferrell et al., 2019). Contrary to the assumption that success can only be obtained by ‘playing dirty’, a survey conducted among business owners in Central Europe found that success can be obtained through ethical means, even though full ethical behaviour is still considered impossible (Sroka & Szántó, 2018). Ethical behaviour and ethical leadership caused a qualitative shift in an organisation, as it improves work-related attitudes and affective organisation commitment, thereby resulting in increased organisation performance and business success (Peus et al., 2010). Therefore, there is a broad consensus that socially responsible behaviour is important to a firm’s success. Customers are quick to judge a firm’s ethical standards and make purchase decisions accordingly (Madhani & Mokhtar, 2016). From a customer perspective, ethical marketing practices are important in increasing satisfaction, loyalty, and trust. Therefore, ethics creates an environment which fosters important elements that result in higher customer lifetime value. While it may result in lesser short-term profits, ethical behaviour yields greater long-term gains as consumers are more trusting of the brand and have a greater sense of goodwill. Even if a brand has a small core following, being prosocial and ethical immensely benefits its reputation and that of its products (Folkes & Kamins, 1999). By properly incorporating ethical values and practices into its marketing mix, a brand can benefit from an improved consumer–brand relationship and perceived product quality (Lee & Jin, 2019). For example, promoting an eco-friendly, high-quality product with environmentally sound packaging leads consumers to evaluate said product more

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Unethical Marketing Practices and its Consequences

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favourably, thus significantly benefitting the subsequent consumer–brand relationship. Moreover, the promotional and communication messages used to sell a product are also critical evaluation factors for consumers. The key is to be authentic, truthful, and accurate—brands that consistently provide information that fit these criteria will elicit feelings of trustworthiness from their consumers.

4.12

Unethical Marketing Practices and its Consequences

While ethical marketing has been defined differently by various authors, there exists the following consensus: ethical marketing involves the application of moral principles in delivering beneficial values to various stakeholders in a truthful manner. It stands to reason that any marketing practice which disregards moral (or socially consensual) principles, delivers negative value, or fails to deliver as promised (including wilfully harming stakeholders or feigning ignorance to the harm delivered throughout the marketing process), and involves deception, distortion of facts, or the exploitation of stakeholders, can generally be considered as unethical. According to prior research (e.g. Lee & Jin, 2019; Madhani, 2020; Sihem, 2013; Tosun, 2020), unethical practices and decisions in several marketing areas can include: Product—Mislabelling, patent violations, low quality or unsafe products, non-adherence to product warranty, and planned product obsolesce. Pricing—Non-price price increases, deceitful pricing advertisement, unreasonable price increases, and price fixing. Selling—Bribing, stealing trade secrets, disparaging customers, misrepresentation, disclosure of customer rights, unfair discrimination, disrespectful selling behaviour, applying unwanted pressure, and making false claims. Advertising—False advertising, deceptive advertising, bait-and-switch advertising, promotional allowances and services, spamming, psychoactive advertising, attack ads, using violence/sex/profanity, and false testimonials and demonstrations. Channel—Exclusive dealing, exclusive territorial distributorship, tying agreements, dealer’s rights, and confidentiality breaches. Competitive relations—Anti-competitive acquisition, barriers to entry, and predatory competition. Market research issues—Invasion of privacy and stereotyping.

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Blurred Boundaries

While certain unethical practices are highly apparent (especially in the areas of advertising and selling), some unethical marketing practices are more subtle and hidden from the consumer. These issues and tactics can ‘teeter on the blurred boundary between marketing mistakes and unethical marketing’ (Ching et al., 2020). Therefore, the onus lies on the brand and organisation to be transparent, accountable, and fair in its dealings (Ferrell et al., 2019; Laczniak, 2017; Szabo & Webster, 2021). Often, when a firm’s unethical behaviour is uncovered, it is too late to rectify. While unethical practices might offer quicker profits, they undoubtedly have a negative impact on a firm’s future performance. Unethical practices not only result in fewer long-term profits, but they can also damage a brand’s reputation, incur unnecessary costs for controlling negative fallouts, and require expending more marketing resources to attract new customers. Unethical practices might potentially incur large consumer resistance, resulting in boycotts and financial loss (Tomşa et al., 2021). In situations where an ethical breach is made known, emphasising product benefits or innovativeness has a negligible effect on enhancing consumer attitudes towards the brand (Ferrell et al., 2019; Folkes & Kamins, 1999). It is important for a firm to ensure congruity between its marketing messages on its own ethical standing while promoting its products to meet the social expectations of consumers, as consumers consider ethical issues seriously in their purchases (Kumar & Mokhtar, 2016).

4.14

Concluding Thoughts: Is Ethical Behaviour Genuine?

Consumers require more than claims—brands and companies must readily provide proof that they are as ethical and sustainable as they claim to be. Firms must take substantive, not symbolic, action in their ethical business approaches and marketing strategies. Younger consumers are increasingly wary and sceptical of brands who appear to be simply jumping on the ethical or activist bandwagon (Descouens & Gerbault, 2021). This sense of scepticism extends to CSR initiatives and communication approaches, as stakeholder scepticism is dependent on a company’s motives. Therefore, firms must communicate their motives explicitly and clearly to boost their credibility (Trapp, 2012). A study conducted on Canadian firms proved that while substantive actions might not directly benefit a firm financially, symbolic actions are negatively related to financial performance (Walker & Wan, 2012). This is especially so for firms where their ethical performance is objective and highly scrutinised, as well as when consumer sensitivity is high. Ethical behaviour and CSR campaigns generally result in positive responses. However, ‘stakeholders often scrutinize firms’ support initiatives based on assessments of the authenticity of the firm’s generosity or anticipated deception in firm

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communications’ (Wagner et al., 2009). These forms of behaviour, where firms ‘don’t walk the talk’ are generally known as ‘washing’ behaviour—providing false impressions or information to mask or divert consumers from unethical, or potentially unethical, aspects of the firm’s business and marketing practices (see the previous chapter’s discussion on greenwashing, bluewashing etc). The discussion on marketing and its relationship with ethics will continue to evolve and change based on the growth of consumer awareness and the proactivity of firms. Ethical considerations also need to account for socio-economic, cultural, and national contexts to be effectively implemented. Ethical standards and codes of conduct differ between organisations based on their stringency and objectives. Firms’ ethical standards also differ by industry and scope of operations. It is insufficient for firms to have an ethical standard that meets the minimal legal requirements only. They must instead go above and beyond to ensure their ethical standards also address the needs of society and other stakeholders. Ethical behaviour is instrumental in improving a brand’s financial standing and reputation among its competitors. Modern consumers are quick to identify unethical behaviour and instances when brands ‘don’t walk the talk’. Brands must take substantive action in their ethical endeavours and properly communicate their ethical or business goals to avoid confusion.

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Chapter 5

Sustainable Marketing

5.1

Introduction

Just as marketing trends have constantly changed, so too has marketing’s very definition. Indeed, it has shifted away from a driver of profits to being a custodian of both society and the environment. Originally, a business’ main goal was to improve its financial competition and economic profits. Similarly, the main goal of marketing was focussed on facilitating consumption to increase profits. The marketing concept recognises that organisations thrive by determining the current needs and wants of target customers and fulfilling them more effectively and efficiently than their competitors. However, as mentioned in Chap. 2, marketing and business’ purpose has since evolved (Friedman, 1962; Murphy, 2021) to include loftier, higher goals, including: • To move from doing what is legal to what is ethical (see Chap. 4). • To act responsibly towards stakeholder groups (including the natural environment) who are directly or indirectly affected by the firm, i.e. corporate social responsibility (CSR). • To act in ways that achieve long-term economic and social benefits, as well as to avoid jeopardising the needs of future generations, i.e. corporate sustainability. Rather than having a self-serving, firm-centric approach, more companies are moving towards a society and stakeholder perspective, as well as assuming more social responsibility for their actions (Murphy, 2021). Further to the perceptual shift in marketing focus, there is rising concern on the impact of negative externalities— especially the (increasingly apparent) toll on the natural environment (Laczniak, 2017). Many are concerned that the pursuit of economic prosperity and marketing success is causing irreparable damage to the environment and threatening the longterm survivability of humanity. This is the result of the realisation that Earth’s resources are finite and have been severely depleted by the global expansion of industrialised economies (Mohr et al., 2016). Beyond what businesses take, the © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 D. S. Mutum, E. M. Ghazali, Consumers, Society and Marketing, CSR, Sustainability, Ethics & Governance, https://doi.org/10.1007/978-3-031-39359-4_5

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impact extends to what they make—for instance, the waste generated has resulted in the pollution and destruction of natural systems (Fuller, 1999). As the United Nations (1972) has warned, we have now reached a point where we must shape our actions by more seriously considering the environmental consequences. It is now imperative for mankind to fight for a better environment for both us and future generations.

5.2

Sustainability Versus Sustainable

A sustainable market orientation is a strategic company approach that applies balanced and equitable integrational management of environmental, social, and economic resources (Mitchell et al., 2010). Under the sustainable marketing concept, a company’s marketing should support the most effective long-term performance of the marketing system. Firms must break from merely taking a proactive stance that anticipates consumers’ needs to one which helps guide their future needs and expectations towards a more sustainable outlook (Mitchell et al., 2010). Multiple authors have highlighted that, from a business perspective, being sustainable does not mean that a company adheres to sustainability practices (Rudawska, 2018). Firms have thus moved away from the previous understanding of judging success based on sole economic terms towards one which is sustainable, that is one which could sustain long-term success. Thus today, sustainable businesses should adopt a customer-centric sustainability perspective. As a business goal, sustainability thus construed translates into a ‘triple bottom line’ responsibility, with the implication that the assessment of business results should be conducted not only from an economic- or growth-based perspective but should also consider the natural/environmental and social impacts. Sustainable marketing’s basic tenet is that companies should ‘encourage managers to seek sources of competitive advantage in three dimensions of sustainability, namely, economic, environmental, and social’ (Dao et al., 2011; Braccini & Margherita, 2019; Evans et al., 2017; Rudawska, 2018) (Table 5.1). Though the three dimensions of sustainability—economic, environmental, and social, are commonly recognised as the pillars of sustainability, it is worth noting that different frameworks and perspectives exist. The authors feel that there is a Table 5.1 The three dimensions of sustainability (Dao et al., 2011; Braccini & Margherita, 2019; Evans et al., 2017; Rudawska, 2018) Dimension 1. Environmental 2. Social 3. Economic

Renewable resources, low emissions, low waste, biodiversity, and pollution prevention (air, water land) Equality and diversity, Well-being, community, development, labour standards, health and safety, and quality of life Profitability, business stability, financial resilience, long-term viability, and return on investment (ROI)

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Fig. 5.1 Quadruple bottom line of sustainability

growing body of literature that supports the inclusion of a technological dimension (for example Popkova et al., 2022). The digital revolution has reshaped the entire economy by driving innovation, transforming industries, and creating new opportunities. It has fundamentally changed how businesses operate, how consumers engage with products and services, and how people work. As technology continues to advance, it is fast emerging as a key driver of sustainability (United Nations Industrial Development Organization, 2022). The digital revolution offers opportunities to advance sustainability through the rapid development and use of artificial intelligence, green technologies, resource efficiency, remote work, circular economy practices, and environmental monitoring. Thus, it is important to acknowledge the important role of technological innovation, diffusion, and system-level changes in achieving sustainability objectives. Technology plays a crucial role in addressing both the environmental and social challenges and advancing sustainable development. Sustainable technologies and innovations can contribute to sustainable development goals (SDGs) outlined by the United Nations. Thus, we have the Quadruple bottom line of sustainability (presented in Fig. 5.1), which includes technology as the fourth dimension of sustainability besides the three other dimensions.

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Sustainability Landmarks

The first supranational meeting which widely addressed sustainability issues and concerns was in 1987 at the first conference on sustainability organised by the World Commission on Environment and Development (WCED). It resulted in the first shift of the definition of sustainable business from one of economic terms to one which could sustain long-term success. Since then, a significant amount of effort has been expended into defining sustainability and how it could be implemented in practice. Initially, the agenda formulation focused solely on ecological factors and natural environmental damage, but slowly expanded to include a multitude of social issues, such as poverty and desperation, which are still prevalent in substantial global increases in material wealth (Sheth & Parvatiyar, 2021). According to McCannErickson (2007, p. 6), sustainability is now ‘a collective term for everything to do with responsibility for the world in which we live. It is an economic, social, and environmental issue’. It is about consuming differently and consuming efficiently. It also means sharing between the rich and the poor and protecting the global environment while not jeopardising the needs of future generations. Therefore, while the terms ‘sustainable’ and ‘sustainability’ are not entirely synonymous, they are gradually becoming intertwined and interlinked from a marketing and business development perspective.

5.3.1

1987: Sustainability Conference

The first conference on sustainability was organised by the WCED (also known as the Brundtland Commission). The WECD was initiated in response to mounting concerns over environmental problems associated with higher living standards and population growth (Jarvie, 2016; United Nations, 1992). The conference highlighted the concept of needs, prioritised the elimination of poverty, and stressed the notion that technology and social organisations impose limits on the environment’s ability to provide for the world’s current and future needs. There was a call for the establishment of the UN Programme of Action on Sustainable Development and the conference laid the foundations for the 1992 Rio Earth Summit. The report, titled ‘Our Common Future’, defined sustainable development as ‘The development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ (Keeble, 1988).

5.3.2

1992: Rio Earth Summit

The primary purpose of the Rio Earth Summit—more formally known as the United Nations Conference on Environment and Development (UNCED)—was to reconcile

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worldwide economic development with environmental and non-renewable resources protection. It also agreed upon the establishment of several treaties and documents, including the Convention on Biological Diversity and The United Nations Framework Convention on Climate Change (UNFCCC; also known as the Global Warming Convention), and laid the groundwork for the establishment of the Earth Council Alliance (ECA). The summit led to the establishment of 27 principles regarding the integral and interdependent nature of Earth and identified sustainable consumption and production as a key priority (Mutum et al., 2019). Following this conference, the term ‘sustainability’ became closely linked with environmentally friendly activities, green activities, and green consumption (Mutum et al., 2019). A transformation of consumption and production patterns is now necessary in both developed and developing countries to ensure environmentally-sound economic prosperity.

5.3.3

2000: The Millennium Development Goals

The Millennium Development Goals (MDGs) were adopted as the high-level objectives of the global community. Due to its donor-centric view of development, most responsibility in the execution of the MDGs was assigned to developed countries in assisting developing and under-developed countries (de Jong & Vijge, 2021). While the main goal of the MDGs was to end extreme worldwide poverty via economic reforms and foreign aid by 2015, it also included ensuring environmental sustainability in the form of MDG 7 (Mutum et al., 2019). This goal included integrating sustainable development practices into governmental policies and programmes, reducing the rate of biodiversity loss, reducing the number of people without sustainable supplies of safe drinking water and sanitation by 50%, and improving the lives of at least 100 million residents of urban slums (Lautensach, 2020).

5.3.4

2015: Paris Agreement

Known also as the Paris Agreement under the United Nations Framework Convention on Climate Change, the Paris Climate Agreement, or COP21, the convention’s main achievement was the adoption of the 2030 Agenda for sustainable development by all UN member states in 2015. The 2015 Agenda introduced 17 sustainable development goals with 169 associated targets, all of which were intended to be achieved by 2030. These 17 goals include no poverty; zero hunger; good health and well-being; quality education; gender equality; clean water and sanitation; affordable and clean energy; decent work and economic growth; industry, innovation, and infrastructure; reduced inequality; sustainable cities and communities; responsible consumption and

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production; climate action; life below water; life on land; peace and justice strong institutions; and partnerships to achieve these goals (Mutum et al., 2019). Unlike the previous focus of MDGs—namely, to end extreme poverty—the 17 sustainable development goals (SGDs) introduced in the Paris Agreement adopted a much more comprehensive approach to sustainability (de Jong & Vijge, 2021). The outlined SDGs were inclusive of social development, environmental sustainability, economic development, and peace and security (United Nations, 2015). They were also more people-centred and called for the participation of all members of society. Moreover, they were focused on the interplay between the 5Ps—people, prosperity, planet, partnership, and peace (United Nations, 2015). As such, sustainability was no longer to be relegated to a secondary role but was rather made the core focus of the SDGs (de Jong & Vijge, 2021). Sustainable marketing is often used interchangeably with the term green marketing, but this may not be correct as highlighted above. Thus, it is important to also discuss the concept of green marketing first.

5.4

Green Marketing

Peattie & Crane (2005) concluded that most of what has been referred to as ‘green marketing’ had nothing to do with marketing or even the environment but was in fact largely greenwashing, which we have discussed earlier. Fuentes (2015) also highlighted the lack of empirical studies on green marketing which could help guide businesses. The definition of green marketing has changed over time in line with the growing importance of environmental sustainability (Dangelico & Vocalelli, 2017). According to them (p. 1274), green marketing includes ‘environmental sustainability as the third aim beyond consumer satisfaction and company profitability’. Papadas et al. (2017) conceptualised green marketing orientation and defined it is defined as ‘the extent to which an organization engages in strategic, tactical and internal processes and activities which holistically aim at creating, communicating and delivering products and/or services with the minimal environmental impact’ (pp. 12–13). Drawing on green marketing literature they identified three main dimensions of green marketing, namely, strategic green marketing orientation, tactical green marketing orientation, and internal green marketing orientation. While strategic green marketing orientation refers to long-term, top management actions and policies, tactical green marketing orientation involves short-term actions that transform the traditional marketing mix into a greener one. Finally, internal green marketing orientation involves the pollination of environmental values across the organisation to embed a wider corporate green culture (Papadas & Avlonitis, 2014). They showed that the green marketing scale has internal consistency, reliability, construct validity, and nomological validity.

5.5

5.5

Sustainable Marketing Concept and Principles

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Sustainable Marketing Concept and Principles

Sustainable marketing encompasses social, environmental, and economic perspectives, and emphasises the rise of a stakeholder orientation (Maignan & Ferrell, 2004). It has been defined differently by various scholars. Let us examine a selection of these. First, differentiating it from conventional marketing, which does not consider the impact of goods and services on the environment, Bernyte (2021) argued that sustainable marketing is ‘a holistic approach, which involves identification and satisfaction of customer needs in a sustainable manner, while conventional marketing satisfies needs and wants in the most profitable manner’. On the other hand, Fuller (1999) defined it as ‘the process of planning, implementing, and controlling the development, pricing, promotion, and distribution of products in a manner that satisfies the following three criteria: (1) customer needs are met, (2) organizational goals are attained, and (3) the process is compatible with ecosystems’. Therefore, a holistic sustainable marketing approach is also inclusive of other stakeholders aside from business owners, employees, consumers, and stockholders. This includes other stakeholders—especially the environment and society. Kumar et al. (2012) highlighted the importance of relationships by defining sustainable marketing as ‘building and maintaining sustainable relationships with customers, the social environment and the natural environment’. Similarly, according to Martin & Schouten (2011), sustainable marketing is the process of creating, communicating, and delivering value to customers in such a way that both natural and human capital are preserved or enhanced throughout. Most of the definitions above emphasise that sustainable marketing should not come at the expense of human or environmental conditions. We thus define sustainable marketing as marketing that reconciles the demands of customers and other stakeholders, while also taking into consideration the environmental and social impacts. According to Kramer (2014), sustainable marketing should include: 1. Increasing profitability through sustainable (social and environmental) decisionmaking processes within a company. 2. The necessity to comply with the applicable laws and regulations relating to environmental, as well as legal and administrative, standards on a national and international scale. 3. Increasing the activities of competitors in social and environmental actions. 4. Increasing ecological awareness, and the growing need to engage in resolving social and environmental issues affecting the participants of the entire value chain: from manufacturers or service providers, and through intermediaries/ business partners, to consumers. The growing popularity of sustainable marketing is mostly being driven by the urgency to address sustainability issues due to the fact ‘that climate change, environmental degradation, and effects of substantive economic inequalities around the world are not anymore a distant future’, as indicated by a wealth of scientific

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evidence (e.g. Sheth & Parvatiyar, 2021). This has resulted in an increasing amount of government organisations at various levels (including supranational ones) pledging themselves to sustainability commitments, development agendas, and policies to enact effective change. Companies across various industries are now increasingly engaging with stakeholders in their value chains to adhere to social and environmental standards. As Bernyte (2021) highlighted, brands and corporations that focus on sustainable marketing increase the credibility with which consumers perceive their strategy and communications.

5.6

Ethical Versus Sustainable Marketing

We argue that ethical marketing is different from sustainable marketing with the former primarily concerned with integrity and fairness to consumers and other stakeholders, while sustainable marketing focuses specifically on the environmental and social sustainability of the products or services being marketed. For example, it is possible for a business to engage in ethical marketing without necessarily being sustainable, and vice versa. A business may conduct its marketing activities in an ethical manner but still sell products that have a negative impact on the environment. On the other hand, a business may sell environmentally friendly products, but engage in unethical marketing practices, such as using deceptive advertising or exploiting consumer data. However, we believe that ethical marketing and sustainable marketing are closely related and can overlap in many ways. Ethical marketing practices, such as being transparent and trustworthy in advertising and respecting consumer privacy, can contribute to the overall sustainability of a business. In addition, promoting products and services that are environmentally and socially responsible can be seen as both ethical and sustainable. Both ethical marketing and sustainable marketing consider the long-term consequences of marketing activities and strive to minimise the negative impacts. As Kotler & Armstrong (2018) pointed out, good ethics are a cornerstone of sustainable marketing. Overall, ethical marketing and sustainable marketing are both important considerations for businesses, and it is best for a business to strive for both to create a positive and lasting impact on society and the environment.

5.7

Five Sustainable Marketing Principles

A macro-view of sustainability and marketing involves first identifying the most salient socio-ecological problems, then gradually reconfiguring the marketing mix, and creating favourable changes for sustainable consumption and production (Kemper & Ballantine, 2019). It should be guided by five sustainable marketing principles, namely, consumer-oriented marketing, customer value marketing,

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innovative marketing, sense-of-mission marketing, and societal marketing. These principles are not always separate. Indeed, there are multiple overlaps in how they affect a firm’s marketing approaches.

5.7.1

Consumer-Oriented Marketing

This orientation means that a company should view and organise its marketing activities from a consumer perspective. A company should thus strive to sense, serve, and satisfy the needs of a defined group of customers, both in the present and future. Consumer-oriented marketeers are highly aware of how consumers can shape the marketing planning process and its subsequent outcomes. Rather than view consumers as a peripheral factor, consumers (both current and potential) are the core factor on which the marketing efforts hinges. Consumers are important in shaping new markets in that they are a source of market innovation, and critically affect adoption and diffusion (Branstad & Solem, 2020). Consumers and firms hold different degrees of power depending on the firm’s legitimacy, the stage in the product life-cycle process, the type of diffusion, the collaborative and co-creation efforts, as well as a myriad of other factors. Therefore, rather than working independently of, or even against, the consumers, consumeroriented marketing efforts actively anticipate, engage, and involve consumers in marketing processes. As consumers are also important drivers of new product development (NPD), being able to anticipate how consumers make decisions is the basis of consumeroriented NPD. Consumer-oriented NPD meets with success when (Grunert & van Trijp, 2014): 1. The product delivers something meaningful which is perceived as valuable by the consumer. 2. The product is distinctive from competitors’ offerings. 3. The innovation is closely aligned with the company’s capabilities in that it synergises between the marketing and technology competencies. 4. The new product is developed through a well-designed and well-executed NPD process that receives sufficient support within the culture of the organisation (market orientation). Brand leaders also play an important role in shaping a consumer-focused culture and marketing orientation. They must be mindful of the past, current, and future state of their brands’ identities to stay relevant to consumers and drive long-term planning and growth (Gifford & Newmeyer, 2019). Certain consumer-oriented and -driven activities, such as brand community participation, are instrumental in developing a strong emotional connection between brands, customers, and consumer groups.

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Customer Value Marketing

Customer value marketing can be defined in two ways (Smith & Colgate, 2007). First, from a customer’s perspective, the perceived value (or customer-received value) can be driven by either functional, social, emotional, epistemic, or conditional value, and second, from a firm’s perspective, it is the value of the customer, also known as the customer lifetime value. We refer to customer value marketing as marketing that creates value for consumers, which in turn enables companies to capture value from consumers in return. The company should put most of its resources into customer value-building marketing investments. Firms can appeal to customer value by appealing to the following (Smith & Colgate, 2007): 1. Functional/instrumental value—Emphasising superior product quality, innovation, and time-to-market. 2. Experiential value—Having responsive, intimate, and well-tailored customer relationships and/or by customising solutions to narrow market segments. 3. Symbolic/expressive value—Creating a brand image/quality which emphasises its stakeholder relationships, novelty, and its excellent public relations and advertising. 4. Superior cost/sacrifice value—Achieving operational excellence by focusing on efficiency, effectiveness, and standardisation, as well as minimising its processes to reduce as much overhead as possible. Therefore, by creating superior customer value for customers—which results in more loyal and willing customers, thereby increasing customer lifetime value—firms can reap financial benefits (Graf & Maas, 2008). Customer value marketing is a longterm, strategic approach, as its strategies are ‘long-term investments for companies that must be given the best service for the continuity of their business’ (Donny et al., 2018). The creation of customer value requires firms to build strong relations and high levels of cooperation with customers (Sánchez-Gutiérrez et al., 2019). Competitive customer value creation and marketing is an ongoing, strategic commitment that combines relationship management and product innovation. It also involves the establishment and maintenance of a two-way communication channel between a firm and its customers to create dialogue and dynamically innovate its marketing strategies based on customer inputs. Therefore, customer value marketing also requires consumer-oriented marketing strategies, as the marketing impetus is not what can be obtained from customers, but rather what value the brand offers that resonates with its customers. From a practical perspective, customer value marketing must identify the sources of value, how it is captured, what other value dimensions affect the core value proposition, where are the value triggers, and precisely how value affects both the firm’s performance and the customer’s well-being (Zeithaml et al., 2020). Other aspects, such as the historical, cultural, and social context, as well as consumer

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activities, can also influence the consumer’s value perceptions (Zeithaml et al., 2020).

5.7.3

Innovative Marketing

Innovative marketing requires that the company continuously seek real product and marketing improvements. Innovation is not limited to new ideas or products; it also includes new marketing processes and business methods. Firms that are highly innovative can develop competitive advantages more quickly (Lafferty & Hult, 2001). These innovations include (but are not limited to): 1. Technical and technological innovations, including new products and manufacturing technology which enable the maximisation of raw materials and the reduction of waste. This is probably the most important type of innovation with regards to marketing. 2. Organisational innovation or the mastering and regulation of new production methods. This includes ensuring goods and services meet environmental standards. 3. Economic innovations, particularly within the fields of planning, renumeration, and performance evaluation. 4. Managerial innovations, which refer to changes in management styles and systems to be more adaptable and sustainable. 5. Social innovations, namely the ideas and strategies that contribute to healthy societal changes, and the protection of individual and environmental rights. 6. Legal innovations, including new or amended laws and regulations that improve overall economic efficiency and environmental protection. Therefore, innovative marketing can directly or indirectly address sustainability issues. For example, constant improvement in manufacturing technologies can improve waste reduction and production efficiency, which serves to alleviate the burden on natural resources while simultaneously improving the manufacturer’s output. Companies that adopt cutting-edge business strategies based on fresh approaches to value creation and value capture, can transform the way they conduct business to maintain a competitive advantage. According to the research evidence, innovation is a key capability of companies that aim to improve their competitive advantage, while supporting sustainability (Grigorescu et al., 2020). Innovative products should address customers’ needs while providing customer value, which results in higher satisfaction and favourability (Payne et al., 2017). Innovation must also be paired with being customer-focused and market-oriented (Gifford & Newmeyer, 2019). Innovation cannot solely focus on internal metrics (i.e. production efficiencies). Instead, it should also include external metrics (i.e. consumer insights and market trends) for brands to be resilient and long lasting. Brands that are overly reliant on

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their existing strategies, but lack innovation or willingness to change, will ultimately decline. Kodak and Nokia serve as prime examples.

5.7.4

Sense-of-Mission Marketing

This refers to when companies define their aims in broad social terms rather than in narrow product ones. A sense of mission is an emotional commitment felt by people towards the company’s mission (Campbell & Yeung, 1991). Brands linked with broader missions can serve both their own best long-term interests and those of consumers. A well-crafted mission statement enables a brand to define its focus areas and direct its marketing efforts to be more customer oriented. It should also properly communicate the brand’s values and beliefs to its stakeholders (Straker & Wrigley, 2018). Well-established mission statements provide both strategic and philosophical benefits to a firm (Campbell & Yeung, 1991). From a strategic perspective, a mission statement should be crafted in such a way as to focus on customer needs rather than simply highlighting a brand’s production efficiencies. A mission statement is also useful as it acts as a cultural ‘glue’ which enables employees to have shared values, behavioural standards, and cultural norms. Mission statements should also evolve and change to reflect a brand’s emphasis on customers and sustainability (Schrage, 2019). During the age of British imperialism, certain institutions were also granted corporate status upon the authority of the Crown, and, to an extent, functioned in such a way as to serve society, such as through the building and maintenance of roads, bridges, and canals (Chaffee, 2017). While the main narrative of the development of the corporation suggests that it should engage in socially responsible behaviour, the solidification of modern corporate law—which differentiated between for-profit and non-profit organisations—arguably caused a divide between societal obligation and profit generation (Chaffee, 2017). Fortunately, the socially responsible behaviour of corporations has since gradually changed from philanthropic efforts to being a mandatory requirement of ethical firms. Throughout the eighteenth and nineteenth centuries, the overall moral failure and litany of population issues foregrounded the urgent need for social reforms and increased philanthropic efforts (Carroll, 2009). This change was largely driven by Christian religious philosophy, which sparked high levels of idealism and humanism among Victorian philanthropists, giving rise to more welfare schemes for the working class, the poor, children, and females. An example of this would be the creation of the Young Men’s Christian Association (YMCA), whose objective was to encourage the application of Christian values in business activities. Welfare activities then shifted to the improvement of employee conditions and social sensitivity by improving society’s quality of life (Carroll, 2009). These activities were incited by the challenges of growing urbanisation and industrialisation, which raised concerns for the need of creating a harmonious balance between industrial

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competition and improved working and lifestyle conditions. Subsequently, the role of business managers also changed from being profit maximisers to balancing the needs of clients, workers, and the community (Carroll, 2009). Accordingly, businesses were once again seen as institutions with social responsibilities, especially for large corporations that ‘concentrated great power and that their actions had a tangible impact on society, and as such, there was a need for changing their decision making to include considerations of their impact’ (Bowen et al., 2013). Brands that produce products that complement, enhance, and enable the execution of its mission statement can obtain synergic effects (Joachimsthaler et al., 2019). For example, in a world of virtual games and digital entertainment, the Lego company continues to achieve success as it strives to ‘develop the builders of tomorrow’.

5.7.4.1

Lego

The company’s red logo has become synonymous with children’s toys and entertainment, as well as amusement parks worldwide. Founded by Ole Kirk Christiansen in 1932, Lego is derived from the Danish words—‘leg’ and ‘godt’, meaning ‘play well’. This concept of bridging children’s toys with wellness extends to its handling of sustainability and environmental issues. It takes a proactive stance towards sustainability by constantly improving its toy manufacturing processes and tweaking its supply chain to leave as minimal an environmental impact as possible. Most Lego products were originally manufactured using acrylonitrile-butadiene-styrene, which is a non-recyclable petroleum-based thermoplastic. In 2015, Lego invested US$55 million into a brand-new Sustainable Materials Centre to create environmentally friendly products, which resulted in the successful creation of plant-based bricks. Lego also aims to leave a net-zero carbon footprint, implemented an Our Zero Waste to Landfill target by 2025, and seeks to replace all its packaging with renewable and recycled materials by 2025. In tandem with its environmental efforts, Lego also has a LEGO® Replay, which donates old Lego bricks to children’s groups, and has signed up to the World Wildlife Fund’s (WWF) Climate Savers Program. By complementing its core products (Lego bricks) with other entertainment products, Lego has been able to create opportunities in film and video games.

5.7.5

Societal Marketing

Societal marketing refers to when companies make marketing decisions by considering consumers’ wants, the company’s requirements, and the long-term interests of both consumers and society. Based on the marketing orientation that marketers have a greater social responsibility than simply satisfying customers and providing them with superior value, marketing activities should strive to enhance society’s overall well-being (Kotler & Zaltman, 1971).

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The core concept of societal marketing thus involves looking beyond the immediate needs of the consumers, as what might be good for consumers may not necessarily be good for society. Societal marketing also enables organisations to identify the needs and interests of its target markets while also preserving and enhancing societal well-being (Kotler, 2020). Firms that adopt societal marketing seek to balance short-term consumer wants with long-term societal welfare. The organisational and marketing goals of a societal marketing orientation also seek to incorporate long-term survivability, strategic agility, and meaningful social responsibility (He & Harris, 2020).

5.8

Corporate Social Responsibility

The social responsibilities of businesses are ‘the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society’ (Bowen et al., 2013). A normative perspective of Corporate Social Responsibility (CSR) focuses on its values and principles in fulfilling four key responsibilities: economic, legal, ethical, and discretionary (Carroll, 1979; Schwartz & Carroll, 2003). Based on this approach, Carroll (1991) further developed the CSR pyramid, which includes four levels (see Fig. 5.2). The sensitivity and adoption of social responsibility thus lies upon the morality of managers; therefore, a socially responsible firm can only be made manifest by moral managers (Carroll, 1991). On the other hand, a descriptive perspective of CSR holds

Fig. 5.2 The CSR Pyramid (Carroll, 1991)

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that social responsibility can be either positively or negatively impact stakeholders, and its issues can be legalised through laws and regulations, thereby enabling organisational leaders to decide on how best to deal with their stakeholders (Ferrell et al., 2019).

5.8.1

CSR Today and in the Future

Mutum et al. (2014), while looking at the perception of Nigerian consumers towards the CSR activities of an American oil and gas multinational corporation operating in the Niger Delta, showed that there was a link between CSR, social marketing, and ethical marketing, even though these are considered as different concepts. However, just being ethical is not enough. Companies are now expected to look beyond the ethical boundaries of their businesses and be active contributors to societal wellbeing. For firms to be socially responsible, they must constantly balance their legal and moral obligations, as well as be accountable to all stakeholders (Tamvada, 2020). Companies that actively engage in CSR go beyond their legal obligations towards society and the environment. Firms would do well to shift from a businesscentric to a stakeholder-centric perspective, as well as to become increasingly proactive in CSR practices. Contributing to the community should not be a ‘valueadded’ practice or a discretionary responsibility, but rather a part of ethical behaviour (Carrigan & Attalla, 2001). The growing awareness of the impact of corporate behaviour has also changed how CSR is viewed by companies and businesses. Rather than seeing CSR as a ‘method of atonement’ for firms’ wrongdoings, the strategic use of CSR can result in measurable economic benefits (Chaffee, 2017). The current prevailing view of CSR is that it can help capture a perspective in which a business sees added value in serving a wider array of societal needs and expectations and enables net benefits to flow from socially responsible actions (Jamali & Sidani, 2008). Thus, CSR can bring significant benefits to organisations that go well beyond mere moral satisfaction. CSR activities have been shown to help build consumer trust, which in turn boosts sales and profits. A study on telecommunication firms in developing countries found that CSR proactivity greatly contributes to turning satisfied customers into loyal ones, enhances a firm’s corporate reputation, and increases customer trust (Islam et al., 2021). Firms that highly engage in CSR activities not only develop a more positive image for their customers and shareholders, but they also increase customer purchase intention, even at a premium (Ali et al., 2020). CSR also helps with human resource management by ensuring that employees choose to remain with the firm, thus reducing labour turnover and increasing productivity. Moreover, CSR also helps attract more job applicants, thus enabling companies to hire the most talented employees. CSR also helps attract investors, develop new markets, and create opportunities for growth by fostering an environment in which enterprises can innovate and grow, and thus help raise a company’s share price (European Commission, 2011; Lorinczy & Sroka, 2017).

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It is also viewed as a pathway to address new corporate challenges and broader responsibilities in the areas of human and labour rights, the environment, anticorruption, and sustainable development. CSR has further evolved from being a method by which corporations reflect upon their activities’ impacts on social and global issues, even when some of those concerns might not be directly linked to their core business (Trapp, 2012), to the benchmark and central piece for the socially responsible movement where concepts of stakeholder engagement and management, business ethics, corporate citizenship, corporate sustainability and the creation of share valued are all inter-related and overlapped (Carroll, 2015). A more holistic overview of CSR is how a firm can develop sustainable value to be the core of its CSR activities (Chandler, 2019). While there has been significant improvement in CSR activities, outside intervention from consumers, NGOs, and governmental intervention is also required to strongly encourage CSR practices— especially in countries where they are not widespread (Doyduk, 2018). Future discussions on CSR will continue to be relevant and expand, as well as a shift towards new areas brought about by technological advances, digitalisation, rising consumer concerns, and awareness of various social and environmental issues (Rodriguez-Gomez et al., 2020). CSR changes are also influenced by large-scale macro-environment changes, especially as companies need to be swift and agile in adapting to changes in the industry, global economy, and political climate. The ongoing COVID-19 pandemic and the Russia–Ukraine war are two unprecedented challenges that firms have had to face in the twenty-first century. Indeed, companies and industries are now expected to be agile to the point of ‘hypermobility’ (He & Harris, 2020). These disruptions have not only altered the consumption habits of consumers and company supply chains, but the ethical dimension of the consumer decision-making process has also become more salient and is shifting towards more responsible and pro-social consumption. However, not all CSR approaches and activities are viewed positively. Certain corporate activities might be undermined by the excessive desire to self-promote. For example, COVID-19-related CSR, seen as a form of the commercialisation of the pandemic, could well result in a negative perception of a company (Antwi et al., 2021). In another study looking at CSR activities of an American oil and gas multinational corporation in Nigeria, respondents acknowledged the positive roles carried out by the company (Mutum et al., 2014). However, they believed that these activities were not in proportion to their size and financial strength, and the profit they obtained from the extraction of oil and gas from the region. Fortunately, many businesses are not carrying out CSR activities for purely monetary reasons, some also do so out of a sense of altruism and a genuine concern for their stakeholders (Romani et al., 2013). The initial motivations can be due to several factors—moral, ethical, utilitarian, and religious convictions (GarcíaSánchez & García-Sánchez, 2020). Firms are now increasingly displaying socially responsible behaviour and unity in their CSR approaches, especially during the COVID-19 pandemic (García-Sánchez & García-Sánchez, 2020; Popkova et al., 2021). Giving back to the society should not be considered as a ‘value added’

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practise or a choice but as an integral aspect. Even though it is not a legal or regulatory necessity, corporations need to take a more proactive role in building infrastructure and investing in education (Mutum et al., 2014). Firms are not alone in their CSR efforts. Indeed, consumers, governments, business leaders, and non-profit organisations have joined hands in an unprecedented way to support vulnerable people with critically essential needs during the pandemic (Mahmud et al., 2021). This presents a new hope for how CSR can further develop—one that is responsive, agile, collaborative, and inclusive of a firm, its competitors, society, and other stakeholders.

5.9

Sustainable Marketing Mix: The 4C Approach

The original marketing mix, the memorable four ‘P’ factors of product, price, place, and promotion, could be argued to be one of the core foundational understandings in marketing. However, it is not without its weaknesses when approached from a sustainable marketing perspective. This includes the four Ps being more producer oriented as well as not being able to capture the considerations of all stakeholders. However, as sustainability and sustainable marketing require a wider, more inclusive, and more holistic approach towards, a new ‘4C’ approach is now being adopted for analysing how sustainability can be incorporated into the marketing planning process (Ozturkoglu, 2016). Care must be taken with the sustainability marketing mix to ensure it does not result in behavioural barriers to sustainable consumption. The 4Cs are customer value (or customer solution), costs, convenience, and communication (Hung, 2021):

5.9.1

Consumer Value

The main advantage of creating products is to identify how they can provide consumer value and solutions that address relevant issues faced by consumers (Charter et al., 2006; Peattie & Belz, 2010). This approach aligns with the main reason why we purchase goods and services—we are facing a problem and expect the purchased product to solve it. Offering comprehensive ‘solutions’ instead of ‘benefits’ to consumers removes the limitation of designing products that only solve one issue or a product that solves one issue at the expense of another. The sustainability of a product depends on many concerns, including the energy and materials involved in its creation, the attitudes and behaviours of the companies and partners throughout the entire supply chain, and the product’s life cycle. The production factors of products can also pivot on the increased use of organic or free-trade products and materials, which relates back to the sustainable marketing approach—a basic premise of which is that a sustainable product should be designed

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to satisfy a genuine human need. Therefore, rather than using only a corporate approach to analyse consumer needs and product design, firms can also use ‘cooperative design’ to collaborate with consumers for better innovation (Zeithaml et al., 2020). Moreover, the product should also address and account for socio-ecological issues, including producing it in such a way as to not harm either society or the environment, or that its production or consumption does not cause chronic diseases, child/forced labour, animal testing, and environmental pollution, among others. The improved socio-environmental performance of an offering can come via specific features (e.g. low-energy appliances or low emission vehicles), through production or service delivery characteristics (e.g. recycled paper, organic food, or ethical banking), or from additional services or attributes (e.g. provision for recycling end-of-life products). Additionally, products should not be designed to intentionally undermine their competitors, but rather strive to be competitive by offering superior value. A sustainable product that offers good customer solutions and values also needs to ensure it has significant improvements compared to its previous iterations in either its life cycle or ecological friendliness. Moreover, sustainable production must have the ability to accommodate any other changes that might arise in the future.

5.9.2

Cost

From a sustainable marketing perspective, the consumer cost cannot only include the demand and marketing needs, and any costs arising from the process of exchange; it must also reflect the cost of social and environmental externalities. An alternative perspective of consumer cost is that of ‘total consumer cost’, which includes acquisition (price and purchase), usage, and post-usage (disposal) costs. One method for making consumers more conscious of the life-cycle advantages of a firm’s products is for the marketer to show suitable comparisons between sustainable products and services versus conventional products. Moreover, the energy and time costs throughout the production process should also be taken into consideration. In addition, a sustainable marketing cost must also account for the needs of all the producers without short-changing their efforts. However, greater efforts are needed to shift the consumer perception of sustainable products as being priced at a premium compared to ‘normally’ priced conventional products (Peattie, 2015). However, there is a silver lining. While sustainable products are generally considered more expensive, consumers are more willing to pay when they know they are contributing to an environmental cause (Deschamps et al., 2017; Park, 2018). To promote the consumption of alternative, more sustainable products, de-marketing can be organised using pricing strategies. The costs can also incorporate other complementary sustainability efforts, such as green tariffs and ethical investment. The pricing of products and services can also incorporate philanthropic contributions and donations to other causes and organisations.

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There is a need to make a clear distinction between merely lowering a product’s cost and making it more sustainable, as sustainable products are not necessarily cheaper. On the contrary, sustainable products are often more expensive than their conventional counterparts, due mainly to their use of superior, but rarer, materials. However, consumer costs and prices should also account for the economic conditions of consumers. Products should not be priced so high as to inhibit consumers’ purchasing power, and thus inadvertently create a pricing barrier which inhibits sustainable consumption.

5.9.3

Convenience

The concept of a fixed place (or places) in the marketing mix being challenged due to changes in purchasing patterns of consumers (Peattie & Belz, 2010). Technological changes, such as online shopping, have shifted the consumption process into an online environment, where the places and means of distribution constantly change daily. The ‘convenience’ concept in sustainability differs from ‘place’ in the 4P notion, as ‘place’ in the latter emphasises the physical distribution of products, the organisation of distribution channels, relationship management, and the sole focus on the point of exchange. On the other hand, the ‘convenience’ concept emphasises how the distribution of processes can be provided in a convenient, timely, and hassle-free manner, with little expense to consumers, the environment, and other stakeholders. It also focuses on the organisation of distribution channels and the marketing intermediaries within them. Further to sustainable marketing being more ‘convenient’ for consumers, sustainability also seeks to limit transportation distances and costs as much as possible. This includes creating more depots/hubs, adhering to efficient schedules, planning shorter routes, using alternative or energy-efficient transportation, and vehicles that use fuels with less pollutants. Companies should strive to develop eco-efficient distribution channels as well as highlight how these are reflected in the final product. For instance, firms could raise consumer awareness of their partnerships with local producers. However, the costs involved in providing utmost convenience to consumers might not always be aligned to the principles of sustainability. Calculating convenience to customers should also factor in the externalities (social, environmental, and economic costs) involved to decide upon a proper trade-off point. These externalities can be mitigated by using proper energy and waste management policies and systems. While it may be impossible to reduce the environmental costs to zero, marketers should strive to approach this target as much as possible. They can do so by opting for vetting suppliers according to the supplier’s sustainability and environmental policies, as well as partnering with local producers to eliminate long-distance travelling. Most importantly, to ensure sustainable products and services are widely spread among consumers, efforts should be made to ensure that products and services can

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be easily located and accessible to all. While energy and resource consumption is undoubtedly vital to the distribution of sustainable products, its accessibility to consumers from all societal levels is also important (Peattie, 2015). Therefore, rather than just setting up shop in upscale or higher-end locations, companies should also bring sustainable produce to consumers from all walks of life. By not limiting themselves geographically to wealthier or socially advantaged communities, firms can break down the barrier that sustainable produce is only suitable for more ‘upscale’ communities. Sustainable marketing is not limited to making products more sustainable. Indeed, it is also intended to make the concept of ‘sustainability’ more easily practiced. To do so, companies can use programmes and campaigns which facilitate sustainable practices amongst their consumers. These include customer waste reduction campaigns, recycling campaigns, and buying second-hand goods. In addition to the methods mentioned in the previous paragraph, other distribution methods, such as wholesaling and retailing for certain products, can be also used to further the spread of sustainable practices.

5.9.4

Communication

Firms must expend effort in being credible and trustworthy in their sustainable practices and avoid being perceived as ‘fake’. Therefore, proper methods of communicating sustainability should be interwoven into firms’ product and service offerings, as well as their CSR programmes. Two-way communication should be facilitated between both companies and customers, as well as continual dialogue with stakeholders, as it is able to create a long-lasting relationship with consumers and raise awareness of the development of sustainable solutions. As mentioned previously in the discussion on the product life-cycle process, by being in constant communication with its consumers, firms can observe and better optimise the product’s life cycle is throughout its use and post-use stages. The challenge for firms is how to establish legitimacy in reporting sustainability efforts, while avoiding being perceived as ‘talking but not walking the act’. Moreover, firms must have a balanced and integrated sustainability communication that is established on both product and corporate levels to present a cohesive and united front towards their stance on sustainability issues. The content and methods of communication should also avoid potential negative impacts on both society and the environment, such as printing flyers to disseminate information, portraying minorities, or at-risk groups in questionable ways, as well as intentionally or unintentionally perpetuating gender and social stereotypes. There is a myriad of ways in which sustainability can be communicated to consumers, with advertising being the most used. However, such a method could easily come across as greenwashing if it lacks depth and evidence. Sales promotions with special offers can be used to encourage certain sustainable behaviours among consumers, such as by providing coupons or vouchers for consumers who bring in

5.10

Two Examples of Sustainable Initiatives by the Private Sector

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pre-loved items. Sales staff must also be equipped with the relevant know-how on how their company addresses sustainability issues so that they can properly reassure any consumer concerns. To facilitate two-way communication and understand what sustainability issues consumers most are concerned with, online and social media can be used as a platform through which consumers can air their concerns, as well as identify the most pressing sustainability issues. Product labelling and packaging are also important in both attracting attention and communicating information across to consumers. Product packaging should aim to be recyclable and reusable rather than single-use and disposable. Product labelling can also include such information as certifications and claims to aid consumers in making decisions.

5.10

Two Examples of Sustainable Initiatives by the Private Sector

Companies often face the need to reinvent themselves—from their corporate images to their business practices. Sustainability is now at the core of many companies, which influences the entire marketing process and corporate structure. In the following, we elaborate on how Apple and Unilever follow responsible and sustainable marketing practices:

5.10.1

Apple

Headquartered in Cupertino, California, Apple originally only sold computers but has since expanded into the smartphone market with tremendous success. However, its success has not come without criticism, as Apple has been accused of having environmentally unfriendly practices, labour exploitation, and the excavation of rare metals. Realising the environmental and social costs of its productions, Apple has since committed to being more environmentally conscious and friendly throughout its production processes and consumption. One of Apple’s key sustainable initiatives is to use recycled materials with a reduced carbon content (Conn, 2020). Apple has taken many initiatives in the recycled materials sector, including the creation of a specialist Material Recovery Lab to research recycling solutions, as well as creating the recycling robot ‘Dave’ to recover rare-earth magnets, tungsten, and steel from old phones. To complement its recycling efforts and encourage consumers to refurbish old products, Apple has also established such programmes as its Apple Trade-in, iPhone Upgrade, and AppleCare. Rare-earth metals, gold, and tungsten are then extracted from its traded-in devices and old products, thus further reducing the company’s

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dependency on mining for new materials. As an increasing number of materials are obtained from known or circular sources, these initiatives have also diminished the risk of Apple products being made using ‘blood metals’—metals that are obtained at the expense of environmental or social risks (Ndubisi et al., 2020). Another major initiative is its $4.7 billion investment in Green Bonds to fund projects with low-carbon manufacturing and recycling technologies (Apple Newsroom, 2022). These bonds have been invested into purchasing direct carbon-free aluminium from ELYSIS (Apple’s Quebec-based provider of aluminium), which emits oxygen in its manufacturing process instead of carbon dioxide. The ability to obtain carbon-free aluminium is highly instrumental to Apple’s sustainable goals as most of its products are made with 100% recycled aluminium enclosures. As Apple has committed to being fully carbon-neutral by 2030, it is also expending enormous resources both internally and, on its suppliers, to aid in their sustainable development goals. In addition, the Green Bonds are also used to develop new sources of renewable, clean energy projects, such as constructing wind turbines to construct data centres in Denmark, with excess energy being redirected into the Danish power grid. Apple also provides its Asian suppliers with training and resources to help transition to cleaner power sources through its Supplier Clean Energy Program. To date, over 175 of Apple’s manufacturing partners have committed to using 100% renewable energy for production, thus ensuring that its products would have a net-zero climate impact.

5.10.2

Unilever

Unilever had experienced a decade of stagnant sales and profits, highlighting the company’s need for a renewed energy and sense of purpose. This led Paul Polman, Unilever’s CEO, to assert that growth results from accomplishing a broader social and environmental mission instead of the more conventional corporate goals of growing sales, profits, and shareholder value. Consequently, Unilever launched its Sustainable Living Plan, an aggressive long-term roadmap for taking capitalism to the next level. Under the plan, the company intends to create a better future for the planet. Unilever’s long-run commercial success depends on how well it manages the social and environmental impact of its actions. The Sustainable Living Plan combines Unilever’s existing work and sets ambitious new sustainability goals. These goals span the entire value chain, from how the company sources raw materials to how consumers use and dispose of its products. Their plan aims to fuel future innovation, resulting in new products and consumer benefits. The plan is also meant to succeed in inspiring people around the world to take small, everyday actions that can culminate in a significant difference to the state of the planet. Unilever has identified Five Levers for Change, which are actions its marketers can take to inspire people to adopt specific sustainable behaviours. This includes making it understood so that it raises awareness and encourages acceptance,

5.11

Sustainable Marketing Barriers and Challenges

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making it easy by establishing convenience and confidence, making it desirable, rewarding, and finally making it a habit. The final level reinforces and reminds people to keep doing it once they have made a change.

5.11

Sustainable Marketing Barriers and Challenges

In this section, we focus on the sustainable barriers and challenges from a firm’s perspective, as opposed to unethical marketing behaviour or the perspective of consumers. These challenges are numerous and can arise from within or without the company (Ghadge et al., 2021). Let us examines these issues in more detail.

5.11.1

Internal Factors

Internal factors are those which emerge from within the organisation, usually due to a lack of managerial know-how, unreceptive stakeholders, and operational barriers.

5.11.1.1

Lack of Managerial Know-how

This lack of know-how is mostly due to the misinterpretation of sustainable development from a management’s perspective resulting from disagreements over which actions truly consist of sustainability. Therefore, the top management is at odds in prioritising activities that are inter-related on the social, environmental, and economic fronts. Some managers hold that sustainable activities should only focus on one of the three fronts, whereas a truly cohesive sustainability approach should be inclusive of all three domains. However, it may be a challenge to prioritise between sustainable activities due to managerial limitations and lack of know-how. As such, while certain managerial activities may seem sufficiently well-meaning, the upshot is that future sustainability plans and activities become hindered. There ought to be an alignment between sustainable marketing practices and the strategic goals throughout the company’s supply chain for its sustainable marketing practices to be fruitful.

5.11.1.2

Lack of Stakeholder Inertia

A lack of inertia from the stakeholders and the industry can lead to a low commitment level in sustainability practices. This is especially true when there is a need to realign current objectives and processes to meet sustainability objectives, causing a high degree of uncertainty among senior management.

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Due to the challenging nature of implementing sustainability, conflict can easily arise when there is a need to reorient long-term sustainability goals with short-term financial aims. Therefore, more effort is needed to reorient a company’s approach to sustainability and sustainable marketing to one which more greatly benefits longterm goals, even if it may come at the short-term expense of a company. Ultimately, managers, shareholders, and other stakeholders must reprioritise and commit to sustainable marketing goals and practices and view it as the core of their managerial activities, rather than a peripheral pursuit.

5.11.1.3

Higher Investment Costs and Less Flexibility

Companies may shy away from sustainable marketing practices and sustainability development due to higher initial investment costs. It may be harder to realise and actualise financial returns as the rewards might not be financially apparent. Moreover, the limited resources of some small- and medium-sized enterprises (SMEs) may hinder sustainable practices. Investing in environmentally friendly equipment, energy-efficient technologies, and training and staff development all come with higher expenses which might not generate a quick ROI. Therefore, firms might choose to spend less on sustainable practices on a proactive basis. This is also hampered by the firm’s size, as smaller firms are less flexible due to their limited resources. As larger firms possess greater levels of power over the supply chain network, smaller firms might not be able to influence sustainability practices to the extent that they wish.

5.11.2

External Factors

External factors result from influences and activities originating from outside firms’ control, including their suppliers and regulations:

5.11.2.1

Suppliers

Collaboration between a firm and its supply chain partners is integral to developing sustainability practices. However, a lack of integration and agreement on sustainability performances, as well as little commitment to supporting environmental initiatives, can influence the outcome of the entire supply chain. This negatively impacts not just the firm’s sustainability performance, but also its brand and reputation. To mitigate these issues, cooperation, transparency, and trust off all parties are needed for sustainability goals to be met. Trust can help prevent any collaboration inefficiencies and encourage firms to share the same sustainable practices. The ability to enforce and adhere to the right level of sustainability is also important.

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Chapter Summary

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Indeed, standards should not be following a one-size-fits-all approach, but instead suit the capabilities of the firm.

5.11.2.2

Lack of Regulations and Enforcement

Proper legislation is a significant driver of sustainable marketing. However, adherence to the right legislations is difficult due to different environmental awareness and standards, lack of regulatory support and guidance, as well as the law’s limitations in not addressing the most relevant sustainability issues. The enforcement of legislation is also an issue as developing or less-developed countries may have more relaxed legal standards. A firm’s ability to adhere to legislation is also another concern, as smaller firms might have little capacity to completely adhere to the proscribed laws and regulations and lack support from the authorities. Therefore, to create and enforce proper laws, government bodies should provide training and consultancy services to companies. Due consideration should also be given to the financial and resource capabilities of firms, and how the law is not only a tool for punishment.

5.12

Chapter Summary

Business goals have now transcended fiscal profitability to include sustainable responsibility. The approach towards marketing has also changed from being exclusively profit focused to contributing to general societal betterment. Properly planned sustainable marketing which are able to meet present needs without compromising future generations is critical in sustainable development. In this chapter, we introduce the Quadruple bottom line of sustainability (presented in Fig. 5.1), which includes technology as the fourth dimension of sustainability besides the three other dimensions. Moreover, each element of the marketing mix can contribute to sustainable value. Sustainable goals must be directly integrated into the entire marketing mix and be positioned at the core of a firm’s marketing activities. Businesses are becoming increasingly socially responsible. Moreover, CSR activities are continuing to grow in scope and scale, as well as becoming more inclusive of companies’ stakeholders and the needs of society. However, there are still criticisms against ethical and CSR movements, especially concerning the possibility that CSR activities are aimed towards profitability rather than the needs of society or the plights of more vulnerable groups. Marketing needs to take a broad view of ‘meeting customer needs’ and consider the impacts on all stakeholders across the lifecycle of a product/service. Marketing now includes creating, producing, and delivering sustainable solutions with higher net sustainable values while continuously satisfying customers and other stakeholders (Charter et al., 2006).

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Chapter 6

Social Marketing

6.1

Introduction

Originally, marketing principles and actions were perceived to solely reside within the confines of business and profits. Conflicts arose on the role of marketing in society, as well as how it can properly generate social benefits beyond financial value. Previous chapters within this thesis have already discussed some of marketing’s benefits, including the development of the social marketing discipline (Andreasen, 2012; Parker et al., 2016), economic development (including the formation of economic systems, and the creation of economic and employment opportunities) (Johnson & Tellis, 2008; Dawar & Frost, 1999; Deighton et al., 2021), and benefits to consumers (Dixon, 1984; Wilkie & Moore, 1999; Layton, 2015). Conversely, marketing is not without its detriments, such as the existence of unfair practices and consumer exclusion (Yinger, 1998; Skiba et al., 2019), the promotion of materialism (Bagozzi et al., 1991; Górnik-Durose, 2020), globalisation and the subsequent erosion of culture (Escobar, 1999; Witkowski, 2005; Ullah & Ming Yit Ho, 2021), as well as environmentalism (Kotler, 2011). Social marketing has changed and evolved over the years (Weinreich, 2011). However, several core principles and themes persist, including ‘marketing techniques’ and ‘societal welfare for the greater good’. Originally, social marketing involved the ‘use of marketing techniques for the design, implementation, and control of programmes calculated to influence the acceptability of social idea’ (Kotler & Zaltman, 1971). It then morphed into ‘the adaptation of commercial marketing technologies to programmes designed to influence the voluntary behaviour of target audiences to improve their personal welfare and that of the society of which they are a part’ (Andreasen, 1994, p. 110). Social marketing uses the core concepts of more traditional marketing, namely product design, appropriate pricing, sales and distribution, and communications to influence behaviours that benefit individuals and communities (Cheng et al., 2011). It can also be understood as ‘the use of commercial marketing techniques by © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 D. S. Mutum, E. M. Ghazali, Consumers, Society and Marketing, CSR, Sustainability, Ethics & Governance, https://doi.org/10.1007/978-3-031-39359-4_6

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governments and public sector bodies to promote behavioural change in the pursuit of social goals’ (Peattie, 2015). A consensus definition of social marketing was jointly developed by the International Social Marketing Association (iSMA), European Social Marketing Association (ESMA), and the Australian Association of Social Marketing in 2013: Social marketing seeks to develop and integrate marketing concepts with other approaches to influence behaviours that benefit individuals and communities for the greater social good. Thus, social marketing practices must be guided by ethical principles, and should also ‘integrate research, best practice, theory, audience and partnership insight, to inform the delivery of competition sensitive and segmented social change programmes that are effective, efficient, equitable and sustainable (iSMA et al., 2013).

According to Basil (2019), this definition has several advancements over other definitions as it includes new marketing approaches, integrates research and theory as well as other components and acknowledges that the practices should be guided by ethical principles. Social marketing can also be used to encourage or make certain beneficial behaviours more appealing (Kotler, 2011). It is an approach to changing (maintaining, starting, preventing, or stopping) unwanted or discouraging behaviour (Andreasen, 2012). To be highly effective, social marketing strategies need to consider how they can drive considerations and interventions on the levels of policy (upstream), communal or service (midstream), or the individual (downstream). These were also alluded to in earlier chapters as mic..0ro-, meso-, or macro-levels. At the micro- or individual level, the focus is on changing individual behaviour (Wallack, 2002). The meso- or organisational level deals with companies, non-profits, and community groups, who might directly or indirectly influence behaviour adoption (Wood, 2016). Finally, the macro-level consists of policymakers, governments, and the market, all of whom are social, political, and economic forces of change (Gordon, 2013). Social marketing seeks to encourage behavioural changes among its target audiences; conversely, it can also be used to influence policy, social norms, or legislation (Firestone et al., 2017). Whether upstream, midstream, or downstream, types of social marketing need not be exclusive from one another. On the contrary, most social marketing campaigns aim to achieve objectives on multiple levels. For example, an anti-smoking campaign’s main objective is to induce behavioural change among smokers and potential smokers by deterring them from taking up the habit. However, it will also be accompanied by calls for policy changes, such as demands for stronger anti-smoking laws from the government. Although social marketing campaigns typically target people with behavioural change interventions in their role as citizens, there can be a significant overlap with their role as consumers. Health campaigns promoting dietary improvement, cycling, and walking over driving, or responsible alcohol consumption all focus on important aspects of consumption (Peattie, 2015). Currently, the use of marketing principles and actions (such as segmentation, targeting, campaign planning, and social media outreach) for non-commercial activities is no longer unique. Social marketing is now used in various settings for multiple purposes, such as the reduction of alcohol and tobacco

6.2

History of Social Marketing

125

consumption, health awareness, sustainability issues, and environmentalism (Weinreich, 2011; Chen & Eriksson, 2019; Little et al., 2019; Leyva-Hernández et al., 2021).

6.2

History of Social Marketing

Originally, marketing principles and actions was perceived to be solely within the confines of business and profits. Some of marketing’s benefits have already been discussed earlier, including the ‘creation’ of the social marketing discipline (Andreasen, 2012; Parker et al., 2016), economic development (including the development of economic systems and creation of economic and employment opportunities) (Dawar & Frost, 1999; Deighton et al., 2021; Johnson & Tellis, 2008), and benefit to consumers (Dixon, 1984; Layton, 2015; Wilkie & Moore, 1999). Conversely, marketing also has its detriments including the existence of unfair practices and consumer exclusion (Yinger, 1998; Skiba et al., 2019;), the promotion of materialism (Bagozzi et al., 1991; Górnik-Durose, 2020), globalisation and the subsequent erosion of culture (Escobar, 1999; Witkowski, 2005; Ullah & Ming Yit Ho, 2021), as well as environmentalism (Kotler, 2011). Conflicts arose on the role of marketing in society, particular in terms of which social benefits it could provide further to financial value. Kotler and Zaltman (1971) are often credited with introducing social marketing as a topic of study. According to them, using marketing approaches and principles for non-commercial efforts, such as policy communication, non-profit marketing, and political campaigns, can facilitate the success of these goals. However, the first instance of social marketing being discussed in academic circles was in an article written by G.D. Wiebe in the 1951–1952 edition of the Public Opinion Quarterly. With the rhetorical question: ‘Why can’t you sell brotherhood and rational thinking like you can sell soap?’, he discussed how social goods could be sold as if they were a commodity and identified a marketing concept distinct from commodity marketing (Wiebe, 1951). This chapter sparked discussions on how the role of marketing could be personified in promoting public or social goods, and how non-business entities could use marketing insights and know-how to ‘sell’ ideas, concepts, or behaviour to the public. While Wiebe’s article may be the twentieth century’s first known official discussion about social marketing, there are instances of marketing being used to promote social goals in the eighteenth and nineteenth centuries. William Wilberforce’s campaign to abolish slavery in the eighteenth century had many practices and actions like those of modern marketers, including conducting market research, communicating via mass media, and organising community movements, such as fundraising activities and boycotts (Hastings, 2017). A later example in the nineteenth century would be the Lights in Darkest England (LIDE) match campaign, which promoted safer red phosphorus matches to Victorian workers with the aim to prevent ‘phossy jaw’ (i.e. mouth swelling) issues caused by the manufacturing of white phosphorus (Krisjanous, 2014). Organised by General

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William Booth (an evangelist affiliated with the Salvation Army), the LIDE campaign also used strategies not unlike contemporary social marketing, including environmental monitoring and formative research, segmentation and targeting, the application of the social marketing mix, partnerships with others, advocating for public policy change, as well as countering competition and challenges. Therefore, while social marketing may be a newly minted term, the use of marketing principles to advocate for social good is far from a recent invention. The first documented actual use of social marketing in modern times was in India in 1964 (Mutum et al., 2015). A marketing plan to promote family planning was proposed by the Indian Institute of Management (IIM) in Calcutta, to encourage the distribution of contraceptives (i.e. condoms) to eventually become a normal household item. Social marketing techniques were used to promote contraceptives as part of the government’s national family programme. The social marketing campaign was a clear success, as demand for condoms dramatically increased, causing the Ministry of Health and Family Welfare to implement condom production plans in several parts of India. Moreover, contraceptive pills were also introduced to the public later via pharmacists and small shops. More social marketing organisations were established in the 1990s to implement multiple social marketing programmes with funding from both the government and the private sector. As a result, India now boasts the largest government-led contraceptive social marketing programme in the world, and it recognises social marketing as key to ‘providing accessible and affordable contraceptive products’ (FHI 360, 2011). Social marketing programmes have since been used in multiple countries for various purposes, such as HIV and malaria prevention, anti-tobacco campaigns, and disaster prevention. From 1970s to 1980s, social marketing campaigns were widely used in several social programmes in developing countries to promote contraceptive and hygienic products (Lefebvre, 2011). Though social marketing was mainly used for malaria prevention and the treatment of HIV/AIDS in developing countries, its purposes have been somewhat different in developed countries (Lefebvre, 2011, 2013). In these countries, it has been mainly used for the prevention and reduction of risk behaviours associated with chronic diseases and addictive substances. These include programmes against tobacco, illicit drugs, and alcohol by communicating persuasive messages and health communication. Other social marketing campaigns in developed countries have also focused on other health issues, especially regarding blood pressure and heart diseases prevention. In addition to health and hygiene issues, social marketing has also been used to address environmental concerns, pollution, and conservation programmes across the world (Weinreich, 2011). Social marketing has been proven effective in driving behavioural and attitudinal changes towards biodiversity conversation efforts (Green et al., 2019). The ability to create interpersonal communication strategies, and integrate the needs of upstream, downstream, and midstream stakeholders are also mutually complementary and create synergic effects. It has also been used to address consumerism issues and consumerist behaviour, especially in anti-materialism campaigns (Peattie & Peattie,

6.3

Social Marketing Mix and Principles

127

2009; Hayes, 2018). It continues to be relevant today and is being widely used to reduce the spread of COVID-19 (Lee, 2020).

6.3

Social Marketing Mix and Principles

While the social marketing mix is adapted from its traditional counterpart, its interpretations and explanations differ due to differences in goals and purposes. The key distinction between social and conventional marketing is that the former places its focus first and foremost on the people—their wants and needs, aspirations, lifestyle, freedom of choice etc. (Lefebvre, 2011). Within social marketing, any solutions and products provided should have a consumer-centric approach that overlaps with social benefits and individual needs. The second distinction is that social marketing aims to achieve aggregate behaviour change—it is meant to incite a behavioural shift on both the individual and communal levels. Therefore, the success of social marketing programmes is judged by their impact on local, national, or international scales; social marketers’ foci are not only on individuals but on whole markets and communities. ‘What the social marketing approach embraces is understanding the determinants, context and consequences of current behaviours, and desired ones, from the pointof-view (POV) of the audience . . . context and consequences are conceptualised and operationalised by social marketers needs to include social and community variables, some of which may fall under the rubric of context (poverty, housing conditions, literacy, the quality of built and natural environments, social capital, working conditions, public policies and community assets)—a context not only to understand, but also to target for change’ (Lefebvre, 2011). With these points in mind (people-first and communal target behaviour), we now examine how the marketing mix is interpreted from a social marketing perspective.

6.3.1

Social Marketing Mix: The 4Ps of Social Marketing

The original 4Ps of the social marketing mix can be traced back to Kotler and Zaltman’s (1971) definition, which indirectly mentions each component of the marketing mix: . . . the design, implementation and control of programs calculated to influence the acceptability of social ideas and involving considerations of product planning, pricing, communication, distribution and marketing research.

Most early social marketers referred to the traditional 4Ps of the marketing mix and adapted it to fit their social marketing strategies. Below, we discuss the marketing mix in the social marketing context, following Ken Peattie and Peattie (2009):

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6.3.1.1

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Social Marketing

Product a.k.a. Proposition

In the social marketing mix, product is more of a social proposition and is most often intangible (Peattie & Peattie, 2009). The core product of social marketing is a behavioural offer, change in lifestyle, or the adoption of intangible ideas and behaviour. This core (often intangible) product can be coupled with real goods or be directly opposed to the consumption of certain products. Intangible products in social marketing can also be supplemented with tangible ones, such as a safe sex campaign (intangible product), which encourages the use of condoms (tangible product). The social marketing product can also be at odds with actual existing products, such as an anti-smoking campaign which discourages cigarette and tobacco consumption. The success of a social marketing campaign is reflected by the behavioural outcomes, on which other social or environmental outcomes lie upon. As behavioural change is an incremental process, the suggested behaviours must be relevant to a person’s life. Social marketing programmes should therefore be designed to incrementally shape behaviours in a manner that eventually leads to a behavioural or lifestyle change. Accessibility issues are also of the utmost importance, as the affordability and dissemination of information impact people’s engagement in the desired behaviour. Therefore, social marketing can make use of existing products and services outside of social marketing organisations to support behavioural changes. Consideration must be given to how complementary products and services impact consumers’ experiences, while reinforcing or inhibiting certain behaviours. In short, the product, service, or behaviour that is being promoted must be relevant and significant to the target audience’s life.

6.3.1.2

Price a.k.a. Cost of Involvement

Price in social marketing does not necessarily indicate a financial cost, but rather the overall cost of involvement of the target audience to adopt a certain behaviour. The target audience may need to overcome certain physical or non-physical barriers, or ‘pay’ a required cost should they wish to adopt the desired behaviour. Therefore, unlike conventional marketing, the cost involved from the target audience’s perspective could be much higher as it cannot be always measured using monetary values, nor does it have an immediate ‘pay off’ (e.g. more time is needed to adapt or ‘pay’ the cost in adopting a behaviour). These costs might be psychological (stress or fear from not adopting a behaviour), social (peer pressure to conform), cultural (desired behaviour is opposed to certain cultural norms), temporal, practical, physical, or financial. These costs are not always mutually exclusive. For example, a steady drinker or alcoholic might pay the ‘price’ of a behaviour psychologically (e.g. loss of the destressing effects of drinking) and socially (e.g. not being able to drink and fit in in certain social events).

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Price can also be viewed as incentive opportunities. The results of a behavioural change often result in non-monetary changes, such as a healthier lifestyle or preferable living environment. Focusing solely on the monetary costs involved in a social marketing programme can thus inhibit its effectiveness and reach. Furthermore, incentive pricing methods and programmes can also be used to promote behavioural changes, such as smoking cessation programmes which have been proven to result in higher rates of tobacco abstinence (Halpern et al., 2015). Being able to properly realign incentives and costs enables potential injustices to be addressed both swiftly and effectively.

6.3.1.3

Place or Accessibility

Although social marketing may involve products, it is not centred exclusively around physical products. Therefore, the original issues of places or distribution are not the focus of discussion. Place refers to the accessibility of desired behaviour. It also refers to the channels where the behaviour is promoted and where the change is supported. Opportunities must be created to perform healthier behavioural alternatives or abstinence from unhealthy ones. Therefore, for a socially marketed behaviour to be sustainable, the means to continually practice said behaviour must be created. Doing so provides opportunities for the adoption and maintenance of the behaviour. To create a suitable environment, social marketing should also strive to ensure that people are properly informed in making decisions. People should have access to the right information and understand how their behavioural changes could positively impact their lives. When people can make free and fully informed choices, behavioural changes become easier to spread and sustain.

6.3.1.4

Promotion a.k.a. Social Communication

Promotion refers to the methods through which change is promoted to the target audience, including advertising and relationship building. However, social marketing cannot rely on one-way dissemination of information but instead requires constant communication to ensure the behaviour or social proposition is being maintained. Two-way communication is especially important in a social marketing context, as there is a need for social marketers to garner feedback on the behaviour’s impact on individuals. The promotion methods used must also facilitate interaction and relationship building between social marketers and the target audience. Social marketing must consider any cultural and technological innovations and frame any communicative efforts as more reciprocal and dynamic. Communication agendas must also be set in social marketing depending on whether the core message is to influence upstream, midstream, or downstream behaviour.

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Effective social marketing strategies should seek to garner support not only from the public, but also from the media, policymakers, and opinion leaders. The creation of public policies that foster a better context for the use of products and the adoption of behaviour can effect a greater change in the population. Anti-smoking campaigns are prime examples of how de-marketing strategies are supported by public policy changes, such as increasing the price of tobacco alongside banning smoking in indoor venues (Lefebvre, 2011). While most social marketing mixes use the 4P approach, certain authors (e.g. Gordon, 2012; Burksiene et al., 2019; Lahtinen et al., 2020) have claimed that the 4Ps are insufficient for encapsulating the complexities of social marketing. Therefore, other Ps have also been proposed in addition to the above four, including:

6.3.1.5

Publics

These are the audiences involved in the social marketing programme. Publics can be stratified into internal and external. Internal publics are those who approve, design, or implement a social marketing programme, such as social marketers, social marketing organisations, donors, contributors, and upper management. It is important for internal publics and participants to collaborate in coordinating data and networks to create more effective social marketing programmes. External publics are those who are impacted by social marketing programmes, including the audience groups (namely primary, secondary, and tertiary), policymakers, other organisations, and gatekeepers.

6.3.1.6

Partnership

This refers to the organisations and individuals involved in operationalising a social marketing programme. Given the wide impact of such a programme, it is often not executable by just relying on the social marketing agencies itself; rather, other organisations and individuals need to pool their efforts. For example, programmes to de-market the sale of tobacco require the cooperation of tobacco companies, watchdog groups and organisations, as well as government and public policymakers to bring any de-marketing efforts into fruition. While the goals of these organisations may differ, effort is needed to align them in such a way where everyone’s effort is mutually complementary to producing synergic results.

6.3.1.7

Policy and Political Power

For any behavioural change to be maintained and sustained, the right environment must be created to support the behaviour in the long run. While social marketers can continually follow up and encourage their target audiences, public policy is also an effective method to motivate individual behaviour. Public policy is also key to

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Principles of Social Marketing

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ensuring that any unhealthy behavioural practices are curbed or discouraged with apparent results, asides from an individual’s conscience. Social marketing programmes are made more sustainable and beneficial when public policy works in conjunction with consumer feedback. Legislation is also useful in facilitating improvements to managerial approaches, governance, or regulation in the participants of a social marketing programme.

6.3.1.8

Purse Strings

Most social marketing programmes and organisations operate through funds and donations. This presents an additional dimension and need to discuss how these can operate in a financially smooth manner. Therefore, funding sources must be identified and discussed during the strategical development of a social marketing programme. Depending on the nature and scale of the programme, some funding sources may be more effective than others. The necessary funding must also be continually available throughout the campaign to ensure the programme’s sustainability and longevity.

6.4

Principles of Social Marketing

Social marketing benchmarks and principles are important to distinguishing between social and ‘regular’ marketing, and the compliance of marketing activities with social marketing principles. The extent to which a social marketing programme complies with the criteria determines the degree of its intervention. There are a few benchmarks or principles that define social marketing, or how it is employed to cause behavioural change (see Andreasen, 2002, 2012; Grier & Bryant, 2005; Fitzgibbon et al., 2007; McVey, French et al., 2010; Carins & Rundle-Thiele, 2014; Almodarresi et al., 2020). The eight social marketing benchmarks developed by the UK’s National Social Marketing Centre (Greenfield & Veríssimo, 2019; Kubacki & Szablewska, 2019) include: 1. Customer Orientation Focus on the needs, wants, motivations, and attitudes of the targeted persons towards the intervention by fully understanding their lives, behaviours, and core issues using a mix of data sources and research methods. It is important to always consider the social marketing efforts from the consumer’s perspective. 2. Behavioural Goals/Change Clear and attainable behavioural goals must be set for the audience in a chosen segment. It is important to ensure that an individual’s attitude, awareness, and

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intention are being changed before a behaviour can be altered. This will often take time. 3. Exchange Analysis By considering the benefits and costs of adopting and maintaining a behaviour, incentives for the targeted behaviour must be increased and barriers removed. These exchanges can be either tangible or intangible but must be made apparent enough to sufficiently motivate individuals. Identifying what sort of benefits the target audience prefer is key to maintaining long-term motivation. 4. Competition All the forces that compete with the time/interest of the target group must be clear. Competitive factors for drinking less alcohol include, for example social norms and peer pressure. There are two types of competition: direct competition, which includes other social marketing and public health campaigns that aim to engage the same target audience; and indirect competition, including other behaviours that attract the target audience’s time and attention. 5. Segmentation and Targeting Dividing a heterogeneous target group into more homogeneous segments (known as audience segmentation) based on motives, values, behaviours, attitudes, knowledge, and opinions. Developing an intervention based on these motives/values for a certain segment and avoiding a ‘one-size-fits-all’ approach increases the chance that the audience will adopt the targeted public health intervention. It also ensures that the available resources are more effectively used. 6. Methods Mix It is important to mix interventions rather than to focus exclusively on raising awareness as a mix tends to be more successful than a single intervention. Using a mix of the 4Ps of marketing in a cohesive manner can ensure the message and behaviour are delivered effectively and are sustainable. 7. Theory Based Developing a targeted intervention for the audience of one segment must be based on behavioural, health educational, and promotional theories, in addition to communication theories. 8. Insight Examine why people behave the way they do and identify actionable insights that lead to intervention. These insights can come from direct experiences and can influence whether positive or negative messaging is more effective in driving behaviour.

6.5

6.5

Social Entrepreneurship

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Social Entrepreneurship

When we talk about social marketing, it is considered important to touch on a related concept that has become very relevant today, namely social entrepreneurship. The idea of social entrepreneurship has existed since the early 1950s, but interest has surged in recent years after it was recognised as one of the ‘innovative approach for dealing with complex social needs’ (Johnson, 2000). It is generally agreed that William Drayton, a social entrepreneur, was responsible for the popularity of the term social entrepreneurship (Barendsen and Gardner, 2004; Dees, 2007). Since then, social entrepreneurship has received a lot of attention from researchers, professionals, and politicians alike. The book Social entrepreneurship, listed 10 different definitions of social entrepreneurship. This indicates the variety and differences of opinion with regards to this topic. As the editors pointed out, it would be difficult to come up with a definition that researchers would uniformly agree upon (Mair et al., 2006, pp. 4–6). This is because social entrepreneurship draws on diverse fields, including entrepreneurship, psychology, economics, sociology, and ethics (Weerawardena and Mort, 2006) and as a result, scholars do not have a consensus around the definition (Peredoa and McLean, 2006; Dacin, et al., 2011; Choi and Majumdar, 2014). A simple definition of social entrepreneurship was proposed by Mort et al. (2003, p. 76) who defined it as ‘the entrepreneurship leading to the establishment of new social enterprises and the continued innovation in existing ones’. A similar definition was given by Fowler (2014), who defined it as the creation of viable socioeconomic structures, relations, institutions, organisations, and practices that yield and sustain social benefits. Martin and Osberg (2007) distinguish social entrepreneurship from social service provisions and social activism and defined it as having three main components: 1. Identifying a stable but inherently unjust equilibrium that causes the exclusion, marginalisation, or suffering of a segment of humanity. Moreover, this segment lacks the resources or political influence to effect any meaningful change on their own. 2. Identifying an opportunity in this unjust equilibrium. This involves challenging the stable state’s hegemony by ‘developing a social value proposition, and bringing to bear inspiration, creativity, direct action, courage, and fortitude’. 3. Forging a new, stable equilibrium that releases trapped potential or alleviates the suffering of the targeted group. Thus, leading to a stable ecosystem which would develop around the new equilibrium, providing a brighter future for the targeted group and perhaps even the society. Martin and Osberg (2007) acknowledged that there are hybrid models of social entrepreneurship. For example, Grameen Bank in Bangladesh is a classic example of social entrepreneurship, which also used social activism to accelerate and amplify the impact of the bank.

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Social Entrepreneur Versus Business Entrepreneur

Social entrepreneurship differs from traditional business entrepreneurship in that it is measured not only by the financial benefits but also the social benefits. Dees (2001) explained that for social entrepreneurs, the social mission is explicit and central driving force. Thus, mission-related effect becomes the main criterion for social entrepreneurs and money is merely a tool to achieve their goals as opposed to business entrepreneurs whose main aim is to maximise profit and wealth creation is used to gauge value creation. This was echoed by Martin and Osberg (2007), who believed that the critical distinction between entrepreneurship and social entrepreneurship lies in the value proposition. Financial profit for the entrepreneur while the social entrepreneur aims for large-scale, transformational benefit for a significant segment of society or to the whole of society. According to Carraher et al. (2016), social entrepreneurs will play a greater role as catalysts for change, not only in traditional aspects but also in terms of the economy, social programmes, and the means of funding such programmes. Social entrepreneurs play the role of change agents in the social sector as highlighted by Dees (2001, p. 4): 1. 2. 3. 4. 5.

Adopting a mission to create and sustain social value. Recognising and relentlessly pursuing new opportunities to serve that mission. Engaging in a process of continuous innovation, adaptation, and learning. Acting boldly without being limited by resources currently in hand. Exhibiting heightened accountability to the constituencies served and for the outcomes created.

6.5.2

Social Enterprise

Peredoa and McLean (2006) acknowledge that the concept of social entrepreneurship and the concept of social enterprise as an activity have been used interchangeably by many authors. It should be noted that a business started by a social entrepreneur is called a social enterprise (which is an activity) and it is defined differently by different scholars and Governments. While other countries still do not have a legal definition. For example, Malaysia did not have a legal definition or recognition of social enterprise as a business entity for a long time. The Government of Malaysia finally recognised the importance of this sector, and a social enterprise is now legally defined as ‘a business entity that is registered under any written law in Malaysia that proactively creates positive social or environmental impact in a way that is financially sustainable’ (MaGIC, 2022). In the UK, the Department for Business Innovation and Skills, clearly states that the term ‘Social Enterprise’ describes the purpose of a business, not its legal form. A social enterprise is defined by the British Government as, ‘a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the

6.6

Critical Marketing and Social Marketing

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community, rather than being driven by the need to maximise profit for shareholders and owners’ (BIS, 2011, p. 2).

6.5.3

Antecedents of Social Entrepreneurship

Most scholars now agree that social entrepreneurs are motivated by social goals and the desire to benefit society in some way (Peredoa and McLean, 2006). Besides this, scholars also seem to have a consensus around a few distinguishing traits and skills of a social entrepreneur. This includes among others: the courage to receive social criticism, less failure anxiety, heightened agreeableness, persistence, communication skills, trustworthiness, enhanced creativity, and a significant receptivity towards others’ feelings, which some authors refer to as empathy (Urban, 2008). Social entrepreneurs use innovation and leveraging resources to advance development of social, economic, and community (Reis and Clohesy, 2001). Mair and Noboa’s (2006) were among the first to come up with a model to explain the formation of social entrepreneurship intention. Mair and Noboa (2006) identified moral judgement, empathy, self-efficacy, and social support as antecedents of social entrepreneurship intention. Hockerts (2015) later refined Mair and Noboa’s model by validating the Social Entrepreneurial Antecedents Scale. According to Hockerts (2015) empathy, moral obligation, self-efficacy, and social support, were the factors that influenced the intention to start social entrepreneurship. This scale was later expanded to include prior experience, which refers to an individual’s experience of, or involvement in, social enterprises or organisations that expose them to various social issues (Hockerts, 2017). Research has also suggested the important role that government involvement in the form of incentives and financial support, plays in encouraging the creation of social ventures (Ghazali, et al. 2021).

6.6

Critical Marketing and Social Marketing

‘Critical marketing’ is the application of social marketing to combat the potentially harmful effects of commercial marketing. Critical marketing grew in popularity due to the economic, social, and political changes resulting in the need to reevaluate marketing theory and practice. Due to the nature of critical marketing, which seeks to apply a critical approach to the marketing discipline and influence the theory and outlook of conventional marketing practice, its discourse can be greatly aided by contributions from social marketing. Given the detriments of marketing (discussed in detail in Chap. 2), the nature of social marketing, which combines insights from both the public and commercial sectors, allows for contributions to marketing’s purpose as a tool for social good. Social marketing contributes to, and is influenced by, the critical marketing discourse. Social marketing examines the impact that commercial marketing has on

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society and uses the findings to design programmes for change and influence policymakers and industries (Hastings & Saren, 2003; Gordon, 2011). Therefore, social marketing can be used to analyse not only behavioural changes but also the social and environmental consequences of marketing activities. Social marketing’s exploration of the root causes of unhealthy behaviours in society identified marketing efforts and agencies as the main culprits. These findings are echoed across multiple industries, be it for the consumption of fast food (Kong & Zhou, 2018), alcohol (Guillou-Landreat et al., 2020), or tobacco (Almestahiri et al., 2017). Researchers have also uncovered the malevolent uses of marketing. Indeed, it has been shown that advertising messages routinely prey upon individuals’ insecurities or use positive branding and imagery while intentionally neglecting the negative repercussions of consumption. Due to these uncovered red flags, public policies and organisations generally take an extremely harsh stance against such marketing efforts, leading to an increase in punitive or discouraging laws and policies. Social marketing can therefore step in to bridge the gaps between public policy and commercial activities by acknowledging the power of marketing in influencing behaviour; providing insights and solutions for solving issues caused by marketing; negotiating aspects of public policy that will not outright hinder marketing activities while ensuring social good and stability is maintained and finally, using marketing to effect social change. On the other hand, there appears to be confusion in drawing the line between what constitutes critical marketing and social marketing, as both seem to be concepts and structural frameworks, thus hindering the creation of a single theory for both. Moreover, while social marketing has the potential to contribute to the critical marketing discourse, it is itself subject to a critical analysis. While certain social marketing practices have been criticised, the default reaction against these critiques are often reflexive and defensive in nature. To resolve this issue, some academics and practitioners have coined the term ‘critical social marketing’ to investigate how social marketing can contribute to both the critical marketing discourse and the overall field of marketing. Social marketing also has its own issues and problems, such as the potential manipulation of public and non-profit activities, the need to incorporate capitalistic activities to promote social change, and paternalism (Hidaka & Mizukoshi, 2018). As social marketing aims to change behaviours and is interventionistic in nature, paternalism—the infringement on personal freedom and autonomy with beneficial intent—is a particularly thorny issue. Social marketers must be constantly aware of the fine line between promoting good behaviour and infringing upon individual rights. Therefore, a critical perspective on social marketing is needed. Highlighting the difference between social marketing and critical marketing, Gordon (2011), came up with the term critical social marketing and conceptualised it as distinct from social marketing. It uses the critical theory-based approach to dissecting commercial marketing—into the dark or negative sides as well as looking for solutions to the problems. Gordon (2011. p. 90) defined it as ‘critical research from a marketing perspective on the impact commercial marketing has upon society,

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Applications of Social Marketing: Success, Failure, and Mixed Results

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to build the evidence base, inform upstream efforts such as advocacy, policy and regulation, and inform the development of downstream social marketing interventions’. A critical social marketing approach enables social marketers and researchers to assess commercialisation’s impact on society, as well as to generate solutions. Critical social marketing can help inform public policy and regulation, generate better practices, and effectively develop social marketing interventions. It can also enable social marketers to be critically reflexive towards social marketing approaches and behavioural interventions, especially in identifying whether there may be unintended consequences, or the goals are unrealistic.

6.7

Applications of Social Marketing: Success, Failure, and Mixed Results

Social marketing is widely applied to address many issues, ranging from environmental degradation (e.g. water reduction, energy and pesticide consumption, and recycling) to public health issues and domestic violence. However, most applications of social marketing are in the public health domain and have met with considerable success, with past cases including smoking (e.g. Truth® and Smokefree), strokes (e.g. FAST), and obesity (e.g. Change4Life). Areas of interest in social marketing differ by society. For example, most campaigns in Europe focus on environmental problems, while those in Malaysia are on smoking and obesity. The next section examines three instances of social marketing with varying levels of success, namely, the Truth® Campaign in the USA, The Indian Institute of Management’s (IIM) Family Planning and Condom Awareness Programme in India and Done 4 campus drinking norm campaign in the USA.

6.7.1

The Truth® Campaign in the USA

Truth® is the largest national youth smoking prevention campaign in the USA (Richardson et al., 2010). The original iteration of this campaign was developed by the Florida Tobacco Program and ran between 1998 and 2003. This multicomponent tobacco pilot programme was funded by an $11.3 billion settlement from five tobacco companies on smoking-related illnesses (Sly et al., 2001). Its main objective was to encourage the prevention of tobacco use via media outreach and to expose the tactics of the tobacco industry, the truth about addiction, and the social consequences of smoking. A counter-marketing brand, Truth®, was then developed to expose the truth behind the tobacco industry and the consumption of tobacco. It has significantly reduced levels of youth tobacco use and created positive changes in anti-tobacco

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attitudes (Richardson et al., 2010). Following the diminishment of the campaign in Florida, the Truth® campaign was then adopted by the Truth Initiative, a non-profit tobacco control organisation, as a nationwide initiative that largely followed the marketing messages and efforts of the Florida campaign. The campaign successfully identified the reasons behind youths’ tobacco adoption, their preferences, and sources of influence. The campaign successfully identified that tobacco consumption is mostly emotionally driven and is attractive due to its dangerous qualities. To make the Truth® brand more appealing to youths, its marketing messages were carefully designed to be non-judgemental but filled with the information necessary to empower youths to make the right decisions. The ‘SWAT’ (students working against tobacco) youth movement was thus developed. This campaign was not without its challenges. Funding was a notable issue. It was revealed that the tobacco industry spent millions of dollars on marketing efforts—far more than the annual budget for Truth® advertising. However, the programme still achieved overwhelming success, significantly reduced levels of youth tobacco use, and created positive changes in anti-tobacco attitudes (Richardson et al., 2010). This programme’s main success can be attributed to how it tailored its marketing messages to resonate clearly with the target audience and provide a message of empowerment. Moreover, the creation of the Truth® brand also enabled future campaigns to be easily identifiable. The campaign also used a myriad of advertising techniques, rallies, and made the information easily accessible to its target audience.

6.7.2

The Indian Institute of Management’s (IIM) Family Planning and Condom Awareness Programme in India

This refers to the first modern instance of social marketing in India in 1964 (Mutum et al., 2015). The IIM used a marketing model to encourage the distribution of contraceptive services (i.e. condoms) in the hope to ultimately make them regular household items. Multiple condom brands and companies were created by the government, including HLL Lifecare Limited (HLL) (formerly known as Hindustan Latex Limited), Nirodh, Zaroor, Masti, and Moods. At one point, nearly 75% of the institute’s family planning budget was used for delivering contraceptive services. Subsequently, multiple social marketing programmes were launched to raise awareness of condom use in the public. The campaign was successful in making condoms widely available and largely economic products. However, social taboos, past family planning campaigns, and a lack of accurate information on contraceptive use were identified as key obstacles to total success. The Indian government and private sector did manage to establish multiple companies that produce condoms, thus achieving their aim of making them a common product. Significant efforts were also undertaken to ensure condoms were being delivered to rural citizens. While the birth rate also decreased by 16% between 1964 and 1975 (Dholakia, 1984), this failed to meet the targets outlined by the Indian government (Mutum

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et al., 2015). The main reasons why this programme did not wholly succeed were probably because coercive policies and forced sterilisations were used. Thus, subsequent family planning programmes were viewed unfavourably by the general populace, leading to a lack of trust in the government and future programmes. The use of condoms was viewed unfavourably by males and was considered a taboo subject, leading to embarrassment when purchasing them. As certain condom brands were sold for very low prices, retailers were disincentivised to stock and sell condoms. There was also insufficient proper training on contraceptive use for channel intermediaries. The key takeaway from this case is that, for a campaign to be successful, a positive message and image are paramount to encouraging behaviour. Furthermore, accessibility in terms of both products and knowledge is also key to ensuring product sustainability.

6.7.3

Done 4 Campus Drinking Norm Campaign in the USA

The Done 4 campaign was another social marketing campaign organised at a university in the Southwestern USA (Russell et al., 2005). The campaign’s primary goal was to tackle campus drinking behaviour among students and was held over two semesters. Unfortunately, the campaign was largely unsuccessful in both its advertising efforts and subsequent behavioural changes. The campaign provided no specific methods for the reduction of campus drinking or its replacement with other sources of entertainment. Only awareness-related marketing activities were conducted. While poorly constructed advertising was blamed as the main reason behind the campaign’s failure, further analysis revealed other factors. First and foremost, the campaign was solely focused on the social norms behind campus drinking. However, campus drinking can also result from stress or lifestyle factors (Htet et al., 2020). In addition, most of the communication was one-sided, and there was lack of engagement between the social marketeers and the target audience due to the primary goal of increasing awareness. There was also a lack of sustainable accessibility to obtain subsequent information or support for students who wished to stop (or reduce) their drinking. Moreover, insufficient research was conducted prior to the execution of the campaign, as the social marketers only consulted on the advertising content, but not on other outreach methods or overall strategy development.

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Current Challenges and Opportunities of Social Marketing

Given the myriad issues that social marketing tackles (from healthcare to environmental pollution), it would be fair to argue that social marketing has its own unique set of hurdles to overcome. However, we perceive the same barriers and challenges of social marketing as opportunities for growth once handled correctly. Therefore, in the following, we attempt to address and elaborate on some challenges and opportunities unique to social marketers.

6.8.1

Addressing Equity and over-Fixation on Individual Behaviour

Social marketing’s role is therefore to improve society’s ability to address inequality and injustice through the conscious application of marketing. Equity issues differ between both countries and communities. For example, less-developed countries may be more concerned about reducing income disparities, whereas developed countries may foreground health and substance-abuse issues. The identification of the key causes of said equity issues should be one of the starting points of social marketers—indeed, it would be vital to determine whether the issues result from a lack of knowledge, lack of resources, a different sociocultural perspective, or inherent flaws in the local systems. One reason why social marketing can fail is the assumption that the problem always stems from the individual. Indeed, Gordon (2011) argued that habituated, unhealthy individual behaviour is the root cause of problems to be addressed by social marketing. Social marketers cannot be overly fixated on the behaviour of individuals, as such behaviours may result from external forces beyond their control. These problems might not necessarily stem from downstream behaviour, but rather from structural, upstream causes. Failures easily occur when the system is not viewed holistically or when structural barriers are not factored into the social marketing planning process (Rundle-Thiele et al., 2019). Therefore, social marketers must take a wider outlook, and consider the structural limitations and barriers to properly address equity issues. They must cooperate not only with individuals but also with policymakers and other upstream individuals to bring about effective behavioural changes in their target audiences.

6.8.2

Success of Social Networks

As mentioned earlier, the success of social marketing is highly dependent on how widely diffused and adopted the desired behaviour is by the target audience.

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Current Challenges and Opportunities of Social Marketing

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Therefore, the role of social networks extends the social marketing concept beyond the individual to its networks and communities. Effective social marketing should make effective use of an individual’s social networks and create more opportunities for the desired behaviour to spread. The widespread use of social media is also a critical component in how social marketing promotes products. Social media can serve as an extended, or even primary, channel to traditional media efforts, as audiences can revisit past communications and advocate causes more effectively (Shawky et al., 2019). Social marketers must be able to use the right social media channels in disseminating knowledge and engage with the target audience, as people visit different social media sites for various purposes (Huang et al., 2019). Being able to match and incorporate the right social media channel based on the message content improves the effectiveness of the message and creates a synergic combination between the message and platform.

6.8.3

Sustainability and Scale

A desired behaviour or social marketing programme’s degree of sustainability can be of the utmost importance, as the latter are often long-term projects designed to permanently alter an individual’s behaviour. Sustainability is, therefore, an important component of social marketing—this includes how a social marketing programme can acquire funding from various sources, as well as if the proposed behaviour can persist in the long run. The business model of social marketing should not be rigid. Instead, it should be flexible, responsive, and adaptable to various conditions in the community where the programme is being run. Being able to create shared value of a social marketing programme among the local community and allow individuals to act as advocates helps perpetuates the longevity and awareness of a message (Shawky et al., 2019). Furthermore, sustainability in the social marketing context also includes the proposed solution’s viability for solving the issue. If possible, social marketers should strive to create solutions that address the root of the issue, not just provide a temporary fix. In conjunction with sustainability is the problem of scale. The core tenet of social marketing is to alter the behaviour of not only individuals but also groups and societies. Social marketing programmes should, when needed, be able to scale up to higher levels of efficacy and effectiveness to reach larger communities. Therefore, effective social marketing should be able ‘to apply the evidence-base of diffusion research to social marketing programs to both spread adoption and increase the scale of successful programs’ (Lefebvre, 2011). Social marketers, researchers, and funders should therefore consider whether the proposed programmes are replicable on a communal or national level, or whether they are only viable on a smaller scale or controlled experimental environment.

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Another problem of scale is the discrepancy between the variety of solutions and the effectiveness of the programmes, which boils down to the problem of dissemination between both the solution and the issue. The target audience must also be able to easily gain access to the product or the knowledge needed for the social marketing campaign to be effective.

6.8.4

Strategic Planning and Design Issues

Throughout the design of a social marketing programme, designers and planners should always be conscious of the main objective of social marketing—to change behaviour. The main goal of social marketing campaigns should not be limited to raising awareness, but rather to inciting behavioural changes in their target audiences (Cook et al., 2021). Being able to educate and raise awareness can indeed be a milestone, yet exclusively focusing on awareness deviates from the core objective of a social marketing campaign. Therefore, social marketers must properly communicate with their stakeholders and decision makers to ensure that there is no miscommunication in the social marketing programme. Social marketers should also ensure that the social marketing mix is well integrated and complemented with the use of behavioural levers. The goals of decision makers, upper management, and social marketers must align with the desired behavioural change and be sufficiently flexible to be adaptable to the relevant social marketing needs. Social marketing programmes need to be driven by societal needs and issues, not by corporate agendas. Therefore, before designing a programme, its social marketing goals should be clearly elucidated. Cook, Lynes, and Fries (2021) warned about the need for social marketers to be wary of limiting their strategies, theories, and tactics to ones that only fall within the boundaries of what social marketing is ‘supposed’ to cover. Successful programmes should incorporate and apply different areas, including commercial marketing, behavioural economics, social marketing, UX/UI design, and more. To prevent the issue of unclear or too many target behaviours, social marketers should also limit their objectives and prevent decision fatigue. The SMART approach—specific, measurable, attainable, relevant, and timely—is a useful tool for setting quantifiable goals and monitoring actual progress.

6.8.5

Data Collection Difficulties

In contrast to conventional marketing, where financial metrics can be easily used to gauge a campaign or programme’s success, it is far more difficult to determine a social marketing programme’s degree of success. As success in social marketing refers to a change of behaviour, the nature of behavioural data (being of poorer quality) is more difficult to obtain and measure objectively (Kumar et al., 2021).

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Chapter Summary

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Such data must be collected with the individuals’ consent and approval, which gives rise to ethical issues on what data can be collected and who can handle the data. Certain social marketing programmes deal with more sensitive issues, such as mental health, substance addiction, or even abusive behaviour. Therefore, as the data generated is highly sensitive and personal, conflicts may arise on their disclosure to certain organisations. Furthermore, as most of the data are usually self-reported, they might not be objectively true or could be easily tampered with. This causes difficulties in ascertaining the veracity of the collected data. Data collection is also an issue as behavioural changes (and their sustainability) are typically only obvious after long periods of time, which presents the issue of how long is long enough. Therefore, greater efforts are needed to gather behavioural data continually, which in turn carries higher costs. The need to gather long-term data might also be challenging in providing evidence of whether a programme is working or not, as certain stakeholders and donors might demand evidence in a shorter timeframe (Veríssimo et al., 2018). In addition, as certain social marketing programmes are meant to solve issues in rural or remote areas, this adds another level of difficulty in accessing the community or environment impacted by the programme.

6.9

Chapter Summary

Social marketing adopts and adapts marketing concepts and techniques to enact beneficial social change. It bridges the gap between the private and the welfare/ public sectors. While social marketing uses several principles and techniques from commercial marketing, its primary focus is to change social behaviour rather than to increase profitability. An effective social marketing campaign is one which is sustainable over long periods, has constant engagement with its target audience, and is effective in inducing behavioural change. Social marketing also uses marketing insights and know-how to counter the effects of commercial marketing. Moreover, it has made significant contributions to public health and critical marketing. Social marketing may raise ethical challenges related to the ideas promoted and the techniques employed. Social marketing also has its own challenges distinct from those of commercial marketing—especially in terms of its sustainability and funding. A social marketing programme should not only be concerned with the feasibility of its implementation but also on the potential challenges and barriers to data collection and verification. In short, social marketers should factor what metrics constitute a success or failure, how the data can be obtained and verified, and how much data is needed.

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Chapter 7

Evolving Consumer Representations and Roles

7.1

VSCO Girls and the Environment

The VSCO girls subculture emerged around 2015 and gained significant popularity throughout the following years. The subgroup is composed predominantly of teenage girls who embraced a specific aesthetic and lifestyle, characterised by their interest in similar brands as well as some phrases and mannerisms. The term VSCO is derived from the photo editing and sharing app VSCO, which is known for its filters that give images a soft, vintage-like appearance. While VSCO girls are often associated with fashion choices (such as wearing scrunchies) and specific brands (like Hydro Flask and Birkenstock sandals), their commitment to environmentalism and sustainability is a significant aspect of their identity (Ritschel, 2020). They are known for promoting and practicing eco-friendly practices, such as advocating for reusable products including metal straws, and emphasising the importance of conservation. They actively discourage the use of single-use plastics and encourage others to adopt more sustainable alternatives, often on social media. This advocacy for reusable products has gained attention and has influenced a broader cultural shift towards reducing plastic consumption. This subculture has led to popularisation of terms like ‘Save the Turtles’ and ‘Save the Earth’. Another aspect of the VSCO girl lifestyle is their love for thrifting and vintage fashion. Thrifting is an alternative form of consumption, which is discussed in more detail later in this chapter. By shopping at thrift (second-hand) stores, they promote a more sustainable approach to fashion by reusing products instead of supporting fast fashion trends. This aligns with their values of reducing waste and embracing a more conscious approach to consumerism. Additionally, VSCO girls are often associated with an appreciation for nature and outdoor activities. They often showcase their connection to the environment via their photographs and social media posts. Like many trends and subcultures, the popularity and visibility of the VSCO girl subculture have diminished since its peak in 2019. However, it had a significant © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 D. S. Mutum, E. M. Ghazali, Consumers, Society and Marketing, CSR, Sustainability, Ethics & Governance, https://doi.org/10.1007/978-3-031-39359-4_7

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impact on raising awareness about environmental issues, particularly among young people. Their influence prompted discussions about sustainability and sparked a positive change in behaviour and mindset regarding environmental conservation. It is also important to note that while VSCO girls have played a role in popularising sustainable practices among the general population, many VSCO girls also faced criticisms for being superficial (Reaume, 2019). Nevertheless, the impact of the VSCO girl movement in raising awareness about environmental concerns cannot be denied.

7.2

Introduction

The view of consumers as simply sources of profit has shifted due to the empowerment of consumers and the realisation of the important role they play in the marketplace. According to Kaufmann et al. (2012), it is not apparent that the consumer has evolved from a passive marketing subject, resulting from stimulation of mere commercial transactions, to being active and interactive. As explored in previous chapters, the importance and power of the average consumer in modern society is much higher than what it once was. Consumers can now influence policies and the way businesses operate within the marketplace, as well as both guide and start consumption trends. Technological advances have also given consumers greater connectivity, which in turn results in increased social and bargaining strength and tilting the balance of consumer–firm power more to their advantage (Kucuk, 2009; Wang et al., 2011; Akhavannasab et al., 2018; Li, 2019). Brands, organisations, and governments are also re-examining the roles and identities of consumers within the marketplace. Consumers have evolved to become more active marketplace participants who are more willing to exert their power to achieve certain goals for the common good. More consumers now see themselves as consumer citizens and are willing to use consumerism practices to exert influences outside the marketplace (Kyroglou & Henn, 2022). Not only are consumers more empowered to perform their citizenship roles effectively, but unethical marketing practices and anti-materialism sentiments have also caused society to become more jaded and antagonistic towards business organisations and companies.

7.3

Consumers Consume What they Are

The awareness of both unethical marketing practices and the negative impact of marketing’s activities on society and the environment has altered the way consumers consume items. These consumers intend to consume ethically and sustainably and mitigate the unwanted negative activities of both marketing and consumption (Moisander, 2007; Deschamps et al., 2017; Chuah et al., 2020). These consumers

7.3

Consumers Consume What they Are

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have also spurred brands to become more ethical and sustainable in their business practices. Sustainability practices and ethical standards are now a must for companies to operate within the marketplace, and firms must show evidence that they are addressing consumers’ marketing concerns (Heath & Chatzidakis, 2012). As consumers become aware that they are what they consume, and, conversely, that consumers consume what they are (Schau, 2000), consumers will behave and interact with marketplace forces differently depending on their dispositions. Marketing and consumerism have shifted and changed, from the focus of consumer spending to fulfil basic needs, to the glamorised hue of consumption after the Second World War, as well as the current issues on sustainable consumption and antimaterialism movements. This shift in consumption perceptions and goals, in which consumption has developed from being a process where resources are exhausted to fuel human desire, to one where consumerism can be a moral doctrine, an ideology for conspicuous consumption, an economic ideology for global development, a political ideology, or a social movement to promote and protect consumers’ rights (Gabriel & Lang, 2006), has also led to a shift in consumers’ power, identity, and roles within the marketplace. As consumers’ identities and self-images change, so too do their manner of consumption and perceptions of marketing. This also applies to consumers who are critical towards marketing practices and activities. While there are those who believe marketing can be an effective tool in ameliorating social issues and addressing societal concerns (for further details, see Chap. 6), there are also consumers who seek to break free from the shackles of society or cultural moulds in the form of consumer rebellion and consumer activism. As Cova and Dalli (2009), pointed out, customers create their identities despite a resistant/antagonist stance. In other words, they resist the market, may refuse to consume or otherwise signalling their refusal by consuming differently. Indeed, this resistance to traditional marketing practices explains consumers’ willingness to participate in the market process, even if it is in critical and transformative ways.

7.3.1

Ethical Consumption Versus Sustainable Consumption Versus Green Consumption

Ethical and sustainable consumption is a growing market force for both ethical niches and mainstream markets. We often see these terms interchangeably. It is important to note that these concepts are different. Ethical consumption has been defined as ‘the conscious and deliberate decision to make certain consumption choices due to personal moral beliefs and values’ (Crane & Matten, 2004: 290). In other words, ethical consumption is consistent with ethical principles and rules (Toti and Moulins, 2016). On the other hand, sustainable consumption refers to ‘patterns of consumption that satisfy basic needs, offer humans the freedom to develop their

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potential, and are replicable across the whole globe without compromising the Earth’s carrying capacity’ (Hertwich, 2005: 4673). Ethical consumption is much more extensive in scope. Toti and Moulins (2016) see sustainable consumption as a part of ethical consumption, even though the former concept does not necessarily consider ethical concerns. According to Rex (2008), some sustainable consumption behaviours are not necessarily ethical behaviours. For example, that point out that consumers may boycott certain brands because of use of labour issues and that would be an ethical rather than a sustainable choice. There are several lifestyle movements that will come under sustainable consumption. This includes the tiny house movement, where many tiny house owners cite sustainability for such a lifestyle (Ford & Gomez-Lanier, 2017). Another lifestyle movement is the KonMari Method, which involves decluttering and tidying up, developed by Marie Kondo (Eike, et al., 2022). It is seen as a minimalist sustainable lifestyle choice for consumers. On the other hand, Laroche et al. (2001, p. 508) defined ‘green’ consumers as consumers who were willing to pay a higher price for green products. These consumers are motivated by strong environmental values and attitudes (Schaefer 2005). Dagher and Itani (2012) suggest that green purchasing is an effort by consumers to protect the environment while also believing that they will receive other direct benefits. According to Mostafa (2007), green purchasing behaviour is the purchase of products that are recyclable or not harmful to the environment. Similarly, according to Dagher and Itani (2012), green purchasing is an effort by consumers to protect the environment, while also believing that they will receive other direct benefits Mutum et al. (2021) showed that the relationship between pro-environmental self-identity and green purchasing behaviour is mediated by emotional, epistemic, social, and health values. They showed that communicating green product advantages and strengthening pro-environmental self-identity are linked to green purchase behaviour.

7.4

Consumer Activism

A consumer may play many roles and possess multiple identities depending on their state of empowerment, personal traits, and the marketplace they are in. While we have extensively explored some identities in previous chapters (such as consumer (dis)empowerment), we now turn to consumer activism, consumer rebellion, and consumer resistance. Consumer activism is undertaken on behalf of consumers to assert their own rights and is based on the understanding of consumerism and activism. Indeed, consumerism has been defined as ‘a society in which many people formulate their goals in life partly through acquiring goods that they clearly do not need for subsistence or for traditional display . . . (and) appears as mentality, behavioural motivation, and individual action, as well as commercial institutions and a defining feature of society at large’ (Stearns, 2001).

7.4

Consumer Activism

153

While consumerism itself might not be evil, the constant goal and push for material acquisition and lack of consumer protection are problematic points which spur consumer activists to action. Consumer activism movements can also be used to push for political reforms, such as the abolition of slavery (Glickman, 2004), as well as potentially spark nationwide revolutions, such as the Boston Tea Party incident— credited as being one of the major sparks which ignited the American Revolution (Lightfoot, 2019). The goals of consumer activism include making publicly available goods and services safer, of better quality, environmentally friendly, and more readily available. Consumer activism is also a movement which is ‘. . . dynamic and constructive . . . often championing an even more ambitious potential on its behalf’ (Burgess, 2001). As a concept, activism includes the experience, actors, resources, ideology, and vision enabling an action to take place. Consumer activism also covers a wide range of activities, from shopping for fair-trade products to boycotts or buycotts. Additionally, consumer activism movements are also instrumental in both market or tactical disruption, which either hurts or supports the revenue of an organisation through altering purchasing behaviour or using media to damage or support a brand (King, 2011). Consumer activism is not a new phenomenon. Rather, it has taken on many forms throughout its long history and development. Consumer activists use social movements to generate influence in the marketplace by using extra-institutional tactics that are subversive or disruptive in nature (King, 2011). These tactics are used to disrupt the resources of target organisations and pressure them into either paying greater attention to activists’ claims or conceding to their demands. Some examples of social movements include boycotts, campaigns, legal cases, education, individual and collective acts, whistleblowing, and direct action.

7.4.1

Buycotting

Consumer movements are initiated for various reasons and can be organisationspecific or industry-wide in scale. Consumer activism can either be positive or negative. Positive ethical consumerism is a method through which consumers ‘reward’ companies they see to be engaging in ethical and sustainable practices. Positive consumerism, also known as buycotting, is the deliberate active consumption of a particular product or service as a political statement (Kyroglou & Henn, 2022). Buycotting is an alternative to boycotts which favours businesses supporting activists’ movements. Buycotting can be in the form of buying ethically sourced goods, organic produce, animal cruelty-free products, recycled products, or any goods and services from brands and companies that endorse environmentally- and socially-friendly values (Pickard, 2019).

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Boycotting

On the other hand, consumer activism can also be negative, which is usually manifested in boycotting behaviour. Boycotting behaviour is conducted in rejection of unethical business practices and products to punish or exert pressure on businesses (Pickard, 2019). Boycotting is one of the most common and widely used consumer activism movements, with the Boston Tea Party, being one of the first recorded examples (Lightfoot, 2019). It is important to point out that not all consumer activism or movements are conducted in the name of consumer interests. For example, the anti-slavery movement was for the benefit of non-consumer groups (i.e. slaves) (Glickman, 2004). Moreover, consumer activism also occurs due to a myriad of reasons, not only due to business products, services, or misconduct. The perceived political stance of a business is also a potential reason for consumer activism (Chen, 2020).

7.4.3

Naderism

Issues on consumer safety and the monopoly of large firms gave rise to the Naderism movement (Cox, 2005; Lekakis, 2012). This movement was sparked by the findings of Ralph Nader, who proposed the need for consumer and grassroot movements, as well as multiple governmental reforms, to combat the unrestrained interaction of competitive forces (M. Green & Nader, 1973). Further to unrestrained competition, decreasing public confidence towards public and social institutions also spurred the Naderism movement, which introduced the concept of consumer advocacy while focusing on the consumer–product relationship (Burgess, 2001). Consumer advocacy was also the foremost priority of this movement. ‘Instead of hierarchical flows of information on how to get more bang for your buck, Naderism emphasised grassroots approaches to end the hazardous (or potentially hazardous) character of unregulated consumer goods (Gunderson, 2014).

7.4.4

Consumer Activism and Social Movements

Alongside the twentieth-century wave of consumer activism, which focused on consumers’ rights, the socio-political landscape in the USA combined consumer activism with social movements. The civil rights movement involved the extensive organisation of consumer activism, including the Montgomery bus boycotts associated with Rosa Parks, the boycotts of companies refusing to hire African Americans, boycotts of entertainment venues and destinations, as well as ‘buy black’ buycotts to encourage sales of African American-owned companies and co-ops (Glickman, 2009; Carreiro, 2018). Consumer activism was instrumental in forcing companies

7.4

Consumer Activism

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and the US government to recognise that African Americans were a significant group in terms of buying power. However, it is worth noting that consumer activism and consumption are not specific to the USA as a means of political struggle. In the early twentieth century, consumption was a key strategy of Chinese and Korean nationalists in their struggle against the Japanese. The Indian Swadeshi movement politicised homespun clothing for generations of Indian nationalists inspired by Mahatma Gandhi. After the Second World War, countries like Australia, New Zealand, and Japan, launched their own consumer groups after World War II. The Indian Association of Consumers was founded in 1956, well before many organisations of a similar nature in Europe (Hilton, 2007). Similar movements also sprang up in Southeast Asia, including in the Philippines, Malaysia, Indonesia, and Singapore. The goals of these movements were a combination of calling for consumer protection measures, political support, and economic revitalisation and stimulation (Hilton, 2007). Another successful instance of consumer activism was the nationwide boycott of table grapes in the USA involving United Farm Workers (Lightfoot, 2019). This boycott led to successful negotiations between farmworkers and farm owners, and similar boycotts were also organised in the 1970s and 1980s (Anderson, 2015; Glickman, 2009). While consumer protection and advocacy issues remain, the goals of consumer activists in the late twentieth and twenty-first centuries have since changed to become loftier in nature. Our modern era can be characterised by ‘alternative’, political, and ethical consumption. Consumption today is not simply seen as an act of buying and selling, it is also considered a reflection of one’s political and moral ideologies. Unlike previous waves of activism which focused on consumers’ rights or increasing marketplace safety, this new wave of activism swings towards ‘postindustrial values (e.g., environmentalism) and recognition-based identity politics (e.g., sexual orientation), along with concerns about the social and economic impacts of globalization’ (Johnston, 2008). Consumers’ consumption concerns extend far beyond the utility or aesthetics of the product itself, but also to the product’s supply chain, the company’s ethical behaviour and corporate social responsibility (CSR), as well as the company’s stances on social issues (Littler, 2008). Ethical consumerism and consumption are characterised by ‘consumer awareness of animal welfare, environmental degradation and human working conditions and trade justice’ (Manke & Gollnhofer, 2020). Due to the alarming rate of environmental crises, consumers are keen to consume ethical products that are just and environmentally friendly (Gunderson, 2014). Consumers have become increasingly aware and concerned about the environmental and social costs of consumption and production, which gave rise to organic, green, or fair-trade products (Johnston, 2008; Adams & Raisborough, 2010; Gunderson, 2014; LeyvaHernández et al., 2021). With the rise of anti-consumption activism also comes the increase in anti-corporate sentiments, as consumers are becoming increasingly critical of corporate power in the global economy and are challenging the legitimacy of international corporations in the global marketplace. At the same time, consumer activists are paying more attention to companies that claim to be ‘green’ to ensure

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that these companies are ‘walking the talk’ (Pope & Wæraas, 2016; Szabo & Webster, 2021; Sailer et al., 2022).

7.4.5

Political Consumerism

Besides ethical consumerism, political consumerism is also on the rise. Political consumerism, which is highly linked to consumer citizenship, concerns the relationship between everyday consumption and individuals’ civic values, such as citizen’s rights and equity (Kyroglou & Henn, 2022). It is also defined as ‘. . . consumer choice of producers and products based on attitudes and values of personal and family well-being as well as ethical or political assessment of business and government practice (Wirt et al., 2017), and is usually expressed via boycotts or buycotts. Consumers are now political agents with the ability to collectively influence political decisions via individual consumption patterns (Kyroglou & Henn, 2017). Political consumerists view their consumption behaviours as opportunities to participate in civic discussions due to their right to ‘vote with their dollars’ (Schwarzkopf, 2011).

7.5

Forms of Consumer Activism

Consumer activism can occur under several forms and methods. Consumer activism need not be physical, as online media and activism are also much favoured by consumers (Minocher, 2019). As opposed to examining certain types of consumer activism based on boycotts/buycotts or online/offline consumer activism, or the reasons behind consumer activism, consumer activism can be grouped under avoidance, exit, support, voice, twist marketing, legal actions, and illegal actions. Avoidance refers to when activists choose to avoid consuming certain products or services as a sign of protest. Avoidance does not necessarily mean that the consumer entirely stops consuming a product, but rather that they choose a different alternative among the existing options in the market. Moreover, consumers who adopt this strategy do not necessarily change their consumption habits drastically, but instead choose to consume more ethical alternatives. For example, consumers who choose to buy more organic or fair-trade products are those who opt for the avoidance strategy. When viewed from a different angle, consumers’ action of consuming more ethical alternatives that align with their personal morality and ethics is also a method for consumers to vote with their wallets. Avoidance strategies might incur higher costs on consumers as ethical or organic alternatives are typically more expensive (refer to Chaps. 3 and 4). Exit is a more extreme approach than avoidance. Indeed, it is hard-line in the sense that consumers who choose to exit will need to change far more of their consumption strategies. Consumer activism which falls under this category involves

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deliberately organising movements against certain companies, social norms, or marketplace practices. Boycott strategies come under this approach, as boycotters not only choose to not consume certain products or services, but they also encourage others not to do so. While boycotting is a large-scale exit strategy on a collective level, consumers can individually exit from the marketplace by altering their lifestyles and consumption patterns. For example, consumers who adopt a minimalist lifestyle can be seen as exiting from the marketplace in protest of the modern focus on materialism and consumerism (Par, 2021). Another example is the decluttering or minimalist movement, which is viewed as a method for consumers to escape from typical marketplace ideologies and marketing forces (Manke & Gollnhofer, 2020). Supportive strategies, unlike the more antagonistic avoidance or exit ones, involve showing solidarity with companies. Buycotts are a form of encouragement from consumers towards companies as a show of support for their political stances, ethics, or business practices. Buycotts can also empower brands and organisations to continue their support of popular causes. The reasons behind supportive strategies might not necessarily be due to the political or social causes the brand is backing; indeed, consumers may also use buycotts in retaliation to those brands whom they are fighting against. As opposed to, or in addition to, boycotting certain brands, consumers may use buycott strategies to instead support the brand’s competition. Therefore, prior to aligning with, or showing support to, certain political issues, firms that are considering using boycott strategies against their competitors should first consider the potential repercussions as they could backfire by empowering the competition (Neureiter & Bhattacharya, 2021). Voice involves complaints, word-of-mouth strategies (violent or non-violent), protests, and (online or offline) reviews. Complaining behaviour is also seen as a form of consumer advocacy with a preventive focus, as people are motivated to altruistically prevent others from experiencing similar negative marketplace experiences, as well as to seek punitive action and compensation (Jayasimha & Billore, 2016). Unlike the previous three strategies—which use consumption strategies to exert pressure in the marketplace—voice approaches are more focused on ensuring that the concerns of consumers or societal members are clearly heard by the relevant organisations. Voice strategies are instrumental in ensuring that consumer movements gain wider attention and can attract significant negative or positive media attention to a brand (Minocher, 2019). Due to media advances, it is now much easier for consumers to use voice strategies as they can easily connect with like-minded or aggrieved consumers online. The Internet is a highly important tool for modern consumer activist and has given rise to online consumer activism. In fact, the Internet is more than a mere tool; it has significantly changed the balance of power between consumers and producers (Lightfoot, 2019). Online activism provides consumers new tactics with which to achieve their goals, including either traditional online technologies (emails and websites), social media platforms (Facebook, Twitter etc.), or a mix of both.

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These technologies are instrumental in terms of information diffusion, amplifying consumer voices, and attracting media attention (Treré & Yu, 2021). However, online tools can be hindered by government or media control, or businesses employing netizens to disparage the credibility of such movements. Examples of online activism include using hashtags to increase online awareness and reach as well as ‘clicktivism’ (organising and supporting social actions online) While voice strategies are useful on their own, their effectiveness in advocating for consumer and social issues can be greatly enhanced by combining them with other consumer movement strategies. Twist marketing refers to when consumer activists employ marketing strategies and methods to oppose firms and social movements. Ad parodies, spoofing, and hijacked advertising are some of the methods whereby marketing tools are used to ‘fight back’ against the negative influences of marketing and consumption. Ad parodies and twisted advertising strategies are usually used to generate negative sentiments towards brands and businesses. Compared to parodies, hijacked ads are especially dangerous to brands as ‘most viewers of an ad parody are likely to identify a third party as manipulators of an original ad, it is possible that some viewers of a hijacked ad may be unable to correctly recognise when a hijacked ad is indeed hijacked’ (Thota & Villarreal, 2020). Spoof advertisements and parodies, which make fun of the original ads, are also effective tools in reducing the purchase and behavioural intention of consumers (Muralidharan, 2016). Legal action is often taken when consumer groups and movements are deemed insufficient for effecting change. Regulatory agencies and legal action are also effective tools in consumer movements. Regulatory institutions are especially important in ensuring consumers’ rights are properly protected. Consumer activists who seek to hold companies accountable may choose to address their complaints towards government agencies and take civil action—especially when they feel provoked by marketing content and material (Crosier & Erdogan, 2001). Activists might also use public pressure and representations to collaborate with governments in establishing legal standards and regulations to safeguard consumer rights. As citizen rights and social organisation are the social and political underpinning of market institutions, the sovereign consumer must be able to organise collective action and develop a public mind to affect state policymaking and hold the state accountable (Wahn, 2019). Illegal action may be taken by activists willing to consider more drastic and illegal measures. One growing sphere of consumer activism is cyberactivism. It can arise whenever there is a failed expectation and may or may not be linked with criminal intent. Cyberactivists are groups of individuals who hack organisations to obtain data that might cripple the organisation or expose any hidden unsavoury business practices (Illia, 2003). Further to hacking, cyberactivism can also take the form of domain squatting (re-routing a company website’s traffic to another website critical of the company) or hacktivism (political hacking leading to Internet-based civil disobedience). Advertising hacking is another example of cyberactivism, hackers replace corporate

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advertising channels with spoof ads. Hijacked ads are considered illegal as the original ad imagery is obtained and manipulated without the knowledge or consent of its legal owners and creators (Schrock, 2016). While these hackers typically have good intentions, their actions are usually in transgression of established legal boundaries and are thus mostly frowned upon by both states and businesses (Schrock, 2016). Some activists are even willing to go one step further by destroying company facilities. These activists draw mixed reactions from the public, as their actions are economically damaging to business communities (Sage, 2022). However, this is not to say that their actions never garner widespread public support. For example, in 2021, pro-Palestinian activists occupied a drone factory owned by an Israeli company in Leicester, UK. They were supported by more than 100 protesters (Smallman, 2021).

7.6

Consumer Resistance

One of the first definitions of consumer resistance can be found in an article by Penaloza and Price (1993), who described the term as ‘the way in which individuals or groups practice a strategy of appropriation in response to structures of domination’. Resistance can be due to counter-cultural attitudes, behaviours, and questions regarding the capitalist system, as well as the desire to resist oppressive marketplace forces and reduce consumption. It is also formed upon four constructs: collective vs. individual, reformist vs. radicals, internal vs. external to market institutions, and offers vs. against signs from firms. Expressions of consumer resistance are manifested in a ‘continuum’ of adverse behaviours and activities (Fournier, 1998). These range from avoidance to minimisation (downshifting, coping) to active rebellion (boycotting, exiting, complaining behaviour) with the main differing factor being the intensity of the resistance. Consumer resistance can also refer to the voluntary opposition to marketing activities or corporations that leads consumers to engage in a variety of anticonsumption actions (Lee et al., 2009). These can arise due to feelings of dissatisfaction, organisational disidentification, and self-concept incongruity. Consumer resistance behaviour can also result in the fragmentation of lifestyle and consumption subcultures, or the collective actions of individuals to attain consumption goals. Nepomuceno et al. (2017) broadly defined consumer resistance as consumers’ sense of opposition towards consumption, marketing, and corporations. It includes anticonsumption and vengeful behaviour. Both behaviours could stem from consumers having had negative experiences with a brand, as well as personal and societal reasons.

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Consumer Revenge

On the other hand, consumer revenge is a more aggressive form of resistance, whereby consumers expressively voice their dissatisfaction towards companies using actions designed to hurt a firm. Consumers harbour feelings of revenge when they feel unfairly treated and betrayed by firms, as well as experience large magnitudes of loss and inconveniences. While more loyal consumers are more amenable, they also hold longer grudgers due to their having more personal relationships with the companies prior to experiencing feelings of failure (Grégoire & Fisher, 2008). According to Portwood-Stacer (2012), individual anti-consumption anarchists refuse to consume things that many consider features of daily life, from areas of personal hygiene, veganism, buying automobiles, and DIY movements. These anarchist consumers adopt consumer resistance and anti-consumption behaviour for a multitude of reasons. These can be personal, moral, activist, identificatory, or social. If it is due to personal reasons, this involves a conscious rejection of consumerism to resist being personally or ideologically manipulated, and their own self-image of leading more enjoyable, liberated lives. Moral motivations involve consumers believing that, by reducing their demand for goods, they are acting with integrity congruent with their moral beliefs through their avoidance of widespread corporate immorality. An activist motivation refers to the belief that, to influence others to effect a change in their current conditions, they must prove the legitimacy of their alternative lifestyle and show that is a viable living model for society. Identificatory motivations, on the other hand, involve the adoption of anti-consumption behaviour in accordance with their peers, and to identify with a certain subculture or consumer movement. Finally, socially motivated individuals practise anti-consumption behaviours to achieve solidarity among other participants and reinforce their own affinity within a community to achieve a sense of social cohesion. Their individual tastes are also changed or revised by the political consciousness of the group to which they identify.

7.6.2

Subvertising

Other forms of consumer resistance can include using objects distinctly different from those assigned to them by manufacturers and merchandisers to rebel against the authority of the producers. Consumer activists can also attempt to destroy the appeals of certain brands through subvertising and other subversive methods. Subversive behaviours are often linked to consumer contempt against villains (corporations) and are meant to deliberately counter or impede the marketing efforts of organisations (Wilson et al., 2022).

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Lower subversion efforts are usually individual-based movements, such as passive consumption resistance, the avoidance of data collection, leaving false product reviews, or avoiding advertisements using ad blockers. On the other hand, higher subversion efforts are usually collective, and deliberately intend to harm brands and companies, such as participating in collective boycotting, consumer brand sabotage, manipulating reward schemes, unauthorised uploads/downloads, or subvertising. Subvertising is used to express ‘antagonistic or alternative messages by subverting symbols and codes embedded in institutional networks, whether they are brands, corporations’ (Duarte Melo & Balonas, 2019). Examples of subvertising include advertisement hacking or spoofing ads, where the intent is to redirect viewers from the intended marketing message to awareness on consumer activism issues and messages. These subvertising efforts and other consumer-generated advertisements are conducted by culture jammers, who belong to the culture-jamming movement of consumerist subversion and disruption (Carducci, 2006). However, not all anticonsumption behaviour or consumer resistance is subversive, as certain behaviours are primarily motivated by personal needs or desires.

7.6.3

Counterculture and Rebellious Consumption

Consumer resistance and rebellion may also be motivated by the desire to revolt against existing social norms rather than against marketing-related issues. These consumers are not rebelling against the use or presence of commodities; rather, they are using commodities to protest towards the culture they are in, express their own individuality, or to show solidarity with other social movements. This movement of consumer resistance and activism is also strongly linked to countercultures and rebellious consumption practices in the marketplace, where individual lifestyle or consumption patterns are at odds with mainstream culture. Counterculture can be defined as a ‘coherent system of norms and values that not only differ from those of the dominant system (where this and nothing else is the case we speak of subcultures) but also comprise at least one norm or value that calls for commitment to cultural change, that is to a transformation of the dominant system of norms and values’ (Dessaur et al., 1975). It can also be defined as ‘a fundamental transvaluation of ethics, alternate lifestyles, and transformations of consciousness’ (Langman, 1971) or ‘an active critique or transformation of the existing social, scientific or aesthetic paradigm’ (Eco, 1994). Counterculture is mainly driven by cultural, and morality shifts in society. Indeed, as Shafranyosh (2018) so aptly put it: Counterculture is a kind of antidote, dose of adrenaline in the body of the dominant culture, tablet that does not allow the culture to stay in place, to get into a state of stagnation, the state of self-admiration and thus of self-repetition. Counterculture is always a challenge, negation, denial, on the verge of denying itself, it examines critical states, states reaching the limit in all forms, in all possible situations in time and space and consciousness, whereas, basic culture tends to the reasonable correlation and “golden” middle.

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One of the most prominent counterculture movements was the Hippie movement in the 1960s to mid-1970s. The 1960s and 1970s were a period of mass upheaval and a redefining moment for American society, which was then experiencing such turbulent international incidents as the Vietnam War. As ordinary citizens were growing increasingly critical towards the government and formal institutions, public discourse veered towards making sense of drugs, sexual identities and gender rights, public law and order, and radical thinking movements, all of which gave rise to civil reforms (Poon, 2016). The Hippie subculture and fashion had their own unique values and lifestyle. The Beatles, for instance, being one of the most famous representatives of this movement. Hippies embraced environmentalism and a rhetoric of peace (as exemplified by the slogan ‘make love not war’), along with other characteristics, such as their love for art, folk music, and the borrowed stylings of Native American fashion. They were also passionate about hallucinogenic drug usage and mysticism (Poon, 2016). The artistic sensibility and freedom of expression of the Hippie movements subsequently impacted and inspired new ideas in advertising. Themes of wit, humour, minimalism, escape, and rebellion become common advertising material to appeal to more revolutionary and non-conformist consumers (Reading, 2013). Subsequently, ‘youth’ marketing, and the concepts of agelessness and youthfulness, became popular advertising rhetoric. Brands also started associating and identifying themselves as elements and icons of rebellion. For example, HarleyDavidson built a myth around itself as an icon of non-conformity (SzymkowskaBartyzel, 2015). In the Southeast Asian context, punk rock is another highly popular subculture movement, which has found a strong footing in Singapore, Thailand, Indonesia, Brunei, and Malaysia. While punk rock and heavy metal originated in the West, the Malaysian rock scene has also evolved several local variants, such as Pop-Yeh Yeh (a guitar-driven rock genre inspired by British rock groups) and rock kapak/mat rock (Western-inspired hard rock consisting of Malay lyrics) (Ferrarese, 2014). Punk musicians and fans consider rock to be the music of rebellion, causing punk rock to be a mostly underground, yet popular, cultural movement (Saffian et al., 2016). However, due to the mounting acceptance of the punk rock scene, there is no pressing need for it to be as secretive as it once was. In Malaysia, while the rock scene is still growing in popularity, morality concerns regarding the music and subculture persist (Liew & Fu, 2006). Several religious leaders have expressed their concerns and authorities have placed youths and Black Metal rockers under social surveillance due to association of the music genre with the occult and the ‘antiIslamic’ labelling. The rock music scene is not only credited with increasing the diversity of Malaysian music, but it has also subsequently influenced fashion senses and trends (Mustapha & Mohd Roslan, 2021), such as ‘hipster’ fashion (inspired by such bands as Pink Floyd) which is especially popular among Malay teenagers (Mohd Sukeri, 2019). Hard rock is also viewed positively by several local communities, such as in Penang, where heavy metal is seen as a multi-ethnic community builder (Ferrarese, 2014).

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Counterculture and rebellious consumption are more popular among teenagers and young adults as it allows them to express their need for individuality and opposition to authoritative figures. Moreover, counterculture and rebellious consumption are not inherently anti-consumerist, but simply produce new markets and consumption patterns. Heath and Potter (2005) argued that consumer rebels, rather than being in opposition to consumer capitalism, are in fact an essential element of it. For example, referring to the Hippies, they highlighted that there was no tension between the countercultural ideas that informed the 1960s rebellion and the ideological requirements of the capitalist system, including the association of the movement with Volkswagen campervans, Levi Strauss denim jeans, and Birkenstock sandals. Brands and advertising messages can tap into generational differences and perceptions, especially yearnings for liberation and freedom which younger generations strongly identify with (Arvidsson, 2001). Most forms of counterculture eventually become integrated into the mainstream, or some features of counterculture and consumer rebellion continue to persist and influence consumption and marketing decisions in the future. For example, while environmentalism and ‘going green’ were relatively new concepts in the 1960s, they are now widely accepted and common CSR goals for most companies. In addition to disappointing market experiences or ideologies, anti-consumption behaviour can also be linked to one’s culture and socialisation, as more thrifty communities generally display more anti-consumerist tendencies (Albinsson et al., 2010). Anti-consumption behaviours and lifestyles depend upon the general values that consumers hold towards long-term orientation, materialism, and environmental concerns. The more emphasis consumers have on these values, the more they are willing to adopt anti-consumption behaviour. Their resistance is either general (i.e. against all types of consumption) or specific (towards certain brands or products) and tends to be quieter and more passive as opposed to vengeful behaviours. Iyer and Muncy (2009) have grouped anti-consumers into four categories, namely, global impact consumers, market activists, anti-loyalists, and simplifiers. 1. Global impact consumers—Those who resist general consumption for societal reasons. 2. Market activists—Those who resist acquiring products or services for societal reasons. 3. Anti-loyalists—Those who do so for personal reasons. 4. Simplifiers—Who resist based on personal reasons.

7.7

Alternative Forms of Consumption

In addition to consumer rebellion and counterculture, alternative consumption is growing in popularity among modern consumers. Alternative consumption has been defined by Williams and Windebank (2005), as acquisition practices that do not

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involve obtaining new goods from formal retail outlets. Included under the umbrella of alternative consumption practices, therefore, are informal modes of goods acquisition such as acquiring goods from relatives, friends, and neighbours, as well as personal adverts (e.g. in local newspapers) and second-hand modes of goods acquisition such as car boot sales, thrift (second-hand) shops, and market stalls, selling used products. Consumers partake in alternative consumption for a range of reasons, including economic reasons, environmental awareness, and the desire for uniqueness. There are various forms of alternative consumption, ranging from consuming second-hand products, sustainable and organic consumption, as well as collaborative consumption (i.e. the sharing economy) (Edbring et al., 2016). Alternative consumption practices have also changed traditional preconceived notions towards consumption. For example, while informal and thrift or secondhand goods were in the past, often purchased out of financial necessity, they are now viewed more favourably by consumers and marketers as they are seen as sustainable and environmentally friendly (Williams & Windebank, 2005; Edbring et al., 2016).

7.7.1

Thrifting

The thrifting or the second-hand goods industry, has now become one the most popular forms of alternative consumption. Second-hand goods and apparel are growing across the world, especially in Malaysia, which is one of the world’s largest importers of second-hand clothing (Abdul Aziz et al., 2021). A growing number of shops, thrift stores, and ‘bundle’ stores (a unique term for thrift stores in Malaysia) are specialising in selling second-hand fashion products. An increasing number of consumers are aware of the immense wastage and pollution behind the fashion and textile industries and are thus frequenting thrift stores rather than purchasing new fashion items (Wan Kamarulbaharin et al., 2022). Conceptions on second-hand and pre-loved fashion items are also becoming more positive, due in part to the growing popularity of ‘vintage’ fashion. Thrift or bundle shopping is not just an alternative consumption method, it has now become a social integration platform (Chan, 2020; Yangzom, 2021).

7.7.2

New Consumption Communities

One popular and growing form of alternative consumption is the emergence of new consumption communities. The New Consumption Communities (NCC) concept is a fluid construct, ranging from communities with limited direct involvement in the production process, ranging from, Fairtrade town steering groups, to those highly committed to various interrelated societal issues, such as intentional sustainable communities, in which it is possible to find many ‘ethical simplifiers’. Bekin et al.

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(2007) emphasised that intrinsic to the concept of NCCs is a sense of community between production-engaged consumers who question market practices deemed inadequate and/or unfair. This includes cultivating their own food, sharing it with others, practising responsible consumption, engaging in DIY projects, buying, and donating used goods, and placing a high priority on recycling, these communities hope to establish control over the food production process and lower their food mileage. By gaining more control over the production process, communities can become more resistant to market logic, as characterised by the dominance of large, distant, and unaccountable corporations. These communities may also choose to live lifestyles of voluntary simplicity, which is ‘the degree to which an individual consciously chooses a way of life intended to maximize the individual’s control over his own life to minimize his/her consumption and dependency’ (Leonard-Barton, 1981). Through living simple and less cluttered lives, residents in NCCs can more closely connect with the local community, gain greater control over their lives, and experience less hectic lifestyles (Bekin et al., 2005).

7.7.3

Alternative Monetary Systems

The ability to create and use alternative monetary systems and features is also unique to alternative consumptions. Some examples of alternative monetary systems include Local Exchange Trading Schemes (LETS) which enable members to exchange goods and services with local credits, time banks, a volunteering exchange with one credit per hour, and Nu Spaarpas, a Dutch system that allocates green points to residents who then have access to various nationwide discounts (Seyfang, 2006). One driving factor of alternative consumption is the idea of moneyless exchanges, and the ability to share and swipe (Bajaj et al., 2020). Bartering is a resurging component of moneyless exchanges and alternative consumption, and is especially common in NCCs, where residents are encouraged to share their produce and resources with one another (Moraes et al., 2010). As the value of these alternative currencies and local monetary systems are usually based on voluntary community labour and/or green points, it can also improve local ties and people’s sense of belonging (Kim et al., 2016). An example of a culturally artistic alternative monetary system is the ‘Burning Man Project’, a weeklong communal festival where consumers exchange gifts or art either for free or for something of equal value (Kozinets, 2002). As monetary exchanges are not the core idea behind the event, consumers are able to briefly experience lifestyles where utilitarian profit is not the focus and experience an alternative cultural heterotopia less guided by capitalistic ideals (Gauthier, 2013). The term alternative cultural heterotopia was introduced by John (2001) while looking at the Australian alternative lifestyle event called ConFest. It refers to ‘the matrix of performance zones occupied by variously complementary and competing neo-tribes and identity clusters’ (John, 2001. p. 48).

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Concluding Thoughts

The representation and roles of consumers have shifted and changed in the marketplace. They can differ based on various factors, including one’s present situation, personality, and level of empowerment. Consumers are now more empowered and mindful of the consequences of their consumption behaviour and marketing practices and are taking an increasingly proactive role in the fight for consumer rights, social equality, and environmental goals. As consumer empowerment increases, individuals are becoming more active participants in consumer movements and activism. The goals and primary beneficiaries of consumer activism have shifted throughout history, from activism aimed at the good of others (e.g. voting rights for women), to activism for consumer safety, rights, and protection, to the current era where activism seeks to address environmental issues and sustainable consumption. Consumer resistance and activism can be expressed in different forms, some of which are antagonistic towards brands while others are less radical. As consumers are displaying more diversity in terms of their needs and wants, companies should not neglect consumers who resist consumption, but rather provide them with satisfying solutions. Some forms of consumer activism are synonymous with consumer resistance towards marketing systems and corporations, thereby resulting in anticonsumption tendencies or vengeful behaviour. Consumer resistance can also come in the form of counterculture and rebellious consumption, where the main driver behind rebellion is primarily materialism, but also resistance to existing social, political, or cultural norms. Consumer resistance also manifests itself in alternative forms of consumption which might be less participatory of the wider marketing system, and primarily address sustainability issues and concerns.

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Index

A Advertising, 5, 24, 39, 40, 76, 82–83, 87, 158 American Marketing Association (AMA), 32, 76, 78–80

B Bluewashing, 62 Boycotting, 154 Burning Man Project, 165 Buycotting, 153

C Canadian Marketing Association (CMA), 80–81 Consumer activism, 152–159 Consumer exclusion, 54–56, 123, 125 Consumer power, 6, 8, 9 Consumer resistance, 88, 152, 159–161, 166 Consumer revenge, 160 Consumer sovereignty, 19–22 Consumer Sovereignty Model, 5 Consumption, xvii, 1–7, 12, 14–18, 22, 31, 32, 34, 36, 45, 48, 57, 61, 76, 78, 93, 97, 100, 108–113, 124, 128, 136–138, 149–151, 153, 155–161, 163–166 Corporate social responsibility (CSR), 62, 77, 106–109 Counterculture, 161–163 Critical marketing, 135–137 Critical social marketing, 136, 137

D Disempowerment, 11–15

E Empowerment, 1–3, 6–11, 14–20, 22–25, 39, 72, 138, 150, 152, 166 Ethical consumption, 151–152 Ethical marketing, xvii, 21, 72, 75, 76, 78, 79, 81–83, 86, 87, 100, 107 Ethicswashing, 63

F Fast food, 5 Feminism, 39–40 Femvertising, 40

G Genetically modified, 59–60 Green consumption, 151–152 Green marketing, vii, 61, 98 Greenwashing, 60–62

H Hippie, 162

M Micro-marketing, 33–35

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2023 D. S. Mutum, E. M. Ghazali, Consumers, Society and Marketing, CSR, Sustainability, Ethics & Governance, https://doi.org/10.1007/978-3-031-39359-4

173

174 N Naderism, 154 New Consumption Communities (NCC), 164–165

P Pinkwashing, 62–63

Index Social entrepreneurship, 133–135 Socially Responsible Marketing (SRM), 77 Social marketing, 46, 123–132, 135–143 Social marketing mix, 127–131 Societal marketing, 105–106 Subvertising, 160–161 Sustainable development goals, 98 Sustainable marketing, 99–106, 109–113 Sustainable marketing mix, 109–113

Q Quadruple bottom line of sustainability, 95, 117 Quality-of-life (QOL) marketing, 78

T Thrifting, 149, 164

S Social enterprise, 134 Social entrepreneur, 133–135

V VSCO girls, 149–150 Vulnerability, 11–15