Eth(ex) Sells

Adaptability is imperative in surviving the business environment as marketing strategy must remain fluid to cope with evolving generations and their attitudes. It is no secret that millennials are the marketplace’s core audience and their concerns surrounding diversity, climate change, equality and other social responsibilities are now more explicitly catered to. Yet in contradiction, ethics relies on consistency.

So how does ethical conduct remain uniform with evolving expectations and standards?

This is where market research is analysed. Previously, literature has mainly focused its studies on cross-cultural differences in perceptions of what constitutes ethical marketing. However, as the world is expanding as much as it is getting smaller, mainly due to globalisation and technological advances, we are beginning to study cross-generational differences instead. As found by Deloitte Global Millennial Survey, millennials indicated their willingness to support businesses that were built on corporate social responsibility as they found they held more pessimistic values towards cheap marketing compared to those of previous generations. Therefore, it is critical in providing an appropriate frame of conduct whereby businesses advance previous practice rather than simply modifying it to appease its critical audience. In fact, according to our own research survey, we found that 90% of respondents felt it was the responsibility of the business to engage in ethical business practice in the first place, rather than that of the consumer to make purchase decisions based off their own personal standards.

Trends are fleeting. So how do we sustain the trend of sustainability?

Millennial consumers do not settle for the affordability or convenience of products but are now integrating a more dynamic criteria, such as corporate behaviour and sustainability of the products they buy. A study from Green-flex shows that new ethical initiatives alone improved market share for 67% of companies. To hedge bets against a 'trend' mentality of ethical practice, it is important to recognise that consumers do not now ignore price and quality, but apply additional considerations in the decision-making process.

Ethical marketing allows companies to develop trust with customers in a way that promotes long-term relationships. Millennials however, are fickle and quick to abandon a brand if they feel they have been cheated. According to Aflac, up to 75% of consumers say that are likely to take action against a socially or environmentally unethical business. This is reflective of our findings that 72% of our respondents stating they would a previously ‘favourite’ product if they found out it was produced unsustainably.

Who are these ethical consumers?!

Lastly, it is important to acknowledge the studies behind the motivations of ethical consumption. At large, fair trade and environmental sustainability are the key factors in consumer consideration for ethical consumption. However, literature reveals that these motivations may perhaps be less encouraged by altruism and more out of self-interest. According to Cornish (2006) who studied the marketability of organic, fair-trade coffee, the main motivations in ethical consumption of the coffee was mostly attributed to i) perceived better quality/taste and ii) social status-quo. Up to 50% of our respondents admitted that social status was also a contributing factor in choosing a 'sustainable' brand. Motivations are important to consider when determining positioning of your product, however, perceived consumer wants and needs remain the same regardless of the underlying virtue.