UNIT CODE
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TOPIC
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NAME
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STUDENT NO
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BSS000-6
ETHICS OF CONSUMERISM
SURIYANARAYANAN VALLI NAYAGAM
1034295
TABLE OF CONTENT

EXECUTIVE SUMMARY…………………………………….. 5

INTRODUCTION……………………………………………….. 5

AIM…………………………………………………………………. 6

OBJECTIVES………………………………………………………. 6

LITERATURE REVIEW……………………………………………..6
a. ETHICAL CONSUMERISM…………………………………6
b. CONSUMER BEHAVIOUR………………………………….7
c. THE MYTH OF THE ETHICAL CONSUMER……………..11
d. ETHICAL INTERPERSONAL BEHAVIOR…………………12
e. CONSUMER ETHICS RESEARCH……………………………14
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f. SAME CONCEPT BUT WITH DIFFERENT LABELS? CONSUMER
CITIZENSHIP AND POLITICAL CONSUMERISM………………………15
g. INTERRELATIONSHIP
BETWEEN
CONSUMER
ETHICS
AND
MARKETING ETHICS……………………………………………………….16
h. ETHICAL DECISION-MAKING……………………………………………..17
i. THE DIFFERENCE BETWEEN AWARENESS AND ACTION…………..18
j. IMPACT OF ETHICAL BUSINESS ON FAMILY CONSUMER DECISIONMAKING……………………………………………………………………..19
k. ETHICAL LIFESTYLE………………………………………………………19
l. FAMILY CONSUMER DECISION- MAKING……………………………20
m. ECO- CONSUMERISM………………………………………………………20
n. DEFORESTATION AND SUSTAINABLE CONSUMPTION…………….23
o. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)…………………25
p. THE EMERGENCE OF CRM PRACTICE………………………………….26
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
ANALYSIS AND DISCUSSION…………………………………………………26
a. CONSUMER CHOICE AND THEIR DECISION MAKING: IS ETHICAL
CONSUMERISM POSSIBLE?.................................................................. 29
b. BUSINESS ETHICS AND CUSTOMER STAKE HOLDERS………………..30
c. MAKING ETHICAL CONSUMERISM ‘STICK’………………………………….32
d. PRINCIPLES AND ETHICS OF CONSUMER SOVEREIGNTY……………..33
e. CONSUMER SOVEREIGNTY IN AN AGE OF HIGH TECH: FACT OR
FICTION?........................................................................................................33
f. ETHICAL ANALYSIS OF YOUTH CONSUMERISM……………………………..35
g. CUSTOMER
SEGMENTATION
OF
CUSTOMER
RELATIONSHIP
MANAGEMENT (CRM) PROCESS…………………………………………………36

CONCLUSION………………………………………………………………………41

RECOMMENDATION………………………………………………………………42

REFERENCES………………………………………………………………………44
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EXECUTIVE SUMMARY
This report is based on recent behavior of consumers in the market. The ethical issues
of the consumers have been discussed in various criteria. The actual theme of the
report is to present the consumer ethics in the present market. First, the literature
review had been done on ethical consumerism. In that, the history of consumerism,
consumerism behavior is majorly discussed. The myth of ethical consumer is reviewed
along with ethical interpersonal behavior. Then, the consumer ethics research has been
reviewed. The ethical decision – making and ethical style has been discussed apart
from eco-consumerism, deforestation and sustainable consumption. The different view
of ethical consumers by different authors in various issues is been denoted in this
review. Then, the analysis had been done based on the literature review and the
discussion of different sector of current situation in the market. The different reports of
ethical consumerism by various sources are being analysis in this part. It analyzes the
consumer behavior in last few years according to the ethical issues. Each analyze are
discussed well according to the current situation. Lastly in this report the conclusion is
structured based upon the analysis and the literature review. The expected prospect is
producing useful information for product clients to develop their customer relationship
management and advance the knowledge of ethical consumers.
INTRODUCTION
Ethical consumerism in general defines as buying of ethically made products. This
means products are made without any harm or exploitation of human beings, animals or
the natural environment (Knowmore, 2011). Now in the present market, there is a
question regarding consumerism that How do consumer shop ethically? For this issue,
many sociologists have undergone various researches in it. Thus, this issue can be
taken in two forms that are positive buying, moral boycott.

Positive buying: This means preferring ethical products, and business which are
based on the principal of primarily shopping. This could be a self interest of
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consumers. These types of purchasing product are recyclable, organic and are
produced locally. This has been directly supports progressive companies.

Moral boycott: This means negative purchasing and company- based
purchasing. Moral boycott is the practice of avoiding or boycotting product in
which consumer believes to be associated with unethical behavior. The one of
the main reason for boycotting of product is environmental farms (Knowmore,
2011)
AIM
To increase the knowledge about the consumer ethics in the present marketing field for
the product clients.
OBJECTIVES
By, the end of this report, you should be able to

Define consumerism and ethical consumerism.

Describe the occurrence of ethical behavior in the consumers according to their
strategies

Getting knowledge about the importance of customer management relationship
(CRM) and the development of ethical consumers.

Evaluate the ethical awareness among the consumers according to the current
market.
LITERATURE REVIEW
ETHICAL CONSUMERISM:
According to Calder, LendolGlen, (1990), the term ‘consumerism’ were first used in
1915 refer to “advocacy of the rights and
interests of consumers”, in 20th century
Thorstein Veblen, (2010) invented the concept of ‘conspicuous consumption’, then
at1960, in United States the term “consumption consumerism” is spread to
consumerism. This conspicuous consumerism has the economic potency to begin the
work in involved system. The starting of variation in the consumption even in the early
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appearance of anything comparatively called as pecuniary strength. Every consumer
has the different perspective view in the marketing field. Some of the important issues
are discussed here. The consumer demand which means that all consumers focus on
certain expectation on their own needs. Their first focus will be on the two main element
of product which is Quality and the price. The 90% of consumers have the principal of
‘preferring high Quality with low price’. The quality is more important than the price.
Then, the product availability which means more stocks should be available in the
markets for consumer needs. The product information is more important for a product to
identity by the consumers. This information will set a bridge for the quality. Then, the
durability and the guarantee are used by the consumers for the product selection. This
is also the important element as quality and price. As thought, the technology is well
developed in today’s market, so obviously the advanced feathers are must for the
product which means consumers concentrate highly in it. The product branding is an
important focus for consumers. The brand is which identifies the quality of the product in
the market and also the position of product in the market. The packaging of the product
is also the focus of consumers on the safety basis. These are the one of the part of
concert consumerism. The consumer behavior plays a main role in ethical issues of
consumers (Veblen, T, (2003)).
CONSUMER BEHAVIOUR:
As related to Solomon.M.R, (1993), Consumer behavior is defined as “it is a process
involved when individuals or group select, purchase, use or dispose of product,
services, ideas, or experiences to satisfy needs and desires.” (Solomon.M.R, (1993))
The ethical consumerism behavior in the environmental domain is a typical debate. The
proposed idea of sustainable development was “meeting the needs of future
generations to meet their own needs.” UNWCED, (1987) One of the main necessities of
sustainable development is changing the patterns of sustainable development is
changing the patterns of consumption especially in the developed world. So far, the
mick, (2008) founded that consumer researchers have failed to contribute substantiality
for solving the problem related to Sustainability .According to Thogersen, (1996) It is
necessary that to develop theories of consumer behavior which able to explain ethical
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and altruistic purchases related with traditional marketing theory which focus on selfinterested consumption motives .From these perspective the question occurs would be.
What are determines ethical consumer behavior? Cotte and Trudel, (2009) suggested
that Consumer research in this area has produced largely inconclusial result. Some of
the reasons for these negative outcomes are related to

According to Webster,(1975) The focus on many different behavioral domain
without discriminating across behavior instances

According to carvana,(2007) a technical understanding of the philosophical
assumption of different definition of ethics and how these are converted into
consumer behaviors
Since, these are the related outcomes on the basics of consumer behavior. There are
many areas to cover the actual issues in the consumer behavior (Antonetti.p, (2010))
The overall purpose of assuming value to customers often and more successfully than
the competition is to highly satisfied customers. This policy of ‘customer retention’
makes it in top attention of customers to hang about with the company rather than
jumping to new one. In almost all business condition, it is very tough to gain new
customers rather than maintain the old ones. Studies have shown that small
simplification in customer detections makes moderate increase in profits because

Loyal customers purchase more products

Loyal customers are little pricing aware and pay less consideration to
competitor’s advertising.

Servicing presented customers, who are common with firm’s contribution and
processes is cheaper

Loyal customers help in making new customer by positive references (Schiffman,
L.G, Kanuk, L.L, Hansen, H, (2008) P- 10-11).
Customers who have purchased and recorded several of the company’s products
should obtain wide and expected customer support. The remaining customer
who has a bank’s less cost-effective which make their little credit card usage in
order they should not be in penalty list like late payments. According to
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profitability levels,
the
customer
categorization
is
beyond
conventional
segmentation methods that further divide consumers in the bases on
demographic, social cultural or behavioral characterize. Customer profitability –
focused marketing identifies expenditure and revenues of individual customer
and then grouped them into tiers based on consumption behaviors that are
definite to company offering. For example, a recent study supports using a
‘customer pyramid’ where customers are grouped into 4 tries. These four tier are
classified according to the nature and attitude of consumers.

The platinum tier which have important users who doesn’t care about the price
but willing to try new offers.

The gold tier which have the customer who are the heavy users but not as
advantageous because they are more price perceptive than those in the higher
tier, ask for more discounts and are willing to buy from some providers.

The iron tier which has the customers who spend more profitability and do not
need any special merit action from the company.

The lead tier includes customers who actually depend on the company money
because they pay more attention on the claim money rather than their spending
(Schiffman,L.G,Kanuk,L.L,Hansen,H,(2008) P- 10-11)
Consumer buy product in many ways. The one of the model of consumer
purchase is kolter’s consumer buying process. According to kolter’s (2007) the
customer purchase process is designed in the marketing criterion which is used
by the customer for the common shopping. The figure is displayed below
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KOTLER’S CONSUMER BUYING PROCESS
PROBLEM RECOGNITION
INFORMATION SEARCH
EVALUATION OF
ALTERNATIVES
PRODUCT CHOICE
POST PURCHASE
FACTORS
Source: (Peter Morville, (2006))
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The above process describes the customer buying process. The consumers use this
process very often for their shopping. Kotler’s designed this model according to the
marketing principles. The problem recognition is that consumer needs the new product
to replace its old usage. The information search which means consumer is searching for
those new products in the market via internet. The evaluation of alternatives was where
consumer compares the products for selecting the best one. The product choice is that
consumer selected the product according to their need. The post purchase factors is the
process where consumer paying the bill via online payment. This kotler process of
consumer purchase is mainly depends upon the nature of consumers.
THE MYTH OF THE ETHICAL CONSUMER
In last 25 years, there has been an issue about the value of corporate social
responsibility (CSR) particularly related to rise of ‘ethical consumers’. Recently, many
surveys has shown that even the average consumer is demanded on ethical product
such as fair trade- certificated coffee, chocolate, cosmetic produced without involved in
animal testing and product which made on the basics of sustainable technologies. Is the
ethical consumer issue more than the myth? Although, many consumers bring out their
values and beliefs into purchasing decisions, when they examined consumer behavior,
it founded that the percentage of shopping choice is made on truly ethical basics proved
for smaller than most observers believes. The actual trouble in the data on ethical
consumerism is that all the research is based on the people survey and their interviews.
But, the data has been changed while they are in their purchasing habit. As noted by
john Drummond, CEO of corporate culture, a CSR consultancy, ‘most consumer
research is highly unsure, because there is a gap between what people say and what
they do’. This above statement was supported in the market in the base of
purchasement of ethical product. Many products got good position in the market. Some
organization or multinational corporation company will buy that product and promote it.
The separate business had been done by these corporations in order to develop them.
(Devinney, T, Auger, P, Eckhart, G, M., (2011))
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For ex, unilever’s purchase of Ben and jerry’s homemade Inc allowed for the expansion
of the Ben and jerry’s ice-cream product within the united state, but the rest of the
unliever’s business are remain same and not affected by this purchase. Those
companies which are enclosed in this process are facing the disadvantage in the
market. The target market for them is proving smaller or their cost is not covering up
their profit. The consumer is not willing to pay for what company need on it. For these
different issues, ‘The power of the post – recession consumer’, published by john
Gerzema and Michael o Antonio, s+b,spring (2011) the study participants often stated
that someone other than the individual consumer should be responsible for the
important social issues (Devinney,T, Auger, P,Eckhardt , G, M. ,(2011))
ETHICAL INTERPERSONAL BEHAVIOR
The ethical interpersonal behavior graphics was represented in 3 colors zones which
are red, yellow and green zones. The ethical and the unethical behavior with the
exclusive and inclusive comparison have been done. The green zone represents the
ethical calling. The optimal level which is indicated is for creativity, innovation,
engagement and ethical behavior. The yellow zone represents the ethical floor. In this
ethical floor, the main aim to create a strong ethical culture. The red zone indicates the
behaviors which have no place in the work place. The green zones relate the issue by
supports and collaborating with others. They achieving synergy innovating. The yellow
zones relating to the ethical behavior by listening to others, cooperating with others,
learning from others, respecting others and working together peacefully. The red zone
represent the ethical behavior by undermine others, tolerating other. The ethical
interpersonal behavior of graphic excerpt is indicating the consumer behavior in ethical
way. The following diagram represents the zones of ethical interpersonal behavior
(leading in Context, (2011)).
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Source: (leading in Context, (2011))
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CONSUMER ETHICS RESEARCH
Consumer ethics is a developed prospect of business and marting ethics. Having this
concept, many publications have focused on bad ethics rather than good which mean
on consumer dishonesty rather than good which mean on consumer responsibility. This
research is based on understanding consumer social responsibility. This research is
based on understanding consumer social responsibility such as consumer citizenship,
According to Brinkmann, (2004) political consumerism and consumer decision making
“business ethics is mainly deals with moral criticism of business behavior. Within the
market economy, business behavior is not independent from consumer behavior.
Perhaps, there was some justice that is various businesses which get the consumer
deserves and vice versa”. As Edel (1973) told, At the level of normal language or
relative usage, everybody realize the ethics studies are ‘right’ or ‘good’ that relevant
ethics, ethical problem and proper judgments which search technique will for identifying
the situation of meeting of good ethical decision. Donaldson and Werhane (1989) who
estimated either action are right or wrong, good or bad (Brinkmann, J, Peattie, K,
(2008)).
The premature consumer researches provide some effects of mood, emotion on
consumer decisions. In 1939, a Viennese psychoanalyst named Ernest Dichter began to
use Freudian psychoanalytic techniques to uncover the unseen inspiration of consumers.
By the late 1950, his research methodology called ‘motivational research’. As the results
of Dichter’s work and his successive research designed to explore deep within the
consumers. Today there are two different types of research methods to study consumer
behavior which are

Quantitative research

Qualitative research
Quantitative researches are expressive in nature. It is used by the researches to
understand the effect of various advanced inputs on the consumer, as a result it enable
marketers to ‘predict’ consumer behavior. This research advance is known as positivism
and consumer researches principally concerned with predicting consumer behavior.
Qualitative research is a method which consists of quality interviews, center groups,
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symbolic analysis, college examine and accurate techniques. These techniques are
administrated by a highly experienced market analyst. They often use combinations of
both researches to make a perfect planned marketing decision. For example, they use
qualitative researches for new ideas and to develop promotional strategy and
quantitative research to identify the consumer reaction according to inputs. These two
researches are the basic functioning of finding the consumer behavior (Schiffman, L.G,
Kanuk, L.L, Hansen, H, (2008) P- 22-23).
SAME CONCEPT BUT WITH DIFFERENT LABELS? CONSUMER CITIZENSHIP
AND POLITICAL CONSUMERISM
A concept of ethical consumerism approach to consumerism is that they seek to meet
society expectations, particularly in consumer influence. This comes into the view of
under the label of ‘consumer citizenship’ or ‘political consumerism’. As korthals, (2000)
Both of these concept denoted inward looking and personally orientation of consumer
with the outward looking and publically orientation of citizen .Gabriel and Lang (1995)
define consumer citizen as a responsible consumer, a socially-aware consumer, a
consumer whose action should be morally defensible and ocassily prepared to be
sacrifice. As McGregor, (2002) “if people were signified to see themselves as a
consumer citizen, a sense of morality, ethics and community could emerge again in this
world. Citizen and consumers are prepared themselves to see them in narrow roles.
This is a right time to merge that consumer citizenship leading to an opportunity to
socliaze responblity of people”. When coming to ‘political consumerism’ a recent Nordic
conference report refers to following definition Bostromet al, (2005) “Consumer choice
of products and producers has the goal of changing the market price. It is based on
attitude and value regarding issues of justice or non-economic issue such that
personally and family oriented”. There is a difference between consumer citizenship and
political consumerism could perchance be a issue of degree and ordering of reasons.
The consumer citizen points to change their expenditure to do well, the political
consumer possibly seek to create change for good through their consumption. From
either point of view, perceptive exactly how ethical size are showed in consumer
decision- making process. Regarding Friedman, (1991) It is possibly wroth nothing that
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when the efficiency of collective consumer action, it has usually been from the viewpoint
of their ability to force on unethical companies. It is only recently that more awareness
has rewarded to their capability to support encouraging change during ‘buycotts’
(Brinkmann, J, Peattie, K (2008))
INTERRELATIONSHIP BETWEEN CONSUMER ETHICS AND MARKETING ETHICS
Consumer behavior and consumer marketing survive in close and inter-reliant
relationship, with each determining the other, and it is reasonable to view consumer
ethics and marketing ethics as highly co-dependent. As an educational subject,
consumer behavior is a social science – based expert field within marketing, which tries
to explain, recognize and forecast consumer decision- making as a function of
demography, psychological variables. Consumer can be optimistic to assume more
ethnically based lifestyle, to identify the ethical amount of special type of purchase or to
believe their own purchase within their decision making process. Marketers can also
work to expand a purchase context within which ethical products easily exist to provide
purchase favorable items in which social pressure cheer consumers to judge and obtain
ethical products. There are two key types of principal variables within consumer
behavior models that marketers can influence in order to support responsible
consumption which are in two type situations and information. By joining these various
particular evaluations, a view of consumer behavior and marketing to a useful context
developed, in the case of buying and marketing of their Fair Trade Products.
(Brinkmann, J, Peattie, K (2008))
ETHICAL DECISION-MAKING
Much of the consumerist literature had a straight understanding of motivation that is
awareness and the action. Consumer ethical awareness had tried to explain relationship
of awareness and action related to socio-demographic indicators. However, argue Shaw
and Clarke (1999) denoted that the link between awareness and action is much more
complex. The main subject focusing on single issues is such as acid rain or global
warming, and their relationship to consumer behavior. The overview of how consumers
make decisions in various ways. The term ‘model of consumers’ refers to a general view
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or outlook on how individuals behave the way they do. There are four views to examine
which are:

An Economic view

A Passive view

An Emotional view

A cognitive view
An economic view is a theory in which consumer taking normal decision according to
the perfect competitive field. This model is called ‘economic man theory’. This was
criticized by the consumer researches for many reasons. To behave reasonably in
economic sense, a consumer should have be alert of all available product alternatives,
capable of correctly positioning each substitute in term of benefits and disadvantages
and able to find the best choice. A passive view is quiet opposite to the economic view
which denotes that consumers are essentially passive to the self serving interest and
promotional efforts of marketers. In this view, consumers are supposed to spontaneous
and unreasonable purchasers. An economical view model of consumer decision making
makes consumer to think in term of either economic or passive model. It fully depends
on the consumer feelings, emotions. Sometimes, this view plays a important role in the
consumer choices. A cognitive view is the fourth model which denotes consumer as the
‘thinking problem solver’. This model focused on the consumers where they can
estimate the information about the selected brand and retail outlets. These views
provide some perceptive about the ethical decision making of consumer. But,
consumers generally analyzes in all point of view before taking the decisions. The two
main things they concentrate on the awareness and action. The awareness and action
which are depends on each other. The awareness of consumers will be lacked when
they not performed certain action for their requirement
Hansen, H, (2008) P- 71-74).
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(Schiffman, L.G, Kanuk, L.L,
THE DIFFERENCE BETWEEN AWARENESS AND ACTION
Awareness of environmental and social, recently food issues do not appear to be high.
However, there is a difference between increased awareness and ethical purchase
behavior. Sales of ethical traded products which are fair- trade labeled goods which
would be higher in price, if the percentage of people follows the human rights important
in their shopping for fair – trade products other than the competing brands. Several
surveys denote that consumers do not allow for the difference between what people do
and what they say they do. Coddington, (1993) says Ethical surveys are particularly
taken based on people responding which aspire rather than actual behavior – the ‘haloeffect’. Hurtado (1998) suggested some other reasons for difference between stated
concerns and actual ethical consumption which are:

Products which are environmentally preferable may not meet the consumer
criteria of price, performance, quality

Insufficient information about the environmental benefits of products.

Lack of information on- pack of product with consumer.

Low environmentally good products on the market

People feels they cannot make much difference between products and have little
tendency to pay a premium.

The knowledge of environmental issues is limited (Tallontire, A. (2001)).
Those promoting the consumption of ethical products realize the limitations of
quantitative surveys, because of low levels of awareness of concepts such as fair-trade;
they have been the only possible option. When fair trade was not well-known, it was not
much aware the consumers to get together in group and discuss about what fair trade
about Fair trade Foundation director Phil wells, pers.comm.,(1999).These fair – trade
are important concept in the ethical awareness( Tallontire, A. (2001))
IMPACT OF ETHICAL BUSINESS ON FAMILY CONSUMER DECISION- MAKING
The most recent statistics of co-operative bank indicates the sale of ethical goods rise of
18% representing approximately £43.2 billion in ethical spending in the United kingdom
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in 2009 compared with 2008 The co-operative bank, (2010). This figure covers a great
extent of green goods. Consumers are making principled choices in each year for
choosing their ethical products. So, this became a more important brand in many
industries. According to French &raven, (1959) Family decision-making has a lengthy
interest in area of academics with particular complexities of its own (Carely, L, Shaw, D
and Shiu, E (2008))
ETHICAL LIFESTYLE
Since in 1990’s, As per smith,(1990) ethical consumers have been recognized in
academics circles as a certain consumer component part of the population .Since from
its beginning, the meaning of ethical consumerism has changed due to the different
attitudes and actions. According to Harrison et al., (2005) the issues and behavior are
relevant to ethical consumers which are varied but a well-know factor for ethical values
within the decision- making process adding complexity to this procedure. Ethical
consumption covers issues related to the environment, animal welfare, social
consumers and business ethics. Cowe and Williams, (2001) stated this classification
includes consumption of organic food related to health benefits and fair trade goods.
The ethical lifestyle is based on the consumption of the consumers in their various
issues regarding needs (Carely, L, Shaw, D and Shiu, E (2008))
The lifestyle is based on the brand which consumer chooses according to their view.
The loyalty in the brand makes the choice for the consumers. The concept of brand
loyalty is understood before by buying the same brand for that product repeatedly by the
consumer. Jacoby (1975) notes that in line to consider a cyclic buyer of a brand as a
loyal consumer it is essential to check whether the behavior is intended. There are three
major conditions to be required for the true loyalty brand;

An efficient buying behavior(and not only an target to buy)

Its reappearance over time

strengthening with a assurance to the purchased brand (Balderjahn, I,
Mennicken, c and Vernette, E. (eds), (1998), p – 171-172)
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FAMILY CONSUMER DECISION- MAKING
According to Blood and wolfe, (1960) there are two main theories which are relevant to
the resource theory and the social power theory .The social power theory is similar to
the resource theory in basic of power within a relationship depends upon the factors
such as social class and education. Both of the theories have provided an address for
consumer decision making through specific academic sphere which are further
subdivided into two main approaches; a communal slant including societal pressures
and work- life balance issues.Family consumer decision – making is complicated with
present effect from both inside and outside the family social unit. In outlook of the allaround nature of ethical consumption, parents try to follow an ethical life style which is
therefore presented with additional pressure. They are faced with matching their own
right responsibility through ethical consumption. Current intellectual research fails to
observe family consumer decision – making in an ethical environment. This take over
the issues surrounding the consumption habits of ethical family with a small aged
children who are under 3 years old. As per Sauders et al., (2003) the examining nature
of this research benefited from a relational of investigation where the fundamental
motivations and reasons behind the ethical actions in relation to the family consumer
habits of the participants are investigated (Carely, L, Shaw,D and Shiu, E (2008))
ECO- CONSUMERISM
Bostrom & klintman, (2008) related that ‘Eco- consumerism is about the action of lever,
the purchasing power of an individual consumer to bring about a transformation towards
the sustainable consumption and a green economy.’ The basic idea is for citizens to
influence market changes by selecting for eco-friendly product with their shopping. State
– and private-led labeling and certification program verify that these products are
actually eco – friendly. There are now thousands of “green” eco-labeled consumer
goods and services and hundreds of different eco- label programs. Globally, these
develop a wide range of sectors from mining, oil and gas, finance, fisheries, agriculture,
chemicals and forestry to apparel, coffee, jewelry and tourism. This eco- labeling
program depending on various options that includes “whether the standards mandatory
or voluntary, involves self-declaration or third party audits and includes a technical
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product based”. A believable program provides an independent “seal of approval” for
products that meets high environmental standards. As per Melo & Wolf, (2005); Rex &
Baumaan, (2007) if a product brands get green criteria, then it can be certificated and
producers can pay the licensing fee to use eco-label. This idea is that consumer can
identify the product line and brand to make their purchase in right way .Eco labeling
programs have achieved obvious successes, motivating environmental improvement for
hundreds of consumer goods and services and thousands of finished products. For
example, the ENERGY STAR (2006) program which initiated in United States has now
adopted globally with consumer buying more than 2 billon products with ENERGY
STAR label since 1992. By encouraging the adoption of green technology, ENERGY
STAR appliance models, For example, no longer emit chloro flouro carbons, useless
electricity, and easier to recycle (Dauvergne, P., Lister, J. (2010))
Even thought, these programs are creating environmental benefits, eco-labeling are
tends to challenge two key implementation which are 1) “In terms of gaining consensus
and acceptance 2) with regard to achieving sufficient consumer awareness and demand
for eco-labeling product “. The process of green certification is not only strictly technical
exercise, but also politically inheritance due to arise of challenges and acceptance.
According to Bostrom & Klintman, 2008; Gulbrandsen, (2006) the knowledge of science
behind in evaluating the product which must be make into whole with many integrate
with many diverse values, interests, ideologies and vision of what comprises a
‘sustainable green product’ .Often, some questions arise about the independence and
the type of experts involved as well as the objectivity of the science and
appropriateness of the standard criteria. For ex, when the U.S. green seal program was
launched in the early 1990’s, as per Conroy, (2007) the soap and detergent association
opposed the program regarding household cleaner eco-standard, argument based on
the technical criteria were “inconsistent and scientifically invalid” (Dauvergne, P., Lister,
J. (2010))
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To increase acceptance, nearly almost all eco- label programs involved in the work to
hire a wide range of government, nongovernment, community, and industry stakeholder
in standards development process. In some cases most programs conduct certification
evaluations among the team. International eco-labeling standards such as ISO 14024
and oversight bodies such as the Global Eco-labeling network and the International
social and Environmental Accreditation and Labeling Alliance ISEAL guide and examine
the well-founded of eco-label program (Dauvergne, P., Lister, J. (2010))
A second major challenge for eco-certification programs related to information and
awareness: trying to recognize the consumers to understand the eco-labels and make
them to buying the green products (which are often priced higher) is beneficial.
Moreover, the sustainability criteria are technically complex and hard to explain.
Normally, at first many consumers are skeptical, wanted to know what’s wrong with the
traditional products. The fact that non-certificated product are sometime fine and may
be more environmentally responsible than certificated product. As per Jackson, (2005);
Hartman, (2006); Rex and Baumaan, (2007) probably, at the end of the day, when well
educated and aware consumers say that they prefer to buy environmentally friendly
products. Ultimately, for the most consumers (including green shoppers), factor such as
product price, quality, convenience, and style tend to trump environmental factors .A
political scientist Michael Maniates (2007) sums up this all nicely “we, by nature, aren’t
terribly interested in doing anything that isn’t private, individualistic, cost – effective and
above all, easy” (Dauvergne, P., Lister, J. (2010))
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Source: Dauvergne, P., Lister, J. (2010)
DEFORESTATION AND SUSTAINABLE CONSUMPTION
In the world, there are 4 billion hectares of forest in which tree cutter harvest only 1% of
the wood reserves in every year. But, according to FAO and UNFF,(2008) in recent
years global demand for the forest and paper has been relatively flat growing at about 1
% per year over the past 10 years; united nation environment program [UNEP].There
are some factors which are moderate in demands which are the availability of substitute
Construction and packaging materials for example: concrete, steel plastic and
composite materials), advanced technology to improve the efficiency of fiber, increasing
recycle and the growth of electronic media. In the forest plantations, there is a increased
proposition of global fiber demand by 40 % of expanded area over the past 20 years. In
additional , a growing awareness of ecological international eco-labeling standards such
as ISO14024 and oversight bodies such as the global Eco-labeling Network and the
International social and Environmental Accreditation and Labeling Alliance[ISEAL] guide
and considering the well-founded of eco-label program ( Dauvergne, P., Lister, J.
(2010))
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A second major challenge for eco- certification programs related to information and
awareness: truing to recognize the consumers to understand the eco-labels and make
them to buying the green products (which are often priced higher) is beneficial.
Moreover, the sustainability criteria are technically complex and hard to explain.
Normally, at first many consumers are skeptical, wanted to know what’s wrong with the
traditional products. The fact that non- certificated product are sometimes fine and may
be more environmentally responsible than a certificated product. Probably, at the end of
the day, when well educated are aware consumers saying that they prefer to buy
environmentally friendly products. Ultimately, as per Jackson,(2005) for the most
consumers including Green shoppers, factors such as product price, quality,
convenience, and style tend to trump environmental factors importance of forest is
leading to improved forest planning, regulation, and protected forest areas . Overall,
global forest cover has been comparatively stable over the past 50 years and also
increasing in many temperate forest regions which are Western Europe, North America
and china. Nilsson, (2007); Sedio, (2004) suggested that Due to forest protection,
afforestation and reforestation Current forest consumption undergoes critical regional
imbalances over exploitation, illegal logging, poor logging practices are common
(Dauvergne, P., Lister, J. (2010))
Deforestation mainly concentrated in tropical forests where alternated to faster growing
plantations, agricultural crops, Grazing lands which are resulting in losses of million
hectares of primary forest for every year. Although, the global demand of forest
products are growing at relatively flat which been increasing the new threads. This
mainly includes mountain pressure from rapidly expanding Asian economies, and
developing North America and European demands for low-cost wood products,
increased risk of climate changes such as wind storms, infestations. According to FAO,
(2009) The impacts of these mountains pressure vary across the forest regions with the
most adverse effects occurring in tropical countries .Although ecological losses was
occurring in last remaining temperate forests and undistributed boreal forests. There
has been great forest loss in last recent years. As per Hansenetal, (2008) In the world’s
annual reports of tropical forests loss table, the highest losses have been in Brazil and
Indonesia A fifth of the Brazilian Amazon is already gone, with over all forest loss in
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South America continuing about 4.3 million hectares a year. The UNEP, UNFF (2008)
indicated the great loss in the south Asia where they loss 50% of its original forest and
continued with the remaining 1.2% in each year. As per FAO, (2009) African forests are
disappeared at 4 million hectares per year Thus, as the UNEP (2009) reports on the
state of global environment stated “the consensus among scientists and experts is that
conserving tropical forests represents one of the central eco-system management
priorities of our time” (Dauvergne, P., Lister, J. (2010))
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Customer relationship management has motivated more practioners and scholars.
Many companies are practicing customer – centric strategies and programs, tools and
technology for well organized and successful in achieving customer relationship
management. They are analyzing the customer knowledge in dept in order to build the
healthy relationship with the customers. In order to define Customer Relationship
Management in the marketing Literature, the term customer relationship management
and marketing relationship are used in the place of each other. As Nevin (1995)
notation, these terms are been used to reflect a variety of themes and perspective. A
sufficient perspective of customer relationship management is the marketing based on
the database emphasis the promotional aspects of marketing linked with database
efforts. As per Vavra, (1992) the relevant view point stated CRM only as seeking
customer retention by using the various marketing tactics which leads to customer
bonding .The important part of CRM is ‘Customer selectivity’. As several Researches
Storbacka, (2000) has indicated that all customers are not equally protitable for an
individual company .Therefore, the company must be discerning in making its programs
and marketing efforts by segmenting and selection of customers for the individuals
marketing programs (Parvatiyar, A, Sheth J,N., (2002))
THE EMERGENCE OF CRM PRACTICE
The observation of Sheth and Parvatiyar (1995b) indicating that customer relationship
has historical Preceding Circumstance going back into pre – industrial era. This is
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mainly due to direct communication between producers of agriculture products and their
consumers. Similarly, the skilled craftsperson often developed customized products for
each customer. Such direct involvement led to relational bonding between the producer
and the consumer. The important adaptation of CRM has been the Total Quality
Movement. The companies adopted the Total Quality Management [TQM] Philosophy to
improve the Quality and reducing the cost this becomes necessary for involvement of
suppliers and customers in implementing such programs at all levels of value chain.
This made the need for closer working relationships with customers, suppliers and other
members of the marketing intra structure. Frazier,Spekman,&o’Neal,(1988) said that
several companies such as Motorola, IBM, General Motors, ford and Toyota formed
partnering relationships with suppliers and customers to practice Total Quality
Management. Other program such as ‘just- in- time’ [JIT] supply and ‘materials-resource
planning’ [MRP] have also made use of mutual relationship between suppliers and
customers (Parvatiyar, A, Sheth J, N., (2002))
Therefore, the consumerism was discussed ethically in similar fields of this literature
review. The various authors were said that their views according to this issues. The
overall review denotes that there is a rise in the consumerism ethically. People prefer
more ethical products than the unethical products. Thus, in the market, ethically
produced products are the big brands and occupied by leading company. Now, the
analysis and the discussion should be done for this literature review.
ANALYSIS AND DISCUSSION
On the study of philosophy bases of research of Anderson, (1986): Hudson &Ozame,
(1988) the field of consumer research had a vast which was defining well- balanced on
the differences between the dominant positivist paradigm and a more involving
approach .According to carvana, (2007) the mutual understanding of philosophical
assumption of ethics which was analyzed by the following news “The new consumerism
– Frugal and cautious”? (Hugh Pym, BBC news (2010)) the recession in the consumer
changed the behavior and also had the big changes in their life style. Even though
economy growing is there, average customers are ready to spend according to their
budget. The changing trends was occurred by consumers. Small shopkeepers are
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adopting a port recession activity where some of them fail to stand and others have
success simaltenuoly. The new approaches where made by consumer according to the
business. Spending money in the right way, according to necessary needs will raise the
economy growth. For the perfect growth, the manufactures and the consumer sellers
needs consumers to rise spending. According to Bostrom & klintman, (2008); Gulbrand
jen (2006) the science knowledge behind the product evaluation must make into
‘sustainable green product’ and according to Phill wells fair trade foundation out, (1999)
the consumer was less aware of the fair trade concept. These were analyzed by the
‘green backs’ (Sean Coughlan, BBC news, (2006)) The annual survey of ethical
spending in the UK was published by co-operative bank which show a record level of £
29.4bn. This includes £28bn spends on green product. There is a 11% increase
compared to previous year which had growth in some area such as organic food, fair
trade products, green energy deals and ethical finance product. In such a case the
people are ready to access fair trade and organic product.
According to melo & wolf, (2005), Rex & Bauman, (2007) the consumer can identify and
purchase the certificated product by the green criteria in brand and according to
Bostrom & klintman, (2008); Gulbrandren (2006) a sustainable green product is
identified by the science knowledge. The news of BBC analyzed ‘UK ethical spending
on the rise’(Simon Williams, BBC news,(2007)) the report from the co-operative bank
stating that UK customers spend almost twice as much as on the ethical products for
past 5 years ago. ‘The market share for ethical products like food and drinks items are
being exist to break through the upper limit of green products’ [Simon Williams, cooperative bank]. The ethical consumerism report 2010 of co-operative bank stating that
recent spend of consumers on ethical foods and drinks has been increased by 27% in
last two years from £5.1 billon to £6.5 billons. The Fair trade food sale was also
increased by 64% which was about £749 million. The sale of free food certificated more
than trebled from £ 28 millions to £ 122 millions. In the same time, organic food
delivered by 14% to £1.7 billon. The average spend on household in UK was reached
£764 on ethical product excluding charitable donation and ethical finance. On the green
transport, energy and renewable efficiency energy has grown from just £23 in 1999 to
reach £267 by 2009 (Ethical consumerism report,(2010))
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Source: (Ethical consumerism report,(2010))
Source;(Ethical consumerism report,(2010))
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According to ethical consumption report 2009, there was been a growth in the ethical
mark of UK worth of £36 billion in 2008 compared to £135 billion in 1999. These two
2009, 2010 report of ethical consumerism analyzes the growth of the consumerism in
the UK. There is growth in every year by the consumers in the markets. The report of
ethical consumerism in view from Finland stating that the important hurdle in ethical
consumption were dispute in getting information, problem regarding product availability
and high price of ethical product. Consumers are mainly uncertain about the product
and firm which follows ethical rules and which are not following it. Today, social
responsibility had became an important cooperate goal. The one of the main factor in
consumer’s lifestyles is their ethical choice. Today’s consumers are more educated,
informative, and aware about their requirement of product as well as about their rights,
responblity as consumers in order to make ethical choice (ethical consumerism report
(2009))
CONSUMER
CHOICE
AND
THEIR
DECISION
MAKING:
IS
ETHICAL
CONSUMERISM POSSIBLE?
In the literature review, the ethical decision making had been discussed based on
awareness and action. Here, the purchase and consumption of the ethical products is
based on the requirement of large amount of effort investing in information and decision
making. Consumers are willing to pay high price for those products. Many ethical
choices may base on the consumer decision- making. Engel, J., Blackwell, R, rminiard,
(1986) In their daily shopping, consumers facing the routine problem which are solved
by them. The method used for examine the data is the grounded theory which able to
analysis the meaning within the interviews to appear. The data which means collection
of issues that are based on ethical lifestyle, in order to gain a clear understanding of it.
Seven steps expressed by smith et al. (2003) which are Familiarization, reflection,
conceptualization, cataloguing, re-coding, linking and re-evaluation. Using grounded
theory data analysis enabled the researcher to get close the data in order to
approaching it in full meaning. As written in the literature review, the two important
factors are to be taken into relation when looking at reasonable question in this
background: the complete variety of ethical actions and habits entered into Cowe and
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Williams, (2001); craig.Lees and Hill, (2002); Shaw and Shiu, (2003) and the different
period of awareness that the recorded question displayed with relation to ethical issue.
This Finnish consumerism report concludes that ethical consumerism has become an
ideal for the group of consumers especially in western countries. Both firms and
consumers have a meaningful role in promoting ethics of production and trade
(Uusitalo, O., Oksanen, R., (2004))
BUSINESS ETHICS AND CUSTOMER STAKE HOLDERS
Henrique, I., & Sadorsky, p, (1999) shared a view of the firm which holds the
employees, customers, shareholders and suppliers are the key organizational stake
holders .Customers are the key stake holders who help to establish the firm’s reputation
and identification. For example, today Procter and Gamble examine a text book market
driven global power house with billion- dollar brands such as Bounty, Olay, Tide, Crest
and Folgers Neff, j. (2004), P&G. The ethical measures state the rightness or
wrongness of specific firm actions independently of stakeholder duty. Al though a study
of Maignan, I., Ferrell, o.k.,& Hult,G.T.(1999) founded that the ethical environment of
firm to be positively associated with customer loyalty. The establishment of ethical
customer stakeholder relationship is based on the relationship between the customer
and a firm. The connection between the customer and a firm occur because of mutual
expectations built on trust, good faith and fair dealing in their collaboration. The suggest
agreement of good faith and fair dealing is to strengthen the interaction in a coherent
manner with customer reasonable expectations. From this point of view, the ethically
questionable action towards consumers can be courtship in civil litigation. Therefore, the
ethical judgment of suitable conduct has a foundation for legal resolution. For example,
in a recent year Wal-Mart was involved with roughly twelve law-suits per day. The walmart is more legal proceeding organization expect for the U.S Government (Ferrell,
O.C., (2004))
Ethical responsibilities to consumers have a strong support of idea of legal protection.
At the Federal Trade Commission [FTC] strengthen the consumer protection laws. The
Bureau of consumer protection works to protect consumer against unethical business,
misleading or fraudulent practices. The Federal Trade commission stepped into KFC,
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when KFC promoted the health benefits and low carbohydrate content of its chicken
with the slogan stating that “If you are watching carbs and going High- protein, go KFC”.
Then, for the proof of this slogan, they examine the two piece of fried chicken [skin
removed] were compared to original burger king whopper. In the KFC ad, at the bottom
it returned ‘a balanced diet and exercise is needed for good health which silmar’s KFC
chicken that contain low fat, low sodium and low cholesterol food’. The Federal Trade
Commission (FTC) ordered KFC to stop running this advertising which indicating the
wrong nature of advertisement (FEDERAL TRADE COMMISSION, (2004)). . Presently,
the misleading and false advertising had been increased as key issues in organizontal
communication. The possibly certain knowledge about the customer stakeholders has
been researched according to various criteria. According to Gardyn, R. (2002) cone
Roper national survey of consumer attitudes, 81% of consumer prefers to have a brand
with a good principle if price and quality were equal .Many research of Ashforth, B.E.,
&Mael,F.(1989) explained that consumers identify with organizations and may
understand an coincide between organizational attributes and their individual attributes
.The concept of organizational identification is important because consumer want selfidentity, so they see for the organizational images. These facts throughout the firm can
provide a foundation for organizational responsiveness and ethical behavior (Ferrell,
O.C., (2004))
MAKING ETHICAL CONSUMERISM ‘STICK’
In the past 5 years, the consumers’ attitude in particular direction of ethical issue had
become large in number, so that they are now considered as a new key aspect of
business strategy British Retail consortium BRC, (2010). According to Browne et al.,
(2000) similarly consumers and business are starting to understand the important of
customer ethics and values, and how to gain competitive advantages with meeting
some demands. According to WRAP, (2010) In the year 2008, the BRC and major
super market of Britain’s which are ASDA, the co-operative, Marks and Spencer,
Sainsbury’s, Somerfield, Tesco and Waitrose are agreed with the UK governments to
reduce the usage of carrier bags which are provide to customers by 50% in 2009
compared to 2006.This contract covered Scotland, England, Wales and Northern
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Ireland. In July 2009, the results showed the reduction of 48% has been achieved.
‘Stick-ness’ is defined as process of making ideas inoder to understand and memorable
the things which are strong effect on people’s behavior. (Yeow, P. (2011))
The occurrence of new idea Greenhalgh et al, (2004:602) in the literature highlights the
importance of personal view of leaders in the legal of new ideas. Estimated leaders
have a good impact on the implementation of new behavior. This explains the use of
famous people like politicians and celebrities to promote product, campaigns and events
which create a belief of social acceptability. Griskevicius et al’s (2010) study of the proenvironmental ‘green’ products purchases says that such purchasing behavior can be
constructed as selflessness since green products often cost more and are of lower
quality. However, green products are good for environment purpose. According to
Sainsbury’s environmental manger, ‘working with the customer for achieving the
reduction in the sale in -order to bringing out the long-term behavioral change’. This
further confirms the UK role of playing their supermarket in order to encourage the
change of consumer behavior (Yeow, P. (2011))
PRINCIPLES AND ETHICS OF CONSUMER SOVEREIGNTY
In the high tech world, the consumer sovereignty which knows as consumer right has
been increasingly high in the market. Smith (1995) has suggested that consumer rights
should be the base for the marketing ethics. He found that marketing ethics has
changed from the position of commercial principles towards new suggested principles.
As discussed in the literature review under the topic of ethical consumerism, the idea of
consumers on their decision making by shopping around the products which has ‘high
quality with low price’. The basic question occurred in consumer sovereignty of
marketing is consumer sovereignty is possible in the age of high tech? The age of hightech which have the advanced technology in the present market? The discussion is
based on how consumer right works in the present high tech marketing society (Sirgy,
M.J., (2000)
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CONSUMER SOVEREIGNTY IN AN AGE OF HIGH TECH: FACT OR FICTION?
The economic system of most self- governing societies is analyzed based on the
competition. Consumers use their economic options to praise business that bring to the
market a better solution firm that have a record of being creative and caused to deliver
high quality product with the lower price. The law and regulation of the financial system
in the most self – governing societies are founded to create and reinforce structural
competition. For example, the antitrust law in the U.S is created to end relationship
restricted possession, because these possessions are identified as anti-competitive.
The principle state of an economy is ‘prefect’ or ‘pure’ competition, where all large and
small commercial business is given the chance to calculate fairly for sales and market
shares. Today’s economic environment is quite different from the earlier one. It has
been likely to change and has the movable equipment in the predicted future. Most of
the products are basically high tech products. So, consumers are no longer able to
liable of making correct decision about the brand is of high quality and low price.
Several marketing scholars e.g., Archrol, (1991); Kohli and Jaworski, (1990); Slate and
Narver, (1994) have denoted that the increasing unrest in marketing environment which
reflect an increasing step of technical knowledge, dependence among the competitors.
(Sirgy, M.J., (2000))
However, the principles of ethics are mainly based on the trust. The customer trust is
very much important for the marketing. For example, in the e-health industry the top
rules for the success of health internet is becoming equally showing that trust, trust and
trust. Some criteria are, if user won’t trust that site means, they won’t come back to that
site, if doctors don’t trust those means, they won’t send the patients there. So, without
the trust the e-health industry cannot grow. The Hi-Ethics, INC. is a health website
based on the consumer health which represents popular health industry. The ethical
principles are more important in business. The top five important ethical principals are
Honesty, Integrity, and Promise-keeping and Trust worthiness, loyalty and Fairness.
The principles are explained below.
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
Honesty – ethical management are straight forward and truthful in all their
business. They do not intentionally misinform or swindle others by exaggeration,
incomplete truth etc.

Integrity- the administrative exhibit personal integrity and the bravery of their
firmly belief by doing whatever they think is correct even when there is some
pressure to do otherwise: they are ethical, admirable. They will struggle for their
certainty.

Promise- keeping and trust worthiness- these executives are valuable of trust.
They are honest and imminent in supplying related information and correcting the
false impression of fact, and they make every logical effect to fulfill the note. They
do not understand agreements in an irrationally technical in order to reduce
Non-cooperation or create adjustment for avoiding their commitments.

Loyalty- in the loyalty they reveal reliability and constancy to persons and
organization by acquaintance in hardship, support and commitment to duty. They
are trusty to their companies and colleagues and if they choose to allow
employment, they provide reasonable note, respect the private information of
their previous company, and refuse to connect in any behavior that take
unnecessary advantage of their previous positions

Fairness- they will be in all communications, they do not implement capacity and
does not use extend nor does crude mean to gain or maintain any advantage of
other mistake. Fair persons apparent a obligation to justice, the equal treatment
of individuals, lenience for and recognition of diversity.
As the market become more competitive, many individuals crossing the line on ethical
principles. The dissatisfaction is that managers reporting to these individuals must
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accept the behavior to maintain their employment. This is what called a ripple effect
which means a development of new culture (josephsoninstitute, (2010))
ETHICAL ANALYSIS OF YOUTH CONSUMERISM
The culture of consumerism and materialism has a negative impact on the children’s
psychological health. The actual impression of adverting to youth which harms the
children and they suffered by a lot. The relationship between psychology and marketing
is based on (APA) American Psychological Association. According to john & Sujan,
(1990), A concise review of research by consumer psychologists exposes such titles as
‘difference of Age in product category’, ‘all we want for Christmas: an assessment of
Santa Claus brand requests to children’ Otnes, Kim, Kim, (1994). Researches like
Schor,(2004)
were
knowledge
in
anthropology,
archaeology,
sociology
and
communication are developing more plans to effect on childhood consumerism, but
research conducted by psychologist is often more unappeased. Kanner and Gomes
(1995) found that advertisement make children’s feel unsatisfied unless they buy those
products. The example for this is plenty. As per schor (2004) psyologists are using their
knowledge to help company market to children and view to goal for expanding loyalty
and consumerism. The data over the past 25years have shown that improvement of
consumerism in children, teen’s causes harm. The effect of marketing and consumerism
on children health is analyzed in last 10 years where childhood obesity has raised which
results in children’s are involved in smoking, drinking alcohol and having illegal drugs
that leads them in emotionally health and mental problems in the past. This research
shows that past 20 years activities of children’s are not much worse than physically as
well as emotionally. The connection between espousing materialistic value and the
above stated problem has stabled in psychological research on adults and children.
According to Schor, (2004) an evidential idea from the data is that ‘high levels of
consumer participation reduce children’s self-respect in the area of family relationship’
.The connection is that consumerisms come first and the pain follows. In its most
intense, adverstiment creates the general material culture that lead themselves through
information owned, as against to ethics purpose and community Shapiro, (2005). The
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APA Task Force on Advertising and Children TFAC; Kunkel et al., (2004) establish that
the results of adverting may offer to prospect such as Mis-impression about good
Nutritional habit’. For example, purchasing of new brand clothes which is popular in
children but differ from the parents which create strain and heaviness between them. As
per Unnikrishan & Bajpai, (1996) The APA TFAC report received many of the studies
showed the strong evidence that children under age of 8 years do not grouped the
necessary level of relating Development to understand the nature of advertising, as a
result suffer from making related choice about their relationships. Thus, the youth
consumerism is fully deals with children’s rights (Kramer, J.B. (2006))
CUSTOMER SEGMENTATION OF CUSTOMER RELATIONSHIP MANAGEMENT
(CRM) PROCESS
As in the literature review, Frazier, Spekman & o’Neal, (1988) suggested that there
should be a mutual relationship between suppliers and customers. For this, the process
of customer segmentation has been analyzed to make a relationship. In this
segmentation, the CRM process has been delivered. Once a CRM program was
developed and rotated out, the program as well as the individual relationship must be
controlled and restrained. For the mass- market customers, the degree which is
balanced or unbalanced in the basic responsibility of customer and program that
sponsor the company will be managing the relationship according to the market size.
However, the program direction done by distributors and business customers and the
management need their involvement of relationship from both of them. According to
Borys & Jemison, (1989): Heide, (1994); Sheth & Parvatiyar ;( 1992) the Goverence
responblity was shared by independently in the degree which depends on the
perception of the process among the partners of CRM programs. Actually, many studies
accurate governance situation of different mixing relationships .There are several issues
which occurred by the relational partners in term of management and governance
responsibilities. Those issues are “role specification, communication, common bonds,
planning process, process alignment, employee motivation and monitoring procedure”
(Parvatiyar, sheth (2002))
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Role specification is associated to determining the partner’s roles in satisfying the CRM
tasks as well as the individual role in the team management or their related activities
(Heide, 1994). The scope of CRM program is to set a steady partnering in the
management, which is more critical in the CRM. Role specification also helps in clearing
the nature of resources and authority needed by the individuals. The one of the
necessary and important process in the relationship marketing is communication. This
communication is help in development of relationship in marketing and also provides
more informative knowledge in it. It is necessary to found intra- company
communication which help in dealing with a separate customer or a group of customers.
Even though communication with the customer helps to create a relational bonding, the
common bonding must be essetional for relationship process in order to have more
support impact on it. In business to business relationships the communication is created
by social bonding. However, the mass market customers frequently will have face to
face interactions which are not efficient. Thus, marketers should create the common
bonds through membership, affinity groups, symbolic relationship and creating online
committees Sheth, (1994). According to Jacoby (1975) the true brand loyalty was
reviewed in based on the necessary condition where all are based on the loyalty
(Parvatiyar, sheth (2002))
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Source: Parvatiyar, sheth (2002)
The important aspects of governance relationship are the process of planning in the
way which customers need to be involved in the planning process. Involving those
customers in this process would make sure to show their support in this plan and
achieving the goal. Even though, not all customers are eager to take part in the planning
process and it is impossible to involve all of them in the relationship process. Senior
managers are sometime not knowledgeable, they initially ignore the negativeness of
operating process between their company and customer partner’s which leads to the
problem in relational marketing. Some operating process need to be correct the position
on the nature of relationship. For example, the operating alignment will be provided in
order process, accounting and budget process, information process, marketing process.
Several human resources decision is also important for creating the right organization.
The important thing in the process is to act the training employee with customers to
work in team and manages the belief of the relationship. There should be a motivation
between the employees and the customer (Parvatiyar, sheth (2002))
Finally, monitoring process which is needed to avoid the failure and manage difference
in relationships. Monitoring process includes the periodic evaluation of goals and
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results, basic modification in the relationship structure, design and creating a system for
analyzing problems and solving it. Thus, according to Parvatiyar, Biong, Wathne, (1998)
the governance process helps in uphold and development of CRM. It also helps in
powering the relationship among partners (Parvatiyar, sheth (2002))
So the CRM process which is important for the organization to develop their quality of
work. For example, Tesco has done consumer relationship management in the right
way and got success in their scheme. Recently, Tesco call club card success and profit
assumed by 10%. Tesco had posted a 10 % rise of profit in a year which tends to £ 3bn.
This profit is achieved due to the planning scheme in the market. Tesco introduced the
‘club card’ which is used by the customer on the basis of point’s criteria. Each point will
reward the customer in some ways. The actual benefit of club card in Tesco is used to
buy all household items including gas recharge, current recharge, petrol filling and other
house hold uses. All this facilities can be done in this club card. Although, these facilities
will also collect points in every purchase and those points will bonus to the customer in
the next purchase. Hence, this process had a very good opening in the customer side.
Parallel, the other competitor’s are also started the same plan. The Sainsbury’s, Asda
also introduced the same club card plan but they got lost in it due to lacking of some
features which they can’t overcome with Tesco. In 2010, 18% of UK households are
now compensating club card points than a year ago. Then, in 2009 the double – point
re-launch of the loyalty scheme was introduced in Tesco. The Tesco got real profit and
also planned to create up to 9,000 jobs in the UK. SO, the other competitors Sainsbury
and Asda cannot win this club card scheme as Tesco done (Charlie Wright, (2010))
‘Tesco added loyalty pressure on Asda’. Tesco made the hard time for Asda. Tesco
market share grow to 30.5% while Asda doesn’t perform a loyalty scheme. This cause a
major market share fall for Asda. Sainsbury’s self-awareness director told, now 16.8
million peoples uses ‘Nectar’ card more than any other loyalty scheme in UK. Tesco and
Sainsbury’s could benefit on being able to aim promotion at specific customers. On the
other side, Asda was failed to do this target. The actual race is gone between Tesco
39 | P a g e
and Sainsbury’s but the additional feature of Tesco’s ‘club card’ taken over Sainsbury’s
‘Nectar’ card away from competition (Chloe Ryan and Joanne Grew,( 2010))
Recently in June 2011, Tesco’s made a marvelous record in the South Korea. Tesco’s
made a new way of shopping system in South Korea, which was with a smart phone
that made the position of Tesco to higher. The actual methodology of shopping is they
made virtual stores in subways stations. As well known, South Korea is a world busiest
working country. So people have less time to spend on their shopping. This made the
Tesco the idea to invent the virtual stores. This means they fix the entire product picture
in the screens. People using smart phone should scan the item which they want, than
the bar code of the product is scanned and marked in the shopping basket. Then, it will
deliver to their home before they reach. This is fastest and useful system of shopping in
South Korea. It got very good opening among the people. For this, Tesco under gone a
research in south Korea. The Tesco’s home plus got the sign fact % of urban living and
working South Korea’s problems in South Korea office of marketing firm worldwide.
Also, South Korean consumers expressed a interest for being able to use waiting time.
So such waiting time was used by the Tesco virtual shopping. So that, without spending
additional time for shopping, South Korean people can does their shopping. This is
called a very good customer relationship management by Tesco. During the three
month period10, 287 consumers visited the home plus online using smart phones.
Additionally the number of new registered members was been by 76% and online sales
also increased by 130 %. The head of United Kingdom headquarter Tesco in March of
this year; CEO Philip Clarke was in charge of global retailer’s operation in the South
Korea. The Tesco’s European and Asian operation is the second largest unit after
United Kingdom (Fresh & Easy Buzz, (2011))
CONCLUSION
The domain of this report is to take a fresh look at our understanding of ethics of
consumerism. The effect of the perceptive on the market for marketing the ethical
products such as Fair Trade Products As per many study of origin saying that consumer
40 | P a g e
shop ethically which discussed in two forms such as positive buying and normal boycott
has been mentioned in the introduction of report. Then, the research on limits of
consumer behavior Cotte & Trudel, (2009) had the outcomes in harmful way such as
without perfect focus of different behavioral scope Webster, (1975) and various
meanings of ethics in consumer behavioral concept Carvana, (2007). The ‘customer
pyramid’ of 4 tiers model are discussed along with the Kotler,(2007) consumer buying
process . The two important consumer researches which are quantitative and qualitative
research are reviwed and analyzed in the report. The ethical consumer is more than the
myth as per corporate social responsibility [CSR] research timothy devinney, pat auger,
(2011) which is reviewed in the report as consumer behavior is based on the product
quality. The interpersonal behavior of consumer is represented with the graph according
to their habit. The research of consumer ethics is based on the different business in
market Brinkmann, (2004). As per McGregor, (2002) reviewed both consumer
citizenship and the political consumerism is analyzed by Bostromet al, (2005) based on
the same theory with different path. Then, the ethical decision making is reviewed in
models of four main views. According to the Shaw & Clark (1999) debated which based
on the relationship between Action and Awareness which improved the fair trade
knowledge to the consumers. The fair trade goods is fairly discussed in the decision
making process. The family consumer decision making is received based on two theory
of resource Blood and Wolfe, (1960) and social power theory French and Raven, (1959)
which came to conclude for the proper decision making. The green economy is based
on the sustainable consumption of present consumer Bostrom & Klintman, (2008). The
green product is very essentional in the current market which is surveyed by the various
sources that has been analyzed in this report. Deforestation is reviewed base on the
eco-consumerism. The ethical consumer is possible if the choice and the decision
making of the consumer is the correct way Engel, J Blackwell, R, rminiard, (1986). The
ethics of business is based on the customer stakeholder. As Henrique, I., & sadorsky, p.
(1999) shared a view of trust support that employee, shareholders, customer and
suppliers are key imported stakeholder which denotes the importance of the
stakeholders with the example was analyzed in the report. The consumer so -verity is
possible in age of high tech is a fact which was analyzed by numerous marketing
41 | P a g e
experts Archrol, (1991); Kohli and Jaworski; (1990) in the report. The customer
management relationship (CRM) is more important for the consumerism. As in the
review, Frazier, Spekman & O’Neal, (1988) recommended there should be a common
connection between suppliers and customers. So the CRM [Customer Relationship
Management] process is analyzed for this purpose. The loyalty is very much important
in the customer relationship. The important part of the report is the CRM benefits in the
newly high tech market. The proven example for this has been provided in the report.
Thus, the customer management relationship [CRM] theory will help the product clients
to maintain their consumer growth and the development of the own companies.
RECOMMENDATION
In this, it has been suggest some recommendation for the product clients. Generally,
today’s market are operated in well advanced manner as thought the development of
technology is high, the consumer are seeking for the better product and company
functions. There is some pressure in the markets by the heavy competitors in order to
satisfy the customer in all possible way. The certain suggestions should be followed by
the product clients in order to fulfill the consumer needs.

The ethical products must be produced in secured way and follows certain
criteria of ‘high quality low price’ which are offered by the today’s consumer in
special way.

The consumer choice should be made easily according to the advanced
technology in the market. The brand image should be well recognized by the
company in order to make the consumer opinion in their valued manner.

The customer relationship management (CRM) is the important process which
should be well developed in the company. The relationship between the
42 | P a g e
consumer and the company which make the actual development of the
company in the market.

The green products should be more secured and the availability to the
consumers in sufficient way which is important for the current market because
the green products are good for the nature of environment which was needed
by the today’s consumers.

The consumer demand and the consumer focus should be analyzed by the
companies in a regular interval of certain short period in order to maintain their
healthy environment with the consumer.

The operation of companies should be viewed by the consumers in order to
make the important criteria named ‘Trust’ which is the ‘business mantra’ for the
company followed by the consumers for their purpose.

All the ethical issues should be overcome by the companies in the production.
So that, the loyalty of the consumer will be maintained in the focused manner.
More consumer are mainly depends on the loyalty of the companies which
provide them the personal satisfaction.

Lastly, the important thing is research. The research which provide the updated
information and knowledge for the current situation. The consumer behavior and
consumer decision making which are the important processes to trace out the
actual diversity of consumers. So, continues research in the current market will
provide all needed for the companies.
These are the some suggestions made for the product clients for developing them in the
well advanced manner for the current market.
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