UPPSALA UNIVERSITET Department of Business Studies Business Administration D-level Master Thesis 15 credits, Spring 2011 2011-06-03

Socially Desirable Fast Moving Consumer Goods

A Literature Review on How To Decrease the Gap Between Intention & Purchase Behavior Through Marketing
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Authors: Mikael Forsberg Sara-Maria Lfvenberg Tutor: Susanne berg

Abstract
Authors: Tutor: Title: Mikael Forsberg and Sara-Maria Lfvenberg Susanne berg Socially Desirable Fast Moving Consumer Goods A Literature Review on How To Decrease the Gap Between Intention & Purchase Behavior Through Marketing

Keywords Branding, Consumer Behavior, Consumer Value Creation, Decision-making, Differentiation, Eco, Ecological, Environmentally Conscious Behavior, Fast Moving Consumer Goods (FMCG), Green Consumer, Green Marketing, In-store marketing, Marketing, Organic, Purchase decision, Socially Desirable, Value Creation. Background and Problem Consumers today are more environmentally conscious than ever. However, it has been found that there is a gap between the consumers intention and actual purchase when it comes to products that there is a social pressure to buy for environmental reasons. The potential for the socially desirable segment is estimated to have potential, but growth seems to be slow. It has been stated that until now, there is not enough research done that take a holistic perspective including several fields of marketing. There is a need to review and combine existing literature in various fields of marketing to investigate how the gap can be decreased and sales increased. Purpose The purpose of this thesis is to review and combine existing literature in the fields of consumer value creation, decision-making and in-store marketing. By doing so the authors of this thesis aim to present a theoretical model on how producers of socially desirable FMCG can decrease the gap between the consumers intention and actual purchase through marketing. Decreasing the gap refers to more fully exploit the potential size of the segment and generate more sales. Method A completely theoretical method was chosen for this thesis. To the authors knowledge there has not been done enough specific research to match the purpose of this thesis. A literature review has therefore been conducted within three separate fields of marketing to get a broader understanding of how the gap between intention and actual purchase can be decreased. Based on the extensive literature review, the authors developed ten propositions that formed a model that can be used as the backbone for future theoretical and empirical research. Final Discussion Some highlights of the theoretical discussions earlier in this thesis are presented in the final discussion. The authors suggest that purchase decisions of socially desirable FMCG initially are high-involvement decisions that often are formed outside the in-store-setting. This suggests that more long-term marketing efforts such as brand building in some cases can be more important than in-store marketing when it comes to FMCG that are socially desirable. Symbolic values should be highlighted in branding of socially desirable FMCG because the instrumental differences between FMCG and socially desirable FMCG is limited. It is therefore likely that it is more efficient to focus on consumers self-identity to convince them to purchase socially desirable FMCG. It is also important that producers of socially desirable FMCG provide consumers with clear product information in-store and that the products are easy to find. Based on the extensive literature review, the authors have developed eight propositions that form the model presented in this chapter.

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Definitions
To reduce the risk for misunderstanding of what the authors intend to describe, a short list of definitions of important terms may be followed below. Fast Moving Consumer Goods (FMCG) In this thesis, the term FMCG refers to retail goods that are consumed relatively quickly, many of them within a short time period of just a few days.! Examples include non-durable goods such as soft drinks, toiletries, and grocery items such as meat, fruits or diary products. FMCGs are products that are characterized as being sold quickly and that have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Generally, the profit per item is relatively small but since they sell in large quantities the cumulative profit can be large. In this thesis it is important to understand the term since the marketing implications might differ from more durable goods. Socially Desirable FMCGs Products that are characterized by a social pressure to purchase for environmental reasons are referred to as socially desirable FMCG. The authors do not consider whether the production procedures are favorable for the environment or not. Instead, it is the consumers perceptions of which products that are friendly to the environment that counts. The expression socially desirable is taken from hman (2010). An issue for the reader is that existing literature which deals with the topic are using different expressions. In some literature, terms such as organic or environmental are used. In this literature review, these terms will not be replaced by socially desirable when referring to an article that are using other terms. Only when the authors present their view, the term socially desirable will be used. However, the authors define the expressions organic, environmental, or any other similar words, as socially desirable. The Green Consumer The green consumer refers to the environmentally conscious consumer who is buying, willing to or says she will be buying socially desirable FMCG. This definition is used to determine what kind of benefits consumers seek when considering buying socially desirable FMCG.

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TABLE OF CONTENT
1. .INTRODUCTION 1.1 Background
1.1.1 1.1.2 1.1.3 The Gap between the Intention of Being Environmentally Friendly and Actual Behavior Socially Desirable Products and the Market for Those High Potential, Slow Growth What is the Problem?

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1.2 Purpose 1.3 Delimitations 2. .METHOD 2.1 Choice of Method 2.2 Collection of Relevant Research Articles 2.3 Limitations and Criticism of Sources 2.4 Outline of the Study 3. .LITERATURE REVIEW 3.1 Creating Value For the Green Consumer
3.1.1 Who is the Green consumer and what Benefits is She Seeking? 3.1.2 Branding and Differentiation Creates Value for the Consumer 3.1.3 Consumer Confusion over New Market Entrants 3.1.4 Discussion: Creating Value for the Green Consumer 3.1.4.1 Propositions

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3.2 Decision-making Behavioral Aspects

3.2.1 Different perspectives when Studying Decision-Making 3.2.2 The Purchase Decision Planned or Unplanned 3.2.3 High-Low Involvement in Decision-Making 3.2.4 Where the Decision-Making Takes Place 3.2.5 Discussion: Decision-Making 3.2.5.1 Propositions

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3.3 In-store Marketing

3.3.1 3.3.2 Harsh Competition Calls for Improved In-Store Execution Factors that Affect the Consumers Choice of Socially Desirable FMCG In-Store 3.3.3 Increased Sales through Aisle Placement 3.3.4 Discussion: In-Store Marketing 3.3.4.1 Propositions

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4. .FINAL DISCUSSION 4.1 Approaching a Model 4.2 Further Research Suggestions .REFERENCES .APPENDIX

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11. INTRODUCTION

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In this section, the reader will be introduced to the topic of this thesis and the gap between the intention of being environmentally friendly and actual behavior, socially desirable acts and the high potential but slow growth on the market of socially desirable products. Furthermore, the problem formulation and the purpose of this thesis will be presented.

1.1 Background
1.1.1 The Gap between the Intention of Being Environmentally Friendly and Actual Behavior A Google search for climate changes generates 134 million hits, which is somewhat less than a search for Barack Obama but much more than terrorism and Madonna. The concern about the environment has become a fundamental economic and political issue across the world during the last couple of decades (Peattie, 1992). More and more firms are working on different methods on to reduce their environmental impact. Some do it because they truly believe it is the right thing to do or because there are costs to save, while others do it because their customers demand it (Unga Aktiesparare). In the latter group many firms have developed a range of products that are appealing to consumers who think it is important to reduce their own share of negative environmental influence. A very high share, 91%, of the Swedish population is aware of the climate changes, and about half the population feel guilty when they are acting in a way which they believe will have a negative impact on the environment (Naturvrdsverket, 2008). At the same time, the consumption of goods and services that are known to be less environmentally friendly has not declined - it has increased. For example, gas-guzzling cars and airplanes are used like never before and the meat consumption per capita has increased (DN:a, 2010-12-15; SvD, 2010-11-30; DN:b, 2010-06-30). Why is there a difference between intention and actual behavior? In SvD, (2010-11-30) researchers and psychologists discuss why it is so hard for the human being to change its behavior in relation to the environmental issues. Rees (2002-2003) also discusses whether humans really have the ability to plan long-term. The legend says that the population of Easter Island cut down the very last tree on the island, even though they knew that the trees were necessary for their survival. The trees were fuel for fire and wood for building boats so they could fish. When the last tree had fallen, it was just a matter of time until the whole population was extinct. Rees (2002%!

2003) argues that there are limitations for expansion and growth, and that all populations keep expanding until they destroy a critical resource for its own survival. Through evolution, our brains have been developed to react on the most pressing physical threats (SvD, 2010-11-30). However, the climate threat is different. No warning signals will be activated in the brain as long as the threat does not immediately affect our local environment or us directly. The cost for acting in an environmentally friendly way today may be perceived as a sacrifice and a cost, while the yield not only is more diffuse, but also far ahead in the future. The human brain is rewarded when we perceive pleasure a behavior that often is strongly related to not being environmentally friendly. In the choice between having a walk to the office or going by car, the latter often seems like a better and more pleasant solution (Ibid; hman, 2010). hman (2010) argues that there is a clear difference between intention and actual purchase. He also states that trying to measure intention in consumer surveys often is an unreliable variable. There are three main reasons for why consumer intentions tend to be misleading regarding environmental consciousness. Firstly, the social pressure is strong; most people would like to see themselves and be seen by others as environmentally conscious. Secondly, no one controls if you actually follow your intentions and perform the action; in this case that you actually purchase environmentally friendly products. Thirdly, the cost of the behavior is often underestimated while the value is overestimated. This often occurs when the purchase takes place in the future, so-called time shift, while the intention is measured before the purchase takes place (Ibid). 1.1.2 Socially Desirable Products and the Market for Those High Potential, Slow Growth hman (2010) also discusses that under normal circumstances it is hard to predict future consumer shopping behavior and purchases. It is even harder when adding other aspects, such as trying to predict socially desirable acts, which as already mentioned is overestimated when looking at the intention. Socially desirable acts in this case refer to purchases of products for which there are a social or external pressure to buy for environmental reasons. In this thesis, the focus will be on Fast Moving Consumer Goods (FMCG) which fall under this definition. That is, the products that will be discussed from now on are by the authors considered as products where there is a social or external pressure to buy them. These products are most likely organically labeled in various ways, or they might be labeled in a way that indicates climate or environmentally friendly production procedures. The definition also applies to locally produced goods. The definition above is

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important, since the authors of this thesis by no means intend to determine which production procedures are the most favorable for the environment. The consumers perception and definition of which products that are friendly to the external environment is what counts. It was initially thought that consumers would alter their attitudes in favor of purchases of organic instead of conventional food products. Nonetheless, consumer response has been very slow resulting in sub-optimal market performance (de Vlieger et al., 1993; Urban et al.'s, 1986 in Chryssochoidis, 2000 p. 707). More recent news suggest that things may have changed since these articles were written; Swedens largest grocery chain ICA, holding about 50 percent of the market, increased its sales of organic products by 50 percent during 2008 compared to 2007 and doubled its organic product range Although the total sales have increased, the organic products still only represent 2,2 percent of the total grocery products sold in Sweden in 2004 (Statistics Sweden, 2004). This is in line with ICAs sales figures, where organic products generated SEK 2 billion in sales (Dagens handel, 2011-02-07) The total sales for ICA represented close to SEK 93 billion, which gives a share for organics of about 2,1 percent of total sales in 2010 (ICA AB Yearend Report, 2010). There is somewhat of a paradox here; the interest and the awareness for the environment is growing and the socially conscious segment is predicted to increase, but growth seems to be slow. It is also concluded that there is a discrepancy between how consumers say that they act and how they actually act when it comes to making environmentally conscious purchase decisions (hman, 2010). Hughner et al. (2007) states that organic products are one of the largest growth markets within the food industry. 1.1.3 What is the Problem? There is potential to develop the socially desirable segment but the gap between intention and actual purchase provides a possible issue for producers of FMCG which are socially desirable purchases. It will therefore not only be hard to predict production volumes, but it also means that they reach a smaller group of consumers than the potential total size of the segment. Therefore, there is a need to study this area more closely and to integrate existing marketing theories with more specific studies on consumer behavior regarding FMCG which are socially desirable purchases. Hughner et al. (2007) state that future research is needed to understand the complex organic customer behavior in order to further improve sales in the segment. hman (2010) concludes that the gap between intent and purchase is especially large in a retailing context. It is

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questionable if the consumer makes any extensive purchase decisions regarding FMCG before entering the retail outlet (Inman & Winter, 1998; Klabjan & Pei, 2011). Therefore, the producers of FMCG which are socially desirable purchases are most likely to have an opportunity to influence the consumer at the point of purchase to increase its sales. Because of this, the focus in this thesis will be on in-store marketing, although more general marketing and branding theories will be presented together with consumer behavior theories on decision-making. Until now, many researchers and authors have conducted research in for this thesis relevant, although separate, fields of marketing; customer value, decision-making and in-store marketing. Since each area of marketing alone will not help us find an answer of how the gap can be decreased the authors intend to present a literature review of the above-mentioned fields that could be used as the backbone of future empirical research.

1.2 Purpose
The purpose of this thesis is to review and combine existing literature in the fields of consumer value creation, decision-making and in-store marketing. By doing so the authors of this thesis aim to present a model on how producers of socially desirable FMCG can decrease the gap between the consumers intention and actual purchase through marketing. The term decreasing the gap refers to more fully exploit the potential size of the segment and generate more sales.

1.3 Delimitations
It will not be possible within the scope of this thesis to cover all fields of marketing. As mentioned in the introduction and in the purpose, the channel of focus will be on in-store marketing in a retailing context. There are several aspects of marketing which are not covered, i.e. marketing communications and advertising through other channels such as TV, online or magazines. Since the idea of this thesis is to create a model built on existing theories the reader needs to consider that the model can by no means be considered as complete, both for the reason mentioned above and because the model is not based on empirical research carried out by the authors of this thesis.

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12. METHODdd

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In this section, the authors will present how this paper has been compiled. At the outset, the reader will be guided though the choice of method, followed by how the collection of relevant articles were conducted. Thereafter, the design of this study will be described.

2.1 Choice of Method

The authors of this thesis aim to review and combine existing literature in the fields of consumer value creation, decision-making and in-store marketing. This refers to taking a more holistic perspective on how producers of FMCG which are socially desirable can increase sales and exploit more fully the segment through different fields of marketing. To be able to fulfill the purpose of this study, the different sub-fields of marketing presented above need to be reviewed and compiled together as one entity. According to the authors of this thesis, it is vital to review marketing fundamentals, differentiation and how value can be added to a product. Knowledge about the decision-making process from a consumer point-of-view is also important in order to understand how consumers think when they make a purchase decision. Moreover, knowledge based on the retailer side is also important to consider, such as how price decisions, aisle settings or display placements affect in-store sales. Separately, each of these areas can create a piece of a puzzle, but to make the puzzle more complete, that is fulfillment of the purpose of this thesis, there is a need to combine these pieces of the puzzle. According to Cooper (1998), the literature review as a method can be pursued in various ways. It can be used for different purposes i.e. to criticize previous studies or to connect different theories from different fields of research. The reason for choosing a completely theoretical approach in this thesis is that there is, to the authors knowledge, no combined compilation of the different research areas described above. Therefore it is necessary to first put together the existing relevant studies in those fields before it would be possible to execute empirical research to test the propositions of this thesis. This is in accordance with Cooper (1998) who argues that a literature review is a study in itself and that it can be used as a starting point for separate empirical research. The authors of this thesis aim to present a model in the end of this review that could facilitate empirical research on this topic. This could be a valuable contribution and a way to test if the compiled conclusions and the model of this thesis can be validated. Within the time limit of this !
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thesis, conducting both a literature review, presenting a model and then test it empirically would not be possible. The intention is therefore to present a model that can provide a structure for how the gap between intention and purchase for FMCG goods which are socially desirable purchases can be decreased according to a combination of existing theories.

2.2 Collection of Relevant Research Articles

An extensive literature review took place and the collection of relevant articles was conducted. The starting point for this literature review was Considering Intentions by hman (2010), and from this dissertation the authors have researched relevant references and theories on a step-bystep basis. If a reference in hman (2010) was considered interesting, it was reviewed. Then, in turn, if references in that article were proven to be relevant, they were also reviewed. Some articles that were considered to be relevant for this purpose were chosen out of the authors previous records obtained through various course work at university. A third step in the pursuit of finding relevant articles was performed through an electronic search in the reference database Business Source Premier. According to Cooper (1998), a comprehensive literature search should use secondary channels, especially reference and research registers as the backbone. These sources cast a very wide net and are close to keep approximately all research. Therefore, using Business Source Premier is a legitimate action. However, it is also suggested that only focusing on published articles is not advisable. Also using informal sources is recommended, although it should only be a small share of the total articles reviewed, both because informal sources tend to be more recent and because those can be a complement to the more established sources (Cooper, 1998). Informal sources that were used in this thesis was hman (2010) (a doctoral thesis) and Holt (2003) (case material), which both were found through previous knowledge of the authors of this thesis. Keywords that were used, either individually or combined in the article search: Decision-making, Organic, In-store marketing, FMCG, Differentiation, Eco, Ecological, Purchase decision, Green Marketing, Branding and Consumer Behavior. Furthermore, relevant articles were also found through cited references in articles generated through the search on Business Source Premier. The articles were then scanned through reading the abstract. If they seemed relevant for the purpose, they were stored for later reading. The criteria for being relevant was that the article

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related to what the authors of this thesis defined as being socially desirable FMCG in combination with covering either customer value, decision-making or in-store marketing. However, in some instances this search of multiple keywords did not generate enough articles that combined these issues, which made the authors widen the search and allow theories covering only customer value, decision-making or in-store marketing to be reviewed. More refined theories on socially desirable FMCG used in combination with more conventional marketing theories also helped the authors define the possible difference that exist between marketing conventional and socially desirable FMCG. This also strengthened the authors hypothesis that this field has not been covered in a holistic perspective to the extent that is necessary to put together a combined model built on existing theories. Cooper (1998) determined that identifying a gap in existing research is an important aspect of doing a literature review because it helps suggest future research. Another relevance criteria for this thesis dealt with finding a mix of theories that both contradict each other and that support each others arguments. Since it was not possible to cover every article the authors decision to choose or not to choose certain articles added a subjective element to this thesis that cannot be eliminated. All reviewed articles have been compiled in Table 1, which can be found in the Appendix. Here, the authors have described each article reviewed, how it was found, a brief description of the content and the main conclusion. The reader is also provided with information about articles that were read but which were determined to be irrelevant for this thesis. The table was designed to give the reader an overview over articles covered, but also to demonstrate that the review was thoroughly done.

2.3 Limitations and Criticism of Sources

First of all the term mentioned in the introduction, FMCG that are socially desirable purchases, provided an opportunity for the authors of this thesis to really investigate a behavior that is probably no different if the product is locally produced or labeled organically with labels such as KRAV or the EU-symbol (KRAV; European Commission on Organic Farming). On the other hand, there is confusion about what kind of labeling means what, and in the scientific articles researched for in the purpose of this thesis, different terms occur, such as green, organic or environmentally friendly. It would be preferable if there were consistent labeling in this area since it constitutes a problem for the consumers as well as it is a limitation for this thesis to some extent. The consumer issue of it will be further discussed in the theoretical part of this thesis.

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Finding relevant articles for FMCG goods which are socially desirable purchases specifically has arisen as an issue. In some cases, theories covering other types of products than organic FMCG are reviewed. When the content still has been judged as relevant for the purpose of this thesis, those articles have been included but presented under a critical eye. Some articles that cover organic products and the development of a market for them can be viewed as old in the context of this thesis. The 90s are considered to be the booming decade for green marketing, but it can still be that attitudes and trends have changed since. Some articles are even older and therefore the authors have been careful not to draw conclusions solely out of those articles which can be viewed as outdated. This reasoning is not valid for articles and studies considering branding and marketing in general, as older articles in those fields in many instances are well established. Another limitation is that all relevant theories cannot possibly be reviewed or covered within the scope of this thesis. This also concerns the fields of marketing chosen for this thesis. For example, all aspects of marketing communication and media options to advertise such as TV, ads and so on are not covered. This affects the result, and the model cannot be considered as a mirror image of the full picture or reality for that matter. Since no empirical research has been conducted in this thesis, the conclusions are based completely on theoretical approaches. What affected the final results of this thesis were both the time frame (when the articles that have been reviewed in this thesis were written) and the personal touch of the authors experiences and beliefs. The field of green marketing is likely to continue to develop as well as the consumer behavior of today. Therefore a similar review done in a few years from now would probably have a different content and different result than this thesis. The authors have not chosen a specific geographic region for this literature review, but have tried to show awareness concerning regional differences in those cases where difficulties have occurred. However, the authors make a calculated assumption that the consumer segment relevant for the studied products has a higher price point in general. Therefore it is likely that the tendencies and patterns that this study is based on are more transferrable within western countries with strong buying power than in poor countries where consumers are likely to be more price conscious. For example, in the introduction statistics about Sweden and the grocery chain ICA is presented. ICA is considered to be representative to draw conclusions from Sweden as sample, as the chain holds over 50 percent of the market and has retail outlets with different price concepts. The authors
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consider Sweden as fairly representative for western countries. In this thesis, a basic assumption is that the producing firms of FMCG that are socially desirable are competitive and strive to maximize profit, which mean that they should have an interest in increasing the sales of this segment. We are aware that this may not be valid for all firms.

2.4 Outline of the Study

There are three chapters of theory. The first chapter covers established marketing theories describing how marketing can add value to the consumer by promoting differentiation, branding and segmentation. The second chapter contains theories about intentions and purchase behavior in the retail setting which provide a theoretical introduction to decision-making. To emphasize and question if the type of differentiation that FMCG that are socially desirable purchases offer the consumer really can be classified and treated as a more conventional unique selling point, both more conventional marketing theories and those that specifically concern socially desirable FMCG. The third chapter will cover the field of in-store marketing. This chapter provides necessary knowledge of actual in-store execution. This kind of structure is in line with what Hart (1998) suggests, thus there are several sections dealing with different concerns. This is to demonstrate that the main concepts and theories examined in the literature review are covered in this thesis (ibid). A discussion will follow after each chapter. Important propositions that conclude the discussion will be presented at the end of every chapter. Together, the propositions of the chapters form the framework for how to apply this knowledge in a model. The model is then suggested to be used in future empirical research. ! ! ! ! ! ! !

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13. LITERATURE REVIEW

In this section, a literature review based on three different research areas will be presented. The first chapter will focus on how to add value through marketing while the other two will focus on decision-making and in-store marketing. Each chapter will be followed by a discussion and propositions. Based on this, a model will be presented.

3.1 Creating Value for the Green Consumer

FMCG which are socially desirable purchases are linked to theories of differentiation and value adding through marketing. What is it with these products that make consumers buy them? What kind of benefits are the consumers seeking? In this part, theories covering marketing fundamentals, differentiation and value added through marketing will be covered. 3.1.1 Who is the Green Consumer and what Benefits is She Seeking? Hartmann and Apaolaza Ibez (2006) mean that individuals who are expressing high environmental consciousness or concern in response to direct questions will not necessarily transform this into an environmentally responsible behavior. In a Portuguese study, the sampled consumers were aware of the existence of environmental problems, even though their concerns were not always translated into environmentally friendly behavior (Finisterra do Pao et al., 2009). In hman (2010), the author discusses how intentions to purchase eco-friendly products often differ from regular products. The intention to purchase ecological products could be grouped into the same category as other intentions such as quitting smoking or spending more time at the gym so called good intentions. hman (2010) states that it has a desirable end-state even though the process of getting there could be described as undesirable. The undesirable in this case refers to the trouble, often in the form of a higher price, that consumers have to go through to reach the desired state. Hartmann and Apaolaza Ibez (2006) acknowledge that one of the major issues in green marketing is to find a way to emphasize which individual benefits the consumer can obtain when choosing the green(er) option. Hartmann and Apaolaza Ibez (2006) suggest that these benefits can be emphasized by adding more and stronger emotional values to green brands. Belz and Dyllik (1996) say that the consumer in most cases will see the improvement or the result of their

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environmentally friendly choices only when a majority of the population is taking the same actions. People often act out of a short-term personal goal. This might harm the collective in a long-term perspective. Sometimes this situation is called the tragedy of the commons, and has today become an accepted concept since the ecologist Garrett Hardin (1968) coined the expression. This concept expresses how the motivation for the individual to pay a higher price for green products decreases, as the reward or benefit of paying the higher price will happen in the future or not at all. This has been said to resemble the behavioral dilemma faced by prisoners, who may behave irresponsibly not as much on account of perceived benefits of good conduct, but because they note that fellow prisoners do not behave properly either (Hartmann & Apaolaza Ibez, 2006, p. 676). Finisterra do Pao et al. (2009), note that different segments of consumers look upon green products in very different ways. They also conclude that there are some consumers who are prepared to base their purchase decisions on the benefit of the product not harming the environment. The result of their study also showed that there is a segment of green consumers that is very different from other segments in some aspects. The consumers in the study which buy green products do so for very specific reasons, are between 25 and 34 years old or 45 and 54 years old and have the highest education level in the sample, work in intellectual, scientific or artistic middle and senior management and are specialists earning higher incomes. The individuals in this segment are positive towards all environmental aspects and have an environmentally friendly buying behavior (Finisterra do Pao et al., 2009). According to their study, this segment consists of 35 percent of the sample. Hughner et al. (2007) concluded that parents of young children are more likely to purchase organic grocery products. In general, young people tend to have a positive attitude to organic food but older people are the most likely purchasers (Hughner et al, 2007).!! Other research has found that the probability to purchase organic products is higher among the college educated (Chandon et al., 2009), high income, older families and high-level occupation groups (Jolly, 1991; Ngobo, 2011). Magnusson et al. (2001) found that between 46 percent and 67 percent (depending on food category) of the consumers have positive attitudes towards organic food. Women had a more positive attitude than men. In spite of this, only between four and ten percent had intentions to actually buy organic food. The probability to purchase organic products is lowest among larger families (Ngobo, 2011).

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In contrast to the authors above, Straughan and Roberts (1999) suggest that demographic factors are not a good way to solely segment the consumers in respect of green behavior. This is because demographics lack the explanatory power of the psychographic variables. They argue that the typical profile given for green consumers; young, mid- to high-income, educated and urban women is the result of an easy, but not very effective segmentation. The result of their study shows that psychographics need to be included to make an accurate discrimination between varying degrees of ecologically conscious consumers. An important conclusion of their study is that the consumer needs to be convinced that his or her pro-environmental actions will be effective in fighting environmental challenges. Therefore, marketing activities should focus on explaining to the consumer what kind of beneficial environmental outcomes that is linked to making this effort and buying this green product. What kind of benefits is the consumer seeking when purchasing green products? This is important to understand to be able to market this type of product successfully. According to Hall (2008), consumers are likely to purchase organic food for numerous reasons, among others: the perceived effect of organics on the environment, taste, sustainability, status, lifestyle, animal welfare, worker safety, nutritional content, or reduced exposure to pesticides. The main reason for purchasing organic food is health, but taste and environmental concerns are also important for consumers (Hughner et al, 2007). Hall (2008) argues that this combines the findings of Katz (1960), Grubb and Grathwohl (1967) and Lievens and Highhouse (2003) that are related to the brand image. Those findings linked instrumental attributes to the need to maximize benefits and minimize cost (Katz, 1960). Instrumental characteristics correspond to product-related attributes which describe the product in terms of objective, physical, and tangible attributes (Hall, 2008). Symbolic characteristics are described as the opposite; non-product related attributes which describe the product in terms of subjective and intangible attributes (Hall, 2008). Symbolic attributes are linked to self-identity, self-image, and self-expression (Grubb & Grathwohl, 1967; Lievens & Highhouse, 2003). Lievens and Highhouse (2003) determine that consumers buy products not only for the instrumental attributes but also for their symbolic meanings. When the instrumental attributes between brands are limited, the importance of the symbolic attributes increases. Similarly, differentiation on symbolic brand personality is often easier and more effective than differentiation on instrumental dimensions (Plummer, 2000).

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3.1.2 Branding and Differentiation Creates Value for the Consumer Branding is a way of creating value for the consumer. Imagining the value of the brand as the difference between what a consumer will pay for a branded product and a physically identical product without the brand culture (Holt, 2002). Measuring perceived value can be difficult. (Kotler et al., 2005 p. 684-685). In value-based pricing, the firm sets its price according to customer perceptions of the value of the product. It is important that the firm finds out what value a customer assigns to different benefits and offers (ibid). The difference in value between the branded and the generic product is explained by various aspects, two of them being experiential value and symbolic value (Holt, 2002). The former refers to firms seeking to highlight benefits delivered by the product, which then guides the consumer when choosing products. The latter refers to brands acting as symbols that express values. Holt (2002) argues that marketing strategies begin with the value proposition. That is, the various types and amounts of value that the firm wants consumers to receive from the market offering. The value proposition can also be referred to as the positioning statement. Sometimes it is assumed that if a firm builds a better product, the consumers will also experience it as an improved product. However, marketing emphasizes that customer value is perceptual and not objective. Branding provides an opportunity for the firm to shape the customers perceptions; thereby it also creates a window to influence the perceived value of the product. Consumer goods of today are powerful markers to express identity, status, lifestyle and political view (Holt, 2002). Holt (2002) also encourages thinking about the brand as the culture of the product. Thus, a product acquires brand meaning and culture over time, as these meanings will be accepted as truths about the product. Furthermore, this suggests that a newly introduced product is devoid of meaning and therefore lacks a brand culture. This is also what makes branding a powerful tool the culture, stories and associations that are linked to the brand become conventional, everyday truths that are continuously reinforced. This knowledge also explains why brands are durable. According to Levitt (1980) there is no such thing as a commodity. Differentiation is most readily apparent in branded packaged consumer goods; in the design, operating character, or composition of industrial goods; or in the features or service intensity of intangible products. In short, the offered product is differentiated, although the generic product is identical to other products. When !
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the generic product is undifferentiated, the offered product makes the difference in attracting consumers and the delivered product in keeping them. However, differentiation is not limited to giving consumers what they expect. What the consumers expect can be augmented by things the customer didnt think about herself before noticing the benefit when using the product. "Consumers attract value to a product in proportion to its perceived ability to help solve their problems or meet their needs. All else is derivative" (Levitt, 1980 p. 3). The product is what the product does; it is the total package of benefits the customer receives when he buys" (Corey, 1975 p. 122). However, not all consumers under all circumstances can be attracted by an ever-expanding bundle of differentiating value satisfaction. Some consumers may prefer lower prices to product augmentation. Chryssochoidis (2000) discusses what differentiates organic food from conventional food. The author argues that organic food may be a type of product possessing the characteristics of a high differentiation. Sashi and Stern (1995) mean that organically produced products can be regarded as differentiated products since the production method provides the products with characteristics that are different from conventional counterparts. Furthermore, Holt (2002) argues that it is a common mistake to consider the brand as the frosting on the cake. In other words, the brand delivers value beyond the actual product. It would be more correct to refer to the brand as a frame through which the consumers value and experience the product. This way the brand enhances the consumers experience of the product and emphasizes existing value of the product, however this is always subjective. All together, branding can create a competitive advantage. An argument for this is that as consumers we seek to minimize and simplify our thinking that comes with making good choices. If we determine that a brand culture works for us, we are reluctant to seek out new alternatives (ibid). 3.1.3 Consumer Confusion over New Market Entrants For a new product category, where consumers have little product experience, relationship and quality is of high importance (Holt, 2002). Consumers usually reduce their cognitive demands of processing new information by relying on previous learning (Fiske & Taylor, 1984). According to Carpenter and Nakamoto (1989; 1994) consumers are confused about which unique characteristics many late introduced differentiated products possess. This depends largely on human limitations related to how consumers are able to process information regarding products that enter the market !
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later than their competitors. Chryssochoidis (2000) means that organic food is an example of a late introduction compared to the established conventional food. The result of his study suggests that consumers' limited prior knowledge about possible differentiation between conventional and organic food may have made them insensitive to differences and unwilling to learn about these differences altogether (Chryssochoidis, 2000 p. 707). Carpenter and Nakamoto (1994) mean that organic products possess characteristics different from conventional food and that this makes consumers compare newly introduced products to existing brands. According to Dens and De Pelsmacker (2010) newly introduced brands are less positively evaluated than brand extensions. Therefore, a viable strategic option when introducing new products to the markets is to do it in the form of a brand extension (Dens & De Pelsmacker, 2010). Because of the uncertainty and limited prior knowledge that some consumers experience regarding the differentiation between conventional and organic products, consumers become indifferent to these possible differences (Chryssochoidis, 2000). Consumers may in fact use conventional food as the baseline for comparison with organic food (Carpenter & Nakamoto, 1989; 1994). For a new category, where consumers have little product experience, relationship and quality is of high importance (Holt, 2002). The findings of Chryssochoidis (2000) support these arguments. It is likely that the respondents of the latter study were victims of self-invoked confusion regarding organic food. Peattie (1990) states that consumers think of organic food as something desirable, but due to various! reasons, such as the products being new to the market and a heterogeneous and indistinct labeling, very few of them truly understand what the term organic means.!! 3.1.4 Discussion: Creating Value for the Green Consumer With the difference between intention and the actual purchasing behavior being the starting point, and with several authors noting that an environmentally conscious behavior (Hartmann & Apaolaza Ibez, 2006; Finisterra do Pao et al., 2009; hman, 2010) is not the same as putting this to action, you can question what it is that consumers who actually are buying socially responsible FMCG products are seeking? Hartmann and Apaolaza Ibez (2006), Belz and Dyllik (1996) and Hardin (1968) highlight something very important and that is when the individual consumer considers purchasing a green product, the main added value in a product like that is that it doesnt harm the environment to the same extent as a conventional product. But for the purchase to truly help the environment to any considerable extent, it demands that a majority of consumers

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make the same types of decisions. If there are no other benefits attached to the products, benefits that the consumer perceives as superior over the conventional one, it is very likely that the consumer cannot comprehend what value he or she is paying for, as the benefit of being environmentally friendly does not add any value to the individual herself. Compare for example with paying a premium price for a high safety car. Here the buyer will receive higher safety something that benefits the consumer on an individual level. As Hartmann and Apaolaza Ibez (2006) mentioned, it is therefore a major issue in marketing to determine what kind of benefits and values consumers attach to these green products. But there are obviously some consumers who still think that being altrustic give them enough value; donating the value they pay for to a greater good, as Finisterra do Pao et al. (2009) discuss. If the consumer is defined as someone who is information and knowledge seeking, consumer education and marketing for a specific product coupled with Corporate Social Responsibility actions could be measures to increase sales of socially desirable FMCG. For example, for every product sold we (the firm) plant a new tree in the rain forest. This would send a clear message to the consumer regarding what kind of environmental improvement the consumer is contributing to. Obviously, consumers buy socially desirable FMCG today. It is important to determine who these consumers are, especially when the objective is to decrease the gap between intention and purchase, as this is likely to lead to higher sales. Therefore, if we know who the present consumer is, we also can define who the present consumer is not. Is it for example possible to target other segments through emphasizing or adding other benefits that add value to the individual consumer? Except considering additional segments to target, the management of the existing target segment (that already includes the most environmentally conscious consumers) could also be improved. The target segment should also be carefully analyzed, using both demographics and psychographics. If the findings of Finisterra do Pao et al. (2009), are transferrable to the rest of the western worlds population, this means that 35 percent of the population are presumptive consumers for organic products. At this moment this presumptive segment is not fully exploited because it has further market potential, also in relation to the numbers presented in the introduction of this thesis. Another important topic for management of firms producing socially desirable FMCG should be to consider which specific reasons there are to purchase socially desirable products and there are several reasons (i.e. Hall, 2008). That lifestyle, emotional

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fulfillment and societal status can be drivers behind intentions to purchase socially desirable FMCG, was explained in the introduction (hman, 2010) and later in the theory chapter above (Hall, 2008). Therefore it is very likely that consumers are attracted by the opportunity of confirming to themselves that they are good and moral persons that take responsibility. It may be even more likely that purchasing these kinds of products gives the consumer a feeling of improving its image towards other people, as buying these products is considered socially desirable by most people. In that sense, Katz (1960) is correct when referring to maximizing benefits and minimizing costs. For the consumers that primarily purchase for image reasons, this could very well be true. They pay a premium for the benefit of maintaining or building an image. This is in line with what Grubb and Grathwohl (1967) and Lievens and Highhouse (2003) conclude: Consumers purchase products not only for instrumental reasons but also for symbolic, emotional reasons. Since there are few tangible differences between socially desirable products and conventional products (what truly differs is the production method, not taste or another sensory experience), emphasizing the more symbolic attributes could be a solution in line with Lievens and Highhouse (2003) and Plummer (2000). Considering other aspects which have been presented in the chapter above, such as the consumers need to be convinced that buying the products will lead to environmental improvements, or at least not environmental degradation (Straughan & Roberts 1999), this definitely should have marketing implications. Raising awareness within the management of the firms producing socially desirable FMCG for these issues is necessary, and should help the firm in creating a viable marketing strategy. When discussing how the producing firm can create value and thereby attract consumers, it is unavoidable to get into the subject of brands and differentiation. As Holt (2002) states, the brands value is defined as the difference in price between what the consumer would pay for an unbranded product and the branded version. In this case, finding out what the consumers are willing to pay for an intangible benefit such as perceiving oneself as being moral is important. It is likely that it is difficult for a firm producing socially desirable FMCG to determine how much the consumers are willing to pay since consumers tend to underestimate what they need to pay for a product like this and overestimating the value they assign to the product. Therefore, it is likely that those consumers would say that they are willing to pay a higher price than what they actually are. To circumvent this problem, again adding value through marketing could make the consumer more willing to pay a premium price. Creating a powerful brand culture (Holt, 2002) should for example !
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increase the amount the consumer is willing to pay, without a tangible benefit being added to the product. Branding is also a way of answering to the symbolic sought benefits such as lifestyle and status markers. In a successful brand culture, these types of benefits are naturally developed; it might even be that a fan club among consumers is created for the brand. Incorporating the benefits that the consumers are seeking into this marketing strategy should be a successful recipe. This should also be included in the value proposition. As mentioned by Holt (2002) it is the consumers subjective taste that determines whether a product is improved or not. Actual adding more nutritional content or better flavor does not necessarily mean that the consumers will think about the product as improved. Therefore strongly communicating the improvement after careful research of demanded benefits is recommended. What truly separates conventional products from their organic counterparts is the production method (Chryssochoidis, 2000). This should be considered the most basic p-o-d (point of differentiation) of socially desirable purchases. It could also be more to it as the production method can bring more emotional values. Augmenting the product above the expectation of the consumer through branding and emphasizing other benefits could attract more consumers. The extra value that the consumer seeks; beyond contributing to the the common good can in some instances be a wish to augment ones personal brand image, consciously or unconsciously. Solving this problem for the consumer who feels guilty, will be like delivering a psychological guilt-free service, buy me and you are a good person. If a firm producing FMCG that are socially desirable can manage to create and deliver benefits through marketing that are beyond what the consumer expects and through this create a differentiated brand, it is also likely that the firm will have sustainable success as brands are durable, and socially desirable brands are likely to be even more sustainable. Some of the theories researched (Fiske & Taylor, 1984; Carpenter & Nakamoto, 1989;1994; Chryssochidis, 2000) discuss if socially desirable FMCG can be considered new to the market. If they can, this is likely to have an influence on why there is an ambiguity and confusion regarding different labeling practices. Are socially desirable products really new to the markets? Considering that they still represent a very small share of all products sold and that conventional products have been on the market for longer, yes, they could be treated as a late entrant. According to the previously mentioned authors, consumers might find these organic products hard to define and

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have a limited capacity and willingness to compare these products with conventional ones. This is definitely an issue that needs to be dealt with, from the producing firms perspective. A suggestion would be to focus on consumer education and to work with industry organizations to create a more clear-cut labeling system. Another solution would be to look into what Dens and De Pelsmacker (2010) discuss, and that is to use existing conventional brands and make socially desirable brand or product extensions, that can deliver the values of the conventional brand which will easier be for the consumer to process. For a firm producing socially desirable FMCG, this could be done through liaising with more established firms. Nonetheless, this should be done with care so that the authenticity of the values delivered of the socially desirable differentiation is not threatened. 3.1.4.1 Propositions P1: Increased use of psychographics when defining target segments of socially desirable FMCG will lead to increased sales. P2: Emphasizing symbolic values in branding of FMCG which are socially desirable will increase sales. P3: Firms producing socially desirable FMCG that stress individual consumer benefits through marketing will increase sales.

3.2 Decision-Making Behavioral Aspects

To be able to increase sales of socially desirable fast moving consumer goods, it is crucial to understand how consumers think. In this part, theories about consumers decision-making process from a behavioral perspective will be examined. 3.2.1 Different Perspectives when Studying Decision-Making Extensive research has been conducted within the field of decision-making in order to better understand consumer choice processing (e.g., Kollat & Willett, 1967; Olshavsky & Granbois, 1979; Hoyer, 1984; d'Astous et al, 1989; Ji & Wood, 2007; Shao et al, 2008; Irwin & Naylor, 2009; Nordfelt, 2009). Decision-making can be studied from two perspectives; either by studying inner motivational factors or by studying outer/environmental motivational factors. An example of the first mentioned perspective could be to observe how customer characteristics or other underlying drivers are affecting decision-making (Essoussi & Zahaf, 2008; Inman et al, 2009). The latter perspective could be studied through measuring factors such as how much time the !
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consumer spent considering buying each brand in the choice process, number of packages picked up (Hoyer, 1984; d'Astous et al, 1989) or in-store displays (Inman et al, 2009). In order to understand decision-making it is important to consider a range of various aspects, such as attention, memory, cognitive representation, conflict, learning and feedback (Einhorn & Hogart, 1981). A potential problem when studying decision-making is that underlying assumptions may affect the outcome of the research (Einhorn & Hogart, 1981). There is an individual cost-benefit analysis inherent in human decision-making. The consumer will behave in an environmentally friendly way if that behavior generates a sufficient benefit with regards to the higher price point that green products is likely to have (Hartmann & Apaolaza Ibez, 2006). 3.2.2 The Purchase Decision Planned or Unplanned A purchase decision can be either planned or have more of an impulse character. According to Stern (1962), in particular nine factors are influencing impulse buying: marginal need of product, mass distribution, mass advertising, self-service, short product life, low price, a good store display, small size or light weight. However, the author concludes that impulse buying in essence is irrational. Therefore, impulse buying is impossible to influence (ibid). Research conducted later points in the opposite direction (Olshavsky & Granbois, 1979; Inman et al, 2009; Nordfelt, 2009). Inman et al (2009) found that in-store displays can have a high impact on unplanned purchases, especially for products that are purchased relatively often. Also, the likelihood of unplanned purchases increase with time spent in store, when stores accept check and credit cards but also when the consumers are familiar with the store (Inman et al, 2009). Heilman et al (2002) found that shoppers who received surprise-coupons (for example peel-off coupons) increased their level of unplanned purchasing. Consumers who planned to buy a product often purchased an increased quantity if it was a couponed item (Heilman et al, 2002). According to the Stilley et al (2010), every customer has an in-store slack in their mental budget for making unplanned purchases. Stilley et al (2010) found that savings on planned items created a windfall effect that resulted in purchases of unplanned products increasing to a greater effect than the savings of the planned products. In general, the effect of in-store savings depends on if they appear before or after the customer's slack is depleted. If savings appear before the slack is depleted, it results in stockpiling shopping by high-income consumers. If savings occur after the slack is depleted, it will result in increased purchase of unplanned products (Stilley et al, 2010).

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3.2.3 High-Low Involvement in Decision-Making According to Mittal (1989), the degree of involvement in the purchase decision depends on the consumers interest and concern for the product. Mostly, consumers are interested in what they buy and want to make a good choice. However, the consumers might have either high or low involvement in the purchase, depending on the context (Mittal, 1989). Typically, inexpensive products are characterized by low involvement even though it might differ depending on if the product for example is intended to be a gift (Michaelidou and Dibb, 2008). In that case, it might be a high-involvement product, regardless of the price. In Mittals (1989) definition of involvement, four aspects are considered: 1) How much the consumer cares about the brand or type of the product to buy; 2) The perceived difference between the types and brands of the product; 3) How important it is to choose the right product and 4) How concerned the consumer is with the outcome of the choice (Mittal, 1989). Generally, FMCG are seen as low involvement products (Knox & Walker, 2001; Ozretic-Dozen, 2007). This is in line with a study by Hoyer (1984) who found that consumers which are purchasing FMCG are making an extremely quick decision. Approximately 70 percent of the consumers in his observation study did not examine more than one package. The pre-purchasing evaluation was more or less non-existent. Consumers mostly did not compare brands, nor did they examine the shelf-tag (Hoyer, 1984). However, if product performance was important for the consumer, brand-loyalty increased. Normative users tended to pay more attention to packaging information than price. 3.2.4 Where the Decision-Making Takes Place A study by Hoyer (1984) found that consumers are making many of their decisions outside the instore situation. d'Astous et al. (1989) performed a follow up-study on Hoyer (1984) but it was conducted on products that were common but less frequently purchased. The authors concluded that in-store decision-making is more difficult when the product is more important and purchased less frequently. Affect, performance and normative reasons were more important and price less important than in Hoyers study (dAstous et al, 1989). There is no consistent decision process across all choice contexts. However, the results from Hoyers study (1984) conflicts with other studies. According to Inman et al. (2009), 45 percent of all purchasing decisions are made in-store. Two other studies found that approximately 60 percent of the purchasing decisions by consumers are made in the grocery store (Inman & Winter, 1998; Klabjan & Pei, 2011). A fourth study found that the in-store decision share could be as high as 70 percent (Aldata Solutions, 2007). Olshavsky !
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and Granbois (1979) found that consumers sometimes not make a decision neither in-store nor outside the store. Instead, their conclusion was that a decision process many times never exists, not even on the first purchase, since consumers may rely totally on the recommendation from a sales person. However, they also state that it might be an oversimplification to say that a prepurchasing evaluation occurs or does not occur. It might also be a hybrid-decision; for example a combination of limited amount of research and a recommendation from a sales person. 3.2.5 Discussion: Decision-Making According to Hartmann and Apaolaza Ibez (2006), consumers will behave in an

environmentally friendly way if the benefit outperforms the cost. The question is, how is it possible to influence consumers to perceive that this is the case? From the consumer perspective, the benefit is easily measured in money but it is more difficult for the consumer to measure the positive effect on the environment. Most of us have intentions to be environmentally friendly but the process of getting there can be seen as un-desirable. As hman (2010) states, social pressure is an important factor for buying socially desirable FMCG. Marketers should use this knowledge in various ways; for example creating online communities or clubs for consumers shopping a certain amount of their socially desirable products. Translating what social pressure means to the consumer; the consumer wants social recognition and attention for shopping in a socially desirable way. That would give the consumer the benefit and the affirmation of doing the right thing. One way that the firm can deal with this is to concretize this benefit to the consumer by giving away marketing materials that clearly state that the owner of this bag is a responsible consumer. This would function both like a treat and an affirmation for the consumers that shop a certain amount of the firms socially desirable FMCG. Moreover, the product design of the package should clearly display that this is a socially desirable FMCG. This can also be done through labeling. This would make it easier to show other people that the consumer cares about the environment.
Previous research has found that shoppers which receive in-store coupons are more likely to increase their level of unplanned purchasing. Other research has shown that promotion campaigns do not work well for socially desirable FMCG since consumers expect these types of products to be more expensive. Therefore it is questionable if in-store surprise coupons for socially desirable FMCG would lead to an increased level of sales of these products. !
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Theories about high and low involvement in purchase situations show that FMCG could be related to the latter type of low involvement (Knox & Walker, 2001; Ozretic-Dozen, 2007). Purchase decisions of FMCG are typically performed quickly and in-store. (Hoyer, 1984). Existing research studies found that between 45 percent and 70 percent of all purchase decision of FMCG are made in-store. However, it is questionable if socially desirable FMCG follow traditional FMCG characteristics as low-involvement products. Is the purchase of a socially desirable item really a low-involvement decision that the consumer makes quickly or is it a decision taken outside the store setting that is based on long-term ideology and beliefs? Maybe the purchase of FMCG that are socially desirable initially could be seen as a high-involvement decision. However, gradually it moves from high-involvement toward becoming a low-involvement decision when it becomes more of a habit for the consumer to purchase socially desirable FMCG. If the purchase of FMCG that are socially desirable initially are more of a high-involvement product, it is likely that the consumer has planned the purchase to a higher extent than for traditional FMCG. Maybe the consumer hasnt decided exactly which socially desirable FMCG to purchase but there is a higher chance that she has decided that the purchase should be socially desirable. If the decision is made outside the store, then the greatest chance of influencing the consumer is also outside the store. A high involvement consumer might have it in her culture to always or to a high extent buy socially desirable purchases, non-depending on price and in-store display. It could be part of this consumers beliefs and ideology. This suggests that more long-term marketing efforts such as brand building in some cases can be more important than in-store marketing when it comes to FMCG that are socially desirable. Olshavsky and Granbois (1979) found that consumers sometimes make a hybrid- decision where a part of the purchase decision is based on a recommendation from a sales person. Therefore, the authors of this paper argue that if the in-store staff is better educated in the production processes of FMCG that are socially desirable, sales of these products will increase. The reasoning behind this is that if the socially desirable companies come to the stores to arrange educational clinics, the in-store staff will increase their understanding of the production processes. Through an increased understanding, the staff to a higher extent will work as spokes persons for FMCG that are socially desirable and spread the word to their consumers. In turn, this will drive sales of socially desirable FMCG.

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3.2.5.1 Propositions P4: The consumer initially makes a high-involvement decision when purchasing FMCG that are socially desirable. P5: Purchase-decisions of socially desirable FMCG are made outside the store to a higher extent than more conventional FMCG. P6: When in-store staff is educated on socially desirable FMCG, sales of these products will increase.

3.3 In-Store Marketing

In this section, existing theories of the opportunities and challenges for in-store marketing will be covered. In-store marketing can be an important tool of a marketing strategy to improve sales. 3.3.1 Harsh Competition Calls for Improved In-Store Execution The increased competition between grocery stores have forced them to focus more on in-store merchandising and promotion strategies to keep improving their sales. (Kumar et al., 2006). For example, they need to pay attention to price decision, aisle settings and display placements (ibid). Since shoppers around the world spend millions of minutes in stores each year, the in-store exposures may be seen as a great advertising opportunity for storeowners (Sorensen, 2009). The advertiser's main task is to accelerate sales in the shopper space, without increasing the efforts from the shopper. In this case, the effort can be seen as how much time it takes for the shopper to finish a purchase (Sorensen, 2009). 3.3.2 Factors that Affect the Consumers Choice of Socially Desirable FMCG In-Store Ngobo (2011) researched what the drivers are behind households choosing organic products in grocery stores. Organic products are also credence products (Nelson, 1970) and mostly it is hard for consumers to evaluate those. The purchase of organic products can therefore be seen as a risky decision. Under uncertainty, consumers often rely on different information signals (ibid), such as price (Dodds et al., 1991) and brand name (Erdem & Swait, 1998). In the study of Magnusson et al. (2001), a very high share of the respondents claimed that it was tricky to know whether many of the products in-store was organically produced or not, which is also a sign of uncertainty. For uncertainty reasons, consumers negatively perceive products that have been distributed over long distances (Ngobo, 2011). Therefore organic store brands are often more popular than national !
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brands (ibid). A reason for that is when large firms start to offer organic product lines, there is a risk that many consumers start to doubt the authenticity of the organic label (Hughner et al., 2007). For regular non-organic products, the situation is the opposite; here national brands often steal market shares from lower-priced store brands (e.g., Blattberg & Wisniewski 1989; Sethuraman et al., 1999). A study conducted in California concluded that a major purchase constraint was the price level (Jolly, 1991). This is in line with the findings of Magnusson et al. (2001). On the other hand, consumers perceive price as a quality indicator for the organic product. Blattberg and Wisniewski (1989) studied how price changes affected brand competition for low- and high-tier brands. They found that low-tier brand mostly do not affect upper-tier brands, mainly because consumers perceive a quality difference that is enough to preserve a difference between the low- and uppertier segments. However, price changes for upper-tier brands will affect brands that are in the same price range but it might also affect lower-tier brands. Therefore, the competitive effects might be asymmetric; one brand might a strong competitor for a second brand but the second brand will not affect the first brand (ibid). Chandon et al. (2009) found that the price of the product did not have any impact on the attention but more expensive brands tend to be recalled and considered to a higher extent than low-price brands. When advertising levels are high, consumers more often use performance related tactics than price related tactics. Instead, price tactics were increasingly used when the consumer perceived the brands as more similar (Hoyer, 1986). According to Jolly (1991), the time it takes to search for organic products in-store is a reason for not buying organic. Better product information would also be desirable (Zanoli & Naspetti, 2002). Chandon et al. (2009) found that attention the consumer pays in-store is often limited. However, when consumers do pay more attention it will often also increase consideration and choice for new brands. 3.3.3 Increased Sales through Aisle Placement The most commonly used purchasing strategy by consumers is to take the shortest route from one aisle, when finished the last required category purchase there, to the next aisle she must visit (Klabjan & Pei, 2011). To increase the number of impulse purchases, frequently purchased products should be placed tactically so consumers have to pass as many aisles and product categories as possible (Inman et al, 2009). Two factors that affect shopping are; 1) how easy it is !
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to find the products in the store and 2) which product is the best choice (Sorensen, 2009). To respond to these two factors, interactive digital in-store media such as hand-held shopping assistants is one way to increase shopping efficiency and total sales (Sorensen, 2009; Klabjan & Pei, 2011). This kind of technology will increase impulse buying since shoppers are routed to certain locations in the store, based on their previous purchases (Klabjan & Pei, 2011). This guidance will help the in-store consumer quickly find suitable products. When it is possible to track shopping carts, an advantage for the consumer will be that no duplicate coupons will be issued to the same consumer (Klabjan & Pei, 2011). The aisle management strategy is important when considering improvements of cross-category product sales and retails can benefit a lot from effective aisle management decisions (Bezawada et al., 2009). Improvements of cross-category aisle management could for example be to place softdrinks closely to potato chips since the placement of related products often will drive sales for both product categories. According to Bezawada et al. (2009), aisle placement can affect sales just as much as more traditional marketing-mix variables such as price, product feature or display. Therefore, both retailers and manufacturers should consider aisle placement as a way to increase in-store sales. Manufacturers should coordinate marketing programs and cooperate with retailers to improve cross-category sales. As a result, sales will accelerate and this is the main purpose of in-store advertising (Sorensen, 2009). 3.3.4 Discussion: In-Store Marketing Most of the authors of the literature reviewed in the section for in-store marketing seems to agree that consumers look upon organic products with uncertainty and that they lack information and guidance. According to the study by Magnusson et al. (2001), consumers claimed that it many times was hard to know whether products were organically produced or not. According to Hughner et al. (2007), many consumers doubt the authenticity of national organic labels, since they expect that these products have been distributed over long distances. It is even more important for these companies to inform consumers of why their products are organic. Jolly, (1991) suggests that the time it takes to search for organic products is a limitation that prevents them for purchasing organic products To reduce this kind of confusion, it is crucial that the product information of socially desirable FMCG is very apparent in-store. Consumers need clearly visible information of why they should purchase socially desirable FMCG instead of traditional

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FMCG. This is especially important to attract consumers that are not consumers of socially desirable FMCG today. Digital handheld shopping assistants could be a way of guiding the consumer to the spots in-store where socially desirable FMCG are placed. The aisle placement will also affect how easy it is for consumers to find products in the store (Sorensen, 2009). Therefore, the producers of socially desirable FMCG should try to persuade storeowners to arrange the store interior in a way that makes it easy for their consumers to find the socially desirable FMCG that they are looking for. This is probably not easy since the storeowner is likely to have other objectives than increasing sales of socially desirable FMCG in particular. Some authors i.e. Jolly (1991) found that a major constraint to purchase organic products is that the price is perceived as too high. Other research indicates the opposite; consumers expect that socially desirable FMCG cost more than traditional FMCG and that they also see the price as a quality indicator (Dodds et al., 1999; Ngobo, 2011). Consumers also tend to better recall products that have a higher price (Chandon et al., 2009). Therefore it might be a mistake to sell socially desirable FMCG at a discount. In general, consumers simply expect these kinds of products to be more expensive. There will always be more price-conscious consumer segment in the retail market but one of the tasks marketers of socially desirable FMCG stand in for is to define the right segments to target, and the price-conscious segment is probably not one of those. Price cuts might not even be possible anyway due to the likely more expensive production procedures of socially desirable FMCG. Price tactics are more commonly used when consumers perceive brands as more similar (Hoyer, 1986). However, it is doubtful if price tactics should be used for socially desirable FMCG since consumers probably perceive them as different from traditional FMCG already. Therefore, the authors expect that price tactics might be used between different socially desirable FMCGs, but not between socially desirable and non-socially desirable FMCGs. Bezawada et al. (2009) determined that the placement of related products, products which are likely to be consumed on the same occasion, should be placed closely to each other to increase sales. This should have implications on how socially desirable FMCG are placed on the aisles. As mentioned previously in this section, according to previous research consumers are confused over what socially desirable FMCG really are and where you find them in-store. This could be dealt with in two different way; either all socially desirable products (non-depending on usage situation) are placed in the same section of the store, almost like another store in-store only that only

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contains socially desirable FMCG. In this way, it will be well defined where to find these products. On the other hand, this is not likely to attract new consumers, as entering a complete new section of the store is likely to be easy for the existing segment, but new consumers are likely to be less exposed to socially desirable FMCG than if these products where placed to their conventional siblings (i.e. socially desirable oatmeal next to conventionally produced oatmeal). According to Sorensen (2009) the consumer shop more if it is easy to find the way in-store. As Klabjan and Pei (2011) state, hand-held digital shopping assistants could be a good way for stores to increase sales. The handheld computers could be used to identify which consumers that already purchase socially desirable FMCG when these products are scanned. Based on this information, the shopping assistants then can suggest more options of socially desirable products that could be suitable for each individual consumer. The advantage of this would be that it probably is easier to sell more socially desirable products to someone that already have purchased some, than to someone that has not purchase any socially desirable FMCG at all. However, handheld digital shopping assistants can only work as a good guidance it is still crucial that the instore interior, for example in form of signs, is clearly visible. 3.3.4.1 Proposition P7: Price tactics might be used between different socially desirable FMCG but not between socially desirable and non-socially desirable FMCG. P8: Clear in-store information about FMCG which are socially desirable will help drive sales of these products.

! ! ! ! ! !

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14. FINAL DISCUSSION

In this section, the three different chapters of theory will be linked together and the model of the eight propositions will be presented. The strengths and weaknesses of the model will be discussed. This is followed by further research suggestions.

4.1 Approaching a Model

With this thesis the authors aim to present a model on what existing literature say about how producers of FMCG which are socially desirable can decrease the gap between consumers intention and actual purchase through marketing. To fulfill the purpose, the authors have reviewed and combined existing literature within the fields of consumer value adding, in-store marketing and decision-making. Some highlights of the theoretical discussions earlier in this thesis is presented below. The authors discussed if socially desirable FMCG follow traditional FMCG characteristics as lowinvolvement products. The authors suggest that purchase decisions of socially desirable FMCG initially are high-involvement decisions that often are formed outside the in-store-setting. This suggests that more long-term marketing efforts such as brand building in some cases can be more important than in-store marketing when it comes to FMCG that are socially desirable. However, socially desirable FMCG might gradually change into becoming low-involvement when consumers have formed a habit to purchase these types of products. The authors also discussed that symbolic values should be highlighted in branding of socially desirable FMCG. The reason is that since the instrumental differences between FMCG and socially desirable FMCG is limited, it will be more efficient to focus on consumers self-identity, self-image and self-expression to convince them of why they should purchase socially desirable FMCG. Further on, in-store information about socially desirable FMCG is proposed to be important. Not only is it important that producers provide consumers with clear product information about the socially desirable FMCG. It is also crucial that consumers are guided to these products in-store, either through a clear in-store interior or hand-held digital shopping assistants. In the chapter covering theories on in-store marketing, no univocal conclusions could be drawn from existing literature on how the placement of socially desirable FMCG should be done. Therefore the authors of this thesis decided to not present a proposition for this topic. !
##!

Based on the extensive literature review, the authors have developed eight propositions that form the model below (see figure 1).

Figure 1. Model

In the model, all of the propositions together eventually will increase sales of the total potential consumer market. The model should not be seen as neither complete nor an image of reality, because it has not been tested empirically and because all fields of marketing are not covered in this thesis. For producers of socially desirable FMCG who wish to increase sales, they either need to sell more to existing consumers or attract new consumers. Either way, consumers will be the focal point. In this model, the authors have illustrated that by placing the total potential share of consumers in the middle of the figure. Each single activity, expressed as propositions, have the potential to transform consumer intentions to purchase socially desirable FMCG into actual purchases. If a proposition would be completely fulfilled, it would equal a piece of the total potential consumer segment (the pie). However, it is unrealistic to expect all propositions to be fulfilled at the same time. Instead, the reader should view the model as propositions of which areas

#$!

that are of importance to decrease the gap between purchase intention and actual purchase. A shortcoming of the model is that all propositions seem to contribute equally to the improved share of total potential consumer market. Most likely, this is not the case.

4.2 Further Research Suggestions

Except using the model of this thesis as the backbone for empirical research more theoretical approaches are also suggested. It is likely that a more extensive study will result in more or different propositions. Further research of areas of marketing not covered in this thesis would probably provide this field of study with more and new perspectives. As mentioned in the section covering delimitations, this thesis have chosen to focus more on in-store marketing than on other marketing channels, such as TV advertisements and on-line marketing. Further research on what kind of marketing activities that really are the most efficient for socially desirable FMCG is welcomed. These subjects have only been touched lightly upon in this thesis, for example the importance of long-term brand building. It can also be further investigated how and if aisle management can be of importance for increasing the sales of socially desirable FMCG, since this thesis could not present an unambiguous conclusion in this area. To test the model empirically, research is needed for each proposition separately. This can be performed either in one single study but it might also be possible to divide the research into several studies where each study focus on different propositions. If that is the case, it is also needed to perform a sum-up-study that will conclude all the propositions. Eventually, the model needs to be modified since empirical research might suggest different solutions to increase total sales.

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REFERENCES

..

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.APPENDIX
!

Table 1. Compilation over Reviewed Articles

Author Found through Topic Analysis/Conclusion
The greatest similarity of underlying drivers between the UK and Germany was found to be "health and enjoyment". The greatest difference between the countries were found in the perceptual orientation connected with nature of the environment. The article suggest sthat consumers may derive selfexpressive benefit from the socially visible consumption of green brands. Therefore, the perceived individual customer benefit might not be a sufficiently powerful motivation to green purchasing. The aisle management strategy is important and retails can benefit a lot from effective aisle management decisions. Aisle placement can affect sales just as much as more traditional marketing-mix variables. Low-tier brand mostly don't affect upper-tier brands. However, price changes for upper-tier brands will affect brands that are in the same price range but it might also affect lower-tier brands. The article suggest that the first mover advantage, under certain conditions depends on biases in buyers' preferences arising from the preference formation process. The authors suggest that marketing strategy influences the evolution of consumer preferences. The article implies that preferences are shifting so that simply responding to consumer preferences might not be enough. The authors found that in-store marketing works better towards well-educated, young and opportunistic customers. Instore marketing will work as a way to increase sales, at least to a certain extent.

Other

Baker et al. 2004

Essoussi & Zahaf 2008

Underlying drivers of food choice values in Germany respectively in the UK.

Not chosen for this thesis.

Belz and Dyllik -1996

Hartmann & Apaolaza Ibez 2006

Article concerns positioning strategies for ecological products. It also discusses what kind of individual benefits the consumer is seeking.

Bezawada 2009

Business Source Premier

How display- and aisle settings are affecting in-store sales.

Blattberg and Wisniewski 1989

Bezawada - 2009

How price changes affect brand competition

Carpenter & Nakamoto 1989

Carpenter & Nakamoto - 1994

The authors discuss if it is difficult for later entrants to "compete away" the pioneer's large market share.

Carpenter & Nakamoto 1994

Business Source Premier.

This article continues the discussion of their work in 1989 (mentioned above)

Chandon et al 2009

Business Source Premier

Discussing if in-store marketing works

$+!

Author

Found through

Topic
The article is trying to determine which the repercussions of the confusion of late introduced differentiated products such as organic products are. Case study of Crown, Cork and Seal Aluminium Company of America to illustrate that marketing strategies are not onedimensional in reality. What type of decision processing that occurs when consumers are making a choice for a common but less frequently purchased product To comment on Einhorn & Hogarth's (1981) article. Investigates interaction effects between branding strategy,, advertising execution strategies and product category involvement (low and high) on consumers attitudes towards the product, purchase intention and the (parent) brand. How buyersperception of product quality and value are affected by price, brand and store information. The article focus o some of the methods of investigating decision-making. Explains the generation of brand equity.

Analysis/Conclusion
Late introduced differentiated products are at a disadvantage compared to existing products in the marketplace as they suffer from consumer confusion regarding what the differentation is compared to conventional products. Formulates a set of questions for the management to ask itself to be able to determine in which segment the product concept in question has most value to the end-consumer. The study shows that in-store decision-making is harder when the product is more important and purchased less frequently.

Other

Chryssochoidis - 2000

Business Source Premier.

Corey 1975

Levitt - 1980

d'Astous et al. 1989 Demski & Swieringa 1981

hman

Follow-up study on Hoyer (1984)

hman

Dens and De Pelsmacker 2010

Business Source Premier

In general, line extensions of established brands are preferrable over new brands. There are greater differences between advertising appeals in both low- and highinvolvement conditions for new brands than for brand extensions. Price has a positive effect of how buyers perceive the quality of the product. Favorable brands are perceived as being of better quality. Attention, memory, cognitive representation, conflict, learning, and feedback are important to understand decision-making, Brands are information sources for the customers.Brands may tell consumers something about the product attribute. For a third or the respondents, health was the main reason for purchasing organic products. Price are less important for current buyers and they want that the supply chain for the products should be as short as possible. Consumers who buy green products do so for specific reasons, and that certain environmental and demographic variables are significant for differentiating between the greener segment and other segments. The Portuguese sample did not always translate their environmental concerns into action.

Dodds et al 1991

Business Source Premier

Einhorn & Hogarth - 1981

hman - 2010

Erdem and Swait - 1998

Business Source Premier

Essoussi & Zahaf - 2008

Business Source Premier

Discovering differences in consumers motives that leading to consumption of organic food products.

Finisterra do Pao et al. 2009

Business Source Premier.

Focus on the identification of distinct market segments for environmentally friendly products in Portugal.

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Author
Fiske & Taylor - 1984

Found through

Topic
This a book, therefore the whole of it has not been reviewed but parts of concerning on how consumers react to new information. The authors briefly review research and lay theoretical foundations of consumer behavior based upon an individual's self-conccept and the symbolic value of the goods she buys. The article looks at organics from an instrumental/symbolic perspective and discusses the marketing implications associated with this perspective. Covers the the tragedy of the commons which means that people often act out of a short-term personal goal. This might harm the collective in a long-term perspective. The article discusses the role of emotional benefits, particularly those based on the hypothetical human affinity with nature, and is a reasoning paper rather than an empirically tested study. What impact that in-store coupons have on the shopper's total basket of purchase The case material concern branding and the importance of brands. Furthermore, the importance for marketers to create a strong brand culture is emphasized. What type of decision processing that occurs when consumers are making a purchase choice for a common, frequently and typically low-involvement purchased product

Analysis/Conclusion

Other

Chryssochoidis - 2000

N/A

Grubb & Grathwohl 1967

Business Source Premier.

Because the self-concept is of value and of central importance to the individual, she will direct his be- havior to maintain and enhance his self-concept. Marketers need to take a very broad perspective when trying to understand organics and they need to decide which aspects of brand image they want to try to develop and the implications of doing so. The concept of the tragedy of the commonsexpresses how the motivation for the individual to act out of a long term environmental goal to support more the collective is low. This is because the reward or benefit of paying the higher price will happen in the future or not at all. The key challenge for green marketers is to strengthen individuals perception of the individual benefits to be gained from going green by adding more and stronger emotional values to green brands. Shoppers who received surprise-coupons increased their level of unplanned purchasing. Customer who planned to buy a product often purchased an increased quantity if it was a couponed item. Branding provides an opportunity for the firm to shape the customers perceptions; thereby it also creates a window to influence the perceived value of the product. In general, customers that are purchasing FMCG are making an extremely quick decision. A large portion of the decisions are made outside the in-store situation. There are no consistent decision process across all choice contexts. When advertising levels are high, consumers more often use performance related tactics than price related tactics. When the perceived similarity between brands was high, price tactics was more commonly used.

Hall - 2008

Business Source Premier.

Hardin - 1968

Sustainability class at the University of British Columbia

Hartmann & Apaolaza Ibez -2006

Business Source Premier.

Heilman et al 2002

Business Source Premier

Holt - 2002

Brand Management class at University of British Columbia.

Hoyer - 1984

hman - 2010

Hoyer - 1986

hman - 2010

To what extent various aspects of the task influence consumers to employ a particular type of choice rule or heuristic.

$"!

Author

Found through

Topic

Analysis/Conclusion
Parents to young children are more likely to purchase organic grocery products. In general, young people tend to have a positive attitude to organic food but older people are the most likely purchasers. The results show that coupon useage decreases the likeliness of unplanned purchasing. Instore decision-making is affected by gender, household size and store familarity. Ethical attributes were weighted more by participants in exclusion mode than in inclusion mode. Ethical attributes are, according to the respondents, more justifiable and morally relevant in exclusion than in inclusion. The conclusion from this article is that customers often repeat habits in daily life even if they reported intentions to not do so. Intentions only guided behavior in absence of strong habits. In other words, what you say you do is many times not the same as what you actually do The price and search cost are important constrains for customers to purchase organic products. People with a high income were more likely to purchase organic products. The author outlines the basic notion of that people hold attitudes toward objects, events, issues and behaviors for various reasons. That is, attitudes fulfill functions for the individual, such as maximizing rewards, expressing one's values, etc. Use the digital shopping assistant to provide customers with digital coupons. An advantage for the customer will be that no duplicate coupons will be issued to the same customer. Brand support and brand commitment was found to be needed if loyalty should occur. Four purchasing styles were identified: loyals, habituals, variety seekers and switchers.

Other

Hughner et al 2007

Business Source Premier

Who the organic food consumers are

Inman et al 2009

Business Source Premier

How category characteristics, customer characteristics and customer activities does affect in-store decision making. Research about if consumers weighting of particular attributes differed by response mode, regardless of framing.

Irwin & Naylor - 2009

Business Source Premier

Ji & Wood 2007

Business Source Premier

Research about how customers' habits are following their stated intentions.

Jolly - 1991

Business Source Premier

Differences between buyers and non-buyers of organic products The article concerns the functional approach in the attitude literature. Katz discusses the link instrumental attributes have with the need to maximize benefits and minimize cost and that symbolic characteristics generally correspond to non-product related attributes. To show how one-to-one marketing can be carried out during the shopping experience by using PDA devices.

Katz - 1960 Hall - 2008

Klabjan & Pei 2011

Business Source Premier

Knox and Walker - 2001

Business Source Premier

The role of brand loyalty as a measurement of effective brands marketing.

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Author

Found through

Topic
Discover if certain shoppers are more likely to make unplanned purchases and what kinds of customers that are most susceptible to unplanned purchasing.

Analysis/Conclusion
The buyer's sex doesn't affect the unplanned purchasing behavior. Fill-in trips are characterized by a lower level of unplanned purchasing than major shopping trips. The authors noticed that, in general, the greater number of products purchased, the greater percent of unplanned purchases. Sometimes the seller has the advantage and in this situation the buyer have to apply strategies to be able to achieve the purchase. The authors presents four strategies to overbridge this: through coercion, inducement, education or pursuation. The authors found that CLV increases when the customer stays longer with the store and purchases goods more frequently. Differentation is a very powerful tool in how to customers attract value to a product in proportion to its perceived ability to help solve their problems or meet their needs. All else is derivative "The product ... is the total package of benefits the ciustomer receives when he or she buys" Made us look up the article by Corey Raymond, as the quote seems good.

Other

Kollat and Willett - 1967

hman - 2010

Kotler and Levy - 1972

Business Source Premier

An attempt to explain marketing from the buyer's side.

Kumar et al 2007

Business Source Premier

Discovering how customer lifetime value (CLV) can be determined individually to increase profit in a retail store. The author is discussing in which ways differentation is the key to success in marketing. He is making a difference of the offered product and the generic product. Discusses this through different empirical examples.

Levitt - 1980

Brand management class at University of British Columbia.

Lievens & Highhouse 2003

Hall - 2008

The authors focus on a marketing-based angle to the study of the attractiveness of organizations. Drawing on the instrumental-symbolic framework from the marketing literature.

The study demonstrates that the instrumental-symbolic model provides practitioners with a useful framework.

The article using a different perspective of marketing but considered relavant for this thesis anyhow since it contains interesting reasoning regarding symbolic and instrumental values in brand management.

Magnusson et al - 2001

Hughner et al - 2007

Swedish consumers attitude towards organic food.

Magnusson et al - 2003

Business Source Premier

Attitudes and behavior towards organic foods.

A high percentage of the sample are positive towards organic products but only a minory have intentions to actually purchase organic products. A very high share of the respondents claimed that it was hard to know whether many of the products in-store was organically produced or not. Organic food purchases was found to be strongly correlated to perceived human health benefit. Egoistic motives are important for the choice to purchase organic products.

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Author
Michaelidou & Dibb - 2008

Found through
Business Source Premier

Topic
A literature study of different views of consumer involvement. The author develops a scale of purchase decision involvement. A theoretical model of how consumers quest of quality information of goods.

Analysis/Conclusion
The choice of shopping channel may affect the level of purchase involvement. The scale consisted of four measurements: perceived brand differences, degree of caring, importance of right brand selections, and concern with the outcome. Customers have a basic alternative to search of information; they may use experience. The probability to purchase organic products is higher among the college educated, high income, older families and high-level occupation groups. Customers negatively perceive products that have been distributed over long distances. Store brands are more popular than national brands. The type of shopping trip influences the number of unplanned purchases. In general, it is more likely with unplanned purchases for a fillin trip than for a major trip, mainly because of the time factor. The authors conclude that prepurchase decision-making exist. However, the also found that a decision process in many cases never occurs, not even on the first purchase. The authors found that knowledge about where the brand has its origin has a strong motivational factor on consumers' purchase related behavior.

Other

Mittal - 1989

Business Source Premier

Nelson - 1970

Business Source Premier

Ngobo - 2011

Business Source Premier

Drivers in a household's choice of organic products in grocery stores.

Nordfelt - 2009

hman (2010)

Discover if the type of shopping trip influence the number of unplanned purchases.

Olshavsky and Granbois 1979

hman

Research about if customers necessarily perform a prepurchase valuation.

Ozretic-Dosen 2007

Business Source Premier

Consumers' attitude towards a low involvement food category. This paper takes a critical review of incorporating green issues in marketing strategies and explores the implications for marketing education. . Examples of these factors such as consumer and management attitudes, pressure groups and media interest are discussed. This a book, therefore the whole of it has not been reviewed but certain parts of the book deals with the fact that diffusion of organic products in the marketplace is currently suffering despite their importance for sustainable economic development.

Peattie - 1990

Business Source Premier.

Marketers need to continue to educate themselves in the growing area of green marketing.

Peattie - 1992

Chryssochoidis - 2000

N/A

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Author

Found through

Topic
Discusses the importance of better understanding the whole concept of personality and its relationship to how consumers respond. If it would be possible to isolate and understand the basic driving forces, such as personality traits, that predisposes consumers to act in certain ways marketing would be easier. Question that is discussed is what we can do about our environmental crisis given that H. Sapiens is inherently biased against sustainability by nature. The primary goal of all life is to survive, but the self-oriented aggressivedefensive behaviours that served so well for that purpose early in our evolution are maladaptive in the ecologically full world today. In this paper the authors examine the relationship between product differentiation strategies and profitability for different categories of producer goods. Discovering if the neighborhood price effect and the assymetric price effect are generalizable across product categories.

Analysis/Conclusion
Even though working with personality segmentation of consumer populations has not yet been proven to be successful, marketers should be motivated to work with brand personality as a new arena of marketing

Other

Plummer 2000

Hall - 2008

Rees, William E. - 2002/2003

Sustainability class at University of British Columbia

The point is that the sustainability crisis may be humanity's final opportunity to rise above mere animal instincts. Humans need to recognize that our best chance for survival lies in collective self-restraint and mutual cmmitment to the common good. This is an unaccustomed mode of human political behaviour.

Inspiration to the overall paper idea.

Sashi & Stern 1995

Business Source Premier

The results indicate that product differentiation is based on "custom services". Assymetric price effect is not generalizable. There is a strong generalizable neighborhood price effect. For traditional products, national brands often steal market shares from lowerpriced store brands. Consumers uses more than two decision waves to make a purchase decision for a durable product. However, the number of waves in this decision scenario might be low compared to reality since the real world is even more complex. The result of the study shows that by having people consider beforehand what their behavior might be in a situation involving moral behavior, their actual be- havior in that situation will be more socially desirable, acceptable, and moral than if they had not made initial predictions. In-store exposures may be seen as a great advertising opportunity for storeowners. The advertiser's main task is to accelerate sales in the shopper space, without increasing the efforts from the shopper. In this case, the effort can be seen as how much time it takes for the shopper to finish a purchase.

Sethuraman, 1999

Bezawada, 2009

Shao et al. 2008

Business Source Premier

Research about if consumers apply multiple decision waves to choose a durable product.

Sherman, S 1980

hman - 2010

The work will try to demonstrate the scope of people's inability to predict their own social behavior. Finally the research is designed to investigate the behavioral effects of mispredictions.

Not chosen for this thesis. Doesn't put emphasis on a certain type of consumption, more discusses the difference between intention and moral behavior.

Sorensen 2009

Business Source Premier

Discussing how store design/layout and aisleness will have impact on shopper efficiency.

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Author
Steenkamp and Kumar - 2009

Found through
Business Source Premier

Topic
The article focuses on that companies not should ignore hard-discount retailers.

Analysis/Conclusion
Hard-discounters keep the number units in-store low, which reduces supply-chain costs. Discount retailers are forecasted to increase by 50% over the next 5 years. The author identified nine factors that influence impulse buying: Low price, Marginal need of product, Mass distribution, Self-service, Mass advertising, Prominent store display, Short product life, Small size or light weight and Ease of storage. The author concludes that impulse buying is irrational and therefore impossible to influence. In general, the effect of in-store savings depends of if they appear before or after the customer's slack is depleted. If savings appear before the slack is depleted, it results in stockpiling shopping by high income customers. If savings occur after the slack is depleted, it will result in increased purchase of unplanned products. Findings indicate that, despite a significant amount of past research attention, demographic criteria are not as useful a profiling method as psychographic criteria. In conclusion the relatively low degree of shopping activity for all items examined indicates the importance of store choice by consumer. For the manufacturer of soft goods the low level of brand preference combined with low shopping activity suggest increased store reliance by the consumer. Lower prices and better distribution would increase the demand for organic products. Better product information would also be desirable. Healthiness is a major motivator of why the respondents are purchasing organic products. There is a gap between the intention to purchase socially desirable products and the actual purchase. This is due to various reasons.

Other
Not chosen for this thesis.

Stern - 1962

hman

Refining the definition "impulse buying"

Stilley et al 2010

Business Source Premier

Discovering if the impact of promotions depend on whether the shopper still has in-store slack remaining in his or her mental budget.

Straughan & Roberts -1999

Business source premier.

Looking into the future of green marketing, and examines the dynamic nature of ecologically conscious consumer behavior. The study examined shopping behavior for soft goods - apparel and household textiles - to determine the degree of purchase planning and shopping activity for such goods.

Williams & Dardis -1972

hman - 2010

Not chosen for this thesis. Concerns different kinds of products not relevant for this thesis.

Zanoli and Naspetti - 2002

Emerald

Consumer motivations when purchasing organic products.

hman - 2010

Starting point for this thesis, found through other course work

Dissertation with several chapters covering different topics of Intentions and Consumer Behavior.

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