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Introduction
Much of the literature in corporate social responsibility has focused on six aspects of citizenship
behavior: (1) corporate cause promotions, (2) causerelated marketing, (3) corporate social marketing, (4)
corporate social philanthropy, (5) community volunteering, and (6) socially responsible business
practices (Kotler and Lee, 2005). Corporate cause
promotions involve corporate activities to increase
awareness and concern for social causes (e.g., The
Body Shop promoting a ban on the use of animals to
test cosmetics). Cause-related marketing involves
M. Joseph Sirgy is Professor of Marketing and Virginia Real
Estate Research Fellow at Virginia Tech (USA). Dong-Jin
Lee is Professor of Marketing at Yonsei University (Korea).
M. Joseph Sirgy
Dong-Jin Lee
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TABLE I
The measurement constructs involved in the ACSI
1. Expectation
Customer expectation about overall quality
Customer expectation about reliability
Customer expectation about customization
2. Performance
Perception of overall quality
Perception of reliability
Perception of customization
3. Value
Price given quality
Quality given price
4. Consumer satisfaction
Overall satisfaction
Satisfaction against expectation
Satisfaction against the ideal
5. Customer loyalty
Repurchase likelihood
Price tolerance (increase) given repurchase
Price tolerance (decrease) to induce repurchase
6. Customer complaints
Source: Fornell, Claes, Michael D. Johnson, Eugene W.
Anderson, Jaesung Cha, Barbara Everitt Bryant (1996),
The American Customer Satisfaction Index: Nature,
Purpose, and Findings, Journal of Marketing, 60
(October), 718.
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Product acquisition
Product preparation
Product consumption
Product ownership
Product maintenance
Product disposal
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Pricing decisions
Factors considered in
pricing decisions
Costs
Profit goals
What the market can bear
Competition
Target market
Strategy
Product purchase
Well-being marketing
Stakeholder theory
Relationship marketing
Consumer sovereignty
Transactional marketing
TABLE III
Brand awareness
Pre-purchase expectations
Brand preference
Purchase
Transactional marketing
continued
TABLE III
Sales
Market share
Profit
Customer access &
convenience
Brand awareness
Pre-purchase expectations
Brand preference
Purchase
Post-purchase expectations
Satisfaction, trust, & commitment
Repeat purchase
Relationship marketing
Brand awareness
Pre-purchase expectations
Brand preference
Purchase
Post-purchase expectations
Satisfaction, trust, & commitment
Repeat purchase
Safety concerns
Use of the product to maximize
quality-of-life impact
Sales
Market share
Profit
Customer access & convenience
Repeat purchase & customer
turnover
Access, convenience, and pleasant
environment to repeat customers
Consumer satisfaction, trust, &
commitment
Safety and ethical concerns
Access & convenience to customers
most likely to benefit the most
Well-being marketing
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M. Joseph Sirgy and Dong-Jin Lee
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situations we can improve. For well-being marketers, it is a duty to improve the well-being of consumers by meeting their needs fully over the entire
span of the consumer/product life cycle.
Well-being marketing also focuses on preserving
the well being of stakeholders. This is the essence of
the moral duty of non-maleficience. The principle of
non-maleficience refers to injunction not to inflict
harm to others (Beauchamp, 1999; Fisher, 2001).
The duty of non-maleficence is the sense of obligation that we should not harm others. Besides not
inflicting harm, one ought to prevent or remove
harm (Frankenna, 1973).
Thus, well-being marketing is grounded in the
ethics concepts of duty of beneficence and nonmaleficence in that the focus is not only on serving
consumers safely in a manner that contributes to
their quality of life but also the preservation of well
being of the firms other stakeholders (see Table II).
We believe that the ethics of well-being marketing
is on placed a higher plane than transaction and
relationship marketing. Well-being marketing is
more comprehensive in the way it accounts for both
consumers and societys well-being. In the next
section of the article, we analyze how the concepts of
well-being marketing guide marketing decisionmaking. We will contrast marketing decision-making
guided by well-being marketing with decisionmaking guided by transaction marketing, and
relationship marketing.
Implementing the concept of well-being
marketing in the context of consumer goods
firms
In this section, we will further expound on wellbeing marketing by describing how, as a business
philosophy, it guides both strategic and tactical
marketing decisions.
Marketing strategy guided by the well-being principle
The strategic objectives of transaction marketing are
short-term financial goals. Most firms, driven by a
transaction philosophy, focus on quarterly sales and
profit to assess the financial health of the firm and to
set new goals for the coming quarter. The focus is
short-term. Thus the impetus lies in recruiting new
customers and making new transactions. Competitiveness is the state of mind of the transaction marketer. The goal is to gain more market share, to
make customers belonging to competitors switch to
the firms brand. Marketing performance is judged in
terms of sales, market share, and profit. Much of the
science and technology that helps the firm recruit
new customers is grounded on the psychology of
brand preference and choice. Transaction-oriented
firms focus on understanding the psychology of
purchase to create marketing programs that entice
new customers to purchase the firms product (see
Table III).
The marketing strategy of relationship-marketing
firms is significantly different from transaction-oriented firms. The strategic objectives of relationshipmarketing firms are more long term. The time
horizon is not restricted to quarterly sales and
profit. Marketing performance is assessed through
financial and behavioral measures. The firm is said
to be doing well not only when the financial
numbers look good but also research shows that
current customers are satisfied with the firms
product, they have trust in the firms ability to
deliver on its promises, and they are committed to
doing business with the firm in the foreseeable
future. Thus, relationship firms invest a great deal
of resources in understanding the psychology of
satisfaction, trust, and commitment, and develop
marketing programs to increase customer satisfaction, trust and commitment. Furthermore, relationship firms do not focus on enhancing customer
satisfaction only through purchase. The focus of
their marketing programs is post-purchase experiencesmarketplace experiences related to product
preparation, consumption, ownership, maintenance,
and disposal (see Table III).
In contrast to transaction and relationship firms,
the strategic objectives of well-being firms involve
both financial and societal goals. Marketing performance of a well-being firm is judged in terms of
sales, profit, customer-life satisfaction, customer
safety, employee safety, and safety to the environment. The time horizon of well-being firms is longterm and multidimensional. Well-being firms invest
in the science and technology related to quality of
life studies; they develop marketing programs to
enhance the quality of life of customers through the
entire spectrum of marketplace experiences: product
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addition to the design of the product with environmentally-friendly ingredients and packaging, the
well-being firm makes every effort to ensure that the
disposal activity is not only safe to the environment
but also to those involved in the act of disposal,
whether they are consumers or disposal service
personnel. Furthermore, well-being firms are likely
to offer their customers the opportunity to trade-in
their consumed product with newer and upgraded
ones. This could be in the form of continuously
developing a product line with new upgrades or new
features that can serve peripheral needs. For example, a consumer whose cell phone is damaged sends
it back to the manufacturer, and the manufacturer
sends back an upgraded model. This exchange may
be part of the product warranty. Thus, the disposal
experience becomes an exciting event in which the
customer experiences subjective well-being by
exchanging his old product with an upgrade.
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Conclusion
We strongly believe that firms engaging in wellbeing marketing are likely to prosper in the long run
than firms practicing transactional marketing. Wellbeing marketing serves to help establish long-term
relationships with customers and develop company
goodwill (cf. Collins, 1993). Studies have identified
that long-term relationships and positive corporate
image help business firms achieve higher financial
performance (e.g., Collins, 1993; Kalwani and
Narayandas, 1995; Jap, 1999; Naidu et al., 1999).
But then the reader would say: and so do firms
guided by relationship marketing. The difference, of
course, is that well-being marketing is a business
philosophy grounded in business ethics. That is,
consumer goods companies are urged to practice
well-being marketing not only because this philosophy translates into a business strategy that leads to
higher financial returns in the long run; companies
should practice well-being marketing because it is
the right thing to do. It is the moral thing to do. It is
most ethical.
One can argue that marketing paradigms have
evolved to culminate in well-being marketing. At
early stages of marketing thought and practice,
marketing performance was judged in terms of sales
and profit. Much research was generated focusing on
competition and marketing performance was judged
mostly by market share. In time, the competition
paradigm was overshadowed by much research on
customer satisfaction. That research has shown that
customer satisfaction leads to brand loyalty and
repeat purchase, and therefore high levels of profitability. Much of the research dealing with the
marketing concept, customer orientation, and marketing orientation seem to be embedded in that
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paradigm. The focus of customer relationship marketing here has been on how establishing long-term
relationships with customers to secure repeat business and therefore ensure the survival and growth of
the firm. Satisfying customer needs is the key to
satisfying the needs of the marketer. We believe that
well-being marketing is the next paradigm in this
evolution and progression of paradigms. Well-being
marketing builds on relationship marketing by
bringing marketing and business ethics into the
picture. Well-being marketing strives to enhance the
quality of life. Thus, well-being marketing can be
regarded as an ethical extension of relationship
marketing.
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M. Joseph Sirgy
Department of Marketing
Virginia Tech
Blacksburg, VA, 24061-0236, U.S.A.
E-mail: sirgy@vt.edu
Dong-Jin Lee
Yonsei University
Seoul, Korea
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