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Do consumers really care where products come from and how they are made? Is there such a thing as an 'ethical consumer'? Corporations and policy makers are bombarded with international surveys purporting to show that most consumers want ethical products. Yet when companies offer such products they are often met with indifference and limited uptake. It seems that survey radicals turn into economic conservatives at the checkout. This book reveals not only why the search for the 'ethical consumer' is futile but also why the social aspects of consumption cannot be ignored. Consumers are revealed to be much more deliberative and sophisticated in how they do or do not incorporate social factors into their decision making. Using first-hand findings and extensive research, The Myth of the Ethical Consumer provides academics, students and leaders in corporations and NGOs with an enlightening picture of the interface between social causes and consumption.

Timothy M. Devinney is Professor of Strategy at the University of Technology, Sydney. He is a fellow of the Academy of International Business, a recipient of an Alexander von Humboldt Research Award, a Rockefeller Foundation Bellagio Fellow, an International Fellow of the Advanced Institute of Management (UK), and Distinguished Member (Fellow) of the Australian and New Zealand Academy of Management. He has published six books and more than eighty articles in leading academic journals.

Pat Auger is Associate Professor of Information Systems and e-commerce and Director of the Executive MBA Program at the Melbourne Business School, The University of Melbourne. He has published extensively in leading academic journals in a variety of disciplines including information systems, marketing, business ethics, and strategy.

Giana M. Eckhardt is Associate Professor of Marketing at Suffolk University, Boston. She has published widely on issues related to consumer behavior in China, branding, culture and globalization in Asia, and consumer ethics. Her research has been funded by and won awards from the Sheth Foundation and the Marketing Science Institute.

List of figures
xii
List of tables
xiii
Preface
xv
1 The appeal and reality of ethical consumerism
1
The ethical consumer and myth
1
Ethical consumerism versus consumer social responsibility
9
Moving from ethical consumer to CNSR
11
2 Social consumerism in the context of corporate responsibility
16
Social consumerism and firm profitability
16
Economic profit
17
Willingness to pay and CNSR
18
Economic profit in light of CNSR
23
Firm and market reactions to social consumption
24
Firms and the social consumption context
28
The evolution of preferences and the role of the firm
33
The ethical consumer and CSR
35
3 Are we what we choose? Or is what we choose what we are?
37
Radical attitudes, conservative behaviors
37
Understanding the nature of consumer choice
40
Archetypes of consumer behavior
41
Consumers as rational informed processors
41
Consumers as quasi-rational reactive purchasers
41
Consumers as quasi-rational co-producers of value
42
Consumers as actors for the adaptive unconscious
42
The consumer as vox populi
43
The consumer as evolved ape
46
Two meta-models of social consumer behavior
48
A linear model of social consumption
48
A recursive model of social consumption
51
Implications of the models
53
The attitude–behavior gap and its implication for measurement
56
The four methodological flaws: incentive compatibility, comparability, inference, and context
56
Increasing the predictive validity of intentions
59
The myth of ethical consumption; the reality of social consumption
60
4 Ethical consumers or social consumers? Measurement and reality
64
The importance of the consumer
64
Experimentation and consumer social behavior
67
Are we willing to put our money where our conscience is?
72
Discrete choice experimentation
72
The components of study no. 1
74
Ethical disposition inventory
76
The MORI poll
79
The study sample
79
Willingness to consider/purchase; willingness to pay
79
How valuable is providing information?
86
Can we believe what consumers say when not constrained? The link between surveys and experiments
87
Will consumers sacrifice functionality?
94
Global segments of social consumers
98
The structure of study no. 2
98
The sample
99
Product features and structure of the experiments
99
Global segments
102
Demographics again
106
Does “social” segment position exist independent of product context?
106
Segment size and country differentiation
108
The importance of recall
109
Ethical consumerism in light of experimental reality
112
Assessing the myth
116
5 Rationalization and justification of social (non-)consumption
117
The contribution of interpretative methods to understanding CNSR
118
An interpretative approach
120
Understanding varying social consumption rationales
123
The economic rationalists
124
The governmental dependents
126
The developmental realists
128
Currents of logic and justification
132
Interpreting the myth
134
6 The ethical consumer, politics, and everyday life
137
From the consumer context to the perspective of the citizen
137
A pound for human rights, a penny for genetically modified food: a glimpse at measuring social issue priorities
140
Seeing the citizen: estimating general societal preferences
152
The consumer as citizen: linking social and consumer preference
162
7 Tastes, truths, and strategies
166
De gustibus non est disputandum
166
The inconvenient empirical truths
172
The convenient empirical truths
176
Strategies for enhancing CNSR
179
Jettisoning the myth
183
Appendix 1 Description of country choices and participant sampling
188
Appendix 2 Ethical disposition survey: the MORI poll and ethics scales
195
Appendix 3 Latent class finite mixture modeling
201
Appendix 4 Semi-structured interview guide used in all countries
203
Appendix 5 The logic of best–worst scaling
206
Appendix 6 Australia omnibus social, economic, and political preference study
209
Notes
216
References
219
Index
232
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