Consumer behaviors in purchasing ethical products Dissertation

Consumer behaviors in purchasing ethical products - Dissertation Example This research will begin with the statement that the current generation of consumers in the United States and in the United Kingdom has come to have plenty of expectations concerning the products that they purchase and it has taken quite an effort by the various companies involved to ensure that these consumers are satisfied. Sales for organic and ethical products in the United States and the United Kingdom are rising, more so than sales for conventional products, and consumer demand for these products is increasing despite the global economic downturn. These consumer behaviours that have developed over the years have made the study of their characteristics and origins most useful. It has become the trend in these two countries for consumers to buy products that are perceived to fulfil environmentally friendly, natural, organic, local, or humane requirements and enhance the corporate responsibility profile of the companies that are involved in the supply of such products. In the Unit ed Kingdom, most of the ethical products that have come to be sought out by most of the population are in the food industry and according to the grocer, Asda, stated that almost half of the mothers in the United Kingdom spent more on organic food than any other and this was despite the strained financial situations in many households. While some of the major retailers in the United States, such as Wal-Mart and Safeway are increasing their aids of organic products, in the United Kingdom, on the other hand, the retailers seem to be reducing their offerings of similar products. Â  Despite this being the case, among the offerings that are directing the way in retail stores are augmented sales of organic breads and grain foodstuffs and "ethical" beverages. Among the banks of the United Kingdom which adhere to a strict ethical policy, is the Co-operative Bank whose main policy has always been that no deal goes to corporations tangled in the arms trade, animal testing, among many other un ethical activities. In this bank, the clients elect every year to determine how their money is used, and because of this, new anxieties are frequently involved, such as genetic modification or climate change. One of the most remarkable achievements of this bank is that it has rejected over nine hundred million pounds value of loan bids since it agreed its ethical policy and current practices in 1992. Because this bank does not invest its customer’s money in the stock exchange, it has been found to be more stable than other banks, and this has contributed immensely to its continued growth during the credit crisis. Because of the growth in the awareness concerning social responsibilities, ING’s clients have continuously agitated for the offering of ‘ethical’ products and services so that they can be sure they are making a contribution to a more sustainable society. In order to satisfy these demands, ING has continuously moved with the times and has started o ffering products and services such as a ‘green’ savings account, a ‘green’ loan or insurance policy, or ‘sustainable’ investment funds and as a result, this company has set for itself the target of introducing a range of new ethical products and services every year. Research Objectives The objective of this line of investigation is to scrutinize the diverse issues concerning ethical consumer behavior in the United States and the United Kingdom. Furthermore, there is the need to determine whether or not ethical consumerism is a trend which is here to stay despite the economic recession in these two countries. In order to help in the realization of the objective of the study, it is necessary to pose the following questions: 1) What information is used by consumers to make choices on buying ethical products? 2) What is the influence of market communication of ethical products purchases in UK and USA? 3) What is the influence of Price Purchasing of Ethical products in USA and UK? 4) What are the in-store advantages of Ethical products in USA and UK? Preliminary Literature Review When people make decisions regarding