Chapter 3

The Inscrutable Shopper

In this chapter we discuss three consumer types as identified in our primary and secondary research. They are the ethical consumer, the green consumer, and the activist consumer, each of whom has gained a high profile in society and have an impact on the retail industry. The evidence for these segments is based on many financial and economic indicators of the growing success of products that are ethically and environmentally sound. The chapter also presents the results of research into consumer perceptions of retail brands in this regard and how retailers have responded to calls for transparent ethical and green compliance throughout the supply chain. As mentioned earlier, we seek to provide an understanding of those elements of consumer resistance most relevant to retailers. In chapter 4 we undertake a much more detailed look at the forces of consumer resistance.

Modern consumer society is fragmented, and postmodern consumer theory¹ suggests that the quickened pace of postmodern life engenders a condition of hyperreality in which the real becomes not only that which can be reproduced but that which is already reproduced: the hyperreal.² In postmodern society, the individual’s authentic self is splintered and displaced by a made-up self,”³ and as Professor Yiannis Gabriel, or Royal Holloway University of London, and Professor Tim Lang, of City University London⁴ point out, consumers can adopt one of many “faces” corresponding to certain social roles in which the consumer is empowered. In their book The Unmanageable Consumer, Gabriel and Lang synthesize different academic, social, and political discourses on different representations of consumption and customers. They present a number of distinctive portraits of the customer—chooser, communicator, explorer, hedonist, and discuss the paradigms and perspectives underpinning these images. Gabriel and Lang contend that none of these different customer portraits satisfactorily comes to terms with the fragmentation, volatility, and confusion of contemporary consumption. And hence the concept of the inscrutable shopper is introduced here to capture the defiance of today’s consumerism. Three of the faces relevant to retail and consumer resistance (Gabriel and Lang identify nine such faces) are the consumer as citizen, the consumer as rebel, and the consumer as activist. Importantly, the authors note that consumer culture has become a way to differentiate one’s self by constructing unique identities without fear of reproach from the binding influence of social bonds and moral obligations. Within each of these different faces, consumers can occupy many different spaces in terms of resistance—we focus on the ethical, the green, and the activist consumer as a resistant consumer typology.

The Ethical Consumer

Ethical, or socially conscious, consumers intentionally purchase products and services made by companies that operate in an ethical manner. Alternatively, they might choose to not purchase or to consume in a minimalist manner. A stance on ethical consumerism may mean consumption with minimal harm to or exploitation of humans, animals, and the natural environment. Ethical consumers behave accordingly by way of simple practices, such as positive buying, which involves favoring ethical products such as fair trade, cruelty free, organic, recycled, reused, or produced locally, or take more complex stances such as boycotting goods produced by child labor.⁵ To assist with the identification of these products, a number of standards and labels have been introduced around the world, such as fair trade, Organic Trade Association certified, union made, Rainforest Alliance certified, dolphin safe, and free range.

Ethical goods and services are experiencing growing market shares around the world, and consumers are becoming more aware of ethical consumption through market and information campaigns.⁶

Growth has remained positive during the 2 years of the recession and is particularly prominent in the fast-moving consumer goods sector. A survey by leading market research firm IGD uncovered that 30% of shoppers in Germany, 29% in the United Kingdom, 24% in France, and 9% in Spain actively consider two or more ethical factors when making purchases.⁸

Ethical consumers are highly principled and aware, with many boycotting real animal-fur products or products that involve the use of animals in product testing.⁹ They also examine a company’s record on hiring and promoting minorities and women.¹⁰ Ethical consumers care whether a corporation promotes employees from minority ethnicities, and plan personal consumption to avoid harm to animals. They are concerned about product transportation distances, such as food miles, as well as a plethora of related concerns.

Direct consumer action in the form of boycott activity, pressure groups, and other forms of consumer activism is also on the rise. Hence it may well be that consumer values are experiencing a shift from the inward facing materialistic outlook, often associated with the “yuppie” mind-set of the 1980s, toward a more outward focused, socially and environmentally proactive mind-set. The American and European consumer, in particular, is becoming increasingly concerned with social responsibility, as reflected in shifting consumer values.

Market research group GfK NOP conducted a five-country (Germany, the United States, Britain, France, and Spain) study of consumer beliefs about the ethics of large companies. The report is described in a Financial Times article published in February 2007 titled “Ethical Consumption Makes Mark on Branding” and was followed up by an online discussion.¹¹ More than half of respondents in Germany and the United States believed there is a serious deterioration in the standards of corporate practice. Almost half of those surveyed in Britain, France, and Spain held similar beliefs. About a third of respondents said they would pay higher prices for ethical brands. The most ethically perceived brands were The Co-op (United Kingdom), Coca-Cola (United States), Danone (France), Adidas (Germany), and Nestlé (Spain). Interestingly, Coca-Cola, Danone, Adidas, and Nestlé did not appear in the United Kingdom’s list of the 15 most ethical companies and Nike appeared in the lists of the other four countries, but not in the United Kingdom. In 2011, Westpac, the National Australia Bank and the ANZ Bank were named three of the five world’s most ethical banks. Some of the best-known U.S. companies listed for 2011 included retailers Whole Food Market, Best Buy and Target as well as online retailer Zappos and auction site eBay, made the Ethisphere Institute’s 2011¹² ranking of the 100 most ethical companies.

It is clear that the ethical consumer is concerned not only with the product, but also with the companies that manufacture, distribute, and sell them.

The rising popularity of organic and fair-trade products can be largely attributed to the ethical consumer. The U.S. Organic Trade Association released findings from its 2010 Organic Industry Survey, highlighting that organic product sales in 2009 grew by 5.3% to reach US$26.6 billion (US$24.8 billion representing organic food alone).¹³ Conversely, UK sales have decreased in the period from 2008 to 2009, with sales dropping from £2.1 billion in 2008 to £1.84 billion in 2009.¹⁴ Although Asia has been slow to adopt the organic trend, over the past several years, countries like Japan, Singapore, Malaysia, Korea, and Taiwan have seen annual growth in demand of 20% to 30%, as noted by Jo Cadilhon of the Food and Agriculture Organization of the United Nations (UN).¹⁵ However, a growing minority of urban consumers in emerging Asian countries is starting to develop in countries like the Philippines, Thailand, India, China, and Malaysia.

As is the case for environmentally friendly products, the organic sector is showing strong patterns of sustained growth during difficult economic times and is in line with the increasing number of consumers educated about their food choices. The demand for organic food and drinks is proving to be resilient in a number of key markets and product sectors, due to a combination of key factors. First, regular purchasers of organics typically have significantly higher than average disposable incomes and have so far been largely unaffected by the current global downturn. Second, the price differential between many organic and regular products has contracted steadily in recent years, and this has increased consumer reluctance to revert to cheaper, nonorganic alternatives.

Sales of fair-trade-certified products have also been growing rapidly, with consumers around the world spending around US$5.4 billion on fair-trade products in 2009, a 15% increase over 2008.¹⁶ Further, almost 27,000 fair-trade-certified products are now sold in more than 70 countries. Combined, the Australian and New Zealand markets were one of the top three for growth in sales of fair-trade products in 2009, with an increase of 58%, just behind Canada at 66% and Finland at 60%. Strong growth was also recorded in established fair-trade nations such as the United Kingdom, where growth hit 14%, and the United States, where sales increased 7%. Fair-trade products also gained new customers outside of its traditional markets, and sales grew exponentially in Eastern Europe, South Africa, and many other countries in the global south.¹⁷

It is important to note, however, that despite growing interest in fair trade offerings, only a minority of shoppers is routinely buying such products. Datamonitor 2010¹⁸ research found that while the vast majority of consumers believe it is important to choose grocery products that support fair trade, only 23% are buying such products regularly (i.e., most of the time or all the time) on a global scale.

The Green Consumer

Green consumerism is a concept generally accepted as emerging from Environmentalism and is linked to ethical consumerism. The distinction between green consumerism and ethical consumerism is important because ethical concerns encompass a broader set of social issues and therefore involve a more complex decision-making process. The definition of the ethical consumer movement encompasses issues associated with purchase behavior, including animal welfare and fair-trade, labor standards, and health concerns addressed by organic food. Ethical consumers are additionally concerned with the people element of consumerism, being “distinguished by their concern for deep seated problems, such as those of the Third World.”¹⁹

In the context of this book, we define the green consumer as primarily and consistently focused on environmental issues.

The surge in environmentalism has resulted in a new niche market of consumers. These consumers might choose to consume less in their daily lives, or they may at times even spend more to be environmentally responsible. Lifestyles of health and sustainability (LOHAS) is commonly used to refer to this consumer group. The LOHAS market is substantial and is growing at more than 20% annually.²⁰ This growing market has a worth in excess of US$550 billion annually and, according to the Natural Marketing Institute (NMI),²¹ 19% of the U.S. population, or 40 million consumers, regularly purchase eco-friendly products and play an active and loyal role in protecting the environment. In comparison, 15% of the UK population has adopted a LOHAS lifestyle. In 2008, U.S. consumers spent almost US$300 billion on LOHAS-related products and services. In Australia, the LOHAS market is conservatively estimated to be worth US$31 billion by end 2012.²² Recent research by the NMI of over 50,000 consumers in over 20 countries found that approximately two-thirds of consumers care about the environment, but their purchases are primarily determined by price, and 8 in 10 consumers are interested in some type of green product.²³

LOHAS-aligned consumers display many different consumption behaviors, such as taking sustainability into account when choosing a brand, seeking out green products or products with eco-friendly packaging, considering fair trade or environmental practices when choosing where to shop, and buying organic products. But who are these people? What drives them to consume less and be green? For business to capitalize on this market segment, it is important to understand who these people are, what shapes their consumption choices, and in turn how business can assist them in their environmentally conscious consumption.

These consumers are hard to define. Being green extends throughout the population to varying degrees, and green concerns are extremely diverse, encompassing a wide range of issues. However, a number of studies have identified some commonalities among these consumers. For instance, younger individuals tend to be more sensitive to environmental issues, as they have grown up in a period in which such concerns were more salient than in the past. However, this does not mean that these consumers are exclusively young. Baby boomers are also actively following this movement and tend to be influenced by their children, as they have both the time to seek out specialty items and the resources to afford premium-priced products. ICOM Information & Communications,²⁴ a Toronto-based target-marketing company, surveyed over 6,000 women in the baby boomer demographic. The study found that these women are more likely to use green products. In fact, women in their thirties and forties with one (or more) children living at home are a key target market. People in higher social classes and income brackets are more likely to be aware of, and to purchase, environmentally friendly products.

Green consumers also vary in terms of their personalities, values, attitudes, interests, and lifestyles—variables referred to in market research as psychographic variables. Johanna Moisander and Sinikka Pesonen,²⁵ of the Helsinki School of Economics, conceptualize green consumerism as a personal ethical orientation or as a set of proenvironmental personal values and attitudes that inform a particular form of socially conscious or socially responsible decision making. Green consumers tend to be goal-oriented individuals who take into account the environmental consequences (in terms of costs and benefits) of their private consumption in an attempt to reduce their personal impact on the environment. They also tend to have more liberal beliefs and are more likely to exhibit strong environmental commitment than those with more conservative political views. The values of green consumers are multifaceted and encompass beliefs about the environmental impact of the materials and processes used to manufacture products and their packaging; the methods of product distribution, sale, and disposal; and the company’s corporate philosophy and reputation for environmental stewardship.

Discussions have emerged in recent times as to whether the Green Movement is a fad destined to decline during downturns in the economy. The most recent decline in economies globally curtailed consumer spending in virtually every product category; however, a steady stream of research supported the argument that consumers were still environmentally conscious during this time. They were still demanding that the brands they interacted with were environmentally and socially responsible. According to Havas Media, part of the Havas worldwide communications group,²⁶ 79% of consumers still preferred to buy products from environmentally responsible companies in 2009. These figures are supported conducted by custom market research firm, Harris Interactive that showed that 73% of U.S. consumers were still buying green despite the tough economic times. In fact, they found 26% of U.S. consumers were buying more green products and services. Interestingly, these environmentally conscious consumers are also in emerging markets such as China and India, with nearly half willing to pay a 10% premium for products produced in an environmentally and socially responsible way.

However, a 2009 national survey by public relations firm the Shelton Group²⁷ in the United States revealed that the recession has altered the underlying motivations for consumers purchasing in a green and sustainable manner. Whereas in 2006 the top reason was protecting the environment, in 2009 the top reason cited was saving money. This shift in underlying motivations points to one of the elements of the inscrutable shopper: conflict. There are many situations in which the ethical and green consumer feels compromised and conflicted when the values he or she holds are in opposition.²⁸ As reported by the Shelton group, there is still resistance to paying more for goods that are seen as green when personal finances are stretched, which occurs in economic downturns.

The Activist Consumer

The third group of shoppers we discuss is the activist, or those shoppers that actively resist consumption. These customers can often seek out others and organize themselves into groups that actively campaign in a variety of ways in attempt to influence a company or other shoppers to join in active rebellion. A common form of resistance is customer boycotts. Boycotts have become more potent in recent decades with the development of global telecommunications facilities and social networking software, and e-mail allowing for rapid and global messaging.

Activist consumers’ influence can be thought to be the greatest in industries where products are not well differentiated and where competition is intense. Activism concerning the environment is commonly used by many environmental non-governmental organizations. For example, activism has occurred toward cosmetic firms (e.g., Procter & Gamble and Colgate-Palmolive) because of their use of animal testing and major oil companies (e.g., British Petroleum, Esso, and Shell) for their environmental damages and their supposed lobbying efforts to deter climate-change policies. Some large fast-food companies (e.g., McDonald’s) are targeted by boycott campaigns because of their supposed unethical meat-production practices. Finally, some non-governmental organizations support the boycott of non-certified tropical timber to protest against unsustainable harvest practices. The objective, therefore, is to put enough pressure on the target to encourage it to change its behavior.

Australian academic Helene Cherrier conducted a study on anticonsumption discourses and customer resistant identities.²⁹ She interviewed culture jammers to attain first-person descriptions of their everyday experience with customer resistance. “Culture jamming” is the term given to organized social activism that attempts to reduce the impact of consumption messages in the mass media. An entertaining example of culture jamming is displayed by the U.S.-based comic actor “Reverend Billy and his Church of Life After Shopping.”³⁰ Reverend Billy is the stage name of the actor who uses theater in shopping malls and stores, on the street, and on current affairs programs to highlight “the evils of consumption.” His activism has enjoyed a high profile, but it is not yet clear whether his efforts have raised interest in anticonsumption, highlighted existing levels of interest, or adversely raised the profile of certain retail stores.³¹ The performances are highly engaging and entertaining, as described by one audience member:

Consumer activism can be public, organized, and mainstream or fringe and theatrical (as with the case of Reverend Billy).

Part I Summary

Part I has set the scene for a discussion of consumer resistance in retail by discussing three major areas impacting resistance behavior in modern society. Shifts in world economies, new technologies and political structures, and the resultant impact on society that have occurred over recent centuries have led to the creation of the consumer society. This, in turn, has created shifts in the social fabric and community life. Alongside this change, and the processes of industrialization and urbanization, the growth and early development of the retail industry occurred. Today, shopping forms part of the fabric that ties modern society together (for better or worse). Given many of the downstream effects of retail (i.e., on manufacturing and living conditions in the Third World), recent times have seen a rise of consumer resistance. Further, the consumer’s search for identity and meaning, within a fragmented society, has resulted in some consumers adopting one of the many faces of consumption. This has led to different types of resistance, which are important for retailers to consider: the ethical consumer, the green consumer, and the activist consumer. This context provides the base to move on to the broader notion of resistance and provides a foundation for the development of a model of consumer resistance, allowing a deeper understanding of why and how consumer resistance is manifest in retail.