IDEAS home Printed from https://ideas.repec.org/a/pal/jmarka/v8y2020i2d10.1057_s41270-020-00074-8.html
   My bibliography  Save this article

Price sensitivity versus ethical consumption: a study of Millennial utilitarian consumer behavior

Author

Listed:
  • Andrée Marie López-Fernández

    (Universidad Panamericana)

Abstract

Millennial consumers have been associated with a preference for environmental, socially responsible, and high-tech products; they have also been known to be quick spenders tending to hedonistic consumption; however, there is not much consensus on the generation’s behavior. The question is, are Millennial consumers more prone to price sensitivity or ethical consumption of utilitarian products? The main objective of the empirical study was to explore Millennial utilitarian consumer behavior in reference to their degree of price sensitivity and ethical consumption, and preference to purchase from a firm engaged in corporate social responsibility (CSR). In order to do so, two models were developed, each focused on a different utilitarian product, to analyze Millennial consumer behavior regarding price sensitivity and ethical consumption. Results show that Millennial consumers are less price sensitive in regards to product attribute, and favor ethical consumption over price when CSR engagement is revealed.

Suggested Citation

  • Andrée Marie López-Fernández, 2020. "Price sensitivity versus ethical consumption: a study of Millennial utilitarian consumer behavior," Journal of Marketing Analytics, Palgrave Macmillan, vol. 8(2), pages 57-68, June.
    • Handle: RePEc:pal:jmarka:v:8:y:2020:i:2:d:10.1057_s41270-020-00074-8
    DOI: 10.1057/s41270-020-00074-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41270-020-00074-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41270-020-00074-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeffery Bray & Nick Johns & David Kilburn, 2011. "An Exploratory Study into the Factors Impeding Ethical Consumption," Journal of Business Ethics, Springer, vol. 98(4), pages 597-608, February.
    2. Onesun Steve Yoo & Rakesh Sarin, 2018. "Consumer Choice and Market Outcomes Under Ambiguity in Product Quality," Marketing Science, INFORMS, vol. 37(3), pages 445-468, May.
    3. Pat Auger & Timothy Devinney, 2007. "Do What Consumers Say Matter? The Misalignment of Preferences with Unconstrained Ethical Intentions," Journal of Business Ethics, Springer, vol. 76(4), pages 361-383, December.
    4. Anna-Maija Lämsä & Meri Vehkaperä & Tuomas Puttonen & Hanna-Leena Pesonen, 2008. "Effect of Business Education on Women and Men Students’ Attitudes on Corporate Responsibility in Society," Journal of Business Ethics, Springer, vol. 82(1), pages 45-58, September.
    5. Tania Bucic & Jennifer Harris & Denni Arli, 2012. "Ethical Consumers Among the Millennials: A Cross-National Study," Journal of Business Ethics, Springer, vol. 110(1), pages 113-131, September.
    6. Marc Vanhuele & Malcolm Wright & Robert East, 2008. "Consumer Behaviour: Applications in Marketing," Post-Print hal-02454375, HAL.
    7. Longinos Marin & Salvador Ruiz & Alicia Rubio, 2009. "The Role of Identity Salience in the Effects of Corporate Social Responsibility on Consumer Behavior," Journal of Business Ethics, Springer, vol. 84(1), pages 65-78, January.
    8. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    9. Daniela Abrantes Ferreira & Marcos Gonçalves Avila & Marina Dias de Faria, 2010. "Corporate social responsibility and consumers' perception of price," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 6(2), pages 208-221, June.
    10. Ma, Hengyun & Rae, Allan N. & Huang, Jikun & Rozelle, Scott, 2004. "Chinese animal product consumption in the 1990s," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(4), pages 1-22.
    11. Michal Carrington & Benjamin Neville & Gregory Whitwell, 2010. "Why Ethical Consumers Don’t Walk Their Talk: Towards a Framework for Understanding the Gap Between the Ethical Purchase Intentions and Actual Buying Behaviour of Ethically Minded Consumers," Journal of Business Ethics, Springer, vol. 97(1), pages 139-158, November.
    12. Stefan Felder, 2004. "Drug price regulation under consumer moral hazard," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 5(4), pages 324-329, November.
    13. Marco Lerro & Maria Raimondo & Marcello Stanco & Concetta Nazzaro & Giuseppe Marotta, 2019. "Cause Related Marketing among Millennial Consumers: The Role of Trust and Loyalty in the Food Industry," Sustainability, MDPI, vol. 11(2), pages 1-16, January.
    14. Sashittal, Hemant C. & Hodis, Monica & Sriramachandramurthy, Rajendran, 2015. "Entifying your brand among Twitter-using millennials," Business Horizons, Elsevier, vol. 58(3), pages 325-333.
    15. Kuhns, Annemarie & Saksena, Michelle, 2017. "Food Purchase Decisions of Millennial Households Compared to Other Generations," Economic Information Bulletin 291931, United States Department of Agriculture, Economic Research Service.
    16. Yeonsoo Kim, 2017. "Consumer Responses to the Food Industry’s Proactive and Passive Environmental CSR, Factoring in Price as CSR Tradeoff," Journal of Business Ethics, Springer, vol. 140(2), pages 307-321, January.
    17. anonymous, 2004. "Consumer debt: how much is too much?," EconSouth, Federal Reserve Bank of Atlanta, vol. 6(Q1).
    18. Sergio Carvalho & Sankar Sen & Márcio Oliveira Mota & Renata Lima, 2010. "Consumer Reactions to CSR: A Brazilian Perspective," Journal of Business Ethics, Springer, vol. 91(2), pages 291-310, February.
    19. Flor Madrigal Moreno & Jaime Gil Lafuente & Fernando Avila Carreon & Salvador Madrigal Moreno, 2017. "The Characterization of the Millennials and Their Buying Behavior," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 9(5), pages 135-144, October.
    20. Anthony D. Miyazaki & Dhruv Grewal & Ronald C. Goodstein, 2005. "The Effect of Multiple Extrinsic Cues on Quality Perceptions: A Matter of Consistency," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(1), pages 146-153, June.
    21. Peter, J Paul & Tarpey, Lawrence X, Sr, 1975. "A Comparative Analysis of Three Consumer Decision Strategies," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 2(1), pages 29-37, June.
    22. Zaichkowsky, Judith Lynne, 1985. "Measuring the Involvement Construct," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 341-352, December.
    23. Richins, Marsha L, 1997. "Measuring Emotions in the Consumption Experience," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(2), pages 127-146, September.
    24. Jens Hainmueller & Michael J. Hiscox & Sandra Sequeira, 2015. "Consumer Demand for Fair Trade: Evidence from a Multistore Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 242-256, May.
    25. Sathre, Roger & Gustavsson, Leif, 2009. "Process-based analysis of added value in forest product industries," Forest Policy and Economics, Elsevier, vol. 11(1), pages 65-75, January.
    26. Flavio Boccia & Rosa Malgeri Manzo & Daniela Covino, 2019. "Consumer behavior and corporate social responsibility: An evaluation by a choice experiment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 97-105, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrée Marie López-Fernández, 0. "Price sensitivity versus ethical consumption: a study of Millennial utilitarian consumer behavior," Journal of Marketing Analytics, Palgrave Macmillan, vol. 0, pages 1-12.
    2. Alex Hiller & Tony Woodall, 2019. "Everything Flows: A Pragmatist Perspective of Trade-Offs and Value in Ethical Consumption," Journal of Business Ethics, Springer, vol. 157(4), pages 893-912, July.
    3. Volker Lingnau & Florian Fuchs & Florian Beham, 2019. "The impact of sustainability in coffee production on consumers’ willingness to pay–new evidence from the field of ethical consumption," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 65-93, April.
    4. Grimmer, Martin & Bingham, Timothy, 2013. "Company environmental performance and consumer purchase intentions," Journal of Business Research, Elsevier, vol. 66(10), pages 1945-1953.
    5. Lucyna Witek & Wiesława Kuźniar, 2020. "Green Purchase Behavior: The Effectiveness of Sociodemographic Variables for Explaining Green Purchases in Emerging Market," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    6. Catherine Janssen & Joëlle Vanhamme, 2015. "Theoretical Lenses for Understanding the CSR–Consumer Paradox," Journal of Business Ethics, Springer, vol. 130(4), pages 775-787, September.
    7. Henri Kuokkanen & William Sun, 2020. "Companies, Meet Ethical Consumers: Strategic CSR Management to Impact Consumer Choice," Journal of Business Ethics, Springer, vol. 166(2), pages 403-423, October.
    8. Veronika A. Andorfer & Ulf Liebe, 2014. "Do Information, Price, or Morals Influence Ethical Consumption? A Natural Field Experiment and Customer Survey on the Purchase of Fair Trade Coffee," University of Bern Social Sciences Working Papers 6, University of Bern, Department of Social Sciences.
    9. Ilknur Ayar & Ahmet Gürbüz, 2021. "Sustainable Consumption Intentions of Consumers in Turkey: A Research Within the Theory of Planned Behavior," SAGE Open, , vol. 11(3), pages 21582440211, September.
    10. Micael-Lee Johnstone & Lay Tan, 2015. "Exploring the Gap Between Consumers’ Green Rhetoric and Purchasing Behaviour," Journal of Business Ethics, Springer, vol. 132(2), pages 311-328, December.
    11. William Sun, 2020. "Toward a theory of ethical consumer intention formation: re-extending the theory of planned behavior," AMS Review, Springer;Academy of Marketing Science, vol. 10(3), pages 260-278, December.
    12. Jonathan Luffarelli & Panos Markou & Antonios Stamatogiannakis & Dilney Gonçalves, 2019. "The effect of corporate social performance on the financial performance of business‐to‐business and business‐to‐consumer firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1333-1350, November.
    13. Swetarupa Chatterjee & Naman Sreen & Jyoti Rana & Amandeep Dhir & Pradip H. Sadarangani, 2022. "Impact of ethical certifications and product involvement on consumers decision to purchase ethical products at price premiums in an emerging market context," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 19(4), pages 737-762, December.
    14. Lianne Foti & Avis Devine, 2019. "High Involvement and Ethical Consumption: A Study of the Environmentally Certified Home Purchase Decision," Sustainability, MDPI, vol. 11(19), pages 1-11, September.
    15. Terlau, Wiltrud & Hirsch, Darya, 2015. "Sustainable Consumption and the Attitude-Behaviour-Gap Phenomenon - Causes and Measurements towards a Sustainable Development," 2015 International European Forum (144th EAAE Seminar), February 9-13, 2015, Innsbruck-Igls, Austria 206233, International European Forum on System Dynamics and Innovation in Food Networks.
    16. Remi Trudel & Jill Klein & Sankar Sen & Niraj Dawar, 2020. "Feeling Good by Doing Good: A Selfish Motivation for Ethical Choice," Journal of Business Ethics, Springer, vol. 166(1), pages 39-49, September.
    17. Veronika Andorfer & Ulf Liebe, 2012. "Research on Fair Trade Consumption—A Review," Journal of Business Ethics, Springer, vol. 106(4), pages 415-435, April.
    18. Rahul Govind & Jatinder Jit Singh & Nitika Garg & Shachi D’Silva, 2019. "Not Walking the Walk: How Dual Attitudes Influence Behavioral Outcomes in Ethical Consumption," Journal of Business Ethics, Springer, vol. 155(4), pages 1195-1214, April.
    19. Tiziano Tempesta & Daniel Vecchiato & Federico Nassivera & Maria Bugatti & Biancamaria Torquati, 2019. "Consumers Demand for Social Farming Products: An Analysis with Discrete Choice Experiments," Sustainability, MDPI, vol. 11(23), pages 1-17, November.
    20. Organ, Kate & Koenig-Lewis, Nicole & Palmer, Adrian & Probert, Jane, 2015. "Festivals as agents for behaviour change: A study of food festival engagement and subsequent food choices," Tourism Management, Elsevier, vol. 48(C), pages 84-99.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jmarka:v:8:y:2020:i:2:d:10.1057_s41270-020-00074-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.