Consumerism and the consumer movement

The history of consumerism– First wave – industrial revolution– Second wave – 1930’s– Third wave – 60’s’ 70’s, 80’s

• Resurgence of interest in consumer education• Vance Packard (the Waste Markets)• JF Kennedy Consumer Bill of rights – right to safety, be informed, to

choose and to be heard• Consumer Advisory Council and others formed• Ralph Nader• UK Consumer Assocation, National Consumer Council• Various acts of parliament

Consumerism and the consumer movement

– ‘a social movement seeking to augment the rights and power of buyers in relation to sellers’ (Kotler 1972)

– Activist school of marketing– Boycotts emerging – Barclays, Nestle– Fourth wave – 1990’s until today

• WTO Seattle, Jubilee 2000• Role of computers – protest sites

– wwwnosweat.org.uk– www.corpwatch.org and www.corporatewatch.org.uk– www.accountability.org.uk (Accountability)– Ethical Consumer Magazine – www.ethicalconsumer.org

• Naomi Klein, Eric Schlosser, Noreena Hertz

Consumerism and the consumer movement

Muniz and O’Guinn (2001) – brand communityCarrigan and Szmigin – anti-brand community– Consciousness of kind– Shared rituals and traditions– A sense of moral responsibility– Based on Hirschman (1970) – classification of anti-brand

behaviour• Exit• Voice• Positive choice

Consumerism and the consumer movement

– Boycotts and the consumer movement• Sen et al (2001) ‘an attempt by one or more parties to achieve certain

objectives by urging individual consumers to refrain from making selected purchases in the marketplace’

– New momentum for boycotts (Gelb)• French – McDonalds, Coca Cola• Shell – Brent Spar/Nigeria; Nestle - $40million• Timberland – Alaskan sled races

- Publicity and boycotts- www.saigon.com/nike- www.mcspotlight.org

Consumerism and the consumer movement

Who will boycott– Countryside alliance, fuel tax protesters– Greenpeace over £102 million (Sting, Elton John, Tom Jones)– Likelihood of boycotting (Sen et al 2001)

• Likelihood of success• Susceptibility to normative social influences• Costs incurred in boycotting

– To encourage boycotting• Frame message positively• Highlight substitutes• Social dilemma of boycotting• Reference group theory

Consumerism and the consumer movement

Activist abuses– Criticism is both emotive and subjective– Difficult for companies to fight back– Brand leaders are main target– Firms do face genuine ethical dilemmas– PR advises entering ‘dialogue’ and being prepared

for change– If violent or illegal, bring in the law

Consumerism and the consumer movement

What do ordinary consumers think about marketing ethics?– The US consumer (Creyer 1997, JCM)– The UK consumer

• MORI/Co-op bank• Freedom Foods eggs 16% of market• Cafedirect 5% of market

– The contradictions• Boulstridge and Carrigan (2000) – attitude-behaviour gap

Consumerism and the ethical consumer

Carrigan and Attalla (2001)– Caring and ethical– Confused and uncertain– Cynical and disinterested– Oblivious

• Should marketers be making any efforts?• Is the sophisticated consumer overwhelmed?• Other stakeholders

Consumerism and the consumer movement

International consumerism– Ali Quazi (2001)

• Bangladesh vs Australia• Life cycle of consumerism in different countries

– Crusading– Popular movement– Organisation/managerial– Bureaucratic

• LDC’s focus on micro issues; West focus on macro issues• Wally Olins (Wolff Olins consultancy) – “The next big thing in brands is

social responsibility. It will be clever to say there is nothing different about our product or price, but we behave well... The difference in the future will be that it will be the consumers not philanthropists who will dictate the social agenda..”

Consumerism and the consumer movement

Summary