socially conscious
consumerism
socially conscious consumerism. when consumers purchase products or services produced with
social and environmental considerations in mind.
Will consumers pay more for goods with social or
environmental attributes? Yes, according to the Network
for Business Sustainabilitys systematic review of 91
studies. The average premium consumers will pay is about
10%. This primer defines and describes the factors that
determine that premium.
WHAT IS SOCIALLY CONSCIOUS CONSUMERISM?
Socially conscious consumerism can be defined as
consumers voting with their dollars by purchasing
products and services produced responsibly. Responsible
production can encompass a range of social and
environmental factors, such as ensuring labour practices
are fair or that products are produced with the aim of
minimizing environmental impacts. Consumers reward
socially responsible firms through higher sales and punish
other firms through boycotts and protests.
Many researchers and managers believe corporate social
responsibility rests with consumers. From their
perspective, as long as consumers demand responsible
products, companies will deliver them.
WHO IS THE SOCIALLY CONSCIOUS CONSUMER?
A recent survey of more than 2,000 adults revealed that
nearly 90 percent of them described themselves as
conscious consumers (i.e. they were more likely to by
products produced in socially and environmentally
A Model of Socially Conscious Consumerism
Companys CSR Consumer
Actions Attitudes
1
The 2009 BBMG Conscious Consumer Report. Available for purchase at: www.bbmg.com
primer
responsible ways)1. And the number of socially-minded
consumers is increasing.
As more and more consumers identify themselves as
conscious consumers, the need to understand who they are
and what drives them becomes more important to
business. But, there is no one socially conscious consumer.
There is no demographic (age, gender, income, education,
country) or psychographic (attitudes, lifestyle, morals)
profile.
Also, research shows that self-described conscious
consumers may intend to purchase responsibly but fail to
do so at the point of purchase. This attitude-behaviour gap
leaves companies wondering whether consumers are
actually ready to back up their intentions with their
purchasing dollars.
HOW DOES SOCIALLY CONSCIOUS CONSUMERISM
OCCUR?
Firms CSR actions influence consumers attitudes.
Consumers attitudes shape their intentions, and their
intentions affect their behaviour.
So, firms CSR actions may inspire consumers to change
their purchasing behaviour (i.e. buy a different product),
pay a premium for responsible products, or even
deliberately punish those firms that fail to meet their
expectations.
Consumer Behaviour
Buy
Consumer Pay More
Intentions
Punish
 RELATIONSHIP FACTORS THAT ENHANCE FACTORS THAT IMPEDE

Companys CSR Consumer knowledge of positive company Consumer knowledge of negative

Companys
Actions CSR company actions
actions
A positive attitude towards the firm A negative attitude towards the firm
A good fit between the company or brand Seemingly contradictory actions by
Consumer
Attitudes and its CSR initiatives the firm

Consumer
Attitudes The belief that their purchase will make a Perceived lower quality of
difference responsible product
Consumers perception of themselves and Belief that their responsible purchase
Consumer perception of the business as acting wont make a difference
Intentions responsibly

Consumer
Purchase requires only a small Consumer confusion at point-of-
Intentions commitment by consumer purchase around the products
Product seen as consistent with brand responsible attributes
Product aligns with an issue important to Consumer habit
Consumer Actions
Consumer Actions:
the consumer Misleading or confusing packaging
Buy, Pay
Buy, PayMore or
More, Simple claims and labeling on the product Trade-offs required to buy the
Punish
Punish Effective in-store education of consumer responsible product
about the product Competition between brands

HOW TO MARKET RESPONSIBLE GOODS AND

SERVICES
1. Dont market to a single socially conscious consumer.
Avoid chasing the conscious consumer as if there is only
one kind. Figure out which issues and product features
are important to your various customer segments and
market to them accordingly.
2. Explain how consumers will make a difference. One
study found consumers belief that they could make a
difference to the environment was more important in
determining purchasing than their actual concern for the
environment2. Communicate how each consumers
purchase contributes to the broader social goal.
Consumer Psychology: Whats behind the drive to buy or
boycott? A range of social motivations such as altruism,
reciprocity, and signaling is likely at work. Future
research should examine not just why consumers buy but
also why they boycott, spread negative word of mouth,
and protest.
Influence: How can companies influence consumers to
act? Consumers consistently say they care about
companies social performance, but often these words do
not translate into actions. The evidence so far suggests
consumers are influenced by such simple factors as the
placement of the responsibility message and other
information they have about the firm.

3. Maintain product quality and functionality. Consumers
are unwilling to compromise product quality or features
for social consciousness.
4. Communicate carefully. Companies need to strike a
delicate balance between legitimately informing
consumers of positive sustainability actions and not over-
emphasizing modest claims.
WHAT DONT WE KNOW?
Despite the research conducted to date, we still dont have
all the answers. There is a rich body of research growing
in consumer psychology, influence, and communication
that seeks to provide more guidance on these issues.
2
Roberts, James A. (1996). Green Consumers in the 1990s: Profile and Implications for Advertising. Journal of Business
Research, 36, 217-231.
Communication: Whenand how muchshould
companies talk? If firms self-promote too much, they risk
being accused of greenwashingtrying to increase sales
by overstating virtuous behaviour. By overpromoting,
firms expose themselves to scrutiny if a social or
environmental issue arises. More information is now
available through third party sources to consumers
motivated enough to seek it out. For example,
www.corporatecritic.org, www.corpwatch.org, and the
Good Shopping Guide iPhone App allow consumers to
quickly compare companies CSR records and the
performance of their favourite brands.
ADDITIONAL RESOURCES ON BUSINESS SUSTAINABILITY

Our Leadership Council of top Canadian organizations identifies the business communitys sustainability
priorities each year.
Our Research Insights provide highlights from top-notch research articles chosen especially for managers.
Our Systematic Reviews summarize what we know about a particular topic based on a thorough evaluation of
research in that area.
Our Member Directory lets you find NBS members interested in similar issues.

This Primer on Socially Conscious Consumerism was developed by Dr. Remi Trudel, Assistant Professor of Marketing
at Boston University School of Management.

CASE STUDY CONNECTING TO CONSUMERS THROUGH VALUES

Patagonia

Patagonia, a manufacturer of outdoor clothing with $257 million in sales and 1,300 employees, aims to: Build the
best product, cause no unnecessary harm and use business to inspire and implement solutions to the environmental
crisis. To this end, theyve donated time, services and at least 1% of annual sales (totaling $40 million in cash and in-
kind since 1985) to grassroots environmental groups around the world. As of fall 2011, all of Patagonias clothes will be
recyclable. In addition to manufacturing clothes with a low environmental impact and contributing philanthropically,
Patagonia provides tips for customers to reduce their overall clothing consumption, promises free repairs so clothes
last longer, and helps customers sell or donate clothes they no longer need. And the companys values hold internally
employees can undertake two-month paid internships with environmental groups. Patagonias commitments and
programs help customers see that their purchases are making a difference and that the company genuinely values the
environment.

2011 Network for Business Sustainability