Hn2 3000 Contemporary Issues in Marketing Management AN Sylvia 24Nov PDF

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Contemporary issues in marketing management...

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Contemporary Issues in Marketing Management

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Table of Contents 1.0 Introduction................................................................................................................................1 2.0 Review of Literature..................................................................................................................1 2.1 Concept of Sustainable Consumption....................................................................................1 2.2 Generation Z and Sustainable consumption patterns.............................................................3 2.3 Sustainability issues in Canned Drinks..................................................................................4 3.0 Data Collection..........................................................................................................................4 3.1 Participants............................................................................................................................4 3.2 Interview................................................................................................................................5 3.3 Ethics.....................................................................................................................................5 4.0 Findings and Discussion............................................................................................................5 5.0 Conclusion.................................................................................................................................9 6.0 References................................................................................................................................10 7.0 Appendices...............................................................................................................................12 7.1 Appendix 1: Profile of the participants................................................................................12 7.2 Appendix 2: Data Collection guide and Schedule...............................................................13 7.2 Appendix 3: Transcript for Participant A.............................................................................14

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Table of Figure

Figure 1: Focus of sustainable products..........................................................................................6 Figure 2: Price vs Sustainability......................................................................................................7 Figure 3: Awareness about sustainability issues in canned drinks...................................................8

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1.0 Introduction Wang, et al., (2019), has defined sustainable consumption as using products and services which fulfills basic needs by bringing a better quality of life along with minimising the use of natural resources as well as toxic material over the life cycle of products and services so that it does not affect the needs of the future generation. Consequently, the consumers have become more inclined towards sustainable consumption where they seek expectation and scrutiny about the packaging aspect and its positive and negative impact on the environment. Generation Z includes the people who are born in the mid-2000s through today. The studies have mentioned that people falling in Generation Z are found to show high open-mindedness and cultural awareness. These people are also termed as “Digital Natives” as they have access to digital devices at a significantly younger age reflecting significantly high awareness, greater activism, and expectations from the concerned authorities. As per the PEW Research Center (2019), generation Z consumers reflect a more pragmatic and cautious attitude towards money and reflect greater desire over owning sustainable consumption patterns. It also sets strong expectations amongst the manufacturers and retailers to deliver quality products. Forbes (2020), states that even if generation Z are not transforming their present attitude of environmental knowledge and concern in action, there is a higher probability of this conversion in the upcoming years. With this consideration, the rationale of this research paper is to develop a clearer understanding of Generation Z’s sustainable consumption patterns in the UK. It will help in thoroughly investigating internal as well as external influential factors in terms of packaging, pricing, quality, and intention-behavior gap. Hence, the main purpose of this research paper will be to evaluate the attitude of Generation Z towards sustainable consumption of canned drinks.

2.0 Review of Literature 2.1 Concept of Sustainable Consumption United Nations Environment has defined sustainable consumption as promoting the use of energy, material products, and other services in such a manner that there is minimum impact on 1

the environment. It ensures that the present human needs are met without compromising with the needs of future generations (UNWCED, 1987). Goal number 12 of the United Nations deals in sustainable consumption and production. The idea is to make customers rethink their consumption patterns, evaluate the environmental impact of whatever they are consuming. As per the survey conducted by Hanss and Bohm (2011), there are 44% of the consumers consider social awareness before making any buying decisions, such as, causing no harm to animals, no involvement of child labour during production, not causing any harm to the environment. There are 61% of the consumers who are ready to pay 5% more in order to respect such values and commitments. 31% of the consumers have boycotted such products and services at one point in time. Ultimately, there are 52% of consumers have bought 52% of sustainable products in the past six months. Another research conducted by Lim (2017), has pinpointed three main theoretical perspectives of consumer behaviour regarding sustainable consumption. These are responsible for consumption, anti-consumption, and mindful consumption. Responsible consumption refers to the efficient and rational use of resources. As per this consumer behaviour, people are aware of the negative effect of consumption on the outside world. As per the researcher, it is the first step towards awareness of sustainable consumption. Anti-consumption is when consumers abandon consumption through restriction, rejection, and reclamation. Analysing this aspect, to satisfying and addressing the needs of consumption practices that cannot be rejected, alternative consumption choices are made available. Further, mindful consumption refers to having greater awareness about both selves as well as the ecosystem which dampens the impact of unsustainable practices. On the contrary, Minton, et al., (2018), has mentioned the attitude-behavior gap or values-action gap. The research reflected on a survey conducted in the UK. The results indicated that there are 30% of the UK consumers stated that they are concerned about consumer issues but they find it difficult to convert this concern into green purchases. Similarly, another research conducted by Medium (2019), mentioned that despite the presence of a favorable attitude towards organic food, that is, 46 to 67%, the actual purchase behaviour formed is around 4 to 10% amongst different product ranges. Sheth, Sethia, and Srinivas (2010) have presented research to analyse changing consumer behaviour towards sustainable consumption. Some of these factors are culture, brand strengths, 2

finance, habit, lack of information, lifestyles, personalities, and trading off between different ethical factors. The research further indicates that consumers indulge in adopting neutralization techniques to justify their selfish goals rather than adopting sustainable products. Another research conducted by The Harman Group (2007), mentioned on hierarchy on the importance of ethical drivers during the purchase decision-making process. The environment was rated as the most important ethical driver which influences purchase decision, followed by human rights and animal rights.

2.2 Generation Z and Sustainable consumption patterns As per Forbes (2020), Generation Z is the people who are born between 1997 and 2012. The American Psychology Association has described Generation Z people as those who currently in the age group of 15 years to 23 years. These young people are born in the digital age making them more tech-savvy as compared to the previous generation. It has provided them the ability to monitor world events. Repercussions of the same have also been noticed in shopping behaviour and their engagement with different brands. Further, a significant shift from traditional media such as television has also been noticed where they are found to be more inclined towards online channels, such as online streaming platforms and social media platforms. As per the PEW Research Center (2019), Generation Z consumers are found to be more priceconscious. The stagnant income prospects as compared to the older generation have resulted in generating this cautiousness. Another study conducted by Govindan (2018), compared Generation Z with Gen X and Gen Y individuals in terms of their preferences towards advertisements. The results indicated Generation Z was more inclined towards innovative advertising formats that provided control over the viewing experience. Moreover, the tendency to skip the advertisement faster was found to be more in Generation Z individuals. Cohen and Munoz (2016), mentions that in terms of product choices, health is found to be another significant factor that alters the consumption choices of Gen Z people. The study revealed that in the UK, there is a significant drop in intake of free sugar, that is soft drink, amongst adolescents between 2002 and 2015. Hence, a shift towards healthier food options has been noticed amongst them. Another study conducted by Bulut, Kökalan Çımrin, and Doğan (2017), mentioned Gen Z’s attitude towards the environment. The research further quoted the result of a survey conducted in the U.S. mentioning that 47% of the Gen Z in the US stopped 3

buying their favorite brand after finding out that the manufacturer is not producing environmentally friendly products. Also, the research indicated that 45% of Gen Z’s prefer brands that are socially responsible and eco-friendly. Marketers mention that Gen Z’s reflects greater expectations demonstrating their care towards the environment with actions rather than just words. Research conducted by Lakatos, et al., (2018), reflects that brand loyalty and trust towards the companies play a significant role in demonstrating their willingness to support the sustainable aspect of the companies.

2.3 Sustainability issues in Canned Drinks As per Lakatos, et al., (2018), there is a significant rise in eco-conscious customers, a significant presence of pressure can be felt on companies to meet the demand for sustainability. Aluminum is the most favoured type of packaging material used for canned drinks. However, the research mentions that although aluminum is made up of 50% to 60% of recycled content, it contains bauxite which is found to be significantly harmful to the environment. Further, the recycling rate of the same can is only 60%. Lack of reusability of the same can leads to the generation of waste which affects the state of the environment. Further as per Medium (2019), in 2012, 38.2 beverages ended up in U.S. landfills making its impact even worse on the environment. Aluminum is a valuable material with gigantic environmental footprints and social costs. Mining and refining Bauxite and then smelting aluminum requires a huge amount of energy in the form of water, air, and soil. Makers involved in developing aluminum cans and the companies that are involved in dealing with beer, soda, and other energy drinks advertise recyclability but that only deflects attention from the real issue. As per Forbes (2020), only 54% of the cans used for canned drinks are brought back for recycling and the remaining gets dumped in landfills. To deal with this aspect, the consumers are constantly looking for accurate information that can help them in identifying whether the product is sustainable or not. To fulfill the demand of consumers, the companies are coming up with the new sustainable formula of developing green cans. The leading companies serving soft drinks and beer have indulged in an on-pack recycling label scheme (OPRL) which helps the consumers in getting consistent information on what packaging can or can’t be recycled.

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3.0 Data Collection 3.1 Participants The convenience sampling method has been adopted to gather samples for the present research. The main benefit of adopting this technique is the time and cost required to carry the research is relatively small. Since the researcher has a prior relationship with the respondent, it ensures higher trust over the responses further leading to reduced social desirability biasness(Kumar, 2018). For this research, a sample of 6 people belonging to Gen Z has been collected with equal distribution between males and females.

3.2 Interview A structured interview technique was followed where a predetermined set of questions was kept ready to avoid any inconsistency in the research. The main benefit of adopting a structured interview format is that it is easy to compare the opinions of different candidates and there is minimal chance of forgetting any important question during the process (Kumar, 2018). Prior discussion about the suitable timing was made to avoid any hassle during the process. It took approximately 25 -30 minutes to interview each respondent on Zoom. The audio of each participant was recorded for future responses. However, the anonymity clause was duly followed and hence respondents name has not been disclosed. It was ensured that interviewees are duly briefed about the purpose and scope of the project to avoid any confusion. It helped in collecting rich and valuable data for this investigation.

3.3 Ethics The overall investigation has been conducted ensuring adherence to ethical aspects of Oxford Brookes University’s Code of Practice. It helped in ensuring the rights, inclusivity, dignity, and well-being of the participants. A consent form was duly sent to all the participants before scheduling the interview where they were briefed about the purpose of the project. Only after their consent, the process of data collection was begun. Further, all the data, that is, recorded interviews were stored in a password-protected file to keep all the information about the participant private as well as anonymous. In the end, participants were free to withdraw their consent at any point in time to ensure their rights.

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4.0 Findings and Discussion An interview of 6 people was conducted consisting of 3 males and 3 females. Upon asking about their understanding of sustainable products, all 6 participants relate sustainability primarily with the environment. However, the other 2 participants relate sustainability with social issues as well, such as the non-involvement of child labor and the health and safety of workers. Hence, it can be stated that the main focus of sustainability is on environmental aspects. The participants mentioned it is important for the companies to use resources that are renewable and not harming the environment to ensure that the product they have been offering to the consumers is sustainable. Similarly, as per Bulut, Kökalan Çımrin, and Doğan (2017), Gen Z’s reflects on greater awareness and concern towards the environment. They hold a strong opinion about sustainability and also expect the same from companies around them are well. Greater awareness and empowerment promised by this generation reflects on a stronger opinion towards environmental issues in comparison to the previous generation.

Focus of Sustainable Products 7 6

6

5 4 3 2

2 1 0

Environmental issues

Social Issues

Figure 1: Focus on sustainable products

The participants have reflected a genuine interest in buying sustainable products. 5 out of 6 participants feel that opting for sustainable products is aligned to the fulfillment of responsibility towards the environment. Hence, it can be stated that their willingness towards sustainable consumption is high. On the contrary, the participants mentioned that price acts as a significant barrier in choosing sustainable products. It has been noticed in the market that sustainable products are priced high. Since Gen Z’s are still at the initial stage of their career, they are not 6

able to afford these products. Hence, there is a large segment of Gen Z’s who have strong environmental views, but due to lack of financial stability at the early stage of their career, it is difficult to turn these views into actions. Similarly, Minton, et al., (2018), has also mentioned Gen Z’s being more price-conscious as compared to the older generation. It is due to this reason, the intention-behavior gap between willingness and action can be noticed when it comes to choosing a sustainable product over an unsustainable product.

Price vs Sustainability 7 6

6 5

5 4 3 2 1

1 0

Price Concious 0

Choosing sustainable products even at high prices Yes

No

Figure 2: Price vs Sustainability

Focussing on the main aspect that is the sustainability of canned drinks, the results have been able to indicate that participants are aware of the different sustainability aspects attached to the canned drinks. Participants mentioned packaging is one of the primary issues where the aluminum used in packaging is only 50% recyclable. Further, Bauxite used in packaging material also harms the environment. The participants also mentioned that liters of water are used to produce sodas and aerated drinks which is depleting water resources from the environment. Hence, participants were able to mention a variety of problems that are linked to sustainability aspects in canned drinks. It can be analysed from this aspect that 83% of the participants reflects their awareness about sustainability issues that are related to canned drinks.

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Awareness about sustainability issues in canned drinks 1

5 Yes

No

Figure 3: Awareness about sustainability issues in canned drinks

The findings further indicate that the first aspect that consumers tend to check while analysing the sustainability of the product is the promises that are made by the brand itself. For instance, Coca-Cola has emerged as a sustainable brand that tries to adopted maximum possible sustainable resources in its offerings. Hence, brand image is found to be a significant predictor of the sustainability of the product. Afterward, the packaging and manufacturing process adopted by the brand is also a relevant factor. To serve this aspect, Govindan (2018), has mentioned the advertising strategies adopted by the companies. Gen Z’s are found to be more inclined towards innovative advertisement formats. If the advertisement is learned as well as captivating, there are higher chances that Gen Z’s can get attracts to the canned drinks brand. Apart from this, knowledge about the environment and their overall environmental concern act as significant predictors that whether an individual will be environmentally concerned or not. However, the price still acts as a barrier in adopting sustainable products, especially when there is a huge price difference between sustainable and unsustainable choices available in the market. 4 out of 6 Participants believe that it is not only the duty of consumers to buy sustainable products rather the brands need to come up with sustainable canned packaging and product. As a green consumer, one should be convinced with the activities adopted by the canned drink companies that it is not harming the environment and hence are sustainable. Participants have 8

recommended that the companies can fo...