Podcast
Questions and Answers
What is the primary goal of a socially responsible business?
What is the primary goal of a socially responsible business?
Which of the following factors, besides ethical considerations, influence consumer purchase decisions?
Which of the following factors, besides ethical considerations, influence consumer purchase decisions?
What is a common challenge for managers regarding socially responsible products?
What is a common challenge for managers regarding socially responsible products?
How do consumers balance their desire for socially responsible consumption with other needs?
How do consumers balance their desire for socially responsible consumption with other needs?
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What is the role of certification in the context of socially responsible products?
What is the role of certification in the context of socially responsible products?
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According to the article, what factors could influence socially responsible decisions?
According to the article, what factors could influence socially responsible decisions?
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According to the information, why do many firms respond positively to consumer demand for socially responsible products?
According to the information, why do many firms respond positively to consumer demand for socially responsible products?
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What does social responsibility mean from the consumer's perspective?
What does social responsibility mean from the consumer's perspective?
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What is one way organizations encourage consumers to feel close to the main beneficiaries of their actions?
What is one way organizations encourage consumers to feel close to the main beneficiaries of their actions?
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What is one potential consumer motivation for purchasing domestically-made products?
What is one potential consumer motivation for purchasing domestically-made products?
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Why is the clothing industry under pressure to adopt socially responsible practices?
Why is the clothing industry under pressure to adopt socially responsible practices?
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What are the production standards for organic cotton?
What are the production standards for organic cotton?
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What is one option for consuming cotton products in a socially responsible manner?
What is one option for consuming cotton products in a socially responsible manner?
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What consumer demographic was the focus of the study by Ha-Brookshire and Norum?
What consumer demographic was the focus of the study by Ha-Brookshire and Norum?
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What factors did the study consider as important aspects of apparel consumption?
What factors did the study consider as important aspects of apparel consumption?
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Which demographic variables were included in the study?
Which demographic variables were included in the study?
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What was the average amount respondents were willing to pay extra for an organic cotton shirt?
What was the average amount respondents were willing to pay extra for an organic cotton shirt?
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How did age and gender influence willingness to pay more for organic or sustainable cotton shirts?
How did age and gender influence willingness to pay more for organic or sustainable cotton shirts?
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What was the potential reasoning behind consumers holding strong attitudes towards the environment being less likely to pay extra for organic and sustainable shirts?
What was the potential reasoning behind consumers holding strong attitudes towards the environment being less likely to pay extra for organic and sustainable shirts?
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Why might consumers be willing to pay extra for an organic cotton shirt when brand name is a priority?
Why might consumers be willing to pay extra for an organic cotton shirt when brand name is a priority?
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What characteristics of US grown cotton shirts may prompt assumptions about the shirts’ superior quality?
What characteristics of US grown cotton shirts may prompt assumptions about the shirts’ superior quality?
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According to the authors, which of the following demographics is most likely to purchase clothing made from organic cotton?
According to the authors, which of the following demographics is most likely to purchase clothing made from organic cotton?
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What limitation of the telephone survey method does the study acknowledge?
What limitation of the telephone survey method does the study acknowledge?
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Study Notes
Consumer Willingness to Pay for Socially Responsible Products
- Consumer demand for socially responsible products is increasing, creating opportunities for profit and growth for firms
- Social responsibility is interpreted differently by consumers, influencing product marketing strategies. This encompasses environmental friendliness, human/animal welfare, fair-trade, and rejecting child labor. Certifications legitimize products' social responsibility.
- While consumers hold positive attitudes towards socially responsible products, purchase behavior might not always align. This challenges businesses to understand willingness-to-pay for such products.
- Consumer decisions are multifaceted, and include other factors beyond social responsibility, such as brand name, price, quality, and convenience. Consumers balance desires for social responsibility with other needs.
- Consumer willingness to pay a premium for socially responsible products depends on perceived impact of alternatives, reflecting values, beliefs, knowledge, and attitudes, as well as geographical context. Consumer connections to beneficiaries and ethnocentric/patriotic feelings are also factors.
- Socially responsible cotton apparel is a major focus, due to its perceived environmental concerns, including harmful chemicals in production, excessive water consumption, and the presence of genetically modified organisms.
- Organic cotton and sustainable farming practices offer socially responsible alternatives to conventional cotton.
- The study investigated consumer willingness to pay for organic, sustainable, and US-grown cotton shirts.
- A telephone survey of 500 respondents, predominantly female and over 55 years old, was conducted.
- Average willingness to pay for organic cotton shirts was $5.59, for sustainable cotton $5.54, and for US-grown $5.19.
- Younger consumers exhibited stronger willingness-to-pay for organic cotton, while women showed higher willingness-to-pay for sustainable cotton shirts.
- Consumers with strong environmental attitudes were less likely to pay extra for organic or sustainable shirts, potentially due to perceiving non-consumption as more environmentally beneficial than paying a premium.
- Brand name, ease of care/laundering, color, and fit were notable factors in willingness-to-pay, particularly for US-grown cotton.
- Findings suggest tailored marketing strategies for different consumer segments, with younger consumers potentially responding well to organic cotton, and women to sustainable apparel. A strong brand name, lower price, ease of care, color options, and fit might attract environmentally conscious consumers.
Methodology of the Study
- The study used a telephone survey to capture consumer willingness to pay for socially responsible cotton apparel.
- A sample of 500 respondents was used.
- Respondents were mainly female, with approximately over half being 55 years old or older.
- The study examined variables like consumer attitudes towards socially responsible apparel, environmental attitudes, social responsibility, demographics (age, gender, race, region, income, marital status), and product attributes (price, brand name, color, style, fit, and care requirements.)
Study Limitations
- The telephone survey method may yield socially desired responses, thus potentially not accurately reflecting the general population.
- Usage of cell phones may limit the survey's ability to accurately capture participant representation.
- Further research with alternative data collection methods is recommended.
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Description
Explore the factors influencing consumer willingness to pay premium prices for socially responsible products. This quiz delves into how social responsibility affects consumer behavior and examines the balance between ethical considerations and other purchasing factors, such as price and quality.
