What are the bottlenecks to ethical consumption behavior and how can this be effectively resolved? Considerations regarding the spread of ethical consumption from a consumer segmentation perspective 2
This series examines approaches with which to increase consumer ethical consumption in order to resolve social issues. In the previous wave, based on the idea that we should target the consumer segment that has a high level of ethical awareness but has not yet taken action, we considered an approach by understanding the characteristics of this group.
In the current article, we conducted consumer segmentation taking into account the concrete nature of ethical consciousness and ethical behavior to make it easier to consider more effective measures to take by exploring the profiles of target consumers and hints with which to increase this segment’s ethical consciousness and ethical consumption.
In our segmentation, we envisaged the 14 types of orientation in Fig.1 as hypothetical factors influencing extent of ethical orientation, with 30 ethical consciousness question attributes and 17 ethical behavior question attributes prepared that reflect this orientation. 5347 15~69y.o. males and females were questioned nationwide.
Fig.1
A factor analysis and cluster analysis were conducted on results, and classified into the 10 clusters in Fig.2.
Fig.2
3 clusters are ethically proactive, and come to just under 30% combined: ・A “Social Justice segment” that proactively participates in NPO activities and donations; ・A “Stoic Ethical Behavior segment Who Focus on the Essence of Things” who are unconcerned about how they are viewed by people around them and focus on the future more so than now; and ・A “Realistic Ethical Behavior segment Concerned About Practical Benefits And How They Are Seen By People Around Them” who are concerned about how they are viewed by people around them, yet focus on their present comfort more so than the future.
In addition, 3 clusters are ethically moderate, and come to half at around 50% combined: ・An ”Ethically Indifferent Majority segment” who make up the majority and have little interest in ethics; ・A ”Simple Life Oriented segment” who are ethically conscious, but not act on it; and ・A “Value for Money/Economic Rationalist segment “ who focus on value for money, who will accept ethical action if they feel it is beneficial to them.
There are also 4 ethically passive “Ignorant segments” that come to just over 20% combined: ・A “Savings and Time-Saving Oriented segment” who are strongly conscious of saving, leading a simple life, and value for money, who focus more on the present than the future ・A “Work-focused Life Ignorant segment” with little consciousness of life and are not involved in housework; ・A “Personal Enjoyment-Focused, Me First segment” who spend on pleasure and enjoy now, and are ethically ignorant; and ・An “Ignorant segment” apathetic towards everything.
The profiles and characteristics of each cluster are presented in Fig.3.
Fig.3
We also conducted a correspondence analysis based on responses to awareness and behavior questions, mapping proximity to each cluster, to produce the map in Fig.4 with altruism (focus on contribution to society and the environment) as its horizontal axis and extent of ethical consumption as its vertical axis.
Fig.4
On overlapping demographic information such as the gender, age, and life stage that make up the majority in each cluster on this map, we can group them into the 3 segments seen in Fig.5: “Finished raising children, and have the time”, “Busy with raising children and work”, and “Undriven men”.
Fig.5
This map indicates that the state of having “Finished raising children, and have the time” is more likely to lead to actual ethical consumption behavior than being highly ethically aware. It is also interesting to note the Social Justice segment, highly conscious of social contribution, is surprisingly not connected with ethical consumption behavior. While this segment includes many young people, they also appear to have values that do not view consumption behavior itself to be ethical.
Target segments and how to approach them to increase ethical consumption
At this point, I would like to consider how to change the behavior of people with a set ethical outlook by combining the “Ethically highly conscious, but only take moderate behavior segment (Ethically oriented x moderate action segment)” with the “Clusters based on differences in outlook and behavior” in this current article. In the map on the previous page, it was apparent that ethical consumption tendencies differ based on differences in life stage between the age group who have finished raising their children and the age group who are currently raising their children. Fig.6 shows the composition ratio of these clusters by dividing the ethically oriented x moderate behavior segments broadly into two life stages: those in their teens -40s, and 50s-60s.
Fig.6
Teens-those in their 40s are divided in two between “Cluster 3: Realistic Ethical Behavior Segment Concerned About Practical Benefits and How They Are Seen By People Around Them” and “Cluster 6: Value for Money/Economic Rationalist segment”, comprising around 35% respectively.
From here onward, let’s deem teens ~ those in their 40s in the “Ethically highly conscious, but only take moderate behavior segment (Ethically oriented x moderate action segment)” who are ethically neutral “Cluster 6: Value for Money/Economic Rationalist segment” our target, and consider whether we can encourage attitudinal and behavioral change in them to become ethically positive “Cluster 3: Realistic Ethical Behavior segment Concerned About Practical Benefits And How They Are Seen By People Around Them”.
Cluster 6 is already on par with Cluster 3 on ethical consumption, so if we can encourage an attitudinal and behavioral change in them to Cluster 3, we can expect them to become more proactive with ethical consumption and to make the jump to “Cluster 2: Stoic Ethical Behavior Segment Who Focus on the Essence of Things”. (Fig.7)
Fig.7
We profiled those in their teens ~ 40s in the “Ethically highly conscious, but only take moderate behavior segment (Ethically oriented x moderate action segment)” by comparing “Cluster 6: Value for Money/Economic Rationalist segment” and “Cluster3: Realistic Ethical Behavior Segment Concerned About Practical Benefits And How They Are Seen By People Around Them”, with attributes with the largest differences their characteristics as seen in Fig.8.
Fig.8
The main segment is women in their 30s-40s who have children and work part-time or are full-time housewives.
Because of their relatively low annual household incomes, and their self-consciousness of not having financial leeway, we surmise they have financial hurdles to engaging in ethical consumption behavior, but they are interested in social issues, and have a strong sense of ethics in doing things for the Earth, or the next generation.
When shopping, they focus on quality, brand, and production area, but it is essential these come with value for money. They don’t spend on unnecessary things, and view ethical products as expensive, so are surmised to be in a position where they have to treat them as an unnecessary expense.
On the other hand, if they understand that ethical products will pay for themselves in the long run, and that they connect with a healthy lifestyle, a waste-free lifestyle, and a lifestyle that values objects, they will have purchase intention. They also have the intention to own hybrid cars, 5-star air conditioners/refrigerators, earthquake-resistant houses, and highly airtight/high-insulation houses in future. In addition, they are deemed not to purchase ethical products due to “not knowing which stores handle them”, “them being highly-priced”, and “never being conscious of sustainability”, indicating they have little ethical consumption-related input.
Let’s now think about how to encourage behavioral change among the current study’s targets. It will firstly be important to convey that “value for money” = “a merit for them”. Claims to being good quality and paying for itself in the long run should be particularly effective here. The wording “a waste-free lifestyle”, “a lifestyle that values objects”, and “healthy lifestyle” should be found appealing as merits to lay claim to. On top of this, claims to being for the good of society, the next generation, and the Earth are expected to have an effect in encouraging ethical behavior. Furthermore, in order to drive actual action, we deem that it will be particularly important to offer support in the following ways: price subsidies to overcome financial hurdles, and the provision of information that will be useful when taking action.
We specifically deem a two-step approach effective. The first step will start with “good value” + “ethical”, and once this sort of consciousness/behavior takes root, an “ethical” mindset will emerge, enabling them to identify with ethical “stories”. From here, people are expected to shift to a second step where they find value in “emotional satisfaction” even when purchasing products that are slightly expensive.
convey the fact saving behavior as ethical behavior with merits for oneself as well, such as “sizes that do not leave any leftovers”, “packaging that produces no (or reduces) waste” and “foods with long expiration dates”. In addition, “good value”, which offers a slight sense of satisfaction, could also be linked as ethical behavior, to convey the fact “recycling clothes (reducing waste)” and “buying products with short expiration dates (discounts)” are also forms of ethical behavior to effectively foster a sense of self-awareness that “they are consumers who act ethically”.
In the second step, conveying the appeal of leading an attentive life, and the “value provided (emotional value” of sustainable contributions towards creating a better society will encourage a change in consciousness/behaviour among people with emerging self-awareness as ethical consumers to paying an appropriate price for things of value. Claims that “good items can be used for a long time”, “it’s made from good materials, so is durable and can be used for a long time” and “It’s an attentively made product (with a story), so can be used for a long time” and claims that “it’s hand-made, so is healthy (you can tell its contents)”, “it’s hand-made, so doesn’t contain any additives”, and “it’s hand-made, so you can see who made it” should be effective.
We hope that this type of focus on this type of the target segment will help spread ethical consumption, and lead to the resolution of many more social issues.
The analysis in this article was implemented based on results from an INTAGE independent survey conducted with the following research design. Survey Area: Nationwide, Japan Respondent Criteria: 15~69-year-old men and women Sample Extraction Method: Questionnaires distributed to panelists extracted from INTAGE’s monitor panel Sample Size: n=5437s Gender and age quotas in line with Japan’s population structure Survey Implementation Period: (Wed) 27 ~ (Fri) 29, December 2023
Author profile
Yuji Akiya Group 2, Planning and Sales Division 2, Marketing Partner Headquarters 2, INTAGE Inc.
Akiya joined INTAGE mid-career in 2018. In his previous jobs at foreign
consulting firms and marketing research agencies, he was involved in a
large number of regional revitalization-related projects such as the
revitalization of downtown areas and promotion of industry in various
places across Japan. In his current job, he is engaged in marketing
research on the environment, energy, housing, and the real estate
sector, and is responsible for a large number of surveys regarding
changes in consumer consciousness, attitudes, and behavior on
ethical themes such as preventing global warming, decarbonization,
and sustainability.
Akiya joined INTAGE mid-career in 2018. In his previous jobs at foreign
consulting firms and marketing research agencies, he was involved in a
large number of regional revitalization-related projects such as the
revitalization of downtown areas and promotion of industry in various
places across Japan. In his current job, he is engaged in marketing
research on the environment, energy, housing, and the real estate
sector, and is responsible for a large number of surveys regarding
changes in consumer consciousness, attitudes, and behavior on
ethical themes such as preventing global warming, decarbonization,
and sustainability.
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