Bridging the Attitude-Behavior Gap, Schemes and Mind Maps of Marketing

The attitude-behavior gap is caused by different barriers consumers face in sustainable consumption. Even though many consumers express favorable attitudes ...

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Bridging the
Attitude-Behavior Gap
- A case study for how an
FMCG company may decrease
the attitude-behavior gap
Master’s Thes is 30 credits
Master’s Programme in Business and
Management
Specialisation: Marketing
Department of Business Studies
Uppsala University
Spring Semester of 2021
Date of Submission: 2020-06-02
Felix Sjölinder
Josefin Norstedt
Supervisor: León Poblete
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Bridging the

Attitude-Behavior Gap

- A case study for how an

FMCG company may decrease

the attitude-behavior gap

Master’s Thesis 30 credits

Master’s Programme in Business and

Management

Specialisation: Marketing

Department of Business Studies

Uppsala University

Spring Semester of 2021

Date of Submission: 20 20 - 06 - 02

Felix Sjölinder Josefin Norstedt

Supervisor: León Poblete

ABSTRACT

Marketing has a vital role in encouraging sustainable consumption. The purpose of this study is to examine how a company’s holistic green marketing orientation affects the ability to decrease the attitude-behavior gap in the FMCG industry. The attitude-behavior gap is caused by different barriers consumers face in sustainable consumption. Even though many consumers express favorable attitudes towards sustainable consumption, their behaviors are constrained by internal and external factors. The study is conducted through a holistic, in-depth single case study with an FMCG firm regarding how they approach a holistic green marketing orientation. Depending on how a company applies green marketing strategies, it can either increase or decrease the gap. The authors found that a company applying a holistic green marketing orientation, consisting of internal-, strategic- and tactical green marketing orientations, enhances the company’s ability to decrease the attitude-behavior gap. Keywords: Attitude-behavior gap, Environmental sustainability, Green marketing orientation, Holistic green marketing, FMCG

Table of content

    1. Introduction
    • 1.1 Background
    • 1.2 Problem statement
    • 1.2 Purpose and research question
    1. Theoretical background
    • 2.1 Attitude-behavior gap
      • 2.1.1 Situational factors
        • 2.1.1.1 Price
        • 2.1.1.2 Product availability
        • 2.1.1.3 Product attributes and quality
      • 2.1.2 Individual factors
        • 2.1.2.1 Trust
        • 2.1.2.2 Knowledge and information
    • 2.2 Holistic orientation to green marketing
      • 2.2.1 Internal green marketing orientation
      • 2.2.2 Strategic green marketing orientation
      • 2.2.3 Tactical green marketing orientation
        • 2.2.3.1 Green Product
        • 2.2.3.2 Green Price
        • 2.2.3.3 Green Promotion
        • 2.2.3.4 Green Place
    • 2.3 Analytical framework
    1. Method
    • 3.1 Research philosophy
    • 3.2 Research design and approach
    • 3.3 Case study approach
    • 3.4 Case selection
      • 3.4.1 Case company presentation - Unilever
    • 3.5 Data collection
      • 3.5.1 Selection of participants
      • 3.5.2 Interview process
      • 3.5.3 Interview guide
      • 3.5.4 Observations
      • 3.5.5 Secondary data
    • 3.6 Data analysis

3.7 Reliability and validity of the findings 28 3.8 Methodological limitations 30

  1. The case of Unilever 31 4.1 Sustainability integrated in the entire business 31 4.2 Strategies with sustainability purpose 32 4.3 Improving products and packaging 35 4.4 Making sustainability easier for consumers 37
  2. Analysis and discussion 41 5.1 Holistic green marketing orientation 41 5.1.1 Internal green marketing orientation 41 5.1.2 Strategic green marketing orientation 43 5.1.3 Tactical green marketing orientation 45 5.1.3.1 Green Product 46 5.1.3.2 Green Price 47 5.1.3.4 Green Promotion 48 5.1.3.3 Green Place 49 5.2 Attitude-behavior gap 50
  3. Conclusion 52 6.1 Theoretical implications 52 6.2 Managerial implication 53 6.3 Limitations 53 6.4 Future research 54 References 55 Appendix 63 Interview guide 63 Operationalization 64 Observations, field notes 65 List of tables and figures Tables Table 1 - Table of participants Table 2 - Interview guide Table 3 - Operationalization of interview guide Table 4 - Field notes from observations Table 5 - Secondary data Figures Figure 1 - Analytical model Figure 2 - Coding scheme

consumption (Mont et al., 2015). The FMCG industry consists of consumer goods that are frequently bought, such as the sales of packaged food, cosmetics, and toiletries (Klein & Schmitz, 2016). Pileliene and Grigaliunaite (2017) describe FMCG products as low- involvement products with low prices and short shelf life. Pileliene and Grigaliunaite (2017) and Woodside and Summers (2011) argue that the FMCG industry applies different strategies to gain consumers' attention to ultimately increase purchases of these low-involvement products. As the characteristics of environmentally sustainable products differ from other products, new ways of working in order to engage concerned customers are required (Kilbourne, 1998; Pickett-Baker & Ozaki, 2008).

1.2 Problem statement

While research has studied the attitude-behavior gap from a consumer perspective and concluded that several factors restrain consumers from consuming sustainable products, researchers argue that research about the subject needs to shift focus (ElHaffar, Durif & Dubé, 2020). Instead of focusing on the reasons for why the attitude-behavior gap occurs, research should focus on how it can be resolved. Furthermore, while extensive research has been conducted from consumers’ perspectives, not many studies have looked at this phenomenon from a company perspective (ElHaffar et al. 2020; White et al. 2019). Due to the growing concern for the environment, green marketing has evolved as a means for companies to incorporate the societal concerns for the environment into their marketing initiatives (Dangelico & Vocalelli, 2017; Kilbourne, 1998; Prothero, 1990; Rivera-Camino, 2007). Dangelico and Vocalelli (2017) and Kilbourne (1998) argue that green marketing is often associated with actions that add green aspects to different traditional marketing tools, such as products and promotions. While green marketing strategies have the ability to reduce the gap (ElHaffar et al., 2020; Pickett-Baker & Ozaki, 2008), research has highlighted that companies fail to engage with customers through their green marketing practices since they possess a narrowed view of the concept and are only involved in a few green marketing activities (Leonidou & Leonidou, 2011; Rettie, Burchell, & Riley, 2012). If companies are to succeed with their green marketing activities and become more appealing in the customer’s eyes, they need to broaden the view of green marketing (Kotler, 2011; Papadas et al., 2019). Research claims that adopting a holistic green marketing orientation enables a company to manage environmental sustainability issues more efficiently and engage with customers more

sufficiently since the entire organization is influenced by environmental sustainability (Fraj, Martínez & Matute, 2009; Papadas et al., 2019; Rivera-Camino, 2007). However, it has not been studied how a holistic green marketing approach affects companies’ ability to decrease the attitude-behavior gap. Since companies make heavy investments in environmental equipment and processes (Leonidou et al., 2011), it is important to gain more understanding of this. Due to the FMCG industry’s considerable impact on household consumption and the environment, this is an important field to investigate as the attitude-behavior gap has been confirmed to be prevalent in this industry (Bressoud, 2013). Not many qualitative studies have been conducted from a company’s perspective to resolve the barriers identified in the attitude- behavior gap (ElHaffar et al., 2020). This study therefore strives to contribute with new insights into this research gap by studying how a holistic green marketing approach may resolve the attitude-behavior gap in sustainable consumption.

1.2 Purpose and research question

The purpose of this paper is to explore the activities that an FMCG company in Sweden applies to decrease the inconsistencies between attitudes and behavior in environmentally sustainable consumption, also referred to as the attitude-behavior gap. This is done by conducting a qualitative case study to understand the solutions actors in the FMCG industry apply to decrease the attitude-behavior gap. The study will build on previous studies regarding the barriers that cause the attitude-behavior gap and how companies can address these issues. Based on the mentioned purpose, the study aims to answer the following research question: How does a company’s holistic green marketing orientation affect the ability to decrease the attitude-behavior gap in the FMCG industry?

difficult for practitioners to balance and contribute with direct benefit for both the individual consumer and other consumers in society. This illustrates that companies in today’s marketplace do not tend to possess the right knowledge and ability to manage the different complexities to resolve the attitude-behavior gap. Prior research has identified both situational and individual factors as influencers of the attitude-behavior gap, and companies need to be aware of these factors in order to decrease consumers’ attitude-behavior gap (ElHaffar et al., 2020; Joshi & Rahman, 2015; Webster, 1975).

2.1.1 Situational factors

Situational factors are context-specific aspects that can hinder sustainable consumption. Common situational factors causing the attitude-behavior gap are price, product availability, and product attributes and quality (ElHaffar et al., 2020; Joshi & Rahman, 2015; Vermeir & Verbeke, 2006). 2.1.1.1 Price Price has been identified as one of the major influencing factors for the attitude-behavior gap since consumers might not be willing to pay extra for sustainable features (e.g., Gleim et al., 2013, Vermeir & Verbeke, 2006). Developing a product with improved sustainability may cause increased production costs, and the company can decide whether the company takes the higher costs or if they increase the price of the product (Tsarenko et al., 2013). Joshi and Rahman (2015) and Vermeir and Verbeke (2006) argue that if a company sets a higher price on sustainable products, it might outcompete a consumer’s ethical considerations, leading to a widened attitude-behavior gap. In response to this, companies can either lower the prices or deliver value to the point that it justifies a higher price (Davari & Strutton, 2014). However, companies struggle to convince the consumers that the products are worth the additional cost for acquiring and buying the product (ibid). 2.1.1.2 Product availability The availability of a product is a crucial determinator for if a consumer purchases a sustainable product (ElHaffar et al., 2020). Limited availability and difficulties in accessing sustainable products have a negative impact on consumption as consumers generally do not like to invest time searching for sustainable products, while high accessibility increases consumption (Vermeir & Verbeke, 2008; Young et al., 2010). Therefore, companies should focus on

expanding the availability of environmentally sustainable products in order to increase sustainable consumption (Vermeir & Verbeke, 2008). 2.1.1.3 Product attributes and quality For a consumer, the product attributes might be more important than the ethical considerations (Haynes & Podobsky, 2016; Joshi & Rahman, 2015; Young et al., 2010). Consumers tend to consider that the attributes of environmental products are of lower quality and functionality than regular products, which widens the attitude-behavior gap (Davari & Strutton, 2014; ElHaffar et al., 2020). A company can focus on product development that improves product attributes and quality to decrease the attitude-behavior gap (Davari & Strutton, 2014). According to Dangelico and Vocalelli (2017), the price a consumer is willing to pay is related to the product’s quality and attributes.

2.1.2 Individual factors

Individual factors are closely related to individual decision-makers, where trust and knowledge and information are common factors causing the attitude-behavior gap (Joshi & Rahman, 2015). 2.1.2.1 Trust Prior research highlights that trust toward a company is a significant factor influencing the attitude-behavior gap (Groening et al., 2018; Gupta & Ogden, 2009; Vermeir & Verbeke, 2008). Groening et al. (2018) divide factors that prevent sustainable consumption into product- related skepticism and company-related skepticism. Trust in sustainable products is the expectations and beliefs of the environmental performance of a product (Gupta & Ogden, 2009; Vermeir & Verbeke, 2008). Lack of trust towards sustainable products acts as a significant barrier towards sustainable consumption as customers are skeptical towards green claims and characteristics (Gupta & Ogden, 2009; Vermeir & Verbeke, 2008). Company-related skepticism has also been highlighted as an influencing factor, which occurs when the consumer is skeptical of the company’s commitment and incentives to sustainability (Groening et al., 2018). Greenwashing is when a company applies insincere or unjust actions that reduce the level of trust for the company (Dangelico & Vocalelli, 2017; Parguel, Benoît- Moreau & Larceneux, 2011). While some companies consciously deceive customers, it is frequently occurring that companies take actions without the intention to deceive, also referred

specific incentive or care for sustainability issues (Kemper & Ballantine, 2019; McDonagh & Prothero, 2014). Except for this, the study makes no distinction between green marketing, environmental marketing, and sustainability marketing. Green marketing has been defined with various descriptions and definitions. A common theme and core concept is the development of strategies to target and selectively appeal environmentally conscious customers (McDaniel & Rylander, 1993). However, Yu-shan (2010) takes a broader definition of the concept and defines it as encompassing all of the marketing activities applied to stimulate consumers’ environmentally sustainable attitudes and behaviors. Other definitions have been even broader, describing it as actions that address all consumers and consist of several marketing activities designed to demonstrate an organization's aim of reducing the environmental impact of their products (Groening et al., 2018). Martin and Schouten (2012) define green marketing as “ the process of creating, communicating and delivering value to customers in such a way that both natural and human capital are preserved or enhanced throughout ”, which is the definition this study applies to green marketing. Green marketing has evolved from being regarded as a marketing tool to become a core strategy for companies, shifting focus from specific problems to global sustainability issues (Dangelico & Vocalelli, 2017). Dangelico and Vocalelli (2017) argue that many actors applying green marketing have viewed it as a marketing mix approach where a few green characteristics of the products or the company are developed, which tends to fail. Instead of merely applying greening arguments to certain aspects, scholars have argued that green marketing must opt for a more holistic view on sustainability (Hult, 2011; Kemper & Ballantine, 2019; Polonsky, 2011; Thomas, 2018). By adopting a holistic orientation to green marketing, companies can utilize green marketing’s full potential and objectives (Hult, 2011; Thomas 2018). The business performance is strongly influenced by how successfully green strategies are formulated and implemented in a company (Rivera-Camino, 2007). Rivera-Camino (2007) argue that green marketing strategies are not a linear one-dimensional process, as it is a process that occurs at different levels by different actors. Green orientation is the degree to which environmental values have been integrated throughout the company (Fraj et al., 2009). According to Papadas, Avlonitis and Carrigan (2017), companies should simultaneously engage within an internal-, strategic- and tactical green marketing orientation to attain a holistic green marketing orientation. These three orientations influence each other, where the internal- and strategic green marketing orientation affects each

other, and in combination, both orientations have a significant impact on the tactical green marketing orientation (Banerjee, Iyer & Kashyap, 2003; Fraj, Martínez & Matute, 2011 ; Papadas et al., 2017). By adopting a holistic green marketing orientation, environmental sustainability thoughts become an integral part of the business and influence everything from the values to the marketing mix (Papadas et al., 2017).

2.2.1 Internal green marketing orientation

The internal green marketing orientation refers to green values, standards of ethical behaviors, and commitment to the environment, which resides internally within the organization and facilitates a company’s green culture (Banerjee et al., 2003; Mendleson & Polonsky, 1995; Papadas et al., 2019). According to Gregory-Smith et al. (2015), internal green marketing establishes support for organizational change and increases organizational commitment. By diffusing knowledge and embedding an environmental culture through the entire organization, McDonagh and Prothero (2014) argue that employees are encouraged to develop skills that more successfully deploy green marketing strategies. According to Banerjee et al. (2003), organizational learning occurs within a company where the obtained knowledge transcends over time and is incorporated into the business’s beliefs and values, which influences a company’s standard operating procedures and strategies_._ Hence, deploying activities that stimulate employee training, environmental awareness, and environmental leadership should be encouraged within organizations (Banerjee et al., 2003; Papadas et al., 2019). Papadas et al. (2017) supports this and argues that the internal environmental culture influences the ability to develop and implement green marketing strategies successfully. Banerjee et al. (2003) further argue that a high level of internal green marketing orientation is required for companies to manage activities within the strategic green marketing orientation. Fraj et al. (2011) argue that companies' environmental culture affects the performance of green marketing strategies as those companies that have a strong environmental culture have a higher tendency to be successful with their green strategy. Creating a climate within the company driven by concern for the environment is essential to develop efficient green marketing strategies (Fraj et al., 2009). Fraj et al. (2009) argue that a company’s environmental orientation reflects its internal values, ethics, and commitment to environmental ideals. Further, companies that consider environmental objectives have higher tendency to align them into their economic goals (ibid.).

Camino, 2007). Dangelico and Vocalelli (2017) argue that the 4 P:s of green marketing are helpful for understanding and utilizing the main characteristics of green products, identifying factors affecting the price and consumers’ willingness to pay for them, and the sales channels and promotional tools used to engage with customers. 2.2.3.1 Green Product Dangelico and Vocalelli (2017) define a Green Product as a product where the environmental impact of the production, use, and disposal is considerably reduced compared to regular products_._ Leonidou, Karsikeas and Morgan (2013) argue that green product initiatives can have both a strategic and tactical approach. On a strategic level, companies may adopt green product design techniques that modify the manufacturing processes, resulting in the development of new environmentally friendly products (Leonidou et al., 2013). On a tactical level, companies may work with issues related to the packaging and labeling of the product to make it more environmentally friendly. Papadas et al. (2017) argue that the development of products demands organizations to extensively refocus in order to develop products with improved environmental performance. 2.2.3.2 Green Price Green Price considers the economic- and environmental cost of production and marketing, while simultaneously contributing with value for customers and the business (Leonidou et al. 2013). On a tactical basis, this may imply pricing actions such as rebates to stimulate consumption for green alternatives. On a strategic level, it may involve actions that focus on life-cycle costs from an environmental perspective (Leonidou et al. 2013). Except for employing pricing strategies addressed for consumers, Papadas et al. (2017) argue that companies tend to use pricing strategies that reflect a product's environmental impact, donations to environmental organizations, and carbon offset pricing. 2.2.3.3 Green Promotion Green Promotion is the communication that informs stakeholders about the company’s different actions (Leonidou et al., 2013). On a tactical basis, it involves limiting any negative influence on a company's tangible communication. On a strategic basis, green promotion initiatives refer to communications that highlight the benefits of products and the company (ibid.). According to Dangelico and Vocalelli (2017), the quality and performance of communication influence the company’s ability to succeed with green marketing strategies.

Information needs to be communicated in a complete, correct, and understandable manner which can be done through e.g., advertisements and labels (ibid.). One way to promote sustainable characteristics of the product is through eco-labeling. For the labeling to be successful, it has to be attention-grabbing, easy to understand, and consistent across categories to increase consumers’ ability to make better informed environmental decisions (White et al., 2019). Having a third party certify the labeling gives validity to sustainability claims and makes it transparent and unbiased (Manget, Roche & Münnich, 2009). However, research has identified that eco-labels do not play a substantial role in predicting consumers' food selections (Grunert et al., 2014). 2.2.3.4 Green Place Green Place considers where and how products should be available (Dangelico & Vocalelli, 2017). Distribution has a considerable role to play here, where managers need to consider the whole process from production to consumption (ibid.). Green Place includes the distribution of green products from the origin to the point of consumption (Davari & Strutton, 2014). Dangelico and Vocalelli (2017) highlight that marketers need to be aware that green products have different characteristics, customer requirements, and regulations than traditional products. Therefore, the place where green products are sold can not necessarily be equalized with conventional products.

2.3 Analytical framework

After reviewing current research, an analytical model ( Figure 1 ) was developed with the purpose to analyze how holistic green marketing orientation affects a company’s ability to decrease the attitude-behavior gap. The analytical model proposes that a holistic green marketing approach, consisting of an internal-, strategic- and tactical green marketing orientation, can influence an organization's ability to decrease the attitude-behavior gap as the orientations support the company when addressing factors causing the gap. The holistic green marketing orientation incorporates environmental aspects throughout the whole business organization, which is vital when handling environmental sustainability (Papadas et al., 2019). Internal green marketing orientation is a vital part where the corporate culture and value is influenced by environmental sustainability, and competence enhancing

  1. Method In the following section, choices regarding the method and the consequences will be elaborated on. First, the research philosophy, design, and approach are presented, followed by the data collection process, a presentation of the data analysis, and finalized with a reflection about the method’s reliability and limitations.

3.1 Research philosophy

Studying green marketing requires a methodological path that guides the interpretation of the findings. It is essential to consider the research philosophy since researchers apply different perspectives and understand the world differently (Bryman & Bell, 2015). Easterby-Smith et al. (2018) define how a researcher views and perceives the nature of reality as the ontology in philosophy. Constructionism, the ontological position that this study applies, considers that social phenomena and meanings are accomplished by social actors that interact and construct meaningful social products (Bryman & Bell, 2015). Meaning is constructed through interaction and reflects the indeterminacy of the knowledge of the social world (ibid.). By taking a constructivist approach, we rejected the idea that the participants’ views could be understood objectively and disconnected from the individual’s influence. Bryman (2008) defines epistemology as the theory of knowledge and a stance of what should pass as acceptable knowledge. Qualitative research emphasizes subjective observations when obtaining knowledge as it contributes with insightful descriptions and a deep understanding of the phenomenon (Bryman & Bell, 2015; Easterby-Smith et al., 2018). Dubois and Gibbert (2010) suggest that critical realism uses casual language to describe the world and is therefore suitable for case research. For this reason, this study’s epistemological standpoint stemmed from critical realism. Thus, emphasis was placed on understanding the structures that generate specific events (Bryman & Bell, 2015).

3.2 Research design and approach

The study aimed to understand how a company’s holistic green marketing orientation affects the ability to decrease the attitude-behavior gap in the FMCG industry. As previous research states, there is limited research and understanding of how companies work to decrease the attitude-behavior gap (ElHaffar et al., 2020), which created a need for this study to develop a rich and detailed knowledge of the issue. For this reason, the study adopted an exploratory

qualitative research design. As Saunders, Lewis and Thornhill (2007) state, an exploratory research design seeks to understand the nature of the problem by interviewing experts in the field. The flexible nature of an exploratory research design was appealing for the study since new insights occurred during the data collection process, as we sought a deeper understanding of the holistic orientation and strategies that companies apply. Due to the scattered research within the field, an abductive approach has been used since this allows the authors to move back and forth between the theoretical framework and the empirical findings as new insights are revealed (Bryman, 2012; Dubois & Gadde, 2002; Dubois & Gibbert, 2010). Following the abductive approach, the authors initially applied discourses of green marketing in the theoretical framework. While these discourses may be valuable for understanding green perceptions within a company, they did not help answer the research question. For this reason, the theoretical framework was revised when the empirical data had been collected. Further, as perceived consumer effectiveness has been highlighted as an essential factor for why the attitude-behavior gap occurs, the authors initially strived to investigate how the holistic green marketing orientation could reduce the problems with this factor. After collecting the empirical data and reviewing the theoretical framework, it became evident that no clear connections between these theories were identified. Following the abductive approach, the authors chose to remove this factor from the research. Applying a qualitative design gives the authors a deeper understanding of the researched issue (Bryman & Bell, 2015; Yin, 2009). Hence, this design gave the authors a deeper understanding of the phenomenon of holistic green marketing orientation’s effect on the attitude-behavior gap. This design also provided an understanding of various processes, meanings, concepts, and observations (Bryman & Bell, 2015). It was suitable because it allowed the authors to ask questions regarding why and how in order to understand the phenomenon. According to Durdella (2018), qualitative research consists of five main concepts: describing, discovery, research, interpretation, and verification. This study has touched upon all different areas, with the purpose to make subjective interpretations and discoveries and to describe and verify earlier research on the topic. The qualitative design was also necessary, as Bryman and Bell (2015) state, because the collection of data was primarily based on stories and words, rather than on quantitative data where statistical analysis would have been suitable.