The Effects of In-groups and Out-groups on Ethical Consuming

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Volume Title

School of Business | Bachelor's thesis

Date

2020

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Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

24 + 6

Series

Abstract

Objectives The main objective of this study was to explore the interpersonal influences on ethical consumption in the terms of in-groups, out-groups and consumer identity. The purpose was to see if there is a significant correlation between the endorsement of a product by a reference group and the purchase decision of said product, alongside of a view on the brand. Summary To conduct the study a survey was created in order to find links between the different aspects of the study: ethical consumer identity, interpersonal susceptibility, influence of in-groups and out-groups and ethical consumption. The survey first measured the ethical consumer identity and interpersonal susceptibility. Then the respondents received either “in-group” or “out-group” -condition, where they were asked to name a group they either feel or don’t feel connection to. After this they were presented with a scenario where a company known for unethical behavior has been endorsed by members of said group. The respondents’ reaction and relation to the company and their products was then asked and compared to their previous answers and whether they had the in-group or out-group -condition. Conclusions As previous literature suggests, all consumption is tightly tied to the social signaling our consumption decisions relay. This has been seen in ethical consumption choices as well and the results of this study are consistent with this understanding. The study found no link between ethical consumer identity and purchase intention, although it did find a link between ethical identity and having a favorable perception of the brand. Similarly if the group endorsing the product was an in-group, the responses had a significantly higher and more favorable view of the brand, but this doesn’t lead to higher purchase intention.

Description

Thesis advisor

Shukla, Paurav

Keywords

consumer behaviour, consumer identity, consumption, ethical consumption, interpersonal susceptibility, in-groups, out-groups

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