Podcast Summary
Companies face ethical concerns but still see revenue growth: Consumers may not be as influenced by ethical concerns as assumed, allowing companies to grow despite controversy
Despite public protests and ethical concerns regarding the use of coyote fur and child labor in the production of their products, companies like Canada Goose and those named in the Amnesty International report continued to experience significant revenue growth. The protests against Canada Goose's use of coyote fur gained widespread attention, but it did not seem to deter consumers from purchasing their products. Similarly, the discovery of child labor in the mining of cobalt used in tech devices and the harsh working conditions at Apple's suppliers did not lead to notable drops in sales for these companies. These findings suggest that consumers may not be as swayed by ethical concerns as some might assume, and that companies can continue to grow despite controversy. However, it's important to note that there are many other factors that influence revenue, and this is just one perspective on the issue.
The Complex Issue of Willful Ignorance in Ethical Consumption: Despite claiming to prioritize ethical consumption, consumers often ignore unethical practices of beloved brands due to willful ignorance, which is a complex issue requiring further exploration.
Consumers often claim to prioritize ethical consumption, but in practice, they may ignore the unethical practices of the brands they love. This phenomenon, known as willful ignorance, is backed by research. For instance, studies have shown that consumers tend to avoid seeking information about a product's ethics to avoid facing hard truths. Even when consumers express a desire to pay a premium for ethical products, they may not follow through with their intentions when it comes to actual purchases. This disconnect between intentions and actions is a complex issue that requires further exploration. It's important to note that this doesn't make consumers less ethical as a whole, but rather highlights the human tendency to avoid discomfort and uncertainty. To learn more about this topic, check out the "d to c pod" podcast, specifically episode 318 featuring consumer psychologist Daniel Zane.
Impact of Ethical Information on Shopping Decisions: People use readily available ethical information to change purchasing behavior, but may forget negative ethical info, emphasizing the importance of transparency for businesses and informed decision-making for consumers.
Consumers' shopping decisions are influenced by ethical information presented at the point of purchase. While people may willingly ignore unethical news about their favorite brands, they do use ethical information to change their purchasing behavior when it's readily available. Research also suggests that consumers might actively forget negative ethical information about products, employing a motivated memory strategy. In a study, participants were asked to review information about different brands, including their ethical practices, and were later tested on their recall. The findings showed that participants were more likely to forget negative ethical information than equivalent positive information. This research sheds light on the importance of transparency in ethical practices for businesses and the role of consumers in making informed purchasing decisions.
Negative ethical info harder to remember than positive: Consumers forget negative ethical info 20% more often than positive, potentially leading to unintended ethical consequences.
Consumers have a harder time remembering negative ethical information about products compared to positive ethical information. This was observed in studies where participants were asked to recall or recognize ethical attributes of brands. The drop-off in recall was significant, with consumers being up to 20% less likely to remember negative ethical attributes compared to positive ones. Additionally, participants sometimes misremembered negative ethical information as positive. For instance, a brand that was described as using child labor was remembered as using fair labor. This is concerning because the memory gap between negative and positive ethical information can impact consumer decision-making and potentially lead to unintended ethical consequences. For example, a consumer might unknowingly purchase a product made with child labor because they forgot that the brand had been associated with this unethical practice. This phenomenon was observed across various product categories and ethical attributes, highlighting its widespread impact.
Reminding consumers about ethical attributes: Making consumers aware of ethical attributes at every stage boosts sales and revenue for ethical businesses
Consumers are more likely to forget unethical information related to products, and this forgetfulness is not viewed as morally wrong by them. Companies trying to sell ethical products should therefore make a conscious effort to remind consumers about these ethical attributes at every point of the customer decision journey. This not only helps consumers remember the ethical attributes but also leads to higher revenues for ethical businesses. For instance, a study found that products with sustainability messages had 6.4% higher revenues than those without them. However, this effect is only observed when consumers are exposed to the ethical practices at the point of sale. Therefore, companies need to make a conscious effort to showcase their ethical practices prominently to consumers.
Willful Ignorance and Social Consequences of Ethical Consumer Behavior: Ignoring ethical considerations in purchases can negatively impact consumers' perception of ethical consumers and potentially lead to social backlash, emphasizing the importance of transparency and ethical practices for businesses.
Consumers' behavior towards ethical purchasing can have social implications. In a study, marketing professor Danny Zayn explored the concept of willful ignorance, where consumers deliberately ignore ethical information when making purchases. He further examined the social consequences of such behavior. Participants were asked to make a hypothetical purchase while ignoring ethical information. Later, they were told about another consumer who considered ethical information. The results showed that participants' perception of the ethical consumer was not positive but rather, they viewed the ethical consumer as more ethical than themselves. This research highlights the potential for social backlash against consumers who ignore ethical considerations, which could impact their relationships and reputation. On a business level, this underscores the importance of transparency and ethical practices as a means to build customer loyalty and positive brand image. For more information, visit hubspot.com/service to enhance your customer support and create a better experience for your customers.
People's perceptions of those who prioritize ethics can be negative: Individuals who ignore ethical info may view ethically-minded consumers negatively, leading to less support for ethical initiatives
People who consciously ignore ethical information when making purchasing decisions may view and judge those who actively seek out such information negatively. This negative perception can lead to feelings of threat and inadequacy, causing the individual to denigrate the ethical other and even conclude that they themselves don't care about the underlying ethical issue. This spiraling effect can result in less engagement and support for ethical initiatives in the future. The findings suggest that individuals' comparisons and self-perceptions play a significant role in their attitudes towards ethics in consumer behavior.
Finding common ground before discussing ethics: Approach ethical discussions with positivity and inclusivity to create a receptive environment, focusing on shared interests and progress made towards ethical practices.
Approaching ethical discussions with a heavy-handed approach can lead to defensiveness and denigration from others. Instead, it's important to find common ground and bond over shared enjoyments before delving into ethical considerations. This can help create a more receptive environment for ethical discussions. For example, rather than criticizing a brand's unethical practices, focusing on the positive aspects and the progress they've made towards ethical practices can be more effective in changing opinions. This applies to various situations, including personal interactions and media communication. It's a delicate balance, but with care and savviness, ethical discussions can be more productive and successful. Additionally, it's important to recognize that changing someone's mind is a challenging task, and people tend to defend their beliefs and ignore information that contradicts their intended actions. However, by using a positive and inclusive approach, we can create opportunities for meaningful conversations and ethical progress.
Highlighting ethical attributes at the point of sale: Emphasizing ethical attributes during sales can help customers remember and value them, potentially increasing sales. Finding common ground during contentious situations can make opposing parties more open to changing their views.
Highlighting the ethical attributes of a product at the point of sale can help customers remember and value those attributes, potentially leading to increased sales. Additionally, finding common ground with those holding opposing beliefs can make them more open to changing their views. During contentious situations, focusing on shared values can be more effective than dwelling on differences. I'd like to express my gratitude to Danny Zane for sharing his research on this topic during today's episode. If you're interested in learning more, check out his website, linked in the show notes. For those who enjoyed today's discussion, I recommend listening to our previous episode, titled "The Hypnotizing Effect of Valentine's Day," where we explore how special days can influence spending habits and persuasive tactics. As always, your support in leaving a review, subscribing to the newsletter, and sharing this episode with others is greatly appreciated. Thanks for tuning in, and I look forward to bringing you another insightful episode of Nudge next week.
