ethical marketing
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Deals with ethical marketing.TRANSCRIPT
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A study of the impact of ethical marketing
practices for gaining competitive advantages-
a case study of Waitrose UK.
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ABSTRACT There is cutthroat competition in the retailing industry,Getting competitive advantage
is getting very difficult and challenging for sustainable growth of any business. The
major aim of this research paper is to investigate the impact of ethical marketing on
competitive advantages for Waitrose, UK. Ethical marketing is performed by many
companies but how much this is contributing to the company in form competitive
advantages remained as key question.
As I have gone through the related research papers and articles, I have found that
Ethical marketing is the process of making marketing decision by using morality and
ethics to gain sustainable market position by thinking broader perspective rather
narrowly individual perspective. For ethical marketing, an organisation should focus
on different aspects. On the other hand, competitive advantages are the positions and
opportunities which will keep one organisation ahead of its rival organisations in
terms of products, offers, market shares or anything.
To understand about how important it is to practice ethical marketing in the
organization, I have done a quantitative study. Null hypothesis and alternative
hypothesis have been constructed. And data from the quantitative survey have been
analysed.
From the study it has been evident thatWaitrose follows a mix of tools as part of its
ethical marketing strategy. There are few options available for ethical marketing to
Waitrose which can lead Waitrose to sustainable competitive advantage. On the other
hand the study has also revealed that when the marketing professionals of Waitrose
practice good ethical activities the ethical practice of the marketing professional
influences the customers positively. Also, a positive correlation is found in Waitroses
different program under its ethical marketing wing. It got the market recognition and
the customers perception has been changed positively toward the company.
However, as found out from the survey result, some customers strongly disagree and
some just remained neutral that ethical marketing is being performed properly in
Waitrose.
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i. Table of Contents
ABSTRACT .......................................................................................................................................... 2
Chapter 1: Introduction ................................................................................................................. 6
1.1 Background of the research ....................................................................................... 6
1.2 Rationale of the research ............................................................................................. 7
1.3 Aims of the research ...................................................................................................... 9
1.4 Objectives of the research: .......................................................................................... 9
1.5 Research questions: ....................................................................................................... 9
1.6 Research hypothesis .................................................................................................. 10
Chapter 2:Literature review ..................................................................................................... 10
2.1 The concept of Ethical marketing ............................................................................... 10
2.2 Different ways of ethical marketing .......................................................................... 12
2.2.1 General standards of truth: .................................................................................. 12
2.2.2 Developing ethical values of marketing professionals: ............................. 12
2.2.3 Advertising and promotion: ................................................................................. 13
2.2.4 Consumers centricity in ethical marketing practice: .................................. 13
2.3Competitive advantage .................................................................................................... 14
2.4 Relationship between ethical marketing and competitive advantage ... 14
2.5 Conceptual framework .............................................................................................. 22
Chapter 3: Methodology of the research .............................................................................. 25
3.1 Philosophy of the research ...................................................................................... 25
3.2Approach of the research ................................................................................................ 25
3.3 Research Strategy: ...................................................................................................... 26
3.4 Type of the investigation/Design .......................................................................... 27
3.5 Data collection methods .............................................................................................. 28
3.6 Sampling method ......................................................................................................... 28
3.7 Data analysis ................................................................................................................. 29
3.8 Ethical issues ................................................................................................................. 30
3.9 Accessibility issues ..................................................................................................... 30
3.10 Limitations ..................................................................................................................... 31
3.11 Anticipated findings ................................................................................................... 32
Chapter4: Result and Discussion ............................................................................................ 32
4.1 Result ..................................................................................................................................... 32
4.1.1 Demographic variables .......................................................................................... 32
4.1.2 Cronbachs Alpha .................................................................................................... 34
4.1.3 Green Marketing (GM) ......................................................................................... 35
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4.1.4 Development of code of ethics (DCE) ............................................................. 37
4.1.5 Ethical value of marketing profession (EVMP) ............................................ 38
4.1.6 Comply with regulation and standards (CRS) .............................................. 41
4.1.7 Right and true information in Promotion (RTIP) .............................................. 43
4.1.8 Corrective Advertising .............................................................................................. 44
4.1.9 Positive Effects on the Consumers (PEC) ........................................................... 45
4.1.10 Competitive Advantage ....................................................................................... 46
4.1.11 Correlation Analysis ............................................................................................. 48
4.1.12 Regression Analysis .............................................................................................. 49
4.2 Discussion ................................................................................................................................. 52
4.2.1 Setting general standards of truth .......................................................................... 52
4.2.2 Development of ethical values in marketing professionals .......................... 53
4.2.3 Advertising and promotion ethically ..................................................................... 54
4.2.4 Ethical manufacturing and endorsement of products .................................... 55
4.2.5 Ethical practice with Customers.............................................................................. 56
4.2.6 Competitive advantage ............................................................................................... 56
Chapter 5: Conclusion and Recommendations ...................................................................... 57
References ....................................................................................................................................... 60
Appendix A ..................................................................................................................................... 64
Appendix B ...................................................................................................................................... 69
ii. LIST OF FIGURES
Figure 1: GM (Question one) .................................................................................................... 36 Figure 2: GM (Question Two) ................................................................................................... 36 Figure 3: GM (Question Three) ................................................................................................ 37 Figure 4: Development of code of ethics (DCE) ................................................................ 38 Figure 5: EVMP (Question One) .............................................................................................. 40 Figure 6: EVMP (Question Two) ............................................................................................. 40 Figure 7: EVMP (Question Three) .......................................................................................... 41 Figure 8: Comply with regulation and standards (CRS) ................................................ 42 Figure 9: Right and true information in Promotion (RTIP).......................................... 44 Figure 10: Corrective Advertising .......................................................................................... 45 Figure 11: Positive Effects on the Consumers (PEC) ...................................................... 46 Figure 12: Competitive Advantage (Question One) ......................................................... 47 Figure 13: Competitive Advantage (Question Two) ........................................................ 48 Figure 14: Competitive Advantage (Question Three) ..................................................... 48
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iii. LIST OF TABLES
Table 1: Demographic variables ............................................................................................. 33 Table 2: Cronbachs Alpha ........................................................................................................ 34 Table 3: Ethical Marketing Strategies (EMS) ..................................................................... 35 Table 4: Development of code of ethics (DCE) .................................................................. 37 Table 5: Ethical value of marketing profession (EVMP) ................................................ 39 Table 6: Comply with regulation and standards (CRS) .................................................. 42 Table 7: Right and true information in Promotion (RTIP) ........................................... 43 Table 8: Corrective Advertising............................................................................................... 44 Table 9: Positive Effects on the Consumers (PEC) ........................................................... 45 Table 10: Competitive Advantage .......................................................................................... 47 Table 11: Correlation Analysis ................................................................................................ 49 Table 12: Model Summary for Positive Effects on the consumers ............................ 50 Table 13: Coefficients for Positive effects on the consumers ...................................... 50 Table 14: Model summary for Competitive advantage .................................................. 51 Table 15: Coefficients for Competitive advantage ........................................................... 51
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Chapter 1: Introduction
1.1 Background of the research
In this modern day of business, building customer equity through building brands is
the key. But for building brands it is imperative to gain sustainability, which can
come from different practice. Ethical marketing practice is one of the area from where
competitive advantage can come through. In the long run it helps the firm to survive
in the world of extreme competition.
In ethical marketing there are no hard and fast rules, but a general set of guidelines to
assist companies as they evaluate new marketing strategies. (Anderson and
Kerr,2002). When done in a thoughtful way, ethical marketing can be an economical
and effective form of advertising. Similarly, unethical advertising doesn't guarantee
higher sales or lower advertising costs.Some companies operate according to lofty
personal principles. For these companies, advertising in an ethical way is a natural
and necessary extension of their corporate character. In this era of competitive retail
business world companies that are known for treating workers fairly, sourcing
sustainable materials, environmental stewardship, and charitable donation have to
reflect these principles in their marketing effort(Kurtz, 2010). Waitrose UK has been
taken as the sample organisation to conduct the research on impact of ethical
marketing practices for gaining competitive advantages. Waitrose is a UK origin
exclusive supermarket chain offering quality grocery products and other essential
commodities across the UK. Waitrose is a subsidiary company of John Lewis and
John Lewis acquired the Waitrose in 1937(waitrose.com, 2014).
They set their guideline of their ethical marketing practice and set standards for their
competitors. Ethical marketing helps the firm to gain the trust of their customers.
Trust is the key to build brand. The customers can take easily products from the
Waitrose. The consumers do not have to worry about the quality of the products and
the price associated with it. As they are performing the ethical marketing they will not
any unethical activities with their customers. Consumer buying decision is much
dependent on the marketing communication. By the ethical marketing activities
Waitrose will be able to gain the faith and confidence of their customers (Anderson
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and Kerr,2002). Moreover the societies over all development will be possible by the
ethical marketing. In the ethical marketing activities it will be defined what is right
and what is wrong. Any communication that easily guile the customers will not be
preferred and most importantly it will be avoided by the company. All this help the
company to supersede their competitors and gain a competitive advantage. Moreover
in the ethical marketing the firm will not claim anything that they cannot serve to their
customers. They do not try to dupe their customers. So more and more customers will
join the company for their purchase and also the share of the customers and the mind
of the customers will increase eventually. Many companies involve themselves in the
gullible practices and the customers are fool of it. But these are not expected and
moreover the gullible practice is also disclosed with the help of the technology to the
customers in the time. So those companies who practicing the ethical marketing
practise in their marketing activities those are getting advancement in the competitive
advantage. And building more brand equity while serving customers in a better way.
These companies are not concerning about their higher profit rather they are
concerning about their ethical standards and the customers satisfaction and customer
loyalty. With the advancement of the technology the business can have access to
much information of the customers which they can use for the benefits of the
customers and irony of the fact is that these information and access can be harmful to
the customers. So to maintain the market position in the market place many
companies are involving themselves in many unethical and illegal practices which
disrupt the rights of the customers.
Therefore, this study has been conducted to understand the criticality of ethical
marketing practice for gaining competitive advantage for a firm.
1.2 Rationale of the research
The success of retail business mainly depends on how much influence they can create
on consumers mind as it is the main tool of gaining competitive advantages (Lars,
2008). Consumers value ethical marketing so highly that they are willing to pay more
for products and services from socially responsible companies. In addition, by
conveying important information about how products have been manufactured in a
socially or environmentally responsible manner, companies may increase market
share relative to competitors that are poor corporate citizens (Hopkins, 1999). So it
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became a vital issue to find out whether the ethical marketing practise helps retail
organisation like Waitrose to gain competitive advantage over its rivals.For retail
organisation like Waitrose, ethical marketing will be little more than an opportunity to
boost their credibility (Kurtz, 2010). As customers are concerned about the
organisations responsibility and ethics now days, it is very important to know about
the how these ethical marketing policies are helping organisations like Waitrose to
gain competitive advantages. So now a days it became very important to find out how
the ethical marketing helping organisation like Waitrose to gain competitive
advantages and what are the consumers thinking about the ethical marketing practice
of Waitrose.
This research will shed light on various ethical marketing strategies of Waitrose. This
research will help retailer like Waitrose to find out the best approach to gain
competitive advantages by using their Ethical marketing practice.
The competitive advantage is very prominent factor for the organization (Anderson
and Kerr ,2002). By the competitive advantage the company can achieve the points of
parity and points of difference which help the company in building their brand equity.
Itwill help Waitrose to reflect ethics in all parts of their organization culture and thus
can convey a good feeling of ethics to its stakeholders. That is why this research has
been taken into consideration.
Ethical marketing practices for gaining the competitive advantage in the market place
over the competitors over the Waitrose in the UK is the main issue of the research.
The research is all about the competitive advantage that gave by the Waitrose by the
practice of the main concern and the study is based on these competitive advantage
and ethical marketing related issues.
Now the business world is very competitive. That is why this issuehave been chosen.
This issue would be very benefit for the company that is why this issue is the matter
of concern. The thing about the customer regarding the ethical practices of the
company, the perception of the ethics to the customers can lead the Waitrose to design
their marketing communication in the near future. Thus they can easily fulfil the need
and demand of the customers and they can earn the trust of the customers. So the
purchase of the customer is eventually increase and the company can earn profits that
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they can use for their future growth to be the market leader in the market of the UK.
Also this not the ending the company can get the customers loyalty which made them
to create a stable position in the market.
So, the key need for doing this research is understanding how ethical marketing
practices can be leveraged to gain long term competitive advantage for a retail
business. The retail area is chosen as the level of competition is huge in that sector.
And finding a blank space where an organization can fit its core strength is very
critical for the overall business growth of that firm.
1.3 Aims of the research The aim of the research is to analyse impact of ethical marketing practices for gaining
competitive advantages for Waitrose UK.
1.4 Objectives of the research: The main objectives of the research are given below:
O To study the components and dimensions of ethical marketing.
O To examine various dimensions and aspects that should be considered in
establishing competitive advantage.
O To assess the role of various components of ethical marketing in creating
competitive advantage in the context of UK retail industry.
O To recommend improvements required for the companys current ethical marketing
approach to improve competitive advantage.
1.5 Research questions: The research questions are mentioned below:
What are the key dimensions of ethical marketing strategies?(of Waitrose in
UK)
What are the major components of ethical marketing practices?
How customer equity, trust and loyalty is related and relevant to ethical
marketing?
What are the major components of ethical marketing related to retail industry
in UK?
How ethical marketing practices are related to gain sustainable competitive
advantage for a retailing firm?
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What is the current/general practices related to ethical marketing?
What are the key functions where the companies (mainly in retailing industry)
need improvement to make the practice better?
1.6 Research hypothesis
H0 = the practice of ethical marketing in a company help build sustainable
competitive advantage.
H1 the practice of ethical marketing in a company doesnt help build
competitive advantage.
Chapter 2:Literature review
There are a good number of researches that has been done in this field of ethical
marketing and competitive advantage. There are differences in opinions and
frameworks that has been used in each of the research. However, there are some
similarities among the variables which are studied in relation to this field.
The dynamics of marketing is not all same as it was ten years back. Everyday there
are thousands of brands and new products are getting launched in different parts of
the world (Chatzidakis, 2014). The day after the launched it is getting commoditized.
Therefore finding a competitive advantage over the other products, brands or services
is tougher than any time before. The reasons behind these are many fold. According
to Bodkin and Stevenson, 2006The ethical marketing for the company is helpful for
the overall development and success. That is why this research has been taken into
consideration(Bartels, 2007).
2.1 The concept of Ethical marketing
The transparency, honesty and community sensitivity has been the key focus area of
ethical marketing. The reason is, there are huge debate about the marketing budget
and spending around the world. So, it is obvious, highlighting the importance of
ethics while executing a communication will get highest priority in any marketing
context.
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Ethical marketing refers the process of making marketing decision by using morality
and ethics to gain sustainable market position by thinking broader perspective rather
narrowly individual perspective(Brennan, 1991). Ethical marketing helps to promote
honesty, integrity, frankness, fairness and responsibility among the activities of the
organisation and among the employees(Brennan, 1993). It refers (Budner, 2004) the
general standard of truth of all the activities of the organisation and for the employees
to deal with their jobs and responsibilities.Wentworth (2011) mentioned that sincerity,
honesty, fairness and truthiness are the key elements of ethical marketing which
should be blend with ethics, logic, morality and mutual respect for market
participants. Tatic(2014) indicated that organisation should comply and strictly follow
all the rules, regulations, laws and specific standards which are also part of
implementing ethical marketing that can help to gain competitive advantages.
The ethical marketing is very important in the business field to gain the competitive
advantage. Over all ethical marketing deals with what is right and what is wrong. So
the thing is clear to the marketer that the ethical marketing deals with the activities
which are very right for the customers and the society in the long run(Thompson,
Strickland and Gamble, 2008). Any activity that is done for the persuasion of the
customers and to evoke the customers is very wrong for the company. So these
activities are strictly prohibited in the ethical marketing. The company can claim on
those features and attribute that they have already or they will eventually build this in
the near future. Some examples of the ethical marketing are as follow. The advertising
agencies that made the advertisement cannot claim any kind of false attributes and
moreover they cannot post anything that is harmful for the society(Brati, 2011). The
products which are harmful for the customers that are cannot include in the
advertising or any other communication activities(Thompson, Strickland and Gamble,
2008). Any fraud persuasion of the products is not given in the ethical marketing
activities.Bodkin and Stevenson, 2006 said that If any harm or unintentional loss of
the customers is made then the company will be responsible for the
actions(Chatzidakis, 2014) and they need to pay the full compensation of the total loss
to the customers and make necessary service recovery strategies(Thompson,
Strickland and Gamble, 2008).
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2.2 Different ways of ethical marketing
Ethical marketing is a part of sustainable marketing where the organisation uses logic
and morality in developing and implementing marketing strategies and marketing
decision making(Thompson, Strickland and Gamble, 2008). For designing effective
ethical marketing, an organisation initially can define the ethical marketing, then it
should identify on which activities or part of organisation it can focus.
Implementation part will be done following after this and then cost and benefit
analysis should be done to define its effectiveness in the organisational
activities(Thompson, Strickland and Gamble, 2008). For ethical marketing, an
organisation should focus on different aspects and they are mentioned below:
2.2.1 General standards of truth: Truthiness is the best virtue of all and it must be implemented properly as general
standards to ensure the proper implementation of ethical marketing(Thompson,
Strickland and Gamble, 2008). If truthiness is ensured, proper ethical value can be
developed and maintained which will make the ethical marketing path smooth.
Swanson et. al(1998) stated that it is mandatory for true ethical marketing to ensure
true implementation of true strategies by establishing true truthiness in the marketing
activities(Thompson, Strickland and Gamble, 2008).
The truth can guild the company in the long run and shows the way of developing the
ethical consideration in the company(Thompson, Strickland and Gamble, 2008).
When the company always claim the truth about their products then the customers can
definitely appreciate this and they trust the company. The customers get sure about
the product quality of the company.
2.2.2 Developing ethical values of marketing professionals: Nwachukwu et al.(1997) strongly emphasized that marketing professionals are the
key persons who are assigned to design the marketing strategies, implement them and
evaluate them also(Dabholkar and Kellaris, 1992). So, highest standards of ethical
values is mandatory for them to possess or develop for making efficient and effective
ethical marketing policies and strategies for gaining competitive edge in the
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market(Davidson, 2003). If the professionals are highly ethical, then it is very much
simple to make the ethical marketing strategies(Thompson, Strickland and Gamble,
2008).
2.2.3 Advertising and promotion: Ethical marketing can be best described to(Dabholkar and Kellaris, 1992) the
customers and other stakeholders through its advertising and promotional activities
which can represent the organisations ethical values at fullest level. According to
Boyd and Webb(2008), organisation should follow the rule of fairness in information
and news in advertising and promotion. Accurate information, proper representation,
appropriate elements should be use while advertise and promote the organisation and
its products. Any kind of fraudulent, misleading information, inappropriate elements,
illegal promotion and activities must be avoid for ensuring the ethical marketing in
advertising and promotion(Thompson, Strickland and Gamble, 2008).
Manufacturing and endorsement of products: Chatzidakis (2014) mentioned that
products are the ultimate things with which organisation is dealing with and depends
on. Benefits, market share, organisational success all depend on the products. Ethical
marketing should be designed by focusing importantly on the products that must be
fulfilled proper and promised standards. Chatzidakis (2014) further added that
products are needed to be high quality in nature and should provide the desired
outcomes and performance which can satisfy the buyers need and expectation at the
optimum level by keeping the promised standards at endorsement(Thompson,
Strickland and Gamble, 2008).
2.2.4 Consumers centricity in ethical marketing practice: Consumers are the sole focusing thing at the time of selling products and services and
the sole source of earning profits(Davis, 2002). Consumers expectation, desired and
feelings should be counted for designing the optimum solutions for the problems and
define the proper focusing point of ethical marketing. Luck (2006) defined that
Ethical marketing should be designed according to the consumers choice and
expectation(DOORN, 2008). The organisation should convey its ethics in marketing
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for giving a safe feeling to its customers(DOORN, 2008). The privacy of the
customers must be maintained properly and keep secret and out of reach from other
persons(Thompson, Strickland and Gamble, 2008).
Compliance with regulations and standards: Nwachukwu et al., (1997) emphasized
that for better designing and implementation of ethical marketing, organisation must
follow the regulations and standards for works and products(Editorial, 1995) because
it ensures the proper use of morality and laws in activities(Editorial, 1995). It will
help organisation to reflect ethics in all parts and thus can convey a good feeling of
ethics to its stakeholders (Thompson, Strickland and Gamble, 2008).
2.3Competitive advantage
Competitive advantage is a position(Ferrell and Skinner, 2008) where an organisation
can have some edge over its competitors which can make it more attractive among the
market participants. OShaughnessy(2002)concluded that competitive advantages can
be earned by creating superior values, best products, ethical marketing, good
promotion and advertising, customers satisfaction and anything(Franklin, 2007). For
sustaining in the competitive market, the first and foremost thing for organisation is to
use its resources to create competitive advantages(Fulmer and Conger, 2004) which
will differentiate it from others through unique features which eventually attract and
make customers loyal to the organisation(Laczniak, Lusch and Murphy, 2009).
2.4 Relationship between ethical marketing and competitive advantage
Competitive advantages refer to the positions and opportunities which will keep one
organisation ahead of its rival organisations in terms of products, offers, market
shares or anything(Lapersonne, 2013). Ethical marketing is rationale marketing
decision making process which will promote ethics and morality in marketing
process. Ross(2003) stated that ethical marketing is very much appreciated by the
stakeholders especially by the customers. Ross(2003) also said that if any
organisation can prove its ethical behaviour in marketing customers will attract more
and will be more loyal to them which will create market fame(Gaedeke, Kelley and
Tootelian, 1995) and increase market share that will ultimately give organisation
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competitive advantages over its competitors in the market(Lapersonne, 2013). Thus
ethical marketing can create competitive advantages for organisation(Laczniak, Lusch
and Murphy, 2009).
The first aspect is with the advent of technology it is very easy to replicate and
produce a same type of products. The second aspect is consumers have numerous
choices within a certain category and there is wide variety of price range as
well(Laczniak, Lusch and Murphy, 2009). The third and the foremost important factor
is, innovating something new is not as difficult as it was decades back. Media
marketing has been changed so there are more options to market certain products or
services (Chatzidakis, 2014). It is now easier to start a business in a new geographic
location. There is brick to click model which is been capitalized to pin point the target
customers. All the changes bring a lot of opportunities to find new gap to fit in with
new offerings(Laczniak, Lusch and Murphy, 2009). The ultimate result is room for
innovation is there are gateway is filled up by the new products. Therefore it has
become very critical to build competitive advantage over the competitors. Thus
building and or fending off the differentiation is very important to expand the growth
stage of the product life cycle (Chatzidakis, 2014).
There are many ways to attain competitive advantage for a company. A business set
up in a low-cost geographic location where labor is cheap and sourcing materials is
easier (Lapersonne, 2013) surely enjoy an advantage over the other companies
which are established in more costs incurring infrastructure (Barney and Hesterly,
2006). However, there are many roots from where competitive advantage can add
value to a company as a whole. This value addition can be seen in a product.
Competitive advantage comes from many sources (Chatzidakis, 2014). It can come
through low cost distribution system, finest innovation capacity, technological
advancement and adaptation(Kearns, 2003), strong customer equity and reputation of
the company or from a particular style or way of doing business. This how
competitive advantage can be attained (Barney and Hesterly, 2006).
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Source :(marketing director, 2011)
As already mentioned by (Kellaris, Dahlstrom and Boyle, 1996) and all know,
marketing is completely an inter-connected discipline which has to work in harmony
with the cross functional teams with maximum interaction (Brati, 2011). This nature
of marketing makes it very critical to decide on the key functional parameters of
marketing. However, it matter very less what strategy is working for what company in
which context of the market(Laczniak, Lusch and Murphy, 2009). Key factor drive
the decisive point of business growth is how marketing help build competitive
advantage for a company (Brati, 2011). The evolution of marketing happened this
way for a long time. From production concept, to product concept, from marketing
concept to customer centric marketing(Laczniak, Lusch and Murphy, 2009), and later
from societal marketing to holistic marketing concept -all these practices have been
evolved over time to find the best suited practice of that time which enhance the
business growth(Kleiser et al., 2002) and to sustain for a longer period in the market
(Brati, 2011). Apart from all evolutionary marketing concepts, there were handful
numbers of debates around marketing practices(Kleiser et al., 2002). Therefore, need
to practice ethical marketing(Marta and Singhapakdi, 2005) in all aspects of
marketing functions in a company gets heard more loudly than any time before
(Ferrell and Skinner, 2008).
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The key rationale behind practicing ethical marketing is(Laczniak, Lusch and
Murphy, 2009) to benefit the customers, the society and the other internal and
external stakeholders(Lapersonne, 2013). At the same time, fostering the business
growth and becoming sustainable in a certain market(Laczniak, Lusch and Murphy,
2009).
The stakeholders of marketing are many(O'Shaughnessy, 2002) and the influences of
external stakeholders of a company impact the total business process
strongly(O'Shaughnessy, 2002). There are community activist about healthy food,
environmental pollution, delivering right quality, protecting natural resources, non-
discriminatory practices etc(Palmer, 2005). Stakeholders related to all these aspects
influence marketing practices as a whole (Ferrell and Skinner, 2008).. Therefore,
practicing ethical marketing in all areas from product development, to developing
brand and marketing communication it is very vital to practice ethics and moral
obligations(Petryna, Lakoff and Kleinman, 2006). Many a time there are set ethical
regulation for companies which are operating in different countries (Ferrell and
Skinner, 2008). These companies practice ethical sourcing, new product development
and communications in as spheres(Rawwas, Vitell and Festervand, 1994). The
outcome of following set ethical rules and regulations yield many benefits for a
company. Achieving competitive advantage is one of them(Reidenbach and Robin,
1991).
American Marketing Association (AMA) has developed this model of ethical
marketing.
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Figure- Model of ethical marketing
Source- Thompson, Strickland and Gamble, 2008
This model explains the total process of gaining competitive advantage through
ethical marketing(Laczniak, Lusch and Murphy, 2009). It has started from the social
and cultural environment(Siedel and Haapio, 2010). Then it considers the ethical
dilemma, individual decision making, corporate policy and opportunity and then it has
ended y evaluating the behavior which are ethical and unethical.
Competitive advantage from ethical marketing practices has different
forms(Singhapakdi, 2004). For instance, a company which produces fruit juices can
build its marketing communications saying (Ferrell and Skinner, 2008). Hundred
percent natural juices(Singhapakdi, 2004). However, in reality if the formulation and
processing of fruits downplay the natural quality and nutritional value of that fruit
brand(Thompson, Strickland and Gamble, 2008), then it is definitely not an ethical
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practice(Laczniak, Lusch and Murphy, 2009). So it is very important to manoeuvre
the communication as well as the other marketing mix of a company or for a brand
very carefully(Twedt, 2003). In other case, delivering the right values both in terms of
tangible and intangible is a key to maintain strong customer equity which later
provides competitive advantage after a certain period of time(Van Hoose and Kottler,
2007). Based on the ethical marketing concept there are many companies which are
enjoying strong competitive advantage (Franklin, 2007). For example Wholefood,
ToysRus, Catterpillar, HSBC bank who directly talk about ethical marketing practices
in their product design and brand communications(Wheeler, 1995).
On the other hand, there are negative consequences of not practicing ethical
marketing(Fulmer and Conger, 2004). In recent years there was big buzz around the
world about sourcing low cost apparels from the least developing countries(Fulmer
and Conger, 2004). There are brands like GAP, Nike, Wallmart, JCPenny which are
sourcing cloths from Asian countries like Bangladesh, India, China and
Vietnam(Williams and Aitken, 2011). In all these countries labor is cheap and it is
reported that labor are exploited(Fulmer and Conger, 2004). As a consequence of
these, in many parts of the United States and European countries(Fulmer and Conger,
2004), consumers boycott the some apparel brands due to not paying right value and
not taking proper action against the exploitation of cheap labor. So, this is one of a
result of not obliging and practicing the ethical marketing(Fulmer and Conger, 2004).
A firm can achieve competitive advantage over the same type of companies i.e.
apparel brands if they start practicing the ethical sourcing and marketing in their
company(Fulmer and Conger, 2004).
Ethical marketing can be implemented by company of all size and type. This practice
helps to gain added value to the companys way of running business
smoothly(Laczniak, Lusch and Murphy, 2009). There are many practices which are
not maintained due to the context of the business environment and also, considering
the extent of stakeholders influence(Laczniak, Lusch and Murphy, 2009). Many
theorists of marketing urge marketing practitioner to keep the ethical ground right in
marketing mix. From new product development to pricing, ethical consideration make
the firm stronger in terms of valuing its customers(Wong and Taylor, 2000). While
developing new product, sourcing raw materials at a fair price without harming the
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other parties and is expected by the stakeholders(Laczniak, Lusch and Murphy, 2009).
Regarding pricing, the ethical ground is to maintain the value that customer expects
from a certain price points(Fulmer and Conger, 2004). If there is mismatch in between
the pricing and the products a company offer then it will not be able to maintain the
sustainable competitive advantage in a market. However, there are many
controversies about maintaining a good-value pricing for the companies which
operates multiple countries (Managing knowledge for competitive advantage, 2000).
In a developing country where the economy is inflationary then pricing strategy of a
company should be adjusted with the inflation and the disposable income of the
people of that country(Thompson, Strickland and Gamble, 2008). About distribution
and place decision of many companies, there are ethical aspects which directly impact
the practice of ethical marketing by that very firm(Wong and Taylor, 2000). TATA
motors in India faced same time of challenges from the environmentalist and the
community activist for taking the land of the farmers to build the factory in West
Bengal(Wong and Taylor, 2000). So, even if there is feasibility and high opportunity
of a product or brand get established in a certain region but has the likelihood to
impact the environment negatively, should always be considered(Managing
knowledge for competitive advantage, 2000). Finally the big part communication
strategy for any brand or for the company as whole is vital. Because this is how
people do perceive about the company(Wong and Taylor, 2000). Communication
which targets children, women, and religion be well thought and proper planned so
that it didnt provoke anything discriminatory or harmful for the same people it is
targeted(Thompson, Strickland and Gamble, 2008).
Honesty, Responsibility and Fairness are the three major pillar ethical marketing
practice considers(Tatic, 2014). These three are used and maintained perfect in sync
in all aspect of marketing mix and product development(Thompson, Strickland and
Gamble, 2008). Also, considering STP process i.e. segmentation, targeting and
positioning honesty, responsibility and fairness(Thompson, Strickland and Gamble,
2008) is manoeuvred by the companies who has substantial and sustainable
competitive advantage(Managing knowledge for competitive advantage, 2000). The
aftermath of maintaining this ethical marketing is many. It helps increase the trust of
the customers toward the company(Thompson, Strickland and Gamble, 2008). And
then the overall shareholder value of the firm goes up by this. Any firm show-case
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their ethical practices in marketing communication gives a sure advantage and
attention of the concerned community influencers and stakeholders(Thompson,
Strickland and Gamble, 2008). Sometime a competitive advantage which is built by
the company people and resources for a long time gets ruined only because of not
abiding the ethical principles of marketing(Wong and Taylor, 2000). So, it is always
better to enhance the shareholder value and customer equity of by practicing the
principles Honesty, Fairness and Responsibility(Managing knowledge for
competitive advantage, 2000).
As like all other marketing disciplines there is no concrete and conclusive models for
defining and identifying the standard practice of ethical marketing to achieve
competitive advantage(Managing knowledge for competitive advantage, 2000). Also,
these principles and models to achieve competitive advantage may not be pertinent
for all types of companies across industries(Siedel and Haapio, 2010). Therefore, one
thing is obvious that there is ample opportunity to improvise and refurbish the concept
to a great extent(Managing knowledge for competitive advantage, 2000).
Source: Tutor2u.net
Also, these are few key classic variables of competitive advantage which are
interrelated with the ethical marketing practices as well. Bringing differentiation, cost
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leadership are more pertinent with the retailing firm. Thus these are aspect which are
taken in to consideration to develop the final study framework of this research.
In sum, marketing these days is far challenging due to the advent of technology and
too many me-too brands out in the market place(Managing knowledge for competitive
advantage, 2000). Therefore, it is critical to ensure that a firm has competitive
advantage over the other firms. This competitive advantage can come from different
sources for different companies(Singhapakdi, 2004). As marketing is a key function
of the company thus it is interrelated with this aspect. However, marketing practices
are many and it has evolved as per the requirement of the time(Wong and Taylor,
2000). Ethical marketing is one of the practices which are triggered by the many
external stakeholders of the society(Managing knowledge for competitive advantage,
2000). Not all firms are maintaining and showcasing this practice strongly and
equally(Tatic, 2014). Therefore, for some companies it has become a vital tool to
practice ethical marketing to achieve competitive advantage(Tatic, 2014). The main
rationale behind this is it is win-win for the company and the customers(Siedel and
Haapio, 2010). It builds customer equity for the firm, increase the sustainability and
build trust toward the company(Managing knowledge for competitive advantage,
2000).
2.5 Conceptual framework In following figure, left side shows the independent variables of this research whether
dependent variable is given on the right side. This research is done by analysis the
relationship between these variables(O'Shaughnessy, 2002).
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Figure: Research paradigm
Source: Selfmade
The marketing strategies are primarily responsible for the gaining of the competitive
advantages(Siedel and Haapio, 2010). In the marketing strategy there involves green
marketing, corrective advertising, development of the code of ethics, right and true
information in the promotional activities and lastly the ethical values of the marketing
professionals(Williams and Aitken, 2011). All leads to positive effect on the mind of
the consumer. In the marketing strategies the ethical standards are added and made
these strategies into marketing strategies(O'Shaughnessy, 2002). After that the ethical
marketing policy framework needed to be developed and thenthe effectiveness of the
ethical marketing policy is measured. The drawbacks of the ethical marketing are
removed and building a relationship with the ethical marketing and competitive
advantages(Siedel and Haapio, 2010). By the ethical marketing practices company
can easily get a competitive advantage over its competitors(Williams and Aitken,
More customer centricity Equity of the brands
Transparency to external stakeholders
By bringing the efficiency in marketing functions By developing trust among the stakeholders
Maintaining on-going effort as a corporate citizen
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2011). So that competitive advantage is link with the ethical marketing and draw a
positive bandings like more the ethical marketing activities more the sales of the
company(Williams and Aitken, 2011). Lastly a positive effect on the company is got
from the ethical marketing practice. So this is how the research is fully designed and
the overall view of the total research is dependent on the competitive
advantage(O'Shaughnessy, 2002).
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Chapter 3: Methodology of the research In this chapter the researcher has shown the overall directions of the research that
guided in the research.
3.1 Philosophy of the research
This research is based on the positivism which is more on identifying empirical
evidences and current practices around ethical marketing. This approach is followed
in this study because, there are diverse norms and nuances but no established process
of following the guidelines of ethical marketing practices.
Research philosophy refers the perception of the researcher about the research, usages
and also the output of the research (Booth, Colomb and Williams, 1995). The research
philosophy is the view of the researcher that is going to use in the research. Due to
lack of prior experience and being an academic, assuming the knowledge parameter is
not wise for this researcher and research (Booth, Colomb and Williams, 1995). On the
other hand, without believing actual data but assuming actual data, it was not possible
to carry on a full reliable research. So, positivism philosophy was appropriate for this
situation. It would enable the research to avoid assuming any variables and to use
knowledge parameter which can bar the research. Ethical marketing is the parameter
of the measurement of the competitive advantages. That why the positivism
philosophy had been used in this research (Welman et al., 2005).
3.2Approach of the research
There are two types of research approach, one is deductive which is used to conduct
investigative research and other is inductive research used for conducting research
where theory needed to be formulated (Hamersveld and Bont, 2007). This research is
about ethical marketing and competitive advantages where the researcher did not find
it important that theories need to be formulated. Already established theories can be
used to study the current situation properly (Booth, Colomb and Williams, 1995). So,
deductive approach is best suited for this research. The researcher followed the
following steps of deductive approach:
Reviewing theory related to ethical marketing and competitive advantages
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Formulate researchs questions, objectives and hypotheses
Observing the actual situation prevails in the market
Analyse data and provide needed recommendation
This research is mostly based on deductive approach where the hypothesis is
constructed on the basis of a generalist statement through observation and study of the
previous research.
Figure: Research Approaches
Source: Anusree, 2014.
3.3 Research Strategy: Research strategy is the means by which the research is conducted for getting the
final results (Gobo, 2011). There are various tactics that were used in this report. In
the experiments some samples were selected and an artificial environment was
created and after that the samples were tasted in that environment This experiment is
sometimes give false result and the research result may not be representative. Survey
was the way to conduct the research (International Journal of Social Research
Methodology: Theory & Practice, 2012). Case study would be another technique to
get the information of the research. This technique was not widely used in this
research (Welman et al., 2005).
In the survey a group of respondents were selected in the research and they were
selected by the judgemental basis of the interviewers. After that the researcher gave
them a questionnaire and the respondents were filled those in terms of their
experience or judgement. The answers were analysed for the research to get the
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results. In this study survey approach is taken to collect the data from the sample unit
if the study.
3.4 Type of the investigation/Design
Source- (Welman et al., 2005)
There are many types of research that a researcher could conduct a research. Action
oriented, survey, historical and so on (6 and Bellamy, 2012). Ethical marketing
policies and its effectiveness analysed and explored by researcher for getting the brief
idea about the impacts on the creating or gaining competitive advantages(Wardle,
2002). For the nature of the research, it could be best suited with the condition and
formula of exploratory or investigative research(Booth, Colomb and Williams, 1995).
So, it was comfortable for the researcher to use quantitative approach and data for this
research by collecting numerical information and statistical data to run the research(6
and Bellamy, 2012). Therefore, it could be said that this research is quantitative in
nature and numerical data collected by the researcher through survey for this
research(Bellamy, 2012).The researcher used experimental research as the researcher
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used different numerical data for finding the effect of ethical marketing on
competitive advantages(Booth, Colomb and Williams, 1995). Besides that the
researcher used positivism research philosophy for which he needed to experiment
whether all the variables of ethical marketing had effect on the business of the
competitive advantages(Booth, Colomb and Williams, 1995).
This study is more on a quantitative exploration while some analysis is done based on
the primary data collected from the respondents.
3.5 Data collection methods
There were two types of data; one is primary and other is secondary. Primary data are
the data that are not collected before and it is collected for the research or specific
purpose (Welman et al., 2005). On the other hand the secondary data are the data
which are available in many sources and collected before by someone (Welman et al.,
2005). In this research, researcher used primary data only to ensure the accuracy of
the data and reliability also(International Journal of Social Research Methodology:
Theory & Practice, 2012). The primary data were collected mainly through
questionnaire which were done through online chat, social networking sites like-
facebook, twitter, google+ etc. Besides, several other media were used to collect
information, like- direct interview, survey, online survey, brainstorming, websites,
teleconferencing, personal communication, sales people interview etc(International
Journal of Social Research Methodology: Theory & Practice, 2012).
3.6 Sampling method
Sampling refers to the process of selecting some respondents from the whole
population because it is not possible to investigate all the population rather few can be
chosen as respondents (Brenkert, 2008). For academic research, sampling is
mandatory because of limitation of money and time(Welman et al., 2005). Sampling
can be done in two methods, one is probability method and another is non-probability
method(International Journal of Social Research Methodology: Theory & Practice,
2012). Non probability method refers the process of collecting samples through using
different criteria like- demographic, geographic and other restriction. There are four
bases of non-probability sampling, they are- judgment sampling, quota sampling,
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convenient sampling and extensive sampling(Welman et al., 2005). Probability
sampling method refers the process of selecting the samples randomly and uses them
as respondents.
Source-(Welman et al., 2005)
Researcher used probability sampling method for this research and selected sample
randomly from its customer base where each customer was given equal weight
regardless of gender and age(Welman et al., 2005). The sample size was 100 and they
were surveyed through online ass the online medium was the best option to get the
information of this research(International Journal of Social Research Methodology:
Theory & Practice, 2012).
Population definition = Regular Customers of the retail shops in UK
Total sample = 100
Sample unit: Both Male and Female
A wide range of age spread is maintained across the sample.
3.7 Data analysis Data analysis is the most important part in the research methodology(Jha, 2008).
Without proper analysis of the data the researcher could not able to interpret the data
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properly(International Journal of Social Research Methodology: Theory & Practice,
2012). So the researcher was very careful in the data analysis part to avoid the
possible error of the data analysis(Jha, 2008). To asses and analysis the numeric data,
SPSS, E-view, MS excel and Strata were used by the researcher. By using mean,
mode, ANOVA, correlation, regression, the researcher had showed high quality
graphical and analytical presentation(Jha, 2008). The researcher used several models,
like- Cronbachs alpha, for ensuring the reliability of the research. Higher alpha set
data used for better quality and ensure reliability while extremist data were avoided to
ensure proper quality(International Journal of Social Research Methodology: Theory
& Practice, 2012).
3.8 Ethical issues It was needed to maintain proper ethics and logic and morality for the researcher to
make the research worthy and appropriate(Jha, 2008). The privacy of the respondents
maintained properly. Mental and physical pressures were not put on the
respondents(Welman et al., 2005). Manipulation of data or any kind monetary facility
could not provide to gain favourable information(Jha, 2008). Respondents must be
selected randomly and any intention selected must be avoided. The information and
research outcomes could only use for academic purposes(Samuels, Biddle and
Emmett, 2009). As the research was itself deal with the ethical consideration so the
research study is completely based on the ethical standards(Scruggs and Mastropieri,
2006). Any kind of illegal procedure was not used in this research study to get the
information. Also the analysis of the data was based on totally non biased view of the
researcher(Samuels, Biddle and Emmett, 2009).
3.9 Accessibility issues It is to be agreed that research faced some accessibility problems; these were main
limitation to get appropriate information from respondents(Scruggs and Mastropieri,
2006). The respondents might not give full and appropriate information(Samuels,
Biddle and Emmett, 2009). Online reach out to the respondents could take enough
time or can irritate the respondents also. Lack of trust might exist between the
researcher and respondents in given confidential information(Samuels, Biddle and
Emmett, 2009).
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As there were higher possibilities of these problems, the probability was not
little(Scruggs and Mastropieri, 2006). So, the researcher was very much precautious
of it and he focused on creating appropriate approach to get information(Samuels,
Biddle and Emmett, 2009).
3.10 Limitations
Limitations Impact/reason
Time The study of ethical marketing related data
and its impacts on competitive advantages
could take long time which could exceed the
research time.
Sample size Sample size was one of the main limitations
because 100 samples might not represent the
true scenario. Large sample produced more
accurate probabilities and realistic situation.
Fund Enough funds were needed for this research
because of its ways of collecting data and
information through teleconferencing, video
calling, online. Extensive research could be
facilitated through healthy and enough fund.
Research type Quantitative data was used to do this research
because of lack of related data and
inexperience of the researcher. Combined
research of qualitative and quantitative data
could increase the reliability, accuracy of the
research.
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3.11 Anticipated findings
Anticipation Reason
Relationship of ethical marketing and
competitive advantages of the company
Literature suggests that the researchers found
strong relationship between ethical marketing
and competitive advantages.
Effective ethical marketing strategies can
create the competitive advantages for the
company
The more the customers would be satisfied
the more was the visits in the stores and oral
marketing and viral marketing would
increase the value of the brand
The stronger and efficient ethical marketing
strategies were the more and greater
competitive advantages would be created for
the company.
Chapter4: Result and Discussion
4.1 Result
This chapter analyses the sample survey result found from providing each
respondents (customers of Waitrose) with a questioner containing some
relevant questions on ethical marketing of Waitrose and how do they respond to
the company in terms of competitive advantage the company has. The researcher
has analysed the data from policies of ethical marketing and competitive
advantages and presented them in comprehensive form with graphs, table and
other figures where necessary.
4.1.1 Demographic variables
The following figures show the demographical variations of the respondents in
this paper. There were a total of 100 respondents where male and female were
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respectively 67 and 33. The age variable shows that the age group of 31-39
participated most in the study as they are the major customer group of Waitrose.
Fulltime job holders were the highest participants in the study which numbers as
32 persons.
Table 1: Demographic variables
Gender
Frequency Percent
Male 67 0.67
Female 33 0.33
Total 100 1
Age
Frequency Percent
18- 30 25 0.25
31- 39 32 0.32
40- 49 13 0.13
50- 59 16 0.16
Over 60 14 0.14
Total 100 1
Marital Status
Frequency Percent
Married 46 0.46
Unmarried 54 0.54
Total 100 1
Employment Status
Frequency Percent
Full-time employment 32 0.32
Part-time employment 23 0.23
Student 13 0.13
Unemployed 7 0.07
Housewife/husband 12 0.12
Retired 13 0.13
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Total 100 1
Income
Frequency Percent
Below 10000 2 0.02
10000- 15000 18 0.18
15001- 20000 23 0.23
20001- 25000 32 0.32
25001- 30000 10 0.1
30001- 40000 9 0.09
Above 40000 6 0.06
Total 100 1
4.1.2 Cronbachs Alpha
The cronbachs Alpha test basically tests the internal consistency of the
respondents in a study. It indicates the level of consistency in the variables by
expressing as a range of 0 to 1. Normally point greater than Alpha ().7 is thought
to be standard. Here in this study, the following figures show that the responses
from all the fields have a sound level of internal consistency and reliability where
the responses of positive effects on the consumers have highest level of
consistency and responses from Comply with regulation and standards and Right
and true information in Promotion have a slight lower consistency then the
standard level of .7.
Table 2: Cronbachs Alpha
Alpha()
Green Marketing 0.89
Development of code of ethics 0.84
Ethical value of marketing
profession
0.74
Comply with regulation and
standards
0.65
Right and true information in 0.67
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Promotion
Corrective Advertising 0.77
Positive Effects on the Consumers 0.91
Competitive Advantage 0.83
4.1.3 Green Marketing (GM)
Waitrose strongly follows green marketing policy in its marketing policy. The
following table shows the result of the study where the researcher asked the
customers to answer the questions regarding the green marketing strategies and
competitive strategies of Waitrose. The table clearly shows that overall
customers strongly agreed with the fact that Waitrose follows green marketing
strategies and it attracts the customers.
Table 3: Ethical Marketing Strategies (EMS)
GM1 GM2 GM3
Strongly Disagree 5 2 3
Somewhat Disagree 2 3 6
Neutral 12 10 11
Somewhat Agree 36 35 34
Strongly Agree 45 50 46
Mean 4.9 4.8 4.69
Median 4 4 4
Mode 4.5 4.6 4.3
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Figure 1: GM (Question one)
On the other hand figure 1 shows that 45% customers strongly agree that
Waitrose has effective green marketing policy.
Figure 2: GM (Question Two)
Figure 2 shows that 50% of the customers thinks that Waitrose has separate
management body for green marketing where 35% somewhat agrees with the
statement.
5%2%12%
36%
45%
GM1
Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree
2%3%10%
35%
50%
GM2
Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree
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Figure 3: GM (Question Three)
Figure 3 shows that 46% of the customers of Waitrose believe that green
marketing attract more customers to Waitrose where 34% are also to a great
extent positive with the statement and only minor group of customers (3%)
strongly disagree with it. So, it seems that green marketing considered as
effective to the customers because they give positive attributes to it.
4.1.4 Development of code of ethics (DCE)
Waitrose focuses on Development of code of ethics (DCE) and from the survey of
this study it came out that almost all the customers believe that Waitrose has
strong code of ethics and has strong management team for it. The statistics of
average mean, media and mode shows that it has average result which are more
than 4 in every filed.
Table 4: Development of code of ethics (DCE)
DCE1 DCE2 DCE3
Strongly Disagree 3 3 2
Somewhat Disagree 12 13 17
Neutral 13 15 14
Somewhat Agree 36 35 34
Strongly Agree 36 34 33
3% 6%
11%
34%
46%
GM3
Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree
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Mean 4.2 4.3 4.6
Median 4 4 4
Mode 4.3 4.1 4.25
Figure 4: Development of code of ethics (DCE)
Figure 4 shows that on an average 30 to 35 customers believe that Waitrose has
developed code of ethics for conducting business, regularly updates the ethical
marketing strategies according to the profession code of ethics and provides
regular training and developed separate management team for updating and
developing new code of ethics. Where, only 2 to 5 customers strongly disagree
with that. So, the researcher can say that code of ethics is also attributed
positively by the cusotmers.
4.1.5 Ethical value of marketing profession (EVMP)
0 5 10 15 20 25 30 35 40
Strongly Disagree
Somewhat Disagree
Neutral
Somewhat Agree
Strongly Agree
Development of code of ethics (DCE)
DCE3 DCE2 DCE1
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Ethical value of marketing profession (EVMP) is always a key consideration in
ethical marketing strategies of Waitrose. Waitrose focuses on issues which
creates ethical value to marketing profession. The result of the survey as
presented in table 5 shows that customers of Waitrose to some extent agree that
Waitrose emphasizes on this issue. The mean, median and mode exhibits result
close to 4 which suggest that though they are not strongly in favour of it but they
on an average (greater than 3) agree with this issue.
Table 5: Ethical value of marketing profession (EVMP)
EVMP1 EVMP2 EVMP3
Strongly Disagree 12 15 8
Somewhat Disagree 14 9 15
Neutral 25 29 27
Somewhat Agree 24 23 24
Strongly Agree 25 24 26
Mean 3.8 3.9 4.2
Median 3.5 3.5 4
Mode 3.5 3.6 3.9
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Figure 5: EVMP (Question One)
Figure 5 shows that more 50% customers agree that Waitroses corporate bodies
take necessary steps for evaluating the ethical value of marketing profession
where a considerable portion remained neutral on this issue as they dont see
any significant point regarding this acts of Waitrose.
Figure 6: EVMP (Question Two)
Figure 6 shows that almost 40% customers believe that Regular training
programs are held for improving the ethical value of the professions of the
12%
14%
25%24%
25%
EVMP1
Strongly
Disagree
15%
Somewhat
Disagree
9%
Neutral
29%
Somewhat
Agree
23%
Strongly Agree
24%
EVMP2
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employees of Waitrose where again considerable portion remained neutral
(29%) on this issue.
Figure 7: EVMP (Question Three)
Figure 7 shows that 50% of the customers surveyed believe that Major
investment is needed for the employees of Waitrose for the increment of the
marketing profession ethical values and a minor (8%) portion strongly disagree
with that as they think major investment is not necessary in this case. So, the
researcher can infer that ethical value of professionals at Waitrose is considered
to be somewhat effective for its honesty and integrity to customers.
4.1.6 Comply with regulation and standards (CRS)
Waitrose complies with regulations and standards in case of marketing activities
it initiates. The following table shows that the mean result go in favour of this as
customers on an average somewhat agree with that. The mode and median (3)
however shows that customers agree with that but most of the customers were
central to neutral.
Strongly
Disagree
8%Somewhat
Disagree
15%
Neutral
27%Somewhat
Agree
24%
Strongly Agree
26%
EVMP3
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Table 6: Comply with regulation and standards (CRS)
CRS1 CRS2 CRS3
Strongly Disagree 9 6 13
Somewhat Disagree 36 32 24
Neutral 24 26 24
Somewhat Agree 6 10 10
Strongly Agree 25 26 29
Mean 3.9 3.6 3.5
Median 3 3 3
Mode 3 3 3.5
Figure 8: Comply with regulation and standards (CRS)
Figure 8 on the other hand, represents that 30 to 35 % customers believe that
Waitrose complies with the code and conducts of ethical values and ethical
marketing, Separate inspection teams are developed by it for observing the
compliance with the ethical regulation and standards & so they are satisfied with
the ethical values of my company and its compliance with the ethical rules and
0
5
10
15
20
25
30
35
40
StronglyDisagree
SomewhatDisagree
Neutral SomewhatAgree
Strongly Agree
9
36
24
6
25
6
32
26
10
26
13
24 24
10
29
Comply with regulation and standards (CRS)
CRS1 CRS2 CRS3
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regulation. On the other hand, 6 to 13% customers strongly disagree with that.
So, the researcher can infer that regulation and standard compliance are not
working on customers as they dont find it sufficient.
4.1.7 Right and true information in Promotion (RTIP)
Right and true information in promotion is one of the essential tools in ethical
marketing. Table 7 exhibits an overall picture of the responses regarding this
issue of Waitrose. The mean and median result in numeric term 3 represents
that on an average all the customers somewhat agree that Waitrose adheres to
the concept of Right and true information in Promotion.
Table 7: Right and true information in Promotion (RTIP)
Right and true information in Promotion (RTIP)
Strongly Disagree 4
Somewhat disagree 31
Neither agree nor disagree 30
Somewhat agree 12
Strongly Agree 23
Total Number of Respondents 100
Mean 3
Mode 3
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Figure 9: Right and true information in Promotion (RTIP)
Figure 9 represents that 30% customers of Waitrose believe that it provides true
information at the time of promotion and Ethical values and principles are
maintained for promotion. On the other hand those who somewhat agree,
remain neutral, somewhat disagree and strongly disagree are respectively 12%,
23%, 31% and 2% with this issue. So, it seems that customers are happy with #s
truthfulness in promotion because they find very little fictitious facts in its
promotion.
4.1.8 Corrective Advertising
Table 8 shows the mean result as 2.9 of responses on corrective advertising. It
indicates customers are neutral to this issue of Waitrose.
Table 8: Corrective Advertising
Corrective Advertising
Strongly Disagree 30
Somewhat disagree 43
Neither agree nor disagree 12
0%4%
31%
30%
12%
23%
Right and true information in Promotion
(RTIP)Strongly Disagree
Somewhat disagree
Neither agree nor disagree
Somewhat agree
Strongly Agree
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Somewhat agree 6
Strongly Agree 9
Total Number of Respondents 100
Mean 2.9
Mode 3
Figure 10: Corrective Advertising
However figure 10 shows that a large portion of the customers somewhat disagree
(43%) with this issue which indicates weakness of Waitrose in this area of ethical
marketing.
4.1.9 Positive Effects on the Consumers (PEC)
Table 9 shows that mean result as 4.8 on Positive Effects on the Consumers
(PEC) indicating that customers are strongly positive that there is Positive
Effects of ethical marketing on the Consumers (PEC).
Table 9: Positive Effects on the Consumers (PEC)
Positive Effects on the Consumers (PEC)
0 5 10 15 20 25 30 35 40 45
STRONGLY DISAGREE
SOMEWHAT DISAGREE
NEITHER AGREE NOR DISAGREE
SOMEWHAT AGREE
STRONGLY AGREE
30
43
12
6
9
Corrective Advertising
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Strongly Disagree 3
Somewhat disagree 7
Neither agree nor disagree 15
Somewhat agree 32
Strongly Agree 43
Total Number of Respondents 100
Mean 4.8
Mode 4.5
Figure 11: Positive Effects on the Consumers (PEC)
4.1.10 Competitive Advantage
Now what extent the company receives competitive advantage has been
illustrated by the following table and figure. Table 10 shows that Competitive
advantage takes place in Waitrose through the interactive policies and strategies
Waitrose regularly takes different strategies for the increment of the competitive
Strongly
Disagree
Somewhat
disagree
Neither agree
nor disagree
Somewhat
agree
Strongly Agree
37
15
32
43
POSITIVE EFFECTS ON THE
CONSUMERS (PEC)
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advantages over its competitors. Result of the averages indicates strong
agreement by the customers on this issue.
Table 10: Competitive Advantage
Competitive
Advantage1
Competitive
Advantage2
Competitive
Advantage3
Strongly
Disagree
7 5 3
Somewhat
Disagree
15 20 12
Neutral 5 12 4
Somewhat
Agree
34 25 36
Strongly Agree 39 38 45
Mean 4.89 4.9 4.56
Median 4 4 4
Mode 4.9 4.8 4.7
Figure 12: Competitive Advantage (Question One)
7, 7%
15, 15%5, 5%
34, 34%
39, 39%
Competitive Advantage1
Strongly Disagree Somewhat Disagree Neutral
Somewhat Agree Strongly Agree
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Figure 13: Competitive Advantage (Question Two)
Figure 14: Competitive Advantage (Question Three)
4.1.11 Correlation Analysis
Now its time to see how much intensive is the relation between the elements of
ethical marketing and between competitive advantages. Table 11 shows that GM
(green marketing) and CRS are positively correlated (.94) which means increase
5, 5%
20, 20%
12, 12%
25, 25%
38, 38%
Competitive Advantage2
Strongly Disagree Somewhat Disagree Neutral
Somewhat Agree Strongly Agree
3, 3% 12, 12%
4, 4%
36, 36%
45, 45%
Competitive Advantage3
Strongly Disagree Somewhat Disagree Neutral
Somewhat Agree Strongly Agree
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in GM increases the CRS too! However in case relationship between competitive
advantages and other elements of ethical marketing the researcher finds that
increase in GM increases the competitive advantages for Waitrose as there is
strong positive correlation (.90). Apart from that all other elements (CRS, DCE,
EVMP, RTIP, Corrective Advertising and PEC) are positively correlated with
competitive advantages for Waitrose.
Table 11: Correlation Analysis
Correlations Matrix
CRS GM DCE EVMP RTIP Corrective
Advertising
PEC
CRS 1.00
GM 0.94 1.00
DCE 0.00 0.00 1.00
EVMP 0.57 0.00 0.19 1.00
RTIP 0.56 0.87 0.58 0.45 1.00
Corrective
Advertising
0.59 0.78 0.87 0.77 0.89 1.00
PEC 0.74 0.56 0.67 0.78 0.80 0.45 1.00
Competitive
Advantage
0.61 0.90 0.82 0.67 0.60 0.58 0.45
**. Correlation is significant at the 0.01 level (2-tailed).
4.1.12 Regression Analysis
A) Regression for the dependent variable Positive Effects on the Consumers
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Table 12: Model Summary for Positive Effects on the consumers
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 0.679 0.660 0.559 0.602
a. Predictors: (Constant), CRS, GM, DCE, EVMP, RTIP, Corrective Advertising
Here the regression model summary where the dependent variable is positive
Effects on the Consumers shows R square is .660. The result indicates that in
case of ethical marketing of Waitrose it has 66% the Positive Effects on the
consumers of Waitrose and the effect is significant for # .
Table 13: Coefficients for Positive effects on the consumers
Coefficients
Model Un-
standardized
Coefficients
Standar
dized
Coefficie
nts
t Sig.
Std. Error Beta
1 (Constant) 4.737 0.614 7.711 0.000
CRS -0.047 0.070 0.802 -0.677 0.499
GM 0.180 0.061 0.586 2.963 0.003
DCE -0.009 0.057 0.113 -0.151 0.880
EVMP -0.026 0.059 0.726 -0.433 0.665
RTIP 0.078 0.137 0.649 0.570 0.570
Corrective
Advertising
0.95 0.12 0.36 -1.23 0.22
a. Dependent Variable: Positive Effects on the Consumers
Table 13 containing coefficient matrix for the elements of ethical marketing with
dependent variable Positive Effects on the Consumers shows that almost all the
elements of ethical marketing have Positive Effects on the Consumers where CRS
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has higher degree of influence 80.2%) where the rest are as presented
respectively 58.6%, 11.3%, 72.6%, 64.9%, 36% under Standardized Coefficients
column.
B) Regression for the dependent variable Competitive advantage
Table 14: Model summary for Competitive advantage
Model Summary
Model R R
Square
Adjusted
R Square
Std. Error of
the Estimate
1 0.910 0.858 0.846 0.737
a. Predictors: (Constant), CRS, GM, DCE, EVMP, RTIP, Corrective Advertising
Here the regression model summary where the dependent variable is positive
Effects on the Consumers shows R square is .858. The result indicates that in
case of ethical marketing of Waitrose it affects 85.8% of the competitive
advantages Waitrose has. So, the researcher can infer that ethical marketing is
controlling the direction of its competitive advantages greatly.
Table 15: Coefficients for Competitive advantage
Coefficients
Model Un-
standardized
Coefficients
Std.
Error
Standardized
Coefficients
t Sig.
1 (Constant) 7.12 1.22 5.83 0.00
CRS 0.99 0.14 0.92 0.57 0.57
GM 0.95 0.12 0.87 -1.23 0.22
DCE 0.44 0.10 0.73 -1.61 0.11
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EVMP -0.162 0.101 0.644 -1.609 0.11
1
RTIP -0.188 0.105 0.543 -1.802 0.07
5
Corrective
Advertising
-0.040 0.129 0.237 -0.313 0.75
5
a. Dependent Variable: Competitive Advantage
Table 15 containing coefficient matrix for the elements of ethical marketing with
dependent variable Competitive Advantage shows that almost all the elements
of ethical marketing have Positive Effects on the Competitive Advantage of
Waitrose where CRS has higher degree of influence (92%) and the rest are as
presented respectively 87%, 73%, 63% and 23% under Standardized
Coefficients column.
4.2 Discussion In this chapter the researcher has made an effort to analyze and discuss the result of
the study in a comprehensive way. The researcher has made a thorough discussion on
how the ethical marketing tools are working for competitive advantages for Waitrose
and made comparison with previous study in this field with necessary references
relevant in each area.
4.