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Neutralization theory: A tool to understanding consumer (un)ethical behavior, Thesis of Marketing Theory

American professors Gresham M. Sykes and David Matza in 1957 proposed neutralization theory. It was focused on how a criminal mind person can neutralize his values and commit crimes against the values he believed in.

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MSc(International(Marketing(
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Aalborg University

MSc International Marketing

Neutralization theory: A tool to understanding

consumer (un)ethical behavior

Master Thesis

Project Supervisor: Reimer Ivang

Authors:

Domantas Gervinskas

Raul Caciora

Yousif Abdul Hameed

Word counting: 37729

Aalborg, 6 / 08 /201 5

Executive Summary Neutralization techniques have been verified if can explain the gap between intentions and behavior of Danish consumers when it comes to buying ethically made textile and clothing products Lack of ethicality in the textile and clothing industry is a global issue and the “buyer-­‐driven” characteristics of the industry makes it possible for consumers to lead a change through more ethical demands and preferences. By the theory of Neutralization, this thesis provides explanation for why consumers, when buying clothing, do not behave ethically as they intend to. This phenomenon is referred to as the gap, the difference between their ethical intentions and ethical actions. This project approach the decision making through the Theory of Planned Behavior Model, which states that consumer behavior is determined by their deontological and teological considerations. The model illustrate how the gap between moral intentions and moral actions create a feeling of guilt, which we hypothesize is nullified through the neutralization technique. The theory of Neutralization consist of five different neutralization techniques and through a quantitative consumer survey of the textile and clothing industry in Denmark. Denmark is a country with high ethical awareness and high consumption in clothes from unethical brands, therefore representing a good place for research. The findings prove that a gap between moral intention and moral action does exist among Danish consumers in the clothing industry. In other words, consumers want to buy more ethically made products. This fact proves that there is a potential market for more ethical clothing in Denmark. Through analysis and discussion of the findings, this paper provides the following recommendations for marketers interested in the ethical clothing market. (H2A)The findings suggest that Danish consumers clothing consumption is highly influenced by the style and /or price rather than ethicality. It is therefore recommended to think of ethicality as a third attribute rather than the only attribute of clothing. In other words, marketers interested in the ethical clothing market cannot rely solely on the ethicality of the clothing they sell if they want to reach the Danish consumers.

Table of contents

  • Executive Summary
  • List of figures
  • List of Tables
    1. Introduction
    1. The gap between consumer ethics and consumer behavior
    • 2.1. Textile and Clothing Industry
    • 2.2. Ethical consumerism
      • 2.2.1. The Gap between Intentions and Actual Behavior
    • 2.3. Neutralization Theory
    • 2.4. Problem formulation
    • 2.5. Hypotheses
    • 2.6. Reasons for topic choice and contribution
    1. Methodology
    • 3.1. Key Assumptions and Terminologies
    • 3.2. Paradigm
      • 3.2.1. Comparison of AB and BM
    • 3.3. Choice of approach: The analytical view
    • 3.4. Research design
    • 3.5. Data collection method
    • 3.6. Questionnaire
    • 3.7. Questionnaire distribution...........................................................................................................
    • 3.8. Sample
    • 3.9. Reliability and Validity
      • 3.9.1. Reliability
      • 3.9.2. Validity
      • 3.9.3. Measurements of concepts
    • 3.10. Data Analysis
    • 3.11. Definition of terms
    • 3.12. Variable choice of scale quantification
    1. Choosing the Industry for Research
    • 4.1. Textile as a platform for research
    • 4.2. Choice of Research Country
    • 4.3. Growing Ethical Awareness in the Textile and Clothing Industry
    1. Hypotheses and Constructs
      • H1. There is a gap between MI and MA.
      • H2. The neutralization employed has an influence on the consumers’ ethicality
      • H3. There is a relationship between the socio-­‐demographic factors and the neutralization level
    1. The Ethical Consumer
    • 6.1. Definitions of an Ethical Consumer..............................................................................................
    • 6.2. The Effect of Morals and Values on Ethical Consumerism
    • 6.3. Critique of the Term “Ethical Consumer”
    1. The decision making process of ethical consumer
    • 7.1. Hunt-­‐Vitell Theory of Ethics (H-­‐V model).....................................................................................
    • 7.2. Theory of Planned Behavior (TPB)
    • 7.3. Discussion
    • 7.4. The GAP within the decision making process
    1. Introduction to Neutralization Theory
    • 8.1 NT in Understanding (Un)Ethical Consumer Behavior and the Gap
    • 8.2 Previous Studies of Ethical Consumer Behavior using NT
      • 8.2.1 Qualitative Studies:................................................................................................................
      • 8.2.2 Quantitative Study:
    • 8.3 Critique
      • 8.3.1 Lack of empirical assessment
      • 8.3.2 Neutralization Theory: Only for conventional individuals
      • 8.3.3 Denial of Risk
    • 8.4 Discussion
    1. Conceptual Framework.......................................................................................................................
    1. Analysis
      • H1. There is a gap between MI and MA.
      • H2. The neutralization employed has an influence on the consumers’ ethicality
      • H3. There is a relationship between the socio-­‐demographic factors and the neutralization level
    1. Discussion
    • Hypothesis 1: There is a gap between MI and MA...............................................................................
    • Hypothesis 2: The neutralization techniques have an influence on the consumer’s ethicality
      • H3.1. The neutralization level influences the MA level negatively
      • H2.2. The neutralization level influences the gap level positively
    • level Hypothesis 3: There is a relationship between the socio-­‐demographic factors and the neutralization
      • H3.1. Younger consumers are more likely to use neutralization techniques
      • H3.2. Men are more likely to use neutralization techniques than women
      • H3.3. Level of education is negatively correlated with the use of neutralization
      • H.3.4. Income is negatively correlated with the use of neutralization
    1. Limitations
    1. Conclusions
  • Bibliography
  • Appendix
    • Appendix 1: Codebook
    • Appendix 2: Questionnaire
  • Figure 1 -­‐ The process of Methodology – Own creation List of figures
  • Figure 2-­‐Subjective vs. Objective Dimension (Burrell & Morgan, 1979)
  • Figure 3 -­‐ Similarities between BM and AB – Own Creation
  • Figure 4 -­‐ Regulation vs. Radical Change (Burrell & Morgan, 1979)
  • Figure 5 -­‐ The four paradigms of BM – Own creation
  • Figure 6 -­‐ Arbnor and Bjerke’s Methodological Approaches –
  • Bjerke, Figure 7 -­‐ Cyclical nature of creating knowledge in the analytical view – Own creation based on Arbnor &
  • Figure 8 -­‐ Modes of surveys administration (Source: own creation based on Bryman & Bell, 2011)
  • Figure 9 -­‐ Sampling techniques (Source: created by the authors, based on Bryman & Bell, 2011)
  • Figure 10 H-­‐V model
  • Figure 11 -­‐ Deontological and teleological evaluations of product A, B and C (own creation)
  • Figure 12 -­‐ Theory of planned behavior
  • Figure 13 -­‐ The construction of behavior (source: own creation based on H-­‐V model)
  • model) Figure 14 -­‐ Behavior determined by teleological evaluation only (source: own creation based on H-­‐V
  • Figure 15 – Scope of the project -­‐ Own creation
  • Figure 16 – Conceptual framework
  • Figure 17: Invocation of deontological and teleological evaluation
  • Table 1 -­‐ Variable correlations and significance levels List of Tables
  • Table 2 -­‐ The tests for Cronbach Alpha
  • Table 3 – Overview of definitions of ethical consumerism
  • Table 4 -­‐ OLS Regression model for H2A
  • Table 5 -­‐ OLS regression for H2B
  • Table 6 -­‐ Independent samples test for age group differences
  • Table 7 -­‐ Independent samples test for gender differences
  • Table 8 -­‐ Correlation statistics of Education
  • Table 9 -­‐ Income
  • Table 10 -­‐ Neutralization Techniques Statements
  1. Introduction In recent decades, the global awareness for ethical causes such as the environmental and social justice has increased significantly. The climate changes facing us are real and actions needs to be taking. The trend is also happening in consumption where several studies have proven a high level of ethical awareness and intention among consumers. The ethical intention, however, rarely translate into real action such as buying an ethical product over another. This inconsistence between ethical intention and actual purchasing behavior creates an ethical consumption gap. The global environmental and social challenged makes investigating and understanding the gap an issue of real importance to not only marketers interested in selling products but also to the global society as a whole. Several suggestions have been made in order to understand the gap. Some argue that consumers do want ethical products but they simply prioritize price, value, quality, and brand familiarity above the ethical and social dimensions when choosing a product (Attalla & Carrigan, 2001). Ethicality is broad term that demands some form of subjectivity. Others might consider what one consumer view as an ethical act, others might consider it as unethical. It has also been argued that the survey instruments used so far have been insufficient in explaining the gap because of the subjectivity in the term “ethicality” (Carrington, Neville, & Whitwell, 2010). Ulrich and Sarasin (1995) also mention the difficulty in investigating consumer behavior through self-­‐reporting surveys: “One thing is clear, don’t do any research. Don’t ask the public any questions on this subject. The answers are never reliable. In instances where the head says one thing and the heart another, studies are useless if not misleading” (Attalla & Carrigan, 2001, p. 566). In this project, the researchers investigate the gap between ethical consumer intention and actual behavior of Danish consumers in relation to the clothing consumption using quantitative surveys. The theoretical foundation is composed of Hunt-­‐Vitell general theory of ethics and the Neutralization Theory. The first one is explaining the decision making process of the consumers when it comes to purchasing goods. It considers that when it comes to an ethical product, it is a
  1. The gap between consumer ethics and consumer behavior This section introduce a short presentation towards the textile industry, ethical consumerism, the gap between the ethical or moral intentions and actual ethical behavior^1 , and the Neutralization Theory. The textile and clothing industry part is presented to give the reader an understanding of why this industry is of importance, not just for marketers but also for the global society as a whole. The section will present some of the issues facing the industries. The ethical consumer section then gives an overview of the development in the consumer trend towards more ethical concerns and priorities. It also displays the gap between intention and action in ethical consumerism. The Neutralization Theory section present an overview of the theory and how it can be applied in the investigation of the mentioned gap.

2.1. Textile and Clothing Industry

Textile and Clothing industry 2 plays a very important role in international trade. It fosters the development process of countries, it is more important to developing countries but the effect is significant for developed world as well. Textile exports facilitate economic and technological growth, more importantly it facilitates the region’s integration into the global economy (Malik, 2008). The global textile and clothing industry has been steadily increasing in production and consumption (Oerlikon, 2010). The textile and clothing industry in developing countries is highly labor intensive and has reputation of questionable employment contracts, which has become of concern for the consumers living in the developed countries (Dumas, 2011). Nonetheless, the industry has become an integral part of some developing economies due to its significant contribution to national output and GDP. For the countries international integration into international networks the exports play a role, which for countries like China, India and Brazil are among the (^1) The project use the concepts “moral intentions” and “intentions” equivalent just like “action” and “moral action” are used equivalent. (^2) The concepts of “textile and clothing”, “clothing” and “textile” are used equivalent through the project.

highest in the world of textiles (Malik, 2008). Overall, the developing countries account for over half of the exports of clothing. Furthermore, the textile and clothing industry is the second largest employment supplier in the world with approximately 80 million workers (Malik, 2008). The textile and clothing industry has experienced extensive outsourcing of production from the Western world (US, Europe and a few other small producers) into countries and regions (mostly Asia) where production costs were low and production systems were flexible and easily adjustable (Malik, 2008; Fugazza ir Conway 2010). However, the procedures and practices employed in the developing countries by the textile industry are often viewed as either illegal (slave and child labor) and/or unethical (inhumane working conditions) in the Western cultures (Dumas, 2011). Beside the social issues in the textile and clothing industry, the industry also poses a serious global environmental threat if nothing changes. According to the Danish Fashion Institute fashion is the second most polluting industry in the world (Ditty, 2015). Several initiatives and organizations are working towards more sustainable and ethical practices in the textile and clothing industries, including Clean Clothes Campaign, Fair Trade Organization and Nordic Initiative Clean & Ethical. Unethical treatment of animals is another major concern within the textile and clothing industry for consumers and organizations. Most notable is the organization PETA (People for the Ethical Treatment of Animal) that has over three million members and several celebrity supporters (PETA, About us, 2015; PETA, Celebrities, 2015).

2.2. Ethical consumerism

In recent years there has been a growing trend among consumers to become more socially and environmentally conscious in relation to the products they consume. (Luchs, Naylor, Irwin, & Raghunathan, 2010; Carrington, Neville, & Whitwell, 2010). This is supported by consumer studies (White, MacDonnell, & Ellard, 2012; Dupré, 2005; Janssen & Vanhamme, 2014), which have continuously shown that consumers’ purchase intention increases with corporate social

products associated with a social cause if they had the opportunity to do so (Janssen & Vanhamme, 2014). However, statistics has shown that in reality consumers spend a very small amount of their household disposable income on socially or environmentally friendly products. In the Untied Stated less than two percent of sales of 22 household products sold between March 2006 and March 2011 were environmentally friendly options. In the United Kingdom the average consumer spends less than four percent of the annual household expenditures on ethical products (Janssen & Vanhamme, 2014). It is therefore clear that, although consumers state that they are willing to buy ethical products, their actions do not reflect it. This gap between consumer moral intentions and actual buying behavior is termed the gap.

2.3. Neutralization Theory

Previous researches have proven the usefulness of the Neutralization Theory in investigated the gap between ethical consumer intention and actual action (Brunner, 2014). The theory is well-­‐ established and provides a comprehensive framework, which include five different techniques that individuals use to neutralize the self-­‐blame and feeling of guilt when acting inconsistently to own values, morals (Chatzidakis, Hibbert, & Smith, 2006). Although the theory was first proposed by American professors Gresham M. Sykes and David Matza in 1957 to uncover the roots of juvenile delinquency (Sykes & Matza, 1957). The theory suggest that those participating in juvenile delinquency learn a set of justifications or rationalizations, “which can insulate him/her from self-­‐blame and the blame of others” (Chatzidakis, Hibbert, & Smith, 2006). Chatzidakis et al. (2006) adapted the five neutralization techniques in relation to ethical consumer behavior (Chatzidakis, Hibbert, & Smith, 2006):

  1. Denial of responsibility (DoR): A circumstance in which one argues that s/he is not personally accountable for the norm-­‐violating behavior because factors beyond one’s

control were operating; e.g. “It’s not my fault I don’t recycle, the government should make it easier”.

  1. Denial of Injury (DoI): A circumstance in which one contends that personal misconduct is not really serious because no party directly suffered as a result of it; e.g. “What’s the big deal, nobody’s gonna miss one towel!”
  2. Denial of Victim (DoV): A circumstance in which one counters the blame for personal actions by arguing the violated party deserved whatever happened; e.g. “It’s their fault; if the salesman had been straight with me I would have told him he undercharged me”.
  3. Condemning the condemners (CtC): A circumstance in which one deflects accusations of misconduct by pointing out that those who would condemn engage in similarly disapproved activities; e.g. “It’s a joke they should find fault with me after the rip-­‐offs they have engineered”.
  4. Appeal to higher loyalties (AtHL): A circumstance in which one argues that norm-­‐ violating behavior is the result of an attempt to actualize some higher order ideal or value; e.g. ‘I’d like to buy more environmentally friendly products but the choice is limited and I like trying out different stuff’. Although the research is still limited, the Neutralization Theory has in recent years caught the attention of marketing and business researchers interested in understanding the gap between increasing ethical intentions from consumers and continuous unethical behavior from consumers. The relative neglect of the Neutralization Theory in understanding the consumer gap might steam from the fact that the theory comes from the sociological origin (Chatzidakis, Hibbert, & Smith, 2006).

2.4. Problem formulation

To reiterate, while many consumers declare their willingness to buy ethically made products, only a fraction does so. This is even more pronounced in the textile industry. It is the industry where the ethicality can be questioned at every production and consumption stage (essentially the whole life cycle). Recently there have been an increasing number of unethical cases and

neutralization upon the gap. The authors decided to question the influence of the neutralization upon the gap and also on its forming parts: moral intentions and moral actions.

H2. The neutralization techniques have an influence on the consumers’

ethicality

Sub-­‐hypotheses:

**1. The neutralization level influences the MA level negatively

  1. The neutralization level influences the gap level positively** Hypothesis three looks at whether or not there is a correlation between socio-­‐demographic factors and the neutralization level. For this research the authors have decided to focus on the following four socio-­‐demographic dimensions: education, age, gender and income. Although previous research in ethical consumerism has shown inconsistent results (Roberts,
  1. there have still been several previous researches, which have shown significant connections between socio-­‐demographic factors and consumer behavior. Research has also shown this connection when consuming different types of ethical products such as organic, fair trade products and environmentally friendly products.

H3. There is a relationship between the socio-­‐demographic factors and the

neutralization techniques

Sub-­‐hypotheses: Age has been proven to play a significant role in consumer behavior related to social and environmental causes. Research by Scott (1999) found a significant positive correlation between age and environmental awareness and behavior (Scott, 1999). This positive correlation between age and different types of ethical behavior has also been shown in other surveys. Squires et al. found a positive correlation between age and consumption of organic food (Squires, Juric, & Cornwell, 2001). The same results were obtained by De Pelsmacker et al. (2006) when the fair trade beliefs, attitudes and buying behavior were surveyed; action,

concern and buying behavior were found to be positively correlated with age (De Pelsmacker, Janssens, Sterckx, & Mielants, 2006). There might be several reasons for why older consumers in some surveys have been shown to act more ethically than younger consumers. Scott (1999) argues that older consumers have more time to actively behave ethically. Other suggestions have been that older consumers who experienced the Second World War are more concerned about the environment and the world (Gilg, Barr, & Ford, 2005; Scott, 1999).

1. Younger consumers are more likely to use neutralization techniques Much previous research on ethical consumer behavior has shown that female consumers are more likely to intend to and act in an ethical way (Webster, 1975) (Olli, Grendstad, & Wollebaek, 2001). Sikula and Costa (1999) researched whether women generally are more ethical than men and concluded that men and women value different things and that one can argue that women are more ethical than men. This argumentation can also be made when considering the fact that men in many ways act more unethical than women (e.g. most violent crimes are committed by men) (Sikula & Costa , 1994). 2. Men are more likely to use neutralization techniques than women Higher education is generally associated with more ethical and environmentally friendly behavior because highly educated people are assumed to be more exposed to and able to understand information needed to act sustainable and ethical (Olli, Grendstad, & Wollebaek, 2001). Ethical consumers need first to be aware or conscious about the fact that a social and/or environmental dimension exists when making a purchase, before he or she can act (deliberately) ethically. One survey found that those mostly engaged with environmentally friendly behavior were well educated while those showing low degree of environmentally friendly behavior often had no education. (Gilg, Barr, & Ford, 2005).

become more competitive in the marketplace; and hopefully might provide companies with a push to become more environmentally and socially friendly. Furthermore, the authors make significant contribution to the existing literature:

  1. To identify and attempt to explain why people act differently from their intentions.
  2. Which factors and how do they influence the discrepancy between intentions and actions.
  3. To analyze consumer behavior in textile industry.
  4. To grasp and substantiate the effects on Neutralization Theory on consumer behavior in Denmark, which is currently not present.
  5. Methodology Social scientists approach their research subject via explicit or implicit assumptions about the nature of the social world and the way in which it may be investigated (Kuada, 2010). The purpose of the methodology is to describe the process of conducting the research for the thesis by clarifying basic assumptions and presenting the methods used for collecting knowledge in regards to the phenomenon. The phenomenon of this paper is the investigation of the inconsistency between consumers’ ethical intention and their actual behavior, referred to as the “gap”. The left side of figure 1 illustrate the research circle of finding knowledge that is relevant to the phenomenon we are researching in order to get results that in the end can answer the research question. On the right side of the figure, the approaches of Arbnor and Bjerke (AB) and Burrell and Morgan (BM) are presented. Their approaches are discussed, as their viewpoints are widely accepted in the business research methodology.

Figure 1 -­‐ The process of Methodology – Own creation The chapter will begin with a description of key assumption and terminologies in AB and BM. Thereafter follows a presentation of each paradigm before the discussion and final choice of paradigm is given.

3.1. Key Assumptions and Terminologies

Before paradigms can be discussed it is important to understand the assumption behind the development of the different approach presented by BM and AB. BM defines a paradigm based on four basic assumptions; ontologies, epistemologies, human nature and methodology. The chosen approach to research is often a choice between the objective and subjective. The distinction has also been referred to as the positivistic and interpretive approach (Andersen, 1990). Figure 2 illustrate BM’s distinctions.