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Consumption, Marketing and Environmental Degradation:

The perceptions of people who are involved in marketing

by

Mick Willems

University of Groningen

Faculty of Economics and Business MSc Marketing Management

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Consumption, Marketing and Environmental Degradation:

The perceptions people who are involved in marketing

University of Groningen

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Abstract

In this study, the aim has been to gain insights into the effects of marketing on the environment. More specifically, research has been done to discover the perception of the people who are intensively involved in marketing with respect to the effects of marketing on the environment. Distributing a questionnaire and analysing the results gained significant insights with respect to the perception of the target group. In addition, the variables underlying these perception and the relations between them was tested using a bivariate correlation analysis, followed by a partial correlation and a regression analysis. The results show that the awareness of society level effects of marketing, perceived responsibility of marketing, perceived need for change in marketing and the overall environmental are strongly correlated. In addition, a positive causal relation was found between the overall environmental concern, and the perceived need for change.

Key terms: sustainability, consumption, micro marketing, macro marketing, environmental

degradation, dominant social paradigm.

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Table of contents

Introduction p. 5

Literature review p. 7

Research design p. 15

Results p. 22

Conclusion, implications and limitations p. 30

Literature / references p. 34

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1. Introduction

While increased levels of consumption have improved our standard of living, the same high levels of consumption in Western developed societies are a major cause of damage to the natural environment (Heath, 2011). Marketing has been severely criticized for contributing to environmental problems by promoting a culture of consumption (e.g. Kilbourne et al., 1997). In this culture consumers, businesses and even politicians regard consumption as something that is universally good. It is embedded in the dominant social paradigm (DSP) of Western societies.

Given the environmental issues we’re facing, many researchers think sceptical about the role of marketing in a future sustainable society. Reppel (2012) stated, “any form of market-based sustainability does not have the potential to solve the sustainability problem. Gratifying as it may be to those business people who operate with a social conscience, it only has the potential to work toward a sustainable future, not to solve the underlying problem of an unsustainable lifestyle.”

Other researcher think the discipline of marketing can adapt itself for a sustainable future, but changes in the ground principles of marketing are needed. The tension between sustainable marketing and the way that marketing has been practised by companies requires reflection upon the principles that underpin the discipline (Heath, 2011). It calls for a different approach to the ‘marketing timeframe and on the defence that marketers use for many unsustainable activities that “it is what the customer wants” ’ (Peattie, 1999)

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Fundamental questions such as to whether or not capitalism as a system is capable of solving the environmental issues we are facing now, or whether or not it provides societal welfare to the people, are certainly relevant and highly interesting. However, they go far beyond the scope of this thesis.

Instead, this study will focus on the alleged driver of consumption: marketing. More specifically, we seek to gain insights about the perception of the people who are themselves intensively involved in marketing: marketeers, marketing professors and students. What is the perception of these people with respect to the effect of marketing on the environment and society? How responsible do they think marketing is for environmental degradation? Do they think the current consumption patterns can be maintained? And what do they think of the sustainability of marketing itself?

Because, given that the current consumption patterns are not sustainable, how should these patterns change, if a driving force behind it (marketing) is not even aware of its impact on the environment; is not concerned with the environment; does not feel any need for change in marketing?

The research-question central in this thesis will be:

What is the perception of people who are intensively involved in marketing with respect to the effect of marketing on consumption and the environment, and with respect to the responsibility and sustainability of marketing?

The research-question will be two-folded into two sub research goals:

• Provide descriptive conclusions on the perception of people who are intensively involved in marketing.

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2. Literature Review

2.1 Consumer culture and sustainability

Sustainability can be interpreted in different ways, therefore it is important to make a clear what is actually meant by it. Throughout this thesis, the definition of ‘sustainable development’ from the United Nations World Commission on Environment and Development [UNWCED] will be used:

“Sustainable development is development that ‘‘meets the needs of the present without compromising the ability of future generations to meet their own needs’’“ (1987).

Consumerism has in recent years been heavily criticized for having a profound impact on the sustainability of the natural environment. A major cause of damage to the natural environment is high levels of consumption in Western developed societies (Heath, 2011). Not just consumers, but the policymakers have ignored its’ impact on the environment. Durning (1992) already criticized policymakers, and he described that population growth and consumption are the two most important variables in environmental decline. However, that in contrast to the variable population growth, consumption has been the neglected variable in the global environmental equation.

While it is argued that technology can turn our current society into a sustainable society, including making sure our consumption patterns can be maintained, this solution is remains controversial. Burroughs (2010) for example is sceptical of the uncritical faith in the potential of (new) technology as a problem solver, and points to underlying problems: “Any form of market-based sustainability does not have the potential to solve the sustainability problem. Gratifying as it may be to those business people who operate with a social conscience, it only has the potential to work toward a sustainable future, not to solve the underlying problem of an unsustainable lifestyle.”

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2.2 Consumption and the Consumer

Before analysing the consequences of consumption any further, it is important to first answer a few questions. What exactly do we mean by a consumer? What is the act of consumption? Does is it have a start- and endpoint?

Bauman (1992) already made clear that consuming is more than only providing oneself with the basic needs like human nutrition. Consumption is not just a matter of satisfying material greed, of filling your stomach. Instead, consumerism stands for production, distribution, desiring, obtaining, and using of symbolic goods (Bauman, 1992). Even though ‘filling your stomach’ is still an important part of consumption, over the years the idea of consumption has broadened dramatically. Nowadays, we not only consume to fulfil our basic needs, but we consume to become who we want to be: identity through consumption. Instead of consumption supporting and enriching our lives, this seems to have turned into consumption defining our lives.

Consumption can maintain itself and keep growing, even if there are no more needs to be fulfilled, so no need satisfaction is taking place. In extreme cases, this quest for goods can lead to hyperconsumption, in which there is no logical connection between the thing consumed and the consumption act itself – it is consumption for its own sake (Kilbourne, 1997).

A consumer is often defined as a person who acquires goods and services for his own personal needs. This however seems to collide with the above described phenomenon of hyperconsumption, because in this state there aren’t any distinct personal needs being fulfilled other than consumption itself. Spring (2003) gave a definition with a negative approach, describing what a consumer is willing to give up, in order to keep consuming: “a consumer is someone who is willing to abandon ethical and moral values in pursuit of material abundance”.

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However, in contrast to Spring’s (2003) above mentioned definition of a consumer, as someone who is willing to let go of his moral values, Kadirov (2011) thinks otherwise. He is maintains that people do not consume or increase their consumption by letting go of their moral values, but because they hold false morality in this respect. By accepting eco-aggressive and narrow marketing practices, a person might genuinely believe that welfare for all is improving. Hence, the consumer is a citizen who falsely believes that some sacrifices (e.g., environmental quality) are necessary to attain the desired level of advancement (Kadirov, 2011).

An important distinction in consumption was made by Kilbourne (1997), he argued that it should be construed as a process, not as an act. “It thus entails activities of search, use and disposal of any good or service that has an effect on the environment.” For example, not only eating a Snickers-bar is part of consumption, but also the actions before and after it, like finding and buying it in the grocery store and disposing the packaging after eating.

2.3 DSP and Ideology

Why are people willing to trade about anything for material wellbeing? Where does it come from?

The reasons for this can be found in the commonly held beliefs about an individual’s happiness, quality of life and wellbeing, and about a society’s welfare and progress. These are included deep within the dominant social paradigm (DSP) of societies. The dominant social

paradigm is a society’s belief structure that organizes the way people perceive and interpret

the functioning of the world around them (Milbrath, 1989, p116). The DSP determines what behaviour we consider as good or bad.

Kilbourne (2008) made a clear categorization of the contemporary DSP into three dimensions: • Political

The basis is formed by political liberalism, the main elements of which are possessive

individualism (individuals are in possession of themselves and what they create through

labour), private property and the limitation of government. • Economic

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• Technological

“The attitude toward technology within the DSP can best be described as technological arrogance (Ehrenfeld 1978) or technological optimism (Postman 1993; Winner 1986). It culminates in the belief that technology is the solution to any social or physical problems that may arise within society.”

The DSP in Western industrial societies informs the prevailing conception of QOL (quality of life) and provides its justification. This is manifested through the ideology that increasing material well-being provides the basis for QOL (Kilbourne, 1997). Therefore, the means by which we can increase our material wellbeing (consuming) is considered as good, and more of it is always better.

More specifically, on an individual level, the ideology of consumption is the prevailing belief within industrial societies that the sure and only road to happiness is through consumption (Hetrick, 1989). Here it is important to emphasize, that within this DSP there is no alternative to deliver increased happiness or quality of life: consumption has the exclusive competence to do this. Heilbroner (1985) described what he called the “commodification of life”. Here even parts of a society that traditionally aren’t marketed, are being considered as goods with a corresponding price.

Not only on an individual but also on a society level, this DSP promotes an ever-increasing consumption level: “Consumption, in contrast, is almost universally seen as good – indeed, increasing it is the primary goal of national economic policy” (Durning, 1992).

2.4 Marketing

Marketing: a consumption driver?

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is seen as one of the driving forces that have transformed consumption to support and enrich, into consumption for its own sake. Transmogrification of consumption values from

consuming to live into living to consume is the mainstay of the marketing academy, and the

sacred cow of the discipline, the marketing concept, is based on living to consume (Kilbourne, 1997). Marketing activity perpetuates the ideology of consumption, which has negative environmental consequences (Kilbourne, 1997).

2.5 Marketing and societal welfare

Marketing simultaneously impacts societal welfare via two paths: direct and indirect.

The direct path involves higher standards of living through consumption, and consequently a positive influence on societal welfare. The indirect path however, insists that environmental degradation that results from the scale of marketing practices will eventually downgrade societal welfare (Kadirov, 2011).

Moreover, the equal effect on environmental entropy of marketing activities and consumption shows that the two structural elements of the marketing system are closely intertwined in a macro-systems sense (Kadirov, 2011).

While the discipline of marketing is considered as a driver of consumption, distinction needs to be made between macro- and micro (or managerial) marketing. It is important to discuss the differences between micro and macro marketing, since the two arguably have a different effect on the environment.

2.6 Micro marketing

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The marketing concept, in its microdefinition, takes no account of needs and wants that can be satisfied via nonconsumption (Abratt and Sacks, 1988; Dixon, 1992). Its concept is blind for any form of happiness and QOL through other means than material means. As a result, more parts of life that traditionally cannot be bought or aren’t being traded on a market, are being ‘commodified’ so that even these parts of life can be consumed. They continue to assert that QOL and consumption are synonymous (Kilbourne, 1997)

However, micromarketing does not feel responsible for negative consequences of consumption. It almost seems as some sort of vanity, that their marketing practices serve consumers’ wants. Mainstream introductory textbooks discuss marketing from the assumption that consumer get what they “want” (including the social and environmental costs) (Kilbourne, 1997). Therefore, the negative consequences of consumption are attributable to the consumer, who makes a decision based on his own free will. Consequently, environmental degradation as a result of consumption patterns is viewed not a result of marketing practices, but of consumer decision-making. At best, micro marketing trivializes negative consequences of consumption patterns as externalities.

As a result of reliance upon neoclassical economics, laissez-faire politics, and uncontrolled technological growth, micromarketers have seldom questioned the implications (Day and Wensley, 1983). The common sentiment that consumers get at least something of value to replace the lost natural environment is a grand illusion fueled by the dominant micro- managerial narrative (Kadirov, 2011).

2.7 Macro marketing

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marketing systems is central to macromarketing and that the output of a marketing system is an assortment of goods, tangible and intangible, offered in response to customer demand.

While it may seem that macro marketing is the same as the sum of all marketing activities examined on a society-wide level, this is too short-sighted. It is important to understand, that macro marketing also evaluates the very fundamentals underlying the discipline of marketing. Differing from a micro-approach, a macro-perspective involves not only the analysis of the concepts at the level of higher aggregation but also the scrutiny of assumptions and values that underlie these concepts (Kadirov, 2011). Hunt (1976) already discussed a few question, like whether marketing should have special social responsibilities and whether advertising is socially desirable. Kilbourne (2006) also asked: “are marketing systems a condition for, or a consequence of, economic development?”

The differences between macro and micro marketing seem to imply a lack of awareness and understanding of the consequences of marketing practices by micro marketing. And therefore micro marketing simply doesn’t see the ‘bigger picture’ of their actions.

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2.8 Hypotheses

Kollmuss (2010) stated, that people need to have knowledge or awareness on the environmental problems and its causes, before he/she will feel responsible for the environmental problems (and behave himself or herself accordingly). This indicates a relation between the awareness of environmental problems (including its causes), the concern for environmental degradation and the perceived responsibility. This study focuses on people involved in marketing activities, with respect to their perception of the society level effects of marketing. The following hypotheses have been phrased:

H1: Awareness of the society-level effects of marketing positively correlates with the

perceived responsibility of marketing.

People with a greater sense of personal responsibility are more likely to have engaged in environmentally responsible behaviour.

H2: Perceived responsibility of marketing positively correlates with the perceived need for

change in marketing.

H3: Environmental concern positively correlates with the perceived responsibility of

marketing.

H4: Environmental concern positively correlates with the perceived need for change in

marketing.

 

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3. Research design

The previous paragraphs covered the effects of consumption and marketing on the environment, the dominant social paradigm, the differences between micro and macro marketing, the influence of marketing on consumption patterns and on societal welfare. The research will focus on how marketeers, marketing professors and students perceive the society level effects of marketing. Because, an attitude towards the environment, from the point of view of organization management, is one of the main factors affecting behaviours of organizations (Tilley, 1999; Patton and Worthington, 2005). In addition, as mentioned in the introduction, how should the current (unsustainable) consumption patterns ever be changed, if one of its main drivers is not aware of its society-level effects or isn’t even concerned with the environment?

The research-question at the beginning of the study is as follows:

What is the perception of people who are intensively involved in marketing on the effect of marketing on consumption, on the environment, and on its responsibility and its sustainability?

In addition, two sub research goals were phrased:

• Provide descriptive conclusions on the perception of people who are intensively involved in marketing.

• Uncover relations between variables that that are involved in the perception of these people.

Descriptions

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are, in order to be maintained in a sustainable future? In order to obtain structured data, the perception will categorized into five elements.

• Perception of consumption • Perception of marketing

• Perception of awareness and responsibility • Environmental concern

• Perceived need for change

Relations

The second sub goal phrased in the introduction of this thesis will be answered by testing the hypotheses in the conceptual model.

3.1 Research method

The research will be conducted using an online questionnaire. This method gives the ability to obtain large sums of quantitative primary data. In addition, the data is comparable and allows for fast processing. In this research, observations are not necessary, because no behaviour is being analysed. Apart from quantitative data, qualitative data might also provide interesting information, for example through a series of interviews. However, the cost and the time that are needed to conduct these interviews and to collect, analyse and interpret the data, go far beyond what is considered realistic for this research. To make sure the data from the questionnaire can be used effectively, the content of questionnaire must translate the information that is needed into a set of specific questions the respondent can and will answer (Malhotra, 2010). First, the needed information that is supposed to be translated into the questionnaire is derived from the research question. The categorization of the perception mentioned earlier in the previous paragraph will be used in forming the questionnaire:

• Perception of consumption • Perception of marketing

• Perceived awareness and responsibility • Overall environmental concern

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Secondly, to provide information on the relations (second sub goal) that are hypothesized in the conceptual model, the variables are operationalized in the questionnaire. This is covered later in this chapter.

3.2 Data collection method

In order to give answers or provide information with respect to the research questions and the hypotheses mentioned earlier, a questionnaire is put online, using thesistools.com. This allows the questionnaire to be easily constructed and distributed. In addition, this way, the data can conveniently be downloaded and imported into statistical software.

This study focuses on the point of view of people who are closely involved in marketing activities. The targeted sample will be accordingly. The questionnaire will be distributed to professional marketeers, marketing students, alumni, professors and others who are involved in marketing activities. In targeting the sample group, no difference is made in age, gender or nationality. The sample size is aimed at around 100. Considering the specificity of the targeted group and the available time for this research, a sample of 100 respondents is realistic.

3.3 Survey design

At the start of the questionnaire, a text of 5 lines is shown, explaining what the questionnaire is about, what the respondent is expected to do and how long it will take. After reading the introduction, the respondent is first confronted with the term “macro marketing” and is asked to state to what degree (on a 5-point scale, ranging from 1= I know it very well – 5= I don’t know it) he or she is familiar with it. This question is positioned first, in order to prevent the other (more specific) questions from giving cues about the meaning or definition of this term and consequently biasing the answer about macro marketing.

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Item

Do you know the term "macro marketing"? Marketing is a part/function of an organization

Marketing is more than just a part/function of an organization.

Marketing serves consumers by offering products that fulfil a need or want. Promoting the consumption of products is the main task of marketing. Promoting the consumption of products is one of the tasks of marketing.

Marketing promotes the consumption of products to fulfil the needs of consumers.

Marketing promotes the consumption of products even if there are no consumer needs to be fulfilled.

Table 1. Statements about marketing

The second part of the statements is about consumption. Here the respondent’s perspective on the use and necessity of consumption is asked.

Item

Consuming a product fulfils a need or want.

Consuming products improves an individual's wellbeing. Consuming products improves an individual's standard of living. Consuming products is necessary to attain economic progress. Consuming products has an effect on the environment. Consuming products damages the environment.

Table 2. Statements about consumption

Continuing, the respondent is confronted with a number of statements about awareness and responsibility of marketing with respect to the environmental consequences of consumption, including statements about whether or not marketing can be maintained (in its current form) in a sustainable future.

Item

I am aware of the effects of marketing on society as a whole Marketing is tasked with examining its effects on society.

Marketing serves the needs and wants of consumers. Therefore, consumers themselves are responsible for the environmental consequences of consumption, not marketing.

Marketing is not responsible for damage to the environment resulting from consumption. Marketing has the obligation to examine its effects on the environment.

Table 3. Statements about awareness and responsibility

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paradigm (DSP). The eight odd items, if agreed to by a respondent, are meant to reflect endorsement of the new environmental paradigm (NEP). (Dunlap et al., 2000)

Item

1. We are approaching the limit of the number of people the Earth can support. 2. Humans have the right to modify the natural environment to suit their needs. 3. When humans interfere with nature it often produces disastrous consequences. 4. Human ingenuity will insure that we do not make the Earth unliveable. 5. Humans are seriously abusing the environment.

6. The Earth has plenty of natural resources if we just learn how to develop them. 7. Plants and animals have as much right as humans to exist.

8. The balance of nature is strong enough to cope with the impacts of modern industrial nations. 9. Despite our special abilities, humans are still subject to the laws of nature.

10. The so-called “ecological crisis” facing humankind has been greatly exaggerated. 11. The Earth is like a spaceship with very limited room and resources.

12. Humans were meant to rule over the rest of nature. 13. The balance of nature is very delicate and easily upset.

14. Humans will eventually learn enough about how nature works to be able to control it.

15. If things continue on their present course, we will soon experience a major ecological catastrophe.

Table 4. NEP-scale

After the series of statements, the respondent is asked in what way, to what degree and for how long he is involved in the field of marketing. To conclude the questionnaire, the respondent is confronted with questions about his age, gender and country of origin.

Variables

The variables that will be used to test the hypotheses in this research are: awareness of the society-level effects of marketing, perceived responsibility of marketing, overall environmental concern, perceived need for change in marketing.

Awareness of the society-level effects of marketing

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Perceived responsibility of marketing

This variable measures to which degree the respondent thinks that marketing is responsible for the environmental consequences of consumption. The variable will be measured using the information from a statements (to be answered on a 5-point Likert scale): “Marketing is not responsible for damage to the environment resulting from consumption.”

Overall environmental concern

This variable will be measured using the NEP scale. This scale is made up out of 15 statements that can be used to measure the overall environmental concern of the respondent. But in order to make one variable (Overall environmental concern) out of the information from the 15 statements of the NEP scale, the scale needs to be internally reliable. Therefore, a reliability test will be performed using Cronbach’s alpha, before the scale can be reduced to the variable Overall environmental concern.

Perceived need for change in marketing

This variable will measure the degree to which the respondent thinks marketing (the way it is now) needs to change, in order to be maintained in a sustainable future. The variable will be measured using the information from a statement. Here also, the respondent is asked to which degree (on a 5-point Likert scale) he or she agrees with this statement. The statement is: “Marketing needs to be changed in order to be maintained in a sustainable future”.

3.4 Plan of analysis

Once all the data have been collected, the data are to be processed. To do so, the statistical software SPSS will be used. Before any testing is done, first the NEP scale is tested on its internal reliability. To do so, a Cronbach’s alpha is performed on the 15 items of scale. A Cronbach’s alpha value of 0,6 or higher indicate that the items have sufficient internal reliability. Consequently, the items can be combined into a single variable (overall environmental concern), which can be used more conveniently in further testing.

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4. Results

In this chapter the results on the analysis will be presented. In addition, conclusions on the hypotheses are given.

4.1 Sample

The final sample consisted of 93 respondents, of which 30 females, 53 males. The mean age of the sample was 26 years old, ranging from 21 to 41. The years of experience with marketing ranged from half a year to 18 years, with a mean of 4,25 years. Of the sample, 36 respondents stated they were involved in marketing through business, 30 through studies and 63 through research or science activities (respondents were allowed to choose more than one option).

4.2 Cronbach’s alpha

After reverse-scaling 7 of the 15 statements within the NEP scale, a reliability of the scale was analysed using Cronbach’s alpha. The result showed a Cronbach’s alpha value of 0,698. Because this is above the critical value of 0,6, the NEP-scale can be considered reliable. This made it possible to compute a one new variable out of the 15 variables resulting from the 15 statements in the questionnaire. This new variable measures the Environmental concern of the respondent and ranges from 1-5 (1=high environmental concern, 5=low environmental concern).

4.3 Basic analysis

Below, the questionnaire is analysed for each of the categories that were made in chapter 3. Starting with the perception of consumption.

Perception of consumption

Item Mean Stand. dev.

Consuming a product fulfils a need or want. 2,27 0,93

Consuming products improves an individual's wellbeing. 2,70 0,94

Consuming products improves an individual's standard of living. 2,72 1,02

Consuming products is necessary to attain economic progress. 2,27 0,90

Consuming products has an effect on the environment. 1,50 0,50

Consuming products damages the environment. 2,73 0,97

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The mean score of 2,27 indicates a large part of the sample concurs with statement that consumption fulfils a need or want. However, it appears there is much less agreement with the statements that consuming products improves an individual's wellbeing (mean: 2,70) or standard of living (mean: 2,72). While, nearly the entire sample thinks consumption has an effect on the environment (mean: 1,50; a very small standard deviation), the statement that consuming products damages the environment (mean: 2,73; relatively high standard deviation) is much more controversial. In addition, the mean score of 2,27 indicates slight average agreement, with the statement that consuming products is necessary to attain economic progress.

Perception of marketing

Item Mean Stand. dev.

Marketing is a part/function of an organization. 1,81 0,90

Marketing is more than just a part/function of an organization. 1,77 0,75

Marketing serves consumers by offering products that fulfil a need or want. 2,00 1,08 Promoting the consumption of products is the main task of marketing. 3,35 0,90 Promoting the consumption of products is one of the tasks of marketing. 1,68 0,53 Marketing promotes the consumption of products to fulfil the needs of

consumers.

2,20 0,91

Marketing promotes the consumption of products even if there are no consumer needs to be fulfilled.

2,53 1,12

Table 6. Results on category marketing

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Perceived awareness and responsibility

Item Mean Stand. dev.

Do you know the term "macro marketing"? 3,25 1,40

I am aware of the effects of marketing on society as a whole 2,00 0,92

Marketing is tasked with examining its effects on society. 2,39 0,87

Marketing serves the needs and wants of consumers. Therefore, consumers themselves are responsible for the environmental consequences of consumption, not marketing.

3,00 1,25

Marketing is not responsible for damage to the environment resulting from consumption.

3,44 1,17

Marketing has the obligation to examine its effects on the environment. 2,27 1,01

Table 7. Results on categorie perceived awareness and responsibility

Awareness

As mentioned earlier, the opening question of the questionnaire is regarding the knowledge of the respondent with respect to the term ‘macro marketing’ (on a scale of 1-5; 1= I know it very well, 5= I don’t know it). The mean value (3,25) resulting from this question is between the options “I know it a little”(3) and “I have heard of it sometime”(4). This suggests a certain amount of knowledge on or familiarity with the term ‘macro marketing’. However perhaps more interesting, only 36 out of 93 respondents stated that they know the term (option 1 or 2), 15 only heard of it sometime and another 27 have never heard of it. This means that nearly half of questioned sample of marketing professionals and students indicate they have no real conception of the term ‘macro marketing’ and have at best heard of it sometime. Further, the respondents in this sample generally perceived themselves as aware of the effects of marketing on society as a whole. Also, the sample generally thinks that marketing has the task and obligation to examine its effects on the environment.

Overall environmental concern

Item Mean Stand. dev.

Environmental concern 2,69 0,413

Table 8. Results on the environmental concern.

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Perceived need for change

Item Mean Stand. dev.

The current consumption patterns can be maintained in a sustainable future, by applying new technologies (for example energy conservation, recycling and green products)

2,37 0,92

The current consumption patterns are the very root of our environmental problems.

2,87 1,15

Marketing can be maintained in a sustainable future. 1,70 0,79

Marketing needs to be changed in order to be maintained in a sustainable future.

2,97 1,26

Table 9. Results on category perceived need for change

With respect to the need for change, the sample generally thinks that marketing can be maintained in a sustainable future and that the current consumption patterns can be maintained by applying new technologies. Less agreement is visible on the notion that current consumption patterns are the root of the environmental problems. Also the sample is neutral on the need for change in marketing, in order to be maintainable.

4.4 Correlation analysis

The chapter continues with the results on the correlation analysis. After the results are presented, the consequences for the hypotheses are given.

Perceived awareness Perceived responsibility Environmental concern

Perceived need for change Awareness Pearson Corr. 1 -,272 -,216 ,001 Sig. (2-tailed) ,171 ,041 ,993 Perceived responsibility Pearson Corr. -,272 1 ,532 ,515 Sig. (2-tailed) ,171 ,035 ,021 Environmental concern Pearson Corr. -,216 ,532 1 ,577 Sig. (2-tailed) ,041 ,035 ,019

Perceived need for change

Pearson Corr. ,001 ,515 ,577 1

Sig. (2-tailed) ,993 ,021 ,019

Table 10. Results of the correlation analysis

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strength of the correlation between variables. This value varies between 1 and -1. Here, 1 means that there is a perfect positive correlation and -1 means a perfect negative correlation between variables. The closer the correlation value is to 0, the weaker the correlation. A correlation coefficient of >0,6 or <-0,6 will be considered strong. In addition to the correlation coefficient, the p-value is also important for interpreting the results. If the p-value is <0.05 the hypothesized, the correlation is overall significant. In addition, resulting p-values between 0.1 and 0.05 will be interpreted as a non-significant trend.

H1: Awareness of the society-level effects of marketing positively correlates with the

perceived responsibility of marketing.

Interestingly, the correlation analysis between the variables Perceived awareness of the society-level effects of marketing and perceived responsibility of marketing resulted in a weak negative correlation value. Here, a positive correlation was actually hypothesized. However, the results also show a p-value that is far from being <0,05, making it overall non-significant. Even by changing the p-value to <0,1 to identify non-significant trends, no support for the hypothesized correlation was found.

Therefore, H1 is rejected. The results show that there is no significant, positive correlation between the perceived awareness of the society-level effects of marketing and the perceived responsibility of marketing.

H2: Perceived responsibility of marketing positively correlates with the perceived need for

change in marketing.

The results of the analysis show that there is a significant (<0,05) correlation between the variables Perceived responsibility of marketing and perceived need for change in marketing. In addition, the analysis shows that the direction of this correlation is positive. The resulting correlation value of 0,515 indicates a strong relation between these variables.

Given these outcomes, H2 is accepted. There is a significant, positive and strong correlation between Perceived responsibility of marketing and the perceived need for change in marketing.

H3: Overall environmental concern positively correlates with the perceived responsibility of

marketing.

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correlation between these two variables. As was hypothesized, this correlation has a positive direction. The strength of the correlation (0,532) can be considered high.

Because of these results, H3 is accepted. There is a significant, positive and strong correlation between Overall environmental concern and perceived responsibility of marketing.

H4: Overall environmental concern positively correlates with the perceived need for change

in marketing.

Here also, the results of the analysis show a significant (<0,05) correlation between Overall environmental concern and perceived need for change in marketing. The resulting correlation value indicates not only that the correlation is positive. The value of 0,577 also shows that there is a strong correlation between the variables.

Therefore, H4 is accepted. There is a significant, positive and strong correlation between the Overall environmental concern and the perceived need for change in marketing.

5.3 Partial correlation

The correlation analysis already provides very valuable information for the hypotheses. However, the analysis can be elaborated on more, by researching the possible influence of third variables on the correlations in the hypotheses. Performing a partial correlation analysis will shows whether or not a correlation between variables still exist, if we remove the effects of a third variable (Malhotra, 2010). This will help to show that the correlation between two variables is genuine. This analysis will make clear if any of the correlations in this study are spurious. In others words, if some of the variables correlate as a result of a common cause.

H1: The results of the partial correlation analysis show, that the correlation between the

variables Perceived awareness of the society-level effects of marketing and Perceived

responsibility of marketing decreases, when the variability due to the variable Overall environmental concern is removed. The correlation value changes from 0,272 (p=0,171) to

-0,190 (p=0,104). The correlation already wasn’t strong, but after removing the variability due to Overall environmental concern, this correlation becomes even weaker and remains non-significant.

H2: After removing the variability caused by variable Overall environmental concern, we see

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marketing and Perceived need for change in marketing. While the p-value is slightly higher

(still <0.05), the correlation value decreases from 0,515 to 0,301.

H3: The results of the partial correlation analysis show, that after removing the variability of

the variable Perceived awareness of the society-level effects of marketing the correlation between the variables Perceived responsibility of marketing and Overall environmental

concern is slightly weaker, but still strong. The correlation value decreases from 0,532 to

0,504, with the p-value remaining <0,05.

H4: The removal of the variability of the variable Perceived responsibility of marketing,

causes the correlation between the variables Overall environmental concern and Perceived

need for change in marketing to weaken from 0,577 to 0,418. However, the correlation

remains significant and strong.

4.4 Regression analysis

The correlation coefficients show the degree of relation between two variables. While the correlation analysis provides useful information to examine the amount of linear association or relation between two variables, it does not allow for any statements to be done on the causality of the relationships. To test for causal relations, a regression analysis was performed. Only the relations between variables in the model that are expected have a possible causal relation were tested.

Three of the correlations from the correlation analysis showed to be strong. These are the correlations in H2, H3 and H4. It is often discussed that a high degree of correlation, does not imply any causal relation. However high degree of correlation can hint towards a causal relation between variables and can be used as conceptual foundation for testing regression (Malhotra, 2010). Therefore, only the hypothesized relations that showed strong correlation were tested on causality. Below, the hypothesized causal relations that have been tested are shown (here marked with a “b”):

H2b: Perceived responsibility of marketing positively influences the perceived need for change in marketing.

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H4b: Overall environmental concern positively influences the perceived need for change in marketing.

The results of the regression analysis have been summarized in the following table. The entire output of the regression analysis is placed in appendix II

Hypothesis R square Adj. r square Sign.

H2b DV: perceived need for change in marketing IV: Perceived responsibility of marketing

0,265 0,257 0,140

H3b DV: perceived responsibility of marketing IV: Overall environmental concern

0,283 0,275 0,271

H4b DV: perceived need for change in marketing. IV: Overall environmental concern

0,333 0,326 0,031

Table 11. Results on the regression analysis

The results of the regression analysis show that the hypothesized causal relations in both H2b and H3b are non-significant. Because no statistical support for these hypotheses can be obtained from the analysis, both H2b and H3b are rejected.

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5. Conclusions, implications and limitations

At the beginning of this study, the following research question was phrased:

What is the perception of people who are intensively involved in marketing with respect to the effect of marketing on consumption and the environment, and with respect to the responsibility and sustainability of marketing?

First, the information from the questionnaire gives the ability give conclusion on the first sub goal of this study: to provide descriptive conclusions on the perception of people who are intensively involved in marketing.

With respect to the perception of consumption, the findings show that on average, the sample perceives consumption as an act that fulfills a need or want, and to lesser degree improves an individual’s wellbeing or standard of living. With respect to the effect of consumption on the environment, the sample indicates that consumption has an effect on the environment. However, the notion that consumption has a damaging effect on the environment is much more controversial and much less supported. Also, support for the notion that current consumption patterns are the root of our environmental problems cannot be found in the results. On average, the people in the sample think that the current consumption patterns can be maintained by applying new technologies.

Continuing to the perception of marketing. On average the people from the sample see marketing as more than merely part of an organization. And while it’s not considered the main task of marketing, the act of promoting the consumption of products is generally considered to be one of the tasks of marketing. In addition, by offering these products that fulfill a need or want, marketing serves consumers, so the perception.

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The results from the correlation analysis and regression analysis give the ability to give conclusions on the second sub goal of this study: to uncover relations between variables that that are involved in the perception of people who are intensively involved in marketing. The analysis shows that there is no significant, positive correlation between the perceived awareness of the society-level effects of marketing and perceived responsibility of marketing. Secondly, a strong positive correlation was found between the perceived responsibility of marketing and the perceived need for change in marketing. Thirdly, a significant, positive and strong correlation between the overall environmental concern and perceived responsibility of marketing was found. Lastly, overall environmental concern and the perceived need for change in marketing were found to correlate strongly and positively. In addition, the results of the partial correlation analysis show that all of the hypothesized correlations were still significant and moderate/strong. This implies that the correlations do not share a common cause. Below, the outcomes of the analyses with respect to the hypotheses are presented.

Hypothesis Outcome

H1: Perceived awareness of the society-level effects of marketing positively correlates with the perceived responsibility of marketing.

Rejected

H2: Perceived responsibility of marketing positively correlates with the perceived need for change in marketing.

Accepted

H3: Overall environmental concern positively correlates with the perceived responsibility of marketing.

Accepted

H4: Overall environmental concern positively correlates with the perceived need for change in marketing.

Accepted

Table 12. Conclusion on the hypotheses

In order to prevent any misinterpretation of these outcomes, it should be emphasized again here what the outcomes of the correlation analysis actually mean, and what they don’t mean. The correlation coefficient must not be interpreted as a percentage (i.e. the correlation coefficient of H2 is 0,515, but this must not be interpreted as 51,5%). Also, the correlation coefficient doesn’t mean that scores on the perceived need for change can be accurately predicted with 51,5% accuracy. Instead the correlation coefficient shows the amount of linear relationship between the two variables.

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Hypothesis Outcome H2b: Perceived responsibility of marketing positively influences the perceived need for change in

marketing.

Rejected

H3b: Overall environmental concern positively influences the perceived responsibility of marketing.

Rejected

H4b: Overall environmental concern positively influences the perceived need for change in marketing.

Accepted

Table 13. Results on the causal hypotheses

From the regression analysis it can be concluded it is concluded, that overall environmental concern positively influences the perceived need for change in marketing. This means that an increase in overall environmental concern causes an increase in the perceived need for change in marketing.

Implications

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Limitations

With respect to the limitations to this study, it should be noted that little prior research and study has been done to the perception of the environmental effects of marketing. Therefore, only the overall environmental concern was measured using a widely used scale (the NEP scale). Instead, the insights about the perceptions of people actively involved with marketing were obtained using the mean values from statements (with data on a 5-point scale). For example, the variable awareness of society level effects of marketing, was measured using the perception of the respondent himself, not using a scientifically supported scale. This allows for bias. Further, the disadvantages of using mean values are known. In addition, the representativeness of the sample can be disputed, because for example the sample shows little difference in age. Also the years of experience in marketing was to large degree between 1 and 4 years.

This domain has not been intensively researched yet. Therefore, future research is needed to identify more variables that underlie the perception of the society level effects of marketing and to develop scales that can be used for testing.

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Appendices

Appendix I Questionnaire

Question Totally

Agree

Agree Neutral Disagree Totally

disagree 1. Do you know the term "macro marketing"?

2. Do you know the term "macro marketing"? 3. Marketing is a part/function of an organization.

4. Marketing is more than just a part/function of an organization. 5. Marketing is tasked with examining its effects on society.

6. Marketing serves consumers by offering products that fulfill a need or want. 7. Promoting the consumption of products is the main task of marketing. 8. Promoting the consumption of products is one of the tasks of marketing.

9. Marketing promotes the consumption of products to fulfill the needs of consumers.

10. Marketing promotes the consumption of products even if there are no consumer needs to be fulfilled. 11. Consuming a product fulfills a need or want.

12. Consuming products improves an individual's wellbeing. 13. Consuming products improves an individual's standard of living. 14. Consuming products is necessary to attain economic progress. 15. Consuming products has an effect on the environment. 16. Consuming products damages the environment.

17. Environmental damage is simply the price to be paid for societal progress.

18. The current consumption patterns can be maintained in a sustainable future, by applying new technologies (for example energy conservation, recycling and green products)

19. The current consumption patterns are the very root of our environmental problems.

20. Marketing serves the needs and wants of consumers. Therefore, consumers themselves are responsible for the environmental consequences of consumption, not marketing.

21. Marketing is not responsible for damage to the environment resulting from consumption. 22. Marketing can be maintained in a sustainable future.

23. Marketing needs to be changed in order to be maintained in a sustainable future. 24. Marketing has the obligation to examine its effects on the environment.

25. We are approaching the limit of the number of people the Earth can support. 26. Humans have the right to modify the natural environment to suit their needs. 27. When humans interfere with nature it often produces disastrous consequences. 28. Human ingenuity will insure that we do not make the Earth unlivable.

29. Humans are seriously abusing the environment.

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31. Plants and animals have as much right as humans to exist.

32. The balance of nature is strong enough to cope with the impacts of modern industrial nations. 33. Despite our special abilities, humans are still subject to the laws of nature.

34. The so-called “ecological crisis” facing humankind has been greatly exaggerated. 35. The Earth is like a spaceship with very limited room and resources.

36. Humans were meant to rule over the rest of nature. 37. The balance of nature is very delicate and easily upset.

38. Humans will eventually learn enough about how nature works to be able to control it.

39. If things continue on their present course, we will soon experience a major ecological catastrophe. 40. How many years have you been involved in marketing?

41. In what way are you involved in marketing?

42. (Fill in only if you are involved in marketing through business) In what sector is your company active?

43. (Fill in only if you are involved in marketing through business) To what extend is your company thinking about sustainability?

44. Age 45. Gender

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Appendix II

Results of the regression analysis H2b

Model summary

Model R R Square Adjusted R

Square

Std. Error of the Estimate

1 ,515a ,265 ,257 1,08451

a. Predictors: (Constant), Perceived responsibility of marketing

ANOVAa

Model Sum of

Squares

df Mean Square F Sig.

1

Regression 37,397 1 37,397 31,796 ,140

Residual 103,503 88 1,176

Total 140,900 93

a. Dependent Variable: Perceived need for change

b. Predictors: (Constant), Perceived responsibility of marketing H3b

Model summary

Model R R Square Adjusted R

Square

Std. Error of the Estimate

1 ,532a ,283 ,275 ,90029

a. Predictors: (Constant), Overall environmental concern

ANOVAa

Model Sum of

Squares

df Mean Square F Sig.

1

Regression 28,174 1 28,174 34,761 ,271

Residual 71,326 88 ,811

Total 99,500 93

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H4b

Model summary

Model R R Square Adjusted R

Square

Std. Error of the Estimate

1 ,577a ,333 ,326 1,03335

a. Predictors: (Constant), Overall environmental concern

ANOVAa

Model Sum of

Squares

df Mean Square F Sig.

1

Regression 46,932 1 46,932 43,951 ,031

Residual 93,968 88 1,068

Total 140,900 93

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