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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.
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.
1.2
1.3
1.4
1.5
Research questions:....................................................................................................... 9
1.6
2.5
3.4
3.5
3.6
3.7
3.8
3.9
ii.
LIST OF FIGURES
LIST OF TABLES
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
Therefore, this study has been conducted to understand the criticality of ethical
marketing practice for gaining competitive advantage for a firm.
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?
What are the key functions where the companies (mainly in retailing industry)
need improvement to make the practice better?
10
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).
11
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
12
13
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).
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).
15
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).
16
stakeholders
of
company
impact
the
total
business
process
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.
17
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
18
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
19
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
20
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
21
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).
22
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,
23
24
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).
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
26
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
27
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 likefacebook, 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).
30
3.10 Limitations
Limitations
Impact/reason
Time
Sample size
Fund
Research type
of
lack
of
related
data
and
31
Reason
Relationship of ethical marketing and Literature suggests that the researchers found
competitive advantages of the company
Effective ethical marketing strategies can The more the customers would be satisfied
create the competitive advantages for the the more was the visits in the stores and oral
company
marketing
and
viral
marketing
would
were
the
more
and
greater
32
Gender
Frequency
Percent
Male
67
0.67
Female
33
0.33
Total
100
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
Frequency
Percent
Married
46
0.46
Unmarried
54
0.54
Total
100
Frequency
Percent
Full-time employment
32
0.32
Part-time employment
23
0.23
Student
13
0.13
Unemployed
0.07
Housewife/husband
12
0.12
Retired
13
0.13
Age
Marital Status
Employment Status
33
100
Frequency
Percent
Below 10000
0.02
10000- 15000
18
0.18
15001- 20000
23
0.23
20001- 25000
32
0.32
25001- 30000
10
0.1
30001- 40000
0.09
Above 40000
0.06
Total
100
Income
Alpha()
Green Marketing
0.89
0.84
Ethical
value
of
marketing 0.74
profession
Comply
with
regulation
and 0.65
standards
Right
and
true
information
in 0.67
34
Promotion
Corrective Advertising
0.77
0.91
Competitive Advantage
0.83
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
Somewhat Disagree 2
Neutral
12
10
11
Somewhat Agree
36
35
34
Strongly Agree
45
50
46
Mean
4.9
4.8
4.69
Median
Mode
4.5
4.6
4.3
Strongly Disagree
35
GM1
5%
2%
12%
45%
36%
Strongly Disagree
Somewhat Disagree
Neutral
Somewhat Agree
Strongly Agree
On the other hand figure 1 shows that 45% customers strongly agree that
Waitrose has effective green marketing policy.
GM2
2%3%
10%
50%
35%
Strongly Disagree
Somewhat Disagree
Neutral
Somewhat Agree
Strongly Agree
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.
36
GM3
3% 6%
11%
46%
34%
Strongly Disagree
Somewhat Disagree
Neutral
Somewhat Agree
Strongly Agree
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.
DCE1
DCE2
DCE3
Strongly Disagree
Somewhat Disagree
12
13
17
Neutral
13
15
14
Somewhat Agree
36
35
34
Strongly Agree
36
34
33
37
Mean
4.2
4.3
4.6
Median
Mode
4.3
4.1
4.25
10
DCE3
15
20
DCE2
DCE1
25
30
35
40
38
EVMP1
EVMP2
EVMP3
12
15
Somewhat Disagree 14
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
Mode
3.5
3.6
3.9
Strongly Disagree
39
EVMP1
12%
25%
14%
24%
25%
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.
EVMP2
Strongly Agree
24%
Somewhat
Agree
23%
Strongly
Disagree
15%
Somewhat
Disagree
9%
Neutral
29%
Figure 6 shows that almost 40% customers believe that Regular training
programs are held for improving the ethical value of the professions of the
40
EVMP3Strongly
Strongly Agree
26%
Disagree
8%
Somewhat
Agree
24%
Somewhat
Disagree
15%
Neutral
27%
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.
41
CRS1
CRS2
CRS3
Strongly Disagree
13
Somewhat Disagree
36
32
24
Neutral
24
26
24
Somewhat Agree
10
10
Strongly Agree
25
26
29
Mean
3.9
3.6
3.5
Median
Mode
3.5
36
32
24
24
26
25 26
24
13
9
10 10
Strongly
Disagree
29
Somewhat
Disagree
Neutral
CRS1
CRS2
Somewhat
Agree
Strongly Agree
CRS3
Somewhat disagree
31
30
Somewhat agree
12
Strongly Agree
23
100
Mean
Mode
43
23%
Somewhat disagree
0%
4%
31%
12%
30%
Somewhat agree
Strongly Agree
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.
Corrective Advertising
Strongly Disagree
30
Somewhat disagree
43
12
44
Strongly Agree
100
Mean
2.9
Mode
Corrective Advertising
STRONGLY AGREE
SOMEWHAT AGREE
6
12
43
SOMEWHAT DISAGREE
30
STRONGLY DISAGREE
0
10
15
20
25
30
35
40
45
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.
45
Somewhat disagree
15
Somewhat agree
32
Strongly Agree
43
100
Mean
4.8
Mode
4.5
15
3
Strongly
Disagree
Somewhat
disagree
Neither agree
nor disagree
Somewhat
agree
Strongly Agree
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
46
Competitive
Competitive
Competitive
Advantage1
Advantage2
Advantage3
15
20
12
Neutral
12
Somewhat
34
25
36
Strongly Agree 39
38
45
Mean
4.89
4.9
4.56
Median
Mode
4.9
4.8
4.7
Strongly
Disagree
Somewhat
Disagree
Agree
Competitive Advantage1
7, 7%
15, 15%
39, 39%
5, 5%
34, 34%
Strongly Disagree
Somewhat Disagree
Somewhat Agree
Strongly Agree
Neutral
47
Competitive Advantage2
5, 5%
20, 20%
38, 38%
12, 12%
25, 25%
Strongly Disagree
Somewhat Disagree
Somewhat Agree
Strongly Agree
Neutral
Competitive Advantage3
3, 3%
12, 12%
4, 4%
45, 45%
36, 36%
Strongly Disagree
Somewhat Disagree
Somewhat Agree
Strongly Agree
Neutral
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
48
Correlations Matrix
CRS
GM
DCE
EVMP
RTIP
Corrective
PEC
Advertising
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
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
0.61
0.90
0.82
0.67
0.60
0.58
0.45
Advertising
Advantage
**. Correlation is significant at the 0.01 level (2-tailed).
49
Model Summary
Model
R Square
Adjusted
0.679 0.660
Square
Estimate
0.559
0.602
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 # .
Coefficients
Model
Un-
Standar
standardized
dized
Coefficients
Coefficie
Sig.
7.711
0.000
nts
Std. Error Beta
1
(Constant)
4.737
0.614
CRS
-0.047
0.070
0.802
-0.677 0.499
GM
0.180
0.061
0.586
2.963
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
0.95
0.12
0.36
-1.23
0.22
0.003
Advertising
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
50
Model Summary
Model
0.910
Adjusted
Std. Error of
Square
R Square
the Estimate
0.858
0.846
0.737
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.
Coefficients
Model
Un-
Std.
Standardized
standardized
Error
Coefficients
Sig.
5.83
0.00
Coefficients
1
(Constant)
7.12
1.22
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
51
-0.162
0.101
0.644
-1.609
0.11
1
RTIP
-0.188
0.105
0.543
-1.802
0.07
5
Corrective
-0.040
0.129
Advertising
0.237
-0.313
0.75
5
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.
On the other hand the study of DorschM, (1998) concluded with almost in the same
tune. He argued that Ethical marketing can be best described to the customers and
other stakeholders through its advertising and promotional activities which can
represent the organizations ethical values at fullest level. When the ethical practices
of a company reaches to the customers through the advertising and promotional
activities then the customers are fully aware of the actions of a company and turn to
be very loyal to it. This loyalty surely gives a competitive edge in the market.
55
As echoed by previous research the researcher gets that accurate information, proper
representation, appropriate elements should be used while advertise and promote the
organization and its products (Chatzidakis, 2014). Ethical marketing are designed by
Waitrose focusing importantly on the products that must be fulfilled proper and
57
Lastly but not least the researcher concludes that competitive advantages can come
various sources for a company. However, if the ethical marketing strategies are
performed properly then it gives an important competitive edge to a company like
Waitrose. The researcher got a positive correlation by observing that when Waitrose
incorporates different program under its ethical marketing wing they got the market
recognition and the customers feel positively about its ethical marketing program by
showing higher loyalty and more involvement with it. Ethical marketing makes a
positive impact on their buying behaviour.
Recommendations:
By enacting ethical marketing practices Waitrose has gained more customer
awareness and recognition. However, there are some areas of ethical marketing which
still need to be developed and improved. 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. So here the researcher gives several
recommendations for improving the ethical marketing practices by Waitrose;
58
The research findings indicate that promotional activities have yet to have
intense impact on customers. So, Waitrose should be more sincere in
promotional activities. The research findings show that if it is to establish
strong ethical brand among the customers it should advertise and promote its
products in ethical manner. When advertising Waitrose should provide the
customers with all the necessary and true information which are very rare in
the current retail industry. Thus it will be viewed by customers as a
dependable brand which gives the company a competitive edge. In case of
advertisement of its grocery items Waitrose can include the evidence of
organic food ( i.e video clips of farmers activity) of its supply chain to make
it more authentic to the customers
To make it distinctive from its competitors like Tesco, Asda; Waitrose should
make more media coverage focusing on how much sincere they are to
customers about both health and wealth. Waitrose can promote some of its
daily necessity product items by outlining cheaper price with higher quality
taglines in addition to the existing tagline Everyone deserves quality foods,
Everyone deserves Waitrose!.
The research findings indicate that Waitrose is rapidly expanding in its online
business, so time has come to address the burning issues (like online scams) of
online business. Waitrose can advertise its confidential position with its
customers. Waitrose can regularly update its customers by assuring safety of
their online transactions
59
References
Barney, J. and Hesterly, W. (2006). Strategic management and competitive
advantage. Upper Saddle River, NJ: Pearson/Prentice Hall.
Bartels, R. (2007). A Model for Ethics in Marketing. Journal of Marketing,
31(1), p.20.
Bellamy, C. (2012). Principles of methodology. Los Angeles: SAGE.
Bodkin, C. and Stevenson, T. (2006). University Students Perceptions
Regarding
Ethical
Marketing
Practices:
Affecting
Change
Through
Appendix A
Survey Form
Serial Number:
64
Gender
: Male
ii.
Nationality
: British (UK)
Chinese
Female
Asian
22-29
30-39
USA
iii.
Age
: 15-21
iv.
Educational Background:
40 and above
20,001-25,000
65
Somewhat
Disagree
Neutral
Survey Questionnaire
No.
Questions
Stron Somewha
gly
t Disagree
Disag
ree
Neutral
Somew
hat
Agree
Stron
gly
agree
GM2
GM3
My company has
effective and strong
strategies of Green
Marketing
My company has
separate
management body
for green marketing
Green
marketing
attracts
more
customers towards
my company
DCE2
DCE3
My company has
developed code of
ethics
for
conducting business
My
company
regularly updates
the
ethical
marketing
strategies according
to the profession
code of ethics
My
company
provides
regular
training
and
developed separate
management team
66
EVMP2
EVMP3
My
companys
corporate bodies
take
necessary
steps
for
evaluating
the
ethical value of
marketing
profession
Regular training
programs are held
for improving the
ethical value of
the professions of
the employees of
my company
Major investment
is needed for the
employees of my
company for the
increment of the
marketing
profession ethical
values
CRS2
CRS3
My
company
complies with the
code
and
conducts
of
ethical values and
ethical marketing
Separate
inspection teams
are developed by
company
for
observing
the
compliance with
the
ethical
regulation
and
standards
I am satisfied
with the ethical
values of my
company and its
compliance with
the ethical rules
67
RTIP2
RTIP3
Correct
ive
Adverti
sing1
Correct
ive
Adverti
sing2
Correct
ive
Adverti
sing3
provides
true
information at the
time
of
promotion
Ethical
values
and principles are
maintained
for
promoting
the
products
and
services
At the time of
Information
dissemination
and
disclosers
ethical values are
considers
Section 6: Corrective Advertising
My
company
advertises
its
products
and
services
by
maintain
the
ethical marketing
code of conducts
My company has
taken
separate
steps
for
increasing
the
ethical values of
the advertisement
of my company
My
companys
advertisement
strategies
and
policies
are
ethical in nature
PEC2
Ethical marketing
and
strategies
have
positive
effect
on
the
customers of my
company
My
companys
customers
are
satisfied with my
68
PEC3
companys ethical
rule
and
regulations
Ethical marketing
attracts
more
customers
towards
my
company
Appendix B
CONSENT FORM
Please give tick mark to the () relevant boxes
69
Signature:
Date:
70
71