Australia is experiencing a change in its consumer landscape, which has seen a rise in the need for ethical consumption. This study focuses on ShopHere, a multi-channel retailer in Australia running successful retail stores and an e-commerce platform. ShopHere made a deliberate decision to utilise products that are ethically sourced mostly on its clothing line to ensure it meets the needs of ethical consumers in the market after the collapse of the Bangladesh Rana Plaza and the cotton labour scandal in Uzbekistan. Thus, the following paper conduct research on the viability of its business strategy of utilising products that are sourced ethically to meet the needs of ethical consumers. Therefore, the research aims at providing the management of ShopHere with recommendations to assess the viability of the target market of ethical consumers, which will justify whether the business strategy aimed at meeting this target market will be profitable for the company. The research questions that guided the study include; what are the perceptions and behaviours of ethical consumers towards ShopHere ethical considerations? And how do ShopHere’s ethical considerations, such as improved working conditions and implementation of living wages, influence the purchasing decisions of ethical consumers? The study utilised a mixed-method research design, which incorporates both qualitative and quantitative data in a single project. Interviews were used as data collection tools for qualitative data. The interviews included eight respondents, four males, and four females. On the other hand, survey questionnaires were used to collect quantitative data. Quantitative research involved 50 participants. Data collected through a qualitative approach was analysed by transcription method, which involves transcribing data from the record tapes obtained through the interview to get the critical themes. Data collected through the quantitative method was analysed through utilising the descriptive statistical tool available in Microsoft Excel. Based on the interview responses, three variables were derived, which include price, environmental knowledge, and consumer ethical beliefs. From the study results, it is evident that most people have positive attitudes towards ShopHere initiatives. However, most of them were not aware of them before the study; thus, ShopHere should create more advertising platforms to inform people about their direction.

Figure 1: Hypothesis variables concerning ethical consumption

YouTube Link: https://www.youtube.com/watch?v=afvor73bVWo

Introduction

The research objectives of the study included exploring the level of ethical consumers perceptions and behaviours towards ShopHere’s ethical considerations. Also, to find out if people who portray concerns about ethical consumption implement it when purchasing products. Besides, to establish if ShopHere’s ethical considerations, such as improved working conditions and implementation of living wages, have any influence on the purchasing decisions of ethical consumers. Lastly, the study had to explain how increasing the market of ethical consumers affects the revenue for ShopHere retailers. Based on the above objectives, the literature review focused on uncovering the concerns of consumers relating to ethical consumption and how it impacts their purchasing decisions at ShopHere. The research questions include:

Qualitative angle:

What are the perceptions and behaviours of ethical consumers towards ShopHere ethical considerations?

Quantitative angle:

How do ShopHere’s ethical considerations, such as improved working conditions and implementation of living wages, influence the purchasing decisions of ethical consumers?

Methods

The study used a mixed research design to gain an in-depth understanding of the strategies that can be adopted by ShopHere to attract ethical consumers to purchase their products. Notably, this research design entails gathering, analysing, and integrating both qualitative and quantitative data (Lisboa and Julio, 2019, 1-7). The main reason for choosing a mixed-method research design is because we had set two different research questions before; one qualitative and the another quantitative. The method would help to validate the results obtained from the other research design technique. This means that the technique would allow the researcher to compare and contrast the findings from the qualitative research to the ones obtained from the quantitative research technique. According to Zohrabi (2013), the two types of data provide an easy way of validating the study’s findings, which helps to draw a solid conclusion about the research. Further, the study followed sequential mixed methods by conducting qualitative research first, followed by quantitative research. This was important since it would help to build quantitative research from the findings of the qualitative research.

The sampling strategy involved using both a small qualitative of 8 interviewees and a big quantitative of 50 respondents. A consent form was given out to the participants to gain their approval before the interview was conducted. The study executed a non-probability sampling technique referred to as convenient sampling, in which we made use of individuals within our circle of friends and family to collect data. Convenience sampling, sometimes referred to as availability sampling, is a type of non-probability sampling technique that depends on gathering data from an easily accessible population (Farrokhi and Mahmoudi-Hamidabad, 2012, 4). Thus, the technique entails getting participants from wherever the researcher can find them and using the most convenient way possible. Markedly, there is no inclusion of the criteria that will be used before the identification and selection of the subjects. The researcher adopted this technique since it is fast, easy, and cheap (Raju and Prabhu, 2019). With probability sampling, the researcher would have to conduct activities such as stratification to ensure that every member of a population gets an equal opportunity at being selected (Levitt et al.,2017).

Data Analysis

The study used a mixed-method research design, which gathers both qualitative and quantitative data. Data collected through a qualitative approach was transcribed from the record tapes obtained through the interview. The data was coded to form various themes, which was drawn from the research objectives, and it was conducted through open coding. In gathering more insight from the data, axial coding was performed to categorise the themes based on the underlying theoretical literature review framework. The final analysis of the qualitative data involved selective coding in relating axial codes to the themes of the study objectives that are based on understanding ethical consumption and the habits followed by ethical consumers.

The quantitative data obtained from the survey questionnaire was analysed by utilising the statistical tool available in Microsoft Excel. We then used the T-test to determine the significance based on p-value and the Pearson Correlation to assess their relationships. The T-test was used to evaluate the strength of the evidence got against the null hypothesis (Kim, 2015, 540) On the other hand; the Pearson coefficient correlation was used to correlate the linear relationship between the two measures that were used in the quantitative research (Posten, 1978, 295-311.). These analysis tools are useful to validate, compare, and contrast the results obtained from the other qualitative research design technique. Zohrabi (2013), notes that the validation of the findings from the T-test and Pearson Correlation helps formulate a definite conclusion about the research upon which appropriate recommendations could emerge.

Results and Findings

The following phase of the research project entails reporting the findings obtained after completing the study. The study has combined the aspects of quantitative and qualitative research approaches to understand the common themes that were identified in the study.

Qualitative Results

The respondent’s response was aimed at answering the following research question: What are the perceptions and behaviours of ethical consumers towards ShopHere ethical considerations? According to the interviews conducted, respondent one was a male aged between 18-35 years old. He was self-employed and identified himself to be in an upper-middle-income class. Respondent two was a female aged between 18-35 years old. She was unemployed and the middle-income class. Respondent three was also a female aged between 18-35 years old. She was a student and in a low-income category. Respondent four was a male aged between 18-35 years old; he was a student in a low-income class. Respondent five was also a male aged between 18-35 years. He was also a student in a middle-income category. Respondent six was a female aged between 18-35 years; she was a student in a middle-income class. Respondent 7 was a male aged between 18-35 years; he was a student in the upper-middle-income class. The last interviewee was a female aged between 18-35 years; she was a student in a high-income category.

Based on demographic results, we had four males and four females. All eight respondents were above 18 years; thus, they may have certain information regarding ethical consumption and the ability to decide on various issues affecting ethical consumption. Most of them were students, therefore unemployed, which means they do not have much income that can make them portray concerns on ethical products.

According to the responses from the eight interviewee’s, three themes were evident, which include price, environmental knowledge and consumers ethical beliefs. Based on the theme of price, the interviewees were asked whether they could buy an ethical product with a higher price or go for the cheaper non-ethical one. Respondents two, three, five, six, and eight said that they go for an ethical product despite the price. Respondent one said that he could go for the cheaper one, while respondent four and seven said they could only stick to their budget without considering if the product is ethical or not. Based on the theme of the environmental knowledge, the participants were asked whether they will pay more for the products that the source is sustainable and environmentally friendly or pay less for products that cause harm to the environment. Six respondents said that they would consider purchasing environmentally friendly products. In contrast, two respondents said that they would buy what they can afford without environmental considerations. Lastly, on consumer’s ethical beliefs, the interviewees were asked whether they could buy products from ShopHere due to their ethical initiative; seven respondents agreed that the initiatives were excellent and can buy from them, with one not responding the same.

From the interview results, most respondents had a positive perception about ShopHere ethical considerations; however, most of the participants also indicated they were not aware of the initiatives before the study, which could be why their strategy was not viable.

Quantitative Results

Demographics

Quantitative results comprised 50 participants. From the 50 questionnaires,54.5 % were females, 38.2% males, while 7.3% of the respondents decided not to reveal their gender, as shown below.

Figure 2: Participants’ gender

The participant’s ages were classified as follows; 63.6% represented people between 18-24 years, 20% people between 25-34, 7.3% people between 35-44,1.8% people between 45-54, 3.6% people between 55-64, and 1.8% people under ten and aged 16 respectively, as shown below. Therefore, the majority were young people and above 18 years, so they probably have certain knowledge concerning ethical consumption.

Figure 3: The age classification

Based on the highest level of education, 5.5% of the respondents attained high school level, 27.3% college level, 41.8% undergraduate,7.3% representing postgraduates, professionals and diploma level respectively, and 1.8 % representing maid and PSLE certificate, as shown below. As the results indicate, most participants had attained undergraduate and college levels, therefore, people with higher education may portray concerns regarding ethical issues.

Figure 4: Level of education graph

Based on employment classification, 38.2% of the respondents were employed,10.9% were self-employed, 14.5% were unemployed,1.8% retired, while 38.2% were students, as shown below. Thus, most of the participants were employed and students. Employed people always earn income; therefore, they may have more alternatives when purchasing products.

Figure 5: Employment classification graph

Independent variable 1: Environmental knowledge

On the theme of environmental knowledge, the questionnaires produced the following result. 34% of respondents strongly agree that when they have a choice, they always choose the product that contributes to the least amount of environmental damage, while 16% agreed with the issue. On the other hand, 30% of the respondents were undecided on the subject, with 14% disagreeing and 6% of respondents strongly disagreeing with the need to purchase products that produce the least damage to the environment as shown in the chart below. Based on the results, it is clear that the majority will go for the products that contribute less to environmental damage, and this indicates their concerns about environmental conservation which is closely related to ethical consumption.

Figure 6: IV 1 question feedback

Another issue raised is participants switching products for environmental reasons, with 74% saying it’s true, while 23% of the participants saying no to using alternative products. 3% of the respondents said that the question did not apply to them, as shown in the chart below. Therefore, most respondents were aware of environmental issues, and switching to environmentally friendly products can promote ethical products’ sales.

Figure 7: IV 1 question feedback

The participants were asked whether they understood the potential damage that can be caused to the environment by some products and if they purchase such products. Hence, 19 participants strongly agreed, six agreed while 18 were undecided; on the other hand, 5 of the respondents disagreed with two strongly disagreeing with the statement, as shown below. The majority agreeing not to buy products that have potential damage to the environment. It shows that most participants were focused on sustainability, which will influence most of them to go for ethical products, thus increasing the revenue.

Figure 8: IV 1 question feedback

Another prevalent theme on consumer’s environmental knowledge was based on whether consumers have paid more for environmentally friendly products when there is a cheaper alternative. Thus, 34 participants considered this to be accurate, 12 respondents said it was false, while five respondents considered this question not applicable to them, as shown below. As the results indicate, most participants considered paying more for environmentally friendly products, even when there is a cheaper alternative. This factor suggests that most people valued ethical products that do not harm the surroundings despite the price of those products so environmental knowledge can influence their purchasing decisions.

Figure 9: IV 1 question feedback

The final issue was based on whether consumers buy household products that harm the environment. 14% of the participants strongly agreed that they do not purchase household products that harm the environment; 16% of the respondents agreed. In comparison, 34% of the respondents were undecided on the issue. On the other hand, 17% of the participants disagreed on not buying products that harm the environment, and 14% of the participants strongly disagreeing with the issue, as shown in the chart below.

Figure 10: IV 1 question feedback

Independent variable 2: Price

Also, there was the theme of price, which is significant in determining the purchasing behaviour of ethical consumers. The participants were asked how frequently they purchase clothing products. From the survey questionnaire, 44% of the participants indicated monthly, 16% highlighted it was once a year, 14% said it was less often, with 12 % saying it was none at all, and another 12% weekly. In comparison, there was 2% of the individuals doing it daily, as shown in the chart below.

Figure 11: IV 2 question feedback

The participants were asked on how frequently they buy ethical products that are from local producers. From the 50 individuals that were involved three people was on a daily, 12 on a weekly, seven were for once a month; three highlighted once a year, ten was less often while 15 people said they never did it as shown below.

Figure 12: IV 2 question feedback

For the approximate expenditure that participants spend on ethical products every month, 19 individuals spent less than $5, 6 participants were for between $5.01-$10, 9 people highlighted $10.01-$20, 6 were for between $20.1 to $30, 4 were for $30.01 to $40. At the same time, six respondents said above $40, as indicated below.

Figure 13: IV 2 question feedback

The other question to understand the theme of price was on how frequently the individuals bought ethical products from independent retailers, 35% of the participants were less often, 35% were for once a year, 16% were for once a month, 8% were for a weekly basis. In comparison, 6% of the participants said it was daily.

Figure 14: IV 2 question feedback

Finally, the participants were asked whether they value ethical products that have unique features, with ten saying it was very important, 19 participants said it was slightly important, ten said that it was not important. In contrast, 11 said it was not applicable, as shown below.

Figure 15: IV 2 question feedback

Based on the overall results for the theme of price, most participants consider buying clothing products on a monthly basis, which represents 74%, While 19 people indicated that they spend less than $5 on ethical products per month. On the other hand, 35% of the participants, which is the majority stated that they less often buy ethical products from independent retailers, while majority indicating that they importantly value that ethical products have unique features. Therefore, the price was considered to influence their purchasing decisions of ethical products, as most of them had different ideologies, on when and where they purchase ethical products.

Independent variable 3: Consumers’ ethical beliefs

Also, the survey questionnaire was conducted based on the prevalent theme of consumers ethical beliefs. The consumers were asked whether, whenever it is possible if they buy products packaged in reusable or recyclable containers. Hence, 20 participants strongly agreed, 13 agreed while nine were undecided. On the other hand, 4 participants disagreed, and five individuals strongly disagreed with buying products packaged in containers that were either reusable or recyclable, as shown below.

Figure 16: IV 3 question feedback

The participants were asked on whether they do not purchase products from companies that they are aware use sweatshops, child labour or other poor working conditions. Hence, 39% of the individuals strongly agreed, 23% agreed while 18% were undecided. On the other hand, 12% of the participants disagreed and 8% strongly disagreeing on buying products that are known to have poor working conditions as shown below.

Figure 17:IV 3 question feedback

The participants were asked to weigh in on whether they buy a product if they know that the company that is selling is socially irresponsible. Hence, 83% of the participants considered this to be true, while 14% of the individuals said it was false, and 3% said this question did not apply to them, as shown below.

Figure 18:IV 3 question feedback

Consumers were asked on whether they have paid more for socially responsible products even when there is a cheaper alternative. Hence, 18 individuals strongly agreed, 13 participants agreed while ten individuals were not undecided. On the other hand, 5 participants disagreed with paying more for products that are socially responsible while five individuals strongly disagreed.

Figure 19:IV 3 question feedback

Finally, to determine the consumer ethical beliefs of the participants, the study asked on whether individuals rarely buy ethical products as they feel their contribution will not make much difference to global inequalities and sustainability. Hence, 8% of the participants strongly agreed, with 18% agreeing, while 22% were undecided. On the other hand, 25% and 27% of the participants disagreed and strongly disagreed respectively, that they rarely buy ethical products as their contribution will not make much difference to global inequalities and sustainability as shown below.

Figure 20:IV 3 question feedback

From the study results concerning consumers ethical beliefs, it can be concluded that consumer ethical beliefs influence the purchasing decisions of ethical products, as different participants have different notions regarding purchasing ethical products. For instance, majority of the participants indicated that they cannot buy products from companies that are socially irresponsible as they belief such companies cannot offer ethical products. Besides, most people also indicated that they pay more for socially responsible products, even if there is a cheaper alternative, since they belief those kinds of the products may be sustainable.

Dependent Variable: Ethical Consumption

Another common theme identified in the study is ethical consumption. The first question was based on whether a consumer buys ethical products regardless of their cost. From the study, 5 participants strongly agreed with the notion, 16 individuals agreed while 13 participants were undecided. On the other hand, 15 participants disagreed that they only buy ethical products regardless of their cost, while two individuals strongly disagreed, as shown below.

Figure 21: DV 1 question feedback

Participants were asked on whether they like shopping in outlets that offer choices of ethical product. From the survey, 22% of participants strongly agreed, 34% of individuals agreed, while 28% were undecided. On the other hand, 14% of the participants disagreed with them liking to shop at outlets that offer choices of ethical products and 2% strongly disagreeing, as shown below.

Figure 22:DV 1 question feedback

The participants were then asked on the most critical consideration when purchasing an ethical product. Hence, 2 participants identified children; ten individuals identified human right agencies, five individuals identified producers or workers, one person identified online friends, 12 highlighted family and friends, while 21 identified themselves as shown below.

Figure 23:DV 1 question feedback

In understanding the ethical consumption activities of the ethical consumers, the study enquired on the kind of other ethical activities that the participants supported. Hence, eight individuals highlighted lifestyle choice, 13 people were involved in signing petitions, five persons considered sporting events, 20 individuals identified to support charity. At the same time, 5 participants did not have other ethical activities that they support, as indicated below.

Figure 24:DV 1 question feedback

Finally, the participants were asked how they felt interested in ethical consumption. Thus, 38% indicated to be much interested, 38% were somewhat interested, 2% were very little interested, while 22% were very much interested in ethical consumption, as shown below.

Figure 25:DV 1 question feedback

Test for Hypothesis

The quantitative data obtained from the survey questionnaire was analysed by utilising the statistical tool available in Microsoft Excel. The process involved using a T-test to determine the significance of a p-value and the Pearson Correlation to assess the relationships between the variables (Kim 2015, 540).

The result from the T-Test and Pearson Correlation for every hypothesis is as follows:

H1: Price will positively affect ethical consumption

For H1, as shown in the table, the p-value is zero, which means we have 100% confidence to conclude that the majority think that the price will positively affect ethical consumption. Therefore, hypothesis 1 is supported. Besides, the Pearson correlation of 0.57 indicates that there is a positive relationship between price and ethical consumption.

Andorfer, Veronika, and Ulf (2015, 330-350) confirm that price is among the common factors that significantly influence ethical consumption. This result comes after a survey of the various purchasing intention of Fair-Trade Coffee products. Govind et al. (2019, 1195-1214) equally note that price is a significant influence on behavioural outcomes in ethical consumption. From these viewpoints, most consumers would base their decisions on buying or not buying a product based on the price and the apparent budget available to the consumer. The unique factor in this hypothesis, as Andorfer, Veronika, and Ulf (2015, 330-350) proceeds is the distinction between status-seeking consumables that would still rise in demand despite an increase in price.

H2: Environmental knowledge will positively affect ethical consumption

For hypothesis 2, the p-value is 0.003, which means we have more than 95% confidence to say that the majority think that Environmental knowledge will positively affect ethical consumption. Therefore, H2 is supported. Further, the Pearson correlation of 0.403 represents a positive relationship between environmental knowledge and ethical consumption.

Paco, Arminda, and Tania (2017, 384-392) comment that when consumers are aware of their energy usage impact, they change their attitudes and behaviours towards mindless consumption. Such kind of environmental awareness is what Zollo et al. (2018) terms as moral intuition. This kind of moral intuition has led to creating a market segment that continually demands companies to be responsible for sustaining their environment (Paco, Arminda & Tania 2017, 384-392). The evidence of companies such as ShopHere, Shell, and BP focusing on research to determine such consumers’ nature and their behaviour drivers is proof that this variable positively influences ethical consumption (Zollo et al., 2018).

H3: Consumer ethical beliefs will positively affect ethical consumption

For the final hypothesis, since the p-value is 0.0904, which is higher than 0.05, the p-value is not significant. We do not have a 95% confidence level to say the majority think the consumer ethical beliefs will positively affect ethical consumption. Hence, H3 is not supported. However, the Pearson correlation of 0.364 shows that there is still a positive relationship between consumer ethical beliefs and ethical consumption. This factor is because the data was collected from 50 participants only, the results depended on the people who answered the questions. However, they may not represent the entire population.

Zollo et al. (2018) counter that while ethical beliefs are essential in consumer behaviours, it does not immediately affect ethical decision making and consumption. Additionally, Chen, Yanyan, and Dirk (2020, 551-572) state that guilt, caused by moral beliefs is not sufficient to determine certain behavioural tendencies of consumers with case studies from the Confucian context.

Result Discussion

The perception and behaviours of the ethical consumer will allow ShopHere to understand the role these individuals play in their clothing consumption practices, which will assist in determining the pricing of its products. Hence, the pricing of ShopHere products should match the budget spending of ethical consumers. According to Shim and Kim (2019), there is a need for a firm to have the ability of and the will to serve its customers based on their needs. Hence, taking into consideration the aspect of the price will assist ShopHere to ensure the ability to satisfy its target market of ethical consumers. Hence, ShopHere should have an appropriate pricing approach that will attract the rising number of consumers that are frequently buying ethical products from local producers, and the individuals that are interested in purchasing ethical products with unique features.

The in-depth one-on-one interviews conducted allowed the researcher to understand the environmental knowledge of ethical consumers. Environmental knowledge is an important aspect that guides ethical consumer that are becoming more conscious about the environment and cultural values on their consumption patterns, which is based on the perceptions and behaviours of individuals. Concerning the aspect of environmental knowledge, there is a rising number of ethical consumers that if given a choice, will choose the product that contributes to the least environmental damage. As suggested by Lee (2019, 640-641), the business can appeal to this particular segment of people that engage in ethical consumption based on approaches that will appeal to their orientation. The interviews showed that most respondents had switched products for an environmental reason, and this will be the appropriate segment for ShopHere to market its ethically sourced products. Hence, the proneness to the consumer relationship should be a known variable used in the segment to ensure that the right consumers are targeted (Chang, Vitell and Lu, 2019). Hence, ShopHere should segment consumers with environmental awareness for its products.

Based on the perceptions and behaviours of ethical consumers towards ShopHere ethical considerations, the qualitative research conducted to understand the attitudes and behaviour’s, shows that there is a rising number of ethical consumers shopping in outlets that offer choices of ethical products. Thus, the perceptions and behaviour’s of ethical consumers are guided by their aspects of ethical consumption. According to Brenton (2018, 761-762), there is a rising number of consumers that are choosing to purchase products that address the environmental issue to ensure they promote sustainable consumption. Also, 60% of participants involved in the questionnaire survey are more interested in ethical consumption. Hence, there is a changing perception and behaviour relating to ethical consumers, and this will allow ShopHere to target these individuals that are more socially responsible.

Based on the aspect of ethical consumer’s beliefs, individuals take into consideration ethical aspects involved, such as improved working conditions and implementation of living conditions influence the purchasing decision of ethical consumers. Hence, there is a rising number of consumers that do not buy products from firms engaging in the use of sweatshops, child labour and poor working conditions. Therefore, Andres et al. (2020, 3114) highlight there is a need for organisations to raise awareness on the significance of consumer’s behaviour on the social and economic aspects. Hence, this has resulted in the rise in the number of ethical consumers paying more for socially responsible products despite an alternative. There is a rising market for ethical consumers that will be appropriate for ShopHere to adopt its ethically sourced product. According to Reilly, Saini, and Skiba (2018, 2-3), firms require to understand the significance of ethics and how it relates to the consumers purchasing patterns.

Also, the ethical consumption of ethical consumers shows that there is a rising number of consumers that will purchase ethically sourced products regardless of the cost. Individuals portray concern about ethical consideration and implement it in the purchasing product. Hence, as suggested by Javed, Degong, and Qadeer (2019), a firm can promote sustainable communication by placing more emphasis on its social commitment to sustainability that will enhance its positive perception. Therefore, ShopHere will create positive outcomes that will have an impact on brand sales and reputation. Shim and Kim (2019, 134-135) suggest the need for the organisation to invest in substantial resources through corporate social responsibility. Therefore, adopting the use of products and practices that are environmentally friendly enhances ethical consumption.

Recommendations

From the study results, it is evident that ethical consumers actively perceive ShopHere’s ethical considerations positively, which can influence consumers’ purchasing decisions. However, not many people are aware of these considerations, as many people learned during the interview. Besides, a majority of people who portray concerns about ethical consumption implement it when purchasing products. Such positive considerations have a potential influence on consumers’ purchasing decisions. Chen, Yanyan, and Dirk (2020, 551-572), examine the moral intensity and judgments that consumers often encounter when deliberating on their purchase intention. These considerations vary from person to person based on gender, age, educational background, price levels, income, or past experiences. These values are all contributing to the purchase decisions, which have a direct influence on ethical strands.

Therefore, ShopHere should maintain its ethical initiatives and create more platforms for advertising its products so that people are aware of their strategies. Govind et al. (2019, 1195-1214), indicate that awareness creation phases ought not to cover only sales conversion, rather culture embedment and the creation of new norms. Within the framework of these norms is the opportunity to integrate ethical initiatives that ShopHere runs to enhance consumer awareness and brand loyalty.

Additionally, ShopHere should integrate the pricing mechanisms that will favour the rising number of ethical consumers. This move will increase the number of ethical consumers buying from their stores, thus increasing the revenue. Price premiums rely on brand loyalty and status gratification. Most consumers who express their ethical beliefs are often happy to buy products simply because of their price premiums.

Conclusion

The findings suggest that a growing number of consumers consider ethical aspects of the product that, in turn, influence their purchasing decisions. The significant variables that significantly affect ethical consumption include price and environmental knowledge. Hence, the consumer’s knowledge of environmental and social issues will impact consumers’ perceptions and behaviours towards apparel brands that are engaged in corporate social responsibility, and it will have an impact on promoting ethical consumptions. In understanding the ethical consumers in the market, the following study has shown that environmental knowledge, price and ethical consumer’s beliefs will have an impact on the success of selling ethically sourced products. It has been established that a rising number of consumers are making purchasing decisions relating to ethical products. The study has also shown that consumers’ ethical beliefs, despite being instrumental in determining ethical consumption, are quite subjective and do not directly relate to consumers making purchasing decisions related to ethical products. Nonetheless, ShopHere is in the right direction, and the recommendations above will be useful in establishing a competitive advantage while producing ethical products.

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Appendix

Appendix 1: Interview Transcripts

Interview Transcript No. 1

Segmenting and Targeting variables (personal Information)

Themes	Responses
Gender	Male
Age Bracket	18 to 35 years.
Occupation	Self-employed
Income range	Upper middle-income range.
Buys clothes from?	I buy from H&M and sometimes online on Amazon.
Monthly spending on clothes	About $68 per month on various items. I shop for my family as well, so sometimes the spending may be higher than that, if I am doing a onetime kind of purchase.
Reason for the respondent’s shop of choice.	I purchase from these companies mainly because they offer affordable, yet fashionable items. I sometimes buy items I find on other places that I like. It doesn’t have to be H&M and Amazon only. I just prefer them since they are affordable and they bring trendy fashion constantly into the market.
Information sources on new clothes of fashion.	Sometimes I just see an Item that I like when I am on social media and then I search it on the apps or in the stores. Other times a colleague or an acquaintance may encourage me to buy something because of one or more reasons.
Use social media	Yes, I use social media.
Celebrities followed on social media	I follow mainly musicians and fashion personalities.
Fashion-inspired motivation to follow a celebrity	Yes. Some of them are just impeccable in how they dress.
Ethical-inspired motivation to follow a celebrity	Yes. I follow some celebrities because they tend to sensitise the community through their massive followership on issues affecting all of us.

Perceptions about ShopHere ethical initiatives and personal ethical beliefs

Themes	Responses
Overall opinion on ShopHere ethical initiatives	I think they are a step in the right direction.
ShopHere initiatives are;	Good.
Why good?	I do not really subscribe to issues in terms of ethics and sustainability by companies but I know everyone has a part to play to make the world a better place. Any effort by anyone intended for social and environmental wellness is therefore as good as they come for me.
Do different	With the little I know about these issues, I believe what the company has done is good. They can do better in future and align their strategic orientation to such ethical initiatives and success.
Ethical initiatives in marketing	I would use the ethical sourcing initiatives specifically to communicate to markets, the high value of these products, in terms of durability, while ensuring that they can relate to the ethical sourcing efforts.
Buy from ShopHere because of the initiatives?	Yes.
Most efficient initiative in advertising	All the above
Ethical consumer behaviour	Sometimes I do consider these issues.
Community activity	Yes, we have a group which organises monthly clean-ups and other such activities within our locality.
Type of work	Sometimes we clean-up the streets, other times we organise a visit to a needy person or group.
Learning from the activities	These activities especially made me realise that everyone, doesn’t matter how small, can be part of a bigger movement for a better tomorrow. It’s no use blaming the government for failed regulations. Everyone can do their part where they are.
Alternative approach for ShopHere	Yes. From these community activities, Shophere can organise similar activities with its employees, for instance, cleaning the city. They can advertise for volunteers to join them and with their greater capabilities as a company, they may achieve growth visibility in the township.

Purchasing behaviour as a result of ethical consumer attitudes and Perceptions

Themes	Responses
Price sensitivity	I will take the least costly item. As much as ethical consumption is a valuable behaviour, I do not believe that I should spend more than I can afford for that. The makers should think of a way to make sustainable products sustainable even for the buyers.
Motivation by future good deeds from your money	Yes
Price premiums	Yes, I have encountered such. I reacted by querying why the pricing was different. To justify such a premium for my budget, I will need to be convinced that the item will be durable and serve me longer than the normal item.
Attitudes towards pricing	I don’t like such high pricing on products because they are labelled responsible or sustainable.
Awareness	Moderately aware
Sources of ethical consumer knowledge	Some from school, and some from online resources.
Influence of ethical consumer awareness on purchasing	Sometimes
Feelings and reaction to company responsibility	I don’t think I would purchase from H&M if I found convincing evidence that the company has perpetrated any of the accusations against them. I would not purchase from such a company as it would be like purchasing humanity at a throwaway price.

Purchasing behaviour intentions/potential sales increase

Themes	Responses
Buy from ShopHere because of ethical initiatives	Yes, if their clothes suited my taste.
Most effective initiative	All the initiatives are effective. How they are communicated will count.
Willingness to spend an amount of	Half of my monthly spending on clothing and fashion, provided they are suitable for me.
Awareness of ShopHere initiatives before interview	No.
Source of information	None. Have heard about the company today for the first time.
Effects of higher prices	Yes. The higher cost will affect my decision.
Factors affecting purchasing decisions.	It depends on what, how and where I am. Sometimes I seek prices because my work has not been as productive for the past month. Other times I may spend well above that on a high-value brand or high quality.
Refer a friend (Word-of-mouth)	Yes.
Opinion on sales increase and performance	Yes. These initiatives will endear consumers and others to the company for a longer future of growth.

Interview Transcript No. 2:

Segmenting and Targeting variables (personal Information)

Themes	Responses
Gender	Male
Age Bracket	18 to 35 years.
Occupation	Recent graduate- unemployed
Income range	Middle-upper middle
Buys clothes from?	My family buys online, I buy from the physical stores around with no brand preference.
Monthly spending on clothes	I don’t really buy clothes every single month, it’s a once in a while thing and I would spend about $100-150 on a single purchase.
Reason for the respondent’s shop of choice.	I purchase from these shops because they are convenient, simple and on my budget.
Information sources on new clothes of fashion.	I stay simple normally. If I have to go to work, I purchase new shirts and pants if not I just stay simple and buy a few simple quality t-shirts. I am not really into fashion.
Use social media	Yes, I use social media such as Facebook and Instagram.
Celebrities followed on social media	I follow people like Dwayne Jonson, Jason Statham, Vin Diesel and some of the popular famous footballers.
Fashion-inspired motivation to follow a celebrity	In certain situations, yes, I do get swayed by this kind of fashion relater motivation as worn or advertised by these celebrities. My main concern is still working around my budget.
Ethical-inspired motivation to follow a celebrity	No. Because I follow these celebrities for other areas and not for their ethical behavioural activities.

Perceptions about ShopHere ethical initiatives and personal ethical beliefs

Themes	Responses
Overall opinion on ShopHere ethical initiatives	I feel the company is doing the right thing as they try to work towards the ethical business expectations.
ShopHere initiatives are;	Good.
Why good?	Ethical consumption has to do with undiluted global warming and since the company has begun sourcing all the products ethically as they aim for a long-term sustainability which has to do with helping and respecting the environment. For this reason, it is way better than other companies that do really pay much hid towards ethical consumption.
Do different	I would do something similar. From my understanding and knowledge about responsible behaviour about ethical consumption. The first I would do is outsourcing the materials and relevant products while aiming at long-term sustainability development. Not much difference as compared ShopHere.
Ethical initiatives in marketing	I would do some marketing promotions and promotion messages which is customer eco-friendly and sustainable and being ethical in terms of material sourcing.
Buy from ShopHere because of the initiatives?	Yes. I would prefer to support our company which I know would think towards ethical consumption or trading.
Most efficient initiative in advertising	All the above
Ethical consumer behaviour	Yes, like I said, I prefer eco-friendly and environmentally friendly things.
Community activity	Yes. I did when I was still studying in school. We volunteered in different activities cleaning our regional nearby communities and housing estate.
Type of work	It is important for people to be aware of the damage and things we can do by recycle and reuse items and materials as it will benefit everyone because it’s important for us to pay attention to the it and be environmentally friendly.
Learning from the activities	Did not understand the question.
Alternative approach for ShopHere	No suggestions since most of the things has already been done by the company through outsourcing.

Purchasing behaviour as a result of ethical consumer attitudes and Perceptions

Themes	Responses
Price sensitivity	If you ask me based on these criteria, I am not going to lie, it will be based on my budget. But when it comes from an ethically sourced label with good quality, it is good enough to consider the $6 difference and go for the $10 shirt.
Motivation by future good deeds from your money	Yes. I have quite a few of multiple purchases in a few months or years and yes, some of the proceeds went to charity or society.
Price premiums	Yes, I do encounter certain products that have higher prices, and they could be t-shirts and shirts. I am not that surprised, because I know that in order to be working towards sustainable products, the company might have to give up certain things for more quality source and their overhead may be higher because of the way they source the materials.
Attitudes towards pricing	I purchase what I can afford.
Awareness	Moderately aware
Sources of ethical consumer knowledge	Friends, workmates and online resources
Influence of ethical consumer awareness on purchasing	Sometimes
Feelings and reaction to company responsibility	I wouldn’t lie, when I read or something similar to this situation, I feel very disappointed because millions are living in poverty and paid below minimum wages which should not be happening in the industry and people should be able to afford their basic living standards.

Purchasing behaviour intentions/potential sales increase

Themes	Responses
Buy from ShopHere because of ethical initiatives	No answer
Most effective initiative	Improving working conditions for employees in factories Ensuring a living wage for employees
Willingness to spend an amount of	Personally, I am not a fan of spending much money regularly on clothing so, I won’t spend that much from my money spending just on clothing
Awareness of ShopHere initiatives before interview	I am aware of ethical initiatives from other companies and not exactly or explicitly ShopHere.
Source of information	Not applicable
Effects of higher prices	My main element when I buy something is my budget, so, depending on the quality and ethical elements, I don’t mind paying a bit more.
Factors affecting purchasing decisions.	Price mostly
Refer a friend (Word-of-mouth)	I would definitely recommend or refer a friend to the shop
Opinion on sales increase and performance	For me, I think this kind of initiative is meant to increase sales and performance when people are curios of the firm and want to check it out.

Interview Transcript 3:

Segmenting and Targeting variables (personal Information)

Themes	Responses
Gender	Female
Age Bracket	18 to 35 years.
Occupation	Student
Income range	Low income
Buys clothes from?	Zara, Uniqlo
Monthly spending on clothes	I try to spend less than $100 a month.
Reason for the respondent’s shop of choice.	Affordability and good quality.
Information sources on new clothes of fashion.	Instagram models, celebrities, etc.
Use social media	Yes, I do.
Celebrities followed on social media	Kylie Jenner, Kendall Jenner, Kim Kardashian
Fashion-inspired motivation to follow a celebrity	Yes. The celebrities I follow on social media have good fashion sense which I really admire.
Ethical-inspired motivation to follow a celebrity	Yes.

Perceptions about ShopHere ethical initiatives and personal ethical beliefs

Themes	Responses
Overall opinion on ShopHere ethical initiatives	I feel that ShopHere is doing a good deed in trying to make the world and environment a better place.
ShopHere initiatives are;	Good.
Why good?	Environmentally friendly products are being produced.
Do different	I believe that what the company has done is good enough as it takes into consideration the environmental issues when creating a product.
Ethical initiatives in marketing	Did not understand the question.
Buy from ShopHere because of the initiatives?	Yes.
Most efficient initiative in advertising	All of the above.
Ethical consumer behaviour	I do consider these issues.
Community activity	Yes, I have. Back in secondary school, we had activities where we go to the beach every few months to do a clean-up of the beach.
Type of work	VIA (Values in Action) project.
Learning from the activities	These activities made me realize that everyone should play a part in keeping a clean environment, it is possible to make Singapore a clean and safe environment if everyone works together as one united nation. I have also learnt the 3Rs.
Alternative approach for ShopHere	Yes. Shophere can organize similar events with its employees.

Purchasing behaviour as a result of ethical consumer attitudes and Perceptions

Themes	Responses
Price sensitivity	If a product is pricey yet ethically responsibly made and of durable quality, I would consider getting it.
Motivation by future good deeds from your money	Yes
Price premiums	Yes I have encountered such things. One example is Pela Case. My reaction towards that was “Woah it’s almost the same price as a normal Casetify case but then its environmentally friendly, so it’s better”
Attitudes towards pricing	I wouldn’t buy an ethical product if it is 2 times more expensive than a normal product.
Awareness	Very aware
Sources of ethical consumer knowledge	From school, friends and social media.
Influence of ethical consumer awareness on purchasing	Sometimes
Feelings and reaction to company responsibility	I think that if there is enough convincing evidences from different sources that the fashion stores that i shop from are unethical, I would stop purchasing from them.

Purchasing behaviour intentions/potential sales increase

Themes	Responses
Buy from ShopHere because of ethical initiatives	Yes, if their fashion sense appeals to me.
Most effective initiative	All the initiatives are effective.
Willingness to spend an amount of	Lesser than how much I usually buy my clothes from.
Awareness of ShopHere initiatives before interview	No.
Source of information	Heard about it for the first time today.
Effects of higher prices	Yes. The higher prices would affect my decision.
Factors affecting purchasing decisions.	Depends on how much I’ve spent in a month. I have a budget for my needs.
Refer a friend (Word-of-mouth)	Yes.
Opinion on sales increase and performance	Yes. These initiatives will attract consumers who care about the environment.

Interview Transcript No. 4:

Segmenting and Targeting variables (personal Information)

Themes	Responses
Gender	Male
Age Bracket	18 to 35 years.
Occupation	Student
Income range	Low income
Buys clothes from?	Abercrombie & Fitch, Uniqlo
Monthly spending on clothes	Less than $50 a month
Reason for the respondent’s shop of choice.	Quality and brand preference
Information sources on new clothes of fashion.	Word of mouth, social media, models
Use social media	Yes, I do.
Celebrities followed on social media	NIL
Fashion-inspired motivation to follow a celebrity	NIL
Ethical-inspired motivation to follow a celebrity	No.

Perceptions about ShopHere ethical initiatives and personal ethical beliefs

Themes	Responses
Overall opinion on ShopHere ethical initiatives	I find it heartwarming that ShopHere is playing a part in being responsible in protecting the natural environment.
ShopHere initiatives are;	Good.
Why good?	Not many companies bother about ethically sourcing materials for production.
Do different	They do different by focusing more towards environmental sustainability.
Ethical initiatives in marketing	Did not understand the question. I find it heartwarming that ShopHere is playing a part in being responsible in protecting the natural environment.
Buy from ShopHere because of the initiatives?	Yes.
Most efficient initiative in advertising	All of the above.
Ethical consumer behaviour	I do consider sometimes.
Community activity	Donating clothes to migrant workers.
Type of work	Charity.
Learning from the activities	I’ve learnt that we can save the environment by recycling our things that we no longer useto the needy instead of discarding them.
Alternative approach for ShopHere	Yes. Shophere can organise similar events with its employees.

Purchasing behaviour as a result of ethical consumer attitudes and Perceptions

Themes	Responses
Price sensitivity	I will only spend within my means.
Motivation by future good deeds from your money	Yes
Price premiums	Yes I have encountered such things. I feel that is not worth it if the price is two times as expensive.
Attitudes towards pricing	I wouldn’t buy an ethical product if it is 2 times more expensive than a normal product.
Awareness	Quite aware.
Sources of ethical consumer knowledge	From school, friends and social media.
Influence of ethical consumer awareness on purchasing	Sometimes
Feelings and reaction to company responsibility	I think that if there is enough convincing evidences from different sources that the fashion stores that i shop from are unethical, I would stop purchasing from them.

Purchasing behaviour intentions/potential sales increase

Themes	Responses
Buy from ShopHere because of ethical initiatives	Yes, if it is suited to my taste.
Most effective initiative	All the initiatives are effective.
Willingness to spend an amount of	Lesser than how much I usually buy my clothes from.
Awareness of ShopHere initiatives before interview	No.
Source of information	Heard about it for the first time today.
Effects of higher prices	Yes. The higher prices would affect my decision.
Factors affecting purchasing decisions.	Quality and price.
Refer a friend (Word-of-mouth)	Yes.
Opinion on sales increase and performance	Yes. These initiatives will attract consumers who care about the environment.

Interview Transcript No. 5

Segmenting and Targeting variables (personal Information)

Themes	Responses
Gender	Female
Age Bracket	18 to 35 years.
Occupation	Student
Income range	Middle-upper middle
Buys clothes from?	Usually buy clothes from store. Like go shopping. Branded like Fila, Supreme
Monthly spending on clothes	Per month I would spend about $1000.
Reason for the respondent’s shop of choice.	The main reason is just to follow the fashion. People, friends influence me.
Information sources on new clothes of fashion.	When I am browsing the web then I will just look through it. Or if my friend recommends me then if I think it’s nice then I will become more tempted to see and maybe buy it.
Use social media	Yes.
Celebrities followed on social media	For Fila I remember is one Korean pop (Kpop) group, sorry, it’s BTS. Others include: BlackPink
Fashion-inspired motivation to follow a celebrity	Yes. For me because I know they are celebrities, singers and also because I am a big fan of them. So, they influence my purchase. Yes. I want to wear the same thing as them to feel fashionable. Everybody will treat them as a fashion icon or trend.
Ethical-inspired motivation to follow a celebrity	No. I never really think of that. I just follow because of how they dressed and look nice. because I don’t really know what activities they do.

Perceptions about ShopHere ethical initiatives and personal ethical beliefs

Themes	Responses
Overall opinion on ShopHere ethical initiatives	If they can, they should do more advertisements. Example, visual. In my own opinion, they should have a real target consumer. They can find celebrities or social media star to promote it on social media or wear it in public. As a fan of celebrity, you will be more reassured that this brand is doing for a good cause and they can also give up flyers. Why not right? Because from what I feel is that using celebrity video or social media. They can make it more attractive and add some message inside if they are doing it for a good cause. People will be more assured that this is a brand that they are willing to purchase.
ShopHere’s ethical initiatives are;	Excellent
Why good?	Yeah from the way I see if you sell just one product, not everybody will want to buy so if you sell more then, more people will want to buy from them
Do different	Maybe get more materials at a safer side. Like don’t use animal products. LY: Okay. They use cotton as their material so will you use the same material, or will you use different materials to attract more consumers? JJ: It depends. May or may not. Not everybody will have the same mindset. To get a real target consumer and know their needs is more important.
Ethical initiatives in marketing	Not answered.
Buy from ShopHere because of the initiatives?	Sure, why not.
Most efficient initiative/factors in advertising	All the above.
Ethical consumer behaviour	Actually, not really because I don’t really think of that when purchasing. LY: Okay, as long as you feel you going to use the item, you just make the purchase, right? JJ: Yeah.
Community activity	Yeah,
Type of work	like picking up rubbish at the park.
Learning from the activities	I learned how to reduce, reuse, recycle. It’s bad for the environment if no cleaning has been done. In the long run, the pollution level will not be so high if we do our part. And cleaner
Alternative approach for ShopHere	Not really.

Purchasing behaviour as a result of ethical consumer attitudes and Perceptions

Themes	Responses
Price sensitivity	I will choose the ethical one because I feel it’s right. If I go for the cheaper one, I do not know what the material is made of. It is worrying and the comfy is also not guaranteed.
Motivation by future good deeds from your money	Yes. There is an event on iphone. Yes. They have this charity at this period of time and once you made a purchase of that iphone, your money will go to charity. LY: Is there any other charity event that you are involved in other than this? JJ: Not really but most of the time I buy electronic things. I will tend to look at the materials. For example, whether it is recycled material.
Price premiums	Actually, I don’t remember the item specific detailed but why not because the product is made from a good source. And the price is higher but it’s reasonable. LY: So, you were not really shocked or surprised cause you already know of these products. JJ: Yeah because of the quality
Attitudes towards pricing	“I will pay more anyway for a product that will not affect the environment”.
Awareness (ethical knowledge)	I’m Extremely aware.
Sources of ethical consumer knowledge	All of the above
Influence of ethical consumer awareness on purchasing	Rarely
Feelings and reaction to company responsibility	JJ: I don’t like that they workers are paid below minimum salary, but they need to produce products in limited time, so I think it’s the only way. And in my opinion is that the company should treat the employees well. Give them enough break and food. LY: So, you feel that the employees should be paid slightly higher and they should be treated better. Their wellbeing should be taken care of. JJ: Yes.

Purchasing behaviour intentions/potential sales increase

Themes	Responses
Buy from ShopHere because of ethical initiatives	If I know, I will not support the company.
Most effective initiative	I would say all the above.
Willingness to spend an amount of	I don’t mind the amount spend. As long as I am reassured that the quality is good, and comfort is there. And what they do is correct.
Awareness of ShopHere initiatives before interview	Not really
Source of information	The interview
Effects of higher prices	Yeah if it’s ethical, I will pay higher costs.
Factors affecting purchasing decisions.	fashion trends.
Refer a friend (Word-of-mouth)	JJ: Yeah, I would. Because I know some of my friends, they are very aware of this and make decision on what they feel it’s right.
Opinion on sales increase and performance	JJ: It definitely play a role, but I don’t know how impactful it is.

Interview Transcript No. 6:

Segmenting and Targeting variables (personal Information)

Themes	Responses
Gender	Female
Age Bracket	18 to 35 years.
Occupation	Student
Income range	Middle-upper middle
Buys clothes from?	It’s like a mixture. Sometimes I like to do it online but most of the time it’s in store.
Monthly spending on clothes	Recently not so much but if you are talking about last time. I would say about two to three hundred.
Reason for the respondent’s shop of choice.	I have a variety. They are not local brand. They are made international which I get from overseas. I can’t recall the specific names, but they are mainly Japanese brands. I like Japanese fashion.
Information sources on new clothes of fashion.	I get my ideas from Pinterest. I just go into the store and if they happen to have some new clothing pieces, I will check them out.
Use social media	Yes.
Celebrities followed on social media	I don’t really follow celebrities on social media.
Fashion-inspired motivation to follow a celebrity	Not answered
Ethical-inspired motivation to follow a celebrity	Not applicable

Perceptions about ShopHere ethical initiatives and personal ethical beliefs

Themes	Responses
Overall opinion on ShopHere ethical initiatives	What ShopHere could have done on the product category at first. Like you mentioned that they sell a lot of products right like varieties. They could limit. they could focus on small groups first and if it’s successful. They can proceed with the other products. If you do it at one go, it will be costly and the consumers can’t keep up as well because when you released a new item, you mentioned that they tried to become ethical right? So, if the products. like everything to be ethical. It’s good but I don’t think the company will be able to afford doing everything at one go. A suggestion would be that take it one step at a time. Like a small section. Find out who are they going to target first. Like obviously they are going to target people who are more willing to purchase ethical products. Start small and don’t just rush to doing everything. Interviewer: Previously they already started selling a lot of products. different kind of products. Makeup, clothing, organic food. Do you recommend removing some of the stuff immediately or slowly? (Respondent: I mean if they are doing well then, they don’t have to remove them. But if they do see that the sales are declining. slowly let them exit the market. Eventually people will forget and focus on the stronger products that are actually doing well.) Interviewer: I see. Hopefully they will be able to find their target consumers this way. Respondent: I mean initially when they launched the products, they should already have like a target segment so I don’t think that is an issue but how the consumers act like, how they receive the message of the advertisement and how they see the products.
ShopHere’s ethical initiatives are;	Not answered
Why?	None
Do different	Limit products and introduce based on target client reception
Ethical initiatives in marketing	I mean if they are doing well then, they don’t have to remove them. But if they do see that the sales are declining. Slowly let them exit the market. Eventually people will forget and focus on the stronger products that are actually doing well.
Buy from ShopHere because of the initiatives?	Not answered
Most efficient initiative/factors in advertising	All the above.
Ethical consumer behaviour	Last time not really but I think I will consider them now.
Community activity	Yes
Type of work	During secondary school I did help in collecting the rubbish and clean up the beach.
Learning from the activities	I learned that everyone should play a part and keep our home clean. We should not anyhow litter.
Alternative approach for ShopHere	Maybe ShopHere can make a tote bag charity campaign. The tote bag can cost at $1 for every purchase. I believe that more people will be able to do a bit of charity this way.

Purchasing behaviour as a result of ethical consumer attitudes and Perceptions

Themes	Responses
Price sensitivity	Honestly, it has to depend on the materials and the quality as I am the kind of person that doesn’t look at the price of a product. For example, we are talking about clothes here. I buy it based on the feel and touch. if it’s comfortable and I like wearing it. It feels nice to touch. I would actually go for that option so even if it’s $10 or $4, it wouldn’t matter because I go for comfort and quality in general. Like the moment I touch the product. A clothing item for example. If I were to touch this T-shirt and it feels nice. I will try it and if I like it. If I touch it and I don’t like it, I won’t bother trying it no matter the cost or ethical it is.
Motivation by future good deeds from your money	Yes. Like there was this charity event, I bought a handmade tote bag that wasn’t cheap. The tote bag could have cost $10 elsewhere but they were selling for $35 but I still bought it because it was to help to children. I forgot which country it was, but they were helping. I got that tote bag. Actually, it would depend, I want to help others but at the same time, I would think to myself will I be using the item as well. The thing is I want to help others, but I don’t want to purchase something that I am not going to use. So, it is still going to be a waste. You really need to think carefully as well. Yes, you are paying for a cause but you are getting something that you just going to put in a corner in your room. it doesn’t make sense as well. Not really environmentally friendly in a way.
Price premiums	A lot of time yes. But my reaction was neutral. Like I get if it’s made ethically. There wasn’t any backdoor. I forgot the term, but it means that the production line wasn’t clean. They didn’t like do it… sorry give me one moment… Like those kinds of label whereby people use exploited workers and they didn’t use a proper system to make the products, so yea I do encountered products that are actually priced higher than the market price. To answer your question, I actually like to check them out, but I can’t recall if I bought any of those items before. Maybe I did, maybe I didn’t If your labour isn’t cheap, obviously you won’t mark your price cheaply as I know companies need to make profits as well so obviously, they are going to mark up the price slightly higher than the other market prices.
Attitudes towards pricing	The third one because I did mention that usually when I buy something it doesn’t matter. It’s just what I like.
Awareness (ethical knowledge)	I’m very aware. Sometimes. There are times when I am not aware when I’m shopping but there are times when I am aware so put it in the middle.
Sources of ethical consumer knowledge	All of the above
Influence of ethical consumer awareness on purchasing	Sometimes
Feelings and reaction to company responsibility	Like a feeling of anger and sadness. Like I feel that companies should do better than that. They shouldn’t treat their workers that way. They should be treated fairly. Most companies are working towards being more ethical in a sense to ensure there is transparency in their production line so to avoid these kinds of scenario. It’s also bad for the company. I don’t think I will buy from a shop if I know that they are not treating their employees well.

Purchasing behaviour intentions/potential sales increase

Themes	Responses
Buy from ShopHere because of ethical initiatives	I will check them out if I get a chance to see them
Most effective initiative	all the above.
Willingness to spend an amount of	That I can’t really say because it actually depends.
Awareness of ShopHere initiatives before interview	I mean not really. I usually think so much about it but these are issues that I won’t turn a blind eye to when I found out about it.
Source of information	The interview
Effects of higher prices	Not exactly. Even if it’s high cost or low cost, I would always think twice before buying. Like am I going to use it.
Factors affecting purchasing decisions.	Quality and the brand. Quality is number one for me and when it comes to brand, I kind of like buying branded stuff. Not a lot but sometimes. So obviously quality is number one. If I can afford to spend a little bit more… I might go for the brand.
Refer a friend (Word-of-mouth)	If I know that my friends are very particular in these kinds of things then yes, I would. I would recommend ShopHere. If they are price concern and the price in ShopHere doesn’t suit them then maybe not cause in a way no point recommending something to someone won’t consider purchasing from.
Opinion on sales increase and performance	I would assume yes because more young people are getting more environmentally conscious so if the company itself is pushing itself to becoming more ethical. I feel that they will attract more people and it could likely to an increase in sales and performance. However, there are small group of people that are sceptical about this cause they will be thinking that you are trying to rip them off in a way because you said that it’s ethically made and you charge them higher. But overall, it will be a good thing to be more responsible.

Interview Transcript no. 7

Segmenting and Targeting variables (personal Information)

Themes	Responses
Gender	Male
Age Bracket	18 to 35 years.
Occupation	Student
Income range	Upper middle
Buys clothes from?	H&M, forever 21, sports clothes, Nike, adidas. Internet shopping
Monthly spending on clothes	I don’t buy clothes regularly, but if I have to be specific, then approximately $100 per month
Reason for the respondent’s shop of choice.	Quality, Affordable price, and those brands are familiar than trying new brands which could be not my taste.
Information sources on new clothes of fashion.	Celebrities posting from SNS, tend to watch what they wear lately, and we could know the trends from them.
Use social media	Yes. Facebook, Instagram, YouTube
Celebrities followed on social media	Usually BlackPink, Korean idols. I like their way they wear, not normal but it’s really unique, sometimes casual. I can try to wear like this
Fashion-inspired motivation to follow a celebrity	No
Ethical-inspired motivation to follow a celebrity	Lee hyo Lee, she posted about the shoe brand, made by people who cannot listen (hearing disability), she also supports animal things, like she volunteered for abandoned dogs

Perceptions about ShopHere ethical initiatives and personal ethical beliefs

Themes	Responses
Overall opinion on ShopHere ethical initiatives	I don’t really care, if they do that, I’ll appreciate it for better future, it’s a good thing of course, but it doesn’t really motivate me to buy a product from there.
ShopHere’s ethical initiatives are;	Average
Why?	Usually main stream of the consumers don’t care about the green products, but for brand itself (Shophere) one of the good things for their advertisement if they decided to pursue it
Do different	I would say, it’s desirable when the business / corporation have some pressures to product green products, the pressure is necessary for better future
Ethical initiatives in marketing	Firstly, we can do marketing about changing their sources to ethical, and company is improving in more ethical way, as for their first purpose, targeting ethical consumers and after that educate the other people to consume ethical products rather than non-ethical products.
Buy from ShopHere because of the initiatives?	Yes, if price is reasonable for me.
Most efficient initiative/factors in advertising	All the above.
Ethical consumer behaviour	I consider the issues on recycling, especially I found that most of countries doesn’t have good recycling system like South Korea, feels like nobody care recycling and global warming will be coming in no time, so , of course I would attract for some companies which care about the disposing waste and recycling
Community activity	Yes
Type of work	About 13 years ago, Korea had an accident, the oil was spilled in one of the beaches in Korea, so we all went down there and help to clean the messes up., so many people came down to help.
Learning from the activities	To be honest, that was so many years ago, I don’t remember the moment that much but I clearly felt that we cannot harm sea creatures because of humans’ faults
Alternative approach for ShopHere	They could volunteer at some places in need, then they hit on a better idea for sales probably

Purchasing behaviour as a result of ethical consumer attitudes and Perceptions

Themes	Responses
Price sensitivity	$4 shirt made in Bangladeshi, it’s so simple questions, because the price is much more important for me, I even could by two $4 shirts, it’s even cheaper than Shophere $10 Shirt.
Motivation by future good deeds from your money	Yes
Price premiums	Yes, so many ethical products are more expensive than normal products, I think because they need marketing fees that they produce green products. My immediate reaction was negative of course, as a student, it’s hard to get an expensive one even if it’s ethical. I don’t want to be selfish but I will choose cheap products unless it’s affected directly to my life
Attitudes towards pricing	I really never make such distinctions. I just purchase something I like. But If I have enough money, I could make different choices
Awareness (ethical knowledge)	Slightly
Sources of ethical consumer knowledge	From online resources, school
Influence of ethical consumer awareness on purchasing	Sometimes Sometimes, If the company is very unethical, then I won’t buy, it’s not even my option, but for ethical company, I’ll consider price and quality more.
Feelings and reaction to company responsibility	I recognized there are already so many workers are suffering from low income and extreme labour, they are living globally and we still don’t know all situations. I feel awful about it, we need to reveal those companies who suffering workers and discriminate people, and netizens should boycott them until they improve its treatment.

Purchasing behaviour intentions/potential sales increase

Themes	Responses
Buy from ShopHere because of ethical initiatives	Yes of course as I said if there’s a reasonable price.
Most effective initiative	all the above.
Willingness to spend an amount of	I can’t spend regularly only on Shophere, but I could afford couple of clothes sometime.
Awareness of ShopHere initiatives before interview	No
Source of information	The interview
Effects of higher prices	Of course, it affects to my purchase decision. I cannot consider buying expensive things before I get a job. I’ll consider more higher prices when I have a job.
Factors affecting purchasing decisions.	Quality
Refer a friend (Word-of-mouth)	Yes, I always share the ad or any brand if they are doing ethically or doing the right thing, I advertise them by myself.
Opinion on sales increase and performance	Yes, I always share the ad or any brand if they are doing ethically or doing the right thing, I advertise them by myself.

Interview Transcript No. 8

Segmenting and Targeting variables (personal Information)

Themes	Responses
Gender	Female
Age Bracket	18 to 35 years.
Occupation	Student
Income range	High
Buys clothes from?	I’m usually buy clothes at online shopping mall.
Monthly spending on clothes	I spend on clothes less than $100 per month. But sometimes, i don’t spend on clothes at all
Reason for the respondent’s shop of choice.	The main reason I buy clothes from online is price. Since online shopping offer more-discounted prices than off-line, I can compare products’ prices so I can buy the things I want with cheapest price. Online shopping is not only less expensive, it is easier and more convenient
Information sources on new clothes of fashion.	Celebrities posting from SNS, tend to watch what they wear lately, and we could know the trends from them.
Use social media	I do. I use Instagram and twitter.
Celebrities followed on social media	I just follow celebrities that I’m interested in, mainly singers and actors.
Fashion-inspired motivation to follow a celebrity	Yes, I followed a celebrity just because she’s famous for fashion sense.
Ethical-inspired motivation to follow a celebrity	I am currently following a celebrity who has a good influence on people. I think she knows what she’s doing and how to use her influence by using her platform. She’s been kept posting about empowering women and women’s unhealthy obsession with their bodies. She has always pointed out the beauty industry in America society which is very harmful to women. So, I think she’s a good example of influencer who can use her influence effectively.

Perceptions about ShopHere ethical initiatives and personal ethical beliefs

Themes	Responses
Overall opinion on ShopHere ethical initiatives	Good
ShopHere’s ethical initiatives are;	Good
Why?	I think it’s a good idea that Shophere targeted ethical consumers. Since the interest in ethical consumption has been increased in our society, people began to consider buying products which are sourced ethically. It means ethically made products affect consumer choice. So, it was a wise choice to change their target to fit the current consumption trend of people
Do different	I’ll promote and educate the future customers about green products and why is it important.
Ethical initiatives in marketing	I have no idea, probably they will do more marketing in specific parts they do well.
Buy from ShopHere because of the initiatives?	I would love to!
Most efficient initiative/factors in advertising	Ethical sourcing
Ethical consumer behaviour	all the above are important for sure, but I’d choose improving working conditions for employees in factories would appeal to ethical people the most. Because It just remind me of the article that I read couple days ago, it was about the Kylie Jenner’s workers in Bangladesh. There is a movement on Instagram and twitter to boycott products from Kylie Jenner’s cosmetic brand when it turned out she’s not paying her factory workers in Bangladesh. I saw my friends post and share a petition against this. So, I think improving working conditions for employees would appeal to ethical people in ad.
Community activity	No. I’ve never had a chance to take a part in.
Type of work	N/A
Learning from the activities	N/A
Alternative approach for ShopHere	They need to follow the precedent like representative companies already support no animal testing like pursuing something right for saving the future.

Purchasing behaviour as a result of ethical consumer attitudes and Perceptions

Themes	Responses
Price sensitivity	To be honest, If I have enough budget for purchasing, I would buy ethical products in Shopehere, $10 shirt, because somehow, I feel bad if I found out the other companies are not ethical.
Motivation by future good deeds from your money	Yes
Price premiums	It depends, some ethical companies are expensive but some of them are amazingly cheap
Attitudes towards pricing	I purchase what I can afford. I’ll pay more for a product that will not affect the environment. But to be honest, it’s depends. If I don’t have that much budget, then I just purchase what I can afford.
Awareness (ethical knowledge)	Very aware
Sources of ethical consumer knowledge	From friends
Influence of ethical consumer awareness on purchasing	Sometimes Sometimes, If the company is very unethical, then I won’t buy, it’s not even my option, but for ethical company, I’ll consider price and quality more.
Feelings and reaction to company responsibility	I’ve already heard about it and it’s truly disgusting. I think that’s why people should bring up this topic on discussion and send the message to fast fashion companies that they demand ethical sourcing. If people do this in large numbers, this will force those companies to slow down and give consumers what they want, then it will cause decreasing numbers of underpaid employees in factory.

Purchasing behaviour intentions/potential sales increase

Themes	Responses
Buy from ShopHere because of ethical initiatives	Yes, I would
Most effective initiative	all the above.
Willingness to spend an amount of	I’m willing to spend $100.
Awareness of ShopHere initiatives before interview	No
Source of information	The interview
Effects of higher prices	Higher costs of such product mean they promise improvements for better working conditions and they actually make real change, so it’s worth it to pay more.
Factors affecting purchasing decisions.	Quality and price
Refer a friend (Word-of-mouth)	Yes
Opinion on sales increase and performance	Yes. Apparently ethical consumers movement has been growing these days, lots of people will focus on those shops.

Appendix 2: Thematic Analysis

Research Questions	Theme/Code	Excerpt of testimonies
What are the perceptions and behaviours of ethical consumers towards ShopHere ethical considerations?	Consumer Ethical beliefs	Q1. How will you use ethical initiatives in marketing? “I would use the ethical sourcing initiatives specifically to communicate to markets, the high value of these products, in terms of durability, while ensuring that they can relate to the ethical sourcing efforts” (respondent 1). “I would do some marketing promotions and promotion messages that are customer eco-friendly and sustainable and ethical in terms of material sourcing” (respondent 2). “I mean if they are doing well then, they don’t have to remove them. But if they do see that the sales are declining. Slowly let them exit the market. Eventually, people will forget and focus on the stronger products that are doing well” (respondent 6). “Firstly, we can do marketing about changing their sources to ethical ways, and the company is improving more ethically, as for their first purpose, targeting ethical consumers and after that educate the other people to consume ethical products rather than non-ethical products” (respondent 7).
	Price	Q1. Imagine you went to a ShopHere retail store and found a $10 shirt with an “ethically sourced” label and a $4 shirt made in Bangladeshi, which one would you take and why? (they both satisfy your taste for fashion) “I will take the least costly item. As much as ethical consumption is a valuable behaviour, I do not believe that I should spend more than I can afford. The makers should think of a way to make sustainable products sustainable even for the buyers” (respondent 1). “If you ask me based on these criteria, I am not going to lie, and it will be based on my budget. But when it comes from an ethically sourced label with good quality, it is good enough to consider the $6 difference and go for the $10 shirt” (respondent 2). “If a product is pricey yet ethically responsibly made and of durable quality, I would consider getting it” (respondent 3). “I will choose the ethical one because I feel it’s right. If I go for the cheaper one, I do not know what the material is made of. It is worrying, and the comfy is also not guaranteed” (respondent 5).
	Environmental knowledge	Q. What are your attitudes towards pricing? “Yes, I always share the ad or any brand if they are doing ethically or doing the right thing, I advertise them by myself.” (Respondent 7) “I’ll pay more for a product that will not have an environmental effect.” (Respondent 8) “If a product is pricey yet ethically responsibly made and of durable quality, I would consider getting it.” (Respondent 3) “Ethical consumption has to do with undiluted global warming . Since the company has begun sourcing all the products ethically as they aim for long-term sustainability, which has to do with helping and respecting the environment.” (Respondent 2)

Appendix 3: H1 test result table

Appendix 4: H2 test result table

Appendix 5: H3 test result table