Ethical Behaviour Segmentation Model

Behavioural models based on ethics can tap into very strong value systems and lead to loyal but demanding customers.

Terry Newholm at the Centre for Complexity and Change at the Open University (OU) researched the habits of ethical consumers. The result was 3 classifications based on their buying strategies. Like all classifications, people can exhibit traits from more than one classification.

 

Distancers	Distancers aim to avoid anything they consider unethical and make take this to extreme lengths. For example, by avoiding even public transports because it pollutes, or avoiding leather shoes because they are vegan. They cope by changing their lifestyles. Distancers will want lots of factual information both about the products and the companies supplying them. They may well ask detailed questions before making a purchasing decision. A Strategic Interactive Marketing approach could provide these customers with underlying factual information as well as access to a discussion forum where similar customers could exchange facts and ideas. Products that supported an alternative lifestyle would be attractive to this group. Mortgages on ecologically built and run houses, low cost motor insurance for old, small and very low mileage cars.
Integrators	Integrators take ethics into all parts of their life: work, social and consumption, such that action in one area is reinforced by, or complemented to those in another. Integrators need lifestyle information both about the products and the companies supplying them. They will want to know who the product is aimed at and will expect visible artefacts such as a clearly labeled credit card. They will be looking for similar integration in the supplier. The Co-operative Bank appears to be positioning itself for these sort of customers. On the other hand, a Unit Trust Manager selling an Ethical Fund product would not attract an Integrator if the company also had funds investing say in the arms trade or if the company built a head office on a new green field site. Once these issues are addressed, an Integrator could well be attracted to a Strategic Interactive Marketing approach if it, for instance, allowed him or her to define their own personal criteria for the underlying funds.
Rationalisers	Rationalisers will conform ethically in limited areas and in isolation aiming to do their bit but without too much impact on their lifestyle. Thus they limit their ethical shopping habits to a few specifics and will not see any contradictions with other actions they take. Many people belong to this group, for example buying recycled paper products that only cost a few pence more but at the same time filling the shopping basket with mineral water transported from France. Rationalisers are perhaps the easiest to address and are the biggest segment. On the other hand this group will limit themselves to a few products in this category. A company could introduce additional products to address this segment without appearing hypercritical v.v. their other products. Examples are a credit card that gives a percentage donation to a good cause and a broad ethical unit trust fund that is printed on recycled paper. A Strategic Interactive Marketing approach will display ethical products, services and choices amongst the list of standard offerings and make it easier for the consumer to select an ethical option. Equally, as the consumer's choices change, they should be able to amend any previous selection.

Needless to say, communications to these different types of customers need to be different and in many cases personalised to the customer's individual concerns.

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External Resources

1. Cook, Yvonne, 1999, What to do when life's too fast to be thrifty, Green, or vegan, The Independent, 1 June 1999.
2. See the Links to External SIM Resources.

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