ATTITUDE AND PERCEPTION OF CONSUMERS TOWARDS SUSTAINABILITY AND ETHICAL MARKETING IN NIGERIA (A CASE STUDY OF UYO LGA)

CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

The concept of marketing has undergone significant changes over time. Initially, the main goal was to promote products that satisfied consumers' needs (Belz & Peattie, 2012). This perspective increasingly changed as companies realized that building lasting customer relationships was just as important and placed the customer at the center of their business (Kumar et al., 2012). Apart from promoting and selling goods and services, marketing today also aims to encourage responsible consumer behavior that takes into account the broader social and environmental impacts of consumption.

Given the growing awareness of the harmful effects of unsustainable consumer behavior on the environment, this shift in marketing theory has become particularly significant. According to Garrod and Fyall (1998), the increasing environmental impact of consumption poses a serious threat to the future of the planet and, if left unchecked, could make it uninhabitable. To solve this growing problem, sustainable marketing was developed as a strategic approach that balances business goals with the long-term well-being of the environment and society.

Sustainable marketing integrates traditional business goals with environmental and social considerations, emphasizing practices such as environmentally friendly product development, responsible sourcing and fair labor practices.

This change reflects the increasing importance of sustainability in the modern corporate landscape. Sustainable marketing practices also take into account the growing role of consumers as agents of change. As more consumers express a desire to make responsible purchasing decisions, companies are recognizing the need to meet this demand by adopting ethical marketing practices that emphasize environmental and social responsibility. Companies can reduce their impact on the environment and strengthen their relationships with sustainability-conscious customers by creating products that embody these ideals.

Therefore, sustainable marketing promotes long-term social and environmental benefits while enabling consumers to make informed decisions. This strategy is consistent with ethical marketing principles, which are a set of moral standards that influence marketing decisions and actions (Gaski, 1999). Ethical marketing drives companies to make marketing decisions that are morally acceptable in light of the relationships between marketing managers and other stakeholders, including customers, employees, competitors, and the general public (Goulet, 1997).

Since ethical principles require companies to maintain minimum standards of liability and to conduct their marketing activities in a way that the company is transparent and acceptable to all, ethical marketing is a topic that is important to both science and practice (Tanveer et al., 2021; Pearson, 1989; Ferrell et al., 2019). The fact that customers in modern societies still choose socially accepted brands and expect high quality products, even though these products may cost more, further emphasizes the importance of ethical marketing (McGuire et al., 1988). Ethical marketing typically contributes to a more culturally sensitive and socially conscious corporate culture. Since marketing is a large part of any business model, ethical marketing is an integral part of business ethics (Dunfee et al., 1999; Singhapakdi & Vitell, 1990).

Building on the theoretical foundations of ethical marketing, ethical practices should be applied while analyzing whether the product or service is accurately and factually represented with respect to cultural and social values. Ethical marketing practices provide managers and marketers with guidance on how to deal with ethical issues (Reidenbach et al., 1991). Companies that integrate sustainability into their operations often achieve competitive advantages, such as: improved brand loyalty and customer retention.

This trend reflects a broader global movement toward ethical consumption, as consumers increasingly value transparency and environmentally friendly practices (Boluk et al., 2019; Prates et al., 2015). Companies that prioritize ethical and transparent marketing tactics often see an improvement in their customer interactions. Ko et al. (2015) and Liu et al. (2019) assert that this highlights the importance of finding a balance between sustainability and local cultural and economic considerations. Global frameworks such as the United Nations Sustainable Development Goals, which attempt to address social and environmental issues, further promote the goal of sustainability.

Nigerian consumers, particularly the younger demographic, are increasingly recognizing the importance of a sustainable lifestyle. This demographic shift offers companies the opportunity to innovate in areas such as environmentally friendly products and waste reduction and to align marketing strategies with ethical principles (Boluk et al., 2019; Shaukat and Ming, 2022). In addition to the positive impact on the environment, sustainable marketing also impacts customer trust and long-term brand equity. Companies in Nigeria and other countries that prioritize genuine sustainable practices over specious claims gain loyal customers over time.

Furthermore, empirical research suggests that aligning marketing tactics with ethical principles not only meets growing consumer demands but also promotes broader societal benefits (Huo et al., 2022; Islam and Rahman, 2016). Despite global discussions about the importance of ethical marketing practices, Nigerian consumers generally focus more on the price and availability of products than on the ethical considerations behind their production and distribution. Factors such as socioeconomic status, education and access to information can influence how Nigerians perceive the importance of sustainability and ethical marketing. Against this background, this study aims to examine the attitudes and perceptions of consumers in Uyo towards sustainability and ethical marketing.

1.2   Statement of the Problem

The growing emphasis on sustainability and ethical marketing globally has not fully translated into widespread adoption in Nigeria, where economic and cultural barriers often impede progress. Many Nigerian consumers remain skeptical of companies' sustainability claims due to greenwashing and inconsistent corporate practices. Additionally, limited consumer education on the benefits of sustainability and ethical marketing further hinders engagement and purchasing behaviors aligned with these values (Ko et al., 2015). These gaps highlight the need for clearer, more transparent communication and policies tailored to the local context.

The lack of widespread consumer support for sustainable practices in Nigeria poses challenges for businesses striving to align with global trends. Despite growing awareness, many companies struggle to balance economic growth with ethical responsibilities, as consumer demand for sustainable products remains inconsistent. This disconnect affects market adoption and leaves room for exploitative practices, undermining consumer trust and brand equity (Islam & Rahman, 2016). Addressing these issues requires a deeper understanding of consumer attitudes and the development of strategies that resonate culturally and economically.Top of Form

1.3 Objectives of the Study

The main objective of the study is to examine Attitude and Perception of consumers towards sustainability and ethical marketing in Nigeria. Specific objectives of the study are:

1. To understand the level of consumer awareness and knowledge of sustainability and ethical marketing practices in Nigeria.
2. To examine the influence of demographic factors age, gender, income, education on consumer attitudes towards sustainable and ethical products and brands.
3. To explore the factors that motivate or hinder Nigerian consumers' willingness to pay a premium for sustainable and ethical products.

1.4 Research Questions

To guide the study and achieve the objectives of the study, the following research questions were formulated:

1. To what extent are Nigerian consumers aware of sustainability and ethical marketing concepts and practices?
2. How do demographic factors age, gender, income, education influence Nigerian consumers' perceptions of sustainable and ethical brands?
3. What are the key factors that influence Nigerian consumers' willingness to pay a premium for sustainable and ethical products?

1.5 Research Hypothesis

The following research hypothesis was developed and tested for the study:

Ho: There is no significant relationship between consumers’ attitudes and perceptions towards sustainability and ethical marketing in Nigeria.

1.6 Significance of the Study

The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:

Firstly, the paper will benefit major stakeholders and policy makers in the Marketing sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.

Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.

Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.

1.7 Scope of the Study

The study is delimited to Uyo LGA. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.

1.8 Limitations of the Study

The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.

1.9 Organization of the Study

The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.

Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.

Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.

Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study

Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.

1.10 Definition of Terms

1.  Attitude Towards Sustainability

The consumer’s general evaluation, feelings, and beliefs regarding the importance of sustainability practices, such as environmental protection, social responsibility, and resource conservation, in the Nigerian market. This includes both positive and negative assessments of sustainable practices by businesses.

2.  Perception of Ethical Marketing

 The way Nigerian consumers interpret and judge the practices employed by businesses in promoting their products or services ethically. It involves the extent to which consumers believe that companies act transparently, honestly, and in alignment with societal values, such as fairness, justice, and integrity.

3.  Consumer Ethical Decision-Making

The process by which Nigerian consumers decide whether to support a business or purchase a product based on the ethical considerations involved, such as whether the company engages in fair trade, respects human rights, or maintains environmental sustainability in its operations.

4.  Corporate Social Responsibility (CSR)

 The commitment and actions taken by Nigerian businesses to operate responsibly in their environmental, social, and economic spheres. CSR in the Nigerian context often includes contributions to local communities, sustainable practices, and efforts to reduce environmental footprints.

5.  Green Marketing

 A marketing approach in Nigeria that focuses on promoting products and services based on their environmental benefits. This can include claims about the sustainability of products, such as being eco-friendly, energy-efficient, or recyclable, aiming to influence consumer perceptions of environmental responsibility.

6.  Sustainable Consumption

The behavior of Nigerian consumers in making purchase decisions that minimize environmental impact, such as choosing eco-friendly products, supporting businesses that use sustainable materials, or reducing waste through conscious consumption patterns.

7.  Trust in Ethical Brands

 The level of confidence Nigerian consumers have in businesses that promote ethical practices. This trust is influenced by their perception of how genuinely a brand adheres to ethical standards, including environmental sustainability and social responsibility, compared to businesses that may use these values for marketing purposes only.