The meeting of generation D and fairtrade companies : A study on the consumption behaviour of young swedish women and their characteristics

Linköping University SE-581 83 Linköping, Sweden

The meeting of

Generation D and fair

trade companies

A study on the consumption behaviour of young

Swedish women and their characteristics

Moa Bergdahl

Chloé Brazille

Acknowledgement

We would like to thank all the persons who have helped us to create this study. This thesis would not have been possible to complete without the creativity and support

from our tutor Mehran Noghabai.

Moreover, we would also like to thank our peer opponents who gave us feedback and advice, which helped us improve our work.

A big thank you to all the respondents who took the time to answer our survey and to the ones who were willing to be interviewed.

Last but not least, we would like to thank our families and friends who provide us with support and help.

Summary

Young people, born in the 1990s, are pictured by the society as individuals who are connected and who tend to put their physical moments besides. Only a few studies have been carried out to understand how they feel and why they act as they do. The purpose of this study was to understand the consumption behaviour and the characteristics of a new generation: Generation D, in order to reach them efficiently with fairer market alternatives.

This research seeks to address the following questions: 1.Who are the people representing Generation D?

2.What is sustainable, what is fair?

3.How should the relationship between the generation and fair-trade brands look like?

We found out, with the help of the empirical findings and the analysis, that a company needs to take into account two main characteristics to target this generation. We noticed that social media have a real impact on the people from this generation. This generation grew up with the development of the technological world; the internet is part of their life. We noticed that social media might influence the self-esteem of this individuals, they tend to compare their life to others. However, social media are one of their main channels of communication. We also found out that the individuals who are part of this generation are looking for meaningful actions. They want to be useful and help our society by protecting the environment or social rights. To be able to reach the people from this generation, companies need to use social media to communicate with them and focus on the understanding of the true feelings of these individuals. They need to establish an honest relationship.

This thesis might be valuable for companies who want to target young generations and reach them efficiently. They need to understand the true feelings of their target group and rethink marketing strategies to differentiate themselves from the jungle of competitors. Marketers can also use our synthesis of the theoretical framework and apply it to their segment. Lastly, this study helps in raising awareness regarding the effects of using the internet and regarding the expression of oneself.

Keywords: generation D, consumer behaviour, digital marketplace, marketing strategy, fair trade, emotional marketing, segmentation

Table of content

1.6. Disposition of the thesis ... 6

2. Theoretical framework ... 7

2.1. Generation Y to Generation D: the demand ... 7

2.1.1. Generation Y – The Millennials ... 7

2.1.2. A new segment: Generation D ... 8

2.2. Consumer behaviour ... 9

2.2.1. Consumer behaviour: a process ... 10

2.2.2. AIDA model... 12

2.3. A picture of fair trade companies: the offer ... 13

2.3.1. The current aspect of the marketplace ... 13

2.3.2. The concept of fair trade and its limits ... 14

2.3.3. Fairtrade Sverige ... 15

2.4. Marketing strategies ... 16

2.4.1. Online marketing ... 17

2.4.2. Emotional marketing ... 19

2.5. Synthesis of the theoretical framework ... 20

3. Methodology ... 23

3.1. Research approach ... 23

3.1.1. Inductive vs deductive approach ... 23

3.1.2. Qualitative vs quantitative methods ... 23

3.2. Chosen method: mixed method research ... 24

3.3. Data collection ... 25

3.3.2. Online survey ... 26

3.3.3. Semi-structured interviews ... 28

3.3.4. Participants selection ... 29

3.4. Limitations of the study ... 30

3.4.1. Choice of method ... 30

3.4.2. Quality of the research: validity and reliability ... 30

3.4.3. Ethical considerations ... 31

4. Empirical findings ... 33

4.1. Observations of two fair trade shops based in Östergötland ... 33

4.2. Online survey ... 34 4.2.1. Consumption ... 34 4.2.2. Opinions ... 36 4.2.3. Communication ... 37 4.2.4. Current market ... 37 4.2.5. Open questions ... 38 4.3. Semi-structured interviews ... 38 5. Analysis ... 43

5.1. The meeting of the offer and the demand ... 43

5.2. Buying behaviour of Generation D ... 43

5.2.1. Characteristics of Swedish women aged between 20 and 30 years old: Generation D ... 43

5.2.2. Generation D’s decision-making process ... 45

5.2.3. The use of AIDA model on Generation D ... 46

5.3. Generation D and fair trade companies ... 50

5.4. Theoretical framework synthesis; the meeting of fair trade companies and Generation D ... 51

6. Discussion & Conclusion ... 53

6.1. Who are the people representing Generation D? ... 53

6.2. What is sustainable, what is fair? ... 54

6.3. How should a sustainable relationship between Generation D and fair-trade brands look like? ... 54

6.4. Further research ... 55

Reference list ... 57 Appendix ... I

Appendix 1: Survey questions translated from Swedish to English ... I Appendix 2: Semi-structured interviews questions and answers ... IV

1.

Introduction

In this first chapter, we are going to describe the context of our study, explain the problem and our research objective. This research concerns a group of young women and their consumption behaviour. We will divide Generation Y in order to focus on a smaller group of individuals, called Generation D in this study. A better understanding of this young generation is needed to enable companies to address the requirements of this generation in a more suitable way. Indeed, the current market situation is not satisfying enough for this generation. Generation Y is pictured by our society through media, based on what this generation shows to the world instead of what they feel. They are the main actors in the internet-driven world. They initiate and follow new trends through social media; for example, current trends are linked to sustainability.

Previous studies have shown the role of emotions in marketing. However, a few have dealt with the young generation’s emotion situation in the consumer behaviour field. The people in this generation hides their true feelings and only shows their ideal self to the world. Thus, there is a need for a more accurate description of who the people from this generation are and how they express themselves, especially online. Moreover, this segment represents the current consumer but also the future consumer. They are looking for a world with fairer alternatives to live in a better world. A notably marketing opportunity appears, especially for small companies, since they can take more time to focus on an honest relationship with the consumers, thus with this new generation.

1.1. Background

A generation anchored in an internet-driven world

Our society pictures Generation Y as connected and who tend to put the physical moments besides, mainly since this generation is born during the technological progress era. In our growing society, individuals are often influenced by different media, in their everyday life, especially through social media. For example, Facebook, the most used social media, reached, in 2017, 1.36 billion active users monthly (Reuter and Spielhofer, 2017). Nowadays, dealing with the influence of the internet on young generations is a significant dilemma. Indeed, since the beginning of the 2000s, online shopping, games, forums and

social media have experienced exponential growth. According to Bolton et al., (2013), the generation born between 1981 and 2000, communicates mainly through social media.

Ridings and Gefen (2004) claim that people communicate through social media to satisfy their need for affiliation and belongingness. They may tend to keep their deep feelings for themselves and somehow express them more easily through social media. Even if the internet and its social media are useful in many ways, the use of the internet among young people can affect their mental health. Indeed, social media influence them in different ways. For example, social media tend to reinforce the ideal picture of the human body expressed by society. Some studies have also shown that young people are mainly influenced by online marketing campaigns. Women are more sensitive; 36 per cent of online female consumers bought something based on advertising they noticed on social media against 33 per cent online male consumers (Statista, 2013).

Internet is an essential part of the life of the people born after 1990; thus, new channels for marketing strategies are created, such as the use of influencers on social media. Consumers do not only buy according to their personality; they also buy according to what is communicated to them. Thus, the youth tend to follow, when purchasing, the trends convey through the different messages received every day and might not express their true feelings.

Overall, young generations use social media to exchange and share with others but also to purchase. The use of social media also has drawbacks, such as influencing people. It can have a direct, or indirect, impact on their well-being. They will tend to express an ideal image of themselves and hide their true feelings.

Redefinition of Generation Y: Generation D

A new wording was needed to describe this new generation, which is connected and influenced by the online world, and thus, who does not express their true self. Our current market is not designed for this generation; companies need to adapt their offer to the requirements of this new generation. They are born after 1990 and before 2000. In 2018, this segment was represented worldwide by approximately 1 billion 195 million young people (Euromonitor International, 2018). There is a need to identify and describe this generation by what they feel and not by what they show and say. They want to act

differently in this continually changing world and deserve better alternatives, fairer alternatives. It is a segment of young individuals who don not express what they really feel but still manifest their willingness to live in a better world. We live in a society where perfectionism might be the main concern for a lot of people, and it mainly affects the behaviours of young people. This generation might seek the truth and might not want an unfair world anymore.

They tend to express themselves through their purchase. It is a way to reflect their personality and show to the world a small part of themselves. Individuals purchase products that they think will fit their personality and their values (Solomon, 2015: 506). Young generations are concerned about global issues and the environment (International Civic and Citizenship Education, 2016). According to Fairtrade International (2017), fair-trade sales, around the world, reached 7.88 billion euros in 2016. There is a growing demand for fair-trade products. This demand, as well as Generation D, should be taken into consideration by the companies. They feel concerned about our current world situation, and they value buying sustainably. We called them: “Generation D”. Why do we use the letter D? Difficulties in facing the unfair world and dissatisfied with this world; these words can describe this new generation at some point.

1.2. Problematisation

In previous studies, researchers have dealt with Generation Y but not in detail. They have shown the links between the people in this generation. However, they did not focus on the differences inside this generation. There is still a lot of things that need to be studied in detail. For example, in Generation Y, different groups can be identified. One of the possible groups is young people who might struggle to share their feelings in the real world but who are expressing them through the internet and social media. There is a lack of information regarding this segment and their consumption behaviour. It is time to highlight attitudes that are unknown or not much known of people born in the 1990s. Since this generation has grown up with the internet and more precisely with social media, it might have shaped their consumption behaviour. Therefore, it is highly relevant to design a psychographic profile for this segment to reach them.

There is a gap between what people are facing, in the outside world, and what they are feeling. In order to illustrate the struggle of this new generation, we can compare it with similar feelings that occur from the fear of missing out (FOMO). Several studies have discussed this phenomenon as one of the biggest challenges of our time and its potential impact on increasing loneliness. According to Larry Dossey (2014: 70), the heavy use of social media destroys intimacy as a result of their limitation of human contact.

The current market situation is not suitable for the new generation even if companies try to adapt themselves. Indeed, we live in a consumption society where we are influenced to continually buy products to be happy. A change is needed to sort out all the information that consumers receive every day and to provide better alternatives for an unsatisfied generation. Indeed, the information is not always objective, can mislead the consumer and does not always correspond to what the targeted group wants. New ways of trading products should be implemented in a more honest and fair way. The new generation wants, by their consumption, to make a difference and contribute to the world.

Even though there are already marketing strategies for Generation Y, only a few are focusing on specific groups in Generation Y. Moreover, we can see that this generation, and especially Generation D, can be a part of something bigger, such as becoming the end consumer of small brands.

It can be a win-win situation:

• Small unknown fair-trade companies, who are struggling to integrate and expressing themselves in the traditional channel of distribution where the multinational brands are the main actors;

• A generation of young people who do not share their feelings, who want to open themselves through a more sustainable way of consuming and who need fairer alternatives that suit their personality.

We talk about a generation where young people believe they are not taken seriously enough as consumers. They need to find companies that are fair in what they do and who can help the generation reflecting their personality.

1.3. Purpose

The purpose of this study is to understand the consumption behaviour of Generation D regarding their characteristics in order to reach them efficiently with fairer market alternatives. This study will help establish a sustainable relationship between fair trade companies and Generation D.

1.4. Research questions

This research seeks to address the following questions:

1. Who are the people representing Generation D?

• What are their characteristics, psychographic features? What are their buying habits and criteria? What are their feelings?

2. What is sustainable, what is fair?

• What is offered in the marketplace? What or who is missing in the current market? What is going on in the jungle of fair-trade brands?

3. How should a sustainable relationship between the generation and fair-trade brands look like?

• What kind of communication is necessary to reach the Generation D? Is there any possibility of a match between the Generation D and fair trade companies? What changes and solutions are needed in the current market?

1.5. Delimitations

Several studies point out that the most potent target group in the consumption society nowadays are women. Women are the modern consumers, and Martha Barletta (2013) claims that if marketers only focus on this segment, they will as well satisfy men. In Sweden, Generation D is represented by 654 thousand young women (Euromonitor International, 2018). Therefore, this study is delimited towards female students in Sweden who are born in the 1990s and more precisely who live in Östergötland.

The study will not draw generalized statements since it will be based on a small segment. However, it could be possible to generalize it with further research in this field.

1.6. Disposition of the thesis

2.

Theoretical framework

The previous researches and theories have been very useful to understand and describe our society and the way people act and, we can describe our society in those ways. However, through this study, the authors wanted to show another part of our society, another generation and its aspirations. There is a need to understand this generation better to think of marketing strategies compatible with their wants and needs. In this chapter, the theoretical will be presented and will be used later to analyse the empirical findings. The wording “Generation D” will be explained based on the information gathered on Generation Y. A description of the consumer behaviour theories will be done, including the decision-making process, and the AIDA model. Afterwards, a picture of the fair trade concept will be described. Furthermore, examples of marketing strategies are presented, i.e. online and emotional marketing. Finally, a framework summarizing this theoretical chapter will be showed and explained.

2.1. Generation Y to Generation D: the demand

2.1.1. Generation Y – The Millennials

Different studies have been carried out regarding this generation, and especially at the beginning of the twenty-first century. Generally, marketers focus on three main groups when introducing a new product: the baby boomers (born between 1946 and 1964), Generation X (people born between 1965 and 1976) and Generation Y, also known as Millennials, (born between 1977 and 1995) (Armstrong et al., 2015: 82-84). This study is focusing on a part within Generation Y. The market of this generation is essential for marketers since this generation is composed of people who use new technologies and know the digital area very well. Indeed, they grew up while televisions, mobile phones, computers and online social networks were developing (Armstrong et al., 2015: 84). Companies seize this opportunity to adapt their marketing campaigns to this digital world. However, nowadays, there is a lot of marketing campaigns, and people tend to be lost in this information flow. Therefore, marketing departments try to target this segment by creating innovative and new marketing campaigns which will draw attention, better than their competitors. To do so, marketers need to understand their target, and this is more complicated than it looks like.

In Europe, in 2018, Generation Y was represented by 173 million 312 thousand people (Euromonitor International, 2018). This segment represents 21% of the all European market, considering the total population of Europe as 827 million 918 thousand people (Euromonitor International, 2018). It is quite important knowing that the people under the age of 18 are not active buyers and knowing that Generation Y is active and more educated than the previous generations.

Moreover, it is essential to know that marketers tend to divide each generation into smaller groups in order to target them more precisely (Armstrong et al., 2015: 86). Marketers divide people into different segment according to their lifestyle, behaviours and unique characteristics. For this reason, we assume that there is a segment in our society, a part of Generation Y, which needs particular attention: the people born between 1990 and 2000. Indeed, a lot of studies have been carried out regarding baby boomers, Generation X and Generation Y, but these groups are too broad. There is a need to understand these young adults, their buying habits, the way they think, and the impacts of the digital world on them to find alternatives to the current market based on their characteristics. Generation Y have been characterised in different ways. They can be described as individuals who are looking for more knowledge, who care about belonginess, who want time for themselves (free time) and who value their personal goals (Shurden and Niles, N 2012: 64-67). Furthermore, they have a significant technology skill set in comparison to other generations.

Fifteen years ago, Goldgehn (2004) predicted the millennials as a generation who has all the money they want to spend on their free time. She describes this generation of young people as people who care about friendships and less about the future and their savings, in comparison to their parents, the baby boomers. Moreover, she describes these young people as a group that prefers happiness, free time, training, flexibility and non-financial rewards as more important than a high salary (Goldgehn, 2004).

2.1.2. A new segment: Generation D

As said previously, this segment is composed of people born between 1990 and 2000. In 2018, this segment was represented worldwide by approximately 1 billion 195 million young people (Euromonitor International, 2018). In Sweden, Generation D is represented

by 654 thousand young women (Euromonitor International, 2018). They are sensitive regarding the world that surrounds them; the social pressure is constantly guiding them. Indeed, with the increasing use of the internet, awareness messages are easily spread, including through social media and influencers. Online influencers can be considered as opinion leaders. Indeed, an opinion leader is a person who catches information and passes it to others. Thus, it increases the influence of the data. Online influencers have the ability to influence through online platforms such as Instagram or Facebook. They pass information through their online communities, and a viral effect can be created (Uzunoğlu and Misci Kip, 2014). With the rise of environmental and social awareness, online influencers’ messages are an excellent way to spread the word and increase, for example, the number of actions in favour of the protection of the environment. The future is based on the sustainable development, and this generation can make a considerable change.

According to our personal experiences, we assume that this young generation is highly involved in our society and wants to help in its own way. They are in some ways introverts and do not talk about their feelings, but they are also in some ways extroverts when it comes to sharing their life through social media and showing their consumption. Moreover, the wording that we created, Generation D, comes from the words dissatisfaction and disappointment about the current society and the fact that they are the digital natives. Something different is needed for this generation, new market alternatives which correspond to their characteristics.

2.2. Consumer behaviour

To understand this new generation and their buying habits, there is a need to define the concept of consumer behaviour. It is a complex field since it attempts to identify how people behave, think or feel when confronting a buying decision.

Consumer behaviour refers to:

“the processes involved when an individual or groups select, purchase, use

or dispose of products, services, ideas, or experiences to satisfy needs and desires”

There is a lot of different factors which can influence consumer behaviour, including the behaviour of the women of Generation D. Thus, in order to understand the buying decision process of these individuals, companies need to have an accurate description of the characteristics affecting them when buying. According to Armstrong et al., (2015: 151-159),four main factors are influencing the consumer behaviour: cultural, social, personal and psychological factors. Companies cannot control these factors. On the other hand, they need to understand them to gather knowledge on the stimuli in the consumers’ mind and understand how the factors affect the customers’ buying behaviour (Armstrong et al., 2015: 151).

All of these factors can have a more or less significant influence on consumer depending on the personal history and way of thinking. For this study, reference groups, personality and psychological factors are relevant in order to understand Generation D. Regarding reference groups, we can link it with a fact wrote above in this chapter, young generations care about belonginess. A reference group can be defined as:

“an actual or imaginary individual or group that has a significant effect on an individual’s evaluations, aspirations or behavior” (Solomon, 2013: 610).

2.2.1. Consumer behaviour: a process

Consumer behaviour can be seen as a three stages process consisting of a pre-purchase phase, a purchase phase and a post-purchase phase (Solomon, 2011: 32). The buying behaviour is not only when the consumer buys the product, it also includes the process before buying and after buying. In the pre-purchase phase, the consumer is facing different dilemmas regarding the choice of the product, how to get the right information about the products or even the future consequences of the purchase. During the

purchasing stage, the consumer is facing issues regarding the buying experience and what is affecting the purchase. Finally, in the post-purchase phase, the consumer can face problems regarding the use of the products. For instance, the product can perform or not the intended function. The buying process does not always take place as the consumer imagine it to be, different factors influence the buying process.

Another famous process which can describe consumer behaviour is the decision-making process. It is an essential tool to understand consumers and their decisions. It is more detailed than the previous process. Every day, people are facing buying decisions. According to Armstrong et al., the buyer decision process is a five steps process: need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behaviour (Armstrong et al., 2015: 163).

1. Need recognition - the buyer starts by recognising a problem or a need thanks to his fundamental needs (internal stimuli) or his surrounding world (external stimuli) such as talking with a friend or seeing an advertisement.

2. Search for information - after identifying his need or problem, the consumer will search, or not, for information regarding the product which can satisfy his need. If a consumer is interested in a product, he will probably look for further information and start paying more attention to advertisements or conversations about the specific product.

3. Evaluation of alternatives - once the consumer has enough information about the product, he will have to choose among the different alternatives. Sometimes people will have a systematic and logical analysis of the products, and at some other times, they will buy products on impulse or according to their instinct. 4. Purchase - when deciding which products to choose, different factors intervene,

such as the influence of others and situational factors, for example, the expected benefits or the price.

5. Post-purchase evaluation - after the purchase, the consumer will dispose or use the product and see if he is satisfied, or not. If he is satisfied there are higher chances that he will purchase products of this brand or recommend the brand.

The decision-making process can help marketers better understand the consumers and their choices. Thus, marketers can trigger the needs of the consumers to create a want and an intention to buy. It can also help them to understand what is wrong with the actual product and change some characteristic (Armstrong et al., 2015: 168). Based on this process, companies try to promote their products as best as possible to reach and catch the attention of their target group. In order to understand the buying habits of the new generation and to potentially create new market alternatives for them, we need to know their decision-making process. It is also essential to know whether, or not they think in an ethical way while purchasing. However, these stages are not always followed by consumers when buying. For example, the internet is changing the way people are making decisions. Indeed, it is easier and faster to find the right information thanks to search tools on the internet. Moreover, as consumers, we tend to want quick decisions, and thus, buy products that we have already tried and are satisfied with, for example, everyday products (Solomon, 2013: 345).

2.2.2. AIDA model

This thesis purpose is to better understand Generation D in order to be able to create market alternatives. After understanding the consumer behaviour, the Attention, Interest, Desire, and Action (AIDA) model is used in the marketing field to understand the process a person goes through before buying a product, and the effect of an advertisement on the individual (Wijaya, 2012).

The consumer behaviour theories, seen before in this chapter, are a part of this model since to get the attention, generate interest and create desire marketers need to understand the customer. According to the authors of this thesis, the AIDA model can be well defined with this sentence from Edward K. Strong (1925) “Selling from the prospect point of

view”. Indeed, the point of view of the prospect will differ from the point of view of the seller. To make a person take action, marketers need first to fulfil the three first steps. Advertisements are essential in this process, especially emotive and persuasive ones since marketers need to reach the customers and make them buy the product (Dibb et al., 2006).

The AIDA model has evolved over the years; different models and interpretations exist. Initially, advertisements are created to sell a good or a service. However, advertisements can be seen nowadays in a different way. It can “creates meaning towards something” (Wijaya, 2012). Advertising can provide meaningful messages and get the attention of the target group. Communication strategies are, therefore, created to have an impact on consumers in order to make the potential customer to take action and purchase. We can notice a shift of the advertisements’ function. Moreover, some models have included the letter S to the original AIDA model, which corresponds to the Satisfaction of customers. Some researchers also see this Satisfaction phase as a major step in the post-purchase phase since it might represent the “beginning of a new cycle in the communication process” (Bovee et al. (1995) in Wijaya, 2012). Indeed, if a customer is satisfied with the purchase, he might buy from the company again and share his positive opinion.

For this study, this model is relevant when it comes to reaching the generation. First, we try to understand better the generation; then we try to find solutions or alternatives to reach them, with the use of the AIDA model.

2.3. A picture of fair trade companies: the offer

In this section, we use two different words regarding fair trade: fair trade and Fairtrade. Fair trade refers to the concept itself and Fairtrade refers to the global organisation.

2.3.1. The current aspect of the marketplace

Nowadays, with the technological era, there is a proliferation of online marketplaces. It has started in the 1990s with the creation of Amazon and eBay. With this digital world taking a prominent position, companies began to grow increasingly. Therefore, companies started to develop their business outside their original country and opened subsidiaries. Big companies began to gain more and more market shares; thus, it is more complicated for small companies to compete in this jungle of companies. Different

strategies are needed, including differentiation strategies, to enter the market. A market can be defined as

“an actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter” (businessdictionary.com,

2019).

Since the beginning of trade, inequalities exist. However, since the beginning of the XXI century and the rise of ethical awareness, new ways of doing business, more sustainably, have emerged: following a more ethical path. It is important to precise that since the late nineteenth century, consumers are asking for greener products (Boström and Klintman, 2011). On the other hand, the majority of consumers is still buying non-sustainable products. In order to sell sustainable products, marketers need to meet the quality and the price expectations of the consumers. Moreover, even the consumers who say that are willing to pay, will not take the time to buy a sustainable alternative because of the lack of information (Esty and Simmons, 2011: 268). However, the marketplace is changing towards a sustainable marketplace. With the young generation and the willingness to protect our planet, more sustainable market alternatives will arise.

2.3.2. The concept of fair trade and its limits

Trading is essential in our developing world; it keeps alive billions of persons. Nevertheless, since the beginning of humanity, fairness is not always within the exchanges.

A change was needed to help the unprivileged people. Fair trade is a concept created during the twentieth century. It is one of the initiatives which contribute to the sustainable development. Fair trade can be defined as:

"A trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South” (World Fair Trade Organization, 2018).

Fair trade is essential to help the small companies and farms to continue thriving and fight against poverty. Products qualified as fair trade are an excellent alternative to traditional

products. Fair trade sales reached 7.88 billion euros in 2016 (Fairtrade International, 2017) which shows that the demand and the offer are meeting each other.

However, in reality, with the globalisation, the companies from the developed countries benefit more from fair trade than the producers from the less developed countries. Indeed, as Sylla showed in his book (2014), fair trade helps the producers and their families. It protects them from extreme poverty; however, it is not enough to take them out of poverty. On the other hand, it is a marketing success in developed countries. As he showed, there are several dysfunctions in the entire fair trade system. For example, the surplus of profit is not directly distributed to the producers. The intermediaries are the ones who take advantages of it. Thus, the developed world is controlling the developing world. In order to make a change, he suggests redefining the “guiding principles and the philosophy of the [fair trade] movement” (Sylla, 2014). A new fair trade platform is needed to give the producers a real advantage. Finally, the change has to come within the nation. The strength of the inhabitants with the help of their government should ensure a redefinition of trading in their country. Moreover, trade problems are also present in developed countries. Indeed, with the globalisation growth, multinationals have built a strong structure within the global and local market. Thus, it is hard for small companies to compete with these giants. New fair market alternatives are therefore needed, not only in the developing countries but also in the developed countries.

2.3.3. Fairtrade Sverige

Fair trade products were introduced in Sweden in 1997 (rättvisemärkt in Swedish) through the coffee product Café Organico. The coffee beans were imported from one of the first fair trade certified organisation in Mexico, UCIRI (Union of Indigenous Communities of the Isthmus Region) and sold in the Swedish grocery stores. From the beginning, fair trade was a small independent movement with a few products to offer. The Fairtrade organisation in Sweden (Fairtrade Sverige) is today offering several groups of products and has over 3000 different products to offer according to their annual report (Fairtrade Sverige, 2017). The most prominent groups of products from Fairtrade Sverige are coffee, tea, bananas, wine, ice cream and flowers. During several years these products have been the most profitable among other groups of products in the fair trade sector in Sweden (Fairtrade Sverige, 2017).

According to Fairtrade Sverige’s annual report (2017), 95 per cent of people aged between 15-34 recognise the fair trade label when they see it, and 65 per cent of these individuals feel that they know the meaning of the label. Moreover, 7 out of 10 of this group of people believes that giving more money for fair trade products is worth it. Fairtrade Sverige is positive regarding the future of the organisation; young people have more knowledge about fair trade and are purchasing fair trade labelled products regularly. Buying fair trade products becomes more and more trendy in Sweden, especially with the rise of environmental trends (Fairtrade Sverige, 2017).

The organisation Fairtrade Sverige has communication campaigns each year to spread the fair-trade concept. They try to motivate people to be a part of the movement, and they want to raise awareness regarding the bad working and living conditions of farmers and employees in developing countries. They also show the positive effects of fair trade on the poor population by giving examples and sharing pictures. For example, one campaign allows people to be a part of a ''fika'' (Coffee break) challenge. The ''fika'' fair trade challenge is about raising awareness of the concept meanwhile connecting people and companies around a “fika”. For three days the participants have ''fika'' together with only fair trade labelled products (Fairtrade Sverige, 2017). The Fairtrade organisation is nowadays a multichannel organisation. They communicate regularly on Facebook, Instagram, Twitter, LinkedIn, but are most active on the two first named channels. They also send newsletters to their members. However, their biggest channel is their website. The website has approximately 9 125 visitors each month.

2.4. Marketing strategies

First of all, in order to target the right consumer, a company needs to design the appropriate strategy. Indeed, marketers need to identify market segments and develop products tailored to these segments. To be able to find a good way to reach Generation D, there is a need for understanding marketing strategies and processes to reach a desired targeted group. A marketing strategy is

“the marketing logic by which the company hopes to achieve profitable relationships” (Armstrong et al., 2015).

There are three major steps to have an efficient marketing strategy: market segmentation, target marketing and market positioning (Armstrong et al., 2015). The first step is market

segmentation which corresponds to the division of the different buyers into small groups taking into consideration their needs, their characteristics and behaviours to create an adequate marketing mix. The second step is target marketing, which refers to the evaluation of each segment in order to know which one or ones are the best to target. Finally, the third step, market positioning, consists of developing a marketing mix for the chosen segment(s) (Armstrong et al., 2015: 192).

2.4.1. Online marketing

Online, and particularly on social media, is the right place for companies to be nowadays. If they do not communicate through online channels, they might miss the opportunity to connect with consumers and potential consumers and miss the chance to improve their relationships. Create a pleasant online customer experience is essential. According to earlier studies, most companies have an online presence nowadays and use online channels as a tool. In 2017, Facebook was the most used platform, with 1.36 billion active users monthly (Reuter and Spielhofer, 2017). Even if it is a worldwide number, it can perfectly illustrate how much social media are used.

Direct marketing is defined as when a company can engage directly with the targeted individuals, to exchange values and building relationships (Kotler et al., 2017: 511). Online marketing is about using tools like websites, social media, emails, blogs or apps, etc. to connect with customers (Kotler et al., 2017: 511). Since people are connected to online channels regularly and use social media for personal use, the demand for BtoC e-commerce (Business to Consumer) is increasing. Being where the customers are daily, allows the companies to communicate with their customers anywhere and at any time. People can share information online, seek reviews and shop at any time they want. Therefore, it is little doubt that online channels have a high impact on consumer behaviour (Solomon, 2013: 42-43).

A good communication builds strong trust in the relationship between customers and companies. Sometimes the use of social media marketing can be simple as posting a picture that promotes the brand. Nevertheless, companies who are successfully using social media are ‘’integrating a broad range of diverse media to create brand-related social sharing, engagement and customer community’’ (Kotler et al., 2017:513). Indeed, there

is a need for interaction between the different actors, not only between customers and companies but also amongst customers.

When using social media, both advantages and disadvantages can appear, such as every marketing tool. However, the tool is beneficial due to the fact that marketers can target customers with a personalized promotion. Moreover, thanks to the interaction created, companies can directly get feedback from the customers, by using chat tools, analysing their hashtags or even look at their reviews.

However, since the customers are connected at any time, they are exposed to a high amount of information. People cannot store all the information, and therefore, it requires an ‘easy to memorize’ message, to stick out from all the other messages (Kotler et al., 2017). Furthermore, with the fast way of spreading information, the phenomena of word of mouth can easily appear.

Word of mouth (WOM) refers to the influence of

‘’personal communications about a product between target buyers and neighbour, friends, family members and associates’’ (Kotler et al., 2017:661).

Therefore, a satisfied customer is more likely to tell others his satisfaction; for instance, by sharing a picture on Instagram with a nice comment. Word of mouth is not only created by a satisfied customer; a non-satisfied customer can also share his dissatisfaction. The internet version of WOM is Viral marketing.

Viral marketing refers to:

“websites, email messages or other marketing events that are so infectious that customers will want to pass them along to friends” (Armstrong et al., 2015: 611).

If the customer is satisfied with a webpage, posts or videos, he might want to share them with his friends and family. Companies often collaborate with influencers on the internet. An influencer spreads, through their online communities, messages which have a viral effect since they have many followers (Uzunoğlu and Misci Kip, 2014). The collaboration with an influencer helps the company to create attention towards the product and reach out to a bigger target group. Therefore, influencers can be considered as a reference group. Individuals, and especially young people, tend to seek for ‘’advice, guidance or recommendation’’, thus this strategy is effective (Charlesworth, 2002). Although the fast-growing online marketing tools have a lot of benefits for marketing purpose, companies must deal with issues as well, especially regarding online security

and consumer privacy (Kotler et al., 2017: 512-513). Marketers can use personal information from databases. Therefore, marketing can be more precise and can satisfy an individual’s needs and wants. However, some critics claim that marketers have too much information about the customers’ life and may use this to an unfair advantage (Kotler et al., 2017: 512-513). Moreover, a lot of consumers today are worried about online security. They fear that their online transactions and social media postings will be misused or that their personal information and credit cards will be leaked (Kotler et al., 2017: 512-513). Nowadays, consumers do not trust all the messages they see. There is a massive amount of marketing messages every day. It makes hard to know what is authentic or not (Charlesworth, 2015:7).

2.4.2. Emotional marketing

There are several ways a marketer can use emotions to create a powerful message. The message should be unique, relevant and easy to remember. However, a ‘’attention-getting” advertising should include four different elements: ‘’The appeal, the format, the tonality and the creative tactics and techniques ‘’ (Solomon et al., 2018: 454). Marketers often use emotional appeals to help the customer to feel what they would benefit from purchasing and using the product, such as safety, love, excitement, pleasure, respect or approval. According to Solomon, M. (2013):

''the advertisement elements often incorporate elements from art such as dramas, lectures, metaphor, allegories and resonance''.

The idea behind emotional marketing is to create a message through words or pictures to stir up negative or positive feelings. Using emotions in the promotion such as ‘’joy, love, humour, fear or guilt,’’ can attract more attention, desire and interest for the product. Since a customer often feels before thinks in the buying process (Kotler et al., 2017: 416). A good example is the use of the fear appeal in the car industry and as well in the health sector. The use of fear allows the company to show the customers the negative outcomes if they do not purchase this kind of product. Sometimes it is an excellent method, and sometimes it is a poor method. Several studies have shown that customers tend to tune out when a negative message offers a solution to a problem (Solomon, 2013: 302-304).

Moreover, some products such as candy or chocolate tend to help the customer to feel better. Thus, with emotions, marketers need to be careful. A message ‘’who is used poorly’’, can be a disaster for the company, it can take all the focus from the product instead of combining it with it (Kotler et al., 2017).

2.5. Synthesis of the theoretical framework

This part is presenting a model that we have created based on the theories described in this chapter. The model explains how the different theories of the theoretical framework have been combined. Some of the theories used in the theoretical framework are not used in this model. However, they are useful to understand the research entirely. The purpose of this study is to understand a specific segment, Generation D, and approach this segment with fair market alternatives. The framework that we have elaborated, help to have a clear vision of the different steps to go through to understand how companies and customers meet. It is based on consumer behaviour theories and on marketing strategies theories to see and understand both sides of the marketplace: the consumers and the companies. It is essential to keep in mind that the relationship between companies and consumers is not a one-way process; the way changes depending on multiple external and internal factors.

Figure 3: The meeting of the offer and the demand (authors' creation)

In order to find appropriate market alternatives for the study’s segment, there is a need to understand consumer behaviour when it comes to purchase a product. There is also a need regarding the marketing approaches of the companies and how they try to reach their target segment. Hereunder, we have detailed each part of the framework: the marketplace, the consumers, consumer behaviour, companies and their marketing strategies.

The marketplace

The marketplace is the meeting place between the consumers and the company. Indeed, consumers are looking for products to satisfy their needs and wants, and companies are offering products answering these needs and wants. It is where the concept of supply and demand takes place.

Consumers

Consumers need to be seen as individuals, not only as persons who purchase products. Companies need to understand them. Every individual has biological needs, and every individual has different factors influencing them. Therefore, everyone has a different way of thinking, purchasing or consuming. Some individuals can have similarities regarding their lifestyles, consumption, culture, way of thinking, etc. Thus, marketers create segments according to the different features to target consumers effectively.

Consumer behaviour

To gain a better understanding of the chosen segment, companies need to understand the decision-making process of the target group. The process is essential to understand consumers’ behaviour, how and why they act. Everyone acts in their own way depending on cultural, social, personal and psychological factors. It is essential to understand what drives the individuals to buy and what impact their decision.

Company

Companies need to understand their chosen customer segment perfectly in order to be able to offer adequate products. It is essential if they want to sell their products and thus survive in the global market. The AIDA model, used to create attention, interest, desire and action for the customer towards the product, is a good tool to understand the process a person goes through before buying a product.

Marketing strategies

There is a need to understand better how companies use marketing strategies to reach the appropriate target. Once the use of marketing strategies is explained and detailed, we need to look at the possible way to reach customers. There is a lot of different ways to reach customers, for instance, with online marketing or emotional marketing. Hence, this study will try to find a suitable way to reach Generation D through fair trade. To do so,

companies need to understand consumer behaviour in order to know how they buy, why they buy, what they buy, etc. Thereafter, companies can develop an adequate marketing mix and target their target group efficiently.

3.

Methodology

In this section of the thesis, we are discussing different methods and our selection of the method to use in this study. We will discuss the relevance, tools, methodology to obtain the right strategy that allows us to further investigate the consumer behaviour among young females in Östergötland. After reading different articles and books, we noticed that a more precise analysis of Generation Y was needed. Consequently, we noticed a lack of market alternatives for the part of Generation Y. Several questions were raised, and one of the solutions to answer them is to lead market analysis through empirical methods. In this chapter, traditional research methods will be introduced. Furthermore, the chosen method, i.e. mixed method research, is presented. Thereafter, a precise description of the data collection will be carried out. Finally, this chapter will be concluded with the limitations of this study from the authors perspective.

3.1. Research approach

3.1.1. Inductive vs deductive approach

In order to carry out this research, we used at some point theories to structure and guide our data collection. The relationship between theories and research is crucial. There are two main ways to apply theories in a research: by following a deductive theory or an inductive theory. A deductive approach consists of deducing hypotheses, thanks to the examination of existing theories and knowledge of a particular field and carry out an empirical study to answer these hypotheses. On the contrary, an inductive approach refers to the fact that the theory is the outcome of the research. Indeed, with this approach, the point is to draw deduction out of an observation phase (Bryman and Bell, 2011: 11-13). First, our theoretical framework helped us to develop our hypothesis. Then, this same theoretical framework and the hypothesis were needed to design our method and collect our data. And finally, with our findings, we will be able to confirm or reject the hypothesis. Therefore, we can say that we are following a deductive approach.

3.1.2. Qualitative vs quantitative methods

In order to have a coherent method, we used the book Business Research Methods (2011) written by Bryman and Bell where quantitative and qualitative methods are explained in detail. In their book, they start by describing in the first chapter both quantitative and

qualitative methods to give an overview of them to the reader. Therefore, we based our work on those two definitions.

A quantitative research is defined as:

“a research strategy that emphasizes quantification in the collection and analysis of data and that:

• Entails a deductive approach to the relationship between theory and research, in which the accent is placed on the testing of theories;

• Has incorporated the practices and norms of the natural scientific model and of positivism in particular; and

• Embodies a view of social reality as an external, objective reality.” (Bryman and

Bell, 2011: 27)

Contrary to a quantitative research, a qualitative research is defined as:

“a research strategy that usually emphasizes words rather than quantification in

the collection and analysis of data that:

• Predominantly emphasizes an inductive approach to the relationship between theory and research, in which the emphasis is placed on the generation of theories;

• Has rejected the practices and norms of the natural scientific model and of positivism in particular in preference for an emphasis on the ways in which individuals interpret their social world; and

• Embodies a view of social reality as a constantly shifting emergent property of individuals’ creation.” (Bryman and Bell, 2011: 27)

A qualitative method is used for a better

“understanding of the social world through an examination of the interpretation of that world by its participants” (Bryman and Bell, 2011: 386)

3.2. Chosen method: mixed method research

For the choice of method, a triangular approach, which is a mixed method research, will be used. A triangular method refers to the use of different methods which are combined in the same research. For example, a study can base its research on a qualitative research

and collaborate the results with a quantitative research or ‘’vice versa’’ (Bryman and Bell, 2011: 632).

The use of mixed methods has increased over the years in the area of business researches. Due to this regular use, the credibility of this method is strengthening (Bryman and Bell, 2011: 630-631). This approach allows the researcher to both analyse and understand specific behaviours or attitudes. Moreover, the triangulation approach can be used to cross-check the results of a method, from one research strategy with the results of a method from the other research strategy and compare them (Bryman and Bell, 2011: 631). A quantitative method provides specific and accurate data and a qualitative method helps to understand better why an individual act the way he acts and help understand complex perceptions (Bryman and Bell, 2011: 633). A mixed method research allows the researchers to look deeper into a specific subject or environment due to its flexibility. We have decided to choose this method to carry out our research since it provides us with a more in-depth analysis of the consumers regarding his consumption behaviour. Indeed, understanding consumer behaviour is a complex field which requires deep researches.

In order to reach our target, we chose first to use an online survey, a quantitative method, and after to lead semi-structured interviews, a qualitative method. Indeed, using a qualitative method can help to confirm the findings of a quantitative method. A quantitative method can prepare the ground for the qualitative method (Bryman and Bell, 2011: 635). This mixed method is, according to us, the best way to approach the segment which is composed of Swedish women aged between 20 and 30 years old. Indeed, these two methods will help understand them and their preferences regarding market alternatives and fairness.

3.3. Data collection

Firstly, we decided to carry out observation in two fair trade shop, in Östergötland, to look at the inside and outside structure of the shops and take notes. During this observation phase, we also asked a few questions to the volunteers who manage one of the shops. Secondly, the online survey will help analyse the consumption behaviour of our segment. It will help understand better this segment, their need for change, their buying habits and their values. Finally, semi-structured interviews will be used for

analysing the needs and wants of Generation D and try to see which market alternatives suit them the best. Semi-structured interviews are helpful to get the interviewees involved since a conversation is engaged between the interviewers and the interviewee. The use of a qualitative method after the use of a quantitative method will provide us with in-depth insights. We give more importance to the qualitative results since it provides us with detailed answers. In the analysis chapter, we will merge the results of these three methods.

3.3.1. Observation in shops

In order to better understand the market and to gain more knowledge about fair trade, we visited two fair trade shops based in Östergötland. The purpose of these observations was to help us better understand the marketing mix of fair trade products and be able to base our survey on our findings. It was a structured observation; before entering the shops, we already had prepared a criteria checklist. We looked at the location of the shops, their range of products, their disposition, the prices, and the display in the shop.

3.3.2. Online survey

Consumer behaviour is a complex field which requires to understand how an individual behaves and thinks regarding a purchase. There are several ways to research on consumer behaviour. However, we decided to use a web survey in order to capture opinions and attitudes. A web survey operates

“by inviting prospective respondents to visit a website at which the

questionnaire can be found and completed online” (Bryman and Bell, 2011: 662).

The purpose of doing a survey for our study is to better understand Generation D’s feelings, personality and buying habits. The data collected is not meant to generalize the behaviour of young Swedish women. However, it will help validate or not our hypothesis regarding the need to understand Generation D. At the beginning of the survey, the respondents were asked if they want to be interviewed to talk more about this topic. The survey will focus on buying habits and personality to understand the respondents' needs and wants.

Here is a list of the advantages and disadvantages of doing online surveys:

Advantages

• Method with low costs • Fast answering time

• Easy to access our target group, a young generation who use online channels regularly

• Answers not biased since they do it on their own, there is no interviewing effect • The comparison between answers is relatively easy

• Use of a language understandable by everyone

Disadvantages

• No direct conversation with the respondent • Length of time: maximum 20 minutes

• No control over the answers, no control over who is answering • Not able to explain more if there is a lack of understanding

• The participant can see all the questions and adjust his or her answers

Pilot study

Conducting a pilot study is desirable in order to see if the questions and the online platform operate well (Bryman and Bell, 2011: 262). Before administrating the survey, we asked four different persons to test it to provide us with feedback regarding the overall survey. Thus, mistakes and misinterpretations have been corrected.

Survey structure

This survey contains three parts and nineteen questions. First, we introduce ourselves and explain the purpose of the study. Then, we told them the ethical consideration that we follow when talking about data collection. We informed the respondents on how we were going to process their data according to the European Data Protection Regulation (GDPR). In the first parts of the survey, three questions were asked regarding demographics. In the second part, nine questions were asked concerning the buying habits of the respondents and their fair trade products consumption. The last part contains seven questions and concern communication aspects and their opinion on the fair trade concept. It is important not to have a lot of open questions since it can discourage the respondents

from answering. However, two questions out of nineteen were open questions. We wanted to know about their feelings and thoughts.

Administration of the survey

Furthermore, to administrate the survey, we created a questionnaire with the use of Google Forms. Google Forms is an online survey tool which is used to collect data. It is an easy tool and free of charge. In order to let the respondents answered freely, we translated the questions in Swedish. Moreover, except for the demographic questions, none of the questions was mandatory. We wanted them to feel free while answering this survey.

3.3.3. Semi-structured interviews

A semi-structured interview refers to:

“a context in which the interviewer has a series that are in the general form of an interview schedule but is able to vary the sequence of questions” (Bryman and Bell,

2011: 205).

The semi-structured interviews are useful to understand in-depth the young Swedish women attitudes and values but also beneficial to find innovative and fairer market alternatives according to their values, tastes and buying habits. The interviewees can discuss the subject and express their feelings and thoughts freely. It can result in interesting and innovation data.

Here is a list of the advantages and disadvantages of doing semi-structured interviews:

Advantages

• Ask opened questions • Have spontaneous answers • Individual/personal answers

• Segment representation, know who is interviewed • Flexibility

Disadvantages • More costly

• Take time to do and analyse

• Can be influenced by the interviewer (the interviewer effect)

o The interviewee can say what he thinks the interviewer wants to hear

Structure of the semi-structured interviews

In order to carry out our interviews, we select our interviewees according to their gender, women, and their age, between 20 and 30 years old. Moreover, before setting up a meeting day, we also asked if they usually buy fair trade products. When invited our interviewees, we explained them our research topic and the ethical considerations such as protection of data (GDPR), being anonymous or feeling free to answer or not. Then, we asked them where they wanted to be interviewed depending on their schedule and the environment which suits them the best. Before starting the interview, we wanted to make them feel secure. Thus, we talked about life in general. To collect their answer, we took notes. In total, ten questions were asked. We based the questions on the answers from the survey and on psychographics characteristics (values, interests, behaviour, attitudes, opinions) to identify what Generation Ds psychographic profile is. Since it was semi-structured interviews, we had the freedom to ask more in-depth questions if needed, depending on their answers.

3.3.4. Participants selection

70 persons answered our online survey. However, only 28 persons corresponded to our target group. The profile of our target group is a woman aged between 20 and 30 years old. In order to carry out this research, we based our analysis on 28 persons who answered the online survey and 4 persons who participated in the semi-structured interviews. We thought that it was necessary to do at least 4 semi-structured interviews and to have at least 30 persons answering the online survey to have credible data. 28 respondents for the survey was the closest number of respondents we could get.

3.4. Limitations of the study

3.4.1. Choice of method

There are several other methods we could have chosen for our research. We could have only focused on only one method due to the time limit. It would also have been easier to collect and analyse. Moreover, it is hard to generalize this study to other contexts since only 28 individuals answered the survey and 4 individuals were interviewed. Even if it is complicated to send the survey to an entire population, with more time, more respondents could have been found. Sample, the population, was needed.

In the response analysis of the survey, we did find out that we had a small amount of both external and internal fallouts. We could have made the questions easier to understand to secure internal fallouts. We did a pilot study of the survey in order to correct these types of problems, but apparently, it was not enough. Another explanation could be that the questions were too similar. The respondents could also have found the survey too long and thus, get bored. For the external fallouts, we could have reminded the participants more often to answer the survey. Finally, the survey was written in Swedish; and, the interviews were carried out in English. Thus, it might have been difficult for our respondents to express their opinions and feelings fully. Doing the interviews in Swedish might have been better for the respondents.

3.4.2. Quality of the research: validity and reliability

The use of a mixed method research, which in this study combined an online survey and semi-structured interviews, offers most of the time valid and reliable results since it is double checked (Bryman and Bell, 2011: 397). However, the concepts of validity and reliability differ according to the method used. Indeed, if the study focuses on a quantitative method, the validity and reliability of the study are essential since it is focusing on measurement. On the other hand, if the research focuses on a qualitative method, the reliability and the validity of the study is not the main concern. Over time, researchers changed their point of view and started introducing new wording similar to the concept of reliability and validity to adapt these words to qualitative researches. Validity is describing as the strength of the research collection; it is the most important criterion of a research according to Bryman and Bell (2011). For quantitative methods,