SUSTAINABLE BUSINESS DEVELOPMENT PERSPECTIVES

Ethnocentrism of Slovak consumers in Relation to Sustainable Products

Eva Smolková ¹ , Lucia Vilčeková ¹

¹ Faculty of Management, Comenius University Bratislava

https://doi.org/10.5817/CZ.MUNI.P280-0197-2022-22

Abstract

Slovak consumers have changed in the last decade. Their consumer behaviour has been heavily influenced by EU marketing campaigns aimed at consumer environmental literacy, as well as by government authorities aimed at increasing the share of domestic production on store shelves. The aim of this study is to analyse results of representative marketing research that relate to the consumer behaviour of Slovak consumers when shopping in general and also shopping for Slovak products. One of the goals of the research was also to verify the functioning and effectiveness of those business strategies that emphasize environmental values and the sustainability of production. The results have shown the environmental values that companies have adopted and the goals that they have incorporated into their strategies are bearing fruit. It turns out that Slovak consumers, and this applies to all generations of consumers, have realized in the last 10 years the need to take environmental criteria into account when buying products and are of the opinion that Slovak products are less harmful to the environment than foreign ones.

Keywords : Slovak consumers, ethnocentrism, sustainable products

1 Introduction

Businesses have identified the need to incorporate sustainability principles into their marketing strategies and have identified with environmental values several years ago, when it became clear that not only the political environment was putting pressure on environmental strategies, but this pressure was also evident from consumers. In companies, including the Slovak ones, concepts of eliminating environmental burdens, strategies for the circular economy and reducing the carbon footprint began to emerge. However, visions of waste-free technologies were also born. In order for companies to verify the correctness of environmental goals, they needed insights into consumer behavior preferences. Over the last 10 years, Slovak consumers have started to buy and actively look for Slovak products that meet strict environmental criteria.

The aim of the study is to analyze results of representative marketing research that relate to the consumer behavior of Slovak consumers when shopping in general and also shopping for Slovak products. One of the goals of the research was also to verify the functioning and effectiveness of those business strategies that emphasize environmental values and the sustainability of production. The range of products on the market today is very diverse. It is therefore necessary to know whether consumers buy products that match their preferences, whether consumers with environmental values identify what they consume and to what extent the environmental preferences of consumers play a role. In the interpretation, we also identify differences in the generations of Slovak consumers in the preference of products that meet environmental criteria.

2 Consumer behavior in the context of environmental values

The consumer decision-making process is one of the most dynamic processes because a large number of factors are involved in decision-making. Consumer preferences influence this process to the most extent ( Shareef, Mahmud , Dwivedi, Kumar, 2016). Consumer behavior is very difficult to measure, it is a "summary of consumer decisions on the acquisition, consumption and disposal of products, services, activities, experiences, people and ideas of decision-makers (consumers)" ( Hoyer,et al, 20201). Consumer preferences relate to certain characteristics that the consumer seeks in the goods or services purchased. At the same time, they are the main factors influencing consumer demand to make it clear which products and services have the highest demand and what the future consequences may be ( The Economic Times). Consumer preferences are the main reason why consumers prefer one product over another, they are a comprehensible reason that allows for correct targeting of a selected customer segment and addressing the consumer. Of the questions that allow us to better understand the consumer in this context, we will be particularly interested in what factors determine consumer reactions (East, 2017)? Consumers make decisions based on the values with which they identify and which they profess, which in turn influence their preferences and requirements. Previous experiences, recommendations from acquaintances, friends, celebrities or influencers and other suggestions also enter the decision-making process. Consumers also make decisions based on the incentives chosen by the manufacturer or seller through marketing communication, and very often also on the country of origin of the product. The authors of the Mobile Marketing Channel tried to identify the influence of individual factors on future consumer decision-making ( Shareef, Mahmoud, Dwivedi, Kumar, 2016) , who divided the factors influencing consumer behavior into four main points.

1. Internal consumer beliefs and attitudes arising from the psychological, sociological and socio-anthropological point of view.

2. External factors influencing consumer shopping behavior. These are marketing and economic impacts.

3. External environmental market settings and related parameters such as ethical issues, sustainable environmental issues or globalization issues.

4. Consumer behavioral changes due to changes in consumer perceptions, attention, beliefs, attitudes and behaviors. These changes are due to information and communication technologies. ( Shareef, Mahmud, Dwivedi, Kumar, 2016) .

As can be seen from the above, all of the above points are directly or indirectly related to the environmental factors to which we pay attention in this article. Undoubtedly, there is a difference between what the consumer prefers and what he actually buys. Who among us would not want to buy only healthy foods and products whose production does not affect the negative environment?

Our attention is focused on consumer behavior, so we must also reflect the stages of the consumer's shopping cycle. All are directly dependent on marketing communication. The first contact with the company is, usually conditioned by the product offer, pricing, method of communication and product availability. Subsequently, however, not only the characteristics of the product themselves enter the process – the brand and image of the company that offers the product, but also the country of origin of the product. The availability of products, the experience of other consumers, ie references to the product, said in the language of marketers, customer satisfaction with the product and its use play an important role. At present, it is not enough just to attract a potential person interested in a product, it is necessary to "turn" it into a consumer and an optimally loyal consumer who will buy a product or products under the same brand repeatedly. However, this is not possible if the product has not met consumer expectations.

2.1 Ethnocentrism of Slovak consumers

If we have so far dealt with the company's brand and environmental values in relation to the brand, it is also necessary to point out that it is not only who produced, cultivated or provided the service that enters the purchasing decision-making process. The country of origin of the product also plays an important role. The customer is offered products from various companies from different countries of the world. Wanting the consumer to perceive the country of origin is always linked to the need to point out that the country of origin can be perceived as one and even a key element of the brand. This helps the consumer to associate the brand with a specific country. Sometimes the origin of a product can create a barrier to trade in goods and services within or between countries. Consumer preferences for foreign and domestic products may be affected by:

1. confidence in foreign products, especially from the portfolio of established brands,

2. distrust of foreign goods and services, ie consumer ethnocentrism, preference for products originating in the consumer's country of origin.

From a marketing point of view, not only the product itself but also the image of the country of origin of the product play an important role in the process of consumer behavior. The country's image can be seen as a tool relevant to shopping behavior, which can be used as a driving force for the sale of its products. Consumers use the image of the country of origin of products as a means to evaluate them, assess product characteristics but also the capabilities of businesses and brands. Associations associated with the name (brand) of the country can help the consumer to orient and apply information about the country of the product, its quality, benefits, promises and values, including environmental ones. This picture determines the perceived quality of a country's exports as well as the type of goods that a particular country focuses on. Consumers can also generalize their views and opinions on a country's products based on their knowledge, general characteristics and past experience. As an example we can mention e.g. Japanese technology, German precision and the like. It is important for traders to examine such associations linked to the country of origin in order to determine basic consumer attitudes, create or modify product value or even ensure that goods produced in one country are assembled in another, which will have the final products label. For example, products labeled Made in Germany or the US are generally accepted more positively than those labeled Made in Bangladesh or China.

If we were to think about what unites the brand of the country of origin Slovakia in the minds of consumers, we will probably be embarrassed. This brand can still be described as not fully profiled. It can be stated that it has been intensively built (more precisely, it would be sought) for almost 30 years. Nevertheless, it is not possible to say that it meets the characteristics of the newly created brand, as it still uses the connection to the Czechoslovakia brand and can draw from it. Slovakia is perceived by a large part of consumers as a member of the European Union, which can be considered a competitive advantage. The EU has paid close attention to giving individual Member States the space to build their own brand - a rotating EU presidency and the possibility of accompanying marketing activities. It has made considerable efforts to ensure that products with national characteristics have the right to a country trademark. The reason was to protect products originating in the EU, but the result was to strengthen the brands of the Member States of the Union and to build the basic characteristics of the countries of origin of the brands. If it succeeded in some segments, it was mainly agricultural products, food and beverages. The country brand therefore plays an important role in the purchasing behavior process. There are many reasons for favoring domestic production and it may be conditioned by several factors. Given the subject matter of the article, we will also consider that these include the environmental preferences of consumers. We are not naive and we know that ethnocentric behavior is often conditioned by ignorance, distrust, even rejection or prejudice towards a particular country (Torres & Gutiérrez, 2007). This also applies to all brands of goods in relation to the brand o f the country of origin. Consumer ethnocentrism can therefore be understood as the belief of consumers about the unsuitability of buying imported products, the purchase of which can cause problems for the domestic economy - the loss of sales of domestic products or jobs. The level of ethnocentrism is often higher the more noticeable the influence of foreign competition. Buying a product made outside the consumer's home market can raise concerns about the deteriorating economy and consequently the living standards of the population. The people of the country are often encouraged by politicians to buy products of domestic origin and at the same time to favor ethnocentrism as the idea according to which they will behave in their shopping behavior. We have tried to suggest that one of the key reasons for ethnocentric consumer behavior is the environmental preferences of customers. There are several factors that a consumer with such preferences takes into account when buying products, namely

1. carbon footprint of the product and the company. The carbon footprint is always smaller for products that are distributed over short distances

2. recyclability of the product and often also its packaging - purchase with regard to the degree of future environmental burden - waste-free technologies are optimal.

3. corporate strategy of the circular economy.

Of course, we are aware that not all ethnocentric consumers also take environmental factors into account. Many see ethnocentrism only as a reflection of nationalist ideas in shopping behavior and do not have environmental preferences. However, those who have them are looking for information about such product features and leaving a digital footprint that identifies how the number of people looking for information about these factors is rising. At the same time, analyzes of pro-environmental behavior show that the number of consumers with such preferences is growing.

3 Methods

The aim of the study is to analyze those results of representative marketing research that relate to the consumer behavior of different generations of Slovak consumers when buying products of companies in general and Slovak products in particular. One of the aims of the research was also to verify the functioning and effectiveness of those business strategies that emphasize environmental values and the sustainability of production.

The marketing survey, the partial results of which we will focus on in the next section, was conducted in the Slovak Republic and was conducted in the period from 2 to 7 December 2020 with 1000 respondents. It was a survey in which only respondents over 18 years of age participated. There were 30 statements in the questionnaire, with which the respondents had to express the degree of agreement, resp. disagreement. The questionnaire also included questions focused on the socio -demographic characteristics of the respondents.

From the 30 statements, we selected 4 for the needs of this study, which are directly or indirectly related to the researched issue and we put them in relation to the age of consumers. This is not to say that the other issues do not concern the issue. The questions mentioned were:

1. I am willing to pay more for sustainable products

2. The purchase of Slovak products has a smaller impact on the environment

3. I trust more brands that emphasize sustainable development

4. I notice the country of origin of the products I buy / age

4 Research results

The knowledge that products produced or grown with respect to the environment are more expensive resonates in the population. Accordingly, the question has been formulated whether a particular consumer will reach for a product that meets strict environmental criteria. As can be seen from the table 1, members of the older generations over the age of 50 and 60 were positively surprised, and as expected, other generations tend to agree that such products need to be paid extra, which really means that they have a higher price on the market. It is also possible to evaluate positively the very small percentage of respondents who could not take any position on the issue. Less than a third of respondents in all categories tend to disagree with the need to pay extra for such products. They are very likely to be based on the assumption that such products should be price comparable or on the assumption that all products on the market should meet environmental criteria.

Table 1

I am willing to pay more for sustainable products/age

The next question was asked with the knowledge that the consumer knows that some consumer products, e.g. electronics, textile products, mobile phones and many other products are not produced in Slovakia. Therefore, it is necessary to perceive the answers with regard to the profile of Slovak production and the shopping cart of the Slovak consumer, who in the given context perceives food production more. Research results can be seen in Table 2 below. However, as we have already indicated, the majority of the population perceives the length of the distribution channel also in terms of carbon footprint and it is possible that the other aspects we mentioned, waste technologies, recyclability of the product itself and packaging are taken into account by consumers when buying products. This is also evidenced by the greater degree of agreement with the statement, although this is mostly related to the "rather agree" answer. However, almost 20% of the population do not know how to comment, which also means that they do not seek this information or their country of origin is simply not interested in the product.

Table 2

The purchase of Slovak products has a smaller impact on the environment/age

The answers we obtained from the research clearly confirm that brands that present environmental values and implement environmental strategies appeal to the entire population (see table 3). Responses that agree agree to reach 70% of the population, which is in line with the assumptions we have made in the theory that the growth of consumers with environmental preferences is growing and this group of consumers will also consider the environmental aspect when buying products. On average, 20% of respondents did not present a dissenting opinion, which is not even a quarter of the population.

Table 3

I trust more brands that emphasize sustainable development/age

5 Discussion

The issue of environmental preferences of Slovak consumers is one of those we have encountered intensively in recent years. In the past, Slovak consumers were confronted with the demise of many established brands and a small percentage of Slovak products on store shelves. They didn't even have a real chance to become what is called consumer patriotism. Consumer ethnocentrism also depends on the share of domestic production in comparison with foreign products, and as we have stated, there are sectors where the share of Slovak production is very small or even non-existent, which is why many goods that Slovak consumers have to buy from abroad. However, the Slovak consumer has changed in the last decade. It follows different criteria than years ago. It has been heavily influenced by EU marketing campaigns aimed at consumer environmental literacy, as well as by government authorities aimed at increasing the share of domestic production on store shelves. It can be simply said that in recent years the need for ethnocentrism and environmental literacy of the Slovak consumer has been intensively communicated. Businesses began to present their own environmental strategies as they identified the need to promote sustainability principles. They had to present themselves with environmental values not only because they needed to adapt to current legislation but also because it became clear that not only was the political environment putting pressure on the implementation of environmental strategies, but that this pressure was also evident on the part of consumers. According to current consumer behavior research, the results of which we have processed, approximately 70% of consumers of all generations are brand-oriented when buying products, both the brand of the company and the brand of the country of origin of the product. And it is with brands that they pay attention to sustainability criteria. Of course, we are aware that not only internal, corporate factors, but also external ones - manifestations of climate change and environmental devastation - affect the need for environmental goals at the level of companies as well as states or supranational institutions.

The environmental values that companies have adopted and the goals that they have incorporated into their strategies are bearing fruit. It turns out that Slovak consumers, and this applies to all generations of consumers, have realized in the last 10 years the need to take environmental criteria into account when buying products and are of the opinion that Slovak products are less harmful to the environment than foreign ones. The promotion of ethnocentrism has borne fruit.

The aim of the study was to analyze those results of representative marketing research that concerned the consumer behavior of different generations of Slovak consumers. However, it turned out that all generations of Slovak consumers also consider environmental criteria when buying products, although, of course, not to the same extent. However, the intergenerational differences are relatively small, so it can be stated, based on the respondents' answers, that without the consumer, it requires environmental strategies and subordinates its purchasing behavior to the principles of sustainability.

Acknowledgement

The contribution was written within the grant project VEGA 1/0737/20 „Consumer literacy and intergenerational changes in consumer preferences when buying Slovak products“

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Corresponding author

Eva Smolková

Faculty of Management, Comenius University Bratislava

Odbojárov 10, 82005 Bratislava, Slovak Republic

eva.smolkova @fm.uniba.sk