RCCPB Working Paper #36 October 2014 Chinese Consumers’ Ethical Consumption: Between Intent and Behavior Deng Xinming IU RCCPB Visiting Scholar & Associate Professor School of Economics & Management Wuhan University [email protected] ©Research Center for Chinese Politics and Business, 2014 Abstract Consumers' ethical shopping behavior is very complicated. There is an apparent gap between intent and actual behavior. Through two approaches the paper analyzes the factors preventing consumers from translating their stated ethical intentions into actual ethical buying behavior. The first type of data draws on in-depth interviews and identifies 6 personal consumer and 5 shopping situational factors impeding the transformation from consumer’s stated ethical intentions into actual ethical behavior. The second dataset is based on questionnaires from 1,000 consumers to test the adaptability of those personal and situational factors identified in the interview data, and investigates the moderating effects of these factors on the relationship between intentions and behavior. The findings show that among those personal factors, moral maturity, economic rationality, buying inertia, cynicism, and ethical cognitive efforts all have a significant moderating role on the relationship between ethical intentions and action. All of the situational factors moderate the relationship between intention and action. Finally, the paper develops an overall theoretic framework for consumers’ ethical decision-making process, which can provide insight into how to motivate consumers to support a firm’s ethical behavior and to transfer this kind of support into truly positive purchasing behavior. Dr. Deng Xinming is a visiting scholar at the Indiana University Research Center for Chinese Politics & Business (RCCPB) and Associate Professor in the School of Economics and Management at Wuhan University, Wuhan, China. Prof. Deng may be reached at [email protected]. Introduction In recent years, ethical consumption has been growing rapidly (Bray, Johns, Kilburn, 2010; Berry&McEachern, 2005; Davis, 2006). In 2007, growth in global sales of products endorsed by the Fairtrade Labelling Organizations International (2007) had reached 47%. A longitudinal study by the Co-operative Bank reports that sales of ethical goods rose between 2004 and 2007 at around 12% a year, reaching£35.5 bn in 2007 (Clavin, 2008). However, empirical evidence suggests that while increasing numbers of consumers have absorbed and are motivated by the values of ethical consumerism, a change in consumption behavior is much less apparent (Carrington, Neville, Whitwell, 2010; Chatzidakis et al., 2007; Arvola et al., 2008; Vermeir and Verbeke, 2008). When facing the cash register, stated intention of ethical consumption seldom translate into actual purchasing behavior (Auger and Devinney, 2007; Carrington, Neville, Whitwell, 2010; Belk et al., 2005; Carrington and Attalla, 2001; Shaw et al., 2007). For instance, Roberts (1996) and Simon (1995) determined that although consumers do have a sense of ethical responsibility, no more than 20% engaged in true ethical consumption in the last year. It was no wonder that Macalister (2007) pointed out directly that such growth patterns undoubtedly show great potential, but that sales in this area still represent less than 6% of the overall consumer market of some £600 bn. As a matter of fact, the above statements fully demonstrate that the consumers’ ethical shopping process is very complicated (Nicholls &Lee, 2006; Kim et al., 1997; Bray, Johns, and Kilburn, 2010). Further, in exploring consumer’s responses to a firm’s ethical actions, Deng (2012) found that about 44% of consumers will respond to companies’ ethical actions positively. However, only 12% of them will produce real purchasing action, which means that nearly 32% of consumers will say one thing but do another. In fact, the gap between intentions and behavior has far-reaching effects on enterprises’ ethical marketing activities. The development of cultures surrounding ethical and/or moral consumerism will inevitably attract the attention of enterprises seeking to meet the demands of all stakeholders, including ethical consumers (Carrington, Neville, Whitwell, 2010; Polonsky, 1995). Therefore, marketing strategies with ethical orientation are widely being adopted to tap into potentially profitable ethical market segments and to promote the ethically responsible and environmentally sustainable credentials of products, brands, services and/or corporations (Carrington, Neville, Whitwell, 2010). However, if firms make production and investment decisions simply based upon consumers’ ethical purchase intentions, costly failures would likely result. Therefore, understanding the ethical decision-making process, especially the gap between what ethically minded consumers intend to do and what they actually do at the point of purchase, and understanding how to close this gap are an important academic, managerial and social objectives. Although studies about ethical consumption in recent years have clearly increased in 1 number, they have seldom paid attention to the factors leading to this gap (Bray, Johns, Kilburn, 2010; Auger, Devinney, 2007; Carrington, Neville, Whitwell, 2010, etc.). Though a few scholars’ studies did explore this issue such as Areni & Black (2008), and Carrington, Neville, & Whitwell (2000), their study was still at the exploratory stage and based only on qualitative methods. This article attempts to make a contribution to ethical decision-making theory in the Chinese context based on the combination of qualitative and quantitative data. Understanding the intention-behavior gap of ethically minded consumers offers a rich marketing platform on which to build an effective strategy. Only when corporations understand these issues can they take more initiative in relevant marketing activities and be more purposeful in the implementation of ethical marketing strategies. Literature Review Ethical decision-making is a very important issue in the field of corporate ethics. The emergence of a large number of theoretical models has promoted the development of descriptive ethics (empirical ethics) (Jones, 1991; Rest, 1986; Trevino, 1986; O’Fallon & Fallon, 2005). These models are almost based on the four-stage theoretical framework of ethical decision-making proposed by Rest (1986), and have mainly verified the influencing mechanism of personal factors, such as moral cognition and demographic characteristics (e.g. gender and education level et al.), and the effect made by environmental factors including moral code, moral climate and moral culture on corporate ethical decision-making. However, within the field of ethical consumerism, theory development is still at its early stages (Carrington et al., 2010). An established and widely accepted theoretical framework for the decision making of ethical consumers is yet to be developed (Fukukawa, 2003), among them, the models most frequently applied and modified to understand the purchase decision-making process of the ethically minded are the theoretical frameworks of “reasoned action” (Fishbein & Ajzen, 1975) and “planned behavior” (Ajzen, 1991; Chatzidakis et al., 2007; De Pelsmacker & Janssens, 2007; Vermeir & Verbeke, 2008). Because the theory of reasoned action can’t account for those behaviors without volitional control, Ajzen (1991) proposed the theory of planned behavior (TPB), positing that behavioral intention will be expressed in behavior only under volitional control. In their modifications to the TPB, scholars within the ethical consumerism field have sought to include the influence of ethics, morals and values in this attitude–intention–behavior framework. For example, Shaw and Clarke (1999 ) developed theoretical models that include the influence of internal ethics (personal values) on intentions, and did so within the context of fair trade; Arvola et al. (2008) included moral norms to predict purchase intentions of organic food; Vermier and Verbeke (2008) integrated the role of personal values within the purchase intentions of sustainable 2 food. These studies have tended to accept the theoretical assumption that an individual’s intentions will directly determine their actual behavior (Fukukawa, 2003). This assumption, however, has been widely criticized as an oversimplification of the complex transition from intentions to action (Bagozzi, 2000; Morwitz et al., 2007). Furthermore, empirical studies in the field of consumer behavior more broadly suggest that purchase intentions do not translate literally into purchase behavior (Morwitz et al., 2007). Not all consumers will support the corporate ethical marketing activities, for example, Sen and Bhattacharya (2001) find that consumers will think poorly of products that announce positive social responsibility information; Smith and Stodghill (1994) found that many consumers would question firms’ real intention of doing good, considering their charitable behavior as business-interests-oriented, call them “corporate hypocrites” and rejecting their products. In essence, it took a long time for scholars to recognize that intention is an inferior “predictor” for behavior, and observe that this kind of distance is of great importance for explaining, predicting, and influencing consumers’ behavior (Bagozzi, 1993). Up to now, particularly in the study of ethical consumerism, there has not been sufficient cognition on this distance (Auger, Burke, Devinney, & Louviere, 2003; Belk et al., 2005; De Pelsmacker et al., 2005). Auger and Devinney (2007) think that to investigate consumer’s ethical purchase intention accurately, one must inspect both the personal characteristics and consumption environment simultaneously. For instance, some scholars definitely point out that the bias of consumers’ ethical purchase intention is not only because that consumers want to adhere to social expectation (Auger & Devinney, 2007; Carrington & Attalla, 2001); but also from the mistaken evaluation of future specific consumption environment (Carrington et al., 2010). When purchase intention transforms to actual purchase behavior, individuals interact with the consumption environment, which in turn influences consumers’ decision-making process (Phillips, 1993). In addition, some scholars have explored the question of attitude-intention-behavior gap of consumer decision-making in their ethical decision-making models. For example, Ferrell and Gresham (1985) proposed a contingency model which emphasize that ethical decision-making processes start from the social or cultural environment that generate ethical problems; when faced with ethical problems, individual’s decision-making is affected by personal factors(knowledge, values and attitude), important relationship (differential contact and role definition), as well as opportunities. Trevino (1986) proposed a person-situation integrationist model, considering that both personal factors (such as ego strength, locus of control, et al.) and situational factors (such as immediate working background, organizational culture, and the nature of work) will moderate the relationship between cognitive appraisal and behavior. Moreover, situational factors also have a direct impact on cognitive appraisal. Ferrell, Gresham and Fraedrich (1989) find that ethical 3 judgment can directly influence ethical behavior, and that the factors which influence ethical decision-making contain important relationship, personal factors, situational factors and opportunities. The scholars mentioned above point out the effects of consumers’ individual characteristics and specific consumption situation when investigating the factors influencing individual ethical decision-making; however, these are all from the single perspective. Meanwhile, much of this research has focused primarily on the seller side of the buyer/seller dyad, and relatively few studies have examined ethical issues in the marketplace from the perspective of consumer ethics (Vitell, 2003). So, in order to examine the purchase decision-making mechanism of ethical consumption, particularly the deep factors that influence the ethical purchase intention-behavior gap, this paper will conduct two studies by referring to the ethical decision-making models in ethical marketing mentioned above to integrate the two perspectives, including the consumer-personal and shopping-environment levels. It means that we focus on not only the influence of individual characteristics on purchase intention-behavior gap, but also the influence of specific purchasing situations on ethical purchase decision-making process. Study 1 primarily recognizes the influencing factors that lead to intention-behavior gap through qualitative method of in-depth interview; then, through large-scale questionnaire survey, study 2 further tests the recognized factors in study 1 and investigates the moderating effect of each factor on the relationship between intention and behavior. In following, we will develop an integrated theoretical framework of consumer ethical decision-making process, aiming at enriching and promoting the development of the theory of ethical consumerism. Study #1: Qualitative Interviews Research approach and Data collection Qualitative methods are considered be most helpful to examine those situations where claimed attitudes and actual behavior diverge (Belk et al., 2005) and where a real-life context is important (Sinkovics et al., 2005; Sykes, 1990). Given this, in-depth interviews with consumers seem to be the most advisable method, as they enable researchers to gain a more accurate and clear picture of a respondent’s position or behavior (Ghauri and Gronhaug, 2002) and to clarify and calmly elaborate on interesting answers. However, since the investigation of ethics-related topics is subject to social desirability bias, great care must be taken when collecting data (Brunk, 2010; Mohr et al., 2001; Oberseder et al., 2011). Hence, to reduce social desirability bias, we took measures as follows: Firstly, face-to-face interviews are seen as a good approach to minimize self-presentational concerns (Wooten and Reed, 2000) and to reduce the pressure on the interviewees to “do and say the right thing” (Bristol and Fern, 2003); Secondly, we tried as much as possible to lead the interviewees to a quieter place 4 in order to make them feel comfortable. Moreover, a semi-structural interview is conducted to produce a relaxing and trustful atmosphere; Thirdly, Before the interview, the respondents were advised that the focus of the research was to investigate their opinions and beliefs and that there were no right and wrong answers to the interview questions; Lastly, as for some particularly delicate questions, the projective technique was used, asking our respondents to interpret the behavior of other consumers (Fischer, 1993). The Sample To gain a diverse and interesting interviewee selection, we employed theoretical sampling, meaning that we chose consumers who could inform us about the research problem addressed in this study (Creswell 2007; Glaser and Strauss, 1967). In the meantime, we also tried to gather a balanced sample in terms of consumption habits. Hence, our study selected consumers with different shopping habits, ranging from price-conscious to quality shoppers. Moreover, we chose those consumers with diverse backgrounds with regards to demographic criteria such as age, gender, level of education, occupation, and marital status. A total of 40 respondents were interviewed, and among them, two respondents answered several phone calls during the interview, thus affecting the interview quality; another respondent had to finish some work during the interview and had to stop the interview early. Besides these, there were two respondents who said they had no ethical intentions, but could provide the interviewer with their actual ethical shopping behaviors. Because this seldom happens in reality, we thus exclude them in our sample. Therefore, there were 35 respondents as our valid interviews. The whole interviews were carried out from mid-August to early October in 2011. Each interview lasted from 30 minutes to 1 hour. Findings How Consumers respond to firms’ ethical products Among 35 respondents, nearly 62% of them stated notable ethical intention, but not any actual purchasing behavior. 8% of respondents “walk their talk”, meaning that they not only declare their preference for ethical goods, but also make an effort to actively ethically consume. In addition, 30% are indifferent to the enterprise’s ethical activities. This result fully proved some scholars’ opinions about “intention-behavior gap of ethical consumption”, and in reality, there exists consumers with ethical commitments, but their ethical buying willingness does not necessarily convert into practical ethical purchasing behavior. (Auger, & Devinney, 2007; Belk et al., 2005; Carrington, &Attalla, 2001; Jobber, 2000; Shawetal, 2007). Then, what are the factors impeding the translation from buying intentions to actual purchasing behavior of ethical consumers? This is just what we’ll investigate in the following sections. Consumer characteristic variables 5 During the interviews, respondents seem to be aware of the relevance between personal morality and ethical purchasing, and persist in saying that they are bound to participate in ethical purchase as much as possible. When the interviews go further, however, a contradiction between words and behavior emerges. Though respondents state that they have a responsibility to take action, they give many excuses to explain why it is difficult to buy ethical products. For example, they question the quality of ethical product; dislike enterprises “doing good things” to marketing themselves; and consider it hard to distinguish ethical products. Some even claim that they don’t have enough ethical consciousness and only give support to ethical consumption at the emotional level. Moral maturity. According to Kohlberg (1969), moral maturity will particularly have an impact on consumer behavior. Forte (2004) suggests that, when making ethical decisions, a person’s moral maturity has a significant relationship with a personally formed sense of control. Those who have an external locus of control tend to believe that an ethical dilemma is beyond their control, while those with an internal locus of control are more likely to make ethical decisions under the condition of neglecting conflicts and social rules pressure (Singhapakdi, & Vitell, 1991). For instance, during the interview, we found many respondents did mention that they couldn’t accept buying pirated products. On the contrary, others held the view that, even you insist on buying genuine goods, there are a number of consumers who will still buy pirated. The former believe that their behavior will have an effect (internal locus of control), whereas the latter propose the change of their consumption pattern has no influence at all. This example illustrates that how to use the external locus of control to prove the existing purchase behavior reasonable (Singhapakdi, & Vitell, 1991). Therefore, consumers who have more moral maturity with an internal locus of control will be increasingly willing to consider the influence of their own private consumption behavior on issues of social ethics and thereby attempt to bring about social change through their purchasing behavior (Webster 1975; Muncy, and Vitell 1992). Quality consciousness. In the interview, we found out that, partly because of respondents’ distrust on the quality of ethical products, a number showed great interest in ethical products, but that they still didn’t make an actual purchase, Some respondents, for example, hold the viewpoint that there was trade-off relationship between corporate social responsibility behavior and enterprise ability, such that the social responsibility behavior weakened the company’s ability to provide the best products, while the enterprise’s behavior of using resources in social responsibility activities would reduce resource inputs in terms of increasing work efficiency. This seems to verify Folkes and Kamin’s (1999) perspective to a certain degree, they believe that moral behavior does not take the place of product quality and that ethical marketing responsibility behavior also can not offset the effect of low-quality products on the consumer. Thus, the 6 perceived quality of ethical products is a strong influential factor in the process of ethical decision-making (Bray, Johns, Kilburn, 2011). Price sensitivity. When being interviewed, price was always mentioned by respondents. This indicates that compared with ethical value, what they care more about is financial value, especially when buying food or other daily goods. One of them once said, “When shopping in the supermarkets, I don’t take ethical goods into account at all, because you consume them every day, and you should save money as much as possible”. After consumers have purchased ethical products, once they have to pay the higher price, they may experience a notable disparity between pre-purchase and post-purchase process. For instance, a respondent told us ever, “Sometimes I do feel like buying some particular ethical goods. For example, there were internet friends who launched an activity called ‘buying up Wanglaoji1’ after Wenchuan Earthquake in 2008. When I entered the store, however, I found the price for me was too high.” Buying inertia. Besides quality and price of products we are always focusing on, compared to consumers’ commitments to ethical purchase, some respondents seemingly stick more to their own buying inertia. Assuming that consumers are facing a non-price sensitive shopping situation, they will not choose buying ethical products at once as expected. Though price and quality are prominent, purchasing inertia is a stronger barrier to consumption, as it ultimately prevents any change in consumption patterns. At first, price is believed to be the key impeding factor in ethical consumption. But when requested to neglect it, consumers are apparently influenced by their buying inertia. In the interview, we found out that we had to admit that consumers’ loyalty to certain brands would always make them be less likely to make an ethical option. A lot of branded goods have been accepted by consumers, though these products were not reasonable at the ethical level. Cynicism. In our interview, many respondents expressed their disappointment with so-called “ethical image” of corporations to show that it was reasonable for them not be willing to buy ethical products. They argued that corporations’ statement of supporting philanthropy was yet just “making a show of it” in terms of social responsibility behavior, or simply promoting itself, and the true goal is to gain their own commercial interests. In the meantime, consumers showed another form of “cynicism”. They hold the viewpoint that ethical behavior of some enterprises do not matching their economic ability, which doesn’t satisfy consumers’ expectations on them. In our interview, for example, some respondents angrily mentioned that after the earthquake of China in 2008, many companies with big size (e.g. Wanke) and overseas enterprises (e,g. Dell) donated 1 Wanglaoji is a famous beverage brand in China. In the 2008 Wenchuan earthquake of China, the Wanglaoji Company made a quick response to this disaster and donated 100 million RMB, which triggered some consumers to launch an activity named “buying up Wanglaoji”. 7 too little money for the earthquake and responded very slowly. Ethical cognitive efforts. In essence, when Boulstridge and Carrington (2000) investigated consumers’ responses to ethical and unethical marketing activities, they found that most consumers did not have enough information to identify whether an enterprise had ever been engaged in ethical activities or not. In addition, consumers seldom take the initiative to seek relevant ethics information regarding production when shopping—they simply rely on label information as guidance (Carrington and Attalla 2001). Just as the findings of Dragon International (1991) suggest, only 26% of respondents could identify the names of socially responsible enterprise clearly, while only 18% of them could pick out “the least responsible” enterprise. In fact, in our investigation, a number of respondents admitted honestly that they are not provided with enough information to help making a decision ethically. Thus, in reality, society has created very captious mature consumers who have achieved a high level of education, but it would appear that the knowledge possessed by these so-called ‘‘mature consumers’’ can not/does not lead them to buy ethical type products (Deng, 2012). Situational Variables According to the literature review, the gap between intention and behavior is not solely caused by the cognitive process of ethical consumers. Some of them will confront a situation outside of their subjective control that has “a notable effect on current behavior” (Belk, 1975). In the field of consumer behavior, purchasing surroundings refer to physical and social factors that consumers will confront in their purchasing process, which is a special kind of environment mixing with people’s emotions and cognitions (Bryce, 2003). These factors may play an impeding or promoting role in the transformation from buying intentions into purchasing behavior. Physical surroundings. Physical surroundings refer to the physical features of marketing environment which could be readily identified, including tangible factors that take up rooms (e.g. store address, product placement, inventory information, visibility of competing products and accessibility of price comparison, etc.) and intangible factors that don’t take up space (e.g. color, flavor music and lighting etc.). Just as Beatty and Ferrell (1998) found, factors such as the convenience of a shopping place, the placement of products, pleasant flavor and beautiful colors will have an impact upon consumers’ product perception. Thereby consumers’ cognition of products is stimulated and they then make actual purchasing actions. In the interview, we actually find that physical surroundings do play an important part in the transformation of consumers’ ethical buying intentions into actual behaviors. For example, many respondents said, “Of course, I would like to buy ethical goods, but I will not walk a long way to purchase ethical products. And what’s more, it seems impossible to pick out a certain ethical product with difficulty from lots of goods on the shelf when I arrive at shopping places.” It somewhat seems to indicates that only 8 when there’s no increase on extra cost of ethical consumption (e.g. information recognition of ethical products and inconvenience of shopping), will their purchases become more ethically oriented. Social surroundings. Social surroundings refer to the influences that other people or social norms have upon consumers in their consumption, such as opinions of their friends or colleagues, expectations of families, and the social mainstream values (Belk, 1975; Bryce, 2003). Pool (1998) suggests that consumers have motivations of following group norms because they may think that the behavior of others (especially people who are important for them) are appropriate. Particularly in some uncertain situation, people tend to obtain information from the society about how to behave. As a matter of fact, we do feel that respondents really care about what others may think about their consumption behavior in our interview. For instance, some respondents told us, “Personally I pretty much support ethical consumption, but most friends around me don’t care much about this. If I pay too much attention, I will be regarded pedantic and asocial.” Another example is that a respondent once said, “I think ethical consumption is the issue that only middle-aged and old people should consider, but for us born after the 1990s, fashion is the most important factor that matters. If I pursue so-called ‘ethical consumption’, my friends will definitely laugh at me.” Even there’s no pressure from relatives and friends, indeed, the contact with shopping guides is dispensable for consumers when they are in the shopping mall. Consumers will unwittingly listen to marketing personnels’ advice in their purchase of goods, and these advice and suggestions can improve consumers’ value perception (Hawkins, &Roger, 2003). For instance, some respondents said, “Sometimes I really choose ethical goods purposely when shopping, but if strongly recommended to buy other favorable competing products by shopping guides, I can’t block my temptation to buy them.” Time. When consumers feel urgency in shopping, they won’t spend much time in collecting enough information to choose products. Some consumers admitted honestly that they had no time to consider the ethical associations of their purchasing behavior because they often were in a hurry in the supermarkets or shopping malls. As Titus and Bradford (1996) pointed out, time pressure and information burden may actually undermine the consumer’s ability to make an accurate judgment on product quality. Thus, we think in the shopping environment, consumers’ perception of information, time, and other factors without volitional control will significantly influence their ethical shopping decision-making. Shopping task. Shopping task means the specific reason or purpose for consumers to buy goods, i.e., purchasing a commodity is for their own use, sharing with family, or to give to others as a gift (Belk, 1975; Bryce, 2003). We find, in our interview, that under the conditions of different shopping purposes, consumers also have various opinions about choosing different 9 grades, price, and brands of products. For example, some consumers hold the idea, “If I’m going to buy things to give people as a gift, what I firstly consider the quality and grade. While for my own use, I think I’ll focus on ethical factors possible. That’s great!” Some other respondents said, “Ethical goods are perfect. For example, organic food is too expensive for me to buy, but for my parents, of course I’ll buy them. They can prolong life, of course.” Thus, shopping tasks or purposes can influence consumers’ value perception of the ethical goods, thereby impeding or promoting the transformation from ethical buying intentions into purchasing behavior. Current status. This refers to temporary emotions (e.g. anxiety, hostility and excitement) or status (e.g. holding cash, shortage of products or a sudden rise in price) of consumers in the actual consuming context (Belk, 1975; Bryce, 2003). This will change consumers’ emotions, and further influence their understanding of the value of products. In the interview, we find that even if current status has some contingency, corporations can’t neglect its impeditive effect on the transformation from ethical intentions into purchasing behavior. When consumers enter into shopping places, there exist many kinds of casual factors affecting consumers’ ethical buying decisions. For instance, they may find it impossible to get their desired ethical goods immediately; or their money is not sufficient to actually purchase ethical goods. As is stated by a respondent, “Once I really wanted to buy ‘Wanglaoji’ after seeing the activity of ‘buying up Wanglaoji’ in internet. However, when I entered the shopping mall, I was told that they had been sold out.” Another respondent said ever, “To be honest, some products with the concept of green and environmental consumption are so expensive. I always hesitate to spend so much money on them.” Study #2: Quantitative Data Data Collection and Sampling This part of the research took a sample survey in Beijing, Shanghai, Shenzhen, Wuhan, Chengdu and Qingdao during March-July 2012. In order to improve the questionnaire recovery and guarantee the response quality, we used face-to-face method and collected questionnaires on the spot. At the same time, because researchers don’t know the interviewees and the survey is conducted anonymously, it is hard for researchers to ask interviewees to spend some time answering the questionnaires, in order to reduce the probability of being rejected, we provide some gifts worth RMB 15-20 for every interviewee. We delivered 1,200 questionnaires and received 1,093, after the consistency check, we delete 64 and finally keep 1,029 valid ones, so the recovery is 91.08% and the valid rate is 85.75%. Variable Measurement We adopt the following method to develop consumer characteristic variables and situation 10 variables which can moderate the relationship between consumer ethical purchase intention and behavior in the Chinese situation: (1) In-depth interviews (study 1). We collect and conclude specific items through the deep interview in study 1, and select items that are mentioned in the interview more than 10 times, among them 12 items are about consumer characteristics and 8 items are about situation; (2) Referring to related extant researches and questionnaires. We refer to the definition and measurement of consumer characteristic variables (Carrington, Neville, & Whitwell, 2010; Deng, 2012) and situation variables (Carrington, Neville, & Whitwell, 2010; Blythe, 2003) which influence the ethical purchase intention-behavior gap in previous literature, after modifying them, we get 4 items about consumer personality and 5 items about situational factors. Combining these items and those obtained from interview, we get an initial questionnaire consisting of 16 items about consumer characteristic and 13 items about shopping situation; (3) Assess and modify the initial questionnaire. Again, following the deep interview steps in study 1, we choose 20 respondents (both of these respondents and the 40 respondents in study 1 didn’t participate in the subsequent formal survey) to assess the degree to which the content described by the items of initial questionnaire are conform to the reality, then we adjust the expression to make them understood more easily. By synthesizing these feedback, we delete 4 items and finally get a measurement scale consists of 25 items. In the formal investigation, we use the 25-items scale to measure the factors which can influence the ethical purchase intention-behavior gap. Respondents make self-assessment based on the 5-point Likert-type scale (0=strongly not degree; 1=not degree; 2=neutral; 3=agree; 4= strongly agree). In order to test the reliability and validity of the scale, we conduct an exploratory factor analysis (EFA) for the samples. The results (as shown in Table 1 and Table 2) of EFA show that: (1) among the factors of consumer characteristic, there are 5 factors whose eigenvalues is greater than 1, among them “quality consciousness” and “price sensitivity” identified in study 1 merge into one factor named “economic rationality” in EFA; (2) among the factors of shopping situation, there are 4 factors whose characteristic root is greater than 1, among them “current state” and “time perception” identified in study 1 merge into one factor named “current state” in EFA; (3) factor loading of each item is greater than 0.5; (4) the variance explained by each factor is more than 70%; (5) the reliability of items of each factor is greater than 0.8. In addition, the dependent variables in this paper involve ethical purchase intention and behavior. The measurement of ethical purchase intention is conducted through 2 items: “I will buy ethical products next time” “I will consider preferentially buying ethical products next time”. Respondents make assessment based on the 5-point Likert-type scale (0=strongly not degree; 1=not degree; 2=neutral; 3=agree; 4= strongly agree). The measurement of ethical purchase behavior is conducted through the item “In your memory, how many times have you bought 11 ethical products?” Respondents make assessment based on the 5-point Likert-type scale (0=not at all; 1=quite a little; 2=relatively few; 3=relatively many; 4=quite a lot). Table 1: Component Loadings for Five-Factor Solution Principal Component Loading—Five-Component Solution Personal factors Component Moral maturity Cronbach’s Alpha:0.921 1 2 3 4 5 I always ethically consume 0.779 0.171 0.255 0.446 0.446 I always recommend my friends to buy ethical products 0.723 0.149 0.097 0.184 0.184 I always resolutely resist unethical products 0.697 0.245 0.119 0.281 0.281 I always recommend my friends not to buy unethical products 0.771 0.248 0.149 0.111 -0.001 I mainly consider cost-performance ratio when buying goods 0.111 0.709 0.122 0.165 0.216 I mainly consider brand awareness when buying commodities 0.261 0.687 0.209 0.132 0.289 I mainly consider shopping convenience when buying goods 0.142 0.745 0.322 0.198 0.177 I will not change familiar brands easily when buying goods 0.048 0.023 0.645 0.023 0.111 I like to go to the shopping mall I usually go when buying goods 0.111 0.098 0.721 0.098 0.218 Corporate can’t has help-self motivation when doing charities 0.298 0.048 0.244 0.676 0.218 Large corporate must undertake much more ethical responsibility 0.023 0.21 0.087 0.809 0.321 0.047 0.285 0.176 0.166 0.634 0.216 0.181 0.385 0.378 0.709 0.177 0.133 -0.007 0.299 0.772 Economic rationality Cronbach’s Alpha:0.881 Buying inertia Cronbach’s Alpha:0.903 Cynicism Cronbach’s Alpha:0.928 Ethical cognitive effort Cronbach’s Alpha:0.876 I am certain to make clear whether the corporate is genuinely “philanthropy”, or false “philanthropy” I am certain to identify the ethical information of products I would like to go to many stores or supermarkets to look for my favorite ethical products Total variance explained = 73.2%; KMO = 0.887; Bartletts Test Chi-sq =5679.2, p = 0.000 Table 2: Component Loadings for Four-Factor Solution Principal Component Loading—Four-Component Solution Situational factors Component Physical surroundings Cronbach’s Alpha:0.865 1 Stores or supermarkets should display the ethical products in such positions which can easily catch the eye Stores or supermarkets selling ethical products should have good sites Stores or supermarkets selling ethical products should have good promotion atmosphere 2 3 4 0.709 0.377 -0.092 0.364 0.711 0.176 0.231 0.144 0.687 0.201 0.008 0.309 0.231 0.703 0.211 0.254 0.092 0.643 0.067 0.061 Social surroundings Cronbach’s Alpha:0.877 Most family members/ friends/neighbors/colleagues around me promote ethical consumption The government/media network/consumer groups often call on to buy ethical products 12 consuming ethical products is a prestigious affair 0.309 0.807 0.321 0.343 If the products are for gifts, quality and grade are the main consideration 0.071 0.021 0.665 0.087 If the products are for self-use, ethical factor will be considered when purchasing 0.085 0.109 0.671 0.113 0.023 0.337 0.446 0.801 -0.147 0.092 0.184 0.721 0.064 -0.119 0.281 0.734 Shopping task Cronbach’s Alpha:0.890 Current status Cronbach’s Alpha:0.901 When I go to stores or supermarkets, if commodities are suddenly out-of-stock or rise in price, I will change my idea temporarily I am an impulse buyer, and the shopping mood will dominate my purchase choice I am too busy, so that I don’t have much time to identify ethical and unethical products when I am shopping in stores or supermarkets Total variance explained = 69.9%; KMO = 0.903; Bartletts Test Chi-sq =6413.9, p = 0.000 Findings Correlation analysis The correlation between consumer characteristic variables and buying intention and behavior. The findings figure out that quality consciousness and price sensitivity are significantly negatively correlated with buying intention, and weakly negatively associated to purchasing behavior. This result indicates that in reality, there are quite a few consumers that express their willingness to make ethical purchases, but the reality is that ethical marketing responsibility is not the most important standard in their purchasing decision process—what they are truly concerned about are economic factors, such as price, quality, brand, and convenience (Boulstridge, and Carrington, 2000; Ulrich, &Sarasin, 1995). In addition, the result also suggest that moral maturity is significantly positively correlated with ethical buying intention, while ethical cognitive efforts and cynicism have significantly positive correlation with buying intention. This finding is somewhat surprising. However, after further finding that a significant positive correlation exists among moral maturity, ethical cognitive effort and social cynicism, we finally make a reasonable explanation that the more moral maturity the consumers have, the more ethically cognitive efforts they pay, which will further make consumers more cynical. For example, consumers may perceive that the fairness degree of most Chinese companies’ ethical activities is not high and more often is actually “show” charitable behavior base on the helping-self motivations, causing consumers to questioning and boycott the product, and thereby preventing the transformation from ethical intentions into behavior. Meanwhile, the findings reveal that buying inertia has a significantly positive correlation with quality consciousness and price sensitivity but negative correlation with ethical buying intention and behavior. This result figures out that consumers’ main shopping decisions are still more concerned about the quality and price of products and ethical consumption has not yet become a shopping habit. Thereby, shopping inertia acts as a strong barrier to consumers’ the purchasing behaviors since it finally prevents the change of ethical consumption 13 pattern. The correlation between situational variables and buying intention and behavior. The results suggest that only social surrounding has a significantly positively correlation with buying intention and behavior. This finding is essentially accordance with China's collectivist culture. Compared with Western consumers’ attention on their rational calculation, Chinese consumers tend to follow the impact of social norms, obeying the expectations of others, group and themselves. This is because satisfying social expectations can create good feelings and sense of belonging. As is argued by scholars such as Li and Wu (2009), people are affected by group mainly because they need to avoid uncertainty, create sense of belonging, keep the satisfying relationship with group and realize the maximization of their own value. Therefore, individuals’ behavior intention can be easily affected by group pressure within a culture situation such as in China, which is particular about group orientation and social harmony. Table 3: Pearson correlation coefficient of variables Variables 1 2 3 4 5 6 7 8 9 10 1 Buying intention 2 Buying Behavior 0.63*** 3 Moral Maturity 0.41** 4 Economic Rationality 5 Cynicism -0.28*** -0.45 6 Buying Inertia 7 Ethically Cognitive Efforts 8 Physical surroundings 9 Social surroundings 0.39*** -0.31 * *** -0.44 ** 0.12 0.37 ** -0.11 -0.13 -0.51 ** 0.33** 0.02 -0.36 ** -0.12 0.34** 0.09 0.11 0.37 *** 0.10 0.37*** -0.05 0.15 -0.09 0.12 0.13 0.15 0.09 0.18 0.11 0.08 0.06 0.19 0.04 * 0.11 0.08 0.13 0.17 0.05 0.04 0.06 0.08 0.11 0.14 0.51 ** 10 Buying tasks 0.12 0.11 0.03 0.27 11 Current status 0.05 0.06 0.08 0.12 * p<0.1;** p<0.05;*** p<0.01 The Moderating effects of consumer personal and situational variables In the regression analysis, purchasing behavior is seen as dependent variables, and the demographic statistics indices are control variables. In model 1, model 2 and model 4, the finding indicates that ethical buying intention has a significantly positive effect on ethical purchasing behavior. In reality, however, ethical buying intention of consumers will not be necessarily turned into ethical purchasing behavior. So what are those factors moderating the relationship between ethical buying intention and behavior on earth? To figure it out, we introduce the interaction terms between consumer personal and situational factors and shopping intention into model 3, model 5, and model 6, aiming to further investigate the moderating effects of consumer personal and situational variables on the relationship between ethical buying intention and behavior. The 14 0.12 finding in model 3 and model 6 indicates that, as of those consumer personal variables, the relationship between buying intention and behavior is negatively moderated by economic rationality of the consumers, which demonstrates that even though quite a few consumers express their willingness to make ethical purchases, but the reality is that ethical marketing responsibility is not the most important standard in their purchasing decision process—what they are truly concerned about are economic factors, such as price, quality, brand, and the shopping convenience, among others. At the same time, there exists a significantly negative moderating effect of buying inertia on the relationship between intention and behavior, implying that in real shopping context, though some consumers have made commitments to ethical consumption, under the influence of buying inertia, it is still likely for them not to “walk their talk”, that is to say they are still inclined to buy those products without much ethical reputation, but with high consumer brand identification. Thus the findings in Table 4 indicate as well that both ethical cognitive efforts and cynicism will moderate negatively and significantly the relationship between intention and behavior, indicating that though those consumers with higher moral maturity are willing to input greater ethical cognitive efforts, their cynicism trait finally impedes the transformation from ethical buying intention to actual behavior. This conclusion is interesting and the explanation we can provide is that in Chinese context, consumers will question the motivation of ethical activities and the fairness of companies after they put enough cognitive efforts. What’s more, they may think that companies are just making use of philanthropy as a “show” to accomplish their marketing objectives (Smith, &Stodghill, 1994; Yeo, 2003). Next, we will investigate the moderating effects of situational factors on ethical intention and behavior. The results in model 5 and model 6 show that situational factors can really help explain why the gap between buying intention and actual purchasing behavior comes into being. We discover that physical surroundings significantly has a positive moderating effect, which suggests that physical surroundings serves as an important factor impeding the transformation from ethical buying intention into purchasing behavior. This is because the physical characteristics of ethical products’ marketing environments are not so obvious that it will increase some extra cost of the ethical purchase. Or to be more precise, these consumers do take ethics into account, but compared with ethical factors, they care more about fast-identified physical characteristics of marketing environment such as shopping convenience and the visibility of competitive goods (Boulstridge, &Carrington, 2000; Ulrich, &Sarasin, 1995). In addition, the results indicate that social surroundings has a significantly negative moderating effect on the relationship between intention and action, indicating that consumers will be less likely to transform their ethical buying intention into actual purchasing behavior if they are more aware of following social norms. The findings show that ethical consumption hasn’t a 15 mainstream behavior of society in Chinese context; at least it has not been accepted commonly by most consumers. Therefore, how to build an ethical consumption culture and atmosphere remains an unanswered question. In the meantime, Table 4 reveals that shopping task has a significantly negative moderating effect, which means shopping task or purpose is a significant factor to impede the transformation from ethical intention into actual behavior. This conclusion coincides with some scholars’ points including as Belk (1975) and Bryce (2003). They both believe that, with different purposes of purchasing goods, consumers will buy different commodities and brands significantly. For example, the quality of food bought for their own use is apparently different from that is used to treat others; similarly, if the gifts are for friends, we always do our best to pursue tastes, brands and high-level grades. Finally, it is found that current status has a negative moderating influence as shopping task does, which means the terminal shopping atmosphere and environment are the key factors influencing the successful transformation from intention to action as well. And this issue is just ignored by those firms who are trying to provide ethical products. Just as the opinion of Kotler (1978), he asserted that consumers’ emotional reaction would be provoked by shopping sites, terminal display, and marketers’ operational atmosphere. Though such emotional reaction is temporal, customer perceived value will be controlled instantly. Table 4: The Moderating effects of personal and situational variables Variables Buying Behavior Model 1 *** Intercept 0.131 Buying Intention 0. 445*** Model 2 0.229 Model 3 ** 0.234 ** Model 4 0.199 ** 0.398*** Model 5 Model 6 ** 0.237** 0.433*** 0.498*** 0.276 0.406*** 0.476*** 0.043 0.054 0.076 Economic Rationality -0.045 -0.065 -0.041 Cynicism -0.067 -0.065 -0.079 Buying Inertia -0.126 -0.062 -0.099 0.021 0.030 0.037 0.234** 0.209*** -0.223** -0.287** -0.331** -0.312** -0.288** -0.266** -0.254** -0.298** Personal Variables Moral Maturity Ethical Cognitive Efforts Buying Intention ×Moral Maturity Buying Intention ×Economic Rationality Buying Intention×Cynicism Buying Intention ×Buying Inertia Buying Intention ×Ethical Cognitive Efforts Situational Variables 16 Physical Surroundings Social Surroundings 0.016 0.009 0.264* -0.034 0.044 -0.205*** 0.078 0.069 0.049 0.177*** 0.234** -0.248*** -0.188*** -0.253** -0.184** 0.181** 0.198** 0.113 0.145 Shopping Task Current Status Buying Intention ×Physical Surroundings Buying Intention ×Social Surroundings Buying Intention ×Shopping Task Buying Intention ×Current Status Gender 0.122 0.112 0.101 ** 0.123 0.175** 0.348 Occupation 0.112 0.309*** 0.356*** 0.289*** 0.256*** 0.331*** Income 0.112 0.309*** 0.324*** 0.267*** 0.276*** 0.299*** Education Level 0.176 0.288*** 0.297*** 0.356*** 0.203*** 0.198*** Adj. R2 0.511 0.587 0.609 0.477 0.621 0.790 F value 11.199 7.887 9.996 *** 10.443 *** 0.208 ** 0.121 *** 0.286 ** Age ** 0.324 * 7.889 *** 12.006*** * p<0.1;** p<0.05;*** p<0.01 An Overall Ethical Decision-Making Framework Based on the description above, a generalized framework of consumer ethical buying intention-behavior can be developed, with the aim of providing an in-depth description of the processes and mechanisms causing ethical buying-intention gap (shown in Figure 1). In our research, the disparity between ethical buying intention and behavior is not only determined by characteristics of ethical consumers, some consumers may meet some uncontrollable shopping situations, which have an apparent effect on current consuming behaviors (Belk, 1975; Carrington, Neville, Whitwell, 2010). Results in this study indicate that moral maturity is the key factor leading to ethical buying intention, but this kind of intention will not necessarily be converted into actual purchasing behavior because the relationship between ethical buying intention and behavior is influenced by some moderating factors. In the aspect of consumer characteristics, buying inertia, cynicism and ethical cognitive efforts will significantly moderate the relationship between ethical buying intention and behavior, which mainly lead to consumers’ ethical purchasing gap. This conclusion suggests that in real shopping situations, though some consumers make commitments to purchase goods ethically, they will buy some products of widely-accepted brands that are not reasonable in ethics because of their buying inertia; the moderating effect of ethical cognitive efforts and cynicism demonstrate that consumers who have more moral maturity will make more 17 efforts to ethical cognitive efforts, however, some cynical consumers will perhaps feel a low level of fairness of most Chinese corporations’ ethical activities. And what’s more, in most cases, they will use philanthropy as a “show” based on help-self motivation, which will eventually prevents transforming ethical buying intention into actual purchasing behavior. At the situational level, all variables including physical surroundings, social surroundings, shopping task, and current status have significant moderating effects on the relationship between ethical buying intention and behavior. The results show that when consumers who own ethical buying intention enter into a real shopping place, they may find that the physical characteristics of ethical products such as the recognition of information and shopping convenience are not obvious, which may result in extra efforts or cost for consumers to accomplish their purchase, and furthermore, lead consumers to give up buying ethical products. The significantly negative moderating influence of social surroundings suggests that Chinese ethical consumption hasn’t been the mainstream, and thereby government and corporations should construct a certain culture and atmosphere of ethical consumption. Meanwhile, we find that current status has a significantly negative moderating influence, which means that terminal shopping atmosphere and environment can mainly have an impact on the transition of ethical buying intention into purchasing behavior. However, such a factor is always neglected by corporations that offer ethical products. Just as pointed out by Kotler (1978), the emotional response of consumers can be stimulated by shopping places, terminal display and atmosphere controlled by marketers, and even if such emotional responses are temporal, it will predominate the value recognition of customers immediately. Situational Contexts Physical Buying Current Status Consumer Personality Moral Purchasing Buying Cynicism Ethical Cognitive Economic Rationality Social Surroundings Surroundings 18 Purchasing Behavior Figure 1 Ethical consumption: from intention to behavior Conclusions andstands Implications Notice: Dotted arrow for moderating effects, which is mainly focused in this study. The aim of this paper was to explore why consumers will not “walk their talk” when making an ethical purchasing decision in the Chinese context through the use of a in-depth interviewing method (study 1) and big-scale questionnaires (study 2) to probe in depth the factors preventing consumers from translating their stated ethical intentions into actual ethical buying behavior. This problem is really important, as only when the enterprise understands this issue will it exercise more initiatively held marketing ethics activities and possibly be more purposeful in implementing an ethical marketing strategy. The main conclusions are as follows. Firstly, in Chinese context, consumers exhibit an obvious gap between buying intention and actual behavior in their purchase of ethical goods. The findings indicate that nearly 62% of consumers address themselves in one way but behave another, thereby meaning that they have stated an obvious purchasing intention but do not actually buy ethical products; 8% of them can “walk their talk”, namely, claiming that they tend to buy ethical goods, and eventually, can exercise ethical buying actively. Additionally, there exist 30% of consumers who don’t care much about ethics and are indifferent to ethical consumption, and say honestly that they still mainly consider more about economic factors such as the quality, price and brand of products rather than ethics. Secondly, the formation of ethical buying intention-behavior gap is simultaneously affected by consumer characteristics and situational factors. The findings suggest that such consumer characteristic factors as quality consciousness, price sensitivity, buying inertia, cynicism and ethical cognitive efforts, as well as situational factors like physical surroundings, time perception, social surroundings, buying task and current status will have a significant moderating influence on the relation between buying intention and purchase behavior. Thirdly, the influencing mechanism of consumer characteristic factors is as follows: consumers who possess more moral maturity will have more intention to buy ethical goods. In actual purchasing situation, however, though they do make a promise to buy ethical products, it is possible for them eventually not do as they have stated before due to their buying inertia. Meanwhile, the more moral maturity they own, the more ethical cognitive efforts they are willing to input. However, those consumers with cynicism may feel that corporations’ ethical activities are unfair, that so-called ethical activities are just to ‘‘making a show of it’’ for selfish reasons, thereby impeding the transformation from stated ethical purchasing intentions into actual buying 19 behavior. Fourthly, the influencing mechanism of situational factors is as follows: consumers owning ethical purchasing intention may find that the physical elemental characteristics (such as the identification of information, the shopping convenience, and etc.) of corporations’ marketing ethical products are not obvious when they go into the shopping mall, thereby causing extra ethical efforts or cost that consumers have to pay, and eventually urging consumers to give up buying ethical goods. Meanwhile, the ethical consumption in China still hasn’t been the mainstream, and advice or suggestions from other people will sometimes lead to consumers’ violating their initial ethical intentions, and not buying ethical products. In addition, time pressure under modern fast-paced life and the overflow of information make consumers have less time to make rational considerations of the ethics. At the same time, some causal factors such as the different buying tasks or purposes, as well as the current emotion or status of consumers are also critical factors mainly resulting in consumers’ not walking their talk. There are also important implications of this research on corporate marketing practices. Some scholars generally hold the idea that intention is undoubtedly a reliable proxy variable for actual behavior in the discussion of ethical attitude-behavior gap of ethical consumers (Newholm, 2005; Shaw et al.,2007). Therefore, what most studies mainly focused on is the relationships and disparities between attitudes and intentions of ethically minded consumers, yet rarely pays close attention to the critical gap between ethical intentions and buying behavior (Carrington, Neville, Whitwell, 2010). This article attempts to bridge this gap, aiming to promoting the understanding and development of ethical consumerism. This research provides a number of insightful suggestions on how to close the gap between buying intention and actual behavior, and further formulate efficient ethical marketing strategies. Firstly, the firm should pay a great deal of attention to the implementation of ethical marketing strategies. The findings of this study confirm that nearly 58% of consumers will produce ethical purchasing intention and around 13% will make real purchasing response as support for the enterprise’s ethical activities. This result clearly indicates that consumers will still link a firm’s excellent ethical performance with their positive product and social image. Therefore, enterprises should care about the existence of this specific portion of the consumer population, and when actively implementing ethical marketing strategies, they should carry out marketing communications targeted at these consumers as a means to create more market opportunities. In the meantime, when implementing ethical marketing strategies, the firm should not be too optimistic and take for granted that consumer’s stated ethical purchasing intention would be 20 definitely translated into an actual purchase. The findings confirm that though 58% of consumers will have intention to purchase ethical goods, their intention will not be necessarily translated into actual purchase. To some degree, we think this 58% of consumers will play the key role of “middle voters”, and their intention may therefore be converted into actual purchases or indifference to ethics, respectively. As of the concrete conversion direction, it will undoubtedly depend on firm’s ethical marketing strategies. Secondly, enterprises should try to advocate and lead a trend of ethical consumption through such media as TV, internet, and etc., or the means of using product image speaker. Just as mentioned in this study, when shopping ethical goods, Chinese consumers have a strong conformist mentality. The findings confirm that social surroundings have a significant moderating influence on the relationship between ethical purchasing intention and actual action. Hence, enterprises could lead a ethical consumption culture and atmosphere through the medias (such as TV, internet, and etc.) which could be accessed by consumer usually. In the meantime, Chinese consumers have a serious face consciousness, to cater to their face needs, firms could use such marketing strategy as product image speakers to lead an ethical consumption atmosphere, aiming to let people imitate them actively, and further advocating ethical consumption. Thirdly, corporations should focus on the retail terminal construction of ethical products, aiming to help consumers readily achieve (rather than impede) the transformation from ethical buying intention into purchasing behavior. This could be done by assisting those ethically minded consumers to image the concrete purchasing situation and their corresponding behaviors, which will activate their ethical intensions in the shopping aisle and at the cash register. For instance, using a combination of out-of-store and in-store visual media to remind consumers and shoppers of their ethical intentions (e.g. remember to buy recycled toilet paper and you really want that!) can help them impede their automatic shopping, and thereby evoke their ethical purchasing intentions and change their buying inertia. Meanwhile, firms can make the most use of some subtle hints of shopping situation to influence consumers, such as arranging the store staff in the aisle to interact with the in-store ethical consumers; selling the products to ensure their visibility comparing to competitive products; using price promotion strategies to give the product a trial; using some visible thing to symbolically and effectively communicate the ethical quality of products with consumers. Fourthly, corporations are supposed to focus on the disclosure of social responsibility report/information. Consumers, in reality, do require more information to make a better ethical judgment. 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