In recent decades scholars have acknowledged that transactions in the informal economy have not vanished with modernization and industrialization as expected but rather remain an important contemporary aspect of overall production and consumption across the world, in both developing and developed countries. Yet little is known about the profile of the consumers in this realm or what drives them to purchase from the informal economy. A systematic review of the literature investigating consumption in the informal economy reveals a severely underdeveloped (...) area of consumer studies with significant gaps in terms of its theoretical approaches, methods and regional coverage. The findings of the existing literature is that multiple motives are used by consumers for justifying their purchases in the informal economy beyond the dominant simplistic view that they do simply for financial gain or for a lower price. The outcome is a recognition that responsibility to reducing this phenomenon with negative effects on governments, businesses, workers and consumers lies not just with public authorities but also practitioners who need to correct the failures in formal market provision. The significant gaps identified in the literature are then used to highlight a comprehensive future research agenda, which includes the need for the development of an institutionalist theoretical perspective when explaining consumers‘ participation in the informal economy and social marketing interventions. (shrink)

Governmental policies are encouraging companies to reduce the environmental impact of their packaging and particularly overpackaging, which raises a broad range of ethical considerations. However, experiments comparing an overpackaged product with a non-overpackaged product have shown that eliminating overpackaging may have a negative influence on brand image and consumer purchase intention. In this paper, we draw on attribution theory to examine the influence of the absence of overpackaging on consumers’ response, depending on their environmental consciousness and the absence of overpackaging (...) on the competing product. An experiment conducted on 218 consumers demonstrates that non-overpackaging for a target product only adversely affects purchase intention among non-environmentally conscious consumers when competing products are overpackaged. These results lead to optimistic recommendations for marketing managers and public policy makers to help them solve the ethical dilemma linked to overpackaging. (shrink)

In order to understand how the environment influences business owner/managers’ attitudes towards tax morale, we build a theoretical model based on a neo-institutionalist framework. Our model combines three complementary perspectives on institutions—normative, cultural–cognitive and regulatory–instrumental. This enables a broader understanding of factors that influence business owner–managers’ attitudes towards tax evasion. We test the resulting hypotheses using regression analysis on survey data on business owner/managers in Latvia—a transition country, which has undergone massive institutional changes since it was part of the Soviet (...) Union over 25 years ago. We find that legitimacy of the tax authorities and the government, feeling of belonging to the nation and perceptions of the risk and severity of punishment are all associated with higher tax morale for business owners and managers. (shrink)