Price sensitivity versus ethical consumption: a study of Millennial utilitarian consumer behavior

Abstract

Millennial consumers have been associated with a preference for environmental, socially responsible, and high-tech products; they have also been known to be quick spenders tending to hedonistic consumption; however, there is not much consensus on the generation’s behavior. The question is, are Millennial consumers more prone to price sensitivity or ethical consumption of utilitarian products? The main objective of the empirical study was to explore Millennial utilitarian consumer behavior in reference to their degree of price sensitivity and ethical consumption, and preference to purchase from a firm engaged in corporate social responsibility (CSR). In order to do so, two models were developed, each focused on a different utilitarian product, to analyze Millennial consumer behavior regarding price sensitivity and ethical consumption. Results show that Millennial consumers are less price sensitive in regards to product attribute, and favor ethical consumption over price when CSR engagement is revealed.