gupea_2077_44872_3

Master Degree Project in Logistics and Transport Management
Combination of Sustainable Supply Chain Management

and Green Marketing: Customer Expectations in Furniture
Retail
Veronika Arnold
Supervisor: Michael Browne

Master Degree Project No. 2016:70
Graduate School
Abstract
Sustainable supply chain management contributes significantly to make a product more

sustainable, like by the use of raw materials from more sustainable, decrease in carbon footprint due
to lighter material weight or increased transport efficiency and new technologies, or recyclability. With
the emergence of an increasing demand for sustainable performance in the corporate world, and thus
more sustainability communication, surprisingly sustainable supply chain or logistics related
information is rarely included into a green marketing strategy.
This research examines to which extent a customer values sustainable supply chain related
information about a product or a company in retail furniture. Motivation is fill the mentioned gap in
academic research that stresses a missing link between sustainable supply chain management and
green marketing. The research is conducted to provide advice whether or not a customer
communication strategy for sustainability is needed for the furniture retailer IKEA Deutschland GmbH
& Co. KG at the retail store Hamburg-Moorfleet. It respects which information are interesting for the
customer and through which medium it shall be communicated.
The 6Ps Hub-and-Spoke Integration Model provided by Liu, et al. (2012) forms basis for a customer
survey executed at the retail location and online in order to examine the customer´s attitude towards
green supply chain management related information about products or the company while purchasing
furniture.
The analysed data disclosed a profound interest in such information on product level specifically
about material origin, recyclability and reverse logistics, and customers´ own green benefits. Such
information ought to be communicated prefereably in form of a product tag, as poster or on the
webpage.
Keywords: sustainable supply chain management, green supply chain management, green
marketing, sustainability, retail, furniture
Declaration
I declare that all materials in this project report that are not my own work have been acknowledged
and I have kept all materials used in this research, including samples, research data, preliminary
analysis, note and drafts, and can reproduce them on request.
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The ‘don’t be sad throw it away thing’ would be

completely incompatible with the IKEA of today.”
Steve Howard, IKEA´s chief sustainability officer
March 2015
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Table of Contents
1 Introduction ......................................................................................................................... 1
1.1 IKEA and CSR........................................................................................................................ 2
1.2 Business Problem and Purpose of Research ....................................................................... 4
1.3 Research Question and Potential Outcome ........................................................................ 6
1.4 Structure of the Report ....................................................................................................... 7
2 Literature Review ................................................................................................................ 8
2.1 Evaluation of existing Body of Knowledge .......................................................................... 8
2.1.1 Sustainability and CSR ................................................................................................. 8
2.1.2 Sustainable Supply Chain Management .................................................................... 10
2.1.3 Environmental Marketing.......................................................................................... 12
2.1.4 Gaps in Literature ...................................................................................................... 14
2.2 Theoretical Framework ..................................................................................................... 15
2.2.1 Expanded Focus in Marketing ................................................................................... 16
2.2.2 6Ps Hub-and-Spoke Integration Model ..................................................................... 17
2.2.3 Communication Channels.......................................................................................... 20
3 Methodology ..................................................................................................................... 21
3.1 Identification of Paradigm ................................................................................................. 21
3.2 Method Approach ............................................................................................................. 22
3.2.1 Data Collection Process ............................................................................................. 23
3.2.2 Purpose of Survey´s Questions .................................................................................. 24
3.2.3 Link to Hub-and-Spoke Framework ........................................................................... 28
3.2.4 Methods of Analysis .................................................................................................. 29
3.3 Delimitation of Research Design ....................................................................................... 30
3.3.1 Generalizability .......................................................................................................... 30

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3.3.2 Validity ....................................................................................................................... 31
3.3.3 Reliability ................................................................................................................... 31
3.3.4 Limitation of Methodology........................................................................................ 32
4 Results and Discussion....................................................................................................... 33
4.1 Results ............................................................................................................................... 33
4.1.1 Customer segmentation, their image perceptions and opinions about the company
34
4.1.2 Customer´s expectations and values related to products and services .................... 37
4.1.3 Communication media .............................................................................................. 40
4.2 Interpretation and Discussion ........................................................................................... 42
4.3 Recommendations............................................................................................................. 47
4.3.1 Employee Education .................................................................................................. 47
4.3.2 Product Specific Communication .............................................................................. 48
4.3.3 Poster......................................................................................................................... 50
4.3.4 Further Ideas ............................................................................................................. 52
4.4 Challenges.......................................................................................................................... 53
5 Conclusion ......................................................................................................................... 54
5.1 Limitations of Research ..................................................................................................... 57
5.2 Implications of Research ................................................................................................... 57
6 References ......................................................................................................................... 59
7 Appendices ........................................................................................................................ 65
7.1 Appendix 1 ......................................................................................................................... 65
7.2 Appendix 2 ......................................................................................................................... 65
7.3 Appendix 3 ......................................................................................................................... 68
7.4 Appendix 4 ......................................................................................................................... 73
7.5 Appendix 5 ......................................................................................................................... 74
7.6 Appendix 6 ......................................................................................................................... 78
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Table of Figure
Figure 1 Classical and Expanded Focus of Marketing....................................................................... 16

Figure 2 6Ps Hub-and-Spoke Integration Model .............................................................................. 18
Figure 3 Question 1 .......................................................................................................................... 35
Figure 4 Question 2 .......................................................................................................................... 36
Figure 5 Question 3 .......................................................................................................................... 36
Figure 6 Question 4 .......................................................................................................................... 37
Figure 7 Question 5 .......................................................................................................................... 39
Figure 8 Question 7 .......................................................................................................................... 39
Figure 9 Question 8 .......................................................................................................................... 40
Figure 10 Question 9 ........................................................................................................................ 41
Figure 11 Store Communication and Storytelling ............................................................................ 51
List of Abbreviations
B2B Business to Business
B2C Business to Customer
EM Environmental Marketing
GM Green Marketing
GSCM Green Supply Chain Management
IWAY IKEA Way on Purchasing Products, Materials and Services
SSCM Sustainable Supply Chain Management
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Acknowledgments
I would like to express my deep gratitude to Professor Michael Browne, my research supervisor, for
his patient guidance, enthusiastic encouragement and useful critiques for this research work. I would
also like to thank him for his advice and assistance in keeping my progress on schedule. His willingness
to give his time so generously has been very much appreciated.
Same thanks go to André Tecklenborg and Carsten Trost of IKEA Deutschland GmbH & Co. KG at the
business location Hamburg-Moorfleet for enabling me to visit their office to conduct my research,
generate data and to observe the daily operations.
Moreover, I would like to thank all participants of the survey and those that have encouraged me
throughout the entire progress of my thesis.
----------------------------------
Veronika Arnold
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1 Introduction
This chapter will introduce the background of the study to the reader. It further provides a short
presentation of the unit of analysis. Moreover it will explain the business problem of this company and
thus the purpose of the research. The research questions will be stated, followed by a short description
of the report structure.
It is evident that we are living in a world of limited resources that challenges us increasingly not only
to start thinking about, but more importantly, living a more sustainable lifestyle. This is relevant for
every individual but also any corporation. According to Piecyk and Björkund (2015) corporate social
responsibility can be seen as a corporation’s commitment to a sustainable development. However,
sustainability in business environment has not always been like today. Only since the second half of
the twentieth century, policies and programs emerged to prevent pollution and the depletion of
natural resources such as air, water and soil. Moreover, labour practices violating human and social
rights were added to the list, as well. These governmentally imposed laws, regulations and guidelines
resulted from the criticism about companies merely focussing on economic performance and
immediate profitability instead of society-integrative fair commercial behaviour with long-term vision
(Piecyk & Björklund, 2015). Nowadays, the sustainability aspect has grown significantly, not just to
make a contribution back to the society, but also as a result of economic considerations related to
increased efficiency, cost-cutting or reputation (Banerjee, et al., 2003; Ko, et al., 2013; Sharma, et al.,
2008)
In retail sector 1, environmentally conscious stakeholders commenced to demand more sustainable

or greener products, which corporates need to respond to with a corresponding product portfolio
respecting their environmental and social impact. As a reaction to this trend of ´greenification´,
innovation, the implementation of new technology, sophisticated product engineering or more
efficient and sustainable operations have been developed to decrease both resource dependency and
environmental harm. This is also the case for IKEA, which will be the discussed subject of this paper.
To be more specific, sustainable supply chain management (SSCM) is an emerging and omnipresent
phenomenon with increasing relevance to this trend. When it comes to the provision of any product
SSCM integrates all operations that have impact on the final product´s materials, transport and
distribution and disposal, and will therefore be addressed in this research.
1
Particularly the grocery retail has experienced a strong demand for organic and ecological products
(Edelmann & The Consumer View, 2011).
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Although governmentally imposed regulations and a sub-set of environmentally conscious

consumers have forced corporates to become less environmentally harming and that they should re-
think their conventional business practices, still many people lack a profounder understanding of the
importance to conserve our planet´s resources for the sake of future generations. In order to support
the previously mentioned two actors, to get the ball rolling and to have greater impact, it is argued,
that large multinational companies have the power to educate all people beyond the “greener-
thinking” part of the population (Deng & Huang, 2009). As a result, transparency has become crucial
for both the corporate world and consumers. In a typical buyer-driven market, like the furniture market
is, customers are increasingly aware of business practices due to the usage of the Internet and social
media but also due to globalization. Bearing this in mind as a consequence as corporate, green
marketing (GM) has become a crucial element to communicate one´s sustainable business practices,
and thus will be discussed in the pursuit of this research. Yet, these two business areas of SSCM and
GM still seem to be hardly linked, which provides reason for this paper.
The first chapter introduces the furniture retailer IKEA with respect to its CSR actions. Further it
states the business problem of IKEA and the subsequent purpose of this research in respect to
sustainable supply chain management and green marketing. The research question is pointed out. The
chapter concludes with the structure of the report.
1.1 IKEA and CSR
Ingvar Kamprad established IKEA AB in 1943 with the vision to create a better everyday life for the
many people (IKEA, 2012a). Firstly, selling only pencils, wallets, picture frames and other rather small
items, the company introduced furniture in 1948 manufactured locally, and expanded its range and
business constantly from then on. Approximately ten years later, the first store opened with self-
assembly furniture (IKEA, 2012b). The company expanded quickly into the Norwegian, Danish, Swiss
and German market. Australia, Austria and the Netherlands followed in the end of the 1980s (IKEA,
2012b). Since retailing is an industry that is closely related to its environment, which is constantly
subject to change, retail is of highly dynamic nature, as well. In line with the evolvement of CSR, in
1990, the first environmental policy was launched ensuring the company and its co-workers to take
environmental responsibility since firms´ were challenged to produce more ethically and reduce their
environmental footprint for the first time. Already in 1993 IKEA becomes member of the Forest
Stewardship Council (FSC), employing the first forestry manager in 1998 (IKEA, 2012c). Believing that
good business can be done “while being a good business” 2000 the code of conduct Ikea Way on
Purchasing Products, Materials and Services (IWAY) was published. Driven by the guiding principles of
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“What is the best interest of the child, the worker and the environment?” IKEA claims compliance with
the Fundamental Principles of Rights at Work, the International Labor Organization (ILO) declaration
June 1998 and the Ten Principles of the UN Global Compact 2000. These fundamental rights comprise
among others the prevention of child or forced labor, corruption, severe pollution and health or safety
hazards and the provision of fair working conditions and worker´s accident insurance (IKEA Services
AB, 2012; IKEA, 2012d). Co-operation with NGOs like Greenpeace and World Wide Fund For Nature
(WWF) for better cotton cultivation followed in 2005. Further to that, IKEA has launched climate
projects with WWF to reduce emissions of greenhouse gases produced by IKEA and supplier´s
operations since 2007 (IKEA, 2012d). In 2011, IKEA Group published an approach to sustainability on
how they manage sustainability in their business with focus on customers, environment, suppliers, co-
workers and communities (IKEA Group, 2011). In the years of 2010 and 2011 the direction of
sustainability was defined by five cornerstones. Firstly, to create a range of products that are more
sustainable, secondly to be a leading role towards a low carbon society, thirdly to turn waste into
resources, fourthly to reduce water footprint and lastly to take social responsibility (IKEA Group, 2010;
IKEA Group, 2011). Based on these targets, IKEA succeeded in developing a People & Planet Positive
strategy in 2012 (IKEA Group, 2012). The following years, the sustainability reports display a yearly
improvement in the fields of the earlier mentioned five cornerstones. In line with these five bases, the
Democratic Design was put into practice, which is embodiment of form, functionality, quality,
sustainability and price in each product (IKEA, 2016; IKEA, 2014). In 2012, IKEA implemented a new
practice that enhanced the repair of products instead of wasting them to foster its reverse logistics
and recovery (IKEA Group, 2012). In 2013 a 100% IWAY approval was achieved of all home furnishing,
components and goods transported and global food supply (IKEA Group, 2013). And in 2014 IKEA
presented itself with a strong commitment for a “go all-in” approach towards sustainability,
announcing a transformational change. That was explanatorily realized in 2015 by selling only LED-
bulbs for lightning and completely phasing-out old-fashioned classic light bulbs, where IKEA achieved
great scalability 2 (IKEA Group, 2014; IKEA Group, 2015). This was maybe the only example of
sustainable supply chain management and green marketing that has been communicated sufficiently
and successfully in store. Today, IKEA is working in a highly fragmented market with high spatial
dispersion. In 2016, IKEA is operating in 43 countries having 328 stores in 26 countries offering 9,500
products with a net profit of 3.5 billion Euro which is an increase of 5.5% to the previous financial year
2014 (IKEA Group, 2015). The company has achieved 31.9 billion Euro total sales (14.9 in 2005) being
11.2% more than the previous year and a 1.6 billion Euro food turnover (IKEA Group, 2015).
2 See principles of the definition of CSR 2.0 by Visser (2008) under 2.1.1.
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While this section provided a short overview of IKEA´s global CSR development of the last decades,
the next paragraph will focus on the recent challenge faced at the retail store Hamburg-Moorfleet in
Germany.
1.2 Business Problem and Purpose of Research
Business problem
As one of many large companies, IKEA has developed and expanded its sustainability activities
within the last decades in order to improve social equitability and environmental soundness while
being economically feasible. This corporate behavior is called triple bottom line performance (IKEA
Group, 2010-2015). However, various activities IKEA is engaging in are left unknown to the customer
and even for some of its employees. Particularly supply chain operations and logistics have evolved
and improved in terms of sustainability which is fundamental part of every single product´s
characteristics (IKEA Group, 2010-2015). Nevertheless, this ´supply chain-product´ interrelatedness is
hardly part of a structured external marketing strategy, which instead is more focussing on either
storytelling about product engineering and design, or price. When walking through the retail store,
price tag offers exceed the sustainability communication by far, and although IKEA is yearly publishing
sustainability reports online for the last decade, topic-specific communication exists insufficiently in
stores. As broached briefly, if employees are hardly aware of the sustainability reports themselves,
how are they supposed to communicate this topic to the customer in store when they offer advice on
products and shopping? Apart from that, it is also unclear which information the customer generally
wants to know.
By its sustainability engagement, IKEA aims among others to achieve a transition in its general
image perception of its customers (Hullinger, 2016). Therefore, it is in the need to modify customers´
opinion that IKEA represents disposable consumerism, since some argue that IKEA is still rather
recognized as a producer for throw-away than for long-lasting furniture (Kowitt, 2015; Hullinger, 2016).
The sustainability manager Steve Howard forms proof of an existing internal awareness by stating in
March 2015 that “the ‘don’t be sad throw it away thing’ would be completely incompatible with the
IKEA of today.” (Kowitt, 2015). As listed by Ko, et al. (2013), there is plentiful studies proving evidence
of a positive correlation between corporate image and purchase behavior or loyalty 3. Since loyalty
means long-term survival on the market place, this is of essential importance.
3
Studies were conducted by David et al. 2005; Kang & Yang, 2010; Keh & Xie, 2009; Lee et al. 2010; Miles & Covin,
2000 cited in Ko, et al. 2013.
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So how can the image be changed in a constructive manner while leveraging information about
sustainability in respect to the supply chain and the customers’ needs? In order to answer this
question, it is not just about pushing any sustainability-related information pro-actively to the
customer. It demands a dialog with the consumer instead in order to investigate which type of
information he or she values and wants to be informed about.
Purpose
Based on this area of concern outlined above, the purpose of this research is to investigate whether
or not and what kind of sustainable supply chain related information is valued by the customer while
purchasing furniture. The results will influence how a potential sustainability-focussed customer
communication strategy in store will be designed. This study can help to provide IKEA with sufficient
insights into customers´ opinions in order to change their image perception on long-term. With this
knowledge IKEA can demonstrate a clearer environmental position in the market, be cited as successful
environmental marketing example, and can communicate the company´s identity better to obtain a
stronger ecological reputation, to gain advantages over its competitors (Sharma, et al., 2008). In-store
communication not just opts to target the sub-set of environmentally conscious customers, that
otherwise would have been ignored, but in fact all customers to foster everyone´s commitment
towards more sustainable living (Winsemius & Guntram, 1992 cited in Sharma, et al. 2008).
From the academic point of view researchers have identified a gap in literature. It is argued that links
between supply chain management and marketing are insufficient, and need to be developed. Until
now a practical implementation of sustainable supply chain management and green marketing in the
corporate world in particular has not been addressed in literature. SSCM is responsible for the products
green credentials and attributes. Still the marketing industry is not really refering to the processes and
activities that are involved in the value adding procedures of the end-product. Consequently, it gives
further motivation for this research that aims to do so (see 2.1.4). Since SCM contributes significantly
to a product´s attributes it is of utmost importance to link this knowledge with marketing, which gives
further justification to bring them together.
Thus, objective is to build a bridge between the two practically rather unlinked business units supply
chain management and marketing in order to communicate the sustainability aspect better within the
retail store IKEA Deutschland GmbH & Co. KG at the business location Hamburg-Moorfleet to raise its
sustainable pro-activeness, image and competitive advantage, as pointed out by the deputy store
manager André Tecklenborg in spring 2016. It provides a practical solution by the usage of an
exploratory survey on how to target the mentioned challenge.
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1.3 Research Question and Potential Outcome
This research aims to investigate to which extent sustainable supply chain activities are perceived
as relevant from the customer´s point of view when buying furniture. The researcher wants to
investigate, whether sustainable supply chain management and green marketing are still unlinked
because there is no demand from the customers for it, because corporates haven’t adapted to recent
customers interests or are unable to promote sustainability correctly on product level. As a
consequence the following research question shall be answered:
“To which extent do customers value sustainable supply chain management related information
about a product or the company while purchasing furniture?”
Within this main research question there are three more questions that emerge:
a) What has to be done in order the change the image perception from customers about IKEA?
b) What sustainable supply chain related initiatives or information in particular matter to the
customer? (procurement, distribution logistics, reverse logistics)
c) How shall this information be communicated?
Potential Outcome
The outlined questions shall help to investigate which exact supply chain related information are
relevant to the customer and how to implement green marketing in furniture retail more successfully.
So, how does this knowledge help IKEA to be perceived as more sustainable and how can it be
communicated that customers recognize IKEA today differently from the IKEA from 10 years ago?
(throw-away society vs. sustainability)
If the customer perceives this information as relevant, then IKEA should certainly promote
sustainable supply chain related information on product level. If the customer, however, does not
perceive these information as relevant, then IKEA can either (a) discuss if they promote sustainability
on product level anyway in order to have an educative role (as suggested in the introduction) and
influence the customer for future generations sake or (b) try to communicate the aspect of
sustainability differently only on superior level. (e.g. only per HFB, in sustainability report, …).
Contrarily, another outcome could be that the customer is not interested at all in such type of
information, and thus would rescind the relevance of a green marketing strategy implementation.
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After all, the obtained information shall help to elaborate a more structured customer
communication strategy in respect to sustainable supply chain management and marketing on product
level at the store Moorfleet with the aim to foster transparency, reputation and customer loyalty on
long-term. This could be in form of employee training and alternative marketing strategies than the
sustainability report, which will be further elaborated under 4.3.
1.4 Structure of the Report
The structure of the report sketches out how the research questions are addressed. The second
chapter Literature Review familiarizes with the main definitions, gaps in literature are pointed, and
theoretical frameworks are introduced. The third chapter Methodology explains the research methods
how the research questions are solved by focusing on data collection by the use of a survey, and the
data analysis. The delimitations of the research design follow. The fourth chapter displays the results
and their interpretation and discussion. Furthermore recommendations are given and challenges
listed. The conclusion in chapter five summarizes the research results and its implications.
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2 Literature Review
Since the research aims to build a bridge between sustainable supply chain management and green
marketing, this literature review aims to approach the subject systematically by presenting the most
influential previous research about the key terms. To obtain a versatile understanding, in the following
section corporate social responsibility (CSR) and sustainability, sustainable supply chain management
and logistics, and environmental/green marketing are explained and discussed, and their important
features are going to be drawn out.
2.1 Evaluation of existing Body of Knowledge
The study begins with a comprehensive literature review on sustainability in relation to logistics
and marketing. For the evaluation of the existing body of knowledge, journal articles, books,
publications from IKEA, interviews and surveys have been consulted in the timespan from 1987 until
2014 that were both of qualitative and quantitative research nature. Research keywords inserted into
data bases such as the one from Gothenburg University, Google Scholar and Zentralbibliothek für
Wirtschaft in Hamburg were sustainability, sustainability in logistics, CSR, green logistics, retail
marketing, environmental marketing, environmental marketing AND retail, customer communication.
All articles were listed and categorized to keep track of the progress. Each reference was stored
digitally and as hard copy according to author (digital) and chronologically according to date of reading
(hard copy). A literature list was created separately based on citations in previously read articles. As a
result, most important literature has been found through cross-references in journal articles.
2.1.1 Sustainability and CSR
Most research refers to the ´Brundtland Report´ from 1987 from the World Commission on
Environment and Development (WCED) that defines sustainability as the ´development that meets the
needs of the present without compromising the ability of future generations to meet their own needs´
(WCED, 1987, p. 41).
In addition, Dahlsrud analyzed in a threefold research (literature review, content analysis, and
frequency counts) 37 definitions of Corporate Social Responsibility (CSR) in 2008. Although, he
included only definitions of the timespan from 1980 to 2003 and from European, American, Canadian
and Indian origin, the result of this research has been broadly acknowledged as independent and as
valid definition nowadays. Dahlsrud defined CSR as a phenomenon by the use of five criteria, which
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are dimensions related to environmental, social and economic behavior, stakeholder relationship and
voluntariness (2008, p. 4) (see Appendix 1). Surprisingly, the elaborated dimension scores and ratios
concluded, that the social and stakeholder dimension ratio appeared to be the most important ones
with 88%, while the environmental dimension ratio only counted for 59%. Dahlsrud (2008) explained
that environmental responsibility was not included in the CSR definitions from the very beginning and
was later defined separately as ćorporate environmental responsibility´ by the World Business Council
for Sustainable Development (WBCSD). However, all dimensions of Dahlsrud´s definition exceed the
ratio of 50% and are generally acknowledged and used in literature and practice. It can be assumed
that the environmental dimension has evolved to a much more important dimension than it was in
2008. Although not directly refuted, the remaining supposition that the definition of CSR might have
changed over the last decade is made concrete in Visser´s research from 2014 “CSR 2.0 Transforming
Corporate Sustainability and Responsibility” in which he further developed the characterization of CSR.
In contrast to Dahlsrud´s definition (2008), Visser (2014) explains the failure of CSR 1.0 (based on
Dahlsrud), developed a new typology and offers guidance on how to manage the challenges of
sustainability in the context of today´s globalized business world. CSR 2.0 is characterized by innovative
partnerships and stakeholder involvement (Visser, 2008, p. 38). The principles of CSR 2.0 are creativity,
scalability, responsiveness, glocality 4, circularity that are all explained in detail under Appendix 2. Fact
is the environmental compound still plays a significant role in the definition of CSR.
Complementary to Dahlsrud and Visser, Baumgärtner and Quaas (2007) said that the ímperative
of sustainability´ is an íntergenerational fairness´ by which today´s resources are not exploited but
maintained for the use of both present and future generations (p. 2). In accordance with Neumayer
(2003), both researchers distinguish between weak and strong sustainability (cited in Baumgärtner &
Quaas, 2007). Findings from Daly and Cobb (1989), Ekins et al. (2003), Ott and Döring (2004) and Pearce
et al. (1989) suggest that weak sustainability encompasses the preservation of aggregated natural
resources, hence a non-diminishing prosperity of our resources. Strong sustainability in contrast makes
a difference between raw and value-added/manufactured resources (cited in Baumgärtner & Quaas,
2007). It claims that these two types of resources shall be conserved separately which means that a
decrease in natural resources cannot be compensated by economic resources (Baumgärtner & Quaas,
2007, p. 2). In the lack of precise knowledge about next generations’ preferences, strong sustainability
proponents believe that we have a ´precautionary responsibility´ towards next generations
(Baumgärtner & Quaas, 2007, p. 2).
4
Glocality is a portemanteau of global and local (Visser, 2008, p. 58).
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Dahlsrud and Visser give complementing definitions and provide a full picture of what sustainability
and CSR entails. These two terms will be used equivalently in the course of this research. These
explanations shall help to better understand the meaning and scope of sustainability in general and
shall form the foundation for further analysis of IKEA´s business in chapter four.
2.1.2 Sustainable Supply Chain Management
This section explains the term sustainable supply chain management.
The term supply chain management (SCM) has become increasingly common in a business context
(Touboulic & Walker, 2015). According to Stock and Lamber (2001) SCM is ´the integration of key
business processes from end user through original suppliers that provide products, services, and
information that add value for customers and other stakeholders´ (cited in Larson & Halldorsson, 2004,
p. 18). A supply chain is comprised of three or more directly linked companies that stand in interaction
to each other. Sustainable supply chain management (SSCM) or also green supply chain management
(GSCM) is, as per Carter & Rogers (2008), ´the strategic, transparent integration and achievement of
an organizations´ environmental, social and economic goal in the systematic co-ordination of key inter-
organizational business processes for improving the long-term economic performance of the individual
company and its chains´ (p. 368). Touboulic and Walker (2015) found in their literature review an
increasing amount of literature about SSCM since 2008, which shows the growing relevance of the
topic. In literature SSCM is also referred to as closed-loop supply chain management or green supply
chain management (Chan, et al. 2010; Wong, et al. 2015). In the pursuit of this research the term SSCM
will be used, since it is in accordance with the theoretical framework being discussed under 2.2.2.
Closed-loop SCM integrates the backward logistics of items that are not desired any longer. This is also
reflected by Wong, et al. (2015), who discusses the integration of environmental management into
supply chains, claiming that green supply chain management or integration consists of the integration
of énvironmental concerns into the inter-organizational practices of SCM including reverse logistics´
(Sarkis, et al. 2011 cited in Wong et al. 2015, p. 50). Wong, et al. (2015) promote a clear connection
between sustainability and supply chain management. By mentioning that it is possible to be ´green
and efficient´, they confirm that enhanced environmental actions can improve both operational and
financial performance (Wong, et al., 2015, p. 58). These actions include for instance the reduction of
energy consumption and hazardous materials, consolidation of transport or the integration of reverse
logistics.
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Based on Larson and Halldorsson´s research from 2004 logistics is perceived as part of supply chain
management (Larson & Halldorsson, 2004). Unionists 5 see logistics as a part of the SCM whereas SCM
is characterized as more complex. According to Konezny and Beskow (1999), SCM bundles the
components of logistics, strategic planning, information technology, marketing and sales (cited in
Larson & Halldorsson, 2004, p. 20). Since the research aims to combine SSCM and GM, it is more
suitable if logistics is perceived as a sub-set of SCM.
Logistics is the planning, organisation, coordination and control of material-, information- and service
flows respecting the aim of providing right quantity and quality of the right good at right time and place
at right price (Arnold, et al., 2008, p. 1f.; BVL, 2016; Beyer, n.a., p. 2f.). Logistics is subdivided into the
five common areas information, procurement, production, distribution and disposal (Beyer, n.a., p.
2f.). Information logistics ensures proper information exchange within the company, between
company and suppliers or company and customers. It has become increasingly important since
approximately 75% of all employees rather work with information than with materials in producing
industries. Procurement logistics copes with optimal provision of raw, auxiliary and operating materials
from market into production (Arnold, et al. 2008, p. 1f.; BVL, 2016). Distribution logistics takes care of
internal and external processes regarding the goods flow within the value chain. Disposal or reverse
logistics is responsible for the environmentally friendly and economic disposal or reclamation of waste
products. Less prominent, but still relevant additional logistics areas are personal, spare parts,
warehouse and service/ maintenance logistics.
As mentioned in the paragraph about SSCM, reverse logistics plays a crucial role in greener logistics
(Soosay, 2013). In contrast to traditional forward logistics from manufacturing to distribution, reverse
logistics copes with the processes and resources involved in up-stream movements from customer to
manufacturer and suppliers like in the case of ´returns, repairs, remanufacture, refurbishing, and
recycling´ (Soosay, 2013, p. 65). Soosay (2013) mentions that reverse logistics is a ´recent and growing
concern´ and proves that it has become increasingly common in organizations to emphasize social
responsibility, and to maintain customer satisfaction and loyalty (p. 66). Reasons are increased
amounts of returned goods and the need for investment to establish appropriate processes to be in
place. Customer returns appear due to change in mind, wrong functionality, safety and health issues,
in-store reimbursement options and warranty issues or end-of-use of a product´s life. Contrary to
previous literature, Soosay (2013) found out that the return policy is rather a result of socially
responsible than profitability-driven behavior, which is confirmed by Liu et al. (2012) who states, that
5
Traditionalist see SCM as a part of Logistics. Intersectionist see Logistics and SCM as two concepts that have an area
in common. Intersectionists do not define SCM as the union of marketing, operations management, logistics,
purchasing and other functional areas but as the integration of ´strategic, integrative elements from all of these
disciplines´ (Larson & Halldorsson, 2004).
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increasing legislation, producer responsibility and take-back obligations are reasons for the set-up of
collection and recycling systems leading to closed-loop SCM. Within this research the logistical sub-
groups of procurement, distribution and reverse logistics will be of relevance, since these aspects can
be analyzed and later promoted to the customer in the retail store.
Summarizing, especially logistics and transport is responsible for many kinds of negative
externalities such as visual intrusion, noise, air pollution, accidents, vibration and soil sealing, that
diminish the prosperity of our resources and environment. Consequently, the scope is broad for
logistical improvement. According to Bretzke and Barkawi (2010), opportunities in green logistics are
an increasing efficiency, transferring freight towards other modes than road, avoiding transport,
adaption and restructuring of logistics systems or process architecture and implementing corporate
business models (cited in Haider and Aschauer, 2013, p. 4f.). Complementing academic research and
proved by González-Benito and González-Benito (2006), an increased stakeholder pressure has
impacted companies´ contribution to environmental logistics practices. Based on the literature,
sustainability is wanted from customers, and needed from companies in order to become more
efficient. It mutually is demand and imperative or necessity. If customers really demand more
sustainable logistics actions will be investigated in this research.
A company´s commitment to all these aspects can be promoted and communicated to customers
in order to gain trust from stakeholders, while commitment and reputation can be leveraged (Wong,
et al., 2015). How this is going to be done, is explained in the next paragraph.
2.1.3 Environmental Marketing
It can clearly be pointed out, that sustainability in SCM is not only meant to be good for a company´s
performance but also for brand and business reputation (see SSCM). However, this needs to be
communicated somehow, where marketing plays a crucial role to communicate one´s business
commitment to greener operations and commerce to the end-customer. However, Wong, et al. (2015)
already mentioned in their research a lack of the integration of environmental marketing and customer
communication in order to include external stakeholders like customers better.
As previously stated, increased institutional regulations and stakeholder pressure and customer
demand enhanced not just SSCM but also the emergence of environmental marketing (EM) (Liu, et al.,
2012; Sharma, et al., 2008). Whereas the official academic definition of marketing defined by The
Chartered Institute of Marketing is that ´marketing is the management process responsible for
identifying, anticipating and satisfying customer requirements profitably´, the essence of EM is the
´holistic management process responsible for identifying, anticipating, and satisfying the requirements
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of the (green) consumers and society, in a profitable and sustainable way´ (CIM, 2016; Peattie, 1995
cited in Nair & Ganesh, 2013, p.77). EM is synonymous to green, ecological, sustainable or
enviropreuneurial marketing (Charter 1992; Ottman, 1993; Apaiwongse, 1994; Van Dam and
Apeldoorn, 1996; Nenon and Nenon, 1997 cited in Nair and Ndubisi, 2011). In the pursuit of this
research the term ´Green Marketing´ (GM) will be used, since it is in accordance with the theoretical
framework being discussed under 2.2.2. The core aspect of GM, sustainability in business, aims to
enhance internal environmental strategy building and performance, and therefore shall have a positive
impact on external corporate reputation, as found out by Menon and Menon (1997). This viewpoint
also leads to the philiosophy of corporate environmentalism, as defined by Banerjee, Iyer, and Kashyap
(2003). According to Ottman, et al. (2006), GM has the twofold aim to communicate the environmental
as well as the functional benefits of green products (cited in Nair & Ganesh, 2013). While Ottman et
al. (2006) seem to acknowledge only the commuication of the supply side, new functions of green
marketing arise like the ´demand stimulation for recycled and remanufactured products´, introduction
of sustainability labeling schemes and the education of consumers to consume “greener” (Sharma, et
al., 2008; De Boer, 2003; Polonsky, 2011).
Despite all the new emerging marketing schemes, consumer behavior still remains partly unclear.
De Boer (2003) says that although many consumers make an environmentally conscious purchasing
decision on one product, there is no guarantee of a similarly ´motivated choice in the context of´
another product group (p. 259). The food industry seems to be the most analyzed industry in that sense
which can be argues with the daily consumption of the products and the direct effect on health. A
survey conducted by Edelmann and The Consumer View in the food industry in 2011 revealed that
sustainability-conscious consumers (404 people asked) would rather do something good for
themselves at first place than for the planet (Edelmann & The Consumer View, 2011). This consumer
behavior reveals a rather egoistic than altruistic sustainable consumption (Edelmann & The Consumer
View, 2011). Based on Russell and Russell´s research from 2009 about consumers´ egocentric
tendencies, Polonsky (2011) defines these egoistic consumers as ´micro-focused individuals´ (p. 1312).
Fact is, consumption of a greener product only takes place, when the consumer knows that he or she
is better off and is not forced to make a trade-off between sustainability and quality or functionally.
Although only focusing on the wood industry (but therefore relevant for furniture retail), Anderson
and Hansen (2004) support that statement by identifying the relative importance of wood certification
based on a survey. It showed, that environmental certification is a favorable product attribute,
however is outweighed by other attributes. Nevertheless, this survey and also research from O´Brien
and Teisl (2004) and Aguilar and Vlosky (2007) showed an increased willingness to pay for certified
forest products, which could be of importance when it comes to market segmentation and targeting
particular consumers. Chouinard also fortifies that idea in a feature from Yale Insights in 2010 by
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stating that a product today has to be a win-win situation of getting performance and lower costs, that
and it is the company´s responsibility to offer such a better product (Dhar, et al., 2010). The provision
of such products does not suffice, but has to be complemented by adequate labeling. This is
emphasized by De Boer (2003) who claims that product labeling shall combine ´functional and
aesthetical features, together with distinctive environmental and moral advantages´, which forms an
indication for quality and a ´benchmark of excellence´ (p. 257). In a series of studies from Walker,
Reczek and Zane from Fisher College of Business and Irwin from McCombs School of Business about
what information they would like to know when purchasing a pair of jeans, giving the answer options
of price, style, wash, child labor practices. They found, “that people will use ethical information if it’s
right in front of them, but they won’t seek it out. It’s a coping mechanism to avoid having to deal with
the bad feelings that will arise if you discover horrible practices” (Torres, 2016). This gives evidence
that product labeling seems important.
Further to that, Deng and Huang (2009) argue, that it’s the government’s role to educate
consumers, like making them understand the essence of better purchasing green products and
improving on consumer´s knowledge on environmental protection and society responsibility. Although
both consumers and corporates mostly lack macro-focus on environment which ís core of the
dilemma´ of a proper sustainability implementation, Polonsky (2011) however contradicts Deng and
Huang (2009) by stating, that this challenge is scope of corporations, and that marketers should
encourage individuals to embed environmental issues in their values and therefor change their
purchasing behavior (p. 1312f.). Hart (2005) has additionally argued that environmental sustainability
is best guided by business, since it ´leads to superior financial performance´ (cited in Sharma, et al.a
2008, p. 2).
In order to persist as a consistent market player, green marketing is of essential need to keep
customers, attract new ones and adapt to emerging demands of them based on constant interaction.
It is a medium of transparency that shall support positive reputation, loyalty and permit long-term
growth. It is thus of extreme importance for information exchange between corporate and customers.
2.1.4 Gaps in Literature
The first three sub-sections demonstrate how sustainability is defined, which aspects of supply chain
management are relevant for the pursuit of the research and why external green marketing is of
importance. However, Piecyk and Björklund (2015) or Touboulic and Walker (2015) pointed out that
deficiencies remain in literature about CSR and logistics since the first recognition by Carter and
Jennings in 2002. Touboulic and Walker (2015) have shown in their research that the term SSCM has
never been found in a marketing related journals (p. 27). This implicates that although SSCM is
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responsible for the products green credentials and attributes, the marketing industry is not really
refering to the processes and activities that are involved in the value adding process of the end-
product.
Furthermore, research has been done in order to strengthen green marketing. Nevertheless, Chan, et
al. (2012) argue, that ´green supply chain management and green marketing cannot be considered
separatelyánd that interfaces between the two are rather unclear (p. 558). Moreover as being pointed
out in Sharma, et al.´s research from 2008, external green marketing has never been emphasized in
reverse supply chain (remanufacturing and recycling), although there needs to be a higher end-
customer participation in recycling and recovery. He argues that enhanced ´relationship orientation
and commitment with the customers´, and a creation of incentives will foster an effective
implementation of reverse logistics (Sharma, et al., 2008, p. 9). Looking at green marketing in retail,
mainly organic food has been subject to a strong CSR and sustainability promotion recently, which is
mainly due to the obligatory labelling policy in Germany (Foodwatch, 2011). This might be because
food is a frequently bought consumer good that has direct effect on the consumer´s health and is
consumed by anybody. Other than that it has been subject to negative publicity related to fertilizer
misuse, gen manipulation and pesticide (Verbraucherzentrale, 2015; Bundesregierung, 2016).
To foster GM in other industries, Liu et al. (2012) firstly introduced a hub-and-spoke model for a multi-
dimensional integration of green marketing and sustainable supply chain management. However, the
work of Liu et al. (2012) is only focussing on a B2B context and leaves out precise solutions for the
retail market. It can clearly be pointed out that there is a lack of literature in combining these two
topics sufficiently.
2.2 Theoretical Framework
In the following section two theoretical frameworks will be described that have complementing
perspectives on environmental marketing. The second framework shall form guideline for the pursuit
of this research paper because it is the only framework, which respects both GM and SSCM in a closer
context to another, and is most suitable for the establishment for the exploratory survey, which will
be presented under 3.2.1. Additionally to this outline, some communication channels are presented
which will be relevant for later retail communication under 4.3.
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2.2.1 Expanded Focus in Marketing
Sharma, et al. (2008) expand the classical focus of marketing in respect to the emergence of green
marketing. They argue that “green” customers have to be targeted. Therefore, demand for
environmentally friendly, recycled, and remanufactured products need to be predicted, and
simultaneously promoted in order to react to the emerging demand. From supply side operational
tools have to be in place to support the greener demand by implementing processes like build-to-
order, reverse logistics, material recovery, design products for modularity and disassembly, and
adequate inventory management to avoid over production. Figure 1 gives an overview of the
description.
Figure 1 Classical and Expanded Focus of Marketing
Source: Sharma, et al. 2008, p. 8
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This expanded focus on marketing does not offer sufficient guidance and relevance for IKEA
because it is too general. Nevertheless, it was a starting point that yielded in the discovery of another
framework which will be explained in detail in the next abstract.
2.2.2 6Ps Hub-and-Spoke Integration Model
Liu, et al. (2012) developed the 6Ps hub-and-spoke integration model as a refinement to the
thoughts of Sharma, et al. (2008) from 2.2.1, which will be explained in this section and which is used
as guideline for the elaboration and evaluation of the survey in the pursuit of this research (see 3.2.1
and 3.2.2). Based on the preliminary findings this framework is also used to outline a potential
communication strategy under suggestions (see 4.3). With the help of this model it shall be identified
what is demanded from the customers and what is provided from sustainable supply chain
management’s side in order to establish a green marketing strategy, which is in line with customer´s
expectations and IKEA´s capabilities. It therefore creates a practical bridge between SSCM and GM.
The traditional marketing mix defined by the 4Ps, standing for product, price, promotion and place
is further developed by Violeta and Gheorghe (2009) (cited in Liu, et al. 2012, p. 582). Violeta and
Gheorghe (2009) suggest the Green Strategy Mix with six instead of four dimensions, including
product, promotion, planning, process, people and project that shall result in eco-efficiency (cited in
Liu, et al. 2012, p. 582). Even though, these dimensions bring together the scopes of the triple bottom
line of sustainability (economy, social aspects and environment), Liu, et al. (2012) claim that marketing
is only either implemented in the beginning of the supply chain through product design or at the end
through pure advertisement but the constant interaction of SCM and marketing is rather
underdeveloped. Therefore, they suggest a new theoretical framework with six dimensions, standing
for product, promotion, planning, process, people and project. Figure 2 visualizes the interaction of
the six dimensions, which will be explained in the following.
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Figure 2 6Ps Hub-and-Spoke Integration Model
Source: Liu, et al. 2012
By the use of the hub-and-spoke model, green marketing 6 (hub) is constantly interacting with
sustainable supply chain management through the usage of the six multi-dimensional perspectives,
the spokes. The hub-and-spoke acknowledges the classical marketing mix by integrating the two most
renowned dimensions product and promotion. Further, it builds a bridge to the SSCM by integrating
the dimensions planning and process that are crucial success factors at strategic and operational level.
The people dimension is representative for the social compound, and the project dimensions aims to
materialize, populate and illustrate the other five dimensions. Liu, et al. (2012) tested how these
parameters have been implemented in practice, and concluded that integration of green marketing
and sustainable supply chain management needs a multiple dimensional approach, which is given by
the usage of the elaborated framework.
6
The term ´green marketing´ is used equivalently to environmental marketing (EM) (see 2.1.3).
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The product-based integration focuses on knowing which green benefits from products really
matter to the customer. Products shall be innovative to help customers live a greener life. This can be
products consuming less energy, have less emissions, are recyclable, are made from reusable
materials, have less product packaging, or have minimized or no hazardous materials. Product life cycle
management strategies like product recovery services form part of this integration level. As to be seen
in Figure 2, green marketing and SSCM can be combined by investigating which of the green product
requirements are essential. This can only be ascertained by asking the customer directly.
The second spoke focuses on promotion-based integration including product labelling on

environmentalism and disposal, advertisement on greener products in justifiable, self-explanatory,
clear way, communicating company´s green credentials to stakeholders using “organic” and “energy-
efficient”. The communication shall be as truthfulness as possible, reflecting the green benefits in the
products´ prices and offers, so that customers know exactly what they are paying for.
The planning-based integration consist of the long-term ambition and commitment in

sustainability, presenting a clear vision and plans, setting clear environmental and social measures with
related KPIs and long-term budgeting to change bad into good or better practises. With the help of this
spoke and in accordance with the findings from the survey about customers´ attitude, suggestions can
be made for the future.
The strategic and operational process-based integration combines key capabilities, recycling,
reuse, refurbish, remanufacturing, manufacturing processes for energy efficiency, lean production,
quality improvement and waste elimination. This demands not only a sophisticated forward, but also
a well organised backwards supply chain management.
The people-based integration emphasizes that green customers are not left behind but form an
important target group, as also mentioned by Sharma, et al. (2008). Complementing their work, it also
points out the importance of top management involvement and that as much staff as possible work
together as team both from supply chain and marketing side.
The project-based integration besides the promotion of the previously mentioned five scopes, it
promotes environmental and community projects, has responsibility to set up environmental projects,
invest in community projects but also in national and governmental environmental and social projects.
This spoke is not directly integrated in the survey. However it will be reconsidered under 4.3 in respect
to a communication strategy, since it combines the other five dimensions.
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2.2.3 Communication Channels
Although Liu, et al. (2012) show that it is relevant to combine SSCM and GM, and give indication
which parameters have to be respected in order to do so, they do not provide sufficient guidance in
which way sustainability can be communicated in a retail store. As argued under 2.1.3, GM is not just
linking the green customer with the marketing mix it also bundles objectives such as satisfaction of
green customers, green product promotion or image improvement (Liu, et al., 2012). Generally
speaking green marketing can be perceived on product wrappings, in shelves, as information in media
or as worth-of-mouth.
So, what exactly is wanted to be achieved with green marketing is presented in the following. In
the case of IKEA, it clearly is a transition of the image perception, as outlined in 1.2. Studies on
corporate image show a positive correlation between corporate image and purchase behavior or
loyalty (Ko, et al., 2013). It is about promoting longer life and durability, so Sharma, et al. (2008). Fact
is, differentiation makes green marketing more successful and in order to be fruitful and effective, the
need of a win-win situation emerges. This means, that the eco-aspects shall complement the needed
functionality for an overall added value, as ascertained by Sharma, et al. (2008, p. 8). Hence, a
combination of functionality with sustainability-related information must be given to the customer.
There are various communication channels, which can be used in marketing. Customers can be
attracted in a written, visual and oral manner (Collis & Hussey, 2014, p. 28). In the retail all three media
can be used depending on what kind of information customers expect and are willing to be informed.
Talking about written advertising, product labels form part of written advertising. De Boer (2003)
argues, that labels are claims that state ´particular properties or features´ (p. 255). Sustainability
labeling is meant to be a disclosure of features and kind of ´quality assurance in the marketplace´ (De
Boer, 2003, p. 255f.). The usage of multi-sector labels help to distinguish organic or fair trade products
from others. IKEA, for instance, uses FSC-certification for its wood. These eco-labels declare the top 5-
30% of the products in a certain category from the perspective of environmental performance (OECD,
1997, p. 14 cited in De Boer, p. 257). So, why not integrating them in retail communication?
After all, pushing the right information to the customers can only be done, when knowing what
they want and need. Now, in order to become more specific for future activities and implementation
steps, the next section will present the research questions that will focus on IKEA´s customers in
respect to SSCM and GM.
The insights from the literature review will be of essential importance for the next chapter where
this knowledge will be applied to develop a survey.
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3 Methodology
In this chapter the underlying research paradigm and methods are described that are used to
investigate the research question “To which extent do customers value sustainable supply chain
management related information about a product or the company while purchasing furniture?”. This
includes the presentation of the data collection process, the detailed explanation of the survey´s
questions with their link to the introduced framework, and the method of data analysis. The
delimitations of the research are listed afterwards.
3.1 Identification of Paradigm
Positivism is a philosophy, which originates from the natural sciences, and thus is of quantitative
nature. Theories are developed based on empirical research, such as observation, experiments or
surveys, under the ontological assumption that ´social reality is singular and objective´ (Collis & Hussey,
2014, p. 43). In order to understand and explain social phenomena and behaviour rationally, the
deductive process involves mathematical analysis, like statistics. Furthermore, the deductive approach
refers to empirical observations, which are tested against a theoretical framework, which is the case
here. The method suggests going from general to particular. (Collis & Hussey, 2014) The hub and spoke
model is the theoretical framework from where a general perspective is used and applied to the
particular case of IKEA.
However, positivism is subject to some critique, which should be acknowledged and not left out.
The first claim is that the observer never can be separated from the context he or she is investigating
(Collis & Hussey, 2014, p. 45). As a consequence, the researcher is never objective and independent
but will tend to bring in own values and interests to the research. While conducting research under
positivism complex phenomena are tried to be captured by collecting data and interpreting it.
However, a single measure can still lead to incorrect outcomes (Collis & Hussey, 2014, p. 45). It is not
excluded that this might be the case in this research as well due to the amount of respondents. Even
though it is always better to ask as many people as possible to decrease the likelihood of wrong results,
it is claimed in Collis and Hussey (2014) that people still cannot be understood without examining their
perception of their own activities (p. 45). This means, that every individual´s behaviour is influenced
by various parameters like age, income, values or education. In this research however, the customers´
attitude toward SSCM at IKEA is elaborated without including demographic information for simplicity
sake. This includes, that constraints are imposed on the results and other relevant findings might be
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ignored. Such findings could be eventually related to why the customer is behaving or deciding in a
particular manner.
3.2 Method Approach
There are four main methodologies associated with positivism, that are experimental studies, surveys,
cross-sectional and longitudinal studies (Collis & Hussey, 2014, pp. 60- 64).
Experimental studies investigate the relationship between variables by observing their

interdependence (Collis & Hussey, 2014, p. 60). According to Collis and Hussey (2014), surveys collect
data with the aim to generalize this view (p. 62). Cross-sectional studies collect data in different
contexts at the same time, while longitudinal studies gather data over a long amount of time (p. 63f.).
Visser (2008) suggested stakeholder involvement to integrate their needs (p. 38). To investigate
customers´ attitude toward sustainability, it seems to be the most suitable to ask customers about
their preferences directly. Since the context is set to be the retail store IKEA-Moorfleet and time
limitations are given, the cross-sectional and longitudinal studies do not seem appropriate for this type
of study. However, the analysis of the survey´s questions will partly be of experimental nature in that
sense that the research aims to investigate potential connection between certain questions, which will
be discussed more in detail under chapter four. Although a limited amount of questions might result
in a lack of profound and detailed information about the topic, which an interview may provide, it
makes it easier to analyse the results numerically. In order to achieve valid results that are comparable
and of equal value, it is argued that all questions are pre-defined and are asked to all respondents
equally (Collis & Hussey, 2014, p. 133f.)
Probably the research question could have also been approached under interpretivist paradigm with
a qualitative nature. Already carried out research about people´s opinion regarding similar topics could
have been analysed. However, as previously mentioned under 2.1.4 there is no research available
about sustainable purchasing behaviour and preferences in furniture retail specifically. Furthermore
food retail is different from furniture in that sense, that food is a fast moving consumer good and a
daily product with direct effect on health. This is not the case with furniture. Consequently, purchase
decision-making processes might differ. This excludes the possibility for a qualitative research model.
Conducting interviews could be another potential option to gather data (Collis & Hussey, 2014, p.
134ff.). Semi-structured (partly pre-defined and partly spontaneous questions) interviews can provide
more detailed information and give more insights about an interviewee’s attitude than qualitative-
oriented surveys. However, interviews are time-consuming and tend to be applied for a smaller sample
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in comparison to surveys. This would result in a non-satisfactory representation of customers´

opinions. Thus in contrast to interviews, surveys (in this case with pre-defined questions and answers)
permit to represent a wider range of a population and is therefore evaluated to be the most
appropriate in this case. This research will use an exploratory survey, which means that first insights
can be obtained. Detailed analysis of why respondents answer certain questions the way they do will
not be subject of the analysis. The exploratory survey ought to ensure a higher validity in the interest
of IKEA. This is of essential importance in this case, since the findings may be generalized to other retail
stores within Germany. Whether respondents´ answers are affected by the research (e.g. not being
honest, answering in the interest of the survey or unsure about answers) is ignored in this research.
3.2.1 Data Collection Process
In this positivist study an exploratory survey methodology is chosen to collect primary data, which
is analysed numerically. The exploratory survey studies and investigates the topic and provides
information for first indication for improvement. The survey instrument is a questionnaire with ten
questions in order to investigate the customers´ attitude toward sustainability in furniture retail.
Appendix 3 illustrates all questions and answer possibilities both in German (original version) and an
English translation.
Since the retail store Hamburg-Moorfleet mainly attracts local or regional customers, it is assumed
that most of them are Germans or speak German which explains why the questionnaire was in German.
Since the aims of this research are to investigate in the interest of the retail store Hamburg-Moorfleet
and how to improve its in-store communication, it was of importance to retrieve feedback from
regional or at least national customers. Hamburg is attracting many people from different regions from
Germany thanks to its size, employment and education possibilities (Statistikamt Nord, 2016). These
circumstances foster intra-national migration and gave reason why the survey was sent out online
Germany-wide to retrieve a high scale and a diverse set of respondents. The online portal QuestionPro®
was used. At the same time, the same version of the questionnaire was handed out as printed version
to some customers directly in store. Direct interaction with shop customers made it possible to target
elder people in particular that eventually do not have access to Internet, and people with immigration
background due to a lack of them in the circle of friends and acquaintances, who were primarily
contacted for the online survey participation.
Beforehand the questionnaire was tested on a sample size of four people to check whether it is
self-explaining. The piloting of the survey resulted in feedback, which stated the self-explanation of
the survey and its simplicity. Consequently, only a very short introduction and description of the topic
was given online and verbally to the addressed customers in store. In total a number of 127 people
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were asked randomly to provide an unbiased subset of the customers of which 83 persons responded
online and 44 in store. The survey was conducted over a time period of three weeks from 21.03.2016
until the 07.04.2016. Permission was granted by the deputy store manager in accordance with the
employee organization beforehand. In the store, customers were addressed in the first home
furnishing area where sofas and armchairs are presented, that customers could sit down comfortably.
The advantage of asking them in the very beginning was also based on the assumption that store
visitors are more relaxed in the beginning of the shopping, thus more willing to participate. A coffee
voucher served as reward, which they could redeem after the furniture exhibition in the restaurant.
Within both the online and the face-to-face survey it was mandatory to answer all questions besides
the two open questions six and ten. The online survey could not be submitted without having answered
the remaining other questions. In store it was told the participants beforehand.
Key task of the survey and the purpose of its questions is to provide information to answer the
research questions. The ten questions were developed with reference to the hub-and-spoke
framework presented under 2.2.2. Hence, they focus on all integration spokes and the integrity of GM
and SSCM. They collect information whether the consumers consider themselves as environmentally
conscious and how they perceive IKEA, if they pay attention to sustainability reports and what kind of
sustainability information is actually relevant for them. The survey also respects the SSCM compounds
of procurement, distribution/ logistics and reverse logistics. In addition, it integrates IKEA´s Democratic
Design, which is the embodiment of a compromise of five bases, and asks the customer about IKEA´s
return policy (possibility to return old furniture) and potential communication channels.
3.2.2 Purpose of Survey´s Questions
The questions are now presented in detail, and their purpose explained.
Questions one, two, three, four and eight were restricted to one possible answer out of three
options. Questions five, seven and nine had to be answered by scoring the importance of each
suggestion by the use of an ordinal scale using stars. While five stars are symbolic for a very high
importance, four stars stand for a moderate or fair importance, three stars represent a neutral opinion,
two stars signify a moderate unimportance and one star is an indicator for no importance. Table 1
provides a summary of all questions. Appendix 3 presents the entire survey both in German and in
English translation.
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Table 1 Overview Survey Questions
Answer
Nr. Question
Options
1 1 out
Do you pay attention to sustainability during your daily shopping?
of 3
2 1 out
Do you perceive IKEA as a sustainability-conscious company?
of 3
3 According to you, does it suffice when IKEA mentions how it is acting 1 out
sustainably/responsibly in a yearly-published sustainability report? of 3
4 1 out
Would you appreciate sustainability related information about products?
of 3
5 Which information would you value the most? Score 9
6 Space for other options. open
7 What is the most important to you when purchasing a piece of furniture or
score 5
product?
8 1 out
What do you think about the return policy of IKEA?
of 4
9 How does a customer want to retrieve information? Score 7
10 Space for other options. open
The first question: Do you pay attention to sustainability during your daily shopping? (Purchase of
organic/ fair trade products, only purchase when real necessity, no plastic bags, country of production
or origin)
The purpose of this question is twofold. As suggested by Sharma, et al. (2008) in the expanded focus
of marketing it is important to categorize the customers into groups. Target groups are formed
according to strong, medium or little sustainability-consciousness. Secondly, the answers
automatically provide insight into the customers´ convictions regarding sustainability and in concrete
how the percentage-wise proportion of the different target groups look like.
The second question: Do you perceive IKEA as a sustainability-conscious company?
With the help of this question the current image perception is elaborated. The customers can fully,
partly or not agree. It will give first indication how important the (additional) implementation of
sustainability marketing will be.
The third question: According to you, does it suffice when IKEA mentions how it is acting
sustainably/responsibly in a yearly-published sustainability report?
The answers will make clear whether a sustainability report is mainly sufficient for most of the
customers or whether they demand further information. In combination with the first question, it can
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be made transparent which customer group would like to see more SSCM information than provided
in the sustainability report.
The fourth question: Would you appreciate sustainability related information about products?
While the third question elaborates whether the sustainability report suffices or not, it does not
exclude, if the customer still wishes to receive additional facts about each product´s characteristics.
The reflection is, that some customers might say ýes, it suffice however it still would be interesting to
know more about the products´ while another portion might say ńo, a sustainability report does not
suffice, therefore I would like to know more about the products´. The ratio of question three to four
displays the percentage of customers who would like to see more SSCM information of the product
independently from the provision of the sustainability report. IKEA would see whether or not the
sustainability report matters more than product related information, which is relevant for future
marketing strategies. Furthermore, it also makes clear which customer group is demanding such facts.
The survey facilitates identification whether only environmentally conscious customers want to see
more product information or if this demand is an interest independently from customers´ attitude. Let
us assume:
a) Only environmentally conscious customers demand product specific information.
With this knowledge IKEA can decide if it wants to implement such a marketing strategy. This would
improve and foster the relationship to environmentally conscious customers although they are a
minority. IKEA would additionally take over a role in educating less environmentally conscious
customers and become more transparent to become an environmental marketing example, as
mentioned in the paragraph or the purpose of this research (see 1.1)
b) Many customers independently from their personal attitude demand product specific
information.
This outcome has a stronger impact on the need of a green marketing strategy. IKEA does not have
the option but is in urge to implement a marketing strategy incorporating SSCM related product
information.
c) Customers do not ask for such information.
The fifth question: Which information would you value the most?
Since the fourth question seems to focus on the group of respondents, the fifth question aims to obtain
more precise knowledge about which SSCM related information that are interesting to the customers.
Five options (products material origin, carbon footprint, improved characteristics related to logistics,
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recycled, recyclable, remanufactured material, customers green benefits, certification labels) and a
field for additional input is given. Particularly, the selection options of raw material origin and
certification labels of wood will additional investigate whether the research conducted by Anderson
and Hansen (2004) and Aguilar and Vlosky (2007) is still of importance ten years later and relevant for
German customers since the research was conducted in the U.S. and China (see 2.1.3).
Whatever the responses look like, it will provide insights whether the customer values
procurement/sourcing, logistics/distribution or reverse logistics related information 7 most or if he or
she is rather interested in the own benefits. Particularly the fifth option (own green benefits) provides
understandings of the purchasing behaviour and whether it is driven by egoism or altruism, as
presented in chapter 2.1.3.
The sixth question: Space for other options.
According to Visser (2008) CSR 2.0 is about integrating the “collective intelligence of its stakeholders”
in order to find new solutions (p.48). This option permits to get additional insights, which suggestion
are not mentioned in the survey but are still of relevance.
The seventh question: What is the most important to you when purchasing a piece of furniture or
product?
The last question forms a break to the previous questions, asking the hard facts. Anderson´s and
Hansen´s survey from 2004 showed that environmental certification, thus sustainability, is outweighed
by other products´ attributes. This questions aims to explore how important sustainability is valued in
ratio to other product related characteristics today, and whether the German customer cares more
about it than the American twelve years ago. The given options are in line with IKEA´s Democratic
Design cornerstones design, functionality, quality, sustainability and price (IKEA, 2016). Each
cornerstone is defined more in detail in the survey to be clear and specific what it entails. Maybe a
customer really wants to know more about SSCM related information but in reality actually focuses
more on price or other characteristics. It will provide insight on how sustainability is ranked and how
relevant it is when purchasing a product. This knowledge will make transparent how much the
furniture industry differs from research done in food industry as mentioned in 2.1.4. Furthermore, it
will provide understandings how the Democratic Design compounds are ranked.
The eighth question: What do you think about the return policy of IKEA?
7 These aspects where pre-defined as logistics focus of supply chain management under 2.1.2.
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It is assumed that particularly very green-aware customers answer the question with the first option.
Depending on the customers’ attitude, the backward logistics is emphasized in order to strengthen the
green communication and change the current image perception as wished.
The ninth question: How does a customer want to retrieve information?
Since in the beginning of the survey customer´s opinions were gathered about the sustainability report,
this option was left out under this question. This question is meant to investigate which customer
communication is the most appropriate in store by respecting the customer´s opinion. Furthermore,
the result will show whether the statement about the importance of product labelling made by De
Boer (2003) is of importance to the customer in furniture retail or not (see 2.1.3).
The tenth question: Space for other options.
This option permits to get additional insights, which suggestion are not mentioned in the survey but
are still of relevance.
The purpose of the survey questions was explained in this section. In which way the questions
correspond to the already introduced framework in clarified in the next section.
3.2.3 Link to Hub-and-Spoke Framework
This part focuses on how each spoke of the hub and spoke model from 2.2.2 was integrated and
respected in the questionnaire.
As part of the hub-and-spoke model one spoke corresponds to the people-based integration. In
order to see how big the sub-group of green customers is, this spoke is integrated into the
questionnaire in the first question. Independent of its findings about the total amount of green
customers, the people-based integration will have profound impact on the daily work for the store
managers and most of the employees, particularly those in sales, since any process from planning until
realization is highly linked to the people.
With reference to the hub-and-spoke-model question four is in accordance with the product-based
spoke to get to the bottom of what customers value in furniture retail. Knowing what matters to the
customers most will have impact not only on marketing but also on product design engineering and
logistics, and therefore to SSCM to ensure products green credentials.
The fifth and sixth question also matches to the product-related dimension of the framework, since
it ensures the product´s green credentials by exactly identifying which green characteristics the
customer appreciates. Furthermore the fifth question also corresponds to the planning-based spoke
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because according to the outcomes of this question the importance of green materials and training of
people will be affected. Depending on the results, the outcome will also have impact on a green
purchasing of raw materials and supply chain wide CSR practises. For instance, if the customer is very
interested in the origin of raw materials, it may affect where certain materials are sourced from.
This planning-based spoke can be also applied to the seventh question. Depending on how the
compounds of the Democratic Design are ranked it will have impact on what the sales people have to
promote in store preferably.
Question eight refers to the process-based integration spoke which is respecting new technologies
and process reengineering, which is understood as reverse logistics in the context of this research.
Based on this spoke, the survey aims to detect what the customer additionally expects and which
impact this knowledge will have on IKEA internal processes, like the usage of recycled material, and
how to promote reverse logistics in store, which is a rather new concept applied at IKEA.
The ninth and tenth question corresponds to the planning-based integration spoke from the hub-
and-spoke model. Depending on the results from the survey, IKEA can either focus on product-based
green marketing with integrating labelling or on more general marketing about CSR practices within
its supply chain in form of banners and posters, for instance. The planning-based integration is
essential before operationalization. It respects the training of people, the planning of new
implementation steps, like the design of a potential marketing campaign. This will automatically relate
to the promotion-based spoke that is about green branding and the capabilities to deliver green
products.
3.2.4 Methods of Analysis
This section explains by which methods are used and how the retrieved data was analysed.
The scaling of the answer score possibilities of five stars was preferred over a three stars approach
(equivalent to very important, important, not important) in order to present a more diverse, nuanced
picture of the outcome instead of just showing a “black-and-white” representation. Furthermore the
number of stars was kept throughout the survey for simplicity sake and to avoid any confusion.
The option “other ideas” under the fifth and the ninth question made it possible to rank and
additionally present own further thoughts about the topic. If no suggestion was done, this answer
possibility was reduced to one star both in the online and the offline survey. Since the online survey
was designed in that way, that a minimum of one star had to be given at each answer, the data was
adjusted in both offline and online survey accordingly to achieve equilibrium between both of them.
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The data was processed by the usage of the Microsoft Office program Excel by the usage of inferential
statistics, which is a group of statistical methods in order to draw conclusions based on a random
population sample (Collis & Hussey, 2014, p. 261). The analysis will be of non-parametric nature, since
data from the population is measured in interval scale and it is assumed that answers given by the
respondents are influenced from each other and are not completely independent from each other.
These two facts consequently do not correspond with the four basic assumptions drawn by Field (2000
cited in Collis & Hussey, 2014, p. 261). By the usage of non-parametric analysis data is processed
according to frequencies in size and order. After that calculation is rather done based on ranks than
on data value (Collis & Hussey, 2014, p. 261).
The variables are measured on a ratio and interval scale. Using binary code and ranking code made it
possible to process the data. Hence, the figure “0” stands for an absence of the characteristic and “1”
that the characteristic is present. With the help of frequency distribution the array of frequencies was
summarized for all the data values in a particular variable. Percentage frequencies helped to visualize
the distribution better.
3.3 Delimitation of Research Design
Delimitations define the scope of the research. This section explains to which extent the research
can be generalized. Validity and reliability are shortly presented and the limitations of the research are
pointed out more specifically.
3.3.1 Generalizability
Generalizability explains to which extent research findings (often based on a sample) can be
extended to other cases like population or other companies (Collis & Hussey, 2014, p. 54). More
generally, speaking the results of the research allow to be generalized from the sample to the
population with the constraint given under limitations. Visser (2008) identified local drivers that can
have strong impact on a society. These factors are culture, politics, socio-economic priorities,
governance gaps and crisis response, which influence a population’s behavior; also for purchasing (p.
60). Since the research is conducted based on the case study of IKEA Moorfleet, generalization might
be possible for other IKEA retail stores in Germany given the assumption that customers in entire
Germany have a similar purchasing behavior due to same local drivers. Particularly the other two stores
in Hamburg Schnelsen and Altona could profit from the findings and recommendations. The
questionnaire can be used in other countries in order to investigate, whether customer expectations
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regarding sustainability differ from those in Germany and marketing campaigns can be homogenous
in Europe or not. The hub-and-spoke model can be a guiding help for companies to develop their own
questionnaire depending on their industry characteristics.
Moreover this research can be basis for further combining research in field of SCM and marketing
in other industries. It may be a guideline for similar industries like car, fashion or decoration industry
that most likely face also more green customers and sustainability related issues. Additionally, the
research and its outcome underline the relevance of closing the gap in literature, and that SCM and
marketing shall and can be combined in practice. It emphasizes research collaboration and knowledge
exchange in both industries, and stands for an example of successful combination and integration of
the two mentioned departments in a company.
3.3.2 Validity
Validity is the extent to which a test measures what the researcher wants to measure and the
results reflect the phenomena under study (Collis & Hussey, 2014, p. 53).
As mentioned previously any demographic information are not asked in the survey. This certainly
would give additional insights, however only when the sample size is big and representative enough.
With increasing amount of respondents the survey would certainly have more validity. Other than the
scope of this thesis defines indirectly the validity and generalizability of the results. Results are valid
for the retail store Hamburg-Moorfleet and have to be treated with caution for other stores
particularly in other countries. The results are valid for furniture retail and are only applicable to a
limited extent to other retail industries, such as clothing for instance.
3.3.3 Reliability
Reliability refers to the accuracy and precision of the measurements and absence of difference in
the result if the research were repeated (Collis & Hussey, 2014, p. 52).
For the literature review data triangulation was used to obtain data from different sources and
times to obtain higher reliability (see 2.1). In order to be representative to the daily amount of visitors
in the retail store of Hamburg-Moorfleet, the sample must have been much higher (IKEA, 2016).
Amount of daily visitors is approximately four to five thousand customers. Sampling size from given
population need to be 351 (Collis & Hussey, 2014, p. 199). The sample size until 172 respondents is
reliable for a representation of not more than 200 people in a population.
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3.3.4 Limitation of Methodology
Limitation of research describes the weaknesses or deficiencies in the research. As with any study,
the current one has limitations.
Investigator triangulation was not realized since only one researcher wrote this thesis. However,
continuous feedback sessions both from university and the company ensured an exchange of ideas,
perceptions and ideas.
The research is limited to the unit of analysis IKEA Deutschland GmbH & Co. KG at the geographical
location Hamburg–Moorfleet. The business sector is furniture retailing, whereas a communication
strategy is elaborated to promote Moorfleet more in regards to sustainability. The time of research is
limited to five months. Sampling method is a single questionnaire, which consists of ten questions that
are asked to 127 customers over a time span of three weeks. Yet, the research results are limited to
the application at IKEA Moorfleet. The research offers insights into customers´ expectations, however
the sample size is not sufficient to be fully representative to the daily amount of store visitors and their
attitude toward IKEA, as pointed out in the previous section. The study can become more precise and
representative when the amount of survey participants increases.
Although customers consider themselves as environmentally conscious there is no benchmark how

to evaluate this information. Some may be strict with themselves; some are not. However, this self-
evaluation is important in that sense that it gives an indication about customers general attitude about
sustainability, which will give an idea on how many are actively aware of this topic and may have
adapted a more mindful lifestyle. Yet, this information can hardly be assigned to a numerical value.
Whether respondents answer the survey’s questions differently when asked in person or when they
fill out the online survey anonymously is not of relevance, since the evaluation of the results does not
segment into online and offline group but according to sustainability-consciousness. The likelihood is
ignored that simultaneously responding participants influence each other’s answers and thus survey
results due to personal interaction. Customer segmentation according to age, gender, employment or
other social factors is not respected in the research for reasons of simplicity. This is mainly since the
sample size would not suffice to draw representative conclusions on a population and would lack
reliability. If research had only been done on people of a certain age group for instance, it would have
discriminated other target group. If this research is conducted further in future, it is room for more
detailed investigation.
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4 Results and Discussion
In this chapter the findings of the survey are presented in the first section, and interpreted and
discussed in connection with the earlier introduced literature in the second part. It will provide the
reader with recommendations in the third section of this chapter. Some challenges of the
implementation are mentioned.
4.1 Results
The examined literature from chapter two is found to be suitable and applicable for the case of IKEA
Moorfleet and its area of improvement. On the one side this is because this globally acting company
has a large supply chain network, which is subject to constant improvement to guarantee reasonable
prices for the customer, and on the other side because IKEA is in permanent contact with the customer,
who according to literature, has started to demand and appreciate more sustainable practices.
Moreover according to the sustainability reports, IKEA is improving its supply chain activities
constantly. Looking at IKEA´s sustainability reports (IKEA, 2010-2015), the company commits to
sustainability in all scopes as defined by both Dahlsrud (2008) and Visser (2014). In line with Visser´s
increased attention to the definition of environmental sustainability, IKEA has focused increasingly on
environmental awareness throughout its supply chain in recent years since climate change and
stakeholder pressure made this scope a sensitive topic that should not be ignored any longer (IKEA,
2010-2015). However, it is not evident that IKEA follows the stricter definition of ´strong sustainability´
since it transfers raw materials into manufactured goods and recovers that captured energy only by
recycling or incinerating (IKEA, 2010-2015). Yet, furniture is largely made from the renewable resource
wood. IKEA´s wood is FSC-certified, which means that wood harvesting is done in a sustainable manner
by which neither the availability of the resource diminishes nor protected or non-FSC-certified forests
are touched upon. Nevertheless, it is essential to keep in mind, a large variety of products are not made
from renewable resources like wood or cotton but are transformed materials like aluminum, glass, and
plastic. With its implemented a People & Planet Positive strategy in 2012, IKEA proves compliance with
the definition of sustainable supply chain management presented under 2.1.2, since it defines
environmental, social and economic goals while respecting transparency (e.g. by publishing
sustainability reports) and supplier integration and improvement through auditing (IKEA Group, 2012).
Since it takes back old furniture, it integrates backward logistics into its business practices in order to
foster the closed-loop supply chain management (Chan, et al. 2010; Wong, et al. 2015).
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The following section presents the findings from the survey that discloses how customers perceive
IKEAs corporate behavior.
4.1.1 Customer segmentation, their image perceptions and opinions about the
company
To what extent a person is assessing himself or herself as a sustainable purchaser, how he or she
experiences IKEA as sustainable market actor, if they think that a sustainability report is enough and if
they would like to receive sustainability related information about products are the first four questions.
They were grouped because all of them had three answer options from which one could have been
chosen. Apart from this, they set out broad parameters that provide general insights about the
customer´s self-evaluation, opinion, perception and wishes.
Most of the customers (47%) consider themselves as moderate “green customers”, and 37% see
themselves very much as a person who is having sustainability constantly in mind while shopping. Both
numbers exceed the non-conscious customers that are represented with circa 16%. The current image
perception of IKEA regarding sustainability is moderate (48%) tending to not very good (44%). A
minority of 8% of the respondents perceives IKEA as sustainable. With respect to the first subordinate
research question about what has to be done in order the change the image perception form
customers about IKEA, the majority of the respondents with 48% agreed that it does not suffice to
publish a sustainability report yearly. However, 21% claim that it suffices, while 31% doubt that it is
enough. These results are illustrated in Figure 3, Figure 4 and Figure 5. No matter if a customer
considered his daily shopping behavior sustainably driven or not, in each of the three target groups
the majority agreed that a sustainability report is not sufficient for a good image. Question four 8
provides helps to answer to which extent a customer values sustainable related information. The
survey revealed that in furniture retail both environmental-conscious and non-conscious customers
are very much interested in the provision of more detailed supply chain related product information.
No matter if a customer considers himself environmentally conscious or not approximately 96% of the
respondents say that they value sustainable supply chain management related information about a
product or the company while purchasing furniture. Whether each respondent knows exactly what
supply chain related information means in particular is unclear but the given examples in the fifths
question make him or her understand what it entails. Almost 34% of all customers would like to receive
sustainability related information about every single product. Less demanding and less extreme are
most of the customers (62%) that think it would be nice to receive product related information for at
8
Would you appreciate sustainability related information about products?
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least some products. A proportion of 4% of all consumers state that they do not need sustainability
information because they value other facts (see Figure 6).
Interesting is, that for 21% of the customers it suffices, that IKEA is publishing a sustainability report,
however still more than 93% out of these 21% would be interested in knowing more about the
products (3a & 4a+4b). Therefore, almost 99% of those that said it does not suffice to publish a
sustainability report, strongly and moderately claim for more sustainability information about product
(3c & 4a+4b). Reference to the assumptions made under the forth question in 3.2.1, it can be stated
that out of the very environmentally conscious customers, 98% demand more specifically
supplementary product specific information. Additionally 85% of non-environmentally conscious
customers would also appreciate such information.
Figure 3, 4 and 5 illustrate these findings with the usage of traffic light coloring. The green color
corresponds to green customers, a positive attitude or a strong agreement with the question. Yellow
signifies a moderation and red a disagreement with the question respectively.
Figure 3 Question 1
Do you pay attention to sustainability during your daily shopping?

(purchase of organic/ fair trade products, only purchase when real
necessity, no plastic bags, country of production or origin)
16%
No, not really.
37%
Yes very much
47%
So- So
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Figure 4 Question 2
Do you perceive IKEA as an environmentally conscious company?
8%
Yes, very much.
44%
No, not really.
48%
So so.
Figure 5 Question 3
According to you, does it suffice when IKEA mentions in a yearly

published sustainability report how it is acting
sustainably/responsibly?
21%
Yes, very much.
48%
No, not really.
31%
So so.
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Figure 6 Question 4
Would you appreciate sustainability related information

about products?
4%
I dont need this.
34%
Yes, absolutely
62%
It would be nice.
4.1.2 Customer´s expectations and values related to products and services
The next group of questions refers more precisely to the supply chain related information. Which
information are the more important to a customer? Which suggestions do they have additionally? Is
price or sustainability more important? And what do they think about the return possibility of old
furniture?
The fifth question provides answers to the second sub-ordinate research question about what
sustainable supply chain related initiatives or information in particular matter to the customer. Do
buyers look for sustainable supply chain information linked to procurement, distribution and reverse
logistics. Results show that the products´ material origin is the most important information with almost
14%. Reverse logistics related information about recyclability and the return possibility of products
enjoy a strong interest as well with 13.8%. Furthermore at third place, most of the customers value
information about their own green benefits with 13.6%. Further facts ranked in decreasing importance
are info about recycled, recyclable, remanufactured material (13.3%), carbon footprint (12%),
production through community projects in developing countries (11.7%), certification labels (11.1%),
and improved characteristics related to logistics (10.7%) (see Figure 7). The percentage is given with
decimal place to display the precise result and avoid rounding errors. Rounding the results would not
have any impact in the order however would not give a similar precise picture like when the actual
percentage numbers remain. Respondents indicated among others which other information they
would appreciate to be informed about. Since response rate of this question was very low (only 10
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valuable topic-related comments) the ranking of these answers was not found suitable. One person
suggested a scoring model by the usage of an independent, superordinate system to compare several
products more easily. The practicability of this suggestion is further explained in implementation
suggestions under 4.3. Another customer introduced an idea by asking two questions. What can an
individual additionally do and how can someone engage to support sustainability within and with IKEA.
Various customers wanted to know in which way and how much the wrapping and packaging material
had been minimized and whether it is from recyclable material. The packaging aspect was mentioned
three times, which gives it a higher significance in comparison to the other suggestions. One argued,
that it would be of value to show whether a certain product is from small producers that could be
supported by the purchase of an explicitly labeled product. Looking at the Democratic Design, quality
is the most important driver with 22.2% closely followed by functionality (21.5), design (19.9%), price
(18.3%) and on fifth rank sustainability (18.2%) (see Figure 8). In this figure there is no red color
because three product attributes enjoy equal popularity (green), while the other two are both
moderately important (yellow). The color scheme also expresses that all attributes are about same
importance. The mode distribution displays a five star ranking for the first three ranks, while four stars
where given to price and sustainability. A bit more than 10% even marked all five cornerstones
equivalently.
The clear majority of 55% is convinced that the return policy from IKEA is a good thing, although
most of the people are not really using it. While a quarter of the respondents argue that it is a
wonderful idea and it was about time to implement it, only 13% claim that this particular customer
service has nothing to do with sustainability. Most of the customers who think that they pay very much
attention to sustainability during their daily shopping think the return policy is a good action from IKEA
although they are not using it. Among all participants, this group however states dominantly that it has
nothing to do with sustainability. An indifference attitude can be observed with 7%. This is illustrated
in Figure 9.
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Figure 7 Question 5
Which information would you value the most? Please score!
14% 14% 14%

Material origin Recyclability/ 13% Green Benefits 12%
12% return Recycled 11% community
CO2 footprint material Certification projects
11% Labels
Logistics
Figure 8 Question 7
What is the most important to you when purchasing a piece of

furniture?
Price Design
18% 20%
Functionality
Sustainabilty 22%
18%
Quality
22%
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Figure 9 Question 8
What do you think about the return policy of IKEA?

don´t know
wonderful
7%
idea - finally
25%
not sustainable
13%
good idea
55%
4.1.3 Communication media
The ninth and tenth question stand in in reference with the third subordinate research question that
helps to investigate how sustainability related information from previous sections shall be
communicated. Which is the best medium to communicate the relevant information preferably. The
majority of 26% appreciates information provided on a product label, followed by website (23%) and
poster (15%). QR codes (13.3%), newsletters (12%), and workshops (10.7%) are less appreciated (see
Figure 10). As emphasized by De Boer (2003) under 2.1.3 product labels are ought to be the
combination of ´functional and aesthetical features, together with distinctive environmental and moral
advantages. Apart from the proposed media additional suggestions done by the respondents on how
information could be transmitted, multiple times emphasize was done on qualified service and sales
personnel that shall be capable to inform the customer about the products and the referring
sustainability features. Multimedia advertisement on TV, radio but also social networks like Pinterest,
Instagram, and Facebook formed part of the propositions. Further ideas corresponded to IKEA´s own
smartphone application, which could be used to show topic-related facts conveniently. Some
respondents would appreciate information to be sent in paper form via post, or on request as
catalogue, while another participant pointed out the usefulness of information transfer by the use of
topic specific campaigns or at innovation congresses to show latest improvements and novelties with
respect to the environment. Beyond proposing media channels on how to transmit product
characteristics, ideas about eye-catcher or call outs on product labels as additional hint were
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submitted, too. Similar to the fifth question, these suggestions were taken out of the scoring model
but considered as additional idea input.
Figure 10 Question 9
How does a customer want to retrieve information?

Product label
26% Website
23%
Poster
QR Code 15% Newsletter
13% Workshops
12%
11%
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4.2 Interpretation and Discussion
The results of the survey data are interpreted and discussed in this section.
A reason why most of the customers consider themselves as moderately green might be because
Germany generally is a country, which emphasizes sustainability due to recycling legislation, the supply
of many organic products and by the non-provision of complimentary plastic bags for instance.
Moreover one might take into consideration that a self-evaluated green customer is socially more
accepted than one who didn’t, and therefore the respondents tended to say that they belong to the
moderate group. It is also assumed that respondents are not homogenously strict and honest with
their self-evaluation. Nevertheless and despite of the lack of precisely given parameters, the first
question still supports the idea of customer segmentation based on individual evaluation.
Independently whether a given response is absolutely correct or false, it remains interesting and
helpful to distinguish between a target group that does not care about sustainability at all and one
who bears it in mind. Furthermore, it discloses the ratio of them to another. Looking at the current
image perception of IKEA that is rather tending to the negative, the company IKEA is in the need to
change this general opinion. Although not particularly having asked the participants why such an image
perception exists, one reason could be a lack of sufficient sustainability marketing or that people think
that a low-cost capitalist driven multinational company is not able to be sustainable. Since IKEA is a
globally-acting multinational company with direct contact to the end-customer and remarkable scale
of production, consumers are much more aware of its tremendous raw material utilization and
business practices compared to smaller, rather unknown companies. IKEA is very present in the market
and consequently very exposed to research and criticism of various parties. Thus, criticizing publicity
in former years (taxation, horse meat balls, wood from native forests or no external surveys) might
have had negative impact on the image perception of IKEA (Economist, 2011; Süddeutsche, 2013;
Spiegel, 2011). However, this critic has forced IKEA to improve business practices according to its
sustainability reports of the last decade. Such public pressure would probably not have existed to such
an extent for smaller sized companies. With its size IKEA has much more bargaining power, importance
and thus relevance in the market to change old practices, where smaller companies could only comply
with in order to survive at the market. This already transforms IKEA into an active player with influence
and control. This expertise mainly deployed in collaborations with suppliers and global organizations
like the WFP can be applied on customer level as well. With reference to the first subordinated
research question and looking at the outcome of question two and three, it can be stated that an
improvement of IKEA´s image perception will not be achieved by only publishing a yearly sustainability
report. Since the sustainability report is only published online, it can even be assumed that most of the
customers are not even aware of its existence. Moreover, the results of question three and four have
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indicated that the sustainability report matters not as much as every products green credentials, which
now should be pointed out more specifically in order to provide sufficient information for the
customer. How the information provision could look like in specific will be discussed more in detail
under 4.3. The fifth question reveals that customers appreciate particularly the supply chain
management integrated activity of procurement by showing strong relevance of information provision
about product´s origin. This is probably the case because customers are used to such information from
the food industry. As mentioned earlier, products that have been produced in an ethical way need to
be declared. The customer should not be forced to seek out that information, because they won´t look
for it. They will only use this information, when it’s there (Torres, 2016).
It is interesting to detect that Sharma, et al. (2008) claimed for a higher end-customer participation in
recycling and recovery (see 2.1.4), although from the survey it can be seen, that the German customers
are very interested in facts about recycling, and are apparentely willing to recycle better. This leads to
the thinking, that it is not the customer who lacks enthusiasm to recycle, and that he or she should
therfeore be better provided with such information but also with a suitable waste disposal option.
Information about recyclability is probably of enormous importance, since Germany generally provides
a decent infrastructure to dispose waste properly.
Own green benefits are ranked on third place. This is very much in line with Polonsky´s research (2011)
as presented under 2.1.3, where consumption of a greener product only occurs when there is no trade-
off between sustainability and quality or functionality. The results from question seven will display that
explicitly. With regards to the own green benefits, the purchase making decision in furniture retail is
thus similar to the one in food because the customer is more driven by egoistic advantages of the own
purchase acquisition than by an altruistic thinking of what is good for the common. 9 Other than that,
it has to be stated, that the importance of certification labels in comparison to other information is
minor, and therefore goes in line with Anderson and Hansen (2004) who identified the relative
importance of wood certification based on a survey in U.S. in China. It showed, that environmental
certification is a favorable product attribute, however is outweighed by other attributes, which is also
the case based on this survey. Traditional logistics related information are not specific interesting to
the customer, however the embodiment of the logistical transport improvements described as a
decrease of carbon footprint is valued. That is somehow biased. It seems that the customer hardly
wants to know by which methods and implications the CO2 emission reductions are achieved, but only
that they are reduced. Although the customer has not specifically been asked how IKEA can improve
its image, some concluding assumptions still can be drawn from the survey. The statistical mode of all
9
It remains to be discussed whether any type of altruistic behaviour exists in the world at all.
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answer options shows that general demand for the provision of most information is considered very
high since all options are ranked with five stars, while only the last two ranked options received three
out of five stars.
Question six reveals that even other aspects of sustainable information are appreciated that is a
much bigger range of information than suggested in the survey. Although response rate of this open
question was rather small, it still provides indication of which other aspects could be included into
IKEAs potential marketing strategies. One aspect that has been mentioned multiple times is the
reduction of wrapping material, which goes in line with the recyclability of wrapping materials and
reverse logistics. Promoting how packing material has successfully been reduced could be taken into
consideration. While the customer was only focusing on the reduction of packaging material, this idea
can also be applied for any material. A classic example is the product introduction of the shelf KALLAX,
which is the replacement for the traditional EXPEDID (IKEA, 2014). KALLAX kept functionality although
the product was redesigned with thinner outer walls and smaller compounds to decrease raw materials
(IKEA, 2014). The precise changes can be seen under Appendix 4. Other suggestions were to show
explicitly the region and seasonality of produce and products in the IKEA Food restaurant, to provide
more detailed information about used materials, binder, plasticizer and softener and in which way
IKEA is involved in research and development project of alternative materials to plastic, the reduction
of plastic assortment recycling, rectification of recent pollution (in oceans for instance), and the
combat and avoidance of root causes of new pollution.
One principle of CSR 2.0 was among other creativity and creative solution finding. The questions
from one respondent “What can an individual additionally do and how can someone engage to support
sustainability within and with IKEA?” is new approach for IKEA which could be translated into a
potential CSR practice where an IKEA customer is sponsoring a family or a worker from a community
project from IKEA.
The food industry can be acknowledged as an industry from which some parallel to the furniture
industry can be drawn. Although it is not quite the same, it can be learned from it. Although, the
purchase decision-making process of sustainable food consumption was subject to the research of
Edelmann and The Consumer View (2011), some parallels can be drawn to the furniture industry. The
Democratic Design is meant to be a compromise of all compounds and that is what the customer also
expects and values. It was assumed that consumers favor buying a convenient or optical-appealing
item more than a sustainable one, which has been proven by the survey. The Consumer View (2014)
found out, that sustainability is after price the second most important reason, why a product is bought
in food retail. This is not directly the case in furniture retail, where functionality and quality count
more. Nevertheless, price is also ranked more important than sustainability, which is identic in the
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food industry. Since the return policy of all items is a rather new service at IKEA and is of increasing
importance in sustainable supply chain management, it was integrated into the survey. The reason
why customers say that the return policy has nothing to do with sustainability might be because they
follow a stricter definition of sustainability according to which recovery of manufactured goods
through recycling or incinerating does not go in line with their perception, and that better solutions
have to be found (see ´strong sustainability´ under 2.1.1). Mainly the very green customers think so.
They also claim that it was about time to implement such a return policy. A reason for this general
conviction may be that people are taking such material recovery implementations for granted and that
it is no longer an activity to improve a corporate´s image. It is possible that some respondents do not
even see a direct link between returning old furniture and sustainable business operations. The
product tag is the preferred communication medium because it is easy to use. When a customer walks
through the retail store he or she can easily look at the product of interest and retrieve a lot of
information without using the mobile phone or being asked to look it up online back at home. It is user
friendly for all ages and avoids that one has to look for exact product facts online which is time
consuming and annoying. Thanks to the elaborated knowledge from this survey, it was revealed what
the customer values, and that the communication medium is preferably the product tag which is in
line with argumentations from De Boer (2003).
Each item of furniture is the embodiment of form, functionality, quality, sustainability and price. Of
course a decent quality product is the result of innovative design engineering and functionality,
however it also is the embodiment of sophisticated supply chain management. This incorporates
thoughtful procurement of sustainable resources, lean production and systematic distribution to
reduce waste like unnecessary costs and emissions in order to make the final product affordable to the
customer. Consequently, supply chain management including reverse logistics, product promotion,
and sustainable awareness can be tied up together. Therefore Nair and Ganesh (2013) suggest
promoting environmental and functional benefits more together in future that customers understand
these environmental related benefits better. Having analysed the outcome of all the questions, it
remains however unclear whether the provision of product specific information regarding sustainable
supply chain management really affects the purchase decision. Nonetheless, this stated insecurity does
not exclude that customer still appreciate information about procurement and recyclability of the item
which thus can influence the purchase decision (at least) indirectly.
Apart from product tags, in the next section it is explained which communication channels can be
taken into consideration to promote IKEA´s sustainability activities.
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Table 2 Research Questions and Main Findings
Research questions Main findings

To which extent does a customer value Large majority values sustainability information
sustainable supply chain management related
information about a product or the company
while purchasing furniture?
What has to be done in order the change the Urgently start communicating such information,
image perception from customers about IKEA? become active and creative about sustainability
communication, make internally known
knowledge more transparent to end-customer,
educate customer through well-informed
employees (see 4.3 Recommendations)
What sustainable supply chain related material origin,
initiatives or information in particular matter to recyclability and return option for products
the customer? own green benefits
How shall this information be communicated product label
poster
website
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4.3 Recommendations
The survey showed that many customers independently from their personal attitude demand
product specific information, which corresponds to the second assumption stated in 3.2.1 under
question four. Therefore, it has to be emphasized that the need of green marketing is urgent. IKEA
does not have the option but is in urge to implement a marketing strategy incorporating SSCM related
product information with the provision of the demanded information. Although, sustainable
consumption appears to be rather for the good own conscience than for the good cause, and
sustainability conscious consumers appear to like doing something good but prefer to do something
good for themselves at first place, IKEA might has the power to convince and educate particularly the
less conscious customers to act differently by promoting products which have become better or
greener due to the backstage supply chain operations. How such education can look like and how
sustainability can be transferred better is explained in the next section.
4.3.1 Employee Education
At first glance, the survey results lead to the thinking, that it seems to be easier to market a product
than supply chain related actions and activities to generate a value-added product. With respect to the
findings of the seventh question, it is suggested that sales personnel in stores shall highlighted the
functionality and quality of the products, and the green characteristics of the product and benefits for
the customers in each store division. Visser (2008) also underscored that CSR 2.0 is about “embedding
CSR across the organisation”, which means that not just operational managers but particularly the
shop floor workers are fully involved into the CSR practises (p. 38).
As pointed out under 2.1.2 information logistics is highly important in SSCM, since 75% of all
employees rather work with information than with materials in producing industries. In the context of
IKEA and suggested by some respondents, the sales personnel should be able to answer customers´
questions about sustainability professionally, which is only possible when they are trained accordingly.
Educated employees can talk about more general sustainability characteristics of the supply chain like
the reduced amount of traditional wood pallets, sustainably harvested and certified raw materials, and
integration of recycled materials in certain products, or production through community projects.
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4.3.2 Product Specific Communication
The analysis of the survey disclosed a solid demand for more product-specific information. The best
way, as addressed by De Boer (2003) at earlier stage, is to promote information on product level.
a) Product Labeling
Consequently, products can be labeled according to their sustainability. At the moment the price is
the most prevalent information given (see 1.1) and green promotion is, if at all, only given on the
backside of the price tag. In each Home Furnishing Business area (HFB) certain products can be marked
with a call out that functions as an eye-catcher to attract customer´s attention. Information can be
related to materials origin, customer benefits or reverse logistics. As mentioned under 2.2.2, the
promotion-based integration includes product labeling about environmentalism and disposal. Since
the customer asks for recyclability related information, it is essential to provide such information.
Furthermore, fabrics can be labeled with remarks about the cotton´s origin, whether it’s organic,
or where it was processed. Sofas (HFB 1) do not have to be replaced completely when the color is out
of fashion, but a new cover can be bought instead. Electronic devices, like a refrigerator in the kitchen
HFB could be labeled with an additional sustainability tag, which states “energy efficiency” and that e-
waste can be brought back to IKEA. Consequently the customer does not have to take care of the
disposal and IKEA takes over responsibility for appropriate waste management, which forms part of its
reverse logistics. In literature it is argued that bringing back old products back to the producer or seller
fosters sustainable acting and can be perceived as interface between SSCM and the end customer
(Sharma et al, 2008). Plastic utensils tags could show that material is to a certain amount from recycled
material and can be recycled easily. Some products have become lighter like KALLAX or the best know
shelf BILLY, which was reduced in material and thus weight by 30% (IKEA, 2015). Such changes can be
translated into customer benefits such as less to carry, easier to assemble, less emissions in transport
or less space consuming in the trunk of a car or easier to transport by bike. LED lightning bulbs
information tags can disclose how much energy a consumer can reduce by using such lightning at home
and how the bulb can be recycled. Many more examples are listed under Appendix 5 where HFB,
product name, sustainable attributes, customer benefits and the link to SCM are listed.
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b) Product Scorecard
One respondent suggested a comparable superordinate system by which products can be

compared better. IKEA internally is using the so-called Product Scorecard, which helps to evaluate
products´ green attributes according to eleven criteria, presented under Appendix 6. The Product
Scorecard is a measuring and evaluation tool to weight defined product criteria against each other
resulting in a score. A total score of at least 120 combined with fully IWAY approved production is
required to classify a product as “more sustainable” (Strandh, 2014). In line with this already
established evaluation system within IKEA, a communication strategy could be developed. Suggestion
is to make the scores transparent to the customer. Since each product gets a final value of an absolute
number, it is even easier for the customer to compare products with each other. It might be not an
independent system, however it is superordinate and already put into practice, which facilitates an
implementation due to the information availability.
c) Promotion of Locally Sourced Products
Certification labels do not seem to be of significant importance to the customer nowadays. This is
in line with the research of Anderson and Hansen (2004), who argued that it is a good product attribute
but often outweighed by other characteristics. However, this information can be of certain importance
in a market strategy. Visser (2008) claimed for the idea of “glocality” (thinking global, acting local) in
his explanation about CSR 2.0, which can be used in this suggestion (p. 40). Since the customer values
the products origin to the most and research from Anderson and Hansen (2004), O´Brien and Teisl
(2004), and Aguilar and Vlosky (2007) showed that a customer is willing to pay more for certified wood,
local or regionally close harvested or produced wood products could be promoted more specifically
on product level by the usage of product labels with a call-out or any eye-catcher in order to influence
the purchase decision, and to ask for a price premium even. This means that regionally sourced wood
products could outweigh price, promote sustainability and even have a decreased carbon footprint in
comparison to globally sourced wood. Russell and Russell also found out, that when companies´ CSR
efforts are local, consumers’ actual behavior towards the company increases, although these
consumers perceive distant CSR activities as more important (Russell and Russell, 2009, p. 75). IKEA
has started to use cork from Portugal in their SINNERLIG product line, which is composed of cork
benches or glass containers, lidded with cork. The advantage of cork over traditional wood products is
that the tree is not chopped but the bark is harvested every nine years. Cork is light, water repellent,
durable, good to touch and an alternative to traditional wooden products (SINNERLIG - IKEA Product
Stories, 2015).
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4.3.3 Poster
Market communication via poster was the second most important medium according to the survey.
Poster and banner are a rather uncomplicated way to foster store communication. Nevertheless, it
should be acknowledged that too much of them will result in ínformation war´.
a) Internal Information
As the retail store at IKEA is subdivided into Home Furnishing Business units (HFB) (see Appendix
5), each HFB could be equipped with visual advertisement with information that is rather internally
communicated until now. These are for instance the Democratic Design of IKEA products, which was
already introduced in the survey. IKEA is also promoting their mission of Growing 2020 IKEA together.
This mission composes of four cornerstones that focus on growth of IKEA, their people, sustainability
and keeping low prices (IKEA Services B.V., 2012). A “Did you know” or “WE CARE” campaign could
help to promote constantly targets, improvements and achievements of each financial year in form of
posters. The restaurant could be a place, where large stickers on the table or tablets could list
summarized information from the sustainability report of the adequate financial year, and would thus
be easy to implement just by the usage of another communication medium. To foster communication
about disposal logistics it could be talked about how much percent of reverse items are recycled or
used for remanufacturing. This would keep track and support additional engagement to keep waste
low and recycling high.
b) Story Telling
By the usage of storytelling, as exemplarily shown in Figure 11 on a work chair, innovative products
are introduced to the customer either in form of a video in the World Wide Web or as printed version
in the stores. In such short stories however mostly the designer´s thoughts about the product creation
built the focus. Moreover, arguments and thoughts of designers about functionality and innovation
aspects outweigh sustainability in these presentations. Alternative to the current marketing strategy,
this story telling idea could be developed to match the customers´ expectations toward the provision
of sustainability-related information. They could accentuate why they used particular fabrics or
materials, and why the new design or characteristic of the product carries certain advantages for the
customer.
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Figure 11 Store Communication and Storytelling
Source: IKEA, 2016
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4.3.4 Further Ideas
a) Local Waste Collection Points
In the section 2.2.2 the project-based integration was introduced as part of the hub-and-spoke
model. Corporate responsibility can be displayed by promoting environmental and community
projects. Given the context of supply chain management, it might be an idea to set up projects where
waste is reduced or recycling is facilitated. IKEA could engage in a beach or park cleaning projects.
To avoid long travels to and from IKEA for returning old furniture, it would be customer friendly to
set up waste collection points from where trucks could pick up waste. It would be like an outsourced
or out-located disposal area within the city that makes it more feasible to dispose old furniture more
closely and by bike. Such infrastructure would facilitate the recycling much more by supporting the
customer. He or she could leave the car at home, does not need to travel until the suburbs, would not
leave broken furniture on the street and people like carpenters who enjoy doing arts and crafts could
use parts of the disassembled furniture to create their own new things.
b) Oral Advertisement
In the section 2.2.3 three media groups were presented through which information can be
communicated. The survey only covered visual and written advertisement, because during the
development of the survey oral advertisement was not considered to be very common or usual.
However, during the course of this research oral advertisement has been observed in various retail
stores like the food retailer EDEKA or the clothing retailer H&M. Loudspeaker announcements are a
tool that is easy-to-implement and reaches many customers.
c) Food
Since IKEA offers food products as well, some interesting facts about the food industry can be of
help to communicate them to the customer in the food areas, like the bistro, the café and the
restaurant. This year´s theme is food and how to be more sustainable with food, cooking and kitchen.
d) Eco-lifestyle Products
Although the focus of this research was on how to promote sustainability in store, the webpage still is
an important medium, which has been shown by the survey. The idea is to sell the 100 most sustainable
products within IKEA under a special “eco-lifestyle” category online (Ko, et al., 2013). These ranked as
“most sustainable products” could easily also promoted in store, of course.
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4.4 Challenges
Implementation of the introduced suggestions has to be in accordance with IKEAs corporate design.
Therefore the recommendations have to be discussed with and approved by the head quarter, which
can be time-consuming due to the size of this large company. Multinational highly structured
companies tend to have long approval processes and implementation times. Once confirmed the
operational implementation has to be executed by the store design department, called
Communication and Interior Design. It may take a while to fully implement the recommendations.
There is no right or wrong about which recommendation should be implemented first. However, it is
emphasized that it is more practicable to implement a combination of product labelling and posters
on superior level to attract as many customers as possible according to the survey findings. The
implementation progress is dependent on labour and financial resources. Whether a multi-channel
strategy or an all-in approach for only one marketing recommendation is better cannot be elaborated
at this point and will be left as subject for further discussions.
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5 Conclusion
The aim of this research was to provide answers to the question to which extent a customer values
sustainable supply chain management related information about a product or the company while
purchasing furniture. Therefore it corresponds to the first two tasks of the traditional marketing
definition, which is the identification and anticipation of customer requirements. It further respects
sustainable supply chain aspects of procurement, distribution and reverse logistics. The knowledge
from this research minimizes the gap mentioned in literature that criticizes a missing link between
green marketing and sustainable supply chain management in both academic research and practise.
Since IKEA wants to change its image perception from a throw-away furniture retailer to a
sustainable producer, it does not suffice to promote IKEA´s sustainable business practices and
behaviour in a yearly-published sustainability report online only. The executed survey proofed that a
strong majority of customers in furniture retail wants to receive SSCM-related information. The
outcome of the survey revealed that customers, no matter if strongly, moderately or hardly
sustainability-conscious demand particularly information related to material origin, recyclability and
return possibilities of the products, and their own green benefits. Thus, the supply chain activity of
procurement is of strong relevance to the customer, being followed by reverse logistics. Corresponding
to this deduction and according to the findings of the questionnaire, in most cases the customer will
only buy a ´greener´ piece of furniture or product when it offers an advantage for the buyer, such as
water or electricity saving potential or any other kind of convenience like lighter weight, smaller
package or no hazardous material in the product. Traditionally considered logistics information like
how the carbon footprint has been decreased, however are not of great importance.
While purchasing products in the store, customers dominantly look for quality, functionality and
then design, whereas price and sustainability are less important in comparison to the other three
products attributes. In this industry price is outweighing sustainability. Thus, a customer first cares
about the price and then whether the product includes sustainable attributes or advantages. With a
leaner supply chain that permits cost cutting IKEA can offer better products at still reasonable price,
which would influence the purchasing behaviour of the customer. Simultaneously IKEA would take
over a role in educating the customer to buy greener products and to become more sustainable.
Consequently, cost leadership (one of IKEA´s competitive advantages) remains a driving force that can
only be combined with sustainability when the supply chain is lean and efficient.
As pointed out in the introduction the findings of to which extent and what kind of sustainable
supply chain related information is valued by the customer while purchasing furniture will influence
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how a potential sustainability-focussed customer communication strategy in store has to be designed

that it is perceived as more sustainable today than from the IKEA from 10 years ago. In the first chapter
it was still unclear whether and why sustainable supply chain management and green marketing are
still unlinked. Clear is that almost unanimously, the majority of the respondents agreed that the
provision of a sustainability report does not suffice generally to improve IKEA´s image perception.
Preferred communication media instead are product labels, posters and the company´s website.
Accentuating sustainability information on these media could have positive impact on the change in
image perception.
The research helped to disclose that the lack of sustainability communication is not due to
customer´s disinterest in sustainability. Instead it is an inability or non-willingness on part of IKEA to
promote green supply chain activities on product level. IKEA hasn’t adapted to recent customers
interests yet and is unable to promote sustainability correctly on product level until now. Not
communicating more sustainability than within the online report cannot be considered as a potential
option. It would disrespect the customer´s needs. Moreover, it would ignore the knowledge from
plentiful studies proving evidence of a positive correlation between corporate image and purchase
behavior or loyalty. This would contradict IKEA´s long-term strategy and vision of becoming a more
sustainable player in the market.
So, the image can be changed in a constructive manner by leveraging information about
sustainability in respect to the supply chain and the customers’ needs. The missing link between GSCM
and GM as pointed out as a gap in literature and practise, thus can be closed on operational level within
IKEA´s retail store(s) when applying one or some of the suggestions. These are for instance an
emphasized focus on employee education, product specific communication with the help of the
product scorecard model to compare products more easily, and highlight locally sourced products and
their attributes. Non-product, but more general sustainability-related information can be
communicated through posters. Using this medium to communicated yet only internally published
information can be as helpful as more story telling notices with accentuation on sustainability.
Loudspeaker announcements in addition are easy to implement and would address any customer in
store.
The successful and profitable satisfaction of customer requirements is IKEA´s responsibility for its
long-term survival at the market, and in order to be cited as a pro-active sustainable player in the
corporate world. That the image perception of “the ‘don’t be sad throw it away thing’ [is] completely
incompatible with the IKEA of today” according to Steve Howard can at least partly be changed when
the insights and recommendations from this research are respected and implemented with committed
activeness.
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And one day the on the Swedish flag based blue-yellow-colored company logo from IKEA will be
associated with a green company as if the two complementary primary colors blue and yellow standing
for sustainable supply chain management and green marketing are mixed, and then result into the
perfect secondary color green, which symbolizes green business activities and sustainability.
SUSTAINABLE
SUPPLY CHAIN MANAGEMENT
GREEN MARKETING
SUSTAINABLITY
Additionally, the research and its outcome underline the relevance of closing the gap in literature,
and that SCM and marketing shall and can be combined in practice. It emphasizes research
collaboration and knowledge exchange in both industries, and stands for an example of successful
combination and integration of the two mentioned departments in a company.
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5.1 Limitations of Research
The research provides IKEA with the findings of the survey, and gives some recommendations,
however will not suggest a detailed operational steps on how to implement the provided information.
As Visser (2008) pointed out about glocality, every country has its own local aspects, which also effects
the demand for sustainability. While this research has identified the needs and demands from
Germany, results may differ if conducted somewhere else. Therefore it is essential to born in mind that
outcomes are subject to change according to the country where the survey is conducted. In order to
make this research more valuable the survey can be continued to an amount of at least 351
respondents that would represent the average daily amount of visitors in the store. With regards to
consumer education, it remains unclear if a company can change the purchasing behavior from micro-
focused individuals to holistic and a macro perspective.
5.2 Implications of Research
This section will present some general implications for the logistics industry.
Marketing is very much about the customer. Supply chain management and logistics instead are a
unity of activities that rather happen backstage with less customer focus in comparison to classic
marketing. Logistics is pragmatic. It is efficient and less colorful and attractive, which are more
attributes of marketing. Logistics has to work, and has not to be pretty. Nevertheless, the research has
shown that customers are increasingly interested in the provision of these yet rather hidden activities
and processes. That is probably partly due to globalization where it is not any more obvious where a
product comes from. Additionally, the infrastructure of transparency-supporting media and increasing
information provision of social actions by the corporate world have led the customer become
increasingly aware of business undertakings. As a consequence, the customer has become more
mature and thus has more demands to be satisfied.
Traditionally SCM and logistics were mainly exposed to pressure for performance increase. They
were challenged to cope with constant change in regards to new technology, waste and cost cutting
and new techniques and processes. Today however information provision is not only scope of the
marketing department. Customers demand more than just track and trace information of their
deliveries today. They need more details. As a consequence SSCM is challenged to bundle more
information and make them easy to access for the customers in order to achieve a new stage of
transparency, customer acceptance and loyalty. These circumstances demand for experienced people
that have cross-sectional expertise from both SSCM and green marketing. This also implicates that they
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are involved both in B2B and in B2C industries, and that they have to cope with both ends (up and
downstream) of the supply chain. As revealed by the research, material origin is located at the very
upstream of the supply chain and ultimately is the most wanted information according to customers.
It seems ironic, that the most wanted information seems to be the most distant and obscure product
attribute for the customer.
Disassembling, recycling, and disposal have usually been the responsibilities of the end-customer
after the end of life of a product. With the introduction of return policies, SSCM is increasingly
challenged to cope with back stream operations. The linear approach from supplier, over producer to
end-customer is obsolete and is being replaced by a circular model. This so called cradle-to-cradle
approach will certainly emphasize waste consolidation at the retailer and not the end-customer, and
thus will give reason to the emergence of a waste management that is mainly managed by producers
and retailers, and will release the customer from his responsibility to take care of his private waste
properly. Companies therefore need to collaborate much more with the disposal and recovery industry
and with logistics providers that have specialized in his market. For this industry new challenges are
emerging with increasing customer requirements that will give opportunity for innovative ideas and
job possibilities.
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7 Appendices
7.1 Appendix 1
Five Dimensions of Dahlsrud´s CSR Definition
Source: Dahlsrud, 2008, p. 4
7.2 Appendix 2
“It quickly became clear, however, that a metaphor can only take us so far. What was needed was
a set of principles against which we could test CSR. These went through a few iterations, but I
eventually settled on five, which form a kind of mnemonic for CSR 2.0: Creativity (C), Scalability (S),
Responsiveness (R), Glocality (2) and Circularity (0). These principles, which will be explored in detail
in a later section, can be described briefly as follows:
Creativity (C)—The problem with the current obsession with CSR codes and standards (including
the new ISO 26000 standard) is that it encourages a tick-box approach to CSR. But our social and
environmental problems are complex and intractable. They need creative solutions, like Freeplay
Energy’s wind-up technology or Vodafone’s M-Pesa money transfer scheme (Visser 2013).
Scalability (S)—The CSR literature is liberally sprinkled with charming case studies of truly
responsible and sustainable projects. The problem is that so few of them ever go to scale. We need
more examples like Wal-Mart ‘choice editing’ by converting to sustainable fish, Tata creating the
affordable eco-efficient Nano car or Muhammad Yunus’s Grameen microfinance model (Beard 2012).
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Responsiveness (R)—More cross-sector partnerships and stakeholder-driven approaches are

needed at every level, as well as more uncomfortable, transformative responsiveness, which questions
whether particular industries, or the business model itself, are part of the solution or part of the
problem. A good example of responsiveness is the Corporate Leaders Group on Climate Change (Adey
and Visser 2007).
Glocality (2)—This means ‘think global, act local’. In a complex, interconnected, globalizing world,
companies (and their critics) will have to become far more sophisticated in combining international
norms with local contexts, finding local solutions that are culturally appropriate, without forsaking
universal principles. We are moving from an ‘either-or’ one-size-fits-all world to a ‘both-and’ strength-
in-diversity world.
Circularity (0)—Our global economic and commercial system is based on a fundamentally flawed
design, which acts as if there are no limits on resource consumption or waste disposal. Instead, we
need a cradle-to-cradle approach, closing the loop on production and designing products and
processes to be inherently ‘good’, rather than ‘less bad’, as Shaw Carpets does.”
Source: Visser (2008), p. 40.
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Source: Visser, 2014, p. 77
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7.3 Appendix 3
Survey Questions – German Version
NACHHALTIGKEITSUMFRAGE
1. Achten Sie bei Ihrem alltäglichen Kaufverhalten auf Nachhaltigkeit? (Kauf von Bio/Fair Trade-
Produkten, nur Kauf bei tatsächlichem Nutzen, keine Plastiktüten, Produktions- oder Ursprungsland)
Ja, sehr.
Geht so.
Nein, nicht wirklich.
2. Nehmen Sie IKEA als Nachhaltigkeits-bewusstes Unternehmen wahr?
Ja, sehr.
Geht so.
3. Reicht es Ihrer Meinung nach aus, wenn IKEA in einem jährlich veröffentlichten
Nachhaltigkeitsbericht Auskunft gibt, inwiefern es umweltbewusst agiert?
Ja, sehr.
Geht so.
4. Würde Sie Nachhaltigkeits-bezogene Informationen über einzelne Produkte haben wollen? Sind
diese wichtig für den Kaufentscheid?
Ja unbedingt, ich möchte solche Informationen über jedes Produkt erhalten!
Grundsätzlich wäre es prima, wenn man solche Information bei einigen Produkten auffinden
würde.
Nein, ich benötige Nachhaltigkeitsinformationen beim Produktkauf nicht. Für mich sind
andere Infos relevant.
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5. Welche Informationen würden Sie sich am ehesten wünschen? Bitte ranken Sie! (5 Sterne = sehr
wichtig, 1 Stern = nicht wichtig) Bitte Zutreffend ausmalen!
Herkunft der Materialien
Co2-Fußabdruck
Verbesserte Eigenschaften in Bezug auf Logistik (mehr Teile pro Palette oder
Container, Transport mittels Schiff/Flugzeug/Zug/LKW, Transport mit alternative
Kraftstoffe, Produktion mit erneuerbarer Energie)
Recycelbarkeit/ Rückgabemöglichkeit alter Produkte
recyceltes, recycelbares, oder wiederverwendetes Material
eigene "grüne" Vorzüge (Energieeinsparungen, ...)
Zertifizierungs-Label (bio, fair trade)
Herstellung durch Förderungsprojekte in Entwicklungsländern
anderes (wenn kein Vorschlag, dann mit 1 bewerten, sonst definieren bei Frage 6)
6. Definieren Sie "anderes": _____________________________________
7. Beim Kauf eines Möbelstücks oder Produktes was erachten Sie als am Wichtigsten?
Design = Schönheit und Formvollendung des Gegenstandes
Funktionalität = Alltagsverbesserungen und Funktionsfähigkeit
Qualität = Langlebigkeit und Haltbarkeit im Alltag
Nachhaltigkeit = Gut für den Planeten und grüneres Wohnen/Leben
Preis = Erschwinglichkeit
8. Was halten Sie von IKEA´s Rückgabemöglichkeit von Produkten?
Eine wundervolle Idee. Das wurde aber auch Zeit!
Finde ich gut, nutze ich aber eher weniger.
Für mich hat das überhaupt nichts mit Nachhaltigkeit zu tun.
Ist mir egal.
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9. Auf welche Art und Weise möchten Sie gern die Informationen erhalten?
QR Code
Poster
Newsletter
Produkt-Etikett
Workshops im Store
Unternehmenswebsite
anderweitig
10. Definieren Sie "anderweitig": ___________________________________________
English Translation
1. Do you pay attention to sustainability during your daily shopping? (purchase of organic/ fair trade
products, only purchase when real necessity, no plastic bags, country of production or origin)
Yes, very much.
So-So.
No, not really.
2. Do you perceive IKEA as an environmentally conscious company?
Yes, very much.
So-So.
No, not really.
3. According to you, does it suffice when IKEA mentions in a yearly-published sustainability report how
it is acting sustainably/responsibly?
Yes, very much.
So-So.
No, not really.
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4. Would you appreciate sustainability related information about products?
Yes, absolutely, I would like to know this type of information about every product.
Generally speaking, this would be nice to find such information at least for some products.
No, I don’t need sustainability information while purchasing. I value other information.
5. Which information would you value the most? Please score!
Products Material Origin
Carbon footprint
Improved Characteristics Related To Logistics
Recyclability/ return possibilities of old products
Recycled, Recyclable, Remanufactured Material
Customers Green Benefits
Certification Labels
Production through community projects in developing countries
others
6. Please define “others”!
7. What is the most important to you when purchasing a piece of furniture? Please rank!
Design = beauty and form of product
Functionality = improvement of daily life and functionality
Quality = long lasting and durability in daily life
Sustainability = good for planet and greener living
Price = affordability
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8. What do you think about the return policy of IKEA?
What a wonderful idea. It was about time.
I think that is good, although I am not really using it.
To me, this has nothing to do with sustainability.
I don’t care.
9. How does a customer want to retrieve information?
QR Code
Poster
Newsletter
Product label
Workshops at Store
Company web site
Other option
10. Please define “other option”!
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7.4 Appendix 4
KALLAX vs. EXPEDID
Source: http://www.ikea.com/ms/de_DE/campaigns/expedit_kallax/, 2016
73
III
7.5 Appendix 5
Customer benefits
LEGEND
HFB
1 Living room seating
2 store and organise furniture
3 workspaces
4 bedroom furniture
5 mattresses
6 bathroom
7 kitchen
8 Dining
9 Children´s IKEA
10 Lightning
11 Bed and Bath textiles
12 Home textiles
13 Rugs
14 Cooking
15 Eating
16 Decoration
17 Outdoor
18 Home organisation
19 secondary storage
92 IKEA Family
96 IKEA Food
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HFB product product description sustainability & customer information

number profits
5 HOVÄG 202.445.11 mattress rolled up mattress --> less carbon Easier to transport, 25 years distribution
footprint guarantee
9 Baby Design 100 recycled material open box with one click doable with innovation, product
Line elbow design, light weight
when you don’t have a spare hand, emission
18 HUMLARE 902.373.81 recycling bin recycling bin with straps to carry
until recycling bin recycle better
6 RAGRUND 902.530.74 bathroom Made from bamboo, withstand a Good against moist und humidity procurement/
furniture lot of water, fast growing, strong sourcing
and durable material
3 HILVER 802.782.87 table withstand a lot of water, fast procurement/

growing raw material, strong and sourcing
durable material
bamboo not just a funny word to
say
SINNERLIG 303.147.49 cork cork from Portugal lightweight, durable procurement/
Series sourcing, emissions
every nine years cork is harvested warmth and tactility to the
from trees without cutting them collection, water repellent
down
13 TANUM 302.126.75 rug use old rugs, produced in a recycled material recycling
remote village in Bangladesh
by women to support them
make something new from
something old
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11 DAGGVIDE 303.147.49 pillow case regrowing raw material reverse

material of product can be reused procurement/
cotton is from more sustainable sourcing
sources
4 GJÖRA 691.563.05 bed 80% (weight) from this product is for individualization, material can be
a renewable raw oiled, varnished, or waxed
material head and bed part can be installed,
as you want
the higher part can be used to hang
on clothing or decorated with cloth
the lower part at the feet can help to
hold on for putting on sox
from solid timber,
the adjustable bed sides enable the
usage of any type of mattress
16 KARMSUND 202.949.83 table mirror no lead used while production
12 DOFTRANKA 403.089.22 cloth Lyocell is cellulose extracted from Mixture of cotton and lyocell
wood fiber. Wood is a regrowing absorbs water humidity better and
resource and need much less helps to vaporize it more easily
water, fertilizer and pesticides which leaves the body dry and
than traditional cotton. Not warm. Two-sided different coloring
bleached with chlorine. Many allows more variation in bed room,
additional compounds are hidden buttons avoid that blanket
recycled or reused. No use of slips out of the sheets.
optical brightener.
2 KALLAX 302.758.61 shelf smaller outer walls, more lighter weight, same functionality,
products fit into a container, old boxed of EXPEDID still fit into
smaller wooden pegs --> new KALLAX
reduction of raw material with
same functionality
8 LISABO 302.990.70 table Less material needed for screws unique fitting need to fit one screw
per leg and done, perfect additional
table
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15 365+ 702.783.63 wine glass how many glasses fit into a easy to stack for little space, wide
container opening makes
it suitable for dessert serving, also
for hot beverages, thick glass more
resistant
18 GADDIS 502.894.09 basket from rattan and bamboo,
renewable resources,
no plastic at all
130 TERNSLEV, 402.852.56 rug TERNSLEV is a durable jute rug, durable, bring nature pack to a step closer to
SATTRUP 002.852.58 twist and turn to make different concrete jungle, nature:
shapes until perfect spot in your . It’s as comfortable in front of http://toolbox.inter-
home corner and L-shaped sofas as it is in ikea.com/sites/Prod
SATTRUP, made of sisal and jute, front of a two-seat sofa bed. uctrange/SalesStartP
wool added softness and created Jute is grown organically and is 100% ackages/201604_Rug
something totally unique without recyclable, s/Documents/SSP_2
changing the production and sisal is a fiber taken from the 01604_Rugs_HFB13.
technically skilled craftspeople agave plant that is durable and pdf
hand spin white jute rugs. naturally resistant to stain made by people! -->
project
1 SNÄPP bin more on each pallet, stackable, lower price, in two sizes, stackable
recycled postindustrial plastic and more on each pallet, easy to
except for the small handle bar in assemble,
steel for bathroom or kitchen, tested with
20000 open/close cycles =
PAHL 991.289.43 adjustable not throw away furniture adjustable table for children, grows
table with children,
funny colorful combinations
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7.6 Appendix 6
Product Score Card - Criteria
Source: Strandh, 2014
Criteria Intention
1. More from less (lightweight) To stimulate an efficient use of raw material
resources for our products, enabled by down
gauging design/construction improvement and
material selection, which secures function, style,
price, safety/health and quality requirements.
2. Renewable material To stimulate the use of renewable materials
within the IKEA range, enabled by material
selection and sourcing, which secures
function, style, price, safety/health and quality
requirements
3. Reused recycled material To stimulate the use of recycled materials within
the IKEA range, enabled by material selection
and sourcing, which secures function, style,
price, safety/health and quality requirements
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4. Material from more sustainable sources To stimulate the use of materials that originate
from a responsibly managed source or have a
proven significantly low environmental impact,
enabled by material selection and sourcing,
which secures function, style, price,
safety/health and quality requirements.
5. Recyclability at life-end To stimulate the recyclability of our products,
enabled by design/construction improvement
and material selection, which secures function,
style, price, safety/health and quality
requirements
6. Quality To stimulate the quality and durability of our
products, enabled by design/construction
improvement, material selection and supplier
selection/support, which secures function, style,
price and safety/health requirements as well
7. Transport efficiency To stimulate transport efficient packaging of our
improvement and packaging improvement,
which protects product quality and secures user-
friendliness, all the way to the customer’s home
8. Energy use in production To stimulate energy efficient production of our
improvement and supplier selection/support,
safety/health and quality requirements
9. Renewable energy in production To stimulate the use of renewable energy
sources for the production of our products,
enabled by supplier selection and support, which
secures function, style, price, safety/health and
quality requirements
10. Raw material utilization in production To stimulate a raw material efficient production
of our products, enabled by design/construction
improvement and supplier selection/support,
safety/health and quality requirements
11. Sustainable life @home (reduce water, To stimulate an increase in efficiency of IKEA
energy, waste, healthier life) products that consume energy, water or help
customers minimize their waste volumes,
enabled by technological, design and/or
constructional improvement, which secures
function, style, price, safety/health and quality
requirements
Source: Strandh, 2014
79

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Master Degree Project in Logistics and Transport Management

Combination of Sustainable Supply Chain Management

Supervisor: Michael Browne

Sustainable supply chain management contributes significantly to make a product more

The ‘don’t be sad throw it away thing’ would be

Steve Howard, IKEA´s chief sustainability officer

1.1 IKEA and CSR........................................................................................................................ 2

1.2 Business Problem and Purpose of Research ....................................................................... 4

1.3 Research Question and Potential Outcome ........................................................................ 6

1.4 Structure of the Report ....................................................................................................... 7

2 Literature Review ................................................................................................................ 8

2.1 Evaluation of existing Body of Knowledge .......................................................................... 8

2.1.1 Sustainability and CSR ................................................................................................. 8

2.1.2 Sustainable Supply Chain Management .................................................................... 10

2.1.3 Environmental Marketing.......................................................................................... 12

2.1.4 Gaps in Literature ...................................................................................................... 14

2.2 Theoretical Framework ..................................................................................................... 15

2.2.1 Expanded Focus in Marketing ................................................................................... 16

2.2.2 6Ps Hub-and-Spoke Integration Model ..................................................................... 17

2.2.3 Communication Channels.......................................................................................... 20

3.1 Identification of Paradigm ................................................................................................. 21

3.2 Method Approach ............................................................................................................. 22

3.2.1 Data Collection Process ............................................................................................. 23

3.2.2 Purpose of Survey´s Questions .................................................................................. 24

3.2.3 Link to Hub-and-Spoke Framework ........................................................................... 28

3.2.4 Methods of Analysis .................................................................................................. 29

3.3 Delimitation of Research Design ....................................................................................... 30

3.3.1 Generalizability .......................................................................................................... 30

3.3.2 Validity ....................................................................................................................... 31

3.3.3 Reliability ................................................................................................................... 31

3.3.4 Limitation of Methodology........................................................................................ 32

4 Results and Discussion....................................................................................................... 33

4.1 Results ............................................................................................................................... 33

4.1.3 Communication media .............................................................................................. 40

4.2 Interpretation and Discussion ........................................................................................... 42

4.3.1 Employee Education .................................................................................................. 47

4.3.2 Product Specific Communication .............................................................................. 48

4.3.4 Further Ideas ............................................................................................................. 52

5.1 Limitations of Research ..................................................................................................... 57

5.2 Implications of Research ................................................................................................... 57

7.1 Appendix 1 ......................................................................................................................... 65

7.2 Appendix 2 ......................................................................................................................... 65

7.3 Appendix 3 ......................................................................................................................... 68

7.4 Appendix 4 ......................................................................................................................... 73

7.5 Appendix 5 ......................................................................................................................... 74

7.6 Appendix 6 ......................................................................................................................... 78

Figure 1 Classical and Expanded Focus of Marketing....................................................................... 16

B2B Business to Business

B2C Business to Customer

GSCM Green Supply Chain Management

IWAY IKEA Way on Purchasing Products, Materials and Services

SSCM Sustainable Supply Chain Management

In retail sector 1, environmentally conscious stakeholders commenced to demand more sustainable

Although governmentally imposed regulations and a sub-set of environmentally conscious

1.1 IKEA and CSR

1.2 Business Problem and Purpose of Research

1.3 Research Question and Potential Outcome

1.4 Structure of the Report

2.1 Evaluation of existing Body of Knowledge

2.1.1 Sustainability and CSR