The Role of Consumers in Developing Ethically Oriented Business Models: Cases from the Food Industry

This paper deals with the role of ethical consumers in shaping and transforming the market, and explores how demand-supply (D-S) interactions may lead to the development of new ethically oriented business models. We conducted a multiple-case study by analyzing six innovative ventures, that came out from different levels of interaction between ethical demand and supply, in the food market. Findings show that the higher the level of D-S interaction, the greater the cooperation between consumers and firms. When the degree of D-S interaction is low, consumers act as ‘ethically-responsible purchasers’, and the mainstream market is adapted to consumers ethical needs. When the degree of D-S interaction is high, consumers become co-producers of the new venture, and the market is substantially transformed (domesticated)