The Effect of Consumer Perceptions of the Ethics of Retailers on Purchase Behavior and Word-of-Mouth: The Moderating Role of Ethical Beliefs

Cheung, Millissa F. Y.; To, W. M.

Abstract

This paper explores how consumers perceive retailer ethics. Based on a review of the marketing and consumer research literature, we conceptualize consumer perceptions of the ethics of retailers (CPER) as a multidimensional construct and propose that its effects on consumer purchase behavior and word-of-mouth communication are more salient when consumers have strong rather than weak ethical beliefs. The model was validated using a random sample of 399 respondents in a collectivist society. The results of structural equation modeling confirmed that CPER is a second-order construct comprising product fairness, price fairness, non-deception, fair trade, and green products. CPER positively predicted consumer purchase behavior and word-of-mouth communication. Moreover, ethical beliefs moderated the positive relationship between CPER and the word-of-mouth communication of consumers with strong ethical beliefs but did not moderate the relationship between CPER and purchase behavior. The implications of the findings are discussed.

Citation

Cheung, M. F. Y., & To, W. M. (2021). The Effect of Consumer Perceptions of the Ethics of Retailers on Purchase Behavior and Word-of-Mouth: The Moderating Role of Ethical Beliefs. Journal of Business Ethics, 171(4), 771-788. https://doi.org/10.1007/s10551-020-04431-6

• Journal Article Type: Article
• Acceptance Date: Jan 10, 2020
• Online Publication Date: Feb 25, 2020
• Publication Date: 2021-07
• Deposit Date: Feb 4, 2023
• Journal: Journal of Business Ethics
• Print ISSN: 0167-4544
• Electronic ISSN: 1573-0697
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• Volume: 171
• Issue: 4
• Pages: 771-788
• DOI: https://doi.org/10.1007/s10551-020-04431-6
• Keywords: Consumer perceptions of the ethics of retailers, Ethical beliefs, Purchase behavior