Ethical concerns of Internet users continue to rise. Accordingly, several scholars have called for systematic empirical research to address these issues. This study examines the conceptualization and measurement of consumers' perceptions regarding the ethics of online retailers (CPEOR). Also, this research represents a first step into the analysis of the relationship between CPEOR, consumers' general Internet expertise and reported positive word of mouth (WOM). Results, from a convenience sample of 357 online shoppers, suggest that CPEOR can be operationalized as a (...) second-order construct composed of four dimensions: security, privacy, fulfillment, and non-deception. Our findings also indicate that consumers' general Internet expertise significantly improves CPEOR and CPEOR are strongly predictive of consumers' WOM. Managerial and research implications are offered. (shrink)

Ethical concerns of Internet users continue to rise. Accordingly, several scholars have called for systematic empirical research to address these issues. This study examines the conceptualization and measurement of consumers' perceptions regarding the ethics of online retailers. Also, this research represents a first step into the analysis of the relationship between CPEOR, consumers' general Internet expertise and reported positive word of mouth. Results, from a convenience sample of 357 online shoppers, suggest that CPEOR can be operationalized as a second-order construct (...) composed of four dimensions: security, privacy, fulfillment, and non-deception. Our findings also indicate that consumers' general Internet expertise significantly improves CPEOR and CPEOR are strongly predictive of consumers' WOM. Managerial and research implications are offered. (shrink)

This study investigates the negative influence of consumer's perceptions of online retailer's deceptive practices (perceived deception) on consumer's relational variables (satisfaction and loyalty intentions to the online retailer). Also, the moderating role of product type (goods versus services), consumer's attitude toward the Internet, and consumer's demographics in the deception-relational outcomes link is considered. Data from 398 online consumers revealed that satisfaction totally mediated the influence of deception on loyalty. Furthermore, the deception-satisfaction link was moderated by all the hypothesized variables. Interestingly, (...) a direct effect of deception on loyalty was found among more educated consumers, consumers who had a more positive attitude toward the Internet and consumers who had purchased a physical product. Implications for theory and management are discussed. (shrink)

This study investigates the negative influence of consumer’s perceptions of online retailer’s deceptive practices on consumer’s relational variables. Also, the moderating role of product type, consumer’s attitude toward the Internet, and consumer’s demographics in the deception-relational outcomes link is considered. Data from 398 online consumers revealed that satisfaction totally mediated the influence of deception on loyalty. Furthermore, the deception-satisfaction link was moderated by all the hypothesized variables. Interestingly, a direct effect of deception on loyalty was found among more educated consumers, (...) consumers who had a more positive attitude toward the Internet and consumers who had purchased a physical product. Implications for theory and management are discussed. (shrink)

Drawing on the influence of primacy and recency effects in processing information about corporate social responsibility, the authors examine how internal and external factors impact the consumer-firm relationship in the presence of contradictory CSR information. Evaluating these factors provides a more comprehensive understanding of how consumers react to unethical and socially irresponsible actions. Contrary to recent research that suggests a reactive CSR communication strategy to be best due to recency effects, the present findings show that past customer experiences with the (...) firm facilitate a ‘primacy effect’. Thus, when corporate social irresponsibility occurs, a customer’s prior experiences mitigate negative consequences. Conversely, a firm’s positive CSR reputation may provide goodwill, although it does not guarantee that consumers will process CSR information differently. Therefore, firms cannot build a strong CSR reputation and expect to be immune from the consequences of CSI. Given these new findings of how consumers process contradictory CSR information, firms should implement a strategic and deliberate communication plan that delivers different messages to different stakeholders. Specifically, these findings suggest that firms benefit most from a proactive communication strategy with their current customers and a reactive communication strategy with the general public. (shrink)

While many models of ethical decision-making in marketing have been presented in the literature, no recent attempts have been made to explicitly account for ethical decision-making from a marketing research perspective. We present an ethical framework for marketing research, the various philosophies of ethics, and a few enduring marketing ethical decision-making models, thus laying the foundation for a descriptive model for ethics in marketing research. The authors then develop an integrated model of ethical decision-making that incorporates the perspectives of all (...) parties involved in the process of making ethical marketing research decisions, the various philosophies, and external variables. The proposed model is compared with some of the models considered in the literature and illustrated with a marketing research application. (shrink)

While there is a significant amount of research investigating managerial ethical judgments, a limited amount examines consumer judgments of unethical corporate behavior and its impact on the marketplace. This study examines how consumers’ commitment to a company impacts not only their ethical judgment of corporate behavior but also the outcomes of that judgment. The authors test hypotheses with data from 334 consumers and find that consumers’ level of commitment attenuates the level of perceived fairness. More specifically, highly committed consumers may (...) forgive companies for behaviors when perceived harm is low, but become progressively dissatisfied as the level of perceived harm increases. Results of the study point to the importance of considering ethical behavior from a consumer perspective. If corporate actions are perceived as unethical, the company stands to lose favor with their most committed customers. Considering that more time, effort and investment is required to gain a new customer as to retain an old, this study shows that engaging in behavior perceived as unethical by consumers risks alienating the most committed customers. (shrink)

While there is a significant amount of research investigating managerial ethical judgments, a limited amount examines consumer judgments of unethical corporate behavior and its impact on the marketplace. This study examines how consumers' commitment to a company impacts not only their ethical judgment of corporate behavior but also the outcomes of that judgment. The authors test hypotheses with data from 334 consumers and find that consumers' level of commitment attenuates the level of perceived fairness. More specifically, highly committed consumers may (...) forgive companies for behaviors when perceived harm is low, but become progressively dissatisfied as the level of perceived harm increases. Results of the study point to the importance of considering ethical behavior from a consumer perspective. If corporate actions are perceived as unethical, the company stands to lose favor with their most committed customers. Considering that more time, effort and investment is required to gain a new customer as to retain an old, this study shows that engaging in behavior perceived as unethical by consumers risks alienating the most committed customers. (shrink)

Researchers have used attribution theory as a basis for exploring the relationship between consumers'' inferences of advertiser motivation (attributions) and advertising response. This study postulated the existence of two new types of attributions which relate to the perceived ethics of the advertiser (advertiser ethical attributions) and the advertising message (message ethical attributions). Research conducted among a nationally representative sample of 273 adults: (1) verified the existence of both advertiser and message ethical attributions, (2) demonstrated the independence of advertiser and message (...) ethical attributions both from each other and from other measures of advertiser and message evaluation, (3) identified the specific advertising characteristics which lead to the formation of each type of ethical attribution and (4) demonstrated a significant relationship between advertiser and message ethical attributions and measures of advertising response. (shrink)

The effectiveness of complaint handling and service recovery policies in customer retention has been the focus of both scholars and service organizations. In the past decade, Justice Theory has provided the basis of the dominant theoretical framework for complaint management and service recovery. However, it does not explicitly address unfair trade practices, which constitute an ethical issue. Favorable outcomes in complaint handling may not be able to restore the reputation of a company and the potential harm perceived by consumers. Using (...) face-to-face interviews, this study applies Fairness Theory to explore the psychological responses of consumers in the post-complaint phase, particularly in ethical judgment. The findings suggest that an unfavorable outcome in the post-complaint stage leads to counterfactual thinking by the consumer about the consumer's state of well-being. The complaint must be due to the discretionary actions of the service provider whose accountability is assessed. Those harmful actions are then judged against an ethical standard. Explanations can reduce blame, and their effectiveness is moderated by outcome favorability but not ethical judgment. Favorable outcome, captured by "Would Perception," has only limited influence on Perceived Potential Harm (PPH), which is an important determinant of ethical judgment. This study makes both theoretical and practical contributions. It is the first study to validate Fairness Theory empirically and apply it to complaint handling as a complement of Justice Theory in the information and communication technology (ICT) service context. The study indicates that customers may condemn a service provider because of PPH even though the outcome is favorable. Unfair trade practices are what make customers hate ICT service providers. (shrink)

Although consumers are increasingly engaged with ethical factors when forming opinions about products and making purchase decisions, recent studies have highlighted significant differences between consumers' intentions to consume ethically, and their actual purchase behaviour. This article contributes to an understanding of this 'Ethical Purchasing Gap' through a review of existing literature, and the inductive analysis of focus group discussions. A model is suggested which includes exogenous variables such as moral maturity and age which have been well covered in the literature, (...) together with further impeding factors identified from the focus group discussions. For some consumers, inertia in purchasing behaviour was such that the decision-making process was devoid of ethical considerations. Several consumers manifested their ethical views through post-purchase dissonance and retrospective feelings of guilt. Others displayed a reluctance to consume ethically due to personal constraints, a perceived negative impact on image or quality, or an outright negation of responsibility. Those who expressed a desire to consume ethically often seemed deterred by cynicism, which caused them to question the impact they, as an individual, could achieve. These findings enhance the understanding of ethical consumption decisions and provide a platform for future research in this area. (shrink)