Abstract

This research investigates the influence that consumers’ perceptions of retail business ethics have on their responses when retailers either create social discount spaces or do not. Using scenarios to imply these social practices and structural equation modeling to test the hypotheses among a sample of 689 respondents, the authors find that consumers’ perceptions of retail business ethics have positive effects on consumer loyalty, both directly and through consumer trust, as well as positive, strong influences on the retailer’s corporate social responsibility and corporate reputation. Furthermore, consumers’ perceptions of retail business ethics exert a stronger effect on consumer trust in integrated social discount spaces, though social discount practices do not affect the link between such perceptions and loyalty. Compared with when the retailer does not offer discount space, collaborative and integrated social discount spaces have weaker effects on trust and loyalty to the retailer. These findings have several notable theoretical and practical implications.