IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v141y2017i3d10.1007_s10551-015-2663-8.html
   My bibliography  Save this article

Consumers’ Perceptions of Retail Business Ethics and Loyalty to the Retailer: The Moderating Role of Social Discount Practices

Author

Listed:
  • Mbaye Fall Diallo

    (Université of Lille 2 (IMMD) & LSMRC Lab (Université de Lille-Skéma Business School))

  • Christine Lambey-Checchin

    (Université Clermont Auvergne, Université Blaise Pascal, EA3849, CRCGM)

Abstract

This research investigates the influence that consumers’ perceptions of retail business ethics have on their responses (trust and loyalty) when retailers either create social discount spaces (integrated or collaborative) 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

Suggested Citation

  • Mbaye Fall Diallo & Christine Lambey-Checchin, 2017. "Consumers’ Perceptions of Retail Business Ethics and Loyalty to the Retailer: The Moderating Role of Social Discount Practices," Journal of Business Ethics, Springer, vol. 141(3), pages 435-449, March.
  • Handle: RePEc:kap:jbuset:v:141:y:2017:i:3:d:10.1007_s10551-015-2663-8
    DOI: 10.1007/s10551-015-2663-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-015-2663-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10551-015-2663-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chieh-Peng Lin & Shwu-Chuan Chen & Chou-Kang Chiu & Wan-Yu Lee, 2011. "Understanding Purchase Intention During Product-Harm Crises: Moderating Effects of Perceived Corporate Ability and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(3), pages 455-471, September.
    2. Julie Pirsch & Shruti Gupta & Stacy Grau, 2007. "A Framework for Understanding Corporate Social Responsibility Programs as a Continuum: An Exploratory Study," Journal of Business Ethics, Springer, vol. 70(2), pages 125-140, January.
    3. Brunk, Katja H., 2010. "Exploring origins of ethical company/brand perceptions: Reply to Shea and Cohn's commentaries," Journal of Business Research, Elsevier, vol. 63(12), pages 1364-1367, December.
    4. P. Van Kenhove & K. De Wulf & S. Steenhaut, 2003. "The Relationship between Consumers’ Unethical Behavior and Customer Loyalty in a Retail Environment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/167, Ghent University, Faculty of Economics and Business Administration.
    5. Weidner, Kelly L. & Rosa, José Antonio & Viswanathan, Madhu, 2010. "Marketing to subsistence consumers: Lessons from practice," Journal of Business Research, Elsevier, vol. 63(6), pages 559-569, June.
    6. Arne Nygaard & Harald Biong, 2010. "Erratum to: The Influence of Retail Management’s Use of Social Power on Corporate Ethical Values, Employee Commitment, and Performance," Journal of Business Ethics, Springer, vol. 97(3), pages 339-339, December.
    7. Katja Brunk, 2012. "Un/ethical Company and Brand Perceptions: Conceptualising and Operationalising Consumer Meanings," Journal of Business Ethics, Springer, vol. 111(4), pages 551-565, December.
    8. Roman, Sergio & Ruiz, Salvador, 2005. "Relationship outcomes of perceived ethical sales behavior: the customer's perspective," Journal of Business Research, Elsevier, vol. 58(4), pages 439-445, April.
    9. Harald Biong & Arne Nygaard & Ragnhild Silkoset, 2010. "The Influence of Retail Management’s Use of Social Power on Corporate Ethical Values, Employee Commitment, and Performance," Journal of Business Ethics, Springer, vol. 97(3), pages 341-363, December.
    10. Arnold, Denis G. & Valentin, Andres, 2013. "Corporate social responsibility at the base of the pyramid," Journal of Business Research, Elsevier, vol. 66(10), pages 1904-1914.
    11. Öberseder, Magdalena & Schlegelmilch, Bodo B. & Murphy, Patrick E., 2013. "CSR practices and consumer perceptions," Journal of Business Research, Elsevier, vol. 66(10), pages 1839-1851.
    12. Clement, Ronald W., 2006. "Just how unethical is American business?," Business Horizons, Elsevier, vol. 49(4), pages 313-327.
    13. Maria Seitanidi & Andrew Crane, 2009. "Implementing CSR Through Partnerships: Understanding the Selection, Design and Institutionalisation of Nonprofit-Business Partnerships," Journal of Business Ethics, Springer, vol. 85(2), pages 413-429, April.
    14. Andrea Stanaland & May Lwin & Patrick Murphy, 2011. "Consumer Perceptions of the Antecedents and Consequences of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 102(1), pages 47-55, August.
    15. Leslier Valenzuela & Jay Mulki & Jorge Jaramillo, 2010. "Impact of Customer Orientation, Inducements and Ethics on Loyalty to the Firm: Customers’ Perspective," Journal of Business Ethics, Springer, vol. 93(2), pages 277-291, May.
    16. Ailawadi, Kusum L. & Neslin, Scott A. & Luan, Y. Jackie & Taylor, Gail Ayala, 2014. "Does retailer CSR enhance behavioral loyalty? A case for benefit segmentation," International Journal of Research in Marketing, Elsevier, vol. 31(2), pages 156-167.
    17. Lombart, Cindy & Louis, Didier, 2014. "A study of the impact of Corporate Social Responsibility and price image on retailer personality and consumers' reactions (satisfaction, trust and loyalty to the retailer)," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 630-642.
    18. Chi-Shiun Lai & Chih-Jen Chiu & Chin-Fang Yang & Da-Chang Pai, 2010. "The Effects of Corporate Social Responsibility on Brand Performance: The Mediating Effect of Industrial Brand Equity and Corporate Reputation," Journal of Business Ethics, Springer, vol. 95(3), pages 457-469, September.
    19. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    20. Mbaye Fall Diallo & Jean-Louis Chandon & Gérard Cliquet & Jean Philippe, 2013. "Factors influencing consumer behaviour towards store brands: evidence from the French market," Post-Print hal-01796015, HAL.
    21. Steenkamp, Jan-Benedict E M & Baumgartner, Hans, 1998. "Assessing Measurement Invariance in Cross-National Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(1), pages 78-90, June.
    22. Cindy Lombart & Didier Louis, 2014. "A study of the impact of Corporate Social Responsibility and price image on retailer personality and consumers' reactions (satisfaction, trust and loyalty to the retailer)," Post-Print hal-01027577, HAL.
    23. Babin, Barry J. & Griffin, Mitch & Boles, James S., 2004. "Buyer reactions to ethical beliefs in the retail environment," Journal of Business Research, Elsevier, vol. 57(10), pages 1155-1163, October.
    24. Jiyun Kang & Gwendolyn Hustvedt, 2014. "Building Trust Between Consumers and Corporations: The Role of Consumer Perceptions of Transparency and Social Responsibility," Journal of Business Ethics, Springer, vol. 125(2), pages 253-265, December.
    25. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    26. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    27. Brunk, Katja H., 2010. "Exploring origins of ethical company/brand perceptions -- A consumer perspective of corporate ethics," Journal of Business Research, Elsevier, vol. 63(3), pages 255-262, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Xing-Xin & He, Ai-Zhong, 2022. "The impact of retailers’ sustainable development on consumer advocacy: A chain mediation model investigation," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    2. Aboul-Dahab, Sameh & Agag, Gomaa & Hassan Abdelmoety, Ziad, 2021. "Examining the influence of cultural and ethical ideology on consumers’ perceptions about the ethics of online retailers and its effects on their loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    3. Irene Sánchez-González & Irene Gil-Saura & María Eugenia Ruiz-Molina, 2020. "Ethically Minded Consumer Behavior, Retailers’ Commitment to Sustainable Development, and Store Equity in Hypermarkets," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
    4. Millissa F. Y. Cheung & W. M. To, 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, Springer, vol. 171(4), pages 771-788, July.
    5. Zimand-Sheiner, Dorit & Ryan, Tanya & Kip, Sema Misci & Lahav, Tamar, 2020. "Native advertising credibility perceptions and ethical attitudes: An exploratory study among adolescents in the United States, Turkey and Israel," Journal of Business Research, Elsevier, vol. 116(C), pages 608-619.
    6. Oriol Iglesias & Stefan Markovic & Mehdi Bagherzadeh & Jatinder Jit Singh, 2020. "Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty," Journal of Business Ethics, Springer, vol. 163(1), pages 151-166, April.
    7. Hsiu‐Hua Chang & Wei‐Jen Chuang, 2021. "Encourage stakeholder engagement in sustainable development: Drivers of consumers themselves benefits and society welfares," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 748-762, March.
    8. Pilar Fernández‐Ferrín & Sandra Castro‐González & Belén Bande, 2021. "Corporate social responsibility, emotions, and consumer loyalty in the food retail context: Exploring the moderating effect of regional identity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 648-666, March.
    9. Behera, Rajat Kumar & Bala, Pradip Kumar & Rana, Nripendra P. & Kizgin, Hatice, 2022. "Cognitive computing based ethical principles for improving organisational reputation: A B2B digital marketing perspective," Journal of Business Research, Elsevier, vol. 141(C), pages 685-701.
    10. Mainardes, Emerson Wagner & Coutinho, Ananda Raquel Silva & Alves, Helena Maria Batista, 2023. "The influence of the ethics of E-retailers on online customer experience and customer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    11. Henri Kuokkanen & William Sun, 2020. "Companies, Meet Ethical Consumers: Strategic CSR Management to Impact Consumer Choice," Journal of Business Ethics, Springer, vol. 166(2), pages 403-423, October.
    12. Giovanni Zampone & Natalia Aversano & Giuseppe Sannino, 2023. "Effects of Corporate Social Responsibility Disclosure on Brand Value: An analysis of Interbrand Companies," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(6), pages 1-17, February.
    13. Daniela Šálková & Inna Čábelková & Dita Hommerová, 2024. "Ethical Consumption: What Makes People Buy "Ethical" Products," Central European Business Review, Prague University of Economics and Business, vol. 2024(2), pages 27-52.
    14. Dang, Van Thac & Nguyen, Ninh & Pervan, Simon, 2020. "Retailer corporate social responsibility and consumer citizenship behavior: The mediating roles of perceived consumer effectiveness and consumer trust," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    15. Saheli Goswami & Jung Ha-Brookshire & Wes Bonifay, 2018. "Measuring Perceived Corporate Hypocrisy: Scale Development in the Context of U.S. Retail Employees," Sustainability, MDPI, vol. 10(12), pages 1-26, December.
    16. Yu-Shan Huang & Shuqin Wei & Tyson Ang, 2022. "The Role of Customer Perceived Ethicality in Explaining the Impact of Incivility Among Employees on Customer Unethical Behavior and Customer Citizenship Behavior," Journal of Business Ethics, Springer, vol. 178(2), pages 519-535, June.
    17. Mbaye Fall Diallo & Norchène Ben Dahmane Mouelhi & Mahesh Gadekar & Marie Schill, 2021. "CSR Actions, Brand Value, and Willingness to Pay a Premium Price for Luxury Brands: Does Long-Term Orientation Matter?," Journal of Business Ethics, Springer, vol. 169(2), pages 241-260, March.
    18. Alatawi, Ibrahim A. & Ntim, Collins G. & Zras, Anis & Elmagrhi, Mohamed H., 2023. "CSR, financial and non-financial performance in the tourism sector: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 89(C).
    19. Seong Ho Lee, 2021. "Effects of Retailers’ Corporate Social Responsibility on Retailer Equity and Consumer Usage Intention," Sustainability, MDPI, vol. 13(6), pages 1-9, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hsiu-Hua Chang, 2017. "Consumer Socially Sustainable Consumption: The Perspective toward Corporate Social Responsibility, Perceived Value, and Brand Loyalty," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 13(2), pages 167-191, August.
    2. Vicenta Sierra & Oriol Iglesias & Stefan Markovic & Jatinder Jit Singh, 2017. "Does Ethical Image Build Equity in Corporate Services Brands? The Influence of Customer Perceived Ethicality on Affect, Perceived Quality, and Equity," Journal of Business Ethics, Springer, vol. 144(3), pages 661-676, September.
    3. Hsiu-Hua Chang & Long-Chuan Lu, 2019. "Actively Persuading Consumers to Enact Ethical Behaviors in Retailing: The Influence of Relational Benefits and Corporate Associates," Journal of Business Ethics, Springer, vol. 156(2), pages 399-416, May.
    4. Oriol Iglesias & Stefan Markovic & Jatinder Jit Singh & Vicenta Sierra, 2019. "Do Customer Perceptions of Corporate Services Brand Ethicality Improve Brand Equity? Considering the Roles of Brand Heritage, Brand Image, and Recognition Benefits," Journal of Business Ethics, Springer, vol. 154(2), pages 441-459, January.
    5. Stefan Markovic & Oriol Iglesias & Jatinder Jit Singh & Vicenta Sierra, 2018. "How does the Perceived Ethicality of Corporate Services Brands Influence Loyalty and Positive Word-of-Mouth? Analyzing the Roles of Empathy, Affective Commitment, and Perceived Quality," Journal of Business Ethics, Springer, vol. 148(4), pages 721-740, April.
    6. Lacœuilhe, Jérôme & Louis, Didier & Lombart, Cindy, 2017. "Impacts of product, store and retailer perceptions on consumers’ relationship to terroir store brand," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 43-53.
    7. Lombart, Cindy & Louis, Didier, 2016. "Sources of retailer personality: Private brand perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 117-125.
    8. Efstathios Dimitriadis & Eleni Zilakaki, 2019. "The Effect of Corporate Social Responsibility on Customer Loyalty in Mobile Telephone Companies," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 433-450.
    9. María Eugenia López-Pérez & Iguácel Melero-Polo & Rosario Vázquez-Carrasco & Jesús Cambra-Fierro, 2018. "Sustainability and Business Outcomes in the Context of SMEs: Comparing Family Firms vs. Non-Family Firms," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    10. Eveland, Vicki Blakney & Crutchfield, Tammy Neal & Tsang, Ronald C.W. & Sabol, Misty A., 2024. "Using PLS-SEM to test the relationship model of corporate social performance across the product/service continuum: When do shared values matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    11. Kim, Yeonshin & Hur, Won-Moo & Lee, Luri, 2023. "Understanding customer participation in CSR activities: The impact of perceptions of CSR, affective commitment, brand equity, and corporate reputation," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    12. Richard R. Klink & Lan Wu, 2017. "Creating ethical brands: the role of brand name on consumer perceived ethicality," Marketing Letters, Springer, vol. 28(3), pages 411-422, September.
    13. Lombart, Cindy & Louis, Didier & Labbé-Pinlon, Blandine, 2016. "Price image consequences," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 107-116.
    14. Oriol Iglesias & Stefan Markovic & Mehdi Bagherzadeh & Jatinder Jit Singh, 2020. "Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty," Journal of Business Ethics, Springer, vol. 163(1), pages 151-166, April.
    15. Mª. Eugenia López‐Pérez & Iguácel Melero & F. Javier Sesé, 2017. "Does Specific CSR Training for Managers Impact Shareholder Value? Implications for Education in Sustainable Development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(5), pages 435-448, September.
    16. Jung-Yong Lee & Chang-Hyun Jin, 2019. "The Role of Ethical Marketing Issues in Consumer-Brand Relationship," Sustainability, MDPI, vol. 11(23), pages 1-21, November.
    17. Jérôme Lacoeuilhe & Didier Louis & Cindy Lombart, 2017. "Impacts of product, store and retailer perceptions on consumers’ relationship to terroir store brand," Post-Print hal-01672920, HAL.
    18. Sansome, Kate & Wilkie, Dean & Conduit, Jodie, 2024. "Beyond information availability: Specifying the dimensions of consumer perceived brand transparency," Journal of Business Research, Elsevier, vol. 170(C).
    19. Mª Eugenia López‐Pérez & Iguácel Melero & F Javier Sese, 2017. "Management for Sustainable Development and Its Impact on Firm Value in the SME Context: Does Size Matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 985-999, November.
    20. Swaen, Valérie & Demoulin, Nathalie & Pauwels-Delassus, Véronique, 2021. "Impact of customers’ perceptions regarding corporate social responsibility and irresponsibility in the grocery retailing industry: The role of corporate reputation," Journal of Business Research, Elsevier, vol. 131(C), pages 709-721.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:141:y:2017:i:3:d:10.1007_s10551-015-2663-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.