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

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  • Millissa F. Y. Cheung

    (Hong Kong Shue Yan University)

  • W. M. To

    (Macao Polytechnic Institute)

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.

Suggested Citation

  • 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.
    • Handle: RePEc:kap:jbuset:v:171:y:2021:i:4:d:10.1007_s10551-020-04431-6
    DOI: 10.1007/s10551-020-04431-6
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    Cited by:

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    4. 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.
    5. Li, Zhaotong & Wu, Min & Teo, Chee-Chong & Yuen, Kum Fai, 2024. "An investigation of consumer switching intention on the use of automated courier station from a signaling perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    6. Smirti Kutaula & Alvina Gillani & Diana Gregory-Smith & Boris Bartikowski, 2024. "Ethical Consumerism in Emerging Markets: Opportunities and Challenges," Journal of Business Ethics, Springer, vol. 191(4), pages 651-673, May.
    7. Ricky Y. K. Chan & Piyush Sharma & Abdulaziz Alqahtani & Tak Yan Leung & Ashish Malik, 2024. "Mediating Role of Cultural Values in the Impact of Ethical Ideologies on Chinese Consumers’ Ethical Judgments," Journal of Business Ethics, Springer, vol. 191(4), pages 865-884, May.
    8. Castaldo, Sandro & Ciacci, Andrea & Penco, Lara, 2023. "Perceived corporate social responsibility and job satisfaction in grocery retail: A comparison between low- and high-productivity stores," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    9. Niu, Ben & Mvondo, Gustave Florentin Nkoulou, 2024. "I Am ChatGPT, the ultimate AI Chatbot! Investigating the determinants of users' loyalty and ethical usage concerns of ChatGPT," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    10. Landisoa Rabeson & Corina Paraschiv & Laurent Bertrandias & Régis Chenavaz, 2022. "Couple Ethical Purchase Behavior and Joint Decision Making: Understanding the Interaction Process and the Dynamics of Influence," Sustainability, MDPI, vol. 14(13), pages 1-19, July.
    11. Shams, Riad & Chatterjee, Sheshadri & Chaudhuri, Ranjan, 2024. "Developing brand identity and sales strategy in the digital era: Moderating role of consumer belief in brand," Journal of Business Research, Elsevier, vol. 179(C).
    12. Chao Xing & Yuming Zhang & David Tripe, 2024. "Ethical Consumers and Low-Income Sellers on China’s Reward-Based Crowdfunding Platforms: Are Poverty Alleviation Campaigns More Successful?," Journal of Business Ethics, Springer, vol. 191(4), pages 793-810, May.
    13. 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).
    14. Muhammad Waqas Farooq & Dr. Khawaja Hisham Ul Hassan & Faiza Nawaz, 2024. "Integrating Qualitative and Quantitative Approaches: The Impact of AI Design on Consumer Perception and Buying Behavior in the FMCG Sector," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 775-786.
    15. Takumi Kato, 2022. "Rating valence versus rating distribution: perceived helpfulness of word of mouth in e-commerce," SN Business & Economics, Springer, vol. 2(11), pages 1-24, November.

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