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The Importance of Ethics in Branding: Mediating Effects of Ethical Branding on Company Reputation and Brand Loyalty

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  • Syed Alwi, Sharifah Faridah
  • Muhammad Ali, Sulaiman
  • Nguyen, Bang

Abstract

This study aims to develop an ethical branding framework that determines whether a corporate brand’s functional and emotional values, that is, product, service quality, and perceived price (antecedents), influence ethical branding and, consequently, company reputation and brand loyalty (consequences) among industrial buyers of electronic office equipment in Malaysia. Using structural equation modelling, the article demonstrates the effects of perceived price, quality of product and service on ethical branding, company reputation, and brand loyalty. The results reveal that product quality directly influences ethical brand perceptions and, consequently, company reputation. Perceived price and service quality do not directly affect company reputation; instead, they affect its identification through ethical branding. The findings thus demonstrate that product quality, perceived price, and service quality affect company reputation through the mediation of ethical branding. This highlights that an ethical brand is effective for companies to maintain their reputation among industrial buyers.

Suggested Citation

  • Syed Alwi, Sharifah Faridah & Muhammad Ali, Sulaiman & Nguyen, Bang, 2017. "The Importance of Ethics in Branding: Mediating Effects of Ethical Branding on Company Reputation and Brand Loyalty," Business Ethics Quarterly, Cambridge University Press, vol. 27(3), pages 393-422, July.
    • Handle: RePEc:cup:buetqu:v:27:y:2017:i:03:p:393-422_00
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    Citations

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    Cited by:

    1. Robert Jao & Djabir Hamzah & Abdul Rakhman Laba & Mediaty, 2020. "Investor Decision in Estimating the Effect of Earning Persistence, Financial Leverage, Foreign Ownership Toward Company Reputation and Company Value," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 453-461, July.
    2. Vladimir S. Zhechev & Denitsa P. Zhecheva, 2019. "Ethical Branding €“ Corporate Commitment Or Compliance With Contemporary Trends," Annals of marketing-mba, Department of Marketing, Marketing MBA (RSconsult), vol. 4, December.
    3. Muhammad Tanveer & Abdul-Rahim Ahmad & Haider Mahmood & Ikram Ul Haq, 2021. "Role of Ethical Marketing in Driving Consumer Brand Relationships and Brand Loyalty: A Sustainable Marketing Approach," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    4. Rojas-de-Gracia, María-Mercedes & Casado-Molina, Ana-María & Alarcón-Urbistondo, Pilar, 2021. "Relationship between reputational aspects of companies and their share price in the online environment," Technology in Society, Elsevier, vol. 64(C).
    5. Fabio La Rosa & Francesca Bernini, 2022. "Punishing Vices or Rewarding Virtues? The Motivations for and Benefits of Ethical Ratings for Private Italian Companies," Journal of Business Ethics, Springer, vol. 176(3), pages 467-485, March.
    6. Mpinganjira, Mercy & Maduku, Daniel K., 2019. "Ethics of mobile behavioral advertising: Antecedents and outcomes of perceived ethical value of advertised brands," Journal of Business Research, Elsevier, vol. 95(C), pages 464-478.
    7. Slotnick, Susan A. & Sobel, Matthew J., 2022. "Collaboration with a supplier to induce fair labor practices," European Journal of Operational Research, Elsevier, vol. 302(1), pages 244-258.
    8. Hwang, Syjung & Lee, Minyoung & Park, Eunil & del Pobil, Angel P., 2021. "Determinants of customer brand loyalty in the retail industry: A comparison between national and private brands in South Korea," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    9. 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.
    10. Alice Mazzucchelli & Roberto Chierici & Manlio Del Giudice & Ilenia Bua, 2022. "Do circular economy practices affect corporate performance? Evidence from Italian large‐sized manufacturing firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2016-2029, November.
    11. Fabio Caputo & Simone Pizzi, 2021. "Ethical Firms and Web Reporting: Empirical Evidence about the Voluntary Adoption of the Italian “Legality Rating”," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(1), pages 1-36, July.

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