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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

Author

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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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    2. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    3. 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).
    4. 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.
    5. 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).
    6. 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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