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The Relationship between Consumers’ Unethical Behavior and Customer Loyalty in a Retail Environment

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  • P. VAN KENHOVE
  • K. DE WULF
  • S. STEENHAUT

Abstract

This paper investigates the relationship between two outcomes of relationship marketing – affective commitment and behavioral loyalty – and consumers’ unethical behavior. The main objective of the study is to assess whether affective commitment and behavioral loyalty to a store translate into more ethical behavior towards that store, controlling for the variables of age, gender, and ethical beliefs. The study does not rely on a single measurement tool, but is based on ten months' panel data and three different mail surveys targeted at 359 Belgian households. The results provide support for our hypothesis that affective commitment is indeed negatively correlated with consumers’ unethical behavior. The same conclusion could not be drawn for the relationship between behavioral loyalty and consumers’ unethical behavior. No significant relationship was detected, not even in situations where affective commitment was high. The results hold major implications for retailing practice.

Suggested Citation

  • 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.
    • Handle: RePEc:rug:rugwps:03/167
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    Cited by:

    1. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," Working Papers hal-01904416, HAL.
    2. Oylum Korkut Altuna & F. Müge Arslan & A. Ercan Gegez & Özge Sýðýrcý, 2016. "Development of a Scale on e-Consumers’ Attitudes towards Ethically Questionable Online Behaviors," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(1), pages 99-134.
    3. repec:eme:srjpps:v:6:y:2010:i:2:p:393-404 is not listed on IDEAS
    4. D. Van den Poel, 2003. "Predicting Mail-Order Repeat Buying. Which Variables Matter?," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(3), pages 371-404.
    5. BaoChun Zhao & ShanShan Xu, 2013. "Does Consumer Unethical Behavior Relate to Birthplace? Evidence from China," Journal of Business Ethics, Springer, vol. 113(3), pages 475-488, March.
    6. Shuang Ma & Huimin Gu & Daniel P. Hampson & Yonggui Wang, 2020. "Enhancing Customer Civility in the Peer-to-Peer Economy: Empirical Evidence from the Hospitality Sector," Journal of Business Ethics, Springer, vol. 167(1), pages 77-95, November.
    7. Long-Chuan Lu & Hsiu-Hua Chang & Alan Chang, 2015. "Consumer Personality and Green Buying Intention: The Mediate Role of Consumer Ethical Beliefs," Journal of Business Ethics, Springer, vol. 127(1), pages 205-219, March.
    8. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," CEPN Working Papers 2018-04, Centre d'Economie de l'Université de Paris Nord.
    9. 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.
    10. Khansa Zaman & Asma Arshad & Aqeel Shahzad, 2012. "Customer Loyalty in FMCG Sector of Pakistan," Information Management and Business Review, AMH International, vol. 4(1), pages 41-48.
    11. Brahim Idir, 2018. "« Je suis fidèle mais pas fidèle a la marque, je suis fidèle à la réduction » : les motivations économiques des participants aux programmes de fidélisation en retail," CEPN Working Papers hal-01904416, HAL.
    12. Tine Bock & Iris Vermeir & Patrick Kenhove, 2013. "“What’s the Harm in Being Unethical? These Strangers are Rich Anyway!” Exploring Underlying Factors of Double Standards," Journal of Business Ethics, Springer, vol. 112(2), pages 225-240, January.
    13. S. Steenhaut & P. Van Kenhove, 2006. "The Mediating Role of Anticipated Guilt in Consumers’ Ethical Decision-Making," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/370, Ghent University, Faculty of Economics and Business Administration.
    14. Prabhjot Kaur & Sanjeev Kumar Sharma, 2015. "A Measure of Consumer Complaining Behaviour in Service Industry," Paradigm, , vol. 19(1), pages 37-51, June.
    15. Sarah Steenhaut & Patrick Kenhove, 2006. "The Mediating Role of Anticipated Guilt in Consumers’ Ethical Decision-Making," Journal of Business Ethics, Springer, vol. 69(3), pages 269-288, 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. S. Steenhaut & P. Van Kenhove, 2003. "Consumers’ Reactions to “Receiving Too Much Change at the Checkout”," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/186, Ghent University, Faculty of Economics and Business Administration.
    18. 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.
    19. Zhiqiang Liu & Fue Zeng & Chenting Su, 2009. "Does Relationship Quality Matter in Consumer Ethical Decision Making? Evidence from China," Journal of Business Ethics, Springer, vol. 88(3), pages 483-496, October.

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