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One strike and you're out: Qualitative insights into the formation of consumers' ethical company or brand perceptions

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  • Brunk, Katja H.
  • Blümelhuber, Christian

Abstract

Drawing on 20 long interviews (McCracken, 1988) with general consumers, this research suggests that the impact of various kinds of un/ethical business practices of a given company on consumers' perceived ethicality (CPE) is asymmetrical. The resulting taxonomy identifies three distinct dimensions of varying directions and impacts on CPE, with the personal interest of the evaluating person moderating and mediating the dimensions' slopes: (1) Monovalent ethical dissatisfiers which have a negative effect; (2) Bivalent ethical dis/satisfiers that either favorably or unfavorably influence ethical perceptions, commensurate with a company's efforts; and (3) Monovalent ethical satisfiers, capable of generating a positive impact. The achievement of positive CPE appears highly challenging for a variety of reasons identified. Only one instance of perceived misconduct can be sufficient to contaminate a company/brand's CPE, despite otherwise exemplary behavioral records or altruistic engagement. The article concludes with a discussion of the implications for managers and academics.

Suggested Citation

  • Brunk, Katja H. & Blümelhuber, Christian, 2011. "One strike and you're out: Qualitative insights into the formation of consumers' ethical company or brand perceptions," Journal of Business Research, Elsevier, vol. 64(2), pages 134-141, February.
  • Handle: RePEc:eee:jbrese:v:64:y:2011:i:2:p:134-141
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    Cited by:

    1. Katja H. Brunk & Cara Boer, 2020. "How do Consumers Reconcile Positive and Negative CSR-Related Information to Form an Ethical Brand Perception? A Mixed Method Inquiry," Journal of Business Ethics, Springer, vol. 161(2), pages 443-458, January.
    2. Kumar, Vikas & Kaushal, Vikrant & Shashi,, 2023. "Role of customer perceived brand ethicality in inducing engagement in online brand communities," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
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    10. Saravana Jaikumar & Viswanath Pingali & Vineet Virmani, 2019. "Shareholders’ reaction to ethical image of sports teams: an event study in the Indian Premier League," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 283-300, December.
    11. 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.
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    13. 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.
    14. Bianca Grohmann & H. Bodur, 2015. "Brand Social Responsibility: Conceptualization, Measurement, and Outcomes," Journal of Business Ethics, Springer, vol. 131(2), pages 375-399, October.
    15. Yoganathan, Vignesh & Osburg, Victoria-Sophie & Akhtar, Pervaiz, 2019. "Sensory stimulation for sensible consumption: Multisensory marketing for e-tailing of ethical brands," Journal of Business Research, Elsevier, vol. 96(C), pages 386-396.
    16. Jose Ribamar Siqueira Junior & Enrique Horst & German Molina & Laura H. Gunn & Felipe Reinoso-Carvalho & Burcu Sezen & Nathalie Peña-García, 2023. "Branding in the eye of the storm: the impact of brand ethical behavior on brand commitment during the COVID-19 crisis in a South American country," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(1), pages 95-115, March.
    17. Kuchmaner, Christina A. & Wiggins, Jennifer & Grimm, Pamela E., 2019. "The Role of Network Embeddedness and Psychological Ownership in Consumer Responses to Brand Transgressions," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 129-143.
    18. Adriano Stadler & Edson Andrade dos Reis & Elaine Cristina Arantes & Jansen Maia Del Corso, 2017. "Study on Professors’ Perception With Respect to Higher Education Institutions’ Socially Responsible Initiatives," Brazilian Business Review, Fucape Business School, vol. 14(6), pages 592-608, November.
    19. Kevin J. Shanahan & Christopher D. Hopkins, 2019. "Level of Agreement Between Sales Managers and Salespeople on the Need for Internal Virtue Ethics and a Direct Path from Satisfaction with Manager to Turnover Intent," Journal of Business Ethics, Springer, vol. 159(3), pages 837-848, October.
    20. Nick Lin-Hi & Igor Blumberg, 2018. "The Link Between (Not) Practicing CSR and Corporate Reputation: Psychological Foundations and Managerial Implications," Journal of Business Ethics, Springer, vol. 150(1), pages 185-198, June.
    21. 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.
    22. 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.
    23. Nils Christian Hoffmann & Juelin Yin & Stefan Hoffmann, 2020. "Chain of Blame: A Multi-country Study of Consumer Reactions Towards Supplier Hypocrisy in Global Supply Chains," Management International Review, Springer, vol. 60(2), pages 247-286, April.
    24. Mann, Manveer & Byun, Sang-Eun, 2017. "To retrench or invest? Turnaround strategies during a recessionary time," Journal of Business Research, Elsevier, vol. 80(C), pages 24-34.

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