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Does Having an Ethical Brand Matter? The Influence of Consumer Perceived Ethicality on Trust, Affect and Loyalty

Author

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  • Jatinder Singh

    ()

  • Oriol Iglesias

    ()

  • Joan Batista-Foguet

    ()

Abstract

The recent rise in ethical consumerism has seen increasing numbers of corporate brands project a socially responsible and ethical image. But does having a corporate brand that is perceived to be ethical have any influence on outcome variables of interest for its product brands? This study analyzes the relationship between perceived ethicality at a corporate level, and brand trust, brand affect and brand loyalty at a product level. A theoretical framework with hypothesized relationships is developed and tested in order to answer the research question. Data have been collected for 45 product categories in the fast moving consumer goods sector using a panel of 4,027 Spanish consumers. The proposed relationships are tested using structural equations modeling. The results suggest there is a positive relationship between perceived ethicality of a brand and both brand trust and brand affect. Brand affect also positively influences brand trust. Further, brand trust and brand affect both show a positive relation with brand loyalty. The managerial and academic implications of the results are discussed. Copyright Springer Science+Business Media B.V. 2012

Suggested Citation

  • Jatinder Singh & Oriol Iglesias & Joan Batista-Foguet, 2012. "Does Having an Ethical Brand Matter? The Influence of Consumer Perceived Ethicality on Trust, Affect and Loyalty," Journal of Business Ethics, Springer, vol. 111(4), pages 541-549, December.
  • Handle: RePEc:kap:jbuset:v:111:y:2012:i:4:p:541-549
    DOI: 10.1007/s10551-012-1216-7
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    References listed on IDEAS

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    1. Page, Graham & Fearn, Helen, 2005. "Corporate Reputation: What Do Consumers Really Care About?," Journal of Advertising Research, Cambridge University Press, vol. 45(03), pages 305-313, September.
    2. 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.
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    7. Kyoko Fukukawa & John Balmer & Edmund Gray, 2007. "Mapping the Interface Between Corporate Identity, Ethics and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 76(1), pages 1-5, November.
    8. Cohn, Deborah Y., 2010. "Commentary essay on "exploring origins of ethical company/brand perceptions -- A consumer perspective of corporate ethics"," Journal of Business Research, Elsevier, vol. 63(12), pages 1267-1268, December.
    9. Sylvia Maxfield, 2008. "Reconciling Corporate Citizenship and Competitive Strategy: Insights from Economic Theory," Journal of Business Ethics, Springer, vol. 80(2), pages 367-377, June.
    10. Brunk, Katja H., 2010. "Exploring origins of ethical company/brand perceptions -- A consumer perspective of corporate ethics," Journal of Business Research, Elsevier, vol. 63(3), pages 255-262, March.
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    Citations

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    Cited by:

    1. Karine Charry & Patrick Pelsmacker & Claude Pecheux, 2014. "How Does Perceived Effectiveness Affect Adults’ Ethical Acceptance of Anti-obesity Threat Appeals to Children? When the Going Gets Tough, the Audience Gets Going," Journal of Business Ethics, Springer, vol. 124(2), pages 243-257, October.
    2. Nobuyuki Fukawa & Sunil Erevelles, 2014. "Perceived Reasonableness and Morals in Service Encounters," Journal of Business Ethics, Springer, vol. 125(3), pages 381-400, December.
    3. repec:kap:jbuset:v:148:y:2018:i:4:d:10.1007_s10551-015-2985-6 is not listed on IDEAS
    4. Rafi Chowdhury & Mario Fernando, 2014. "The Relationships of Empathy, Moral Identity and Cynicism with Consumers’ Ethical Beliefs: The Mediating Role of Moral Disengagement," Journal of Business Ethics, Springer, vol. 124(4), pages 677-694, November.
    5. Bianca Grohmann & H. Bodur, 2015. "Brand Social Responsibility: Conceptualization, Measurement, and Outcomes," Journal of Business Ethics, Springer, vol. 131(2), pages 375-399, October.
    6. repec:spr:irpnmk:v:14:y:2017:i:4:d:10.1007_s12208-017-0185-z is not listed on IDEAS
    7. repec:eee:joreco:v:35:y:2017:i:c:p:133-141 is not listed on IDEAS
    8. Francesco Gangi & Ida Camminatiello & Nicola Varrone, 2016. "Analysis of Private Socially Responsible Investment: The Impact of Personal Concern with Corporate Social Responsibility," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 47-62, November.
    9. Moisescu Ovidiu-Ioan, 2015. "Demographics-based differences in the relationship between perceived CSR and customer loyalty in the dairy products market," Management & Marketing, Sciendo, vol. 10(2), pages 118-131, September.
    10. repec:kap:mktlet:v:28:y:2017:i:3:d:10.1007_s11002-017-9424-7 is not listed on IDEAS
    11. repec:kap:jbuset:v:144:y:2017:i:3:d:10.1007_s10551-015-2855-2 is not listed on IDEAS
    12. Christian Busse, 2016. "Doing Well by Doing Good? The Self-interest of Buying Firms and Sustainable Supply Chain Management," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(2), pages 28-47, April.
    13. repec:jec:journl:v:13:y:2017:i:2:p:167-191 is not listed on IDEAS
    14. Jiyun Kang & Gwendolyn Hustvedt, 2014. "Building Trust Between Consumers and Corporations: The Role of Consumer Perceptions of Transparency and Social Responsibility," Journal of Business Ethics, Springer, vol. 125(2), pages 253-265, December.

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