Ethical Ideologies and Older Consumer Perceptions of Unethical Sales Tactics

Demographic differences among consumer groups have become increasingly important to the development of marketing strategies. Marketers depend heavily on the sales force to implement strategies at the consumer level and, not surprisingly, different groups may view the salesperson’s role differently. Unfortunately, unethical sales practices targeted at various consumer groups, and especially at seniors, have been utilized as well. The purpose of this study is to provide initial empirical evidence of the ethical ideological make-up of four age segments outlined by Strauss and Howe (1991, Generations: The History of America’s Future 1584–2069, Morrow, New York) and to examine the propensity for these groups (seniors, in particular) to respond differentially to potentially unethical sales tactics. Data were collected from 179 respondents representing the four generational age groups. MANOVA revealed that the seniors in this study were distinct with respect to ethical ideology and less accepting of unethical sales tactics. Managerial implications are discussed for sales organizations to maximize their effectiveness across consumer groups. Rosemary P. Ramsey (Ph.D., University of Cineinnati) is Professor of Marketing in the Raj Soin College of Business at Wright State University, Dayton, OH, USA. Rosemary spent several years as a marketing and sales practitioner in the private sector, primarily for NCR Corporation. She is interested in relationship development as it pertains to buyer-seller interactions, salespersons with their sales managers, and team dynamics. She has been on the faculty at University of Kentucky and University of South Florida. She was in administration at Eastern Kentucky University, Cleveland State University, and Wright State University. She is published in the Journal of the Academy of Marketing Science, Journal of Retailing, Journal of Business Research, Journal of Personal Selling & Sales Management, among others. She was recently honored by Who’s Who among America’s Teachers and Who’s Who in Executives and Professionals. Greg W. Marshall (Ph.D., Oklahoma State University) is Professor of Marketing and Strategy in the Roy E. Crummer Graduate School of Business at Rollins College, Winter Park, FL, USA, Greg’s research centers on the areas of sales force selection, performance, and evaluation; adoption and successful use of technology by salespeople; sales force diversity; decision making by marketing managers; and intraorganizational relationships. He is Editor of the Journal of Marketing Theory and Practice. His industry experience includes thirteen years in selling and sales management, product management, and retailing with companies such as Warner Lambert, Mennen, and Target Corporation. He is a frequent consultant and trainer in the area of strategic marketing. Greg serves on the editorial review boards of the Journal of the Academy of Marketing Science, Journal of Business Research, and Industrial Marketing Management.He is co-author of the books, Sales Force Management 9e and Relationship Selling and Sales Management 2e, both published by McCraw-Hill, and Marketing: Real People, Real Choices 5e, published by Prentice Hall. Mark W Johnston (Ph.D., Texas A&M University) is the Alan and Sandra Gerry Professor of Marketing and Ethics at the Roy E. Crummer Graduate School of Business at Rollins College, Winter Park, FL, USA. Mark has conducted a number of seminars around the world on a variety of topics including ethical issues in marketing, sales force motivation, managing turnover in the organization, sales training issues, and improving overall sales performance. He has served as a marketing consultant to a number of organizations around the country. A partial list of his research includes publications in theJournal of Marketing Research, Jotunal of Applied Psychology, Journal of Business Research, and Journal of Personal Selling & Sales Management. He is co-author of the books Sales Force Marnagement 9e and Relationship Selling and Sales Management 2e, both published by McGraw-Hill. Dawn R, Deeter-Schmelz (Ph.D., University of South Florida) is Chair and O’Bleness Professor of Marketing at Ohio University, Athens, OH, USA. Her research interests include customer service teams, sales management and buyer-seller relationship issues, business-to-business e-commerce, and scale development. She has published in Journal of the Academy of Marketing Science, Journal of Marketing Theory and Practice, Industrial Marketing Management, Journal of Personal Selling & Sales Management, Journal of Marketing Education, and Journal of Business Logistics, among others. In a marketplace where the consumer is King ... understanding the fundamental needs, values, icons and historical experiences of the various generations is more critical than ever. Generational mindsets and feelings are major factors in determining ...an effective marketing strategy. —Fishman (2004), p. 4     

Ethical Decision-Making by Consumers: The Roles of Product Harm and Consumer Vulnerability

The primary purpose of this study was to examine the effects of perceptions of product harm and consumer vulnerability on ethical evaluations of target marketing strategies. We first established whether subjects are able to accurately judge the harmfulness of a product through labeling alone, and whether they could differentiate consumers who were more or less vulnerable. The results suggest that without the presence of a prime, subjects who depended on implicit memory or guess were able to detect differences in “sin” and “non-sin” products and consumer vulnerability, but were far less likely to be able to distinguish among high and low levels of product harm and consumer vulnerability. The inability to accurately identify high and low levels of product harm and consumer vulnerability impacted their perceptions of the ethicality of target marketing strategies, such that only four out of 18 target marketing strategies were judged as unethical. Thus, our findings contradict previous research that found subjects judged many more of the integrated strategies as unethical [Smith and Cooper-Martin, J Market 61(1997) 1]. Our results suggest that assessing ethical evaluations of strategies varying in product harm, and consumer vulnerability may only be relevant if consumers can accurately identify product harm.     

‘An Empirical Investigation of the Relationships among a Consumer’s Personal Values, Ethical Ideology and Ethical Beliefs’

This study provides an additional partial test of the Hunt–Vitell theory [1986, Journal of Macromarketing, 8, 5–16; 1993, ‘The General Theory of Marketing Ethics: A Retrospective and Revision’, in N. C. Smith and J. A. Quelch (eds.), Ethics in Marketing (Irwin Inc., Homewood), pp. 775–784], within the consumer ethics context. Using structural equation modeling, the relationships among an individual’s personal values (conceptualized by the typology of Schwartz [1992, ‘Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries’, in M. P. Zanna (ed.), Advances in Experimental Social Psychology (Vol. 25, Academic Press, Orlando), pp. 1–65] ethical ideology and ethical beliefs are investigated. The validity of the model is assessed in a two-step procedure. First, a measurement model of constructs is tested for key validity dimensions. Next, the hypothesized causal relationships are examined in several path models, comparing no mediation, partial and complete mediation of ethical ideology. The empirical results indicate that individual differences in value priorities (resultant conservation and resultant self-enhancement) directly and indirectly (through idealism) influence the judgment of ethically questionable consumer practices. These findings may significantly contribute to the theoretical understanding of ethical decision-making.     

Consumer Ethics: Determinants of Ethical Beliefs of African Americans

This study explores the ethical ideol-ogies and ethical beliefs of African American consumers using the Forsyth ethical position questionnaire (EPQ) and the Muncy-Vitell consumer ethics questionnaire (MVQ). The two dimensions of the EPQ (i.e., idealism and relativism) were the independent constructs and the four dimensions of the MVQ (i.e., illegal, active, passive and no harm) were the dependent variables. In addition, this paper explores the consumer ethics of African Americans across four demographic factors (i.e., age, education, gender, and marital status). A sample of 315 African American consumers was used to explore these relationships. Results confirmed that consumers who score high on the idealism scale are more likely to reject questionable consumer activities, but there was no relationship between relativism and consumers' rejection of questionable activities. Older, more educated and married consumers rejected questionable activities more than younger, less educated and single consumers. Gender did not have any significant relationship to consumers' ethical orientation.     

Unpacking the Ethical Product

Acknowledging the increasing attention in the literature devoted to the incorporation of ethical considerations into consumers' purchase decisions, this paper explores the notion of an ethical product. It is argued that ethical issues have long been involved in consumers' product evaluations, but that there has been little academic investigation of ethics in terms of product concepts and theories. Ethics are thus examined in the context of the augmented product concept, and two dimensions of ethical augmentation are identified: direction and content. These dimensions are set out and discussed at some length, and then they are used to construct an ethical product matrix. It is shown how this could be used to provide structure and coherence to examinations of the perceived ethics of any given product offering. The implications of the analysis offered in the paper are discussed, and a number of limitations of the ethical product notion are identified. Finally some conclusions and directions for future research are suggested.     

Business Ethics Index: Measuring Consumer Sentiments Toward Business Ethical Practices

The present study describes the development of an ongoing and systematic index to measure consumers’ sentiments towards business ethical practices. The Business Ethics Index (BEI) is based on the well established measurements of consumer sentiments, namely the ICS (Index of Consumer Sentiment) and CBCCI (Conference Board Consumer Confidence Index). The BEI is comprised of 4 measurements representing the dimensions of “personal-vicarious” and “past-future.” Data from 503 telephone interviews were used to calculate a BEI of 107. This indicates an overall positive consumer sentiment towards the ethical behavior of business. Future calculations of the BEI are planned which will allow for the estimation of the latent dynamics of trends in consumer sentiments toward American business ethics.     

Framing Effects Within the Ethical Decision Making Process of Consumers

There has been neglect of systematic conceptual development and empirical investigation within consumer ethics. Scenarios have been a long-standing tool yet their development has been haphazard with little theory guiding their development. This research answers four questions relative to this gap: Do different scenario decision frames encourage different moral reasoning styles? Does the way in which framing effects are measured make a difference in the measurement of the relationship between moral reasoning and judgment by gender? Are true framing effects likely to vary with the situation? and Are true framing effects likely to vary by gender? The conclusions reached were that (1) different scenario frames encourage both types of reasoning, but rule based moral reasoning is dominant regardless of frame, (2) accounting for formal equivalency in the measurement of true framing effects is likely to enhance the interpretation of studies in moral reasoning and judgment, (3) True framing effects are more likely to occur in situations with low to moderate perceived ethicality, and (4) true framing effects are not likely to vary by gender. Explanations as to why these results occurred are discussed.     

Ethical Ideology and Ethical Judgments in the Portuguese Accounting Profession

The purpose of the present study is to examine the attitudes of Portuguese chartered accountants with respect to questions of ethical nature that can arise in their professional activity. Respondents were asked to respond to the Ethics Position Questionnaire developed by Forsyth (Journal of Personality and Social Psychology 39(1), 175–184, 1980), in order to determine their idealism and relativism levels. Subsequently, they answered questions about five scenarios related to accounting practices, with the objective of measuring their ethical judgments. Based on the idealism and relativism levels of our respondents, they were classified into one of four groups, representing different ethical ideologies (absolutism, exceptionism, subjectivism, and situationism). The results indicated that age was the major determinant of relativism. Contrary to previous research, older respondents revealed themselves significantly more relativistic than younger ones. Gender seems to be the most important determinant of ethical judgments; against expectations, men evidenced significantly stricter judgments than women in two of the five scenarios. Findings also indicated that respondents’ ethical judgments did not differ significantly based on their ethical ideology, supporting the idea that ethical ideology is not an important determinant of ethical judgments.     

An Examination of Differences in Ethical Decision-Making Between Canadian Business Students and Accounting Professionals

This study investigates the differences in individuals' ethical decision making between Canadian university business students and accounting professionals. We examine the differences in three measures known to be important in the ethical decision-making process: ethical awareness, ethical orientation, and intention to perform questionable acts. We tested for differences in these three measures in eight different questionable actions among three groups: students starting business studies, those in their final year of university, and professional accountants.The measures of awareness capture the extent to which respondents felt that a particular action was unethical according to each of several ethical criteria. We found few differences between the two student groups on these measures, suggesting that their education had minimal effect on raising their awareness of the ethical issues in the vignettes. Indeed, overall, the graduating student's scores were marginally lower than those of the entry-level students. However, the professionals viewed some actions as significantly less ethical than did the graduating students.The measures of ethical orientation capture the weight respondents placed on each of the criteria above in their evaluation of the overall morality of an action. The differences between the three groups were generally small, and were a function of the vignette, consistent with Jones' (1991) model of issue-contingent ethical reasoning.The measures of intention capture the extent to which a respondent perceives that s/he would perform the action. There were significant differences between the groups in three of the eight vignettes, driven by a difference between the professionals and the other two student groups. The awareness measures were strong predictors of intention. We discuss the implications of these findings for professional training and future research.     

Causal Effects of Regulatory, Organizational and Personal Factors on Ethical Sensitivity

Prior researchers have studied individual components of a theoretical decision-making model. This paper presents the results of a more complete study of the model components and presents limited support of theory. The study examines the relative importance of regulatory, organizational, and personal constructs on an individual's ethical sensitivity. Auditors from the major international accounting firms, located in two southeastern cities, are surveyed. Structural equation modeling is used to allow for the simultaneous evaluation of the three constructs of interest. The results indicate that the regulatory and organizational constructs are negatively correlated with the personal experience construct. The three constructs are not significant causal factors on ethical sensitivity. This result may be due to the manner in which ethical sensitivity is typically measured or may indicate that the complexity of the ethical decision-making process is not fully captured in the theoretical models. Thus, the models suggested in the prior literature and the results presented in prior studies of the individual components may need to be reconsidered.     

The Effect of Organizational Culture and Ethical Orientation on Accountants' Ethical Judgments

This paper examines the relationship between organizational ethical culture in two large international CPA firms, auditors' personal values and the ethical orientation that those values dictate, and judgments in ethical dilemmas typical of those that accountants face. Using an experimental task consisting of multiple judgments designed to vary in "moral intensity" (Jones, 1991), and unique as well as tried-and-true approaches to variable measurements, this study examined the judgments of more than three hundred participants in our study. ANCOVA and path analysis results indicate that: (1) Ethical judgments in situations of high moral intensity are affected by personal values and by environmental variables, such as the professional code of conduct (direct and indirect effects) and previous ethics instruction (direct effect only). (2) Corporate ethical culture, and a relatively strong firm rules-orientation, affect auditors' idealism but not relativism, and therefore indirectly affect ethical judgments. Jones' (1991) moral intensity argument is supported: differences in the characteristics of specific judgment tasks apparently result in different decision processes.     

The Moderating Effect of Individuals' Perceptions of Ethical Work Climate on Ethical Judgments and Behavioral Intentions

Dimensions of the ethical work climate, as conceptualized by Victor and Cullen (1988), are potentially important influences on individual ethical decision-making in the organizational context. The present study examined the direct and indirect effects of individuals' perceptions of work climate on their ethical judgments and behavioral intentions regarding an ethical dilemma. A national sample of marketers was surveyed in a scenario-based research study. The results indicated that, although perceived climate dimensions did not have a direct effect on behavioral intentions, there were significant moderating effects. Climates perceived as emphasizing social responsibility and rules/codes moderated the individual ethical judgment-behavioral intentions relationship such that individuals were less likely to say that they would engage in a questionable selling practice even when they themselves did not believe the practice to be unethical. Respondents were somewhat more likely to form intentions consistent with their judgment that the questionable practice was morally acceptable when the ethical climate was characterized by an emphasis on team/friendship.     

Studying Ethical Judgments and Behavioral Intentions Using Structural Equations: Evidence from the Multidimensional Ethics Scale*

The linkage between ethical judgment and ethical behavioral intention was investigated. The Multidimensional Ethics Scale (MES) was used to measure ethical judgment ratings of hypothetical behaviors in retail, sales, and automobile repair scenarios. Confirmatory factor analysis on a sample of 300 undergraduate business students showed that a model with three latent variables representing three correlated ethical dimensions of moral equity, relativism, and contractualism, three correlated scenario latent variables, and correlated residuals presented a good fit to the data. Further, structural models of the relationship of ethical judgment to behavioral intentions revealed that behavioral intentions were more highly related to the scenario factors than to the ethical dimensions across three scenarios. Adding a method factor to the model improved goodness-of-fit and changed some structural model conclusions.

Ethical Character and Virtue of Organizations: An Empirical Assessment and Strategic Implications

Virtue ethics has often been regarded as complementary or laissez-faire ethics in solving business problems. This paper seeks conceptual and methodological improvements by developing a virtue character scale that will enable assessment of the link between organizational level virtue and organizational performance, financial or non-financial. Based upon three theoretical assumptions, multiple studies were conducted; the content analysis of 158 Fortune Global 500 firms ethical values and a survey of 2548 customers and employees. Six dimensions of organizational virtue (Integrity, Empathy, Warmth, Courage, Conscientiousness and Zeal) are identified through confirmatory factor analysis, and validated against satisfaction measure. Strategic implications of virtue characters are discussed.     

The "Ethics" of Ethical Investing

There appears to be an implicit assumption by those connected with the ethical investment movement (e.g., ethical investment firms, individual investors, social investment organizations, academia, and the media), that ethical investment is in fact ethical. This paper will attempt to challenge the notion that the ethical mutual fund industry, as currently taking place, is acting in an ethical manner. Ethical issues such as the transparency of the funds and advertising are discussed. Ethical mutual fund screens such as tobacco, alcohol, gambling, and the military are preliminarily examined to better determine whether they can actually be defined as "ethical" screens as opposed to merely social, political, or religious screens. A code of ethics for ethical investment is constructed by which ethical mutual fund firms can be audited for ethical compliance.     

The Mediating Role of Anticipated Guilt in Consumers’ Ethical Decision-Making

In this paper, we theorize that the anticipation of guilt plays an important role in ethically questionable consumer situations. We propose an ethical decision-making framework incorporating anticipated guilt as partial mediator between consumers’ ethical beliefs (anteceded by ethical ideology) and intentions. In the first study, we compared several models using structural equation modeling and found empirical support for our research model. A second experiment was set up to illustrate how these new insights may be applied to prevent consumers from taking advantage of the seller. Results showed that enhancing the anticipation of guilt (by making the interpersonal consequences of the unethical act more salient) increased consumers’ ethical intentions, controlling for ethical beliefs. Together these two studies might have important theoretical and managerial contributions.Sarah Steenhaut is research assistant and doctoral candidate at Ghent University, Faculty of Economics and Business Administration, Research Center for Consumer Psychology and Marketing (Belgium). Her research interests lie in the area of ethical aspects and marketing, more specifically, consumers’ ethical beliefs, attitudes and behavior. She has recently published in Journal of Business Ethics.Patrick Van Kenhove is Professor of Marketing at Ghent University, Faculty of Economics and Business Administration, Department of Marketing (Belgium). He has recently published in Journal of Business Ethics, Psychology & Marketing, Journal of Retailing, Advances in Consumer Research, Journal of Economic Psychology, Journal of Health Communication and The International Review of Retail, Distribution and Consumer Research.