Exploring origins of ethical company/brand perceptions — A consumer perspective of corporate ethics

This research provides a consumer perspective of corporate ethics. The study consists of twenty long interviews [McCracken, G., 1988. The long interview. Newbury Park, CA: Sage] with general consumers, and conceptualizes potential sources of consumer perceived ethicality (CPE) of a company/brand by investigating consumers' ethical perceptions of business behavior. The developed taxonomy delineates six domains and 36 sub-domains of CPE origin, relating to the impact corporate behavior has on: (1) consumers, (2) employees, (3) the environment, (4) the overseas community, (5) the local economy and community, and (6) the business community. Findings demonstrate disparities between the consumer and the business perspective and highlight the fact that sources of CPE prove considerably more diverse and complex than the literature suggests, therefore presenting a vital extension to existing research. By providing business managers with a comprehensive assembly of issues which may evoke un/ethical perceptions, the framework may serve as a code of business conduct to prevent, contain, or combat negative CPE.     

Husband-wife innovative consumer decision making: Exploring the effect of family power

The study investigates the effect of one component of spousal influence—family power—on the innovative consumer decisions perceived to be made independently by one's mate. Information was gathered via a questionnaire by personally contacting a sample of 71 married couples. The hypothesis tested was that a wife, by virtue of her greater relative exercise of family power, exerts a high degree of influence over the innovative consumer decisions made by her husband. Specifically, it was hypothesized that a wife will have more influence over the choices perceived to be made by her husband than will he. The results supported the hypothesis.     

In search of fair trade: ethical consumer decision making in France

While the market for fair trade products has been growing in many countries, this paper examines the French market where fair trade remains marginal but is experiencing growth. Using a modified Theory of Planned Behaviour framework the research examines consumer intention to purchase fair trade grocery products in order to explain the pertinent decision‐making criteria of both consumers of and potential consumers of fair trade. Results reveal that concerned consumers should not be treated as one homogeneous group, rather, the distinct variations in the factors that influence their decision making must be considered when promoting, labelling and distributing fair trade products. Implications for both sustaining and developing the market for fair trade products in the future are highlighted and discussed.     

The perceived utility of information presented via electronic decision aids: A consumer perspective

Recent advancements in electronic technology have made possible a viable alternative information delivery system in the form of Electronic Decision Aids (EDAs). However, consumers will only benefit from such technological innovations if they are perceived to be useful in facilitating the decision making process. The current study investigates the effects of type of EDA format (autonomous versus dominant) and provision of educational information on the perceived utility of information presented via an electronic decision aid. In addition, the relationships between these two dimensions and specific consumer characteristics, including product familiarity, computer familiarity, and locus of control, as well as product type (search versus experience goods) are systematically identified and evaluated. Results suggest that selection of an appropriate format depends upon the nature of the product being selected, while inclusion of educational information enhances perceived utility of the information in selecting both types of products.

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Der wahrgenommene Nutzen von Informationen, die durch elektronische Entscheidungshilfen bereitgestellt werden: eine Verbraucherperspektive

Zusammenfassung Elektronische Entscheidungshilfen in Einzelhandelsgeschäften sind eine neuartige Form der produktbezogenen Verbraucherinformation, die durch neuere technologische Entwicklungen ermöglicht wurde. Ob diese Innovation bei Konsumenten Erfolg haben wird, dürfte wesentlich davon abhängen, wie nützlich sie für den Kaufentscheidungsprozess eingeschätzt wird.Der Beitrag berichtet über eine empirische Studie darüber, wie diese wahrgenommene Nützlichkeit abhängig ist von der Informationsform (unterschieden danach, ob der sich informierende Verbraucher den Informationsvorgang eigenständig kontrollieren und gestalten kann oder nicht) und davon, ob die Information auch Bestandteile umfasst, die die generelle Produktkenntnis erhöhen und dadurch zusätzliche aufklärende Wirkung erzielen können, oder nicht. Ausserdem wurde der Einfluss der Produktart sowie der Produktvertrautheit des Konsumenten und seiner Vertrautheit mit dem Computer analysiert. Die Ergebnisse wurden in Laboruntersuchungen gewonnen, bei denen es um die Wahl eines Fotoapparates und um die Wahl eines Arztes ging.Es zeigt sich, dass es von der Produktart abhängig ist, welche der beiden Informationsformen zweckmässiger ist, wogegen durchgängig gilt, dass zusätzliche aufklärende Informationsbestandteile die wahrgenommene Nützlichkeit von Informationen erhoehen.

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Donna J. Hill is Associate Professor of Marketing, Bradley University, Peoria, IL 61625, USA. Maryon F. King is Assistant Professor of Marketing, Southern Illinois University, Carbondale, IL 62901, USA. Eli Cohen is Associate Professor and Head. Computer Information Systems. College of Business. Eastern New Mexico University, Portales. NM 88130, USA.     

Exploring the contextual and individual factors on ethical decision making of salespeople

This paper studies how salespeople make ethical decisions. For this purpose a structural model has been developed which configures how the organization's environment, the organizations's climate, and personality traits affect ethical decision making. Internal communication and the choice of a control system especially affect ethical decision making. Internal communication also affects the attraction of salespeople with unethical personality traits (Machiavellism), while the control system affects the ethical climate. Ethical climate and salespeople's personality traits also affect the ethical decision making. In fact the study shows that ethical decision making can be influenced by management.Willem Verbeke is assistant professor in marketing, School of Economics, Erasmus University, Rotterdam, The Netherlands. His research concentration is sales management.Cok Ouwerkerk is founder and director of the CSA, a consulting firm for statistical applications, in Mijnheerenland, The Netherlands. He has been involved in many research projects at different Dutch universities and firms.Ed Peelen is associate professor at the School of Economics, The University of Amsterdam, Amsterdam, The Netherlands. His research concentration is marketing management and logistics.     

Connecting the dots: how personal need for structure produces false consumer pattern perceptions

The human tendency to recognize patterns even when none exist is shown to have applications in consumer behavior. The current research demonstrates that as one’s personal need for structure (PNS) increases (i.e., requiring predictability and disfavoring uncertainty), false consumer pattern perceptions emerge. Construal level moderates this relationship such that as abstract mindsets (high construal) seek out underlying explanations and enhance, concrete mindsets (low construal) evaluate consumer-related stimuli in terms of its contextual elements and therefore attenuate the effect. Types of consumer patterns are characterized by false expectations about the performance of a cellular phone (study 1), the association of human characteristics toward personal computers (study 2), and the development of beliefs in corporate conspiracy theories (study 3). This research has implications for practitioners and academics as it expands on the literature related to false pattern perceptions by investigating it through the lens of consumer decision-making.     

A corporate model of sustainable business practices: An ethical perspective

This paper considers contemporary business practice and its sustainable performance from the view of stakeholders and their perceived value. A company has responsibilities and commitments to many different internal and external stakeholders in the marketplace and society. This view underlines the need for organizations to, not only provide value, but do so in a sustainable and socially responsible manner. A model is developed based on five, separate but interconnected, elements. The model is iterative and acknowledges its elementary state, suggesting further development and refinement in the field of sustainable business practices from an ethical perspective.     

Non-legislative means of consumer protection: The Dutch perspective

This report approaches the new spheres of self-regulation, soft law and deregulation in the Netherlands from both a factual and historical point of view. Using the Dutch Advertising Code as an example, the article discusses the advantages and disadvantages of self-regulation, thereby illustrating that self-regulation may even lead to greater protection of the consumer than would otherwise be achieved: the operation of the Dutch Advertising Code is not only successful, but is also more far-reaching than the draft EEC directive on misleading advertising.Self-regulation exists in many other spheres which, however, do not necessarily further protect the position of the consumer. Where a Complaints Commission exists, the situation is somewhat different in that disputes may generally be settled without great expense and relatively quickly.Self-regulation and concerted action have achieved a certain level of consumer protection in the Netherlands, but this, of course, does not mean that there is no room for progress: the author here shows the inter-dependency of non-legal rules with legal rules despite the tendency seen in the past years in the Netherlands to deregulate what were formerly public agencies and consumer-related institutions.

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Nicht-rechtliche Maßnahmen zum Verbraucherschutz — das Beispiel der Niederlande

Zusammenfassung Der Beitrag geht zunächst auf die grundsätzliche Einschätzung und Terminologie von Selbstregulierung, soft law und Deregulierung in den Niederlanden ein. Es herrscht eine positive Einstellung zu Selbstverwaltungsmaßnahmen der Wirtschaft. Mit dem Aufkommen von zwei einflußreichen Verbraucherorganisationen, Consumentenbond und Konsumenten Kontakt, konnte in Teilbereichen das System der Selbstregulierung zu einem solchen der konzertierten Aktion erweitert werden. In diesem Sinne ist eine Ergänzung, teilweise auch ein Ersatz von Gesetzgebung möglich.Dargestellt werden Selbstegulierungsmaßnahmen auf dem Gebiet der Werbung durch einen Kodex. Für die Einhaltung der Regeln über lautere Werbung sorgt eine besondere Beschwerdekommission, an der Verbrauchervertreter mitwirken. Die Implementation des Kodex wird positiv eingeschätzt. Er bietet z.T. einen höheren Verbraucherschutz als der EG-Richtlinienvorschlag über irreführende Werbung.In vielen anderen Bereichen existieren Selbstregulierungsmechanismen, die allerdings wenig effektiv sind und meist auch keine Verbrauchervertretung aufweisen. Eine Ausnahme machen Beschwerdekommissionen, die Streitfälle schnell und kostengünstig erledigen. Gesetzgebung bleibt hier notwendig als Mittel zu verbraucherfreundlichem Verhalten, etwa wie geplant zu Allgemeinen Geschäftsbedingungen.

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Ewoud H. Hondius is Professor of Law at the University of Utrecht, Molengraaff Institute for Civil Law, Nieuwe Gracht 60, NL-3512 LT Utrecht, Netherlands.The author is indebted to Mr Egens Holleman, at present a graduate student at the City of London Polytechnic, who did valuable research for Section 2.     

The effects of computerized performance monitoring: An ethical perspective

Considerable controversy has surrounded the use of computerized performance monitoring (CPM) by employers. Critics of this technology contend that CPM usage raises serious ethical concerns. Beliefs that the use of computerized performance monitors results in unfair performance evaluation, stress and health problems underlie much of the current concern over this technology. A field study was undertaken to provide empirical evidence that could be used to guide the design and use of computerized performance monitors to minimize these problems. One hundred forty three members of the Communication Workers of America participated in a cross sectional field study. The study examined the relationship between various monitoring system characteristics and employees' health problems, stress and satisfaction with the performance evaluation process. The ethical implications of the results are discussed.Stephen R. Hawk is Associate Professor of Information Systems at the University of Wisconsin-Parkside's School of Business. His research interests include decision support systems, computerized performance monitoring and information system implementation. His articles have appeared inDecision Sciences, IEEE Transactions on Engineering Management, andInternational Journal of Man-Machine Studies.     

Toward a predictive model of the consumer inference process: The role of expertise

An information processing model is proposed for understanding and predicting cognitive behaviors underlying the generation of an inference. J. R. Anderson's theory of cognitive skill learning serves as the basis for the conceptual model. Specific predictions are generated concerning the impact of different levels of prior knowledge on the occurrence of inference and on the types of inference processes. An effort is made to demonstrate how the theory can be developed into a formal, predictive model in the form of a computer simulation model. Finally, some suggestions for future research directions are discussed. © 1994 John Wiley & Sons, Inc.     

The impact of the work environment on ethical decision making: Some Australian evidence

Business ethics has emerged in recent years as a field of significant scholarly endeavour. Particularly well documented is the existence of ethical conflict at work and the reported inseparability of business decisions and moral consequences. However, to date, the majority of studies have been conducted in the American business context.This paper examines the concept of ethical conflict as experienced by employees in the Australian context. According to a sample of Western Australian managers, ethical conflicts at work do occur — with relative frequency. Of considerable concern is the high incidence of cases where the demands of superiors are deemed to be the cause of this conflict. This finding is particularly disturbing as superiors are also the primary influence on employee ethical decision making. It would see that the ethics role models are also the instigators of unethical behaviour.This research has confirmed in the Western Australian context that the values of top management do have significant impact on the ethical choices made by employees. The management of organisational culture, therefore, is a key to raising ethical standards in business. The institutionalisation of ethics by such formal means as codes of ethics is a necessary, but insufficient, condition of ensuring ethical behaviour in organisations. Management of the informal climate is pivotal to the achievement of ethical organisational behaviour.Geoffrey Soutar is Professor of Management at Curtin University of Technology. He has particular interests in marketing and, in recent times, in the marketing of services. He has published widely across a number of management areas and has acted as consultant for both private and public sector organisations as well as for a number of unions.Margaret McNeil is a Lecturer in the School of Management at Curtin University of Technology. Her research interests include corporate innovation and financial services marketing. Consultancy has been in the areas of financial services, professional services and non-profit organisations.Caron Molster is a Research Assistant in the School of Management at Curtin University of Technology. She has a research interest in the area of ethics, having completed her thesis on this topic.     

Creating ethical brands: the role of brand name on consumer perceived ethicality

A critical component of brand equity is consumer perceived ethicality (CPE) of the brand. Yet, little is known about how to create positive brand CPE. We offer that the starting point for creating brand CPE is with the brand-naming decision. Drawing on sound symbolism theory, we propose that certain brand name characteristics better convey ethicality. Two studies are conducted. Study 1 finds that higher frequency sounds in brand names better convey ethicality than lower frequency sounds. Study 2 finds that brand names can positively impact brand CPE in the presence of additional information, in particular, information that reflects negatively on the brand’s ethical behavior. These results suggest that marketers be more involved at the onset of creating an ethical brand image.     

Towards adopting a global perspective in the field of consumer studies

Abstract Using economic principles to explain the nuances of consumer decisions with global implications does not adequately capture the reality of modern consumption. Embracing a global perspective would enable consumer studies professionals to compensate for this shortcoming as it consists ‘of the information, attitudes, awareness, and skills which taken together, can help individuals understand the world, how they affect others, and how others affect them’ (p.19).¹ As this paper explains the essence of a global perspective, it reinterprets a collection of economic principles towards global sensitivity. Six ideas are suggested to facilitate a dialogue among consumer studies professionals about practising from a global perspective.     

The vices and virtues of consumption choices: price promotion and consumer decision making

As consumers exhibit relatively more self-control over healthy products by limiting the purchase quantity of vice choices and buying more virtue choices to adhere to healthy-eating goals, a price promotion has a stronger effect on virtue than vice choices of healthy food. In contrast, consumers exhibit relatively less self-control over unhealthy products and evaluate price promotions as a persuasive temptation mechanism; thus, a price promotion has a stronger effect on vice than virtue choices of unhealthy food. The results of the empirical analyses provide support for these hypotheses.     

Completion of the internal market and consumer protection: A UK perspective

The question has been raised of whether UK consumers have benefitted or suffered a decline in standards as a result of the UK's membership of the EC. Additionally some have queried whether the UK itself has fulfilled its obligations of implementing European Community law in this field. This article addresses these questions, concentrating on areas the authors deem to be of specific relevance to UK consumers, namely, product liability, package holidays, misleading advertising and enforcement. The treatment of these areas is preceded by a discussion of the basic philosophies underlying UK and European Community consumer protection policies.

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Zusammenfassung Die Vollendung des gemeinsamen Marktes und der Verbraucherschutz aus englischer Perspektive Es ist eine Diskussion darüber entstanden, ob britische Konsumenten als Folge der Mitgliedschaft Gro\britanniens in der Europäischen Gemeinschaft eher einen Vorteil erzielt oder eher einen Nachteil erlitten haben. Zusätzlich wurde gelegentlich in Zweifel gezogen, ob Gro\britannien selbst bei der Einführung europäischen Gemeinschaftsrechts in diesem Bereich überhaupt seine Verpflichtungen erfüllt hat. Bei der Behandlung dieser Fragen konzentiert sich der vorliegende Beitrag vor allem auf Gebiete, die nach Meinung der Autoren für englische Konsumenten von Bedeutung sein dürften, nämlich Produkthaftung, Pauschalreisen, irreführende Werbung und Rechtsdurchsetzung. Die Behandlung dieser Bereiche wird eingeleitet durch eine Diskussion der gedanklichen Grundlagen, die einerseits der britischen und andererseits der europäischen Gemeinschaftspolitik im Bereich des Verbraucherschutzes unterliegen.

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Joan Hunter was formerly a Lecturer in the Faculty of Law at the University of Dundee; she is now a trainee solicitor.     

Consumer ethics: An empirical investigation of factors influencing ethical judgments of the final consumer

Business and marketing ethics have come to the forefront in recent years. While consumers have been surveyed regarding their perceptions of ethical business and marketing practices, research has been minimal with regard to their ethical beliefs and ideologies. This research investigates general attitudes of consumers relative to business, government and people in general, and compares these attitudes to their beliefs concerning various questionable consumer practices. The results show that consumers' ethical beliefs are determined, in part, by who is at fault in the unethical behavior (the seller or the buyer). The results also indicate that those with a more positive attitude toward business are less likely to engage in questionable consumer practices, but one's attitudes toward salespeople, the government and people in general arenot related to the consumer's ethical beliefs.Scott J. Vitell is an Associate Professor and the Michael S. Starnes Professor of Marketing and Business Ethics at the University of Mississippi. His publications have appeared in theJournal of Macromarketing, theJournal of Business Ethics, theJournal of the Academy of Marketing Science, theJournal of Business Research, Research in Marketing and numerous other journals and proceedings.James A. Muncy is Assistant Professor of Marketing at Clemson University. His publications have appeared in theJournal of Marketing, Journal of Business Research, Journal of Current Issues and Research in Advertising, Journal of Marketing Education, andAdvances in Consumer Research. He has also published in the National Proceedings of the American Marketing Association and the American Psychological Association and has published five chapters in books. He is active in the Association for Consumer Research, acting as its Publications Director and Newsletter Coeditor.     

The ethical implications of the straight-commission compensation system — An agency perspective

This paper examines the role of the straight-commissioned salesperson in the context of agency theory and asserts that because the agent acts to benefit two principals, potential conflicts of interest arise. Temporal differences in receipt of rewards create a major conflict, while the firm's exhibition of both espoused and actual behaviors and information asymmetries intensify this conflict. Finally, in light of these inconsistencies, the ethical implications of the straight-commission compensation system are examined.Nancy Kurland is a doctoral student at the Katz Graduate School of Business of the University of Pittsburgh. She has had extensive experience as a straight-commissioned salesperson, including her most recent position as an investment broker for a major Wall Street firm.     

Exploring the elements of consumer nostalgia in retailing: Evidence from a content analysis of retailer collages

This article focuses on consumer nostalgia in the retailing environment to identify the types of nostalgic memories evoked by remembering a retailer and the elements associated with such nostalgic memories. A projective technique involving collage construction enabled informants to reflect their feelings about, memories of, experiences with, or relationships with a retailer that they have selected. The findings uncovered three distinct types of retailer-related consumer nostalgic memories and six elements that comprise retailer-related consumer nostalgic memories. The findings of the study offer a comprehensive understanding of retailer consumer nostalgia. Theoretical and managerial implications are discussed.     

Exploring the determinants of organizational emergence: A legitimacy perspective

In an attempt to explain why some nascent organizations become new organizations while others do not, we contend that the process of organizational emergence can be understood and predicted by viewing it as a quest for legitimacy. We subsequently find empirical evidence to suggest that the actions a nascent organization takes (or strategic legitimacy) may be more important than its characteristics (or conforming legitimacy) in explaining organizational emergence. Such a conclusion is important in that it provides a theoretical framework with which to understand organizational emergence and in so doing advances our knowledge of this important process.