Abstract
The response of consumers to a firm’s ethical behavior and the underlying factors influencing/forming each consumer’s response outcome is analyzed in this article based on information obtained through interviews. The results indicate that, in the Chinese context, the responding outcome can be boiled down to five types, namely, resistance, questioning, indifference, praise, and support. Additionally, consumers’ responses were mainly influenced by the specific consumer’s ethical consciousness, ethical cognitive effort, perception of ethical justice, motivation judgment, institutional rationality, and corporate social responsibility–corporate ability (CSR–CA) belief. Based on these results, a generalized framework of consumer’s ethical responses is developed which provides a number of insightful suggestions upon how to motivate a consumer’s support of a firm’s ethical behavior and to transfer this kind of support into truly positive purchasing behavior.
Similar content being viewed by others
Notes
In evidence, corporate social responsibility (CSR) and philanthropic action have not only mutual connections, but differences. The highest level of CSR is a firm’s philanthropy. However, CSR involves not only a firm’s philanthropy but also issues of a wider scope, such as economic responsibility, legal responsibility, and ethical responsibility.
The underlying factors forming the different consumers’ responding outcome has been articulated more clearly in Fig. 2.
References
Al-Khatib, J. A. (2005). Ethical segmentation of consumers in developing countries: A comparative analysis. International Marketing Review, 22(2), 44–59.
Auger, P., & Devinney, T. M. (2007). Do what consumers say matter? The misalignment of preferences with unconstrained ethical intentions. Journal of Business Ethics, 76, 361–383.
Barnes, J. G., & McTavish, R. (1983). Segmenting industrial markets by buyer sophistication. European Journal of Marketing, 18, 16–33.
Baron, D. P. (1999). Integrated market and non-market strategies in client and interest group politics. Business and Politics, 1(7), 7–34.
Batson, C. D., & Shaw, L. L. (1991). Evidence for altruism: Toward a pluralism of prosocial motives. Psychological Inquiry, 2(2), 107–122.
Becker-Olsen, K. L., Cudmore, B. A., & Hill, R. P. (2006). The impact of perceived corporate social responsibility on consumer behavior. Journal of Business Research, 59, 46–53.
Berger, E. M., Cahill, G. F., Jr., Clouoser, K. D., Culver, C. M., Gert, B., Moeschler, J. B., & Singer, G. H. S. (1996). Morality and the new genetics: A guide for students and health care providers. Boston: Jones and Bartlett Publishers.
Bernard, R. (1988). Research methods in cultural anthropology. Newbury Park, CA: Sage Publications.
Black, J. S., Stern, P. C., & Elworth, J. T. (1985). Personal and contextual influences on household energy adaptations. Journal of Applied Social Psychology, 70(1), 3–21.
Boulstridge, E., & Carrigan, M. (2000). Do consumers really care about corporate responsibility? Highlighting the attitude-behavior gap. Journal of Communication Management, 4(4), 355–368.
Bristol, T., & Fern, E. F. (2003). The effects of interaction on consumers’ attitudes in focus groups. Psychology and Marketing, 20(5), 433–454.
Brown, T. J., & Dacin, P. A. (1997). The company and the product: Corporate associations and consumer product responses. Journal of Marketing, 61(January), 68–84.
Brunk, K. H. (2010). Exploring origins of ethical company/brand perceptions—a consumer perspective of corporate ethics. Journal of Business Research, 63(3), 255–262.
Caminiti, S. (1992). The payoff from a good reputation. Fortune, 125(3), 74–77.
Carrigan, M., & Attalla, A. (2001). The myth of the ethical consumer: Do ethics matter in purchase behavior? Journal of Consumer Marketing, 18(7), 560–577.
Carrington, M. J., Neville, B. A., & Whitwell, G. J. (2010). Why ethical consumers don’t walk their talk: Towards a framework for understanding the gap between the ethical purchase intentions and actual buying behaviour of ethically minded consumers. Journal of Business Ethics, 97, 139–158.
Carvalho, S. W., Sen, S., Mota, M. O., & Lima, R. C. (2010). Consumer reactions to CSR: A Brazilian perspective. Journal of Business Ethics, 91, 291–310.
Cialdini, R. B. (1991). Altrism of egoism? That is (still) the question. Psychological Inquiry, 2(2), 124–126.
Creyer, E. H., & Ross, W. T. (1997). The influence of firm behavior on purchase intention: Do consumers really care about business ethics? Journal of Consumer Marketing, 14(6), 421–433.
Dickson, P. R., & Sawyer, A. (1990). The price knowledge and search of supermarket shoppers. Journal of Marketing, 54, 42–53.
Dickson, P. R., & Wilkie, W. (1985). Consumer information search and shopping behavior. Working Paper, University of Florida, Gainesville, FL.
Doane, D. (2001). Taking flight: The rapid growth of ethical consumerism. UK: New Economics Foundation.
Dragon International. (1991). Corporate reputation: Does the consumer care?. London: Dragon International.
Eckhardt, G., Devinney, T., & Belk, R. (2006). Why don’t consumers behave ethically. DVD document. AGSM.
Ellen, P. S., Webb, D. J., & Mohr, L. A. (2006). Building corporate associations: Consumer attributions for corporate socially responsible programs. Journal of the Academy of Marketing Science, 34(2), 147–157.
Endacott, R. W. (2004). Consumer and CRM: A national and global perspective. The Journal of Consumer Marketing, 21(2/3), 183–189.
Folkes, V. S., & Kamins, M. A. (1999). Effects of information about firms’ ethical and unethical actions on consumer attitudes. Journal of Consumer Psychology, 8(3), 243–259.
Forte, M., & Lamont, B. T. (1988). The bottom line effects of greening: Implications of environmental awareness. Academy of Management, 12(1), 89–90.
Fu, P. P., Farr, J. L., & Peng, W. (2002). Characteristics and processes of top management teams in Chinese high tech firms. In A. S. Tsui & C. M. Lau (Eds.), The management of enterprises in the People’s Republic of China (pp. 375–413). Boston: Kluwer Academic Publishers.
Futerra, S. C. L. (2005). The rules of the game: The principals of climate change communication. London, UK: Department for Environment, Food and Rural Affairs.
Gaski, J. F. (1999). Does marketing ethics really have anything to say?—A critical inventory of the literature. Journal of Business Ethics, 18(3), 315–334.
Haddow, I. (2001). Brazil in US AIDS drugs row. Available at: www.news.bbc.co.uk. Accessed 3 Feb 2011.
Hirschman, E. C. (1980). Innovation, novelty seeking, and consumer creativity. Journal of Consumer Research, 7(3), 283–295.
Huang, M., Lee, X., & Zhu, H. (2008). “The Analysis upon enterprise’s being forced to donate” phenomenon: Is “consumer’s unmorality” or “no good enterprise”? Management World, 11, 114–128.
Hunt, S. D., & Vitell, S. J. (1992). The general theory of marketing ethics: A retrospective and revision. In N. C. Smith & J. A. Quelch (Eds.), Ethics and marketing (pp. 775–784). Homewood, IL: Irwin.
Kempton, W., Darley, J. M., & Stern, P. C. (1992). Psychological research for the new energy problems. American Psychologist, 47(10), 1213–1223.
Laczniak, G. R. (1993). Marketing ethics: Onward toward greater expectations. Journal of Public Policy and Marketing, 12(Spring), 91–96.
Laczniak, G. R., & Murphy, P. E. (1993). Ethical marketing decisions: The higher road. Needham Heights, MA: Allyn and Bacon.
Luo, X. (2004). Seeking the balance between aims and means: An investigation about firm’s ethics. Society, 18–24.
Luo, X., & Bhattacharya, C. B. (2006). Corporate social responsibility. Customer satisfaction, and market value. Journal of Marketing, 70, 23–40.
Manakkalathil, J., & Rudolf, E. (1995). Corporate social responsibility in a globalizing market. SAM Advanced Management Journal, 4, 29–47.
Mascarenhas, O. A. J. (1995). Exonerating unethical marketing behaviors: A diagnostic framework. Journal of Marketing, 59, 43–57.
Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis (2nd ed., pp. 115–124). Thousand Oaks, CA: Sage.
Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39(1), 121–147.
Mohr, L. A., Webb, D. J., & Harris, K. E. (2001). Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumers Affairs, 35(1), 45–72.
Muncy, J. A., & Vitell, S. J. (1992). Consumer ethics: An investigation of the ethical beliefs of the final consumer. Journal of Business Research, 24(4), 297–311.
Murphy, P. E., & Laczniak, G. R. (1981). Marketing ethics: A review with implications for managers, educators and researchers. In B. M. Enis & K. J. Roering (Eds.), Review of Marketing (pp. 251–266). Chicago: American Marketing Association.
Murray, K. B., & Vogel, C. M. (1997). Using a hierarchy of effects approach to gauge the effectiveness of CSR to generate goodwill towards the firm: Financial versus non-financial impacts. Journal of Business Research, 38(2), 141–160.
Neter, J., Wasserman, W., & Kutner, M. H. (1985). Applied linear statistical models (2nd ed.). Homewood, IL: Irwin.
Öberseder, M., Schlegelmilch, B., & Gruber, V. (2011). ‘Why don’t consumers care about CSR?’: A qualitative study. Exploring the role of CSR in consumption decisions. Journal of Business Ethics, 100(4). doi:10.1007/s10551-011-0925-7.
Patrick, V., Kristof, D., & Sarah, S. (2003). The relationship between consumers’ unethical behavior and customer loyalty in a retail environment. Journal of Business Ethics, 44, 261–278.
Porter, M., & Kramer, M. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 12, 57–68.
Porter, M., & Kramer, M. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 12, 1–15.
Rawwas, M. Y. A. (2005). Consumer ethics: A cross-cultural study of the ethical beliefs of Turkish and American consumers. Journal of Business Ethics, 57(2), 32–51.
Reeder, G., & Brewer, M. (1979). A schematic model of dispositional attribution in interpersonal perception. Psychological Review, 86, 61–79.
Ricky, C. Y. (2007). Applying ethical concepts to the study of ‘Green’ consumer behavior: An analysis of Chinese consumers’ intentions to bring their own shopping bags. Journal of Business Ethics, 14(3), 66–91.
Roberts, J. A. (1996). Will the socially responsible consumer please step forward? Business Horizons, 39(1), 79–84.
Ross, J. K., Patterson, L., & Stutts, M. A. (1992). Consumer perceptions of organizations that use cause-related marketing. Journal of the Academy of Marketing Science, 20(1), 93–97.
Ross, J. K., Stutts, M. A., & Patterson, L. T. (1990). Tactical considerations for the effective use of cause-related marketing. Journal of Applied Business Research, 7(2), 58–65.
Rust, R. T., & Cooil, B. (1994). Reliability measures for qualitative data: Theory and implications. Journal of Marketing Research, 31, 1–14.
Sen, S., & Bhattacharya, B. C. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2), 225–243.
Shaw, D., Shiu, E., Hassan, L., Bekin, C., & Hogg, G. (2007). Intending to be ethical: An examination of consumer choice in sweatshop avoidance. Advances in Consumer Research, 34, 31–38.
Simon, F. L. (1995). Global corporate philanthropy: A strategic framework. International Marketing Review, 12(4), 20–37.
Smith, D. C. (1995). An introduction to ethics for business people. Business Ethics Quarterly, 5, 157–161.
Smith, G., & Stodghill, R. (1994). Are good causes good marketing? Business Week, 3363, 64–66.
Smith, N. C., & Quelch, J. A. (1996). Ethics in marketing. Boston, MA: Irwin.
Snijders, T., & Bosker, T. (1999). Multilevel analysis: An introduction to basic and advanced multilevel modeling. Thousand Oaks, CA: Sage.
Skowronski, J. J., & Carlston, D. E. (1987). Social judgement and social memory: The role of cue diagnosticity in negativity, positivity and extremity biases. Journal of Personality and Social Psychology, 52, 689–699.
Stone, R. (1954). Linear expenditure systems and demand analysis: An application to the pattern of British demand. Economic Journal, 255, 511–527.
Strahilevitz, M., & Myers, J. G. (1998). Donations to charity as Purchase Incentives: How well they work may depend on what you are trying to sell. Journal of Consumer Research, 24, 434–446.
Thompson, D. F. (1995). Ethics in congress: From individual to institutional corruption. Washington, DC: Brookings Institutions.
Tian, Z. L., Deng, X. M., & Hafsi, T. (2008). Enterprise’s market action, non-market action and their competitive interaction: Case studies. Management World, 8, 61–77.
Titus, P. A., & Bradford, J. L. (1996). Reflections on consumer sophistication and its impact on ethical business practice. Journal of Consumer Affairs, 30(1), 170–195.
Trudel, R., & Cotte, J. (2009). Does it pay to be good? MIT Sloan Management Review, 50(2), 60–68.
Ulrich, P., & Sarasin, C. (1995). Facing public interest: The ethical challenge to business policy and corporate communications. London: Kluwer Academic Publications.
Vitell, S. J. (2003). Consumer ethics research: Review, synthesis, and suggestions for the future (in Chinese). Journal of Business Ethics, 43, 33–47.
Wang, J. Y. (2008). Ethical consumers: A market power could not be ignored. Jianshu Business Review, 4, 23–26.
Webb, J. D., & Mohr, L. A. (1998). A typology of customers responses to cause related marketing: From skeptics to socially concerned. Journal of Public Policy and Marketing, 17(2), 226–239.
Webster, F. E. (1975). Determining the characteristics of the socially conscious consumer. Journal of Consumer Research, 2(3), 188–196.
Wengraf, T. (2001). Qualitative research interviewing: Biographic narrative and semi-structured method. London: Sage Publications.
Wooten, D. B., & Reed II, A. (2000). A conceptual overview of the self-presentational concerns and response tendencies of focus group participants. Journal of Consumer Psychology, 9(3), 141–153.
Yoon, Y., Zeynep, G., & Beyza, B. (2006). Drawing inferences about others based on corporate social responsibility associations. Journal of the Academy of Marketing Science, 34(2), 167–173.
Zhou, Y. F., Luo, W. E., & Xiao, W. J. (2007). Firms’ social responsibility and consumer’s response: The mediating role of consumer’s individual characteristics and price signal. Chinese Industrial Economics, 3, 45–57.
Acknowledgments
This research is supported by the Natural Science Foundation of China (NSFC) (Projects No.: 70902053).
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Deng, X. Understanding Consumer’s Responses to Enterprise’s Ethical Behaviors: An Investigation in China. J Bus Ethics 107, 159–181 (2012). https://doi.org/10.1007/s10551-011-1031-6
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-011-1031-6