Perceived ethics of online retailers and consumer behavioral intentions

Abstract

Purpose -The purpose of this study is to examine the effects of consumers' perception of online retailers' ethical behavior on consumer purchase and revisit intentions. Design/methodology/approach -A sample of 259 online shoppers was employed to test the relationships between perceived ethics of online retailers and the intention to revisit and purchase. The measurement model and structural relationships were estimated using AMOS 18. Findings -Results show that perceived ethics of an Internet retailer's website significantly affect consumers' trust and attitudes to the retailer's website that eventually have positive impacts on purchase and revisit intentions. Website trust was positively related to attitude toward the site. The results do not show support for a direct effect between perceived ethics and behavioral intentions, but attitude and trust toward the website mediate these effects. Practical implications -The findings support the idea that despite the physical distance between online retailers and customer, behaving ethically has an effect on revisit and purchase intentions. This suggests that online vendors should invest in methods that strengthen consumers' trust of websites. To convey a sense of ethics of the website, websites should ensure that privacy policies are easy to understand, explain clearly how customer information is used, offer secure payment methods, display clearly the terms and conditions of the online transactions, fulfill the orders, and avoid deceptive practices and exaggerations of product characteristics. Originality/value -Research integrating perceived ethical conduct of retailers and consumer behavior is still in the beginning, and has not explored all outcomes of perceived ethics. This study is an initial attempt to investigate the effects of perceived ethics of retailers on revisit and purchase intentions. This study contributes to the knowledge of consumer perceived ethics and behavioral intentions.

Online Retailing: Purchasing Behaviour of Croatian Consumers

“…In that context, the findings reveal that trust, perceived ease of use, perceived usefulness and enjoyment are significant positive predictors of customers' repurchase intentions (Chiu et al, 2009). As regards the effects of consumers' perception of online retailers' ethical behaviour on consumer purchase and revisit intentions it was found that perceived ethics of an Internet retailer's website significantly affected consumers' trust and attitudes to the retailer's website that eventually had positive impacts on purchase and revisit intentions (Limbu et al, 2012). Furthermore, to enhance customer purchase intentions, online stores should develop marketing strategies to better address the trustworthiness, reliability, and responsiveness of web-based services (Lee & Lin, 2005).…”

Intervening Effect of Attitude on the Relationship between Selected Determinants and Corporate Image

“…Moreover, inconsistent result also observes the mediating effect of attitude on the relationship of the other linkages [14], [17], [27], [28], [30]- [34]. Thus, this hypothesis ought to be investigated further due to inconsistent results as well as to increase direct selling sectors especially in Thailand.…”

“…This managerial gap has indicated that direct selling companies are worried about pyramid schemes and internet fraud which can be the main cause of bad direct selling corporate image that might threaten their legitimate business [13]. The increasing number of pyramid schemes and internet frauds (internet marketing) cases have created problems leading to the negative attitude [10], distrust [14], negative perceived value [15] and consequently leading to the bad corporate image of direct selling companies [12]. Distrust in consumer attitude as a result of internet fraud in Thailand [16] has affected consumers' attitudes towards the products or services they purchase [2], [3].…”

“…The key reason for focusing on the corporate image model is mainly because corporate image model still requires further research since there exist inconsistencies in past results [14], [17], [18]. There is a widespread importance of studying attitude issues toward direct selling companies [24], fragmented conceptualization [17], [25], lack of practitioners [26], and empirical understanding of attitudinal aspects of corporate image, and increasing negative attitude in direct selling [2], [3].…”

“…The literature has shown that there are many factors that affect consumer attitudes, such as brand architecture [17], [27], [28], internet marketing [29], CSR [14], trust [14]- [16], [19], and perceived value [15], [30], [31].…”