Hostname: page-component-cd9895bd7-p9bg8 Total loading time: 0 Render date: 2024-12-26T03:34:29.646Z Has data issue: false hasContentIssue false
  • English
  • Français

The Importance of Ethics in Branding: Mediating Effects of Ethical Branding on Company Reputation and Brand Loyalty

Published online by Cambridge University Press:  04 July 2017

Sharifah Faridah Syed Alwi ,
Sulaiman Muhammad Ali  and
Bang Nguyen
Sharifah Faridah Syed Alwi
Affiliation:
Brunel University London
Sulaiman Muhammad Ali
Affiliation:
University of Syiah Kuala
Bang Nguyen
Affiliation:
East China University of Science and Technology
Get access Rights & Permissions [Opens in a new window]

Abstract:

This study aims to develop an ethical branding framework that determines whether a corporate brand’s functional and emotional values, that is, product, service quality, and perceived price (antecedents), influence ethical branding and, consequently, company reputation and brand loyalty (consequences) among industrial buyers of electronic office equipment in Malaysia. Using structural equation modelling, the article demonstrates the effects of perceived price, quality of product and service on ethical branding, company reputation, and brand loyalty. The results reveal that product quality directly influences ethical brand perceptions and, consequently, company reputation. Perceived price and service quality do not directly affect company reputation; instead, they affect its identification through ethical branding. The findings thus demonstrate that product quality, perceived price, and service quality affect company reputation through the mediation of ethical branding. This highlights that an ethical brand is effective for companies to maintain their reputation among industrial buyers.

Keywords

ethical brandingethical corporate marketingcorporate brandcorporate reputationelectronic office equipment
Type
Special Section
Information
Business Ethics Quarterly , Volume 27 , Issue 3 , July 2017 , pp. 393 - 422
Copyright
Copyright © Society for Business Ethics 2017 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Abratt, R., & Kleyn, N. 2012. Corporate identity, corporate branding and corporate reputations: Reconciliation and integration. European Journal of Marketing , 46: 1048–1063.Google Scholar
Ambler, T., Kokkinaki, F., Puntoni, S., & Riley, D. 2001. Assessing market performance: The current state of metrics . London Business School, Center for Marketing Working Paper: 01–903.Google Scholar
Anderson, J. C., & Gerbing, D. W. 1988. Structural equation modelling in practice: A review and recommended two-step approach. Psychological Bulletin , 103: 411–423.Google Scholar
Andriof, J., & McIntosh, M. 2001. Perspectives on corporate citizenship . Sheffield, UK: Greenleaf Publishing.Google Scholar
Balmer, J. M. T. 1995. Corporate branding and connoisseurship. Journal of General Management , 21: 24–46.CrossRefGoogle Scholar
Balmer, J. M. T. 2001. Corporate identity, corporate branding and corporate marketing-Seeing through the fog. European Journal of Marketing , 35: 248–291.CrossRefGoogle Scholar
Balmer, J. M. T. 2011. Corporate marketing myopia and the inexorable rise of a corporate marketing logic: Perspectives from identity-based views of the firm. European Journal of Marketing , 45: 1329–1352.Google Scholar
Balmer, J. M. T. 2013. Corporate brand orientation: What is it? What of it? Journal of Brand Management , 20: 723–741.CrossRefGoogle Scholar
Balmer, J. M. T., & Gray, E. R. 2003. Corporate brands: What are they? What of them? European Journal of Marketing , 37: 972–997.CrossRefGoogle Scholar
Balmer, J. M. T., & Greyser, S. A. 2006. Corporate marketing: Integrating corporate identity, corporate branding, corporate communications, corporate image and corporate reputation. European Journal of Marketing , 40: 730–741.CrossRefGoogle Scholar
Balmer, J. M. T., & Liao, M. N. 2007. Student corporate brand identification: An exploratory case study. Corporate Communications: An International Journal , 12: 356–375.CrossRefGoogle Scholar
Balmer, J. M. T., Powell, S. M., & Greyser, S. A. 2011. Explicating ethical corporate marketing. Insights from the BP Deepwater Horizon catastrophe: The ethical brand that exploded and then imploded. Journal of Business Ethics , 102: 1–14.Google Scholar
Bendapudi, N., & Leone, R. P. 2002. Managing business-to-business customer relationships following key contact employee turnover in a vendor firm. Journal of Marketing , 66: 83–101.Google Scholar
Berens, G., van Riel, C. B. M., & van Bruggen, G. H. 2005. Corporate associations and consumer product responses: The moderating role of corporate brand dominance. Journal of Marketing , 69: 35–48.Google Scholar
Biraghi, S., & Gambetti, R. C. 2015. Corporate branding: Where are we? A systematic communication-based inquiry. Journal of Marketing Communications , 21: 260–283.CrossRefGoogle Scholar
Baron, R. M., & Kenny, D. A. 1986. The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology , 51: 1173–1182.Google Scholar
Bendixen, M., Bukasa, K. A., & Abratt, R. 2004. Brand equity in the business-to-business market. Industrial Market Management , 33: 371–80.CrossRefGoogle Scholar
Beverland, M., Napoli, J., & Yakimova, R. 2007. Branding the business marketing offer: Exploring brand attributes in business markets. Journal of Business and Industrial Marketing , 22: 394–399.Google Scholar
Bhattacharya, C. B., & Sen, S. 2004. Doing better at doing good: When, why, and how consumers respond to corporate social initiatives. California Management Review , 47: 9–24.CrossRefGoogle Scholar
Bolton, R. N., Kannan, P. K., & Bramlett, M. D. 2000. Implications of loyalty program membership and service experiences for customer retention and value. Journal of the Academy of Marketing Science , 28: 95–108.Google Scholar
Bowen, S. A. 2004. Organizational factors encouraging ethical decision-making: An exploration into the case of an exemplar. Journal of Business Ethics , 52: 311–324.CrossRefGoogle Scholar
Brown, T. J. 1998. Corporate associations in marketing: Antecedents and consequences. Corporate Reputation Review , 1(3): 215–233.Google Scholar
Brown, T. J., & Dacin, P. A. 1997. The company and the product: Corporate associations and consumer product responses. Journal of Marketing , 1: 68–84.Google Scholar
Brunk, K. H. 2010a. Exploring origins of ethical company/brand perceptions—A consumer perspective of corporate ethics. Journal of Business Research , 63: 255–262.CrossRefGoogle Scholar
Brunk, K. H. 2010b. Exploring origins of ethical company/brand perceptions: Reply to Shea and Cohn’s commentaries. Journal of Business Research , 63: 1364–1367.Google Scholar
Brunk, K. H. 2012. Un/ethical company and brand perceptions: Conceptualizing and operationalizing consumer meanings. Journal of Business Ethics , 111: 551–565.CrossRefGoogle Scholar
Byrne, M. B. 2001. Structural equation modelling with AMOS: Basic concepts, applications and programming . Mahwah, NJ: Lawrence Erlbaum Associates.Google Scholar
Carroll, A. B. 2000. Ethical challenges for business in the new millennium: Corporate social responsibility and models of management morality. Business Ethics Quarterly , 10: 33–42.CrossRefGoogle Scholar
Carroll, A., & Buchholtz, A. 2014. Business and society: Ethics, sustainability, and stakeholder management . Stamford, CT: Cengage Learning.Google Scholar
Caza, A. B., Barker, B. A., & Cameron, K. S. 2004. Ethics and ethos: The buffering and amplifying effects of ethical behavior and virtuousness. Journal of Business Ethics , 52: 169–178.Google Scholar
Chi-Shiun, L., Chih-Jen, C., Chin-Fang, Y., & Da-Chang, P. 2010. The effects of corporate social responsibility on brand performance: The mediating effect of industrial brand equity and corporate reputation. Journal of Business Ethics , 95: 457–469.Google Scholar
Clarkson, M. E. 1995. A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review , 20: 92–117.Google Scholar
Cretu, A. E., & Brodie, R. J. 2007. The influence of brand image and company reputation where manufacturers market to small firms: A customer value perspective. Industrial Marketing Management , 36: 230–240.CrossRefGoogle Scholar
Crosby, B. L., DeVito, R., & Pearson, M. J. 2003. Manage your customers’ perception of quality. Review of Business , 24: 18–24.Google Scholar
Dacin, P. A., & Brown, T. J. 2002. Corporate identity and corporate associations: A framework for future research. Corporate Reputation Review , 5: 254–263.Google Scholar
Davies, G., Chun, R., da Silva, R. V., & Roper, S. 2004. A corporate character scale to assess employee and customer views of organization reputation. Corporate Reputation Review , 7: 125–146.Google Scholar
Davis, D. F. 2003. The effect of brand equity in supply chain relationship . Doctoral dissertation, University of Tennessee. http://trace.tennessee.edu/utk_graddiss/1996.Google Scholar
De Chernatony, L. 2002. Would a brand smell any sweeter by a corporate name? Corporate Reputation Review , 5: 114–132.CrossRefGoogle Scholar
Enderle, G., & Tavis, L. A. 1998. A balanced concept of the firm and the measurement of its long-term planning and performance. Journal of Business Ethics , 17: 1129–1144.CrossRefGoogle Scholar
Ernst & Young LLP (2014) DiGi’s sustainability report 2014 . http://www.digi.com.my/sustainability/pdf/DigiSR2014.pdf.Google Scholar
Fan, Y. 2005. Ethical branding and corporate reputation. Corporate Communications: An International Journal , 10: 341–350.CrossRefGoogle Scholar
Farrell, A. M., Souchon, A. L., & Durden, G. R. 2001. Service encounter conceptualisation: Employees’ service behaviours and customers, service quality perceptions. Journal of Marketing Management , 17: 577–593.CrossRefGoogle Scholar
Fombrun, C. J., Gardberg, N. A., & Barnett, M. L. 2000. Opportunity platforms and safety nets: Corporate citizenship and reputational risk. Business and Society Review , 105: 85–106.CrossRefGoogle Scholar
Fornell, C., & Larcker, D. F. 1981. Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research , 18: 382–388.Google Scholar
Garver, M. S., & Mentzer, J. T. 1999. Logistics research methods: Employing structural equation modelling to test for construct validity. Journal of Business Logistics , 20: 33–53.Google Scholar
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. 2008. Multivariate data analysis . 7th Edition. Upper Saddle River, NJ: Prentice Hall, Pearson Educational International.Google Scholar
Hayes, A. F. 2013. Introduction to mediation, moderation, and conditional process analysis: A regression-based approach . New York: Guilford Press.Google Scholar
Hur, W. M., Kim, H., & Woo, J. 2014. How CSR leads to corporate brand equity: Mediating mechanisms of corporate brand credibility and reputation. Journal of Business Ethics , 125: 75–86.Google Scholar
Jayawardhena, C., Souchon, A. L., Farrell, A. M., & Glanville, K. 2007. Outcomes of service encounter quality in a business-to-business context. Industrial Marketing Management , 36: 575–588.Google Scholar
Kline, R. B. 1998. Principles and practices of structural equation modelling . New York: The Guildford Press.Google Scholar
Kukar-Kinney, M., & Grewal, D. 2006. Consumer willingness to claim a price-matching refund: A look into the process. Journal of Business Research , 59: 11–18.CrossRefGoogle Scholar
Lam, S. Y., Shankar, V., Erramili, M. K., & Murthy, B. 2004. Customer value, satisfaction, loyalty, and switching costs: An illustration from a business-to-business service context. Academy of Marketing Science , 32: 293–311.Google Scholar
Lin, C. P., Lyau, N. M., Tsai, Y. H., Chen, W. Y., & Chiu, C. K. 2010. Modeling corporate citizenship and its relationship with organizational citizenship behaviors. Journal of Business Ethics , 95: 357–372.Google Scholar
Loe, T. W., Ferrell, L., & Mansfield, P. 2000. A review of empirical studies assessing ethical decision making in business. Journal of Business Ethics , 25: 185–204.Google Scholar
Long, S. J. 1983. Confirmatory factor analysis: A preface to Lisrel . Newbury Park, CA: Sage.CrossRefGoogle Scholar
Lowengart, O., Mizrahi, S., & Yosef, R. 2003. Effect of consumer characteristics on optimal reference price. Journal of Revenue and Pricing Management , 2: 201–215.Google Scholar
Lynch, J., & de Chernatony, L. 2004. The power of emotion: Brand communication in business-to-business markets. Journal of Brand Management , 11: 403–419.Google Scholar
Maas, K., & Liket, K. 2011. Talk the walk: Measuring the impact of strategic philanthropy. Journal of Business Ethics , 100: 445–464.Google Scholar
Maignan, I., Ferrell, O. C. & Ferrell, L. 2005. A stakeholder model for implementing social responsibility in marketing. European Journal of Marketing , 39: 956–977.CrossRefGoogle Scholar
Mazzanti, M., & Zoboli, R. 2006. Economic instruments and induced innovation: The European policies on end-of-life vehicles. Journal of Ecological Economics , 58: 318– 337.CrossRefGoogle Scholar
McWilliams, A., & Siegel, D. 2001. Corporate social responsibility: A theory of the firm perspective. Academy of Management Review , 26: 117–127.CrossRefGoogle Scholar
Martin, K. D., & Johnson, J. L. 2010. Ethical beliefs and information asymmetries in supplier relationships. Journal of Public Policy & Marketing , 29: 38–51.Google Scholar
Melewar, T. C., & Karaosmanoglu, E. 2006. Seven dimensions of corporate identity: A categorization from the practitioners' perspectives. European Journal of Marketing , 40: 846–869.Google Scholar
Melewar, T. C., & Nguyen, B. 2015. Five areas to advance branding theory and practice. Journal of Brand Management , 21: 758–769.CrossRefGoogle Scholar
Morgan, R. M., & Hunt, S. D. 1994. The commitment-trust theory of relationship marketing. Journal of Marketing , 58: 20–38.Google Scholar
Mulki, J. P., & Jaramillo, F. 2011. Ethical reputation and value received: Customer perceptions. International Journal of Bank Marketing , 29: 358–372.Google Scholar
National Economic Advisory Council. 2010. New economic model for Malaysia – Part 1 . Kuala Lumpur: Percetakan Nasional Malaysia Berhad. https://www.pmo.gov.my/dokumenattached/NEM_Report_I.pdf (accessed 25 January 2016).Google Scholar
Nguyen, B., Melewar, T. C., & Schultz, D. (Eds.) 2016. Asia branding: Connecting brands, consumers and companies . New York: Palgrave MacMillan.Google Scholar
Nnorom, I. C., & Osibanjo, O. 2008. Overview of electronic waste (e-waste) management practices and legislations, and their poor applications in the developing countries. Journal of Resources, Conservation and Recycling , 52: 834–858.Google Scholar
Okoye, A. 2009. Theorising corporate social responsibility as an essentially contested concept: Is a definition necessary? Journal of Business Ethics , 89: 613–627.Google Scholar
Olins, W. 2004. On brand . New York: Thames & Hudson.Google Scholar
Olins, W. 2014. Brand new: The shape of brands to come . New York: Thames & Hudson.Google Scholar
Page, G., & Fearn, H. 2005. Corporate reputation: What do consumers really care about? Journal of Advertising Research , 45: 305–313.Google Scholar
Palazzo, G. & Basu, K. 2007. The ethical backlash of corporate branding. Journal of Business Ethics , 73: 333–346.Google Scholar
Paluszek, J. 2005. Ethics and brand value: Strategic differentiation . Slide presentation, Markkula Center for Applied Ethics, Santa Clara University. http://ethicsbranding.com/images/ethics-and-brand-value%20%5bRead-Only%5d%20%5bCompatibility%20Mode%5d.pdf Google Scholar
Parguel, B., Benoît-Moreau, F., & Larceneux, F. 2011. How sustainability ratings might deter “greenwashing”: A closer look at ethical corporate communication. Journal of Business Ethics , 102: 15–28.Google Scholar
Payne, A., & Frow, P. 2013. Strategic customer management: Integrating CRM and relationship marketing . Cambridge, UK: Cambridge University Press.Google Scholar
Powell, S. M. 2011. The nexus between ethical corporate marketing, ethical corporate identity and corporate social responsibility: An internal organizational perspective. European Journal of Marketing , 45: 1365–1379.Google Scholar
Preacher, K. J., & Hayes, A. F. 2004. SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior Research Methods , 36: 717–731.Google Scholar
Preacher, K. J., & Hayes, A. F. 2008. Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods , 40: 879–891.Google Scholar
Preacher, K. J., & Kelley, K. 2011. Effect size measures for mediation models: Quantitative strategies for communicating indirect effects. Psychological Methods , 16: 93–115.Google Scholar
Sagar, M., Singh, D., & Agrawal, D. P. 2006. Framework of ethical brand positioning: A case study of anchor. Journal of Management Research , 6: 72–83.Google Scholar
Shrout, P. E., & Bolger, N. 2002. Mediation in experimental and nonexperimental studies: New procedures and recommendations. Psychological Methods , 7: 422–445.Google Scholar
Schwartz, M. S., & Carroll, A. B. 2003. Corporate social responsibility: A three-domain approach. Business Ethics Quarterly , 13: 503–530.Google Scholar
Sharp, R. R. 2003. Ethical issues in international environmental health research. Environmental Health Perspectives , 111: 1786–1788.Google Scholar
Singh, J. J., Iglesias, O., & Batista-Foguet, J. M. 2012. Does having an ethical brand matter? The influence of consumer perceived ethicality on trust, affect and loyalty. Journal of Business Ethics , 111: 541–549.Google Scholar
Singh, J., & Sirdeshmukh, D. 2000. Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science , 28: 150–167.Google Scholar
Stahl, B. C. 2005. The responsible company of the future: Reflective responsibility in business. Futures , 21: 117–131.Google Scholar
Stanaland, A. J., Lwin, M. O., & Murphy, P. E. 2011. Consumer perceptions of the antecedents and consequences of corporate social responsibility. Journal of Business Ethics , 102: 47–55.Google Scholar
Story, J., & Hess, J. 2010. Ethical brand management: Customer relationships and ethical duties. Journal of Product & Brand Management , 19: 240–249.Google Scholar
UNICEF Malaysia. 2009. Corporate social responsibility policies in Malaysia. http://www.unicef.org/malaysia/Unicef_CSR_Msia_110713_lowres.pdf Google Scholar
Urde, M. 2003. Core value-based corporate brand building. European Journal of Marketing , 37: 1017–1040.Google Scholar
Urde, M. 2009. Uncovering the corporate brand's core values. Management Decision , 47: 616–638.Google Scholar
Urde, M., Baumgarth, C., & Merrilees, B. 2013. Brand orientation and market orientation —From alternatives to synergy. Journal of Business Research , 66: 13–20.Google Scholar
van de Ven, B. 2008. An ethical framework for the marketing of corporate social responsibility. Journal of Business Ethics , 82: 339–352.CrossRefGoogle Scholar
van Rekom, J., Go, F. M., & Calter, D. M. 2014. Communicating a company's positive impact on society—Can plausible explanations secure authenticity? Journal of Business Research , 67(9): 1831–1838.Google Scholar
van Riel, A. C. R., de Mortanges, C. P., & Streukens, S. 2005. Marketing antecedents of industrial brand equity: An empirical investigation in special chemicals. Industrial Marketing Management , 34: 841–847.Google Scholar
Votaw, D. 1972. Genius becomes rare: A comment on the doctrine of social responsibility, Pt. I. California Management Review , 15: 25–31.Google Scholar
Wartick, S. L. 2002. Measuring corporate reputation: Definition and data. Business and Society , 41: 371– 392.Google Scholar
Whetten, D. A., & Mackey, A. 2002. A social actor conception of organizational identity and its implications for the study of organizational reputation. Business and Society , 41: 393–414.Google Scholar
Whysall, P. 2000. Marketing ethics – An overview. The Marketing Review , 1: 75–195.Google Scholar
Wilde, S. J., Kelly, S. J., & Scott, D. 2004. An exploratory investigation into e-tail image attributes importance to repeat, internet savvy customers. Journal of Retailing and Consumer Service , 11(3): 131–139.Google Scholar
Wood, G. 2000. A cross cultural comparison of the contents of codes of ethics: USA, Canada and Australia. Journal of Business Ethics , 25: 287–298.Google Scholar
Xie, Y. H., & Boggs, D. J. 2006. Corporate branding versus product branding in emerging markets: A conceptual framework. Marketing Intelligence & Planning , 24: 347–364.Google Scholar
Zabid, A. R. M., & Alsagoff, S. K. 1993. Perceived ethical values of Malaysian managers. Journal of Business Ethics , 12: 331–337.Google Scholar
Zhao, X., Lynch, J. G., & Chen, Q. 2010. Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research , 37: 197–206.Google Scholar