Does Ethical Image Build Equity in Corporate Services Brands? The Influence of Customer Perceived Ethicality on Affect, Perceived Quality, and Equity

Abstract

In the current socioeconomic environment, brands increasingly need to portray societal and ethical commitments at a corporate level, in order to remain competitive and improve their reputation. However, studies that relate business ethics to corporate brands are either purely conceptual or have been empirically conducted in relation to the field of products/goods. This is surprising because corporate brands are even more relevant in the services sector, due to the different nature of services, and the subsequent need to provide a consistent high-quality customer experience across all the brand-customer interactions and touch-points. Thus, the purpose of this article is to study, at a corporate brand level and in the field of services, the effect of customer perceived ethicality of a brand on brand equity. The model is tested by structural equations, using data collected for eight service categories by means of a panel composed of 2179 customers. The test of measurement equivalence between these categories is conducted using generalizability theory. Confirmatory factor analysis marker technique is applied in order to check for common method variance. The results of the hypothesized model indicate that customer perceived ethicality has a positive, indirect impact on brand equity, through the mediators of brand affect and perceived quality. However, there is no empirical evidence for a direct effect of customer perceived ethicality on brand equity.

How social, environmental, and economic CSR affects consumer‐perceived value: Does perceived consumer effectiveness make a difference?

“…For example, buying a hybrid car not only improves the environment, but also enables savings on fuel. Some works show that CSR is an attribute of brand personality associated with a perception of better quality (Liu, Wong, Shi, Chu, & Brock, 2014;Sierra, Iglesias, Markovic, & Singh, 2017). Some works show that CSR is an attribute of brand personality associated with a perception of better quality (Liu, Wong, Shi, Chu, & Brock, 2014;Sierra, Iglesias, Markovic, & Singh, 2017).…”

“…As defined, utilitarian value is analogous to the notion of the quality-price ratio (Sweeney & Soutar, 2001). Some works show that CSR is an attribute of brand personality associated with a perception of better quality (Liu, Wong, Shi, Chu, & Brock, 2014;Sierra, Iglesias, Markovic, & Singh, 2017). In other words, the holistic perception that the brand is socially responsible can transfer to the product-service level through an increase in perceived quality.…”

The Impact of Consumer Green Behaviour on Green Loyalty Among Retail Formats: A Romanian Case Study

“…Loyalty is behaviour that can be observed and is reflected in consumers' attitudes and the way in which they advertise a company or a product through word-of-mouth recommendation (Garcia de los Salmones et al, 2005). Individuals may prove their loyalty to a company by repurchasing one of its products or services, by remaining immune to the marketing efforts of the other competitors (Sierra et al, 2015), as well as by recommending the company and increasing the frequency of visits and/or the purchased quantity of goods (Dabija and Băbuþ, 2012;Swoboda et al, 2014).…”

Identifying Factors Preventing Sustainable Brand Loyalty among Consumers: A Mixed Methods Approach

“…Concerning the outcomes of brand emotions, some scholars have demonstrated that brand emotion could significantly influence a customer's behavior towards a product. For example, brand emotion influences purchase intention [20], brand equity [21], and brand loyalty [22,23]. Brand emotion also strongly influences brand extension [24].…”