The Role of Ethical Marketing Issues in Consumer-Brand Relationship

Abstract

This study investigated the components of ethical marketing such as product, price, place, and promotion using ethical views on the consumer-brand relationship and perceived product quality in B2C (business to consumer) transactions. It examined whether the quality and consumer-perceived product quality of a consumer-brand relationship affects corporate brand loyalty. Data from a panel of 1,200 consumers who had multiple experiences with a company’s products and brands were used to test the hypotheses, which were verified using structural equation modeling. The results support the proposed research model with statistical significance. A corporate marketing mix strategy with respect to ethical issues was crucial to generate a consumer-brand relationship and perceived product quality, which were influenced by corporate brand loyalty. However, the outcomes associated with each area of ethical marketing practice—through the relationship between the mediating variables and the dependent variable—vary with the business type and other characteristics. Without considering this aspect, it is difficult to generalize the current results. Thus, further analyses are required in future studies. However, this study identifies influential factors for building a relationship that involves ethical marketing practice, relationship quality, and brand loyalty in B2C transactions. Finally, this study suggests implications for companies regarding which aspects of (un)ethical marketing practices should be reinforced to achieve corporate brand loyalty. This study confirmed the significant correlation between the marketing mix strategy from ethical issues, which form the basis of transactions and relationship quality.