Consumer perceived ethicality of the retailer and shopping behaviour: the moderating role of consumer’s ethical beliefs

Consumers are increasingly prone to make their shopping choices also considering companies’ ethics. However, the positive effects of an ethical approach in running a company’s business still remain largely undefined, especially in the retailing sector where this orientation is in its infancy. To assess the possible benefit of retailer’s ethicality, we propose a study aimed at investigating how the consumer perceived ethicality of the retailer (CPER) affects customer loyalty – conceived in its cognitive-behavioural link – and word-of-mouth, when the moderating role of consumer’s ethical beliefs is considered too. Applying structural equation modelling to data collected through an online survey administered to a sample of shoppers, the proposed model is verified. Results show that CPER affects both repurchase intentions and word-of-mouth, while consumers’ ethical beliefs positively moderate the relationship between consumer perceptions of the ethics of the retailer and positive word-of-mouth but not the link between CPER and repatronage behaviour. Findings also prove that CPER indirectly develops behavioural loyalty to the retailer, through the mediating role of repurchase intentions. In so doing, the study contributes to the consumer behaviour and customer loyalty literature. It also contributes to managerial and practise knowledge proving the important role performed by the retailer’s ethicality in developing customer loyalty.