Working Papers,
Copenhagen Business School, Department of International Economics and Management

Abstract: While there have been many studies of the ethical behavior of managers, little research investigated the ethical beliefs and ideologies of consumers. Moreover, even less is known about the relationship between consumer beliefs and ideology and purchasing behavior. The present study investigates the extent to which consumers punish or reward what they perceive as either a firm`s ethical or unethical behavior. The research model was tested on samples of Israeli and Turkish respondents. The results indicate that personel economic benefit, ideology (idealism versus relativism), economic cost to others and locus of control explain consumer reation to ethical, purchasing dilemmas. Cultural differences between the two populations studies also contributed to an understanding of different behavior outcomes.

Keywords: Ethics; Management; Consumer ideologies; Purchasing behavior; Consumer lobbying

25 pages, June 7, 2000

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