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An Eye for an Eye: Investigating the Impact of Consumer Perception of Corporate Unfairness on Aberrant Consumer Behavior

Insurance Ethics for a More Ethical World

ISBN: 978-0-7623-1333-4, eISBN: 978-1-84950-431-7

Publication date: 20 March 2007

Abstract

This paper examines why ordinary people engage in aberrant consumer behavior (ACB), and pays particular attention to the extent to which consumer perceptions of corporate ‘unfairness’ lead to a response in kind. The study examines five ethical scenarios including insurance claim exaggeration and software piracy, using data from 344 UK consumers. Ajzen's theory of planned behavior (TPB) provides an initial analytical framework. The study also adopts an additional variable, perceived unfairness, referring to the extent to which an actor is motivated to redress an imbalance perceived as unfair.

In comparison to TPB, the study reveals different components of ACB. Furthermore, analysis of variance indicates that consumer perceptions of unfairness by insurance companies provide a significant reason for claim exaggeration. This suggests that ACB is one form of market response to unfair corporate performance. Thus it is argued that an examination of ACB will not only help to understand which ethical aspects of corporate performance might be perceived as unfair, but also to evaluate the extent to which it contributes to a negative perception of particular industries and corporations. The closing discussion considers how a consumer negative response to corporate performance might relate to pricing, product attributes and customer relationships.

Citation

Fukukawa, K., Ennew, C. and Diacon, S. (2007), "An Eye for an Eye: Investigating the Impact of Consumer Perception of Corporate Unfairness on Aberrant Consumer Behavior", Flanagan, P., Primeaux, P. and Ferguson, W. (Ed.) Insurance Ethics for a More Ethical World (Research in Ethical Issues in Organizations, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 187-221. https://doi.org/10.1016/S1529-2096(06)07010-6

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited