A new ethical purchasing behavior stage model: An application of 3 psychological – behavioral theories and exloratory analysis of ethical expectation’s effect

Abstract

To be ethical or not to be, this shall be a question in which customers hold on to the hope that the brands will say yes to their delights. Previous researches have shown that there is a crucial change in consumer behavior when they are more interested in the social ethics, it is not just only ethical products but also the ethical journey. This study aims to analyze and develop a model of the decision-making stages of ethical purchasing behavior with newly added variables, based on the combination of three applicable psychological-behavioral theories used in a retail context: Rest (1986)’s four-component model, Prospect Theory, and the SOR Model. An online survey was conducted with customers who have previously made ethical purchases. A total of 306 online responses were collected and analyzed using the partial least squares structural equation model for the quantitative study. The results of this study show a significant knock-on effect among environmental and social concerns, ethical judgments, moral obligations, ethical expectations and ethical purchasing behavior. These variables has assisted to formally and successfully established a new ethical purchasing stage model. In addition, the findings point out how the role of CSR and promotion of sustainable consumption positively affects the formation of ethical expectations, thereby enhancing customers' ethical consumption. Both theoretical and practical implications were discussed in the paper.