This paper expands the definition of gray-marketing to include some ethically problematic marketing activities and techniques used in personal selling in China. Based on this, a conceptual model of gray-marketing for a particular type of selling in which both the sellers and the buyers exhibit problematic ethics in an exchange and the associated hypotheses are developed and tested. The findings show that, first, the respondents have different ethical evaluations of different marketing practices used in personal selling such as giving and (...) accepting gifts, buying and accepting meals, and offering and accepting kickbacks. Some of these practices may not be considered unethical. Second, in terms of ethical assessment, gray-marketing practiced by buying agents is more unacceptable than when practiced by sales agents. Third, a person's ethical evaluation of gray-marketing behavior, empathy for gray-marketing, and belief that gray-marketing has serious consequences, significantly affects his inclination to use gray-marketing. This paper concludes with a discussion of some possible applications of our research findings. (shrink)

Leaders play a critical role in setting the tone for ethical climate in organizations. In recent years, there has been an increased skepticism about the role played by corporate executives in developing and implementing ethics in business practices. Sales and marketing practices of businesses, particularly in the pharmaceutical industry, have come under increased scrutiny. This study identifies a type of leadership style that can help firms develop an ethical climate. Responses from 333 salespeople working for a North American subsidiary of (...) an international pharmaceutical company were used to analyze the impact of instrumental leadership on ethical climate. We also examined the effect of ethical climate on effort, satisfaction with the supervisor, and job satisfaction. Managerial implications are provided. (shrink)

Socially responsible business and ethical behaviour of companies have been of interest to academia and practice for decades. But the focus has almost exclusively been on large corporations while small- and medium-sized enterprises (SME) have not received as much attention. Thus, this paper focuses on socially responsible business practices of SME entrepreneurs or owner–managers in Germany. Based on the assumption that decision-makers in SMEs are the central point where all business activities start, members of a German entrepreneurs association were approached (...) in the course of a qualitative and quantitative survey. They were asked to assess in what way their social responsibility is expressed in specific management practices towards selected stakeholder groups. These practices in turn were assumed to result in perceived positive reactions of the respective stakeholders and subsequently to positively influence the firm's financial performance, i.e. cost reductions and increase in profits. In the paper, a research model is presented that elaborates the relationship between an SME executive's social responsibility and the value creation of a firm, i.e. whether (personal) values create (economic) value. It was found that socially responsible management practices towards employees, customers and to a lesser extent society have a positive impact on the firm and its performance. As such, values can create additional value. (shrink)

Socially responsible business and ethical behaviour of companies have been of interest to academia and practice for decades. But the focus has almost exclusively been on large corporations while small- and medium-sized enterprises (SME) have not received as much attention. Thus, this paper focuses on socially responsible business practices of SME entrepreneurs or owner–managers in Germany. Based on the assumption that decision-makers in SMEs are the central point where all business activities start, members of a German entrepreneurs association were approached (...) in the course of a qualitative and quantitative survey. They were asked to assess in what way their social responsibility is expressed in specific management practices towards selected stakeholder groups. These practices in turn were assumed to result in perceived positive reactions of the respective stakeholders and subsequently to positively influence the firm's financial performance, i.e. cost reductions and increase in profits. In the paper, a research model is presented that elaborates the relationship between an SME executive's social responsibility and the value creation of a firm, i.e. whether (personal) values create (economic) value. It was found that socially responsible management practices towards employees, customers and to a lesser extent society have a positive impact on the firm and its performance. As such, values can create additional value. (shrink)

Demographic differences among consumer groups have become increasingly important to the development of marketing strategies. Marketers depend heavily on the sales force to implement strategies at the consumer level and, not surprisingly, different groups may view the salesperson’s role differently. Unfortunately, unethical sales practices targeted at various consumer groups, and especially at seniors, have been utilized as well. The purpose of this study is to provide initial empirical evidence of the ethical ideological make-up of four age segments outlined by Strauss (...) and Howe (1991, Generations: The History of America’s Future 1584–2069, Morrow, New York) and to examine the propensity for these groups (seniors, in particular) to respond differentially to potentially unethical sales tactics. Data were collected from 179 respondents representing the four generational age groups. MANOVA revealed that the seniors in this study were distinct with respect to ethical ideology and less accepting of unethical sales tactics. Managerial implications are discussed for sales organizations to maximize their effectiveness across consumer groups. (shrink)

This study proposes a model that explains the ethical behavior of automobile salespeople in terms of their ethical perception, legal perception, method of compensation (commission-based or salary-based), age, and education. The model is estimated by using five scenarios that involve ethical issues commonly found in the automobile industry and responses from 184 automobile salespeople in a mid-Atlantic metropolitan area. The findings suggest that ethical perception is the most important determinant of ethical behavior. Also, method of compensation is a major determinant (...) in four of five scenarios, and legal perception in two out of five scenarios. However, age and education are not significantly related to ethical behavior. A discussion of the results, limitations, and implications is presented for managers. (shrink)

This research study sought to identify whether there is a relationship between ethical perceptions and culture. An examination of the cultural variables suggests that there is a relationship between two of Hofstede's cultural dimensions (i.e., Uncertainty Avoidance and Individualism) and ethical perceptions. This finding supports the hypothetical linkage between the cultural environment and the perceived ethical problem variables posited in Hunt and Vitell's General Theory of Marketing Ethics (1986).

Multi-national corporations (MNCs) have been criticised for not behaving ethically in some situations, which could have a negative effect on their reputation. This study examines the ethics of a large MNC in its relationship with its suppliers. A brief literature review of corporate identity, business ethics and buyer–supplier relationships is undertaken. The views and perceptions of the buying staff and the suppliers to a large South African MNC are obtained and discussed. The results indicate that this MNC has a good (...) corporate reputation among both its suppliers (an important stakeholder) and its own buying department. The existence and implementation of formal codes of ethics was found to be a necessary, but not sufficient condition for good ethical practice. Candid relationships with suppliers emerged as a second and important factor. Ethical perceptions of buyers by suppliers are driven by the management of corporate identity, through the elements of ethical standards and candid relationships. We present a model of corporate identity/reputation in Buyer–Supplier Relationships. (shrink)

Despite the widespread agreement that the ontology of the marketing discipline is exchange, marketing ethics researchers have largely adopted a monadic viewpoint of ethical decision making. In this research, an interactionist approach is adopted in order to introduce a dyadic perspective of un/ethical decision making. The dyadic model includes each channel member's individual, situational and decision process factors linked by relationalism, an emerging paradigm in marketing channels. Relationalism is represented as a discriminating variable between perceived ethical dilemma and decision behaviour. (...) Finally, a number of theoretical propositions are presented and future research directions are discussed. (shrink)

In a sample of 615 Belgians a model for fair trade buying behaviour was developed. The impact of fair trade knowledge, general attitudes towards fair trade, attitudes towards fair trade products, and the perception of the quality and quantity of fair trade information on the reported amount of money spent on fair trade products were assessed. Fair trade knowledge, overall concern and scepticism towards fair trade, and the perception of the perceived quantity and quality of fair trade information, influence buying (...) behaviour directly and indirectly through product attitudes. Interest in fair trade products, price acceptability and product liking have a significant impact on fair trade buying behaviour. Product interest is the most important variable influencing buying behaviour. Implications for the campaigns of governments and for the marketing strategy of fair trade organisations are offered. (shrink)