In the current socioeconomic environment, brands increasingly need to portray societal and ethical commitment at a corporate level, in order to remain competitive and improve their reputation. However, studies that relate business ethics to corporate brands are either purely conceptual or have been empirically conducted in relation to the field of products/goods. Thus, the purpose of this article is to study, at a corporate brand level and in the field of services, the effect of customer perceived ethicality of a brand on brand equity. The model is tested by structural equations, using data collected for eight service categories by means of a panel composed of 2,179 customers. The test of measurement equivalence between these categories is conducted using generalizability theory. Confirmatory factor analysis marker technique is applied in order to check for common method variance. The results of the hypothesized model indicate that customer perceived ethicality has a positive, indirect impact on brand equity, through the mediators of brand affect and perceived quality. However, there is not empirical evidence for a direct effect of customer perceived ethicality on brand equity.

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Sierra Olivera, Vicenta; Iglesias Bedós, Oriol; Markovic Markovic, Stefan; Singh, Jatinder

Does ethical image build equity in corporate services brands? The influence of customer perceived ethicality on affect, perceived quality, and equity

09/2017
In the current socioeconomic environment, brands increasingly need to portray societal and ethical commitment at a corporate level, in order to remain competitive and improve their reputation. However, studies that relate business ethics to corporate brands are either purely conceptual or have been empirically conducted in relation to the field of products/goods. Thus, the purpose of this article is to study, at a corporate brand level and in the field of services, the effect of customer perceived ethicality of a brand on brand equity. The model is tested by structural equations, using data collected for eight service categories by means of a panel composed of 2,179 customers. The test of measurement equivalence between these categories is conducted using generalizability theory. Confirmatory factor analysis marker technique is applied in order to check for common method variance. The results of the hypothesized model indicate that customer perceived ethicality has a positive, indirect impact on brand equity, through the mediators of brand affect and perceived quality. However, there is not empirical evidence for a direct effect of customer perceived ethicality on brand equity.
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Does ethical image build equity in corporate services brands? The influence of customer perceived ethicality on affect, perceived quality, and equity
Sierra Olivera, Vicenta; Iglesias Bedós, Oriol; Markovic Markovic, Stefan; Singh, Jatinder
Journal of Business Ethics
Vol. 144, nº 3, 09/2017, p. 661 - 676

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