DOI: 10.4018/IJABIM.2020010107 International Journal of Asian Business and Information Management Volume 11 • Issue 1 • January-March 2020 107 Ethics of Retailers and Consumer Behavior in E-Commerce: Context of Developing Country With Roles of Trust and Commitment Zhi Yang, Hunan University, Changsha, China Quang Van Ngo, Hunan University, Changsha, China Chung Xuan Thi Nguyen, Hunan University, Changsha, China ABSTRACT Intheeraoftheinformation-communicationtechnologywiththedevelopmentofelectroniccommerce, consumerscanbuyalmosteverythinganywhereandatanytime.Oneofthegreatestbenefitsof e-commercehasbeentheconvenienceandthevastchoiceswhichconsumersgetonline.However, someseriousissuesexistthatimpedeconsumersfromtransactiononline.Theseissueshaveattracted theattentionofmanymarketingresearchersinrecentyears.Inthisresearch,theauthorsfocusonthe impactofconsumers’ethicsperceptionofe-retailerontheirpurchaseintentionandsatisfaction.The authorsalsotrytoclarifytherolesoftrustandcommitmentintherelationshipofethicsonconsumers purchasedecisionandsatisfactionbecauseoftheirimportanceine-commercebutalsotheprivation intheresearchofpreviousstudies.Thedatacollectedfromasurveyof390onlineconsumersin Vietnam.Resultsrevealthattherearesignificantrelationshipsbetweenonlineretailers’ethicsand consumers’purchaseintentionandsatisfactionviathemediationoftrustandcommitment. KEyWoRDS Business Ethics, Commitment, Electronic Commerce, Purchase Intention, Retailer Ethics, Satisfaction, Trust, Vietnam 1. INTRoDUCTIoN Internetthatisoneofthemostremarkableinventionsof20 th century;ithasbeenextensivelyapplied inseveralfieldsinbusinessandinourdailylives.Theinternetwithover3.4billionusersworldwide in2016,comparedto2billionin2010,1billionin2005and0.414billionin2000(Internetworld stats,2016).Inthedevelopingcountries,31%ofthepopulationisonline,comparedwith77%in thedevelopedones(Internetworldstats,2016).E-commerceisoneofthemostimportantInternet applications(Kim,Ferrin,&Rao,2009;Yang,Lin,Chandlrees,&Chao,2009),asithasdramatically revolutionizedthewayweshop,whereshoppingonlineprovidestheunprecedentedflexibilityin termsoftimeandplace.Astheinternetphenomenonbringsaboutthegreatestofconveniences,italso Thisarticle,originallypublishedunderIGIGlobal’scopyrightonJanuary1,2020willproceedwithpublicationasanOpenAccessarticle startingonFebruary1,2021inthegoldOpenAccessjournal,InternationalJournalofAsianBusinessandInformationManagement(con- vertedtogoldOpenAccessJanuary1,2021),andwillbedistributedunderthetermsoftheCreativeCommonsAttributionLicense(http:// creativecommons.org/licenses/by/4.0/)whichpermitsunrestricteduse,distribution,andproductioninanymedium,providedtheauthorof theoriginalworkandoriginalpublicationsourceareproperlycredited.
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Ethics of Retailers and Consumer Behavior in E-Commerce
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DOI: 10.4018/IJABIM.2020010107
International Journal of Asian Business and Information ManagementVolume 11 • Issue 1 • January-March 2020
Ethics of Retailers and Consumer Behavior in E-Commerce:Context of Developing Country With Roles of Trust and CommitmentZhi Yang, Hunan University, Changsha, China
Quang Van Ngo, Hunan University, Changsha, China
Chung Xuan Thi Nguyen, Hunan University, Changsha, China
Despiteincreasingexpectationsfromcustomers,theethicsofe-retailerhasnotbeenadequatelyanalyzedinmarketingliterature.Previousstudiesalsoindicatedthattrustisoneofthemostimportantkeysuccessfactorsine-commerce(Fangetal.,2014;Chen&Dibb,2010;Arman2011;Kvasova,2013). Other research specified the impact of commitment in building and maintaining a goodrelationshipbetweenconsumersandretailersorvendors(Kozlenkova,Palmatier,Fang,Xiao&Huang,2017), (Eastlick,Lotz&Warrington,2006).As consumers’purchase intentions and satisfactionareimportantfactorsine-commerce,thesehaveattractedalotofstudies(Akbar&Parvez,2009;Anderson&Srinivasan,2003;Dimitriades,2006;Limbuetal,2012).
AlmostallpreviousstudiesonCPEOR(Consumers’PerceptionofEthicsofRetailers)havebeenconductedinthecontextofdevelopedcountries(Elbeltagi&Agag,2016)wheretheenvironment(ofconsumerincome,shoppinghabits,legalsystems,etc.)isdifferentfromthoseofdevelopingcountries.Vietnamisoneofthedevelopingcountrieshavingtheeconomicgrowthratewhichisthehighestintheworldinrecentyears(seetheAppendixC).Vietnamisalsoadynamicnationwithmorethan49millionusersin2016incomparisonwithmorethan94.4millionofpopulation,theyearlypenetrationrateabout3.3%(seedetail in theAppendixB).Concerningthee-commerce,58%Internetuserspurchasingonline,with59%isfemale,and37%arestudents.Bute-commerceinVietnamisstillperformingbelowexpectationformanyreasons,suchase-commercelegalsystem,thee-commerceinfrastructure,maturityoftheethicsofe-retailerswhichcurrentlytendtoleadconsumerstodistrust.
Researchonmarketing ethics firstmade its appearance in the late 1960s,with thework ofBartels(1967),whichprovidedthefirstconceptualizationoffactorsinfluencingmarketingethicsdecisionmaking.Andoneoftheclassicalworkinmarketingethicsis“A general theory of marketing ethics”,normallycalledH-Vtheory,of(Hunt&Vitell,1986).Marketingethicshasbeendefinedas“the systematic study of how moral standards are applied to marketing decisions, behaviors, and institutions”(Murphy,Laczniak,Bowie,&Klein,2005).Gaski,1999definedmarketingethicsasethicaljudgmentsapplicabletodecisions,applicationsandattitudesofmarketing.
Inthecontextofarisingethicalproblemsinmarketingandtheincreasingconsumerperceptionofethics,therearemanystudiesthathavebeencarriedoutaboutthemarketingethicsandethicaldecisionmaking(Hunt&Vitell,1986),(Hunt&Vitell,2006),(Yangetal.,2009).Masonaddressedfour ethical issues in the information age: privacy, accuracy, property, and accessibility (PAPA)(Mason,1986).(Radin,Calkins,&Predmore,2007)andlistedethicalissuesine-commerceincludingprivacy,securityconcerns,websiteadvertising,cybersquatters,onlinemarketingofchildren,conflictsofinterest,andmanufacturerscompetingwithintermediariesonline.
Thecommitmenthasbeendescribedinmanywaysanditcouldmeandifferentthingstodifferentpeople.Moormanetal.(1992)definedrelationshipcommitmentasanenduringdesiretomaintainvaluedrelationship(Moorman,Zaltman,&Deshpande,1992).Businesspartnersvaluetrust-basedrelationshipveryhighly, and tend to commit themselves to such relationship (Hrebiniak, 1974),(Moormanetal.,1993),(Garbarino&Johnson,1999).Thetrust-commitmentinteractionhasalsobeendemonstratedby(Morgan&Hunt,1994).
Thus, trust and commitment are at the centerofourConceptual researchmodel,where thetrust-commitmenttheoryactasenablersintherelationbetweenCPEORandconsumerspurchaseintentionandsatisfaction.
2.3. The Nature of Consumers’ Perceptions of Ethics of online Retailers (CPEoR)Itishighlyimportanttogainclarityonhowconsumerstendtoperceivee-retailers’ethicsperformance.Inthisresearch,CPEOR,isdefinedasconsumers’perceptionsabouttheintegrityandresponsibilityofthecompany(behindthewebsite)initsattempttodealwithconsumersinasecure,confidential,andhonestmannerthatultimatelyprotectsconsumers’interest(SergioRoman,2007),whileRoman2007proposedameasurescaleofCPEORthatincludesfourcomponents-security,privacy,non-deceptionandfulfillment.
2.3.1. SecurityMoststudiessuggestedsecurityasthemostimportantfactorofe-retailerethics(Belanger,Hiller,&Smith,2002),(Shergill&Chen,2005).Inane-commercecontext,securityreferstoconsumers’perceptionsabouttheprotectionofonlinetransactionandfinancialinformationfromunauthorizedaccess(SergioRoman,2007);thatis,thefinancialandpersonal-datasecurity(Janda,Trocchia,&Gwinner,2002).Earlierstudieshavealsosuggestedthattheconsumershavecomplicatedconcernsabout the risk of providing their financial and personal information to e-retailers (Miyazaki &Fernandez,2001).Ife-retailersmanagecustomerdatacarelessly,orpurposefullyleak,orputforwardtheconsumerinformationtootherretailers,itcanmakeconsumerstoperceivetheretailersnegatively.
2.3.2. PrivacyPrivacy in e-commerce is defined as consumers’ perceptions about the protection of individualinformationontheinternet(Bart,Shankar,Sultan,&Urban,2005)orthewillingnessofconsumersto share information over the internet (Belanger et al., 2002). Privacy is an important constructine-commerce(Shergill&Chen,2005;Jones,1991;Stead&Gilbert,2001)becauseconsumerssharepersonalandfinancialinformationwithe-retailers,expectingconfidentialtreatmentoftheirinformation.Past studieshave shown that consumershaveexperiencede-retailers’practices thatencroachedontoconsumers’privacy(Taylor,Vassar,&Vaught,1995).Paststudiesalsoshowedtheimportantrolesofprivacyine-commerce,particularlyinwinningconsumers’loyalty,gainingtrustinanonlineretailer(Lauer&Deng,2007),andgainingsatisfactionwiththewebsiteofonlineretailers(SergioRoman,2007).
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onlineserviceproviderusesdeceptiveormanipulativepracticeswiththeintenttopersuadeconsumerstopurchase thewebsite’sofferings (SRoman,2010).Deception, in thecontextofmarketing, is‘‘unethicalandunfairtothedeceived’’(Aditya,2001),‘‘theexaggerationofthefeaturesandbenefitsofaproduct’’and‘‘sellingitemsthroughhigh-pressuresellingtechniques’’ascommonexamplesofdeceptiveormanipulativetactics(Román&Ruiz,2005;Ramsey,Marshall,Johnston,&Deeter-Schmelz,2007;Riquelme&Román,2014).
2.3.4. FulfillmentFinally,fulfillmentreferstoaconsumertrustandbeliefthatanobligationwillbefulfilled.Consumersexpect e-retailers to act in consumers’ interest. This relates to the price on the site of retailer(SergioRoman,2007),totheavailabilityanddeliveryoftheproductsordered,totheconsistencyof performance and dependability of e-retailer (Parasuraman, Zeithaml, & Malhotra, 2005). Ine-commerce,itisvitaltomakeconsumerstotrustthatacompanyisgoingtoperformwhatitpromisestodo(Wolfinbarger&Gilly,2003).Fulfillmentrevealstheconsistencyandcredibilityofaretailer(Roman,2007),especiallywhenconsumershavetowaitsomedaysbeforetheycanreceivetheproductwhichtheyshoponline.Thisiswhyhandlingandshippingoftheproducts,orderfulfillmenthasbeenchallengingtoonlineretailers(Reynolds,2000).
3. CoNCEPTUAL MoDEL AND HyPoTHESIS
Based on the literature review above, this research formulated the Conceptual Model andhypothesis(Figure1).
3.1. Hypothesis3.1.1. CPEOR Effect on Trust and CommitmentAs mentioned earlier, CPEOR in this model considers four components: security, privacy, non-deceptionandfulfillment.Letusunderstandhowbusinesspracticesandhandlingofthesedimensions’shapee-retailers’trustworthiness,andcommitment.
Trustisanindividual’s,orafirm’sethical-basedbehavioralexpectationofanotherindividualoranotherfirmwithwhomthereisarelationofaneconomicpartnershiporaneconomicexchange(Hosmer,1995).Accordingly,ethicalbehaviorandtrustareinseparableconceptsthusbuildingtrustrequires ethicalbehavior. (Rao&Singhapakdi, 1997).Studieshave shown that ethical elementssuchastrust,privacy,andsecurityareantecedentsofperceivedtrustbythecustomersofe-retailers(Selnes,1998),(Pollach,2005).
Figure 1. Conceptual model
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3.1.2. Trust and Commitment Inter-RelationshipTrustisconsideredcentraltoe-commercerelationships.Trustmaybeinstrumentaline-commercetransactions; it is easily affected by commitment performance, which in turn affects continuedpurchasingandloyaltybehaviors(Urban,Sultan,&Qualls,2000).Commitmentisconceptualizedasoccurringwhenanexchangepartnerputsforthmaximumeffortstomaintainavaluedrelationshipwithanotherparty,andinturn,positively(ornegatively)affectsconsumers’propensitytostay(orleave)therelationship(Morgan&Hunt,1994).Vastliteraturerecognizestrustasaprerequisitetobuildingcustomerrelationships,andasaprecedingstateforthedevelopmentofcommitment(Garbarino&Johnson,1999),(Moormanetal.,1993).
3.1.3. Trust and Consumer BehaviorsPurchaseintentionisdefinedinthisstudyasabuyer’sintentiontopurchasefromasellerin e-commerce. According to the Theory of Planned Behavior (Ajzen, 1991), behavioralintentionisthemostinfluentialpredictorofbehavior.Trustisdefinedasthebelief,feelingorexpectationfrompartner’sexpertise,reliabilityandintentions(Cater&Zabkar,2009)inallrelationalexchanges.Inaddition,trustisnotmerelybasedonasingleexchangeepisode.It is established through repetitive interactionsbetweenbothparties inwhich thebuyersperceive the sellers to be reliable, competent, truthful, unbiased, liable, and benevolent(Mukherjee&Nath,2007).Moreover,customer trustalsohasapositiveconnectionwithalow-pressuresellingandhonestactionswhicharepartsofethicalsalesbehaviors.Trust
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is one of the fundamental variables that are essential to establishing long term relationswith customers and it transfers the focal point of the firm to the maintenance of theserelations(Chiou&Droge,2006).(Limbuetal.,2012)concludedthattrusthassignificanceonpurchase intention.Yangetal.,2014alsoconcluded that trusthaspositive impactonconsumersatisfaction(Fangetal.,2014).
The fundamental principles upon which relationship marketing is based, are mutualvalue creation, trust, and commitment; the greater the level of consumer satisfactionwiththerelationship–notjusttheproductorservice–thegreaterthelikelihoodthattheconsumer will be loyal to the company providing the service or the product (Grönroos,1993).Themainobjectiveofrelationshipmarketingistoachievehighlevelsofconsumersatisfaction through collaboration of the parties involved. Satisfaction is considered as apositiveemotionalreactionbasedonallaspectsoftherelationshipbetweentheconsumerandthewebsite(Akbar&Parvez,2009).Inthisstudy,consumersatisfactionisdefinedasthesatisfactionofconsumerswith thewebsitesofonlineretailers.Previousstudiesalsoindicated that trust is an importantof consumer satisfaction ine-commercecontext (Lee&Lin,2005;Chen,2012;Fang,2011;Pappas,2014;Kimetal.,2009;Mukherjee&Nath,2007;Pappas,Pateli,Giannakos,&Chrissikopoulos,2014).
3.1.4.1. Commitment and Purchase IntentionIne-commerce,relationshipsarebuiltonthebasisofmutualcommitment(Berry&Parasuraman,2004).Commitmenthasbeenshowntobepositivelyrelatedtofavorableintentionssuchaspurchaseintention,re-purchaseintention(Musa,Pallister,&Robson,2005).Acommittedconsumerhasanintentiontomaintainarelationshipwithaparticularretailerthatisconfirmedbymanyresearchers(Garbarino&Johnson,1999;Park&Kim,2003).
So, the relationship between commitment and consumer purchase intention ishypothesizedas:
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4. METHoDoLoGy AND MEASUREMENT
4.1. Data Collection and SamplingThedataforthisresearch,wascollectedviaanon-linesurveyonVietnamonlineconsumersthroughGoogleform;Googleformisbelievedtobemoreeffectiveinreachingcustomersshoppingonlineand,indeterminingthecharacteristicsofpotentialparticipants(Roman,2007).Student-consumershavingboughtonlineduringthelast3months,formthesampleofthisstudy.Datawascollectedfromstudentsin2regionsinVietnam:HanoiUniversityofIndustry(Northern),HoChiMinhUniversityofIndustry(Southern).Studentsampleshaveoftenbeenusedinonlineshoppingresearchbecausestudentsarecomputer-literate,havinglessertroublesinusingnewtechnology.Theyarealsopotentialconsumersofelectricalgoodsandtheir technologicaladvancesandinnovativenessbetterqualifythemasapropersampleforonlineshoppingresearch(Yoo&Donthu,2001).Previousstudiesine-commercewhichhaveconducted theirsurveysbyemployingaconvenientsamplingapproach,werefoundtobevalidundertwoconditions:thestudyisexploratoryinnatureand,theitemsonthequestionnairearepertinenttotherespondentswhoanswerthem(Ferber,1977).
DiscriminatevalidityisappointedwhentheamountofAVEindexforeverystructureismorethancorrelationcoefficientsquareof thatstructure than theotherstructures (Fornell&Larcker,1981).TheamountofAVEindexrelatedtoeverystructureisgreaterthancorrelationcoefficientsquareofthatstructure.
Cronbach’s Alpha (CA) coefficient and Composite Reliability (CR) are used for reliabilitymeasurementthatshouldbemorethan0.07.Table2showedthatallofCAandCRcoefficientsaregreaterthan0.07.
4.4. Measurement Model4.4.1. The Results of Hypothesis TestingFortestinghypothesis,theauthorappliesstructuralequationmodelingandusetwosoftwarepackageSPSSandSmartPLS.TheresultsofhypothesistestingbasedonstructuralequationmodelingareshowninFigure2.Inthisfigureaccordingtothet-valuethatisshownintherelationshipsbetweenvariables,allhypotheseshavebeenconfirmedin95%confidencelevel.
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The thirdaimis to test themoderatingrolesof trustandcommitment in the relationshipofCPEORandpurchaseintentionandsatisfaction.Thefindingsonceagainconfirmedtheir(trustandcommitment)roles.Thatmeansine-commerceconsumertrustandsatisfactionarecrucial.However,itisimportanttohighlightthatthisresearchdidnottestthedirecteffectofCPEORonpurchaseintentionandsatisfactionlikesomepreviousresearches((Román&Cuestas,2008;Limbuetal.,2011).
5.2. Theoretical ImplicationsThisresearchcontributestotheliteratureinthefollowingways.Firstly,ittestedthemultidimensionalofCPEORine-commerceofVietnam–adevelopingcountry.Inthisresearch,securityandprivacyare distinct in term of discriminant validity because some previous researchers tend to collapsethesetwoconceptsintoone((Parasuramanetal.,2005;Wolfinbarger&Gilly,2003).Secondly,thisresearchconfirmedtheimpactsofCPEOR’sfourcomponentsonconsumertrustandcommitment.ThisfindingcanbehelpfulinthefutureforothersresearchesintermoftheimportantroleofCPEORine-commerce.Thirdly,thefindingsfurtherexpandtheliteratureontheapplicationoftheTrust-Commitment theory ine-commerce ingeneral,and inparticularon theethicsofe-retailer.Thisresearchpositivelyconfirmedconsumertrustplaysapositiveundeniableroleinimprovingconsumercommitment,consumerpurchaseintentionandsatisfaction.
5.3. Managerial ImplicationsEthics is more and more important in the business, particularly in e-commerce because of thefacelessnessbetweentheretailerandconsumers.Goodperformanceinethicsmeansthate-retailerswhowinconsumers’trustandconsistentlydelivercommitment,tendtomaintainalong-termrelationship.Throughthemoderationoftrustandcommitment,e-retailers’ethicscansteeranddriveconsumerintentionstopurchase.Thisisoneofthemostimportantobjectivesofallretailers,vendorsand/orcompanies,particularlyinthecontextwheretherearefiercecompetitions.E-retailers’trustworthinessandconsistentlytoperform(meetpurchaseobligations)willundeniablyleadtoconsumersatisfaction,whichistheultimategoaline-commerce.
5.4. Limitation and Future Research DirectionBesidesthisresearch’scontributions,thisresearchhassomelimitationswhichneedstobehighlighted.Firstly,thisresearchhasselectedaconvenientsamplewherethemainparticipantsarestudents.Futureresearchcanuse randomsamplingofgeneral consumers.Secondly, this researchonlyconsiderssomedimensionsandconsequencesofe-retailers.Futureresearchcanextendtootherconsequencessuchasconsumer’sriskperceptionandalsotoitsantecedentssuchasreligionandculture.Thirdly,theauthorhascollecteddataonlyfrominternetshoppers,andnot frominternetnon-shoppers.Sofuture researchcan involve thenon-shoppers togain insights into thisgroup’sbehaviors intopurchasing(ornotpurchasing)onlineine-commerce,orperhapsintosomeotherrelevantfactorstheymaydisclose.Fourthly,therelationshipbetweenthetwoconsequences(purchaseintentionandsatisfaction)hasnotbeenevaluatedyetinthisstudysointhefuture,scholarscandeepenittobetterunderstandconsumers’behavior.Lastly, this researchdidnotstresson theculture,but it isveryimportanttounderstandingconsumerbehaviorwithrespect,orinrelation,tothisrespect.So,itisyetotherdirectionforfutureresearch.
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