Consumer action in response to ethical violations by service operations firms: The impact of heterogeneity

Abstract

Purpose

The purpose of this study is to examine whether individual demographic and socio-cultural factors affect actions taken by consumers in relation to ethical violations and failure (or perceived ethical violations and failure) by service operations firms.

Design/methodology/approach

Data collection was undertaken over a two-year period, from 2011 to 2013, and involved sampling 3,155 respondents from 19 countries. Data analysis was undertaken utilizing hierarchical linear modelling (HLM).

Findings

Findings suggest that although both individual demographic factors (age and gender) and societal differences do affect ethical actions taken by service consumers, inter-societal cluster variations have a more significant effect on the ethical action than individual demographic differences do.

Originality/value

For service operations firms, the study findings offer evidence on the need for constant readjustment of service attributes in line with the ethical dispositions of the different demographic and socio-cultural clusters within the consumer base.

Citation

Chipulu, M., Ojiako, U. and Marshall, A. (2016), "Consumer action in response to ethical violations by service operations firms: The impact of heterogeneity", Society and Business Review, Vol. 11 No. 1, pp. 24-45. https://doi.org/10.1108/SBR-09-2015-0052