Consumer action in response to ethical violations by service operations firms

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.