Moderating Effects of Contextual and Individual Factors on the Relationship between Cultural Precedents and Marketing-Related Norms

Fereshteh Zihagh

doi:10.21272/bel.3(3).39-46.2019

Abstract

This paper discusses the effect of corporate culture precedents (i.e., job satisfaction, training, organizational justice, and ethical leadership) on marketing norms acceptance or violation (i.e., unethical practices of 4Ps) in an organization. In the analysis of behavior precedents, this paper analyzes the subsequent stage that predicts ethical behavior: corporate culture precedents. Moreover, the proposed model encompasses the moderating effects of contextual (i.e., ethical optimism, organizational factors, and industry factors) and individual (i.e., moral philosophies, demography, and personality traits) factors on the relationship between cultural precedents and marketing norms acceptance. Based on the discussions, the paper offers a set of propositions regarding the impacts of cultural precedents on marketing norms and the moderating roles of individual and contextual factors. Investigating the predictors of engaging in unethical acts in 4Ps leaves room for research since the attention to the topic has not been balanced and except for promotion and advertisement, other marketing mix variables (i.e., product, price, and distribution management) have attracted limited research focus. According to the proposed model, managers should focus on job satisfaction, training, ethical leadership and organizational/distributive justice to increase the chance of acceptance of marketing norms in the organization. Managers should also be aware of the role of moderating factors such as demography and personal traits of the people who they work with. By considering these roles, managers can better implement marketing norms in the organization. Keywords: Ethical Culture, Cultural Precedents, Marketing-Related Norms, Individual Factors, Contextual Factors.

Highlights

Organizations utilize codes of ethics to promote ethical behavior
Competition (Vadera et al, 2014; Cai et al, 2009), bonus and commission (Walker et al, 2013), promotion (Pierce and Snyder, 2015), importance of stakeholders (Hunt and Vitell, 1986), public recognition (Adebayo, 2005) are among other organization-related factors that contribute to unethical behavior and in our model are proposed to moderate the relationship between cultural precedents and marketing norms acceptance
We proposed that cultural precedents can lead to the ethical culture of an organization

Summary

Introduction

Organizations utilize codes of ethics to promote ethical behavior. codes of ethics have proved to be quite inefficient in reinforcing ethical behavior. Vitell et al (1993) conclude that ethical climate of organizations does not influence individuals’ acceptance of marketing-related norms If this observation generally holds true, it means that ethical climate of the firms, the way is defined by Vitell et al (1993) and is used in many research, cannot predict specific marketing-related conducts and we cannot readily generalize the current literature’s findings of climate-behavior links to marketing employees with the purpose of explaining their specific (un)ethical conducts. Our model offers the moderating factors (i.e., individual and contextual factors) to understand how the effect of organizational culture on marketing norms can be strengthened or weakened. Organizations can better implement the marketing norms and, as a result, they can move toward success in terms of stakeholders (e.g., customers and employees) satisfaction

Literature Review and Theoretical Perspective

Findings

Conclusions and Recommendations