The Diogenes Effect in retail buyer information processing

Abstract

The search for an ethical vendor who is honest and trustworthy in the exchange process is conceptualized as the Diogenes Effect, an innovative concept. In the light of this effect, the theoretical framework of the current study's model involved retail buyer responses to vendor persuasive communications. The model was tested by having a sample of retailer buyers complete a survey of information processing in the search for a product and vendor. This study innovatively links vendor communication effects to retailer buyer decision-making and evaluations by incorporating and integrating elements of Elaboration Likelihood Theory. Contributing to theory-building, it was found that when retailer buyers searched for a vendor with an ethical orientation, the result was intensified central processing of information and decreased peripheral information processing. This was especially salient when retailer buyers had greater longevity of professional experience. The next stage, information processing, led to feedback that enabled assessment of vendor trustworthiness. Finally, the research measured the level of fulfillment in the post-purchase phase. In the end, typical outcomes included the generation of favorable expectations of vendor performance, as well as the positive impact of those heightened favorable expectations on greater satisfaction with the value ultimately received from the vendor.