The influence of the ethics of E-retailers on online customer experience and customer satisfaction

Abstract

The COVID-19 pandemic and the lockdown pushed people to buy more online. With the increase in online shopping, there was also an increase in ethical issues with electronic retailers resulting from problems with products, misleading price practices, lack of customers’ personal and financial data protection, non-delivery of goods, and misleading advertising. This study aimed to determine whether consumers’ perceptions of e-retailers’ ethics influence online customer experience and satisfaction when purchasing products and services. A research model was developed based on the literature on ethics in e-commerce. To fulfill the objective, a research model on consumer perceptions of ethics in online retailing was tested based on answers of 501 Brazilian online shoppers. Data were gathered through an online questionnaire and analyzed using structural equation modeling with an estimation of minimum least squares. The results indicated significant relations between the e-retailer’s ethics, the online experience, and customer satisfaction with the mediation of ethical beliefs, suggesting that the e-retailer’s ethics can potentially stimulate a good online consumer experience and satisfaction when purchasing on the internet and may contribute to the relationship between the consumer and the e-retailer. Furthermore, ethical beliefs can mediate these relations, collaborating with the effect of e-retailers’ ethics on the consumer’s experience and satisfaction. These results represent an advance in the study of new ethical dimensions in electronic retail, which currently are reduced to security and privacy issues. In practice, this study resulted in new knowledge about ethical practices that can guide electronic retailers in the adoption of new customer prospecting strategies. It also highlights the importance of improving regulations that prevent certain behaviors from happening.