Perceived Marketplace Influence and Consumer Ethical Action

The present work presents two studies exploring the impact of perceived marketplace influence (PMI) on consumer decisions to engage in ethical marketplace action. Study 1 shows that PMI is associated with positive (negative) word-of-mouth in response to the ethical (unethical) actions of an organization. Study 2 shows that PMI is associated with the purchase of and willingness to pay for ethical products Fair Trade and philanthropy-linked ethical products. Differences emerge between the two dimensions of PMI (PMI Consumer and PMI Organization) based on the hedonic or utilitarian features of the products. Results also show autonomous motivation to mediate the relationship between PMI and ethical intentions. We conclude with discussion of the implications of PMI for policy and consumer well-being.