Ethical consumerism is gaining importance as consumers are becoming increasingly concerned about brands' moral intentions and social and legal practices. Hence, in a quest to advance the current application of ethics in branding, this study substantiates literature by investigating consumer-perceived brand ethicality's (CPBE) role in affecting psychological, affective and behavioral responses of consumers (i.e. psychological brand ownership (PBO), brand commitment and willingness to pay a price premium (WPPP). Further, the authors test self-congruence as the boundary condition for CPBE.
Online survey method resulted in 408 responses, and the data were analyzed using structural equation modeling (SEM).
CPBE emerged as a predictor for PBO, brand commitment and WPPP. However, counterintuitively, self-congruence failed to reflect any moderating effect on the relationships between CPBE and PBO and CPBE and brand commitment.
Brands are encouraged to indulge in and reflect ethical practices to generate favorable consumer responses, i.e. PBO, brand commitment and WPPP.
Based on the ethical and psychological ownership theories, the investigation adds to the scholarship on CPBE and its outcomes. Arguably, it remains the first study to document the linkage between CPBE and PBO.
