Consumers’ perceptions of online ethics and its effects on satisfaction and loyalty

Purpose – This paper aims to examine the effects of consumers’ perceptions concerning the ethics of online retailers on web site satisfaction and loyalty. Design/methodology/approach – An online survey instrument was administered to a sample of 220 students who were enrolled in various business undergraduate classes at a mid size university located in the southwestern USA. Participants completed a questionnaire based on their latest online purchase. The measurement model and structural relationships were estimated using AMOS 18. Findings – Non-deception, fulfillment, and security are significant predictors of web site satisfaction. Only privacy is related directly with loyalty. While direct effects of fulfillment and non-deception on loyalty are not significant; satisfaction mediates these relationships. Results provide a strong support for the web site satisfaction-loyalty relationship. Practical implications – Internet retailers must address ethical issues surrounding their web sites by protecting financial and personal information, delivering accurate products, and avoiding deceptive practices. Originality/value – The current research is one of few studies in online retailing that examines the relationship between perceived online ethics, satisfaction and loyalty. By offering evidence to prior conflicting results in the literature, a strong association between what consumers perceive as ethical online retailing, their satisfaction and loyalty to online retailers was confirmed.