Skip to main content
SpringerLink
Log in

Marketing with integrity: ethics and the service-dominant logic for marketing

  • Conceptual/Theoretical Paper
  • Published:
Journal of the Academy of Marketing Science Aims and scope Submit manuscript

Abstract

This paper examines a tendency within existing marketing scholarship to compartmentalize ethical issues. It also shows how this tendency can cause ethical tensions and conflicts in marketing practice. The emerging service-dominant (S-D) logic for marketing, as proposed by Vargo and Lusch, is explored as an example of an approach to marketing that overcomes this tendency. The S-D logic is found to be a positive development for marketing ethics because it facilitates the seamless integration of ethical accountability into marketing decision-making. Specific recommendations are made for improving the ethical climate in marketing using marketing performance measurement theory and practice.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Notes

  1. However, certain marketing professions such as car salesmen and advertising practitioners are consistently perceived by consumers to exhibit low levels of ethics—e.g. Gallup (2003).

  2. Marketing efficiency is addressed below, where we consider the tension between consumer participation and total system efficiency.

  3. Additional tensions can be identified with other stakeholders such as investors, communities and society at large (Wilkie and Moore 1999).

  4. E.G. 3M, Anheuser-Busch, Dell Inc., and Ford Motor Company. See http://www.globalreporting.org/GRIreports.

  5. Unethical firms who bribe or otherwise gain unfair advantage may themselves cause ethical firms to suffer short-term volatility. However, over the medium and longer term, it would appear that unethical firms are more likely to suffer volatility themselves than inflict it on others.

References

  • Abela, A. V. (2002). When a brand is a promise: Building firm credibility by integrating strategic and ethical aspects of brand management. Doctoral Dissertation, Darden Business School.

  • Abela, A. V. (2003). Additive versus inclusive approaches to measuring brand equity: Practical and ethical implications. Journal of Brand Management, 10(4–5), 342–352.

    Article  Google Scholar 

  • Ambler, T. (2003). Marketing and the bottom line (2nd ed.). London: FT Prentice Hall.

    Google Scholar 

  • Ballantyne, D., & Varey, R. J. (2006). Introducing a dialogic orientation to the service-dominant logic of marketing. In R. F. Lusch & S. L. Vargo (Eds.), The service-dominant logic of marketing: Dialog, debate, and directions. Armonk: M.E. Sharpe.

    Google Scholar 

  • Barwise, P., & Farley, J. U. (2003). Which marketing metrics are used and where? MSI Reports. Cambridge: MSI.

  • Beirne, M. (2002). Fixing a shattered trust. Brandweek, 43(32), 16.

    Google Scholar 

  • Berthon, P., Hulbert, J. M., & Pitt, L. F. (1997). Brands, brand managers, and the management of brands: Where to next? Vol. 97–122. Cambridge: Marketing Science Institute.

    Google Scholar 

  • Bloom, P. N., & Perry, V. G. (2001). Retailer power and supplier welfare: The case of Wal-Mart. Journal of Retailing, 77(3), 379.

    Article  Google Scholar 

  • Boudette, N. E. (2003). BMW’s CEO just says ‘No’ to protect brand. Wall Street Journal (November 26), B1.

  • Bowen, H. R. (1953). Social responsibilities of the businessman. New York: Harper and Row.

    Google Scholar 

  • Bowie, N. E. (1999). Business ethics: A kantian perspective. Malden: Blackwell Publishers.

    Google Scholar 

  • Boyt, T. E., Lusch, R. F., & Naylor, G. (2001). The role of professionalism in determining job satisfaction in professional services: A study of marketing researchers. Journal of Service Research, 3(4), 321.

    Article  Google Scholar 

  • Brenkert, G. G. (1998). Marketing to inner-city blacks: Powermaster and moral responsibility. Business Ethics Quarterly, 8(1), 1–18.

    Article  Google Scholar 

  • Carter, C. R. (2000). Precursors of unethical behavior in global supplier management. Journal of Supply Chain Management, 36(1), 45.

    Article  Google Scholar 

  • Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65, 81–93.

    Article  Google Scholar 

  • Chonko, L. B., & Hunt, S. D. (1985). Ethics and marketing management: An empirical examination. Journal of Businesss Research, 13, 339–359.

    Article  Google Scholar 

  • Chung, C., & Myers, S. L. Jr. (1999). Do the poor pay more for food? An analysis of grocery store availability and food price disparities. Journal of Consumer Affairs, 33(2), 276.

    Article  Google Scholar 

  • Clark, B. H., & Ambler, T. (2000). Marketing performance measurement: Evolution of research and practice. In A. Neely (Ed.), Performance measurement—past, present and future. Cambridge: Cambridge University Press.

    Google Scholar 

  • Corporate Watch. (2005). Iceland: Threatened protestors raise stakes. Retrieved September 6, 2005, from http://www.corpwatch.org/article.php?id=11872.

  • Crane, A., & Desmond, J. (2002). Societal marketing and morality. European Journal of Marketing, 36(5/6), 548–560.

    Article  Google Scholar 

  • Davis, R. (1996). Ethics—marketing ploy, or just the best business proposition? Managing Service Quality, 6(2), 6.

    Article  Google Scholar 

  • Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(4), 37.

    Article  Google Scholar 

  • Day, G., & Montgomery, D. (1999). Charting new directions for marketing. Journal of Marketing, 63, 3–13 (special issue).

    Article  Google Scholar 

  • De Muth, S. (2003). Power driven. The Guardian (November 29).

  • Deutschman, A. (2004). Inside the mind of Jeff Bezos. Fast Company, 85, 52.

  • Drumwright, M. E., & Murphy, P. E. (2001). Corporate societal marketing. In P. N. Bloom & G. T. Gundlach (Eds.), Handbook of marketing and society. Thousand Oaks: Sage Publications Inc.

    Google Scholar 

  • Drumwright, M. E., & Murphy, P. E. (2008). The current state of advertising ethics: Industry and academic perspectives. Journal of Advertising (in press).

  • Dunfee, T. W., Smith, N. C., & Ross, W. T. (1999). Social contracts and marketing ethics. Journal of Marketing, 63(3), 14–32.

    Article  Google Scholar 

  • Eggert, A., & Helm, S. (2003). Exploring the impact of relationship transparency on business relationships: A cross-sectional study among purchasing managers in Germany. Industrial Marketing Management, 32(2), 101.

    Article  Google Scholar 

  • Ferrell, O. C., & Gresham, L. G. (1985). A contingency framework for understanding ethical decision making in marketing. Journal of Marketing, 49(3), 87.

    Article  Google Scholar 

  • Ferrell, O. C., Gresham, L. G., & Fraedrich, J. (1989). A synthesis of ethical decision models for marketing. Journal of Macromarketing, 9(2), 55.

    Article  Google Scholar 

  • Fishman, C. (2006). The Wal-Mart effect. New York: Penguin Press.

    Google Scholar 

  • Fournier, S., Dobscha, S., & Mick, D. G. (1998). Preventing the premature death of relationship marketing. Harvard Business Review, 76(1), 42–44.

    Google Scholar 

  • Freeman, R. E. (1994). The politics of stakeholder theory: Some future directions. Business Ethics Quarterly, 4(4).

  • Gallup. (2003). Public rates nursing as most honest and ethical profession. Retrieved July 19, 2004, from www.Gallup.com.

  • Ghoshal, S. (2005). Bad management theories are destroying good management practices. Academy of Management Learning & Education, 4(1), 75.

    Google Scholar 

  • Guiltinan, J. P., & Gundlach, G. T. (1996). Aggressive and predatory pricing: A framework for analysis. Journal of Marketing, 60(3), 87.

    Article  Google Scholar 

  • Gummesson, E. (2004). On the service-centered dominant logic for marketing. Journal of Marketing, 68, 20–21.

    Google Scholar 

  • Gundlach, G. T., & Murphy, P. E. (1993). Ethical and legal foundations of relational marketing exchanges. Journal of Marketing, 57(4), 35–46.

    Article  Google Scholar 

  • Gürhan-Canli, Z., & Batra, R. (2004). When corporate image affects product evaluations: The moderating role of perceived risk. Journal of Marketing Research, 41(2), 197.

    Article  Google Scholar 

  • Hammonds, K. (2002). Harry Kraemer’s moment of truth. Fast Company, (64), 93–98.

  • Handelman, J. M., & Arnold, S. J. (1999). The role of marketing actions with a social dimension: Appeals to the institutional environment. Journal of Marketing, 63(3), 33–48.

    Article  Google Scholar 

  • Harvey, M. G., & Lusch, R. F. (1999). Balancing the intellectual capital books: Intangible liabilities. European Management Journal, 17(1), 85–92.

    Article  Google Scholar 

  • Hill, K. (2003). Price matching follows online customers' moves. CRM Daily. Retrieved July 29, 2004, from http://www.newsfactor.com/perl/story/20670.html#story-start.

  • Hoeffler, S., & Keller, K. L. (2002). Building brand equity through corporate societal marketing. Journal of Public Policy & Marketing, 21(1), 78.

    Article  Google Scholar 

  • Hof, R. D. (2003). eBay rules: The online marketplace thrives in good times—and bad. BusinessWeek (March 24).

  • Hunt, S. D., Chonko, L. B., & Wilcox, J. B. (1984). Ethical problems of marketing researchers. Journal of Marketing Research, XXI, 309–324.

  • Hunt, S. D., & Vitell, S. J. (1986). A general theory of marketing ethics. Journal of Macromarketing, 6(1), 5.

    Article  Google Scholar 

  • Iansiti, M., & Levien, R. (2004). Strategy as ecology. Harvard Business Review, 82(3), 68.

    Google Scholar 

  • Janda, S., & Seshadri, S. (2001). The influence of purchasing strategies on performance. The Journal of Business & Industrial Marketing, 16(4), 294.

    Article  Google Scholar 

  • Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57(3), 53–70.

    Article  Google Scholar 

  • Kalsow, G., & West, J. (2000). Fingerhut’s pricing strategy. Case study. Charlottesville: Darden Business School.

    Google Scholar 

  • Kaplan, R. S., & Norton, D. P. (2004). Measuring the strategic readiness of intangible assets. Harvard Business Review, 82(2), 52.

    Google Scholar 

  • Karpatkin, R. H. (1999). Toward a fair and just marketplace for all consumers: The responsibilities of marketing professionals. Journal of Public Policy & Marketing, 18(1), 118–122.

    Google Scholar 

  • Klein, N. (1999). No logo: Taking aim at the brand bullies. New York: Picador.

    Google Scholar 

  • Koehn, N. F. (2001). Brand new: How entrepreneurs earned consumers' trust from Wedgwood to Dell. Boston: Harvard Business School Publishing.

    Google Scholar 

  • Kotler, P. (2004). Wrestling with ethics. Marketing Management, 13(6), 30–36.

    Google Scholar 

  • Laczniak, G. R. (1983). “Framework for analyzing marketing ethics.” Journal of Macromarketing, 7–18.

  • Laczniak, G. R. (1993). Marketing ethics: Onward toward greater expectations. Journal of Public Policy & Marketing, 12(1), 91.

    Google Scholar 

  • Laczniak, G. R. (2006). Some societal and ethical dimensions of the service-dominant logic perspective of marketing. In R. F. Lusch & S. L. Vargo (Eds.), The service-dominant logic of marketing: Dialog, debate, and directions. Armonk: ME Sharpe.

    Google Scholar 

  • Laczniak, G. R., & Murphy, P. E. (2006). Normative perspectives for ethical and socially responsible marketing. Journal of Macromarketing, 26(2), 154–177.

    Article  Google Scholar 

  • Lemon, K. N., & Seiders, K. (2006). Making marketing accountable: A broader view. In J. N. Sheth & R. S. Sisodia (Eds.), Does marketing need reform? Fresh perspectives on the future. Armonk: M.E. Sharpe.

    Google Scholar 

  • Lusch, R. F., & Vargo, S. L. (Eds.) (2006). The service-dominant logic of marketing: Dialog, debate and directions reflections, and refinements. Armonk: M.E. Sharp.

  • Menon, A., & Menon, A. (1997). Enviropreneurial marketing strategy: The emergence of corporate environmentalism as market strategy. Journal of Marketing, 61(1), 51.

    Article  Google Scholar 

  • Mittal, V., Ross, W. T. Jr., & Baldasare, P. M. (1998). The asymmetric impact of negative and positive attribute-level performance on overall satisfaction and repurchase intentions. Journal of Marketing, 62(1), 33.

    Article  Google Scholar 

  • Miyazaki, A. D., Brumbaugh, A. M., & Sprott, D. E. (2001). Promoting and countering consumer misconceptions of random events: The case of perceived control and state-sponsored lotteries. Journal of Public Policy & Marketing, 20(2), 254.

    Article  Google Scholar 

  • Murphy, P. E. (1999). Character and virtue ethics in international marketing: An agenda for managers, researchers, and educators. Journal of Business Ethics, 18, 107–124.

    Article  Google Scholar 

  • Murphy, P. E., & Laczniak, G. R. (1981). Marketing ethics: A review with implications for managers, educators, and researchers. In B. M. Enis & K. J. Roering (Eds.), Review of marketing. Chicago: American Marketing Association.

    Google Scholar 

  • Murphy, P. E., Laczniak, G. R., Bowie, N. E., & Klein, T. A. (2005). Ethical marketing: Basic ethics in action. Upper Saddle River: Prentice Hall.

    Google Scholar 

  • Murphy, P. E., Laczniak, G. R., & Wood, G. (2007). An ethical basis for relationship marketing: A virtue ethics perspective. European Journal of Marketing, 41(1/2), 37–57.

    Article  Google Scholar 

  • O’Sullivan, D., & Abela, A. V. (2007). Marketing performance measurement ability and firm performance. Journal of Marketing, 71, 79–93.

    Article  Google Scholar 

  • Pagano, B., Pagano, E., & Lundin, S. (2003). The transparency edge: How credibility can make or break you in business. New York: McGraw-Hill.

    Google Scholar 

  • Paine, L. S. (2003). Value shift: Why companies must merge social and financial imperatives to achieve superior performance. New York: McGraw Hill.

    Google Scholar 

  • Porter, M. E., & Kramer, M. R. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 78–92.

  • Ratchford, B., Agrawal, J., Grimm, P. E., & Srinivasan, N. (1996). Toward understanding the measurement of market efficiency. Journal of Public Policy & Marketing, 15(2), 167–184.

    Google Scholar 

  • Ratchford, B. T., Pan, X., & Shankar, V. (2003). On the efficiency of internet markets for consumer goods. Journal of Public Policy & Marketing, 22(1), 4.

    Article  Google Scholar 

  • Reichheld, F. F. (1996). The loyalty effect: The hidden force behind growth, profits, and lasting value. Boston: Harvard Business School Press.

    Google Scholar 

  • Robin, D. P., & Reidenbach, R. E. (1987). Social responsibility, ethics, and marketing strategy: Closing the gap between concept and application. Journal of Marketing, 51(1), 44.

    Article  Google Scholar 

  • Rowley, T. J. (1997). Moving beyond dyadic ties: A network theory of stakeholder influences. Academy of Management Review, 22(4), 887.

    Article  Google Scholar 

  • Royle, T. (2005). Realism or idealism? Corporate social responsibility and the employee stakeholder in the global fast-food industry. Business Ethics, 14(1), 42.

    Article  Google Scholar 

  • Schwepker, C. H., & Hartline, M. D. (2005). Managing the ethical climate of customer-contact service employees. Journal of Service Research, 7(4), 377.

    Article  Google Scholar 

  • Sen, A. (1987). On ethics and economics. Cambridge: Blackwell Publishers.

    Google Scholar 

  • Shultz, C. J., II, & Holbrook, M. B. (1999). Marketing and the tragedy of the commons: A synthesis, commentary, and analysis for action. Journal of Public Policy & Marketing, 18(2), 218.

    Google Scholar 

  • Slater, S. F., & Narver, J. C. (1995). Marketing orientation and the learning organization. Journal of Marketing, 59, 63–74.

    Article  Google Scholar 

  • Smith, N. C. (1993). Ethics and the marketing manager. In N. C. Smith & J. A. Quelch (Eds.), Ethics in marketing. Boston: Irwin.

    Google Scholar 

  • Smith, N. C., & Cooper-Martin, E. (1997). Ethics and target marketing: The role of product harm and consumer vulnerability. Journal of Marketing, 61(3), 1.

    Article  Google Scholar 

  • Srivastava, R. K., Shervani, T. A., & Fahey, L. (1998). Market-based assets and shareholder value: A framework for analysis. Journal of Marketing, 62, 2–18.

    Article  Google Scholar 

  • Srivastava, R. K., Shervani, T. A., & Fahey, L. (1999). Marketing, business processes, and shareholder value: An organizationally embedded view of marketing activities and the discipline of marketing. Journal of Marketing, 63, 168–179 (special issue).

    Article  Google Scholar 

  • Takala, T., & Uusitalo, O. (1996). An alternative view of relationship marketing: A framework for ethical analysis. European Journal of Marketing, 30(2), 45.

    Article  Google Scholar 

  • Urban, G. (2004). Customer advocacy—a new paradigm for marketing? In J. N. Sheth & R. S. Sisodia (Eds.), Does marketing need reform? Fresh perspectives on the future. Armonk: M.E. Sharpe.

    Google Scholar 

  • Vargo, S. L., & Lusch, R. F. (2004a). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1–17.

    Article  Google Scholar 

  • Vargo, S. L., & Lusch, R. F. (2004b). The four services marketing myths: Remnants from a manufacturing model. Journal of Service Research, 6(4), 324–335.

    Article  Google Scholar 

  • Vargo, S. L., & Lusch, R. F. (2006). Service-dominant logic: What it is, what it is not, what it might be. In R. F. Lusch & S. L. Vargo (Eds.), The service-dominant logic of marketing: Dialog, debate, and directions. Armonk: M.E. Sharpe.

    Google Scholar 

  • Velasquez, M. (2006). Business ethics: Concepts and cases (6th ed.). Upper Saddle River: Pearson Prentice Hall.

    Google Scholar 

  • Waddock, S. A., Bodwell, C., & Graves, S. B. (2002). Responsibility: The new business imperative. Academy of Management Executive, 16(2), 132.

    Google Scholar 

  • Wathne, K. H., & Heide, J. B. (2000). Opportunism in interfirm relationships: Forms, outcomes, and solutions. Journal of Marketing, 64(4), 36.

    Article  Google Scholar 

  • Webster, F. E. Jr., Malter, A. J., & Ganesan, S. (2003). Can marketing regain its seat at the table? MSI Reports. Cambridge: MSI.

  • Wilkie, W. L., & Moore, E. S. (1999). Marketing’s contributions to society. Journal of Marketing, 63, 198–218 (special issue).

    Article  Google Scholar 

  • Wilkie, W. L., & Moore, E. S. (2003). Scholarly research in marketing: Exploring the ‘4 Eras’ of thought development. Journal of Public Policy & Marketing, 22(2), 116.

    Article  Google Scholar 

  • Zadek, S. (2004). The path to social responsibility. Harvard Business Review (December), 125–132.

Download references

Acknowledgement

The authors would like to thank the editors of this special issue, Robert Lusch and Stephen Vargo, as well as Gene Laczniak, Robert Audi, the Department of Marketing at Notre Dame, and two anonymous reviewers for helpful comments on earlier drafts of this paper.

Author information

Authors and Affiliations

  1. Department of Business and Economics, Catholic University of America, 309C McMahon Hall, 620 Michigan Avenue NE, Washington, DC, 20064, USA

    Andrew V. Abela

  2. Institute for Ethical Business Worldwide, 394 Mendoza College of Business, Notre Dame, IN, 46556-5646, USA

    Patrick E. Murphy

Authors
  1. Andrew V. Abela
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Patrick E. Murphy
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Andrew V. Abela.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Abela, A.V., Murphy, P.E. Marketing with integrity: ethics and the service-dominant logic for marketing. J. of the Acad. Mark. Sci. 36, 39–53 (2008). https://doi.org/10.1007/s11747-007-0062-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11747-007-0062-0

Keywords

Search

Navigation