Ali, Abbas J., and Joette M. Wisniesk.

"Consumerism and Ethical Attitudes: An Empirical

Study." International Journal
of Islamic
and
Eastern
Finance
and Management
The current
issue and full
textMiddle
archive of this
journal is available
at
www.emeraldinsight.com/1753-8394.htm
3.1 (2010): 36-46. ProQuest.
Web. 15 Oct. 2015.

IMEFM
3,1

Consumerism and ethical

attitudes: an empirical study
Abbas J. Ali and Joette M. Wisniesk

36

Eberly College of Business and IT, Indiana University of Pennsylvania,

Indiana, Pennsylvania, USA
Abstract
Purpose This paper aims to investigate consumerism and consumer ethics and the relationship
between the two concepts.
Design/methodology/approach About 500 questionnaires are distributed to students at two
universities in the United Arab Emirates. Frequency distribution and one-way multivariate analysis
are used to analyze the data. Two scales are used: consumerism and consumer ethics.
Findings The results of a reliability test and correlation analysis indicated that both scales are
reliable and that the consumerism scale is positively and significantly correlated with the consumer
ethics scale. Furthermore, the paper reveals that participants scored moderately high on both scales.
Originality/value Unlike most of the existing literature, it is found that the tendency to spend and
enjoy buying does not translate into a low score on consumer ethics. In fact, there is a positive
correlation between consumerism and consumer ethics scales. This may indicate that religion does
play a role in shaping consumers orientations and attitudes.
Keywords Consumerism, Ethics, United Arab Emirates, Students
Paper type Research paper

International Journal of Islamic and

Middle Eastern Finance and
Management
Vol. 3 No. 1, 2010
pp. 36-46
q Emerald Group Publishing Limited
1753-8394
DOI 10.1108/17538391011033852

Introduction
In recent years, a profound change has taken place in the markets. This change has
shaped the nature of competition, the power of market actors, and subsequently their
orientations and priorities. Of late, consumers have come to play a pivotal role in the
marketplace by articulating and acting upon their desires and preferences. Consumers
are no longer passive actors; rather they have become an independent and active force
in shaping events in the marketplace and influencing corporations market and nonmarket decisions (Ali, 2007b; Barrutia and Charterins, 2006; The Economist, 2005). This
has been made possible by rapid developments in information technology, ease of
communications across the globe, education, wide exposure to media and entertainment,
and widespread affluence. Furthermore, the appeal of free market economy principles,
after the collapse of the Soviet Union, has not only strengthened market actors but also
made it possible for some of these actors to exercise their power selectively and
creatively. Corporations, for example, have begun to promote their products and
services vigorously and intensely in many parts of the world. Customers, on the other
hand, have enjoyed the power to choose and exercise, in their preferences, what, why,
where, and how to buy a product or service (Barrutia and Charterins, 2006; Mackay,
2008; Smith, 2004; Stolle et al., 2005).
There is an agreement, in this new era, that the emerging fact is that consumers have
become a formidable force in the marketplace. In other words, the passive consumer is
The authors wish to thank Professor Helen Bailie for her comments on an earlier version of this
paper.

neither a fact nor a realistic assumption (Ali, 2007a). Of course, for a long time, pragmatic
and foresighted executives have looked at customers as the driving force of their
corporations successes. As early as 1876, Jon Wanamaker, the founder of the worlds
first department stores, stated, When a customer enters my store, forget me. He is king
(The Economist, 2005). While Wanamaker was a pioneer in recognizing the importance
of customers in his businesss success, not all businesspeople, at the time, thought this
way of customers. This is because the power of customers does not exist independently
of market structure, the nature of competition, and technological and societal
advancement. In the nineteenth century and probably until early 1960s, customers did
not exert that much influence in the marketplace as they do in current years.
No doubt, the changes which have taken place since the early 1990s have catapulted
customers on the center stage of market power. This development is associated with
the rise of consumerism and the quest of customers across the globe to take advantage
of enfolding market opportunities and changes. At the heart of the evolving
consumerism debate are the issues of the power of choice, the propensity to consume,
and the willingness to voice concerns (Ali, 2007a; Stolle et al., 2005). This is different
from the early concept of consumerism which took shape during the 1960s and the rise
of consumer protection advocacy groups such as the one pioneered by Ralph Nader.
The new phenomenon of consumerism is different and is in fact qualitatively opposite
to the early conceptualization. This is because consumers were viewed as incapable of
making intelligent choices, easily manipulated by corporations and government, or
were passive actors in the market (Buskirk and Rothe, 1970; Day and Aaker, 1970).
While the earlier concept and movement of consumerism gave rise to private and
public agencies advocating the safety and rights of consumers, along with the
protection of the environment, the new consumerism trend propelled to the front
concerns about ethical conduct in the marketplace along with sociopolitical issues.
The paper is designed to address consumerism and ethical attitudes in the marketplace.
The study is conducted in the United Arab Emirates (UAE); a country that has
experienced tremendous economic growth and an unprecedented level of affluence in
the last three decades. Its per capita income in 2008 was $40,400 (CIA, 2009) and
shopping centers dominate its urban landscape. The country is one of the richest oil
producing countries and has one of the fastest economies in the world. Furthermore,
citizens of the emirates constitute less than 10 percent of the population; the
overwhelming majorities are expatriates. Most importantly, 80 percent of Fortune 500
companies now have regional hubs in the UAE (KPMG, 2008). Indeed, increasing oil
revenues and government policies have led to economic diversification and profound
changes in the economic landscape in the last six decades. Just over 30 years ago, only a
handful of retail stores existed in major towns. Recently, impressive modern buildings
and malls dominate the landscape of cities like Dubai, Abu Dhabi, and Sharajah.
After many decades of fragmentation and tribal rivalry, the sheikhs of various
localities decided to form a country in 1971. Though each emirate maintains its
autonomy, matters related to defense, foreign policy, and fiscal and monetary affairs
are left to the central government. Socially, however, tribal and local identities have
been persistent. The increases in oil revenues after 1973 have enabled each emirate
sheikh to lavishly reward his citizens. Subsequently, clannishness and loyalty to a
specific sheikh have been reinforced. Furthermore, due to conservative and traditional
outlooks, amenities have been limited and people due to economic prosperity have been

Consumerism
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left with sizeable disposable income. This fact combined with the flourishing of malls
to serve increasing demands for foreign goods and services has been instrumental in
changing patterns of purchasing and spending. In fact, UAE was ranked number 16 in
among the most attractive 30 emerging countries for retail investment (Kearney, 2006).
Evolution of consumerism
The debate over the dawn of consumerism is in a state of flux. There are some scholars
who view consumerism as an eighteenth century European phenomena, which were
later, exported to the rest of the globe (Trentmann, 2004). In this context, consumerism
is strictly viewed as a tendency to acquire material goods and enjoyment in life. This
tendency is associated with the proliferation of retail outlets, and the widespread of
consumerist values into social spheres (Trentmann, 2004). That is, consumerism is a
defining feature of a society searching for its identity. As the society acquires a taste
for affluence, it generally tends to engage in social and economic experimentation,
including an appreciation for leisure and aestheticism.
Traditionally, the majority of research on consumerism, while associating with the
spread of capitalism, has treated it as an American invention. In this respect,
consumerism was viewed first as a concern for the general public and the ease with
which market forces deceive and manipulate it (Noah, 1999). This led to the emergence
of consumer movements and the thriving of organizations that advocate consumer
safety, welfare, and protection (e.g. J.D. Power and Associates, consumers unions, etc.).
Consumerism represented a movement that focused on the rights and interests of the
consumer. These include advertising influence, health and safety, repair and servicing,
pricing concerns, pollution, market concentration, quality of product, and
representation of consumers in government agencies (Barksdale and Darden, 1972;
Buskirk and Rothe, 1970; Day and Aaker, 1970; Kangun et al., 1975). At this stage,
therefore, considerable emphasis was placed on agencies promoting and protecting
consumer interests. Explicitly, the message was that customers, individually and in a
capitalistic society, might be incapable of defending their interests and formulating a
cohesive message in the face of formidable foes. Accordingly, a third party of experts
should articulate their interests and formulate strategies to cope with these challenges.
The second stream of thought is characteristically linked to globalization and
represents a qualitative departure from the preceding stage. While there is no
agreement on how to effectively express and articulate the new message, the consensus
is that consumerism represents a new socioeconomic trend which celebrates consumer
individuality and unique personalities, and consequently, companies have no option but
to recognize and respond positively to this emerging reality. Accordingly, companies
have had to invest heavily in advertising their products to meet and stimulate consumer
demands across a plethora of products categories (Abplanalp, 2009).
An intensive review of current literature reveals that consumerism is viewed as
a phenomena associated with globalization (Wagener, 2008) and by necessity is a
capitalistic ideology (Rules, 1987) which underscores the necessity of conspicuous
consumption, overspending, and shop till you drop attitudes (Benady, 2008;
Hochman, 1999; Noah, 1999; OConnor, 1991; Tugend, 2008). That is, consumerism has
become a contest (Shaw, 2008) and customers assert their identity with their ability to
buy supersized everything (Palmer, 2008). Consumerism can take, too, a form of
protest and an assertion of personal identity and political belief. It is a form of political

activism manifested in boycotting certain products and corporations based on ethical

and political considerations (Stolle et al., 2005). Ali (2007a) argues that consumerism
can be either a source of creative imagination or a dysfunctional attitude. Either way, it
is a powerful trend in todays economy. Like any socio-economic trend, it is the product
of the interplay of multiple forces in the marketplace and social arena. The power
and persistence of these forces ultimately determine the evolution and prospect of
consumerism.
Consumerism and ethics
Consumerism is often viewed as a tendency to spend more and an embracing of
materialism, or as a form of political and social protest against certain goods or firms
based on ethical deliberation and considerations, the behavior of customers. Either view,
in the marketplace, plays a vital role in determining the level and subject of
consumption. The question facing these two seemingly contradictory attitudes is:
do customers behave ethically in exercising their rights in the marketplace? The
answer to this question, in general, is not straightforward. In fact, the existing literature
provides conflicting conclusions. There are those who provide either direct or indirect
relationships between ethics and consumption behavior (Doran, 2009; Muncy and
Eastman, 1998; Steenhaut and Kenhove, 2006; Vitell and Paolillo, 2003). On the other
hand, some researchers have found out that there is a lack of consumer concern for
ethical and environmental issues (Belk et al., 2005). Similarly, in conducting a study on
consumer ethics in Ghana, Bonsu and Zwick (2007) found that Ghanaian consumers
display lower levels of ethics especially when the questionable actions lead to
achievement of their goals.
In their study of consumers in the USA, Vitell et al. (2007) reached inconclusive
evidence regarding the relationship between ethical beliefs and questionable behavior
in the marketplace. Likewise, Vitell and Muncy (2005) found inconsistencies in their
results between students and non-students groups. This led them to conclude that any
differences that exist in terms of ethics of the two groups must be explained by factors
other than their attitude toward business.
Most of the literature, however, on consumer ethics has seldom attempted to directly
link ethics to consumerism. Muncy and Eastman (1998), who appear to equate
consumerism to materialism, directly link consumer ethics to consumerism. These
authors suggest that a relationship between ethical conduct and materialism is more
likely to manifest itself in consumer ethics. They found that materialism is negatively
correlated with consumers higher ethical standards. Likewise, Belk et al. (2005)
proposed that culture filters our perceptions of what constitutes good or responsible
consumption and sets consequences for any perceived violation of moral norms. This
study, therefore, attempts to empirically examine whether or not relationships exist
between consumerism and consumer ethics. Whether the relationship is positive or
negative, it constitutes a challenge for marketing managers to design promotion and
distribution strategies of goods and services. This is especially true as ethics constitute
either a facilitating or constraining factor on consumers. In the marketplace, those who
hold certain beliefs about consumption, companies, or products are more likely to act
upon them (Stolle et al., 2005). For example, if consumer groups determine that certain
corporations violate their ethical beliefs, they either boycott them or use other tactics to
influence or induce them to change their strategies. Furthermore, consumers may

Consumerism
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consider some corporations to be environmentally friendly. This may strengthen

these corporations image and eventually enhance their competitive position in the
marketplace.
Methodology
Sample
The subjects were students enrolled at two state (emirate) universities in the UAE. One
university is co-ed while, in the second, male and female students are segregated into
two different wings. Both universities are comprehensive and their faculties are
primarily recruited from overseas. About 500 questionnaires were distributed; 417 of
them were useable. The subjects were almost equally divided in terms of gender,
211 men and 206 female students. The overwhelming majority was under 25 years of
age or younger and 29 percent were citizens and the rest were from other Arab
countries. About 28 percent were from the upper-class and 64 percent had middle-class
backgrounds.
In a dynamic society which is in its early years of its economic development and
growth, students constitute an active consuming segment. Furthermore, since students
come from all social segments in society and are in tune with current market trends
and fashionable items, they are more likely to manifest in their collective consumption
patterns and styles that of the society as a whole. While students, however, may tend to
have negative attitudes about certain economic, social, and political affairs (Vitell and
Muncy, 2005), this does not necessarily impair their consumption and involvement in
the marketplace.
Measures
The measures used in this study are consumerism questionnaires and a consumer
ethics scale. The first has 20 statements and was adopted from Ali (2006). The
statements covered areas related to materialism, overspending, shopping and personal
growth and identity, and the role of spending and buying in the society, among others.
The consumer ethics scale has five statements and was developed by Muncy and Vitell
(1992). The scale focuses on items related to actively benefiting from an illegal activity.
Respondents rated their agreement with each statement on a five-point scale ranging
from strongly disagree (1) to strongly agree (5).
Results
Table I presents the items and item-total correlations of the two measures along with
the mean and standard deviation for each item. The Cronbachs reliability coefficients
for consumerism and consumer ethics scales were 0.77 and 0.79, respectively. An
examination of item-total correlations for the consumerism scale indicates that Item 4
has a fairly high but negative correlation. Item-total correlation for the consumer ethics
scale reveals that all items correlate positively with one another (Nunnally, 1967).
Furthermore, the scales are highly correlated with each other (2 0.254, p , 0.00; note
that scoring for consumer ethics is reversed and thus the negative sign should be read
as positive).
Table II presents the results of the one-way multivariate analysis (MANOVA). The
results indicate that there is no significant difference in consumerism across
citizenship, age, social class, and gender. Furthermore, there are no significant

Item
Consumer ethics
Changing price tags on merchandise in a retail store
Drinking a can of soda in a supermarket without paying for it
Reporting a lost item as stolen to an insurance company in order to
collect the money
Giving misleading price information to a clerk for an unpriced item
Returning damaged merchandise when the damage is your own fault
Consumerism
Overall, I enjoy shopping and spending money
Purchasing luxurious and prestigious items is a gratifying
experience
Engaging in shopping is a source of happiness
I believe that our society is better served by limiting advertisement
that places considerable emphasis on consumption
Shopping is a means for socialization
I fully express my identity through consumption
Acquisition of goods that are admired by others is a testimony of my
unique personality
An exposure to brand advertisement almost always leaves an
immediate impression upon me
I find shopping as a useful means to minimize exposure to social and
political problems
Consumption is instrumental in improving customers welfare
Free choice for consumers always leads to a better use of economic
resources
I often buy more than I basically need
I often find myself buying additional items than what I had originally
intended
Shopping has special meanings far exceeding mere buying of goods
Consuming materials is an exercise of my rights to be somebody
Consumers interests are better served through active promotion of
consumption spending
Consumption of leisure items contributes positively to the prosperity
of society
Life has little meaning without shopping
Increasing the consumption of goods is closely and positively linked
to societal prosperity
In todays world, personal growth is inherently linked to market
growth

Item total
correlation

SD

3.01a
3.35a

1.298
1.413

0.433
0.630

3.35a
3.35a
3.28a

1.353
1.392
1.323

0.631
0.656
0.504

3.40

1.174

0.343

3.32
3.26

1.137
1.072

0.358
0.365

2.83a
3.11
2.99

1.105
1.156
1.165

20.277
0.390
0.419

3.00

1.248

0.311

3.15

1.193

0.319

3.07
3.13

1.104
1.048

0.299
0.363

3.40
3.21

1.106
1.202

0.289
0.437

3.18
3.15
3.00

1.178
1.155
1.032

0.404
0.355
0.367

3.24

1.014

0.381

3.11
3.20

1.042
1.100

0.414
0.412

3.21

1.080

0.433

3.39

1.114

0.357

Note: Scoring reversed

differences in consumer ethics across age, social class, and gender. The only significant
difference is found across citizenship where UAE citizens scored higher than others
(X 3.30 vs X 3.26, respectively, overall F 3.15, p , 0.008).
Discussion
The results of this study reveal that participants in the UAE score moderately high on
consumerism and consumer ethics. Furthermore, demographic variables appear not to

Consumerism
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41

Table I.
Item total correlation,
means, and standard
deviations of and
consumerism and
consumer ethics scales

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42

Table II.
One-way MANOVA
of consumerism and
consumer ethics by
selected variables

Means
Variable
Gender
Male
Female
F-MANOVA
Social class
Upper
Middle
Lower
F-MANOVA
Age (years)
, 20
20-24
$ 25
F-MANOVA
Country of citizenship
UAE
Other Arab states
F-MANOVA

Consumerism

Consumer ethics

3.12
3.20
1.07

3.14
3.39
1.46

3.25
3.11
3.23
1.32

3.13
3.36
3.03
1.30

3.24
3.15
3.06
1.06

3.19
3.29
3.32
1.17

3.24
3.12
1.42

3.30
3.26
3.15 *

Note: Significant at: *, 0.05

be a major factor in influencing their consumerism tendencies and consumer ethics. It is

possible that participants share similar orientations and differences in gender,
citizenships, social class, and age are not as powerful as the influence of traditional and
religious values. The latter may deeply shape general orientations as a social and
market force. Perhaps, modern classification and segmentation are useful, but their
influence, relative to widely common traditional identities (e.g. tribal, communal,
location, etc.), are not yet instrumental in shaping the shopping habit and attitudes.
It is important to take note that as a nation-state, the UAE is in its early years of
formation and it was established in 1971. Possibly, at this stage the class or gender
conscious, for example, may not have become a primary source of identity. So, at this
particular juncture the primary identity is still tribal, ethnic, or religious. This,
however, should not underestimate two important findings. First, most of the
participants were found to be either from upper or middle class (28 and 64 percent,
respectively). These segments are wealthy, willing to spend money, and more
importantly appear to be conscious that their interests are closely linked to the health of
the economy and prosperity. Second, on statements related to identity (I fully express
my identity through consumption, acquisition of goods that are admired by others is a
testimony of my unique personality, and consuming materials is an exercise of my
rights to be somebody), participants scored relatively low. This result, along with
common similarity in consumerism and ethics, may confirm shared orientations in
marketing and consumption patterns. Nevertheless, such findings should not preclude
the fact that future generations will progress differently from their parents and
grandparents. In fact, as Schvaneveldt et al. (2005) reported, there has been a rapid and
dramatic social change in the UAE. This change is reflected in differences in attitudes
and beliefs between generations on matters related to work, marriage, and family life.
This trend is more likely to continue and eventually penetrates marketing habits.

Indeed, the rapid economic and urban growth in the UAE has produced a constant
conflict between the old and new ways of life. The old is characterized by austerity and
simplicity while the rapidly emerging new economic and social order is manifested in
the thriving of new urban centers, prosperity, and easy access to most advanced world
technologies. This conflicting existence offers marketing strategists opportunities and
challenges. The first is reflected in rising demand for luxury goods and a willingness to
spend and travel. The challenge for marketing strategists is to devise strategies to cope
with market demand without confronting religious and traditional social sentiments.
Unlike previous studies, the results indicate that the subjects, as students, are not
unethical. Rather, in this study, participants scored moderately high on consumer
ethics. That is, the claim that students are not that ethical (Fritzche and Becker, 1982)
or have a tendency to tolerate questionable or illegal behavior (Cole and Smith, 1996;
Duizend and McCann, 1998, Vitell and Muncy, 2005) may not be valid in other cultures.
Cultural differences exist, especially in upbringing and in cohesiveness. In traditional
cultures, these factors may have a lasting impact on the personality and attitudes of
individuals. Nevertheless, it is essential for marketing managers to be familiar with
economic changes and their impact on social habit and purchasing. This is particularly
important as consumer spending in 2008 increased by 32 percent over 2007 spending
(UAEInteract, 2009).
Furthermore, our results evidence that those who are disposed for consumerism,
especially material possession, are not necessarily unconcerned with ethical aspects in
their conduct. Both Barrett (1992) and Muncy and Eastman (1998) associated
materialism with certain types of unethical behavior. Again, these findings could be
societal or cultural-specific and their validity is difficult to generalize. In a society like
the UAE where Islamic instruction highlights the virtue of moderation, ethical conduct,
and personal relationship, bragging about material possessions and publically
behaving in socially undesirable ways are deliberately avoided. Indeed, as Iseman
(1978) noted, Arabs generally are indifferent to material wealth because it is abstract
and impersonal and thus, at times, appear to relate very little to what really matters to
them. Therefore, consuming and spending may serve, as the result showed, as a crucial
medium to socializing and enhancing social networking and prestige.
The propensity to consume coupled with the tendency to behave ethically in the
marketplace may pose a dilemma to marketing strategists. Such a dilemma requires
foresight and alertness in accommodating customer needs and sensitivity to their
ethical stance. In todays business environment, relations with customers and
awareness of and commitment to societal ethics are part of social capital. Ultimately,
this social capital enhances the dynamic capability of the firm and its ability to build
and deploy resources effectively relative to competitors (McCarthy and Puffer, 2008;
Nahapiet and Ghoshal, 1998).
Likewise, policymakers should be aware that consumerism as an ideology that
celebrates consumption and spending in a society with limited productive capacity
may constitute a threat to future development and strengthen dependency on imports
and foreign markets. The challenge that policymakers face is how to maintain current
consumer ethics while enhancing public awareness of the negative aspects of
unrestrained consumerism. For many years, the flourishing of malls and shopping
centers in the UAE has been driven by increasing oil revenues and emigrant workers.
Neither can be taken for granted. Therefore, policymakers should, in their policy

Consumerism
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planning, have practical vision for where their country should be 50 or more years
from now.
In summary, it appears that participants in the UAE scored moderately high on
both consumerism and consumer ethics. The tendency to spend and enjoy buying,
however, does not translate into a low score on consumer ethics. Rather, it seems that
there is a positive correlation between consumerism and consumer ethics scales. While
this direction is clear, the fact that participants did not score fairly high on both scales,
necessitates that future research should compare students with practitioners and that a
cross-national and larger sample may provide better insight.
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Corresponding author
Abbas J. Ali can be contacted at: aaali@iup.edu

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