TikTok’s recent

deinfluencing trend and

its effect on fast­fashion W
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versus slow­fashion
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brand valuations
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Jolien Wallbaum
152121194

Dissertation written under the supervision of

Prof. Vera Herédia Colaço

Dissertation submitted in partial fulfilment of requirements for the

MSc in International Management with Specialization in Marketing,
at the Universidade Católica Portuguesa, June 2023

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 Title: TikTok’s recent deinfluencing trend and its effect on fast­fashion versus
slow­fashion brand valuations

Author: Jolien Wallbaum

Abstract

Social media has revolutionized the marketing environment, creating a huge opportunity for
social media influencers. With the recent rise of the social media platform TikTok, it has
become even more accelerated and the creation of user­generated content. The algorithm allows
varies trends to go viral. Recently, a new trend “deinfluencing” has emerged and users are
appealed by this trend, reinforcing influencers’ power in impacting consumer behavior. To

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explore the effects of the deinfluencing versus influencing trends, an experimental study was
conducted. Overall, findings show that deinfluencing is more impactful than influencing on
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brand valuations, namely on sustainability image, consumer perceived ethicality, purchase
intentions, and word­of­mouth engagement. This communication effect tends to be enhanced
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for slow­fashion brands in comparison to fast­fashion brands. The mediating role of perceived
influencer authenticity on the relationship between the type of influencer message and brand
valuations reveals the importance of meaningful and informative content in influencer
marketing. Although deinfluencing presents a powerful communication tool it should be used
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with care. The study reinforces the power of influencers in shaping consumer behavior,
emphasizes the significance of influencer credibility and represents an opportunity for brands
to convey their values through transparent and authentic storytelling in collaboration with
influencers.

Keywords: social media platforms, TikTok, influencer marketing, trends, fashion

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 Título: A recente tendência de desinfluenciação do TikTok e o seu efeito nas
avaliações das marcas de fast­fashion e slow­fashion

Autor: Jolien Wallbaum

Resumo

As redes sociais revolucionaram o ambiente de marketing, criando uma enorme oportunidade

para os influenciadores das redes sociais. Com a recente ascensão da plataforma de redes sociais
TikTok, a criação de conteúdos gerados pelos utilizadores tornou­se ainda mais acelerada. O
algoritmo permite que várias tendências se tornem virais. Recentemente, surgiu uma nova
tendência "desinfluenciar" e os utilizadores são atraídos por esta tendência, reforçando o poder

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dos influenciadores no impacto do comportamento dos consumidores. Para explorar os efeitos
da desinfluenciação em relação às tendências de influência, foi efetuado um estudo
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experimental. No geral, os resultados mostram que a desinfluenciação tem mais impacto do que
a influência nas avaliações da marca, nomeadamente na imagem de sustentabilidade, na
perceção de ética por parte do consumidor, nas intenções de compra e no envolvimento boca­
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a­boca. Este efeito de comunicação tende a ser maior para as marcas slow­fashion em
comparação com as marcas fast­fashion. O papel mediador da perceção de autenticidade do
influenciador na relação entre o tipo de mensagem do influenciador e as avaliações da marca
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revela a importância do conteúdo significativo e informativo no marketing do influenciador.

Embora a desinfluenciação constitua uma poderosa ferramenta de comunicação, deve ser
utilizada com cuidado. O estudo reforça o poder dos influenciadores na formação do
comportamento do consumidor, enfatiza a importância da credibilidade do influenciador e
representa uma oportunidade para as marcas transmitirem os seus valores através de uma
narrativa transparente e autêntica em colaboração com os influenciadores.

Palavras­chave: plataformas de redes sociais, TikTok, marketing de influência, tendências,

moda

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 Acknowledgements

First, I would like to express my deep gratitude to my supervisor, Vera Herédia Colaço, for her
guidance and support throughout the process of my dissertation. I am thankful for her advice,
knowledge, and experience as well as her continuous availability and insightful feedback to
help me complete this step of my academic career.

I would also like to thank the other seminar students for their help and reassurance through this
journey, especially Lucia. We mastered the past couple of months together and I am beyond
thankful to have been on this journey together with you – thank you for being my sparring­
partner!

And finally, I am beyond grateful for the support of my friends and family who pushed and

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motivated me throughout varies stages of my life.

Thank you!
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Table of Contents
Abstract ................................................................................................................................... I
Resumo .................................................................................................................................. II
Acknowledgements .............................................................................................................. III
List of Tables ........................................................................................................................ VI
List of Figures....................................................................................................................... VI
1 Introduction..................................................................................................................... 1
1.1 Problem Definition and Relevance ......................................................................... 1
1.2 Objective and Research Questions ......................................................................... 2
1.3 Thesis Structure ...................................................................................................... 3
2 Academic Literature Review .......................................................................................... 3
2.1 The New Era of Social Media Marketing .............................................................. 3
2.1.1 Impact of social media on marketing communications ................................................. 3

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2.1.2 Influencer marketing and its power .................................................................................. 4
2.1.3 TikTok as marketing platform........................................................................................... 6
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2.1.4 Social media and word­of­mouth communication ......................................................... 6
2.2 Fashion, Sustainability and Social Media .............................................................. 7
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2.2.1 Slow­fashion movement and consumer behavior ........................................................... 7

2.2.2 Consumer perceived ethicality .......................................................................................... 8
2.2.3 Slow­fashion on social media............................................................................................ 9
2.2.4 Fashion influencers ............................................................................................................. 9
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2.2.5 The impact of TikTok on the fashion industry.............................................................. 10

3 Conceptual Framework and Hypotheses ...................................................................... 11
3.1 Conceptual Framework ........................................................................................ 11
3.2 Hypotheses ........................................................................................................... 11
4 Methodology and Data Collection ............................................................................... 13
4.1 Research Method .................................................................................................. 13
4.2 Sampling............................................................................................................... 13
4.3 Research Instruments ........................................................................................... 13
4.3.1 Pilot study .......................................................................................................................... 13
4.3.2 Main study ......................................................................................................................... 14
4.4 Design and Procedure ........................................................................................... 14
4.5 Stimuli Development............................................................................................ 16
4.6 Variable Description............................................................................................. 16
4.6.1 Manipulation checks ......................................................................................................... 16

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 4.6.2 Independent variables ....................................................................................................... 17
4.6.3 Mediator ............................................................................................................................. 17
4.6.4 Dependent variables ......................................................................................................... 17
5 Analysis and Results .................................................................................................... 18
5.1 Sample Characterization....................................................................................... 18
5.2 Scale Reliability and Factor Analysis .................................................................. 19
5.3 Results Manipulation Check ................................................................................ 20
5.4 Main Results and Discussion ............................................................................... 21
5.4.1 The communication impact of influencer message ...................................................... 21
5.4.2 The impact of influencer message and type of brand................................................... 24
5.4.3 The mediating role of perceived influencer authenticity ............................................. 27
6 Conclusion ......................................................................................................................... 31
7 Implications ....................................................................................................................... 33

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7.1 Theoretical Implications ............................................................................................. 33
7.2 Managerial Implications ............................................................................................. 33
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8 Limitations......................................................................................................................... 35
9 Future Research ................................................................................................................. 36
Appendices ........................................................................................................................... 38
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Appendix 1: Manipulations – Pilot Study ........................................................................ 38

Appendix 2: Pilot Study ................................................................................................... 39
Appendix 3: Manipulations – Main Study ....................................................................... 42
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Appendix 4: Main Study .................................................................................................. 44

Appendix 5: Demographics – Main Study ....................................................................... 51
References............................................................................................................................. 55

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 List of Tables
Table 1: Manipulation check pilot study: type of influencer message ..................................... 14
Table 2: Manipulation scenarios .............................................................................................. 15
Table 3: Reliability tests for multi­item scales......................................................................... 20
Table 4: Manipulation check: type of fashion brand................................................................ 20
Table 5: Manipulation check: type of influencer message ....................................................... 21
Table 6: Brand familiarity ........................................................................................................ 21
Table 7: Paired samples t­test moment 1 and 2 ........................................................................ 22
Table 8: Paired samples t­test moment 1 and 2 with brand separation .................................... 23
Table 9: Type of influencer message: main effects .................................................................. 24
Table 10: Type of brand: main effects ..................................................................................... 25
Table 11: Results two­way MANOVA .................................................................................... 26

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Table 12: Perceived influencer authenticity as mediator on the relationship between type of
influencer message and sustainability image ........................................................................... 28
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Table 13: Perceived influencer authenticity as mediator on the relationship between type of
influencer message and consumer perceived ethicality ........................................................... 28
Table 14: Perceived influencer authenticity as mediator on the relationship between type of
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influencer message and purchase intention .............................................................................. 29

Table 15: Perceived influencer authenticity as mediator on the relationship between type of
influencer message and word­of­mouth engagement............................................................... 29
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Table 16: Perceived influencer authenticity as mediator on the relationship between type of
influencer message and fashion image ..................................................................................... 30

List of Figures
Figure 1: Conceptual framework.............................................................................................. 11
Figure 2: Pre­ and post­stimuli measurement .......................................................................... 15

VI
 1 Introduction
1.1 Problem Definition and Relevance

Influencer marketing is essential to brands' digital marketing strategy to reach their target
groups, as influencers impact consumers by creating trusting relationships and higher
engagement rates. Many brands and businesses are integrating it into their strategy to promote
their brand and products through social media influencers (Lime et al., 2017; Farivar & Wang,
2022). Social media influencers create content and post it on their social media. Their followers
identify and relate with them which results in creating an online community (Schouten et al.,
2020; De Veirman et al., 2017). Past studies found influencers can impact brand awareness,
brand attitudes, consumer behavior and purchase intention (Feng et al., 2020; Low & Yuan,
2019; Lim et al., 2017). Research shows a positive influence if there is a congruency between

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influencer and the brand. Especially if the influencer is associated with the category and shows
expertise in this domain (Feng et al., 2020; Kim & Kim, 2021b). Previous findings also show
that influencer marketing is perceived as more credible, with higher potential of reaching
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desired target audiences and more organic than traditional advertising by the brand themselves
(Lou & Yuan, 2019). However, influencer marketing is also facing criticism. In the past,
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influencers faced challenges with authenticity (Zniva et al., 2023).

The pandemic and social distancing guidelines reinforced the role and usage of digital
technologies. Social media was used not only to communicate and interact with one another but
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as a solution to boredom in the form of entertainment, and even recognition through posting
content (Feldkamp, 2021). TikTok became popular rather quickly through its platform’s rich
content (Xu et al., 2019). The social media platform TikTok gained much attraction and was
among the top downloaded apps in March 2020 (Feldkamp, 2021; Clement, 2020a, b). On the
app, various trends go viral. One recent trend is the so­called deinfluencing trend. Influencers
give their opinions on products they didn’t enjoy as much. By giving their opinion about
products they do not think are worthy of being recommended, they reinforce influencers’ initial
reputation: honesty. However, the question remains on how it actually influences consumers.
What effect does the deinfluencing trend spread by TikTok influencers have on their followers?
Furthermore, in what relation does it stand to sustainable consumption?

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Digital marketing is continuously evolving and the increased interest in influencer marketing
and user generated content (UGC) makes additional research crucial (Taylor, 2020). Academic
research on influencer marketing is continuously growing, and more and more insights are
gained into, for example, how influencer marketing works and its effects (e.g., Lee & Watkins,
2016; Lou & Yuan, 2019). However, there are still lots of interest points that need to be
explored.

1.2 Objective and Research Questions

The research objective for this study is to explore TikTok’s recent deinfluencing trend. More
precisely, what effect the deinfluencing trend has on the consumers and how it influences them.
Influencers are sharing their honest opinion about brands and products they do not like and at
the same time proposing alternatives (Pearl, 2023; TikTok, 2023). In the past years, social
media and influencer marketing received a lot of attention. Through the rise of social media,

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UGC became increasingly more relevant as it provides honest insight into the value of a brand
and its product. Further, users are more likely to trust UCG and consider their recommendations
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instead of brand­generated communication (Djafarova & Rushworth, 2017; Lou & Yuan,
2019). Research on influencer marketing and its effects on consumers is still limited, even
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though influencer marketing is fully integrated in companies marketing strategies (Ye et al.,
2021). Hence, this study aims to enrich the current research knowledge by exploring the effects
of influencer marketing on TikTok. As such, the current research aims to answer the following
research questions (RQ):
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RQ1: To what extent do influencers affect consumers’ brand valuations (brand image,
consumer perceived ethicality (CPE), purchase intention and word­of­mouth engagement
(WOME)?
RQ2: What is the differential impact between deinfluencing and influencing on consumers’
brand valuations?
RQ3: Does type of brand alters the impact of type of influencer message on consumers’ brand
valuations?
RQ4: What influence does perceived influencer authenticity have on the impact of type of
influencer message on consumers’ brand valuations?

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 1.3 Thesis Structure

After introducing the research problem, its relevance, and the research objectives as well as
research questions are defined, the literature review follows. The literature review contains the
theoretical background that is relevant for the purpose of this research study. After that, the
conceptual framework and the hypotheses will be explained. The fourth chapter presents the
first steps of the empirical study, including the methodology and research framework. In the
fifth chapter, the analysis and the results of the study will be discussed. Lastly, conclusions and
implications will be drawn from the findings of the study together with limitations and an
outlook for future research.

2 Academic Literature Review

2.1 The New Era of Social Media Marketing

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2.1.1 Impact of social media on marketing communications

Social media has revolutionized the way we communicate and interact socially (Obar &
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Wildman, 2015). It has become an integral part of our daily lives, especially for tech­savvy
younger generations (Hallikainen, 2015). It enables active participation in various forms within
interactive networks, such as communicating, creating, collaborating, working, sharing,
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socializing, playing, buying, and selling. Social media platforms have empowered consumers
to take active part in the conversation and engage in UGC, sharing their experiences, opinions,
and ideas, thus, shifting the power to the consumers. Their participation can be included as an
additional P in the marketing mix (Tuten & Solomon, 2017; Sharma & Verma, 2018).

Social media has also transformed the way brands communicate and engage with consumers,
offering new opportunities to enhance relationship­building, improve customer service, inform,
promote, and influence brand attitudes (Tuten & Solomon, 2017). Social media marketing
enables brands to actively engage in a two­way communication with their customers in real­
time, enhancing transparency and immediacy (Donthu et al., 2021). Further, social media
platforms provide brands access to valuable data which allows to better understand consumers’
preferences and behaviors, which brands can leverage and expand customer experience and
create more meaningful content (Sharma & Verma, 2018). Brands social media communication
can have a positive effect on brand equity and loyalty (Kim & Ko, 2012).

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Past social media research has explored various topics, including social media characteristics,
the relationship between social media and its users and the influence on brand­consumer
relationships (Sharma & Verma, 2018; Kim & Ko, 2012). One key area of research has been
the role of social media in shaping consumer attitudes and behaviors. Studies have shown that
social media can indeed influence consumers perceptions of brands and products and even
impact their purchase decision (Kim & Ko, 2012; Saima & Khan, 2020; Erkan & Evans, 2016).
Additionally, social media facilitates word­of­mouth (WOM) communication among
consumers, which greatly impacts brand awareness and reputation (Cheung & Thadani, 2012;
See­To & Ho, 2014; Wang et al., 2012). Research also explores the characteristics of social
media content that increase the likelihood of going viral, such as emotional appeal, novelty, and
relevance (Donthu et al., 2021; Berger & Milkman, 2012).

Social media has disrupted the marketing environment, providing a powerful tool to engage

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with consumers. The influence of social media continues to evolve. It is essential for marketers
to understand the dynamics and leverage the power of social media to create effective social
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media strategies, better engage with their target audience and build strong relationships. With
the sheer volume of content being generated on social media it is essential for brands to work
harder than ever to stand out from the crowd.
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2.1.2 Influencer marketing and its power

Social media platforms and digital marketing have disrupted the marketing environment and the
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way companies interact with their customers (Donthu et al., 2021). With the rise of social media
platforms, social media influencers have become effective brand ambassadors with the ability to
reach a large and engaged audience, creating a huge opportunity for influencer marketing (Phua
et al., 2017). Influencer marketing has become a popular tool as it is an effective way to reach
consumers on social media platforms like Instagram, YouTube and TikTok, while they are
browsing for inspiration, recommendations, and entertainment. Influencer serve as
intermediaries, connecting brands with consumers. The power of influencer marketing lies in the
ability of influencers to build relationships and trust with their followers, while creating authentic
and relatable content that resonates with their followers (Feng et al., 2020).

The size and value of the industry have grown immensely and continues to grow. By 2022, the
global influencer marketing market value reached 16.4 billion U.S. dollars (Statista Research
Department, 2023). For 2023, an estimated growth to 21.1 billion U.S. dollars is expected

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(Influencer Marketing Hub, 2023). The COVID­19 pandemic emphasized the relevance of
influencers in digital marketing strategies (Kim & Kim, 2021a) as more people turned to social
media for entertainment and virtual social experiences during the pandemic (Etzkorn, 2021).

Consumers find the personal storytelling aspect of influencer­created content more engaging and
authentic (De Veirman et al., 2017). Particularly, the inclusion of the product reviews in their
personal lives creates a more authentic and relatable context for consumers (Schouten et al, 2020).
However, influencers are obliged to include a disclosure hashtag, such as #ad, #advertising or
#sponsored, to be transparent about paid relationships with brands through the Federal Trade
Commission (Federal Trade Commission, 2017). Past studies have shown the effectiveness of
influencer marketing in reaching consumers and promoting their brand and products. Influencer
marketing can help to create awareness and attention among potential customers, impact brand
attitudes, generate word­of­mouth, foster engagement and drive sales as consumers tend to trust

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recommendations from influencers they follow (Brown & Hayes, 2008; Chetioui et al., 2020;
Feng et al., 2020; Low & Yuan, 2019; Lim et al., 2017). It is particularly effective to reach and
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engage with younger target audiences like Millennials and Gen Z as they desire personalized and
interactive brand experience (Fromm, 2018; De Jans et al., 2018; Childers et al., 2019). After
beauty, fashion is the second popular category of products promoted through influencer
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marketing (Feng et al., 2020).

Previous research has shown that authenticity and entrepreneurial spirit are essential for the
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success of influencer marketing (Feng et al., 2020; Kim & Kim, 2021a). Authenticity is a key
factor in influencer marketing. Multiple studies have shown that consumers are more likely to
trust and engage with influencers who are perceived as authentic and genuine. Moreover, the
influencer’s personality, their perceived expertise, and the transparency of their disclosures play
a role for credibility and authenticity (Lee & Kim, 2019; Feng et al., 2020). Further, other factors
such as the relevance of the influencer’s content to the brand, brand fit and the nature of the
influencer’s relationship with their followers play a role in the effectiveness of influencer
marketing (Belanche et al., 2021; Kim et al., 2020; Breves et al., 2019).

Hence, influencer marketing has become a powerful marketing tool for brands, and its relevance
and impact are only expected to grow in the coming years. In addition, for effective influencer
marketing it is essential for brands to not only understand the dynamics what drives the
effectiveness of influencer marketing but also to identify the right influencer that fit the brand and
their target audience and create an authentic partnership.

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2.1.3 TikTok as marketing platform

TikTok is a social media platform that was originally launched in 2016 in China under the name
Douyin. The international expansion under the name TikTok followed the year after. In 2019
and 2020, download numbers for the app exaggerated due to the pandemic and TikTok become
one of the most popular apps. In 2019, the app was downloaded 693 million times and in 2020,
850 million times (Iqbal, 2023). In 2021, TikTok accounted for a revenue of approximately
$4.6 billion. In 2022, the app was able to double the revenue to an estimate of $9.4 billion. The
number of users has increased immense and TikTok had over one billion users by the end of
2021. For the end of 2022, the number was expected to grow up to 1.8 billion. The app has been
downloaded over three billion times since its launch. Most users are between 18 and 34 years
old (Iqbal, 2023; Curry, 2023).

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TikTok has a wide range of users and is an attractive platform for brands to promote their brand
and products. The video­sharing platform is a lucrative marketing channel due to its striking
download numbers, huge audience reach and promising engagement rates. By collaborating
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with influencers, brands can enlarge their exposure, stay up to date with viral trends and reach
millions of potential customers. Brands can work with mega­influencers such as Alix Earle or
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Charli D’Amelio but it can be lucrative to also collaborate with micro­influencers (TikTok,
2023; Statista Research Department, 2023; Influencer Marketing Hub, 2023).

The pandemic has led to an increase in influencer­created content. The number of TikTok’s
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shared videos by influencers increased solely in February 2020 to March 2020 by 65% (Schwär,
2020). TikTok has become a lucrative platform for influencers, providing additional reach and
marketing opportunities. It allows additional narrative levels and influencers can integrate content
besides their normal social media contents (Feldkamp, 2021). Along with Instagram, TikTok is
the most commonly used social media platform for influencer marketing campaigns. This year,
TikTok takes with 55.5% the first place in the most common channel used by influencer
marketing brands, followed by Instagram with 50.8% (Influencer Marketing Hub, 2023).

2.1.4 Social media and word­of­mouth communication

Social media has transformed traditional word­of­mouth communication. Social media

platforms can be described as virtual hubs where people share experiences, opinions, and
recommendations with their network, extending the reach and speed of word­of­mouth
communication. Thus, amplifying the impact of the conversation and reach across the globe

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(Donthu et al., 2021; Whitler, 2014; Hung et al., 2023; Kimmel & Kitchen, 2014). The
platforms facilitate users’ interactions through features such as likes, comments, shares, saves,
hashtags and UGC, encouraging users to interact with each other but also with brands (Donthu
et al., 2021; Chu & Kim, 2011). The ease of sharing content and engaging with others intensifies
the rapid spread of information, creating buzz and fueling conversation. Marketers have
recognized the importance of leveraging social media and its power to create word­of­mouth
conversations as well as the important role of influencer to drive WOM (Barreto, 2014; Donthu
et al., 2021). As social media continues to thrive, the influence of word­of­mouth
communication is expected to remain a driving force in shaping consumer behavior and brand
perceptions in the digital landscape (Donthu et al., 2021).

2.2 Fashion, Sustainability and Social Media

2.2.1 Slow­fashion movement and consumer behavior

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The fashion industry is one of the biggest industries worldwide; it contributes $2.4 trillion to
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global manufacturing and employs 300 million people worldwide across the value chain.
However, it is also one of the biggest contributors in polluting the planet. It is accountable for
approximately 2­8% of the world’s greenhouse gas emissions, water consumption per year is
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around 215 trillion liters, annual material loss of US $100 billion and it is responsible for
approximately 9% of annual microplastic losses to the oceans (United Nations Alliance for
Sustainable Fashion, n.d.).
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In recent years, various headlines attracted attention of consumers worldwide about the
circumstances in the textile industry. Especially, the tragic incident in Bangladesh in 2013 and
the collapse of the Rana Plaza building was a wakeup call (Kent & Amed, 2023). Consumers
are nowadays more and more aware of sustainability and environmental impact in the fashion
industry. This and the noticeable effects of climate change led to an attempt to change their
consumption behavior (Joshi & Rahman, 2015). The shift in societal consciousness put a lot of
pressure on companies. Consumers are not only wanting governments to act and take
responsibility, but also businesses. Therefore, they are pushed to follow a more sustainable
approach (Fortune, 2019). To meet consumer needs, businesses started integrating corporate
social responsibility strategies and following environmental, social and governance (ESG)
goals. Brands even integrate those into their communication strategy and use green marketing
to differentiate from others and integrate sustainability into the core of their marketing practices
(Kotler, 2011; BoF Team, 2022; Kent, 2022, 2023).

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 Nonetheless, even though consumers are calling for conscious consumption and their attitudes
is pro environmental, the behavior often does not follow those intentions, especially regarding
fashion consumption (McNeill & Moore, 2015). This discrepancy between the attitude towards
sustainable fashion and the actual behavior of consumers is referred to as the attitude­behavior
gap (Kim, 2016; Magnuson et al., 2017). Various studies within the sustainable consumption
behavior domain indicate multiple factors are likely to drive such discrepancy, like individual
differences and demographics (Bray et al., 2011), lifestyles (Connolly & Prothero, 2003),
values, knowledge, perceived behavioral control (Jager, 2000), social norms (Do Valle et al.,
2005) and situational factors likes promotions (Minteer et al., 2004).

2.2.2 Consumer perceived ethicality

Consumer perceived ethicality (CPE) has gained significant attraction as consumers are

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becoming more aware of the actions of brands and expect them to behave ethically (Brunk,
2012; Brunk & De Boer, 2020). CPE refers to consumers beliefs and perceptions of the
ethicality of a brand, product, or business, meaning acting in a social and ethical responsible
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way (Brunk & Bluemelhuber, 2011; Brunk, 2012). Brunk (2012) introduced a construct how
CPE can be conceptualized and operationalized. Consumers nowadays are more aware about
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environmental issues and the impact of their consumption choices. They seek brands that align
with their personal values. Thus, they also consider other criteria when choosing a brand next
to price and quality, e.g., innovation and the brands commitment to environmental and social
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concerns (Bussey, 2006; Maxfield, 2008). Understanding CPE is crucial for businesses as it
influences consumer behavior, including attitudes, purchase intention and overall brand
evaluation (Brunk, 2010b). Hence, ethical evaluations affect corporate reputation formation
(Bromley, 2001) and thus, the ethicality of a business is linked to its overall reputation
(Bendixen & Abratt, 2007; Worcester & Dawkins, 2005). Past studies indicate that consumers
value brands more that integrate sustainable and ethical practices in their operations. Ethicality
can therefore act as a differentiating factor, providing a competitive advantage through fostering
trust and building relationships based on shared values and social responsibility (Cheung & To,
2021; Markovic et al., 2018; Patel et al. 2017; Singh et al. 2012; Story & Hess 2010).

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