Skip to main content
Log in

Organizational Sensemaking of Non-ethical Consumer Behavior: Case Study of a French Mutual Insurance Company

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Researchers and managers alike are becoming increasingly interested in the topic of unethical consumer behavior. Where most studies view unethical behavior as something that is identifiable per se, the authors of the present article believe that it only exists because it has been constructed by people operating within a specific context. Hence the efforts made by this paper to explore, at the level of one specific organization, how interactions between employees and consumers might lead to the construct of unethical consumers. Based on a case study of France’s AMDM—a mutual insurance company set up to serve a client base comprising motorcyclists—the paper addresses how one group of consumers ends up being categorized as unethical by revealing the existence of a sensemaking process within the target organization. This process develops in three main phases: the nurturing of a shared ethos; the protection of employees’ recognized status; and the demonization of any group of consumers threatening this status. Managers incorporating this sensemaking process can avoid or mitigate the negative effects befalling organizations when these kinds of unethical consumer behavior are constructed.

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

Access this article

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

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

Notes

  1. Five criteria have been identified to assess to what extent consumer behavior can be considered as unethical (Vitell 2014): whether an advantage is being actively sought; whether the consumer is benefiting passively from an error; whether the action is perceived as illegal; the harm to the business victim; and whether the consumers in question are not involved in positive actions such as recycling.

  2. Momo Design is an Italian helmet brand with a very refined urban look contrasting with traditional motorcycle helmets.

  3. John Lobb Bootmaker is a company that manufactures and retails a luxury brand of shoes and boots mainly for men.

References

  • Adkins, N. R., & Ozanne, J. L. (2005). The low literate consumer. Journal of Consumer Research, 32(1), 93–105.

    Article  Google Scholar 

  • Alvesson, M. (1993). Organizations as rhetoric: Knowledge-intensive firms and the struggle with ambiguity. Journal of Management Studies, 30(6), 997–1015.

    Article  Google Scholar 

  • Arnould, E. J., & Cayla, J. (2015). Consumer fetish: Commercial ethnography and the sovereign consumer. Organization Studies, 36(10), 1361–1386.

    Article  Google Scholar 

  • Arnould, E. J., & Rose, A. S. (2015). Mutuality critique and substitute for Belk’s “sharing”. Marketing Theory,. doi:10.1177/1470593115572669.

    Google Scholar 

  • Babakus, E., Cornwell, T. B., Mitchell, V., & Schlegelmilch, B. (2004). Reactions to unethical consumer behavior across six countries. Journal of Consumer Marketing, 21(4), 254–263.

    Article  Google Scholar 

  • Becker, H. S. (1963). Outsiders: Studies in the sociology of deviance. New York: Macmillan.

    Google Scholar 

  • Belk, R. W. (Ed.). (2007). Handbook of qualitative research methods in marketing. Cheltenham: Edward Elgar Publishing.

    Google Scholar 

  • Belk, R. W., Devinney, T., & Eckhardt, G. (2005). Consumer ethics across cultures. Consumption Markets & Culture, 8(3), 275–289.

    Article  Google Scholar 

  • Berry, L. L., & Seiders, K. (2008). Serving unfair customers. Business Horizons, 51(1), 29–37.

    Article  Google Scholar 

  • Boltanski, L., & Thévenot, L. (2006). On justification: Economies of worth. Princeton: Princeton University Press.

    Google Scholar 

  • Clegg, S., Kornberger, M., & Rhodes, C. (2007). Business ethics as practice. British Journal of Management, 18(2), 107–122.

    Article  Google Scholar 

  • Corsaro, D., & Snehota, I. (2011). Alignment and misalignment in business relationships. Industrial Marketing Management, 40(6), 1042–1054.

    Article  Google Scholar 

  • Cova, B. (1997). Community of consumption: Towards a definition of the “linking value” of products or services. European Journal of Marketing, 31(3/4), 297–316.

  • Cova, B., Kozinets, R. V., & Shankar, A. (Eds.) (2007). Consumer tribes. Oxford: Butterworth-Heinemann.

  • D’Astous, A., & Legendre, A. (2009). Understanding consumers’ ethical justifications: A scale for appraising consumers’ reasons for not behaving ethically. Journal of Business Ethics, 87(2), 255–268.

    Article  Google Scholar 

  • De Laine, M. (2000). Fieldwork, participation and practice. Ethics and dilemmas in qualitative research. London: Sage.

    Google Scholar 

  • Echeverri, P., Salomonson, N., & Åberg, A. (2012). Dealing with customer misbehavior Employees’ tactics, practical judgement and implicit knowledge. Marketing Theory, 12(4), 427–449.

    Article  Google Scholar 

  • Eckhardt, G., Belk, R., & Devinney, T. (2010). Why don’t consumers behave ethically? Journal of Consumer Behavior, 9(6), 426–443.

    Article  Google Scholar 

  • Fisk, R., Grove, S., Harris, L. C., Keeffe, D. A., Daunt, K. L., Russell-Bennett, R., & Wirtz, J. (2010). Customers behaving badly: A state of the art review, research agenda and implications for practitioners. Journal of Services Marketing, 24(6), 417–429.

    Article  Google Scholar 

  • Freestone, O., & Mitchell, V. (2004). Generation Y attitudes towards e-ethics and internet-related misbehavior. Journal of Business Ethics, 54(2), 121–128.

    Article  Google Scholar 

  • Fullerton, R. A., & Punj, G. (1998). The unintended consequences of the culture of consumption: An historical-theoretical analysis of consumer misbehavior. Consumption, Markets and Culture, 1(4), 393–423.

    Article  Google Scholar 

  • Fuschillo, G., & Cova, B. (2015). Subverting the market to help other consumers: The ‘la repasse’ phenomenon. Journal of Consumer Behavior, 14(4), 261–269.

    Article  Google Scholar 

  • Gabriel, Y., & Lang, T. (1995). The unmanageable consumer. London: Sage.

    Google Scholar 

  • Giesler, M., & Veresiu, E. (2014). Creating the responsible consumer: Moralistic governance regimes and consumer subjectivity. Journal of Consumer Research, 41(3), 840–857.

    Article  Google Scholar 

  • Gordon, R., Clegg, S., & Kornberger, M. (2009). Embedded ethics: Discourse and power in the New South Wales police service. Organization Studies, 30(1), 73–99.

    Article  Google Scholar 

  • Goulding, C., Shankar, A., & Canniford, R. (2013). Learning to be tribal: Facilitating the formation of consumer tribes. European Journal of Marketing, 47(5/6), 813–832.

    Article  Google Scholar 

  • Harris, L. C., & Daunt, K. L. (2011). Deviant customer behavior: A study of techniques of neutralization. Journal of Marketing Management, 27(7–8), 834–853.

    Article  Google Scholar 

  • Harris, L. C., & Daunt, K. (2013). Managing customer misbehavior: Challenges and strategies. Journal of Services Marketing, 27(4), 281–293.

    Article  Google Scholar 

  • Holdaway, S. (1983). Inside the British police. A force at work. London: Basil Blackwell.

    Google Scholar 

  • Honneth, A. (1996). The struggle for recognition: The moral grammar of social conflicts. Cambridge, MA: MIT Press.

    Google Scholar 

  • Humphreys, A. (2010). Semiotic structure and the legitimation of consumption practices: The case of casino gambling. Journal of Consumer Research, 37(3), 490–510.

    Article  Google Scholar 

  • Jougleux, M., Rouquet, A., & Suquet, J. B. (2013). Les organizations face à la déviance des clients. Économies et Sociétés, série “Économie et Gestion des Services, 14(3/4), 382–399.

    Google Scholar 

  • Lesch, W. C., & Brinkmann, J. (2011). Consumer insurance fraud/abuse as co-creation and co-responsibility: A new paradigm. Journal of Business Ethics, 103(1), 17–32.

    Article  Google Scholar 

  • Luthans, F., Milosevic, I., Bechky, B. A., Schein, E. H., Wright, S., Van Maanen, J., & Greenwood, D. J. (2013). “Reclaiming” anthropology: The forgotten behavioral science in management history commentaries. Journal of Organizational Ethnography, 2(1), 92–116.

    Article  Google Scholar 

  • McCracken, G. (1988). The long interview. Newbury Park, CA: Sage.

    Book  Google Scholar 

  • Mintzberg, H. (1980). Structure in 5’s: A synthesis of the research on organization design. Management Science, 26(3), 322–341.

    Article  Google Scholar 

  • Mitchell, V. W., Balabanis, G., Schlegelmilch, B. B., & Cornwell, T. B. (2009). Measuring unethical consumer behavior across four countries. Journal of Business Ethics, 88(2), 395–412.

    Article  Google Scholar 

  • Moschis, G. P., & Cox, D. (1989). Deviant consumer behavior. Advances in Consumer Research, 16(1), 732–737.

    Google Scholar 

  • Muncy, J. A., & Vitell, S. J. (1992). Consumer ethics: An investigation of the ethical beliefs of the final consumer. Journal of Business Research, 24(4), 297–311.

    Article  Google Scholar 

  • Muñiz, A. M, Jr, & O’Guinn, T. C. (2001). Brand community. Journal of Consumer Research, 27(4), 412–432.

    Article  Google Scholar 

  • Neuendorf, K. (2002). The content analysis guidebook. London: Sage.

    Google Scholar 

  • Nyberg, D. (2008). The morality of everyday activities: Not the right, but the good thing to do. Journal of Business Ethics, 81(3), 587–598.

    Article  Google Scholar 

  • O’Guinn, T. C., & Muñiz, A. M, Jr. (2005). Communal consumption and the brand. In D. G. Mick & S. Ratneshwar (Eds.), Inside consumption: Frontiers of research on consumer motives (pp. 252–272). London: Routledge.

    Google Scholar 

  • Papaoikonomou, E., Valverde, M., & Ryan, G. (2012). Articulating the meanings of collective experiences of ethical consumption. Journal of Business Ethics, 110(1), 15–32.

    Article  Google Scholar 

  • Pecoraro, M. G., & Uusitalo, O. (2014). Conflicting values of ethical consumption in diverse worlds—A cultural approach. Journal of Consumer Culture, 14(1), 45–65.

    Article  Google Scholar 

  • Price, L. L., & Arnould, E. J. (1999). Commercial friendships: Service provider-client relationships in context. Journal of Marketing, 63(4), 38–56.

    Article  Google Scholar 

  • Reynolds, K. L., & Harris, L. C. (2009). Dysfunctional customer behavior severity: An empirical examination. Journal of Retailing, 85(3), 321–335.

    Article  Google Scholar 

  • Rood, V. & Bruckman, A. (2009). Member behavior in company online communities. In Proceedings of the ACM 2009 international conference on supporting group work (pp. 209–218). Sanibel Island, Florida.

  • Rosenbaum, M. S., & Walsh, G. (2012). Service nepotism in the marketplace. British Journal of Management, 23(2), 241–256.

    Article  Google Scholar 

  • Scaraboto, D., & Fischer, E. (2013). Frustrated fatshionistas: An institutional theory perspective on consumer quests for greater choice in mainstream markets. Journal of Consumer Research, 39(6), 1234–1257.

    Article  Google Scholar 

  • Schouten, J. W., & McAlexander, J. H. (1995). Subcultures of consumption: An ethnography of the new bikers. Journal of Consumer Research, 22(June), 43–61.

    Article  Google Scholar 

  • Schutz, A. (1967). The phenomenology of the social world. Evanston: Northwestern University Press.

    Google Scholar 

  • Sebastiani, R., Montagnini, F., & Dalli, D. (2013). Ethical consumption and new business models in the food industry. Evidence from the Eataly case. Journal of Business Ethics, 114(3), 473–488.

    Article  Google Scholar 

  • Sezer, O., Gino, F., & Bazerman, M. H. (2015). Ethical blind spots: Explaining unintentional unethical behavior. Current Opinion in Psychology, 6(December), 77–81.

    Article  Google Scholar 

  • Silverman, D. (2013). Doing qualitative research (4th ed.). London: Sage.

    Google Scholar 

  • Spiggle, S. (1994). Analysis and interpretation of qualitative data in consumer research. Journal of Consumer Research, 21(3), 491–503.

    Article  Google Scholar 

  • Suquet, J. B. (2010). Drawing the line: How inspectors enact deviant behavior. Journal of Services Marketing, 24(6), 468–475.

    Article  Google Scholar 

  • Suquet, J. B. (2011). Quand l’organisation constitue les comportements déviants de ses clients: Les transformations de la fraude à la RATP. Annales des Mines-Gérer et Comprendre, 105(3), 38–49.

    Article  Google Scholar 

  • Van Maanen, J. (2011). Ethnography as work: Some rules of engagement. Journal of Management Studies, 48(1), 218–234.

    Article  Google Scholar 

  • Vitell, S. J. (2014). A case for Consumer social responsibility (CnSR): Including a selected review of consumer ethics/social responsibility research. Journal of Business Ethics, published online.

  • Weber, J. (2011). Au-delà du contrat: La mobilisation du concept de valeur de lien dans la relation sociétaire-mutuelle d’assurance. Le cas Macif. Revue internationale de l’économie sociale: Recma, 321, 62–80.

    Article  Google Scholar 

  • Wirtz, J., & McColl-Kennedy, J. R. (2010). Opportunistic customer claiming during service recovery. Journal of the Academy of Marketing Science, 38(5), 654–675.

    Article  Google Scholar 

  • Wright, S. (2004). The anthropology of organizations. New York: Routledge.

    Google Scholar 

  • Yin, R. K. (2003). Case study research: Design and methods (3rd ed.). Los Angeles: Sage Publications.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Bernard Cova.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Cova, B., Gaglio, G., Weber, J. et al. Organizational Sensemaking of Non-ethical Consumer Behavior: Case Study of a French Mutual Insurance Company. J Bus Ethics 148, 783–799 (2018). https://doi.org/10.1007/s10551-016-3102-1

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-016-3102-1

Keywords

Navigation