Indian Journal of Science and Technology

Abstract

Objectives: To explore the effect of consumer’s demand of business ethics on consumption of a product for a tourism company which implements ethical management strategies like corporate social responsibility. Methods/Statistical Analysis: The proposed model suggests that the higher consumers demand for business ethics, the more they are involved in purchasing a CSR tourism product. It also indicated that trust towards a CSR travel agency has an impact on consumer’s involvement in purchasing its product. The data was retrieved from an on-line survey focused on tourists who had travel experience, and a regression analysis was performed using SPSS statistics. Findings: Findings show that the higher a consumer’s demand for business ethics, the more they are involved in purchasing a CSR tourism product with complete mediation by trust towards a CSR travel agency. The consumer’s demand for ethics has a positive effect on the purchase of CSR tourism products through mediation of trust in a travel agency. The results of the analysis, in relation to the importance of ethical management on travel companies that act as producers and suppliers, quantitatively show that producers of travel products center on ethical management practices in a way that meaningfully distinguishes it from other research. Therefore a travel agency should attempt to establish sustainable management strategies, which are trusted by its consumers, through various means of communication. Application/Improvements: The rapid development of ICT has caused travel agencies to recognize the importance of strategic marketing. We have entered an age where the strategic management of travel agencies rooted in ethical management is a necessity. Further research on these types of consumer-perceived issues and behavior is called for. 

Keywords: Business Ethics, Ethical Management, Involvement, Tourism, Trust, Travel Agency