Reputation building: beyond our control? Inferences in consumers' ethical perception formation

A company or brand's reputation is inherently linked to how ethically/unethically it is perceived to conduct its business. While it is generally assumed that consumers' ethical perceptions are either built on first‐hand experiences or other concrete information, this research demonstrates that reputation can be influenced by processes outside the company's direct control. The article is based on interviews with general consumers and presents the finding that, in the absence of concrete information or personal experience, consumers may infer ethical beliefs. Four distinct types of cues may instigate ethical inferences and act as surrogate indicators: product‐, company‐, category‐ and origin‐related cues. A framework that illustrates the hierarchical structure of the various cues depending on their level of specificity is presented. The results suggest that controlling corporate reputation becomes increasingly challenging. Implications for marketing practitioners and general managers are discussed and further research opportunities highlighted.