Skip to main content
SpringerLink
Log in

The Hunt–Vitell General Theoryof Marketing Ethics: Can it Enhance our Understanding of Principal-Agent Relationships in Channels of Distribution?

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

Abstract

This paper advances the Hunt–Vitell General Theory of Marketing Ethics as a framework for enriching current understanding of both long-term marketing relationships in general, and principal-agent associations specifically. Under economic models of agency theory, manufacturer-distributor relationships are conceptualized as principal-agent associations where both parties are assumed be motivated exclusively by short-term financial self-interest within the logical constraints of zero-sum game conditions. As a general model of ethical decision making and behavior in marketing, the Hunt–Vitell theory illustrates how ethical decisions are predicated not only upon estimations of potential benefits or outcomes (using teleological criteria), but also deontological evaluations which invoke norms and values. Furthermore, the recent ideas advanced in "relationship marketing" perspectives suggest that distribution channel associations premised upon non-zero-sum or symbiotic assumptions may be more effective and more jointly profitable. Based upon the Hunt–Vitell model, propositions are formulated that complement the understanding of agency theory within the context of marketing channel relationships, and thus, may represent a basis for more effective agency selection and interaction in marketing practice.

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

Access this article

Log in via an institution

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

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Amihud, Y. and B. Lev: 1981, ‘Risk Reduction as a Managerial Motive for Corporate Mergers’, The Bell Journal of Economics 12, 605–617.

    Google Scholar 

  • Anderson, E. and H. Gatignon: 1986, ‘Modes of Foreign Entry: A Transaction Cost Analysis and Propositions’, Journal of International Business Studies 17 (Fall), 1–26.

    Google Scholar 

  • Anderson, E. and R. Oliver: 1987, ‘Perspective on Behavior-Based Versus Outcome-Based Salesforce Control Systems’, Journal of Marketing 51 (October), 76–88.

    Google Scholar 

  • Anderson, E. and B. Weitz: 1992, ‘The Use of Pledges to Build and Sustain Commitment in Distribution Channels’, Journal of Marketing Research 29(1), 18–34.

    Google Scholar 

  • Anderson, J. C. and J. A. Narus: 1990, ‘A Model of Distributor Firm and Manufacturer Firm Working Partnerships’, Journal of Marketing 54 (January), 42–58.

    Google Scholar 

  • Baiman, S.: 1990, ‘Agency Research in Managerial Accounting: A Second Look’, Accounting, Organizations and Society 15(4), 341–371.

    Google Scholar 

  • Bauer, T. A. and S. G. Green: 1996, ‘Development of Leader-Member Exchange: A Longitudinal Test’, Academy of Management Review 39(6), 1538–1567.

    Google Scholar 

  • Baumholt, R.C.: 1961, ‘How Ethical Are Businessmen?’ Harvard Business Review 39(6–9), 156–157.

    Google Scholar 

  • Beale, H. and T. Dugdale: 1975, ‘Contracts Between Businessmen: Planning and the Use of Contractual Remedies’, British Journal of Law and Society 2, 45–60.

    Google Scholar 

  • Bergen, M., S. Dutta and O. C. Walker, Jr.: 1992, ‘Agency Relationships in Marketing: A Review of the Implications and Applications of Agency and Related Theories’, Journal of Marketing 56 (July), 1–24.

    Google Scholar 

  • Burns, J. O. and P. Kiecker: 1995: ‘Tax Practitioner Ethics: An Empirical Investigation of Organizational Consequences’, The Journal of the American Taxation Association 17(2), 20–49.

    Google Scholar 

  • Dabholkar, P. A., W. J. Johnson and A. S. Cathey: 1994, ‘The Dynamics of Long-Term Business-to-Business Relationships’, Journal of the Academy of Marketing Science 22(2), 130–145.

    Google Scholar 

  • Demski, J. and G. Feltham: 1978, ‘Economic Incentives in Budgetary Control Systems’, Accounting Review 53, 336–359.

    Google Scholar 

  • Doney, P. M. and J. P. Cannon: 1997, ‘An Examination of the Nature of Trust in Buyer-Seller Relationships’, Journal of Marketing 61 (April), 35–51.

    Google Scholar 

  • Donoho, C. L., M. J. Polonsky, J. Herche and M. J. Swenson: 1999: ‘A Cross Cultural Examination of the General Theory of Marketing Ethics: Does it Apply to the Next Generation of Marketing Managers?’, in S. Smith (ed.), Proceedings of the Seventh Cross Cultural Research Conference (Cancun, Mexico).

  • Dwyer, F. R., P. H. Schurr and S. Oh: 1987, ‘Developing Buyer-Seller Relationships’, Journal of Marketing 51(2), 11–27.

    Google Scholar 

  • Eisenhardt, K. M.: 1988, ‘Agency-and Institutional-Theory Explanations: The Case of Retail Sales Compensation’, Academy of Management Journal 31, 488–511.

    Google Scholar 

  • Eisenhardt, K. M.: 1989, ‘Agency Theory: An Assessment and Review’, Academy of Management Review 14(1), 57–74.

    Google Scholar 

  • Etzioni, Amitai: 1988, The Moral Dimension: Toward a New Economics (The Free Press, New York).

    Google Scholar 

  • Fama, E.: 1980, ‘Agency Problems and the Theory of the Firm’, Journal of Political Economy 88, 288–307.

    Google Scholar 

  • Fama, E. and M. C. Jensen: 1983, ‘Separation of Ownership and Control’, Journal of Law and Economics 26, 301–325.

    Google Scholar 

  • Fein, Adam J. and Erin Anderson: 1997. ‘Patterns of Credible Commitments: Territory and Brand Selectivity in Industrial Distribution Channels’, Journal of Marketing 61(2), 19–34.

    Google Scholar 

  • Frazier, G. L. and K. D. Antia: 1995, ‘Exchange Relationships and Interfirm Power in Channels of Distribution’, Journal of the Academy of Marketing Science 23(4), 321–326.

    Google Scholar 

  • Ganesan, S.: 1994, ‘Determination of Long-Term Orientation in Buyer Seller Relationships’, Journal of Marketing 58 (April), 1–19.

    Google Scholar 

  • Gundlach, G. T, and P. E Murphy: 1993, ‘Ethical and Legal Foundations of Relational Exchanges’, Journal of Marketing 57 (October), 35–56.

    Google Scholar 

  • Hunt, S. D.: 1990, ‘Commentary on an Empirical Investigation of a General Theory of Marketing Ethics’, Journal of the Academy of Marketing Science 18 (Spring), 173–177.

    Google Scholar 

  • Hunt, S. D., L. B. Chonko and James B. Wilcox: 1984, ‘Ethical Problems of Marketing Researchers’, Journal of Marketing Research 21 (August), 309–324.

  • Hunt, S. D. and A. Z. Vasquez-Parraga: 1993, ‘Organizational Consequences, Marketing Ethics, and Salesforce Supervision’, Journal of Marketing Research 30 (February), 78–90.

    Google Scholar 

  • Hunt, S. D. and S. Vitell: 1986, ‘A General Theory of Marketing Ethics’, Journal of Macromarketing 6 (Spring), 5–16.

    Google Scholar 

  • Hunt, S. D. and S. Vitell: 1992, ‘The General Theory of Marketing Ethics: A Retrospective and Revision’, in Quelch and Smith (eds.), Ethics in Marketing (Richard D. Irwin, Chicago).

    Google Scholar 

  • Jarvenpaa, S. L., K. Knoll and D. E. Leider: 1998, ‘Is Anybody Out There? Antecedents of Trust in Global Teams’, Journal of Management Information Systems 14 (Spring) 29–64.

    Google Scholar 

  • Jensen, M. C. and W. H. Meckling: 1976, ‘Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure’, Journal of Financial Economics 3 (October), 305–360.

    Google Scholar 

  • Jeuland, A. P. and S. M. Shugan: 1983, ‘Managing Channel Profits’, Marketing Science 2(3), 239–272.

    Google Scholar 

  • Kavali, S. G., N. X. Tzokas and M. J. Saren: 1999, ‘Relationship Marketing as an Ethical Approach: Philosophical and Managerial Considerations’, Management Decision 37(7), 573–581.

    Google Scholar 

  • Kerr, J. L. and L. Kren: 1992, ‘Effect of Relative Decision Monitoring on Chief Executive Compensation’, Academy of Management Journal 35, 370–397.

    Google Scholar 

  • Kleindorfer, P. R. and R. Sertel: 1979, ‘Profit-Maximizing Design of Enterprises Through Incentives’, Journal of Economic Theory (20), 318–339.

    Google Scholar 

  • Kosnik, R: 1987, ‘Greenmail: A Study of Board Performance in Corporate Governance’, Administrative Science Quarterly 32, 163–185.

    Google Scholar 

  • Laczniak, Gene R. and Patrick E. Murphy: 1985, ‘Incorporating Marketing Ethics Into the Organization’, in Gene R. Laczniak and Patrick E. Murphy (eds.), Marketing Ethics (DC Heath and Company, Lexington, MA), pp. 97–105.

    Google Scholar 

  • Laffont, J. and E. Maskin: 1982, ‘The Theory of Incentives: An Overview’, in W. Hildebrand (ed.), Advances in Economic Theory, Chapter 2 (Cambridge University Press, Cambridge).

    Google Scholar 

  • Lassar, W. M. and J. L. Kerr: 1996, ‘Strategy and Control in Supplier-Distributive Relationships: An Agency Perspective’, Strategic Management Journal 17, 613–632.

    Google Scholar 

  • Li, F., B. Greenberg and T. Li.: 1997, ‘Toward a General Definition of Relationship Marketing’ in W. M. Pride and G. T. Hult (eds.), Proceedings of the American Marketing Association Educator's Summer Educators' Conference: Enhancing Knowledge Development in Marketing 8 (Summer), 238–244.

  • Mayer, R. C., J. H. Davis and F. D. Schoorman: 1995, ‘An Integrative Model of Organizational Trust’, Academy of Management Review 20, 709–734.

    Google Scholar 

  • Mayo, M. A. and L. J. Marks: 1990, ‘An Empirical Investigation of a General Theory of Marketing Ethics’, Journal of the Academy of Marketing Science 18(2).

  • Menguc, B.: 1998, ‘Organizational Consequences, Marketing Ethics and Salesforce Supervision: Further Empirical Evidence’, Journal of Business Ethics 17, 333–352.

    Google Scholar 

  • Mohr, J. and J. R. Nevin: 1990, ‘Communication Strategies in Marketing Channels: A Theoretical Perspective’, Journal of Marketing 54 (October), 36–51, 163–171.

    Google Scholar 

  • Morgan, R. M. and S. D. Hunt: 1994, ‘The Commitment-Trust Theory of Relationship Marketing’, Journal of Marketing 58(3) (July), 20–38.

    Google Scholar 

  • Murphy, Patrick and Gene R. Laczniak 1981, ‘Marketing Ethics: A Review with Implications for Managers, Educators, and Researchers’, Review of Marketing 1981, 251–266.

  • Murphy, P. E., G. Wood and G. R. Laczniak: 1996, ‘Relationship Marketing = Ethical Marketing’, in Research Methodologies for the New Marketing, Vol. 204 (ESOMAR Publication Series, Amsterdam), pp. 21–40.

    Google Scholar 

  • Nevin, J. R.: 1995, ‘Relationship Marketing and Distribution Channels: Exploring Fundamental Issues’, Journal of The Academy of Marketing Science 23(4), 327–334.

    Google Scholar 

  • Oviatt, B. M.: 1988, ‘Agency and Transaction Cost Perspectives on the Manager-Shareholder Relationship: Incentives for Congruent Interests’, Academy of Management Review 13, 214–225.

    Google Scholar 

  • Parvatiyar, A. and J. N. Sheth: 1994. ‘Paradigm Shift in Marketing Theory and Approach: The Emergence of Relationship Marketing’, in J. Sheth and A. Parvatiyar (eds.), Relationship Marketing: Theory, Methods, and Applications, Section I, Session 2.1. (Center for Relationship Marketing, Emory University, Atlanta, GA).

  • Rallapalli, K. C., S. J. Vitell, F. A. Wiebe and J. H. Barnes: 1994, ‘Consumer Ethical Beliefs and Personality Traits: An Exploratory Analysis’, Journal of Business Ethics 13, 487–495.

    Google Scholar 

  • Robicheaux, R. A. and J. E. Coleman: 1994, ‘The Structure of Marketing Channel Relationships’, Journal of the Academy of Marketing Science 22(1), 38–51.

    Google Scholar 

  • Rotter, J. B.: 1971, ‘Generalized Expectancies for Interpersonal Trust’, American Psychologist 26, 443–452.

    Google Scholar 

  • Rotter, J. B.: 1980, ‘Interpersonal Trust, Trustworthiness, and Gullibility’, American Psychologist 35, 1–7.

    Google Scholar 

  • Shavell, S.: 1979, ‘Risk Sharing and Incentives in the Principal and Agent Relationship’, Bell Journal of Economics 10, 54–73.

    Google Scholar 

  • Shugan, S. M.: 1985, ‘Implicit Understandings in Channels of Distribution’, Management Science 31(4), 435–460.

    Google Scholar 

  • Smith, J.B. and D. W. Barclay: 1997, ‘The effects of Organizational Differences and Trust on the Effectiveness of Selling Partner Relationships’, Journal of Marketing (January), 2–18.

  • Takala, T., and O. Uusitalo: 1996, ‘An Alternative View of Relationship Marketing: A Framework for Ethical Analysis’, European Journal of Marketing 30(2), 45–60.

    Google Scholar 

  • Turban, D. B. and A. P. Jones: 1988, ‘Supervisor-Subordinate Similarity: Types, Effects and Mechanisms’, Journal of Applied Psychology 73, 228–234.

    Google Scholar 

  • Vaquez-Parraga, A. Z. and L. Comer: 1999, ‘Organizational Framework for Sales Ethics Management’, Research in Marketing 15, 139–174.

    Google Scholar 

  • Vaquez-Parraga, A. Z. and L. Comer: 1996, ‘Control Systems and Marketing Ethics’, Working Paper, Institute for International Business Research, The University of Texas Pan American, Edinburg, TX.

  • Ventis, K. A. and P. N. Ghauri: 2000, ‘The Importance of Service Quality on Customer Retention: An Empirical Study of Business Service Relationships’, Proceedings of the AMA International Marketing Educators' Conference: Marketing in a Global Economy (Buenos Aires, Argentina), pp. 215–224.

  • Vitell, S. and J. Muncy: 1992, ‘Consumer Ethics: An Empirical Investigation of Factors Influencing Ethical Judgments of the Final Consumer’, Journal of Business Ethics 11, 585–597.

    Google Scholar 

  • Walsh, J. P. and J. J. Seward: 1990, ‘On the Efficiency of Internal and External Corporate Control Mechanisms’, Academy of Management Review 15, 421–458.

    Google Scholar 

  • Williamson, O. E.: 1975, Markets and Hierarchies: Analysis and Antitrust Implications (Free Press, New York).

    Google Scholar 

  • Weitz, B. A. and S. D. Jap: 1995, ‘Relationship Marketing and Distribution Channels’, Journal of the Academy of Marketing Science 23(4), 305–320.

    Google Scholar 

  • Zusman, P. and M. Etgar: 1981, ‘The Marketing Channel as an Equilibrium Set of Contracts’, Management Science 27(3), 284–302.

    Google Scholar 

Download references

Authors
  1. Leslie J. Vermillion
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Walfried M. Lassar
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Robert D. Winsor
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Vermillion, L.J., Lassar, W.M. & Winsor, R.D. The Hunt–Vitell General Theoryof Marketing Ethics: Can it Enhance our Understanding of Principal-Agent Relationships in Channels of Distribution?. Journal of Business Ethics 41, 267–285 (2002). https://doi.org/10.1023/A:1021284922440

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1021284922440

Search

Navigation