Merchandising/Marketing/Retailing: Management

Investigating the Relationship between Moral Identity and Consumer Fraudulent Behavior 

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Abstract

Consumer fraud continues to be a major contributor to retail loss in the United States, yet existing prevention strategies often overlook the psychological mechanisms that drive unethical consumer actions. This study examines how moral identity, through its internalization and symbolization dimensions, influences consumer fraudulent behavior, with moral disengagement and trait self-deception serving as mediating processes. Drawing on moral identity theory and moral disengagement theory, the research investigates why some consumers justify fraudulent acts such as return, receipt, and rebate fraud. Using survey data from 306 consumers in two major retail crime regions, structural equation modeling reveals that moral identity internalization reduces fraud by lowering moral disengagement, whereas moral identity symbolization increases fraud through heightened disengagement and self-deception. These findings highlight the dual nature of moral identity and its implications for retail loss prevention. The study underscores the need for behaviorally informed interventions that promote genuine moral internalization to curb consumer fraud.

Keywords: moral identity, moral disengagement, consumer fraud

How to Cite:

Sadachar, A., Manchiraju, S. & S., A., (2025) “Investigating the Relationship between Moral Identity and Consumer Fraudulent Behavior ”, International Textile and Apparel Association Annual Conference Proceedings 82(1). doi: https://doi.org/10.31274/itaa.21676