Vol. 2, Issue 5, Part E (2016)

Abstract
In today's heightened foreign investment flow and increased competitive pressure, the implications of ethical behavior for FDI companies have become a very important determinant of the companies’ success. The study empirically assessed the interference of marketing ethics in customer attraction, loyalty, and financial performance. Drawing on formulation of conceptual framework; hypothesized that companies with a strong ethical identity achieve greater degree of customer attraction and loyalty, which in turn, has a positive effect on the financial performance of FDI companies. In order to analysis this causality; the study has collected data from 353 customers through Likert scaling questionnaires and then used structural equation modeling (SEM). Specifically, it employed PCA, CFA and then path analysis. The model has been built and tested for fit; the model fit indices were chi-square to degree of freedom ration, RMSEA, SRMR, TLI and CFI. The SEM estimation result revealed the value of causal relationship between variables. As a result, marketing ethics practices was perceived as an important direct predictor of customer attraction and loyalty as well as to profitability. However, it revealed that, customer attraction and loyalty in turn has not a significant positive effect on the profitability of FDI companies.