Abstract

Purpose: This study aims to examine how perceived distribution equity influences local economic participation and visitor satisfaction in tourist shopping zones, with a particular focus on the moderating role of ethical shopping awareness in Yogyakarta, Indonesia. Research design, data and methodology: A quantitative survey was conducted with 400 domestic and international tourists using a seven-point Likert scale. SmartPLS 4 was employed to assess the structural relationships between perceived distribution equity, local economic participation, visitor satisfaction, and ethical shopping awareness. Qualitative data from stakeholder interviews were also integrated to support interpretation. Results: Perceived distribution equity significantly enhances both local economic participation and visitor satisfaction. Local participation also directly affects visitor satisfaction. Ethical shopping awareness moderates the relationship between perceived equity and visitor satisfaction, strengthening the positive association. Interviews with local vendors and tourism managers confirmed real-life challenges and reinforced the statistical findings. Conclusions: Fair and inclusive retail practices contribute to stronger local engagement and improved visitor experiences. Destination managers are encouraged to prioritize distribution equity and promote ethical shopping behavior to support sustainable tourism outcomes.