Consumers’ forgiveness after brand transgression: the effect of the firm’s corporate social responsibility and response

Abstract

In this article we examine the interplay between the severity of a brand transgression, consumers’ prior awareness of the firm’s corporate social responsibility (CSR) initiatives, and the firm’s response (apology vs. apologia) on the rates of forgiveness among consumers. Results of two experiments show that consumers’ prior awareness of the firm’s CSR initiatives significantly differentiates apologia from apology, with the effect of apology on consumer forgiveness being more apparent when brand transgression severity is mild. Results also show that consumer forgiveness mediates the effect of brand transgression severity, firm response, and consumer awareness on repurchase intentions. In this way, the study enables managers to determine whether or not an apology or apologia will be sufficient to solicit consumer forgiveness, using information about the levels of awareness of CSR among consumers.     

The effectiveness of nutritional information on foodservice companies’ corporate social responsibility

The objective of this study is to investigate the effect of nutritional information disclosure and healthful menu context in the relationship of nutritional knowledge and consumers’ perceived CSR toward a foodservice company. Furthermore, the relationship among CSR, brand image, attitude and purchase intention was investigated. The study was designed with scenario experimental questionnaires: 3 (different nutritional information levels: no information, calorie only and content with six segments of nutritional information) X 2 (menu context: healthy or unhealthy menu context). Confirmatory factor analyses, structural equation modelling and analysis of variance analysis were used in order to examine the study hypotheses. The results of this study indicate that consumers’ nutritional knowledge helps increase consumers’ perceived CSR which has an impact on brand image, attitude and behavioural intention, however, no moderating effects of nutritional knowledge and healthful menu context were found. Furthermore, purchase intention was significantly affected by CSR, attitude and brand image. Therefore, disclosure of nutritional information and offering healthful menu would help restaurants gain a positive CSR which also would help them to expect consumers’ favourable purchase intention.     

Effects of co‐creation claim on consumer brand perceptions and behavioural intentions

Increasingly often, companies ‘co‐create’ with consumers in open innovation practices to develop new products more effectively. Little is known about how co‐creation affects consumer brand perceptions in the mass market. We hypothesize that co‐creative brands – as opposed to non–co‐creative brands – are perceived as more authentic and sincere, and are associated with relatively positive behavioural intentions. A between‐subjects experiment was conducted to test these hypotheses in an online panel of consumers who did not take part in co‐creation. The experiment had a 3 (control vs. co‐creation vs. co‐creation supported with some visual proof) × 2 (well‐known existing brand vs. fictitious brand) design. Quantitative data analyses (n = 530) confirmed that for both brands, co‐creation affects brand personality perceptions directly and behavioural intentions indirectly. This study shows that co‐creating with consumers can be a strategic method to positively influence product perceptions and behavioural intentions.     

How far can brands go to defend themselves? The extent of negative publicity impact on proactive consumer behaviors and brand equity

Negative publicity, defined as the public disclosure of a problematic incident associated with a brand, is a critical issue for fashion brands, as it vitiates the image of targeted brands and drives consumers’ voice and exit behaviors. Despite the impact of negative publicity, few studies have compared the impact of product‐related versus personnel‐related negative publicity, or explored the extent to which brands’ coping strategies can prevent consumers’ anti‐brand behavioral intentions and recover brand equity. This study used multivariate analyses of variance to analyze responses from 594 American consumers, which revealed that when negative publicity is about a product‐related issue, none of the brand's different recovery efforts are effective in decreasing consumers’ voice and exit intentions and protecting brand equity. However, for a personnel‐related issue, functional and informational recovery strategies were effective in decreasing consumer voice and exit intentions, and affective, functional, and informational recovery strategies positively impacted most domains of brand equity (brand judgement, brand feelings, and brand resonance). The following analysis of variance and post hoc analyses revealed the comparative effectiveness of specific recovery types. Discussions and implications of the findings are provided.     

Determinants of Consumers’ Purchase Intentions of Organic Vegetables: Some Insights from Malaysia

This study tests the mediating effects of corporate social responsibility (CSR), product image, and corporate reputation on the relationships between green marketing awareness and consumers’ purchase intentions of organic vegetables. Data from 200 valid questionnaires was analyzed utilizing a partial least squares approach. Results show that product image was confirmed as the leading factor that partially mediated the influence of consumer green marketing awareness on consumers’ purchase intentions of organic vegetables, and this was followed by CSR, but that corporate reputation was not established as a mediator. Marketing managers should, therefore, develop various effective strategies to communicate their companies’ product image, embracing green marketing practices in order to increase market awareness, and providing positive recommendations to friends and relatives via various marketing communication channel including the short message service (SMS), emails, and social networking sites (SNS).     

Explaining behavioural intentions toward co-branded products

The authors develop a conceptual model of factors that determine behavioural intentions to buy co-branded products. The model is an extension of the Simonin/Ruth model. Structural equation modelling serves to test the hypotheses. Product fit has the strongest effect (of the exogenous factors) on behavioural intention. Marketers should gain a detailed understanding of consumers' perceptions of product and brand fit with partner brands and establish positive associations before leveraging a brand as a co-branded product. Buying intentions for co-branded products can be increased by marketing to brand-conscious consumers, consumers with variety-seeking tendencies, and highly involved consumers.     

The determinants of foreign product preference amongst elite consumers in an emerging market

By integrating the Theory of Reasoned Action (TRA) and self-image congruence, this study seeks to investigate elite consumers’ purchase intentions towards products made in foreign countries. The data were gathered via a survey conducted amongst 316 Sri Lankan elite consumers across two product categories. The findings demonstrate that consumers’ attitudes towards products made in foreign countries are driven by subjective norms and self-image congruence. The study shows that self-image congruence is the stronger predictor of consumers’ attitudes towards products made in foreign countries. Also, the effect of self-image congruence on consumers’ purchase intentions is partially mediated by their attitudes towards products made in foreign countries.     

Addressing negative product attribute reviews: The case of advertising product attributes and corporate social responsibility information

Negative product reviews are bad for businesses. They can adversely affect product sales, brand evaluations, and brand loyalty. To attend to negative reviews, one approach is through advertising products or company virtues. The current study examines the efficacy of different advertising approaches (core product attribute advertising vs. non-core product attribute advertising vs. corporate social responsibility [CSR] advertising) in helping dilute the negative effect of dissimilar negative product attribute reviews (negative core product attribute reviews vs. negative non-core product attribute reviews). Through four experiments, we found that when the non-core attribute of a product had negative reviews, a core attribute advertising approach weakened the effect of negative reviews. However, CSR advertising was less effective. Furthermore, when the core attributes of a product had negative reviews, a non-core attribute advertising effort did not weaken, but actually augmented the impact of negative reviews. In addition, when the core attributes of a product received negative reviews, CSR advertising decreased the influence of negative reviews. Our findings provide theoretical and managerial implications for managing negative online reviews of product attributes.     

Can good news be bad? The role of brand communication strategy and brand commitment in the announcement of product improvements

Although product improvements are usually good news, this research reveals that brands can be affected negatively depending on the level of brand commitment and on the type of communication strategy chosen by the brand. More specifically, this research examines how high-commitment consumers react to product improvements, and how these consumers respond to a communication strategy in which a brand admits that the new product version improves upon a previous inferior product (herein referred to as ‘honesty strategy’). Results of an online study reveal that product improvement is perceived more negatively by high- (compared to low-) commitment consumers, and that these consumers react more negatively and attribute manipulative intent when the brand uses an honesty strategy. This research shows that brands need to be cautious in communicating product improvements to consumers, particularly to its most committed ones. An admission that a product improvement significantly enhances the quality of a previous (inferior) product may backfire with committed consumers.     

Consumer acceptance of a revolutionary technology-driven product: The role of adoption in the industrial design development

Understanding how consumers adopt a state of the art product is important for the development and marketing of innovative products. The purpose of this study is to examine factors that affect consumer intentions to use a revolutionary technology-driven product (RTP). The research integrates two innovation adoption models, the Unified Technology Acceptance and Utilization Theory (UTAUT) and the Task-Technology Fit (TTF) model with two antecedents of consumer characteristics: consumer innovativeness and perceived value of a new product. The study examines consumer responses to an unfamiliar product, the TEASER which is a conceptual digital cookbook that offers taste sampling, thereby providing an online food-tasting experience. Consumers who are prone to innovativeness and who perceive value in a RTP’s aesthetics are able to discern the conditions that support their intent to use such a product. The resulting model expands the UTAUT and TTF theories by showing that UTAUT variables mediate between the variables of TTF and adoption intentions. These results support the need for nonlinear industrial development processes involving consumers.     

Effects of metaphoric advertising among mainland Chinese consumers

An experiment was conducted among mainland Chinese consumers in order to determine the effects of metaphors in illustrations and headlines on advertisement and brand attitudes and behavioural intentions for symbolic and utilitarian products. The results showed that metaphors had differing effects depending on product type and whether they were used in illustrations or the headlines. The use of metaphors in headlines for symbolic products generally resulted in less favourable attitudes and behavioural intentions than non-metaphoric headlines. However, the use of a non-metaphoric headline with a metaphoric illustration resulted in the most favourable attitudes and behavioural intentions, while the use of metaphors in both advertisement elements was the least effective. In contrast, metaphoric headlines for utilitarian products enhanced attitudes and behavioural intentions more than non-metaphoric headlines. No superiority of metaphoric illustrations was observed.     

Out-of-stock,sold out,or unavailable? Framing a product outage in online retailing

Terms, such as “out-of-stock,” “sold out,” and “unavailable” are commonly used by retailers to communicate a product or brand outage. Although these terms are technically equivalent, prior research on product outage and product scarcity suggest that they may be interpreted and processed differently by consumers. The present research investigated whether the manner in which a product outage was framed elicited different consumer behavioral intentions, attributions, and perceptions in the context of online retailing. Data were collected by means of an online experiment. The experiment incorporated a hypothetical scenario approach in which research participants were asked to react to a particular combination of treatment and blocking factors. Results demonstrated that ceteris paribus, framing a product or brand outage as “sold out” produces fewer negative product and website reactions than does framing it as “out-of-stock” or “unavailable.”     

Consumers' response to other consumers' participation in new product development

In this paper, we investigate how consumers react to information that the brand has involved other consumers in the development of its new product. More specifically, we investigate how the participation of other consumers in either the ideation, where consumers come up with product ideas, or selection, where consumers select which out of many products the brand should produce and market, impacts on consumers' evaluations of the product and perceptions of the brand. Drawing from the literatures on brand schema and congruity, we hypothesize that by way of its effects on perceived brand uniqueness and brand attribution, consumer participation in new product ideation (selection) impacts more favorably on product and brand ratings when the product is incongruent (congruent) with the brand. An experimental study with 386 consumers supports the hypotheses.     

Does product involvement drive consumer flow state in the AR environment? A study on behavioural responses

Understanding consumers’ behavioural responses is crucial to improve the usage of augmented reality (AR) by retailers. Both in the online and offline retail market, AR enhances consumers’ shopping experiences by offering them enjoyable and immersive information about products and services. This paper explores consumers' behavioural responses by measuring the role played by product involvement in affecting the AR flow experience. To this end, the study employs a quantitative approach based on data collected from August to September 2022. Results show that consumers' involvement with products affects their AR flow experience, along with their behavioural intentions in terms of purchase intention and intention to visit the retailer’s website and recommend or share the experience. In addition, the latter two variables mediate the relationship between the AR flow experience and loyalty, showing interesting insights on high-body-involvement products. The paper ends by highlighting the main theoretical and managerial implications of these results, along with the scope for further research.     

Enhancing digital entertainment through personalization: The evolving role of product placements

This research tests a model of the effects of personalized product placements on consumer preference, both for the embedded brand and the digital entertainment product in which that brand is embedded. The latter has yet to be examined in the traditional product placements literature. The results of two studies conducted in the domain of eBooks are presented. Evidence suggests that when pre-existing rankings of brands were systematically collected and used to design personalized product embeds, participants were willing to pay more for the eBook when it contained a favourably (vs. unfavourably) ranked brand, but only when the brand embed was subtle (as opposed to obvious). Study 2 also finds that personalized product placements enhanced consumers’ recall of, and probability of choosing the embedded brand. Results suggest that both the digital entertainment product and the embedded brand can benefit from the strategic use of personalized product placements.     

Augment yourself through virtual mirror: the impact of self-viewing and narcissism on consumer responses

Virtual mirror, an increasingly popular application of augmented reality, allows consumers to view their visages overlaid with product images on digital displays. The authors of this study examine how augmented reality technology affects consumers’ brand perceptions and purchase intentions. Study 1, using a real brand, demonstrates that consumers tend to form higher self-brand connections and purchase intention when viewing themselves trying a product via a virtual mirror, rather than when viewing professional models wearing the product. Study 2, using a fictitious brand, reveals that narcissistic participants show pronounced positive self-viewing effects, but non-narcissistic participants show attenuated effects. Implications for digital marketers are discussed.     

Exploring Brand Personality–Celebrity Endorser Personality Congruence in Celebrity Endorsements in the Indian Context

The objective of the research reported in this paper was to develop and test a model of brand personality–celebrity endorser personality congruence and its impact on consumers’ attitudes and intentions. In particular, the study drew on social adaptation and attribution theories to develop hypotheses related to the impact of this congruence on consumers’ perceptions of endorser credibility and suitability, and the subsequent impact of these perceptions on consumers’ attitudes and intentions. The study was motivated by recent attention being paid to the importance of personality in choosing celebrities for product endorsements and the fact that the brand personality–celebrity endorser personality congruence has not been explored before. The model was tested based on data obtained from a sample of participants in India. Results from path analyses indicated a positive and significant impact of personality‐based congruence on endorser credibility and suitability, which, in turn, positively and significantly impacted ad believability. Ad believability in turn significantly impacted attitude toward the ad, which had a significant impact on brand attitude and purchase intentions. Research and managerial implications are discussed, as are directions for future research.     

Private labels versus national brands: The effects of branding on sensory perceptions and purchase intentions

Consumers increasingly consider private labels to be as good as national brands. This research raises the question of whether national brands and private labels equally affect consumers’ sensory perceptions and purchase intentions. The results of two studies show that consumers reverse their evaluation of private labels (vs. national brands) when tasting the product in an informed (vs. blind) condition. When consumers are not aware of brand names, they indicate better taste and higher purchase intentions for private labels. However, the opposite is true when they try products in an informed condition. We discuss the implications for private labels and national brands.     

Company reputation and its influence on consumer trust in response to ongoing CSR communication

There is considerable disagreement in academic scholarship and beyond as to whether, in cases of bad reputations, companies will want to communicate corporate social responsibility (CSR) activities because this kind of communication is likely to increase consumers’ skepticism. In this regard, the two empirical studies discussed in this article examine the influence of prior company reputation on consumers’ trust in response to CSR communication in general and the development in response to continuous CSR activities and their ongoing communication by companies as well as by the media in particular. The two studies show that consumers’ trust in companies’ CSR activities increases after a second presentation of information by companies even in instances when companies had prior negative reputations. The second study in particular fills a gap in the literature on underlying mechanisms of consumers’ reactions to CSR communication. The results suggest that companies with prior negative reputations do not need to remain silent about their CSR activities; instead, CSR communication can help improve consumers’ trust in companies. However, the findings of these two studies also suggest that this positive development is short-lived. Consumers’ developing trust in companies’ CSR activities decreases significantly if they are exposed to negative information on these companies.     

If all their products seem the same,all the parts within a product seem the same too: How brand homogeneity polarizes product experiences

Many different factors affect brand homogeneity, including the different products associated with a brand, how they are made, and how they are branded. How does the perceived homogeneity of a brand’s offered products, in turn, affect consumers’ experiences with those products? Nine experiments reveal that consumers have more polarized judgments of product experiences when the sampled products are perceived to belong to more homogeneous brands. When a consumption experience is positive, the consumer has an even more positive experience when they think the sampled product came from a homogeneous brand; however, when a consumption experience is negative, the consumer has an even more negative experience when they think the sampled product came from a homogeneous brand. This polarization occurs because the individual product inherits the brand-level quality of perceived internal consistency—when a brand seems homogeneous (i.e., consisting of homogeneous products), consumers also perceive any individual product from the brand as similarly consisting of homogeneous ingredients or parts. We suggest that brand homogeneity leads to selective processing of individual product experiences, which makes products seem more coherent, products rated faster, and ratings of different product ingredients or features more highly correlated. The perception that all of the parts within the individual sampled product are homogeneous in quality polarizes judgments of the product experience.