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.     

Consumers’ relationships with brands and brand communities – The multifaceted roles of identification and satisfaction

This study integrates consumer-brand identification and customer satisfaction as core relationship drivers to study their interrelationships as well as the effects on customer loyalty and word-of-mouth communication. Considering multiple interacting targets of identification in brand communities, the empirical study unfolds the multifaceted, context-specific relevance of identification and satisfaction: While the effect of identification on brand loyalty is mediated by customer satisfaction, satisfaction has no significant effect on community loyalty. Moreover, brand communities are particularly useful for gaining new customers, whereas no increase in brand loyalty could be found. Managers are generally advised to specify constructs of interest related to different relevant targets of identification.     

Consumers’ technology-facilitated brand engagement and wellbeing: Positivist TAM/PERMA- vs. Consumer Culture Theory perspectives

In recent years, growing attention has been devoted to consumer engagement with brands through emerging technological (e.g., social media/artificial intelligence-based) platforms. However, despite important advances, much remains unknown regarding the effect of consumers’ technology-facilitated brand engagement (CTFBE) on their wellbeing, thus posing an important research gap. To explore this gap, we first define CTFBE as a consumer’s boundedly volitional resource investment in technology-mediated brand interactions. We next outline two approaches to CTFBE and its effect on wellbeing. First, adopting a positivist approach, we propose a framework that incorporates the Technology Acceptance Model (TAM)-informed CTFBE antecedents of consumer-perceived technology usefulness and -ease-of-use, in addition to goal salience and network position. In turn, we contend that CTFBE affects the PERMA-based consumer wellbeing facets of Positive Emotions, Relationships, Meaning, and Accomplishments. Second, in adopting Consumer Culture Theory (CCT), we address CTFBE-related wellbeing from sociological, anthropological, and cultural perspectives. We outline CCT’s importance for CTFBE¹ in the following areas: (i) brand/consumption communities, (ii) consumption myths, rituals, and practices, and (iii) consumption and identity issues. Finally, we introduce the papers contained in this Section and offer an agenda for further research.     

Chatbots or me? Consumers’ switching between human agents and conversational agents

With the application of artificial intelligence (AI) technology in organizational frontlines, customers' service experiences have begun to shift from interactions with service personnel to those with technology. However, only a few studies have explored customers' behavioral switch from human-mediated services to technology-mediated ones with regard to the application of AI in frontline services. Based on the push–pull mooring framework, this study explored the determinants that affect consumers’ behavioral switch from using human agents to using AI-based conversational agents. Data collected from 441 users of banking services were analyzed using structural equation modeling. The findings reveal that both push effects—namely, low empathy and low adaptability—and pull effects, including anytime/anywhere connectivity, association, visibility, and personalization, have positive influences on switching behavior. Finally, in addition to having a direct influence on switching behavior, frequency of service use positively moderated the relationship between pull effects and switching behavior.     

Consumers’ Sensorical Product Evaluation and Perception

The aim of the research was to determine consumer perceptions of meat products regarding their origin and the potential impact of their origin on the sensory evaluation of other meat properties. Data were collected during the experiment. By testing the correlation model with multiple analyses of variance for repeated measures, it was determined that there was a statistically significant correlation between the factors. The important contribution of the research is the surveyed issue and the approach to researching the impact of product origin on scientific field of marketing and field of consumer behavior. The research represents a deeper investigation of impact of country-of-origin (COO) on consumer perceptions. An integrated approach to the research of the impact of meat origin was chosen to form interlinks between meat origin and its other sensorical properties.     

Consumers’ privacy calculus: The PRICAL index development and validation

Although collecting personal information about consumers is crucial for firms and marketers, understanding of when and why consumers accept or reject information collection remains limited. The authors conceptualize a privacy calculus that represents a consumer’s trade–off of the valence and uncertainty of the consequences of the collection, storage, and use of personal information. For example, usage-based car insurance requires drivers to share data on their driving behavior in exchange for a discount (certain benefit) but at the risk of third parties intercepting location data for malicious use (uncertain disadvantage). Building on this conceptualization, the authors develop the privacy calculus (PRICAL) index. They empirically confirm the validity of the items (Study 1) and the index as a whole (Study 2). The PRICAL index is generally applicable and improves the explanation of behavioral intentions (Study 2) and actual behavior (Study 3), compared with currently used constructs (e.g., privacy concern, trust). Overall, the PRICAL index allows managers to understand consumers’ acceptance of information collection regarding financial, performance, psychological, security, social, and time-related consequences, which the authors demonstrate using the top five most valuable digital brands (Study 4).     

The role of brand exposure and experience on brand recall—Product durables vis-à-vis FMCG

The purpose of this study was to examine the role of brand exposure and experience on brand recall, mediated by three affectional drivers: brand trust, brand image and self-image congruence. The study distinguishes between an individual consumer׳s brand exposure and experience, and how these impact brand recall. Using original data collected from a survey of 219 consumers, brand recall models in two product categories (Fast Moving Consumer Goods FMCG and durable goods) were tested. Structural equation modelling (SEM) was applied, resulting in models for the two types of goods, establishing notable differences between durables and FMCGs. Experience influences brand recall in durable goods while brand recall is established via exposure for fast-moving consumer goods. This suggests that consumers are better able to recall durable goods brands if they have personally used them, while consumers of FMCG are more heavily influenced by advertising. Our study also established that brand trust has a significant role in mediating both of these relationships. Ultimately, the study establishes key differences between the brand recall of product categories, as well as the mediating role of brand trust, providing a framework for future brand recall research.     

The candidate experience: Is it damaging your employer brand?

The importance of the candidate experience has only recently gained attention as the war for talent ensues. Despite its importance, there is a paucity of research examining the exchange relationship between the job candidate and the organization during the recruitment process. This article presents a model—illustrating the connections and exchanges made among an organization, the job candidate, and the organization’s recruitment process—that forms the candidate experience and, in turn, affects the employer’s brand either positively or negatively. Based on this framework, guidelines are presented to assist organizations in ensuring a positive candidate experience that will result in the strengthening of the employer brand and improving recruitment and business outcomes. Some of these business outcomes include strengthening relationships with customers and investors, referring friends to the company, and participating in future searches conducted by the organization.     

Consumers’ Perceptions of Corporate Social Responsibility: Scale Development and Validation

Researchers and companies are paying increasing attention to corporate social responsibility (CSR) programs and the reaction to them by consumers. Despite such corporate efforts and an expanding literature exploring consumers’ response to CSR, it remains unclear how consumers perceive CSR and which “Gestalt” consumers have in mind when considering CSR. Academics and managers lack a tool for measuring consumers’ perceptions of CSR (CPCSR). This research explores CPCSR and develops a measurement model. Based on qualitative data from interviews with managers and consumers, the authors develop a conceptualization of CPCSR. Subsequently, model testing and validating occurs on three large quantitative data sets. The conceptualization and the measurement scale can assist companies to assess CPCSR relative to their performance. They also enable managers in identifying shortcomings in CSR engagement and/or communication. Finally, the paper discusses implications for marketing practice and future research.     

Consumers’ Preferences and Attitudes Toward Local Food Products

In recent years, consumers’ interest in local food has significantly increased. Several studies in the agricultural economics and marketing literature have analyzed mainly consumers’ preferences for local food products. In this study, we perform a consumer segmentation with regard to consumer behavior toward local food. We collected data from a survey conducted during summer 2010 in Naples, South Italy. Consumer segments were identified taking account of five aspects: (1) food consumption styles; (2) perception of local food; (3) purchasing motives; (4) perceived quality of local food; and (5) sociodemographic characteristics. They could be profiled as ethnocentric consumers, environmentalists, strict localists, and quality labeling oriented.     

How does consumers' Perception of Sports Stars' Personal Brand Promote Consumers’ brand love? A mediation model of global brand equity

Previous research on the sports marketing of global brands has focused mainly on the sponsorship of sporting events and the endorsement of products by athletes. This study reveals the unexamined effect of the impact of sports stars' personal brand on global brand equity and consumers' brand love. Based on global consumer culture (GCC) theory and self-expansion theory, this paper examines the influence of sports celebrities' personal brand on consumers' perceptions of global brand equity and brand love. Using survey data from 372 users of “HUPU”, our results revealed that the use of sports stars' personal brand (attractiveness, expertise, and congruence) was positively related to global brand equity and brand love. Belief in global brand citizenship has a full mediating effect between attractiveness and brand love but a partial mediating effect between expertise, congruence and brand love. Product quality partially mediates the relationship between expertise and brand love. These findings suggest that it is appropriate to use sports stars' personal brand to build global brand equity and increase consumers’ brand love.     

Consumers’ Perception and Misperception of Market Leadership and Market Pioneership

Abstract

Ever since Veblen and Simmel, luxury has been synonymous with conspicuous consumption. In this conceptual paper we demonstrate the rise of inconspicuous consumption via a wide-ranging synthesis of the literature. We attribute this rise to the signalling ability of traditional luxury goods being diluted, a preference for not standing out as ostentatious during times of economic hardship, and an increased desire for sophistication and subtlety in design in order to further distinguish oneself for a narrow group of peers. We decouple the constructs of luxury and conspicuousness, which allows us to reconceptualise the signalling quality of brands and the construct of luxury. This also has implications for understanding consumer behaviour practices such as counterfeiting and suggests that consumption trends in emerging markets may take a different path from the past.     

Product Touch and Consumers’ Online and Offline Buying: The Role of Mental Representation

As offline retailers struggle to compete with online ones, the importance of a consumer’s ability to touch a product prior to purchase becomes important to study. Prior research has found inconsistent results on whether product touch facilitates consumers’ product-related decision making. Some studies report a positive effect, whereas others do not. The current research reconciles this inconsistency and draws retailing implications. Across three experiments, we show that the effect of product touch on consumers’ purchase intentions and willingness to pay for a product being evaluated is evident when consumers’ mental representation of the product is concrete, but not when abstract. We further show that perceived risk and perceived ownership simultaneously mediate this moderating effect of mental representation. Implications are drawn for both offline and online retailers.     

The Impact of Consumers’ Need for Uniqueness and Nationality on Generation Y's Retail Patronage Behaviors: Investigating American and Taiwanese Consumers

ABSTRACT

Generation Y (Gen Y) consumers are now one of the most influential buying segments in U.S. history. This article empirically assesses the extent to which American Gen Y consumers and same-aged Taiwanese consumers’ need for uniqueness serves as a meaningful discriminant across retail patronage behaviors for branded apparel products. Results indicate a great deal of similarity between the two cultures’ need for uniqueness. Empirical findings reveal that consumers’ need for uniqueness does influence retail patronage behaviors. The implications of the similarities and differences between American Gen Y consumers and their Taiwanese counterparts serve as potential managerial mechanisms for building and sustaining retail patronage in a globalization era.     

‘We’ are more likely to endorse than ‘I’: the effects of self-construal and brand symbolism on consumers’ online brand endorsements

Recent research increasingly highlights that consumers engage in online brand endorsements (e.g. Facebook likes) to signal their identity, but has failed to explain why different consumers use this type of signaling to differing degrees. This paper addresses this gap by looking at a culturally constructed individual difference variable, namely self-construal. Self-construal, which can be independent or interdependent, refers to the extent that people define themselves in terms of the relations they have with others. In four studies, this research shows that consumers’ self-construal is related to their intention to endorse brands online. In particular, high levels of interdependent self-construal positively affect consumers’ intention to endorse brands online (Studies 1A & 1B). This effect is mediated by an increased perception of brands’ symbolic value (Study 2). Moreover, this positivity bias toward symbolic brand cues is conditional upon consumers’ brand attitude (Study 3). These findings demonstrate that consumers’ identity plays a central role in their brand perception and brand-related social media use.     

The Perceptions of Consumers Regarding Online Retailers’ Ethics and Their Relationship with Consumers’ General Internet Expertise and Word of Mouth: A Preliminary Analysis

Ethical concerns of Internet users continue to rise. Accordingly, several scholars have called for systematic empirical research to address these issues. This study examines the conceptualization and measurement of consumers’ perceptions regarding the ethics of online retailers (CPEOR). Also, this research represents a first step into the analysis of the relationship between CPEOR, consumers’ general Internet expertise and reported positive word of mouth (WOM). Results, from a convenience sample of 357 online shoppers, suggest that CPEOR can be operationalized as a second-order construct composed of four dimensions: security, privacy, fulfillment, and non-deception. Our findings also indicate that consumers’ general Internet expertise significantly improves CPEOR and CPEOR are strongly predictive of consumers’ WOM. Managerial and research implications are offered.     

Consumer–brand relationship quality: When and how it helps brand extensions

Two studies demonstrate that strong brand relationship quality (BRQ) enhances consumer judgments about brand extensions. Different methods (survey vs. experiment), participants (real consumers vs. college students), and cultural contexts (Korea vs. Canada) demonstrate that this effect generalizes. Study results suggest that this effect only occurs for two moderately-low-fit extensions: the extension and the parent are similar product categories with inconsistent attributes, or dissimilar product categories with consistent attributes. Two different cognitive processes underlie the BRQ effects depending on these conditions.     

The Role of Spiritual Well-Being and Materialism in Determining Consumers’ Ethical Beliefs: An Empirical Study with Australian Consumers

A survey was conducted to investigate the relationship of Australian consumers’ lived (experienced) spiritual well-being and materialism with the various dimensions of consumer ethics. Spiritual well-being is composed of four domains—personal, communal, transcendental and environmental well-being. All four domains were examined in relation to the various dimensions of consumers’ ethical beliefs (active/illegal dimension, passive dimension, active/legal dimension, ‘no harm, no foul’ dimension and ‘doing good’/recycling dimension). The results indicated that lived communal well-being was negatively related to perceptions of the active/illegal dimension and the passive dimension and was positively related to perceptions of the ‘no harm, no foul’ dimension and the ‘doing good’/recycling dimension. Lived personal well-being was negatively related to perceptions of the active/illegal dimension and was positively related to perceptions of the ‘no harm, no foul’ dimension and the ‘doing good’/recycling dimension. Lived transcendental well-being was negatively related to perceptions of the passive dimension, the active/legal dimension and the ‘no harm, no foul’ dimension. Lived environmental well-being was negatively related to perceptions of the active/legal dimension and the ‘no harm, no foul’ dimension. The findings also indicated that materialism was positively associated with perceptions of actively benefiting from illegal actions, passively benefiting at the expense of the seller, actively benefiting from questionable but legal actions and benefiting from ‘no harm, no foul’ actions. Public policy implications of the findings and opportunities for future research are discussed.