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.

Keywords:

• brand transgression
• consumer forgiveness
• apology
• apologia
• CSR initiatives

Notes

¹ http://www.radionz.co.nz/news/national/14537/cadbury-defends-use-of-palm-oil-in-chocolate

² http://edition.cnn.com/2012/10/02/world/meast/saudi-ikea-women/

Additional information

Notes on contributors

Yelena Tsarenko

Yelena Tsarenko is Associate Professor in the Department of Marketing at Monash University. Her primary research interests are in consumer psychology and services marketing. Yelena has published her research in journals such as Journal of Marketing Management, European Journal of Marketing, Journal of Business Research, Journal of Service Research as well as other journals. Her paper in the Journal of Services Marketing has received the best-commended paper by Emerald Literati Award 2008.

Dewi Tojib

Dewi Tojib is a senior lecturer in the Department of Marketing at Monash University. She holds a Bachelor of Business Systems (H1) and Doctor of Philosophy (PhD) from Monash University. Her main research interests include consumer responses to service failures, multi-channel in retailing and services context, and technology adoption. Her research has been published in a number of academic and practitioner journals such as Journal of Marketing Management, Journal of Business Research, European Journal of Marketing, Journal of Services Marketing, European Journal of Information Systems and Journal of Electronic Commerce in Organization.