Two Essays on Consumer Responses to (Un)Ethical Brand Behavior

For decades, major corporations worked primarily for the benefit of their shareholders. But in August 2019, nearly 200 CEOs of leading U.S. companies such as Amazon, Apple, and Walmart unveiled a new policy. The chief executives argued that businesses have a greater purpose than maximizing profit. Companies should “build long-term value” by “investing in our employees” and “supporting the communities in which we work” (Business Roundtable 2019). Even before this formal declaration, academic research had shown that a company’s intention to benefit others, both within their organization and in the community, leads to various positive consumer outcomes such as increased satisfaction (Andreoni 1990), loyalty (Du, Bhattacharya, and Sen 2007), and willingness to pay (Auger et al. 2003). However, social responsibility initiatives are often quickly eliminated when companies face economic hardships (Lamey et al. 2007). Considering a failure to adhere to expectations of social responsibility can result in ruinous consequences, including a loss of equity for not only the brand (Dawar and Pillutla 2000) but the entire product category (Roehm and Tybout 2006), more research is needed to underscore the importance of maintaining a commitment to social responsibility from a consumer behavior perspective.In my dissertation, I examine how, when, and why consumers respond to positive brand intentions and actions. I assess consumer support in terms of individual consumer behaviors such as the likelihood of patronizing/purchasing from the brand, recommending the brand to others, and leaving positive online reviews. Essay 1, titled “Nice Brands Finish First: Consumers Support Well-Intentioned Brands More Than High-Ability Brands Following Identical Moral Transgressions,” focuses on consumers’ post-transgression support for brands that are well- intentioned or high-ability. I find that consumers consistently show greater support for a well-intentioned brand, because they are able to separate the brand from the transgression more easily when the brand is perceived to be well-intentioned rather than high-ability. Essay 2, titled “Buying Good Karma: Why Consumers Who Believe in Karma Support Ethical Brands,” examines how and why a belief in karma, espoused by over 1.5 billion people worldwide (Pew Research Center 2015), leads to greater support for socially responsible brands. The results demonstrate that a belief in karma predicts support for ethical brands via the anticipation of positive emotions, which is predicted by the expectation that an ethical purchase would bring good karma. Taken together, my dissertation explores consumer responses to brands that make the conscious effort to engage in positive brand behaviors.

Grantor dc:publisher

University of Kansas

Year dc:date.issued

2023

Author dc:creator

• Kim, Summer Hyoyeon

Advisor dc:contributor.advisor

• Li, Yexin J

• Marketing

Statement dc:rights

• Copyright held by the author.

Language dc:language.iso

en

Dc Identifier Other

http://dissertations.umi.com/ku:18792

OAI identifier oai:identifier

oai:kuscholarworks.ku.edu:1808/38885