Felt betrayed or resisted? The impact of pre‐crisis corporate social responsibility reputation on post‐crisis consumer reactions and retaliatory behavioral intentions

Abstract

We develop and test a model that illustrates the effects of pre‐crisis corporate social responsibility (CSR) reputation on consumers' perceived betrayal, resistance to negative information, and retaliatory behavioral intentions, accounting for two types of brand crises, namely, corporate ability and corporate responsibility crises. To enhance the external validity and generalizability of our model testing results, we collect data from 1,045 randomly selected adults across the United States. The results from multi‐group structural equation modeling show that when a brand's pre‐crisis CSR reputation is stronger, consumers are less likely to feel betrayed. Stronger pre‐crisis CSR reputation also leads consumers to be more resistant to negative information about the brand. However, the two types of brand crises moderate the effects of pre‐crisis CSR reputation on consumers' reactions and retaliatory behavioral intentions. The results from our research significantly deepen and advance the understanding of the differences in consumer reaction processes between these two crisis types, highlighting consumers' perceived betrayal as the emotional mechanism through which those different consumer responses arise. The results further help practitioners better conceptualize how to respond to a given crisis to minimize consumers' negative feelings and thereby reduce their retaliatory behaviors.

Triple bottom line of the CSR concept and its reporting

“…Their study confirms that CSR is a very useful tool for company failure, which can create positive attitudes to the company even if the customer is disappointed by the failure. The same results are proved by Kang et al (2021), who additional claim that pre-crisis CSR could be the tool to overcome bad word-of-mouth and support the fact that customers are more resistant to believe in this type of negative information.…”

THE PERCEPTION OF COMPANY EMPLOYEES BY SMEs WITH CSR CONCEPT IMPLEMENTATION

“…It refers to a business system that enables the production and distribution of wealth for the betterment of stakeholders through the implementation and integration of ethical systems and sustainable management practices (Godfrey, 2016). CSR implementation is useful for businesses to mitigate the negative effects of enterprise's activities on the environment (Bikefe et al, 2020), it could contribute to a better image of the company (Barakat et al, 2016) or even to get over negative word-of-mouth (Alhouti et al, 2021, Kang et al, 2021. Through CSR, the companies strive for a positive impact on the labor, social and natural environment and thus gain a competitive advantage and ensure long-term sustainability (Stojanovic et al, 2020).…”

Repurchasing an Environmental Related Crisis Experienced Automobile Brand: An Examination in the Context of Environmental Consciousness, Brand Trust, Brand Affect, and Resistance to Negative Information

“…Furthermore, the effect of negative information on reducing product sales is stronger than the potential positive effect of positive information on product sales (Chevalier & Mayzlin, 2006). As the resistance to negative information reduces, the consumers' intention to boycott diminishes (Kang et al, 2021). Based on this information, due to resistance to negative information, consumers might repurchase the same brand that has experienced an environmental crisis.…”