Fulfilling consumer expectations of corporate social responsibility can bring strategic advantage to firms. However, research on the topic is fragmented across disparate disciplines, and a comprehensive framework to connect CSR supply and demand is missing. As a result, firms often supply CSR that does not attract demand, as signified by pessimism about ethical consumerism in recent years and the inconclusive link between corporate financial and social performance. In this study, we propose a framework of strategic CSR management to define how (...) a company’s supply of CSR could meet consumer demand for ethical products by aligning managerial and consumer perspectives. We then investigate empirically whether such a strategic approach, which integrates potential demand in CSR management, would influence consumer choice of products with CSR components. Our hybrid choice modeling allows the inclusion of psychological biases caused by social desirability and cynicism to increase result validity. The findings support the explanatory power of the framework and reveal that consumers prefer some CSR elements while others adversely affect choices. This study advances the understanding of strategic CSR management and its impact on consumer choice and helps managers include the right mix of CSR characteristics in their products to satisfy ethical consumers. (shrink)

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Ethical consumerism has been dramatically increasing in recent decades, but in service sector, fewer research has been conducted especially in the fast-food industry. In this paper, we determined empirically the consumer perceived ethicality effects on repurchase intentions as well as on word of mouth through brand image partial mediation and customer expertise moderation in fast-food sector. The data were collected from 307 consumers of the fast-food restaurants through self-administered questionnaires. Common method variance and social desirability bias were measured before testing (...) hypotheses, and the data were investigated by SPSS and AMOS 21st version. The empirical results demonstrated that consumer perceived ethicality effects on repurchase intentions directly and through brand image partial mediation indirectly. Moreover, the direct and positive effects of repurchase intentions on word of mouth were experienced. This study generalized the results of previous studies of consumer perceived ethicality conducted in western culture in Pakistani fast-food sector. This study also proposed that firms should tackle ethical concerns at corporate and operational strategy levels to improve consumers’ behavioral intentions. (shrink)

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Using an institutional perspective, this paper investigates how consumers in Western developed and Southeast Asian emerging markets respond to fashion brands’ moral transgressions and how consumers’ moral rationalization tendencies vary across the two markets. The study employs multimethod analyses, including cross-national secondary data from 12 countries and experimental data from 940 German and Vietnamese consumers. In a non-transgression context, the multivariate analyses show that Western developed-market consumers embrace higher ethical standards (Study 1A), tend to seek collective action against prevalent immoral (...) behaviors in society (Study 1B), and are more critical in evaluating fashion brand ethicality than Southeast Asian emerging-market consumers (Study 2). However, in a transgression context, the moderated mediation analyses reveal that consumers largely do not differ in their direct devaluation of fashion brand ethicality and subsequent price considerations (Study 3) across six transgression scenarios (i.e., worker abuse, child labor, racist advertising, weight discrimination, climate change, and environmental pollution). Interestingly, moral rationalization processes appear to be more frequent and consequential in the Southeast Asian emerging market, while they either do not occur or are significantly weaker in the Western developed market. The results provide theoretical and practical implications for ethical business practices in the fashion industry based on market differences in regulatory frameworks, cognitive considerations, and social norms. (shrink)

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Both brand ethicality and brand authenticity focus on the moral behavior of a brand, yet the link between these two constructs is only poorly understood. Building on and integrating findings from prior research, this article suggests that authentic brand ethicality (ABE), defined as the degree to which consumers perceive a brand’s moral behavior as genuine, real, or true, represents an important extension of extant brand ethicality scales available. Using a multistep scale development procedure, this study provides a robust 12-item full (...) scale and a 7-item parsimonious scale of ABE that are sound in their psychometric properties and show predictive and known-group validity. Furthermore, placing ABE into a broad theory-based nomological network reveals its mediating role between important brand-, customer-, and employee-related antecedents and outcomes as well as its function in moderating relationships. Overall, this research yields a deeper understanding of ABE’s conceptualization, measurement, drivers, consequences, and role in mediating and moderating relationships and provides managerially relevant outcomes. (shrink)

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While many brands face the after-effects of historical transgressions, prior research provides little insight into these issues. Against this backdrop, this research presents five experiments providing convergent evidence for a lingering negative effect of historical brand transgressions (HBTs) on present brand evaluation, an effect that is due to a detrimental effect of HBTs on perceptions of brand warmth. Studies 1 and 2 establish the main effect and mediation. Studies 3–5 examine mitigating effects. Study 3 checks if high institutional pressure can (...) serve as an excuse strategy that buffers the negative effects of a transgression. Studies 4 and 5 test the mitigating effect of different response styles (recognition, apology, and/or compensation). Together, these results contribute to the business ethics and marketing literature by defining the concept of HBT and showing why it harms a current brand’s evaluation and how brands can mitigate its negative effects. (shrink)

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Customers are increasingly talking positively about brands that are socially responsible and authentic. However, little empirical research has related corporate social responsibility (CSR) to brand authenticity and brand authenticity to customers’ positive word-of-mouth. Moreover, although highly attractive alternative brands are increasingly appearing in the marketplace, there is a lack of research examining the role of alternative attractiveness in the relationship between CSR and brand authenticity. We address these shortcomings in the literature drawing on data from 1,101 customers of insurance services (...) brands and analyze them using structural equation modeling. The findings show that CSR is positively related to customers’ positive word-of-mouth, both directly and indirectly, through brand authenticity. Moreover, alternative attractiveness positively moderates the effect of CSR on brand authenticity. This implies that CSR can act as a differentiation mechanism to further enhance the focal brand’s authenticity, when an alternative brand is perceived as highly attractive. (shrink)

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Both brand ethicality and brand authenticity focus on the moral behavior of a brand, yet the link between these two constructs is only poorly understood. Building on and integrating findings from prior research, this article suggests that _authentic brand ethicality_ (ABE), defined as the degree to which consumers perceive a brand’s moral behavior as genuine, real, or true, represents an important extension of extant brand ethicality scales available. Using a multistep scale development procedure, this study provides a robust 12-item full (...) scale and a 7-item parsimonious scale of ABE that are sound in their psychometric properties and show predictive and known-group validity. Furthermore, placing ABE into a broad theory-based nomological network reveals its mediating role between important brand-, customer-, and employee-related antecedents and outcomes as well as its function in moderating relationships. Overall, this research yields a deeper understanding of ABE’s conceptualization, measurement, drivers, consequences, and role in mediating and moderating relationships and provides managerially relevant outcomes. (shrink)

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This article uncovers an important yet overlooked antecedent of brand ethicality that lies beyond the predominant focus on environmental and social actions in the literature: perceived brand authenticity. Perceived authenticity and brand ethicality strongly drive consumer decision making, but the link between the two has not been closely scrutinized. This article examines how two types of authenticity cues differently influence consumers’ perceptions of brand ethicality. Across five studies and four different product categories, the findings show that indexical authenticity cues lead (...) to greater perceived brand ethicality than iconic authenticity cues. The underlying mechanism is that indexical authenticity cues prompt people to perceive that a product is made with more effort; this increases their perception that it is crafted with love, which then enhances their perception of brand ethicality. The findings also indicate that lower perceived brand ethicality when using iconic authentic cues can be offset by the notion that developing the product involved intense effort. (shrink)

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This study aimed to provide practical implications for South Korean corporations seeking to enter the Chinese market. It explored the influences of brand image and favorability toward citizens in a product’s country of origin on consumers’ product evaluation and repurchase intention, in addition to examining the moderating effects of procedural switching costs, financial switching costs, and relational switching costs on the aforementioned influences. Although previous studies have established the relationships between some of the aforementioned variables, further research is required to (...) determine the moderating effects of switching costs in various dimensions. Studies on the relationships of a product’s country of origin with product evaluation and repurchase intention have rarely explored FCPCO. Through a questionnaire survey, this study obtained effective data from 302 respondents. Constituted of an exploratory research design, this study adopted PLS-SEM method for empirical analysis. IPMA analysis results indicated that brand image had a stronger influence on product evaluation than FCPCO did and that FCPCO had a stronger influence on repurchase intention than brand image did. Overall, the performance of FCPCO was higher than that of brand image. Moreover, economic risk costs and brand relationship loss costs positively moderated the relationship between brand image and product evaluation; monetary loss costs and brand relationship loss costs negatively moderated the relationship between FCPCO and product evaluation. These study results could help corporations gain competitive edge. (shrink)

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