Do past scandals influence the present performance? The moderating role of consumer mindset

Abstract

The present research studies when and how consumers might react differently to a charity showing a positive change from a negative past reputation (a ‘bad-to-good’ reputation), as compared to a charity that consistently maintains a positive reputation (an ‘always-good’ reputation). Across three studies examining the context of donating (Studies 1 and 3) and volunteering (Study 2), this research provides evidence for the moderating role of consumer mindsets (growth vs. fixed). Specifically, growth-mindset consumers attribute a higher effort to a charity with a bad-to-good reputation, which in turns creates admiration and increases charitable behavior. In contrast, fixed-mindset consumers admire a charity with an always-good reputation, leading to increased charitable behavior. The findings of this research are beneficial for nonprofit organizations in understanding how to leverage (past) reputation.