Linear versus Step-Function Decision Making: The Moderating Role of Relationship Norms on Consumer Responses to Brand Transgressions

Abstract

Abstract Purpose This research uses the distinction between communal relationships (based on mutual care and concern) and exchange relationships (based on the principle of quid pro quo) to propose a framework that predicts differences in the shape of consumer response function to increasing levels of brand transgressions. Methodology/approach The paper proposes a conceptual model based on insights from prior research on brand relationships. Findings The premise being proposed in this paper is that exchange-oriented consumers, being focused on the balance of inputs and outcomes, base their evaluations on an objective assessment of the final outcome, such that their response function will be relatively proportional to increasing levels of brand transgression. On the other hand, communally oriented consumers are concerned with whether or not the relationship partner cares for them, such that up to a point brand transgressions are overlooked while beyond a threshold there is a sudden negative shift in brand evaluations. These consumers thus exhibit a step-function response to brand transgressions. Research limitations This paper proposes a conceptual framework and leaves it to future researchers to test it empirically. Practical implications Managers now have a toolkit to better manage instances of product and service failure. Social implications Findings from this model can be applied to better manage interpersonal relationships too. Originality/value of the paper This paper proposes a model that shows how and why consumers might differ in their response to brand transgressions. Further, this is a dynamic model in that it traces the response function of the consumers at increasing levels of transgressions.