The Role of Perceived Intent in Consumer Penalty Evaluation

Abstract

This study examines the role of perceived intent in the context of penalty evaluation. Based on prior attribution research, the study proposes that customers' responses to penalties are different depending on their perceptions of the organization's intent of using penalties. Using the data collected across the service industry, the study shows that when customers perceive the organization's intent as defensive rather than offensive, their evaluations of the penalty and the organization (e.g., perceived justice, satisfaction, behavioral intentions) are more positive than when they do not. Managerial implications are offered.