Willingness-to-punish the corporate brand for corporate social irresponsibility

Abstract

This research addresses consumers' willingness-to-punish the corporate brand for corporate social irresponsibility (CSI). It is supported by the extant literature on consumer stakeholders, corporate brands, brand personality, regulatory fit, and psychological contract, as well as by punishment in psychology and philosophy, which are new to the marketing literature. Using an experimental design with a control group, this research examines consumers' willingness-to-reward and its converse willingness-to-punish a corporate brand under three treatment conditions of socially responsible, socially irresponsible, and environmentally friendly. Data were collected on four outcome variables of willingness-to-punish, willingness-to-reward, brand attitude, and purchase intention for each treatment group. MANOVA results indicated that there were systematic differences in the levels of outcomes among the four groups. Discriminant function analysis found the socially irresponsible group was statistically significantly different from the other three experimental groups for all four outcome variables. Consumers dealing with socially irresponsible corporate brands were more likely to punish and less likely to reward than consumers in the other three treatment conditions. This study illustrates the latent negative impact from CSI activities on four important dimensions of consumer response. The findings indicate there is a pragmatic need for corporate brand strategists to recognize consumers' willingness-to-punish the corporate brand and the subsequent necessity to avoid activities that consumers may perceive to be socially irresponsible.