Understanding Customers’ Reactions to Allegations of Corporate Environmental Irresponsibility

Abstract

The purpose of this study was to examine issue- and organization-specific factors that may influence customers’ reactions to allegations of environmental irresponsibility. This study focused on the idea of brand identity fusion to examine how it may act as a figurative shield against the negative cognitive and behavioral impacts of misconduct allegations. To do so, online surveys were conducted among Australian citizens in October 2018. Brand identity fusion lowered customers’ perceptions of perceived moral inequity and triggered rewarding behavioral intentions despite the allegations. Situational motivation about environmental issues was found to positively affect boycotting and lower buycotting intentions as well as perceived moral inequity. Theoretical and practical implications are discussed.

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