A committed brand facing moral dilemma crises: the role of inferred goodwill and self-brand connection in consumer regret

Abstract

Purpose

In an era of blurred moral boundaries, brands face “moral dilemma crises”, which are distinguished from traditional crises. Based on expectancy violations theory, this study aims to explore how consumers interpret (inferred goodwill) and evaluate (consumer regret) the precrisis committed brands, reinforced by corporate ability and responsibility (expectancies) during moral dilemma crises and whether self-brand connection moderates this relationship.

Design/methodology/approach

The main study used a scenario-based online survey with a purchased beauty brand, analyzed via structural equation modeling and PROCESS macro, to examine the effects of corporate ability and responsibility on regret, mediated by inferred goodwill and moderated by self-brand connection. A validation study with a fictitious brand used an online experimental design, analyzed with t-tests and ANCOVAs.

Findings

When corporate ability and corporate responsibility are considered together, corporate ability negatively impacts inferred goodwill (boomerang effect), whereas corporate responsibility positively impacts inferred goodwill (buffering effect). Inferred goodwill acts as a mediator that reduces regret. The negative impact of corporate ability on inferred goodwill and regret becomes stronger among consumers with strong self-brand connections. However, self-brand connection does not moderate the relationship between corporate responsibility and inferred goodwill.

Originality/value

This research extends the application of expectancy violations theory to moral dilemma crises, differentiates between the effects of corporate ability and responsibility, highlights the role of inferred goodwill and regret and explores the moderating effects of self-brand connection, providing tailored insights for brand management.

Citation

Jang, J., Kang, J. and Huan, C. (2024), "A committed brand facing moral dilemma crises: the role of inferred goodwill and self-brand connection in consumer regret", Journal of Product & Brand Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JPBM-09-2023-4704