A committed brand facing moral dilemma crises: the role of inferred goodwill and self-brand connection in consumer regret
| Date | 12 November 2024 |
| Pages | 347-363 |
| DOI | https://doi.org/10.1108/JPBM-09-2023-4704 |
| Published date | 12 November 2024 |
| Author | Jisu Jang,Jiyun Kang,Christine Huan |
A committed brand facing moral
dilemma crises: the role of inferred goodwill
and self-brand connection in consumer regret
Jisu Jang, Jiyun Kang and Christine Huan
Division of Consumer Science, White Lodging-J.W. Marriott, Jr. School of Hospitality and Tourism Management,
Purdue University, West Lafayette, Indiana, USA
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) andevaluate (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
moderatedbyself-brand connection. A validation studywith a fictitious brand used an online experimentaldesign, analyzed with t-testsand 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 mediatorthat
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.
Keywords Moral dilemma crisis, Corporate ability, Corporate responsibility, Inferred goodwill, Self-brand connection, Consumer regret,
Expectancy violations theory
Paper type Research paper
1. Introduction
A brand crisis is often perceived as a clear-cut situation posing
direct and predictable detrimental impacts on a financial and
reputational threat (Coombs, 1999). The evolving complexity of
societal values and ethical considerations has introduced a new
type of crisis: moral dilemma crisis –a controversial situation that
provokes cognitive dissonance among various stakeholders dueto
blurred ethical boundaries and the absence of universally accepted
norms (Scalet and Arthur, 2016). Recent examples, such as
Apple’s iPad advertisement “Crush!”OpenAI’sChatGPTvoice
and Disney’s“The Little Mermaid”casting, illustrate these
morally controversial situations surrounding the brands.
A primary example of a moral dilemma crisis in cosmetics
and personal care brands, also known asbeautybrands, is
animal testing. Major beauty brandssuch as Est
ee Lauder and
L’Or
eal have been revealed to conduct animal testing partially
to comply with China’s regulations, raising moral dilemmas
about balancing human safety and animal welfare (Millstein,
2024). The conflicting policies from the European Chemicals
Agency and the European Union further complicate this
situation, leaving consumers with a complex moral dilemma
and no clear judgment on whether the brand’s actions were
morally wrong. Despite its significance and complication,
research on consumer evaluation and brand strategy regarding
moral dilemma crisesis limited.
How can a brand proactively mitigate the detrimental impact
on its reputation before revealing its postcrisis strategy? Numerous
scholars (shown in Table 1) emphasize the importance of
precrisis commitments to either corporate ability –an adeptness in
producing and delivering products and services –or corporate
responsibility –commitment to environmental, social and ethical
initiatives (Brown and Dacin, 1997;Jeon and Baeck, 2016).
Corporate ability has been found to offer mixed outcomes,
whereas it can increase trust and affective identification(Lin et al.,
2011;Sohn and Lariscy, 2015), a few studies suggest that
heightened corporate ability leads consumers to attribute more
responsibility and blame to the brand, indicating boomerang
The current issue and full text archiveof this journal is available on Emerald
Insight at: https://www.emerald.com/insight/1061-0421.htm
Journal of Product & Brand Management
34/3 (2025) 347–363
© Emerald Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-09-2023-4704]
Conflict of interest: None.
Received 10 September2023
Revised5 February 2024
21 June 2024
20 October 2024
Accepted 22 October 2024
347
Table 1Precrisis corporate commitments’role in brand crises
ReferenceCrisis typeTheoryVariablesMethodologyKey findings
Precrisis corporate commitments
Corporate
ability
Corporate
responsibility
Kang et al.
(2023)
Performance crisis
(product-related
quality)/
Values crisis
(sweatshop)
Attribution theoryCommitment to
product responsibility,
commitment to social
responsibility,
attribution of
accountability, brand
resilience
Scenario-based online
experiment (USA,
n¼522)
A brand’s social responsibility commitment reduces
accountability. It strengthens brand resilience more
in a performance than in a values crisis. However,
product responsibility commitment increases
attribution of accountability and decreases brand
resilience in values crisis
Boomerang in
values crises
Buffer in
performance crises
Jung and Lee,
2022)
Values crisis (Gucci,
H&M racism-
related)
Associative
network memory
model
CSR skepticism, brand
trust, resilience to
negative information,
incident attribution,
incident severity,
Incident motive
Online survey (USA,
n¼531)
A continuous and consistent CSR engagement can
buffer negative consequences. Low consumer
skepticism toward CSR practices increases trust and
resilience (forgiveness) intentions for misconduct.
This mitigates attribution of the incident to the firm,
perceived severity and perceptions of self-interest
motives
No
measurement
Buffer
Park et al.
(2021)
Values crisis
(Dunkin’s employee
treatment)
Expectancy
violations theory
Perceived corporate
credibility, corporate
attitude, supportive
behavioral intention
Experimental online
survey: 2 (CSR
expectancy: higher vs
lower) 2 (CSR
expectancy: higher vs
lower) between-
subjects experimental
design (US
undergraduate
students, n¼162)
There is an interaction effect between CSR
expectancies and CSR practice. Violating high CSR
expectancies results in less positive attitudes and
supportive intentions than meeting low CSR
expectancies. However, meeting high CSR
expectancies yields more positive responses than
exceeding low CSR expectancies. Perceived
corporate credibility mediates the effects of
interactions between CSR expectancy and CSR
practice on corporate attitudes and supportive
behavior intentions
No
measurement
Boomerang
Kang et al.
(2021)
Performance crisis
(CA product
harm)/ values crisis
(CSR labor issue)
Justice-based
theory
Precrisis CSR
reputation, perceived
betrayal, resistance to
negative information,
support for
punishment, negative
WOM intention,
boycott intention
Scenario-based online
experiment (USA,
n¼1,050)
A strong CSR reputation generally results in reduced
feelings of betrayal and increased resistance to the
brand’s negative. Two types of crises moderate the
effects of CSR reputation on consumers’reactions.
In a performance crisis, a strong CSR reputation
reduces consumers’feelings of betrayal. In a values
crisis, a strong CSR reputation makes consumers
more immune to the brand’s negative information
about the brand
No
measurement
Buffer
Tao and Song
(2020)
Values crisis (CSR
crisis
environmental
pollution and
misuse of
philanthropic funds)
Expectancy
violations theory
Company attitude
(precrisis, in-crisis,
postcrisis), violation
expectedness, crisis
response
diagnosticity/novelty,
Experimental online
survey: 2 (positive CA/
CSR associations) 2
(CA/CSR crisis
response strategy)
between-subjects
Consumers with positive prior CSR expect lower
violation toward a crisis than those with positive
prior CA. Violation expectedness mediates the effect
of positive prior association types on attitude
change. A CSR response strategy is more effective
and diagnostic than a CA response strategy in
No impactNo impact
(continued)
Committed brand facing moral dilemma crises
Jisu Jang, Jiyun Kang and Christine Huan
Journal of Product & Brand Management
Volume 34 · Number 3 · 2025 · 347–363
348
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