The impact of brand scandals and corporate crises on consumer perceptions regarding how deeply a firm cares about sustainability and subsequent impact on loyalty and patronage intentions

Abstract

This study investigates the influence of brand scandals and corporate crises on consumer perceptions of a firm's commitment to sustainability and their subsequent effects on loyalty and patronage intentions. Building on attribution theory, the research emphasizes the role of Consumer Perceived Ethicality (CPE) in shaping consumer responses. As a result of the empirical analysis of survey data, the findings reveal that both internal factors and external elements, such as perceived crisis severity and negative publicity, significantly influence the impact of CPE on consumer behavior. Regarding ESG (Environmental, Social, and Governance) activities, the study finds no evidence supporting their hypothesized moderating role of CPE and consumer behaviors during crises. This suggests that the effectiveness of ESG initiatives in managing crises may be limited in immediate consumer perceptions and responses. By advancing the application of attribution theory to sustainability-related crises, this research offers theoretical insights and managerial guidance on developing crisis management strategies that enhance consumer trust and loyalty