Ethical Orientation and Brand Forgiveness in the context of Perceived Brand Transgressions

This dissertation was written as part of the MSc in Strategic Product Design at the International Hellenic University. This research addresses the post transgression behavior of consumers on the basis of their ethical orientation and their concomitant perceived severity of the violation. According to the gravity of deontological beliefs, consumers are grouped in high and low deontological oriented. In this context, brand ethical perception and perceived severity of an ethical misconduct of labor rights violation, committed by a fictitious company, are further explored. Findings demonstrate the impact of high deontological stance on stimulating high levels of brand ethical perception and perceived transgression severity. Following the psychological pattern of forgiveness and repurchase behavior, results indicate that consumers experiencing low levels of perceived severity are more likely to exhibit high levels of forgiveness and preserve their relationship with the company. Finally, the results enable practitioners to obtain deepen insights in consumer actions following an ethical transgression and to develop sustainable strategies to overcome the deleterious consequences.