The effects of observing punishment on consumers’ decisions to punish other companies during industry-wide crises

Industry-wide crises, characterized by multiple companies within an industry allegedly engaging in similar misconduct, lead to disruptions in the social order. During such crises, one or a few of the involved companies often attract more media attention and receive punishment ahead of the others. Wi...

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Published in:Journal of the Academy of Marketing Science Vol. 52; no. 6; pp. 1741 - 1760
Main Authors: Chen, Shijiao (Joseph), Li, Yi, Yao, Jun
Format: Journal Article
Language:English
Published: New York Springer US 01.11.2024
Springer
Springer Nature B.V
Subjects:
Altruism
Attribution
Blame
Boundary conditions
Business
Business and Management
Companies
Consumers
Crises
Crisis management
Experiments
Industrial enterprises
Marketing
Marketing research
Misconduct
Moderators
Original Empirical Research
Punishment
Scandals
Social order
Social Sciences
Supply chains
Australia
Industry-wide crisis
Altruistic punishment
Third party
Blame attribution certainty
Social order restoration
ISSN:0092-0703, 1552-7824
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Abstract Industry-wide crises, characterized by multiple companies within an industry allegedly engaging in similar misconduct, lead to disruptions in the social order. During such crises, one or a few of the involved companies often attract more media attention and receive punishment ahead of the others. Will such punishments take the heat off other involved companies or increase their risk of further punishment? This research shows that the observation of these punishments increases consumers’ intent to punish other involved companies. Observing one involved company get punished signals that the involved companies are indeed at fault, thereby increasing consumers’ certainty in blame attribution. Subsequently, consumers increase their motive to restore social order and their intent to punish other involved companies. Four theoretically and managerially relevant moderators have been identified and tested. Seven studies involving secondary data and experiments with both hypothetical and real behavioral outcomes support the proposed effects.
AbstractList Industry-wide crises, characterized by multiple companies within an industry allegedly engaging in similar misconduct, lead to disruptions in the social order. During such crises, one or a few of the involved companies often attract more media attention and receive punishment ahead of the others. Will such punishments take the heat off other involved companies or increase their risk of further punishment? This research shows that the observation of these punishments increases consumers’ intent to punish other involved companies. Observing one involved company get punished signals that the involved companies are indeed at fault, thereby increasing consumers’ certainty in blame attribution. Subsequently, consumers increase their motive to restore social order and their intent to punish other involved companies. Four theoretically and managerially relevant moderators have been identified and tested. Seven studies involving secondary data and experiments with both hypothetical and real behavioral outcomes support the proposed effects.
Audience Academic
Author Li, Yi
Yao, Jun
Chen, Shijiao (Joseph)
Author_xml – sequence: 1
  givenname: Shijiao (Joseph)
  orcidid: 0000-0002-1851-2528
  surname: Chen
  fullname: Chen, Shijiao (Joseph)
  email: joseph.chen@mq.edu.au
  organization: Department of Marketing, Macquarie Business School, Macquarie University
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  surname: Li
  fullname: Li, Yi
  organization: Department of Marketing, Macquarie Business School, Macquarie University
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  givenname: Jun
  orcidid: 0000-0002-7510-5101
  surname: Yao
  fullname: Yao, Jun
  organization: Department of Marketing, Macquarie Business School, Macquarie University
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Altruistic punishment
Third party
Blame attribution certainty
Social order restoration
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Snippet Industry-wide crises, characterized by multiple companies within an industry allegedly engaging in similar misconduct, lead to disruptions in the social order....
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SubjectTerms Altruism
Attribution
Blame
Boundary conditions
Business
Business and Management
Companies
Consumers
Crises
Crisis management
Experiments
Industrial enterprises
Marketing
Marketing research
Misconduct
Moderators
Original Empirical Research
Punishment
Scandals
Social order
Social Sciences
Supply chains
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Title The effects of observing punishment on consumers’ decisions to punish other companies during industry-wide crises
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