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Journal of Business Research 104 (2019) 1–13

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Journal of Business Research


journal homepage: www.elsevier.com/locate/jbusres

When CSR-based identification backfires: Testing the effects of CSR-related T


negative publicity
Sabine Einwillera, , Bettina Lisb, Christopher Ruppela, Sankar Senc

a
University of Vienna, Department of Communication, 1090 Vienna, Althanstrasse 14 (UZA II), Austria
b
University of Bayreuth, Faculty of Law, Business and Economics, 95447 Bayreuth, Universitätsstrasse 30 (Gebäude RW1), Germany
c
City University of New York (CUNY), Baruch College, Zicklin School of Business, Allen G. Aaronson Department of Marketing & International Business, 55 Lexington
Avenue, New York, NY 10010, United States of America

ARTICLE INFO ABSTRACT

Keywords: In the face of much research documenting an ameliorative, buffering effect of consumer-company identification
Consumer-company identification on consumer reactions to negative publicity about a company, this paper theorizes and demonstrates, through
Consumer-company disidentification two studies, that when such identification is based on a company's CSR (i.e., corporate social responsibility), as
Corporate social responsibility opposed to CA (i.e., corporate ability), strongly identified consumers react more, rather than less, negatively to
Negative publicity
negative publicity in the same domain (i.e., CSR). In addition, this paper provides evidence for the process
underlying this backfiring effect among those most connected to the company, based on their perceived betrayal
by the company in a particularly self-relevant domain and their subsequent disidentification with it, producing
among them intentions to oppose the company.

1. Introduction with it, defined as the overlap they perceive between their own iden-
tities, actual and/or desired, and that of the company, producing a
Corporate social responsibility (CSR) is ascendant in today's global sense of connectedness to it (Bhattacharya & Sen, 2003; Dutton,
marketplace (UN Global Compact & Accenture, 2016), with companies Dukerich, & Harquail, 1994; Einwiller, Fedorikhin, Johnson, & Kamins,
large and small worldwide striving to be socially responsible. Notably, 2006). Such consumer-company identification (i.e., CeC identification)
the normative as well as the business case motivate such CSR engage- can be based on two basic and distinct dimensions of a company's
ment. In addition to “doing the right thing,” firms expect that “doing identity. The first dimension pertains to the company's corporate ability
good” will also lead to “doing better,” through positive pro-company (CA), or its expertise in producing and delivering products or services
reactions of key stakeholder groups such as consumers (Bhattacharya & with attractive functional and/or hedonic attributes (Brown & Dacin,
Sen, 2004; Sen, Du, & Bhattacharya, 2016). At the same time, however, 1997). The second dimension pertains to the company's CSR, or “its
companies are more vulnerable than ever to negative publicity about status and activities with respect to its perceived societal obligations”
their CSR. In an environment characterized by unprecedent informa- (Brown & Dacin, 1997, p. 68). Notably, although customers can identify
tional transparency and hyper-vigilant publics (e.g., watchdog groups, with a company based on one or both of these dimensions, a company's
consumer activists, the media), CSR lapses of not just hypocritical CSR activities comprise a particularly compelling basis for CeC iden-
companies but also companies imperfectly engaging in earnest CSR tification because they convey a company's values, morality, or char-
efforts across large, complex organizations can precipitate a corporate acter (e.g., Currás-Pérez, Bigné-Alcañiz, & Alvarado-Herrera, 2009; Du,
crisis. This raises an important question: How might consumers react to Bhattacharya, & Sen, 2007; Pérez & Rodríguez del Bosque, 2015),
negative publicity in the CSR domain about a company engaged in which are more central to a consumer's sense of self than ability or
CSR? For instance, how might consumers react to publicity about competence. This is reflected in the growing prevalence of CSR-based
emissions test fraud by a company known to be eco-friendly, as in the identification in the marketplace: our recent poll (see Appendix for
recent case of Volkswagen (Ewing, 2017)? details) revealed that although CA-based identification dominates, due
Prior research suggests a key mechanism underlying consumers' primarily to consumers' greater exposure to CA than to CSR information
positive responses to a company engaged in CSR is their identification about brands, CSR comprises the basis for identification in the case of at

Corresponding author.

E-mail addresses: sabine.einwiller@univie.ac.at (S. Einwiller), bettina.lis@uni-bayreuth.de (B. Lis), christopher.ruppel@univia.ac.at (C. Ruppel),
sankar.sen@baruch.cuny.edu (S. Sen).

https://doi.org/10.1016/j.jbusres.2019.06.036
Received 28 September 2018; Received in revised form 20 June 2019; Accepted 22 June 2019
0148-2963/ © 2019 Elsevier Inc. All rights reserved.
S. Einwiller, et al.

Table 1
Overview over extant studies on consumer resilience to negative publicity.
Source Type of affiliation w/ Stimulus Type(s) of nega-tive Theoretical foundation Dependent variable(s) Core findings
company/brand information

Ahluwalia et al. (2000) Brand commitment Athletic shoes by Nike (Exp. Quality (faulty shock Impression formation Counterarguments, High (vs. low) commitment leads to counterarguing and
Experiments 1 and (Exp. 1: measured, Exp. 2: 1) and Mizuno (Exp. 2) absorbers) (negativity effect), Biased Attitude change, resistance to negative publicity
2 manipulated) processing Ambivalence, Perceived
diagnosticity
Einwiller et al. (2006) CSR-based consumer- Mutual fund (fictitious) Performance (moderate Motivated reasoning Attitudes, Strong (vs. weak) identification buffers negative effects
company identification and very negative) Perceptions, when publicity is moderately negative; no buffering when
(manipulated) Behavioral intentions publicity is very negative
Pullig et al. (2006) Prior attitude certainty Athletic shoes (fictitious, Performance and values Search-and-alignment Attitude change High (vs. low) prior attitude certainty insulates from
(manipulated) Exp. 1) and Odwalla juice related model, attitude challenge negative publicity effects when the brand positioning is
(Exp. 2), (mis)matching aligned (vs. not aligned) with negative brand publicity. In
Brand positionning: case of multiplex positioning, high prior attitude certainty
performance based, values insulates brands from both performance- and values-related
based, multiplex negative publicity.
Liu et al. (2010) Commitment, Carrefour Unethical behavior Impression formation Attitude change High commitment, strong identification and low SCSP buffer
Identification, (moderate and very (negativity effect), negative effects when unethical behavior is moderately
Sensitivity to Corporate negative) Motivated reasoning negative; the buffer effect is suspended when the
Social Performance (SCSP) information is extremely negative

2
(measured)
Cheng et al. (2012) Self-brand connection BlackBerry Brand extension Self-concept, self- Self evaluation, High (vs. low) self-brand connection causes lower self-
(measured) performance affirmation Brand evaluation esteem but buffers negative effects on brand; when high SBC
consumers can affirm their self, brand evaluation decreases

Source Moderator(s) Stimulus Type(s) of nega-tive information Theoretical foundation Dependent variable Core findings
(s)

Lisjak et al. (2012) Brand identification Starbucks General negative information Self-concept, defensive Attitude change Identification buffers against negative effects when self-esteem is
(measured) and implicit self- Facebook responding, self- low and self is activated; when identified consumers can affirm
esteem affirmation their self, brand defense is reduced
Schmalz and Orth Brand attachment Coca Cola Unethical behavior (moderate Motivated reasoning Emotional Strong (vs. weak) brand attachment buffers negative effects when
(2012) McDonalds and very negative) ambivalence, unethical behavior is moderately negative; no buffering when
Purchase intentions unethical behavior is very negative
Trump (2014) Self-brand connection Nike Ethical (discrimination against Self-concept, self-relevance Brand evaluation Strong (vs. weak) self-brand connection buffers against negative
(measured) women) and product failure effects when negative info is not self-relevant and in product
domain; buffer effect is suspended when negative info is self-
relevant (women) and of ethical nature
Jeon and Baeck Brand-customer relationship Coffee franchise (fictitious): CSR (slush funds) and CA (coffee Information integration Attitudes, Strong (vs. weak) relationship strength + CSR (CA) associations
(2016) strength Sona to elicit CSR and producing origin) theory Behavioral buffer negative effects of negative CSR (CA) information; overall:
(manipulated) Pazenda to elicit CA intentions negative CSR information leads to more negative effects
associations
Journal of Business Research 104 (2019) 1–13
S. Einwiller, et al. Journal of Business Research 104 (2019) 1–13

least a quarter of the brands with which consumers identify. 1986), including organizations (Ashforth & Mael, 1989). Organizational
Therefore, understanding how consumers who identify with a brand identification is the degree to which individuals define themselves in
on the basis of CSR respond to negative CSR publicity about it is im- terms of the same traits or values that they believe define an organi-
portant. A growing body of research (Einwiller et al., 2006; Lisjak, Lee, zation (Dutton et al., 1994). This perception of overlap between the
& Gardner, 2012; Liu, Wang, & Wu, 2010) points to a buffering effect of self-concept or identity and that of the organization cause the organi-
stronger CeC identification on consumer reactions to negative brand zational values or traits to become self-referential or self-defining
publicity, particularly when such publicity is of moderate, as opposed (Pratt, 1998), producing a sense of connectedness to, and feeling of
to extreme, negativity. However, this research either focuses on gen- oneness with, the organization (Mael & Ashforth, 1992). Importantly,
eral, as opposed to CSR-based, identification (Lisjak et al., 2012; Liu identification with an organization also occurs in the absence of formal
et al., 2010) or on negative CA, as opposed to CSR, publicity (Einwiller membership, as in the case of consumers' identification with a company
et al., 2006). This buffering effect is also reflected in research (see (i.e., CeC identification).
Table 1 for a summary) examining the link between both CSR- and CA- Notably, CeC identification can have diverse bases, as our mar-
related negative brand publicity and a broader variety of generic (i.e., ketplace poll revealed (see Appendix). In other words, the company
neither CSR- or CA-specific) consumer-brand connections (e.g., brand values or traits that constitute the company identity, with which con-
attachment (Schmalz & Orth, 2012), brand commitment (Ahluwalia, sumers identify, can vary across consumers and companies. For in-
Burnkrant, & Unnava, 2000; Liu et al., 2010), self-brand connection stance, some companies, such as Patagonia, position themselves on CSR
(Cheng, White, & Chaplin, 2012; Trump, 2014), and brand-customer by highlighting their social and/or environmental values, whereas
relationship strength (Jeon & Baeck, 2016). others emphasize their CA or corporate abilities, both in terms of
More specifically, Jeon and Baeck (2016) show that when con- functional (e.g., performance by Nike) or hedonic (e.g., pure driving
sumers' associations with a brand are predominantly CSR-based, a pleasure by Alfa Romeo) attributes that their products offer consumers.
stronger brand-customer relationship increases the likelihood of de- Of course, the identities of companies can comprise both CA and CSR,
fensive consumer attitudes toward negative CSR publicity, relative to such as Toyota, which focuses on product quality as well as on being
CA publicity. Pullig, Netemeyer, and Biswas (2006) echo this finding, environmentally friendly.
showing that when consumers' prior brand attitudes are held with high Importantly, prior research suggests a CSR-based corporate identity
certainty, they engage in more defensive processing of subsequent ne- constitutes a particularly meaningful basis for identification (Currás-
gative CSR-related information when the brand is positioned on CSR Pérez et al., 2009; Du et al., 2007) relative to a CA-based identity. In
than when it is positioned on CA. However, both studies treat a brand's investigating why, Ybarra, Chan, and Park (2001) find the identity di-
CSR associations as orthogonal to consumers' relationships with the mensions of CA and CSR map onto the basic domains of competence
brand instead of the basis of such relationships (see also Trump (2014)), and morality that people rely on to structure and make sense of
as in the case of CSR-based identification. In sum, no research has thus themselves and others. Critically, much research (e.g., Pagliaro et al.,
far, to the best of our knowledge, examined the effect of a CSR-based 2016; see Ellemers, van der Toorn, and Paunov (2019), for a recent
consumer-brand relationship, such as CeC identification, on consumer review) suggests that of these domains, the moral one is more diag-
reactions to negative CSR publicity. nostic and consequential in people's perceptions, cognitions, and eva-
This paper draws on prior research on CeC identification (Bergami luations of both themselves and others, including groups and organi-
& Bagozzi, 2000; Bhattacharya & Sen, 2003), consumer reactions to zations. The social function of morality underscores this exalted status
competence versus integrity transgressions (Pagliaro, Ellemers, Barreto, of morality over competence (Haidt, 2003; Pagliaro et al., 2016): our
& Di Cesare, 2016; Skowronski & Carlston, 1987), and, more broadly, desire to not just see ourselves as good people (Aquino & Reed II, 2002),
the psychology of morality (e.g., Ellemers, van der Toorn, Paunov, & but also to have relevant social others admire and accept us (Pagliaro
van Leeuwen (2019)) to suggest consumers' reactions to negative CSR et al., 2011), determines our moral beliefs and behaviors. Thus, our
publicity about a company engaged in CSR hinges on the extent to conceptions of morality are located in and emanate from the social
which its CSR activities comprise the basis for their identification with groups we belong, or aspire to belong, to (Ellemers, 2017). This points
the company. More specifically, a laboratory experiment and a quasi- to CSR (i.e., morality)-based CeC identification as more closely tied,
experimental study involving the VW emissions scandal test our pre- and central, to a person's social identity than CA-based CeC identifi-
diction that when identification is based on a company's CSR activities cation (Brewer, 1991; Hogg & Abrams, 1988).
(i.e., CSR-based CeC identification), more strongly identified con- In sum, CSR-based identification is likely to be particularly self-re-
sumers will react more adversely to negative CSR publicity about the levant (Johnson, Matear, & Thomson, 2011) to consumers in con-
company than their more weakly identified counterparts or those who structing their self-defining and -enhancing social identities, because
identify based the company's CA dimension. As well, we provide evi- CSR, more than CA, reveals the character of a company (Brown &
dence for the mechanism theorized to underlie this identification-based Dacin, 1997), humanizes it (Du et al., 2007), and is tied to its values,
backfiring effect: when faced with negative CSR publicity, consumers ethics, and morality (Mishina, Block, & Mannor, 2012). This has clear
with higher CSR-based CeC identification are more likely to not only implications for how CSR-identified consumers respond to potentially
feel betrayed by the company, but also to disidentify with it, increasing identity-negating CSR negative publicity, which we theorize about next.
their propensity to oppose the company, such as through negative word
of mouth. 2.2. CSR-based CeC identification and negative publicity
Next, we theorize about CSR-based CeC identification and its effect
on consumer responses to negative CSR publicity. We then present the Much research points to the buffering effect of CeC identification on
two studies that test our predictions. We end with a discussion of the consumers' reactions to negative company publicity (see Table 1). This
theoretical and managerial implications of our findings, as well as their research converges on the notion that this buffering stems from the
limitations and further research. identified consumers' motivation to protect their self-concept (Cheng
et al., 2012; Einwiller et al., 2006; Lisjak et al., 2012; Trump & Brucks,
2. Literature review and hypotheses 2012), of which the company identity is a part. This identification-in-
duced self-protective motive, in turn, not only produces biased, de-
2.1. Consumer-company (CeC) identification fensive information processing (e.g., Kunda, 1990), with more chari-
table attributions about the company, but also causes consumers to be
In the service of their self-esteem and self-enhancement needs, more forgiving of it (Bhattacharya & Sen, 2003).
people tend to identify with various social categories (Tajfel & Turner, Our central assertion is that in the case of CSR-based CeC

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identification, stronger identification will exacerbate, rather than the kind of strong emotional reactions that are more characteristic of
buffer, the effect of negative CSR publicity, with the more strongly moral violations that reflect poorly on the self than of comparable
identified consumers reacting more negatively than their more weakly competence violations (Skitka et al., 2005). We suggest this perceived
identified counterparts. Three related reasons lead to this prediction. betrayal, defined as a customer's belief that a firm has deliberately
First, research on social inference (e.g., Pagliaro et al., 2016; Ybarra violated the norms in the context of their relationship, is likely to cause
et al., 2001) points to an asymmetry in people's dispositional ascriptions the strongly CSR-identified consumer to disidentify with the company.
of negative information regarding an actor's competence versus mor- Disidentification, a distinct psychological state, entails disconnecting
ality: people intuitively believe that whereas both dispositionally from aspects of the company (Kreiner & Ashforth, 2004). Dis-
competent and incompetent actors can commit incompetent acts, only identification ensues when identified consumers realize the basis for
actors who are dispositionally immoral commit immoral acts. As a re- their identification has been violated, and that they can no longer at-
sult, after exposure to negative CSR publicity consumers are more likely tribute to the company the specific traits guiding their identification. In
to ascribe dispositional immorality to a company (i.e., “this is an in- other words, the company with which consumers identified now poses a
herently immoral company”) than they are to ascribe dispositional in- threat to their moral identity, causing them to actively repudiate and
competence to a company after exposure to negative CA publicity. In reject it in an effort to protect and restore their sense of moral self.
other words, consumers are more likely to attribute negative CSR Employee research also supports this effect (Kreiner & Ashforth, 2004).
publicity to the company's enduring character than they are to attribute Rousseau (1989) shows that disidentification occurs when employees
negative CA publicity to the company's enduring character (Skowronski perceive an employer as violating the psychological contract, or the
& Carlston, 1987). mutual beliefs, perceptions, and informal obligations between them. As
Second, although this asymmetry in consumers' reactions to nega- in the case of the employer-employee relationship, a strong CeC
tive CSR versus CA brand publicity is likely to manifest regardless of identification can be construed as an implicit psychological contract
their identification bases and levels, we argue, based on our discussion between the consumer and the company. Thus, a corporate transgres-
above, that CeC identification is more self-relevant for CSR-identified sion in the domain of a consumer's basis of identification (i.e., CSR) is
consumers than for their CA-identified counterparts. Consequently, the likely to constitute a perceived breach of psychological contract, pro-
strongly identified CSR-based identifiers will react more adversely than ducing a sense of betrayal and disidentification.
the strongly identified CA-based identifiers to their perception, trig- Prior research suggests a key behavioral manifestation of dis-
gered by negative publicity, that the company is immoral. Because identification is brand opposition and, more specifically, intentions to
people are more motivated to protect their moral self-view than their punish the company (Grégoire & Fisher, 2008; Wolter, Bach, Cronin, &
competence self-view (Ellemers et al., 2019; Skitka, Bauman, & Sargis, Bronn, 2016). The sense of betrayal identified consumers feel toward
2005), we can expect those who identify with a company in order to the company and their consequent efforts at disidentification are likely
reinforce and perhaps enhance their moral, as opposed to competence, to trigger these intentions to punish the company. As discussed earlier,
self-view to react particularly strongly to information that renders the such behaviors are particularly likely in the case of strongly CSR-
company and, in turn, them, inherently immoral. Such people are more identified consumers, stemming from their efforts to alleviate and
likely than others to find the immorality reflected on them to be ideally repair the stress and emotional distress the company's perceived
aversive and stressful (Pagliaro et al., 2016), causing them to reject moral betrayal produced. Such opposition behaviors can take direct
more vehemently the company they no longer see as sharing their forms, such as vindictive complaining, or more indirect forms, such as
moral convictions or aspirations (Skitka et al., 2005). In addition, spreading negative word of mouth (Coombs & Holladay, 2009; Johnson
consumers with higher CSR-based identification are likely to care more et al., 2011), harming the company's reputation and encouraging others
about being moral than those less identified on CSR or highly identified to avoid patronizing it (Grégoire & Fisher, 2008). In sum, we suggest
on CA, causing them to find the company's moral violation particularly that CSR-based negative publicity causes CSR-based identifiers to feel
abhorrent. betrayed by the company, producing disidentification and, in turn,
Third, consumers with stronger CSR-based CeC identification are opposition behaviors toward the company. More formally:
more likely than CA-identified consumers to experience negative moral
H2. Negative CSR publicity causes strongly CSR-identified consumers
emotions, such as guilt, shame, and disgust, in response to negative CSR
to feel betrayed. These feelings of betrayal are, in turn, likely to produce
publicity (Ellemers et al., 2019; Johnson et al., 2011). At the same time,
disidentification among such consumers, increasing their intentions to
the former may experience moral anger and outrage at the company for
display brand-opposition behaviors (negative word of mouth and
violating one or more moral mandates that drew them to the company
punishment).
in the first place (Tetlock, 2003). These distressing emotions are likely
to constitute strong motivators for consumers to turn against the
company based on the negative CSR publicity, allowing them to alle- 3. Study 1
viate at least somewhat their affective discomfort.
In sum, we suggest that negative CSR publicity is more likely than 3.1. Design and procedure
negative CA publicity to make the company attitudes and consequent
behaviors of CSR-identified consumers contrast away from, rather than Study 1 tested H1 with a two-factor design: (1) CSR-based CeC
assimilate toward, their prior positive perception about the company. identification (measured), and (2) negative publicity type (three levels:
More formally: (1) control (no negative publicity), (2) negative CSR-related, (3) ne-
gative CA-related). In total, 123 undergraduate students (70% women,
H1. Unlike in the case of CA-related negative publicity, CSR-related
30% men, Mage = 24) took part in the experiment at the end of class.
negative publicity produces more negative attitudes toward a company
Participation was voluntary and not compensated by course credit or
among consumers high on CSR-based CeC identification than among
other incentives. We informed participants they would be participating
consumers low on CSR-based CeC identification.
in a “study on investment decisions” and asked them to imagine that a
More specifically, because CSR-related negative publicity under- substantial amount of money they inherited was invested in funds
mines the basis of the consumer-company bond for CSR-identified managed by the (fictitious) asset-management firm Ecoworld. This in-
consumers and destroys the moral assurance they derive from the re- struction was intended to increase participants' interest in the scenario
lationship with the company, such consumers are likely to feel betrayed and their potential for CSR-based CeC identification with the firm (see
by the company they had previously trusted as a part of their social Einwiller et al., 2006). We then asked participants to carefully read a
identity (Bhattacharya & Sen, 2003). This sense of betrayal engenders screenshot of the company's homepage describing its business

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principles. Ecoworld was positioned in this screenshot as a socially re- Following their exposure to the news post, we gauged participants'
sponsible company, focused on functional risk management with op- general attitudes toward the company, using four 9-point semantic
timal returns and the creation of mutual funds that invested solely in differentials taken from Spears and Singh (2004): bad (1) – good (9),
companies meeting screening requirements for social and environ- unpleasant – pleasant, unappealing – appealing, unlikable – likable. We
mental responsibility. We expected this description of the asset-man- averaged the four items to form an attitude index (M = 4.65,
agement firm to result in strong identification among those participants SD = 1.02, α = 0.81). Then, we measured participants' SR values in
for whom social and environmental responsibility is important to their terms of three statements taken from Einwiller et al. (2006): “It is ex-
self-concept. tremely important to me that companies behave responsibly when it
Next, participants completed the identification measures and were comes to social and environmental matters,” “Investors and consumers
assigned, at random, to one of three (negative) publicity conditions, in should make an effort to support socially responsible companies,” and
the guise of a news report that had allegedly appeared on an in- “I would prefer to invest in a socially responsible company.” We mea-
dependent online news site. In the control condition, the post read as sured responses to each statement on a 9-point scale (1 = strongly dis-
follows: agree, 9 = strongly agree) and averaged them to obtain an SR-values
index (M = 5.56, SD = 1.92, α = 0.93). Finally, participants stated
The investment company ECOWORLD continues its investment
their gender and age.
plan. With its newly issued ECOWORLD Growing Markets Fund the
investment company extends its investments in companies that op-
3.3. Manipulation checks
erate predominantly in Asian emerging markets. Thereby, ECOW-
ORLD follows the current trend to partake the economic growth of
To ensure the successful manipulation of negative publicity, we
developing countries.
conducted a pretest among 59 undergraduate students (64% women,
In the negative CSR-related condition, the neutral post was sup- 31% men, 5% no answer; Mage = 23) belonging to the same population
plemented with the following information: as in the main study. We informed participants that they would be
participating in a “study on the depiction of a financial service provider
Untimely for the company comes the report of the business maga-
in the media” and presented them with one of the three versions of the
zine WiSo from November 30th that points out mismanagement at
news report (negative CSR, negative CA, or control). They rated the
ECOWORLD. In a current investigation by the magazine it is stated
news report on two 7-point semantic differentials: negative (1) – posi-
that ECOWORLD invested to a significant degree in companies that
tive (7), uninteresting (1) – interesting (7). Results showed participants
offend against central principles of environmental and social
perceived the negative messages (NCA = 20, NCSR = 20) as more ne-
agreeableness. This is contrary to ECOWORLD's publicized guiding
gative than the control message (Ncontrol = 19) (Mneg = 3.18 vs.
principles.
Mcontrol = 4.00; t (57) = 3.37, p < .01) but equally interesting
In the negative CA-related condition, the neutral post was supple- (Mneg = 3.18 vs. Mcontrol = 2.83; t(57) = 0.89, p = .38). The two ne-
mented as follows:1 gative messages were not significantly different on either negativity or
interestingness (negative: MCA = 3.35 vs. MCSR = 3.00; t(38) = 1.32,
Untimely for the company comes the report of the business maga-
p = .19; interesting: MCA = 3.15 vs. MCSR = 3.20; t(38) = −0.12,
zine WiSo from November 30th that points out mismanagement at
p = .91). Furthermore, the two negative publicity conditions were rated
ECOWORLD. In a current investigation by the magazine it is stated
on two additional items concerning the media allegations: not serious
that ECOWORLD invested to a significant degree in companies that
(1) – serious (7), unworthy of condemnation (1) – worthy of con-
experts consider highly risky investments. This is contrary to ECO-
demnation (7). Participants saw the allegations as equally serious
WORLD's publicized guiding principles.
(MCA = 3.85 vs. MCSR = 3.30; t (38) = 1.13, p = .27) and worthy of
Following the news post, we measured participants' general attitude condemnation (MCA = 3.70 vs. MCSR = 3.30; t (38) = 0.94, p = .35).
toward the company and their social responsibility (SR) values, as well In the main study, the company description was successful in gen-
as their age and gender. Participants were then debriefed and dis- erating stronger and weaker identified participants as intended. The
missed. median for CSR-based CeC identification was 4.75 (i.e., around the
midpoint of the scale); about half of the sample revealed stronger and
half exhibited weaker CSR-based CeC identification with Ecoworld. In
3.2. Measures addition, participants' identification with Ecoworld was significantly
correlated with the extent to which they endorsed SR values (r
All variables were measured with established scales. After partici- (121) = 0.85, p < .001), providing convergent validity for the basis of
pants read the screenshot from the Ecoworld homepage, they indicated participants' identification with the company; individuals with stronger
their identification with the company on an eight-item scale from SR values identified more strongly with the stimulus company because
Einwiller et al. (2006), comprising the following statements: “I am of its social and environmental identity.
somewhat associated with Ecoworld,” “I have a sense of connection with
Ecoworld,” “I consider myself as belonging to the group of people who 3.4. Results
are in favor of Ecoworld,” “Customers of Ecoworld are probably similar
to me,” “Employees of Ecoworld are probably similar to me,” “Ecoworld To test the hypothesized interaction between CSR-based CeC
shares my values,” “Being a customer of Ecoworld is part of my sense of identification and negative publicity, we conducted a simple modera-
who I am,” and “Purchasing Ecoworld's mutual funds would help me tion analysis with PROCESS 2.15 for SPSS (Hayes, 2012). The regres-
express my identity.” We measured responses on a 9-point scale sion equation included a continuous variable for CSR-based CeC
(1 = strongly disagree, 9 = strongly agree) and averaged them to obtain identification, two dummy-coded variables for negative publicity
an index for CSR-based CeC identification (M = 4.56, SD = 1.53, (dummy 1: negative CSR-related publicity = 0 and negative CA-related
α = 0.91). publicity = 1; dummy 2: negative CSR-related publicity = 0 and con-
trol information = 1), and two interaction terms for identification x
1
A broader conceptualization of CSR may encompass this aspect of carless dummy 1 (CSR-related vs. CA-related) and identification x dummy 2
product management as responsibility for customers. Yet, in this study, we (CSR-related vs. control).
focus on social and environmental aspects of CSR and therefore do not subsume Results revealed that both two-way interactions of negative pub-
“carless product management” under the CSR concept. licity and CSR-based CeC identification on attitude toward the

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Fig. 1. Results (study 1), interaction (attitude toward


Ecoworld): CSR-based CeC identification x information
type
Note. Arrows represent significant differences (p < .05)
between the information types for low (-1SD), medium,
and high (+1SD) CSR-based CeC identification.

company were significant (identification x dummy 1: b = 0.425, t high level of CSR-based CeC identification. Participants who strongly
(117) = 3.665, p < . 001; identification x dummy 2: b = 0.333, t identified with Ecoworld were rather insensitive to CA-related negative
(117) = 3.086, p < . 01). The whole model explained a significant publicity but particularly sensitive to negative publicity in the CSR
proportion of the variance in attitude toward the company (R2 = 0.50, domain. In line with buffering, strongly identified consumers favored
F(5, 117) = 23.611, p < .001), of which a significant proportion was the company regardless of whether it had done anything wrong or
due to the incorporated interaction terms (increase in R2 = 0.064, F whether it had received negative CA-related publicity. We found no
(2,117) = 7.570, p < .001). significant attitude difference between the control and the negative CA-
Given the significant moderator effect, we next examined its parti- related condition (b = 0.469, t(120) = 1.962, p = .052). By contrast,
cular form (see Fig. 1). In line with H1, the slope in the negative CSR- when the negative publicity was CSR related, strongly identified par-
related publicity condition was negative (b = −0.165, t ticipants indicated significantly lower attitudes compared to the control
(121) = −2.001, p < . 05), indicating that the more participants (b = −2.116, t(120) = 8.943, p < . 001) and the negative CA-related
identified with Ecoworld, the worse their attitude after exposure to CSR- condition (b = −1.647, t(120) = 7.436, p < . 001). Together, these
related negative publicity. By contrast, the slope in the negative CA- patterns provide support for H1. In the next study, we replicated H1 and
related publicity condition was positive (b = 0.260, t(121) = 3.186, test H2 using a real negative CSR-related publicity context.
p < . 01), indicating the buffering effect of CeC identification holds
when the negative publicity is not related to the basis of identification. 4. Study 2
To gain more detailed insights into the pattern of effects, we con-
ducted several spotlight analyses comparing all three negative-publicity Using a real-world setting, study 2 extends the study 1 findings by
conditions at weak (-1SD = 3.03), moderate (M = 4.56), and strong comparing the effects of negative CSR publicity depending on the basis
(+1SD = 6.08) levels of CSR-based CeC identification. When partici- of CeC identification, CSR versus CA, and showing these effects not
pants were weakly identified, negative publicity degraded their attitude only on attitudes but also on consumers' disidentification and brand-
toward the company regardless of the domain of the publicity (i.e., CSR opposition intentions. In doing so, study 2 sheds light on our theorized
or CA). Spotlight analysis at 1 SD below the mean of CSR-based CeC process (H2).
identification showed that in both negative publicity conditions, CSR-
related (b = −1.101, t(120) = 4.725, p < . 001) and CA-related 4.1. Procedure and participants
(b = −0.752, t(120) = 3.334, p < .01) consumers held worse atti-
tudes than in the control condition, but we found no significant dif- The study context was the Volkswagen (VW) emissions scandal that
ference between the two negative-information conditions (b = 0.350, t erupted in September 2015 after the company was accused of cheating
(120) = 1.344, p = .182). pollution emissions tests in the US. VW had employed a hybrid posi-
Yet, already at a moderate level of CSR-based CeC identification, tioning strategy, focusing on aspects such as affordability and sporti-
the backfiring and buffering effects resulted in a significant publicity ness, as well as promoting its diesel cars as environmentally friendly.
domain-specific difference (b = −0.998, t(120) = 6.074, p < . 001). The company had even received the Green Car of The Year award in
Although exposure to both CSR- and CA-related negative publicity had 2009 and 2010 for two of its diesel models; these prizes were with-
a negative impact on the attitudes of participants relative to the control drawn in the wake of the crisis (Kaye, 2015). Because VW breached its
condition, this negative effect was greater for participants in the CSR- environment-related promises, which represents a CSR-related corpo-
related condition (b = −1.608, t(120) = 9.595, p < . 001) than in the rate transgression, this case is particularly suited to test the predicted
CA-related condition (b = −0.610., t(120) = 3.705, p < . 001). backfiring effect of CSR-based CeC identification.
Finally, the buffering versus backfiring effect was most evident at a We conducted two surveys, one in the US, where the VW emissions

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scandal broke, and one in Germany, the country of origin and home 4.2. Sample
market of VW. We recruited participants, as part of a larger study,
through automobile-specific online panels, described in more detail in We collected data, as part of a larger study, through an online
the next section. The survey procedure and questionnaire were identical survey among current VW owners in the US and Germany, whom we
in both countries. Because measuring respondents' level of pre-scandal contacted through an independent and global market research com-
CeC identification directly was difficult, we applied a two-step proce- pany. The company maintains a wide range of consumer panels
dure to establish a valid indicator of CSR-based CeC identification. with > 5.5 million members in 45 country markets, and uses a com-
First, we selected for the purposes of this study only those survey par- prehensive validation approach to ensure the quality of respondents.
ticipants who had demonstrated loyalty to VW before the transgression The company's vehicle profiler allowed us to target VW customers in
became public, by having bought a VW car at least twice before the both countries. Qualified respondents were provided a link to the online
scandal broke. Loyalty, which is defined as a deeply held commitment survey and incented adequately relative to the survey length.
to re-buy a preferred product (Oliver, 2010), is considered a key con- For the purposes of this study, we selected only those participants
sequence of CeC identification (Bhattacharya & Sen, 2003). Loyalty from the total sample who had bought a VW at least twice before
behavior can also be due to other factors, such as convenience, habit, or September 18, 2015, the day the allegations of cheating emissions tests
a lack of alternatives (e.g., Dick & Basu, 1994). The automobile sector, first broke in the US. This selection process yielded 169 respondents in
however, is not short of alternatives, and a car purchase—being a high- the US and 274 in Germany. The German sample was gender balanced
involvement purchase—is unlikely to happen simply out of convenience (GER: 49.6% women), whereas in the US sample, a majority of re-
or habit. Notably, research has shown the effect of brand identification spondents were women (US: 69.2% women). The average age was 53
on consumer loyalty in the automobile sector (Kuenzel & Halliday, (SD = 15.34) in the US and 49 (SD = 13.34) in the German sample. Of
2008), as well as in other sectors including consumer goods the US respondents 49% had a monthly net income of < 3300 USD;
(Stokburger-Sauer, Ratneshwar, & Sen, 2012), financial services (Pérez 64% of the German respondents had a monthly net income of < 3000
& Rodríguez del Bosque, 2015), mobile telecommunications services Euro (≈ 3270 USD). Data collection took place in January of 2016,
(He & Li, 2011), and travel agencies (Homburg, Wieseke, & Hoyer, about half a year after the scandal had erupted.
2009). Therefore, we consider behavioral loyalty to be a viable proxy
measure for CeC identification in our focal context. 4.3. Measures
Second, we asked participants in our study sample to cast their
minds back to when they bought their current VW car and to indicate All measures employed 7-point scales and were based on previous
their buying motivation by indicating the importance of different at- research (see Table 2 for descriptive statistics). We measured re-
tributes for their decision to choose the make and model they did spondents' motivation for buying their current VW car (1 = not at all
(Hsieh, Pan, & Setiono, 2004). These attributes included eco-friendli- important, 7 = very important) using various items adapted from Hsieh
ness (three items) hedonic ones such as sportiness, and basic factors et al. (2004). Based on exploratory and confirmatory factor analyses,
such as safety (see below for complete list of items). Respondents' eco- we identified three distinct buying motivations: ecological (“eco-
friendliness ratings served as indicators of CSR's (in this case, eco- friendly,” “low on emissions,” “manufacturer showed concern for the
friendliness) self-relevance to them. To validate that this ecological environment”), hedonic (“fun to drive,” “sporty,” “exciting”), and a
motivation was indeed self-relevant and self-defining for the VW cus- hygiene factor including basic attributes (“durability,” “reliability,”
tomer's identity, we also measured respondents' general green con- “safe in accidents”), which participants rated as highly important
sumption values (Haws, Winterich, & Naylor, 2014)2 at the end of the throughout the sample (M = 6.29, SD = 0.82). We measured perceived
survey. As expected, green consumption values and ecological buying betrayal using three statements adapted from Grégoire and Fisher
motivation were strongly correlated (r (441) = 0.604, p < .001). Be- (2008): “I feel cheated,” “I feel betrayed,” and “I feel lied to”
cause our sample comprised only loyal owners, strongly identified with (1 = strongly disagree, 7 = strongly agree). We measured disidentifica-
VW, respondents' eco-friendliness buying motivation (i.e., attribute tion using a scale developed by Kreiner and Ashforth (2004): “I feel
importance ratings) served as indicators of their level of CSR-based CeC alienated from VW,” “I feel detached from VW,” “I am embarrassed to
identification and as the independent variable for testing our hy- own a VW,” “I find VW to be disgraceful,” “I want people to know that I
potheses. To show the predicted backfiring effect does not hold when disagree with how VW behaves,” and “I am ashamed of what goes on at
identified consumers value aspects other than eco-friendliness (i.e., VW” (1 = strongly disagree, 7 = strongly agree). In addition, we gauged
aspects not related to the scandal), we also included respondents' he- customers' intention to oppose the brand with two items (1 = highly
donic buying motivation, which reflects CA-based CeC identification, unlikely, 7 = most likely) on negative word of mouth (“I will encourage
as an independent variable in our analysis. friends or relatives NOT to buy cars from VW” and “I will say negative
Following the retrospective assessment of the CeC identification things about VW and its cars to other people”) taken from Coombs and
basis, the questionnaire turned to the present time and the VW emission Holladay (2009) and one item from Grégoire, Tripp, and Legoux's
scandal. This section included measurements for respondents' percep- (2009) desire-for-revenge scale (“I will try to punish VW in some way”).
tions of betrayal, consumer disidentification, and brand-opposition in-
tentions. To conclude, we asked participants several sociodemographic 4.4. Data analysis and results
questions.
4.4.1. Reliability, validity, and common-method bias
Prior to hypothesis testing, we subjected the described measurement
scales to a commonly used validation process to assess their reliability,
validity, and unidimensionality. Using Cronbach's alpha as a first in-
2
dicator, all measurements showed satisfying reliability with values
The green consumption scale by Haws et al. (2014) comprises the following
ranging from 0.82 to 0.95. In the next step, we used confirmatory factor
items: “It is important to me that the products I use do not harm the environ-
analysis (CFA) to verify the convergent and discriminant validity of the
ment,” “I consider the potential environmental impact of my actions when
making many of my decisions,” “My purchase habits are affected by my concern measures. As indicated by the fit statistics, the supposed measurement
for our environment,” “I am concerned about wasting the resources of our model fit well with the data (χ2(172) = 423.30, p < .001, χ2/df = 2.46,
planet,” “I would describe myself as environmentally responsible,” and “I am CFI = 0.962, TLI = 0.954, RMSEA = 0.057, SRMR = 0.050); all con-
willing to be inconvenienced in order to take actions that are more en- sidered indices fulfilled commonly accepted cutoff criteria (Hu &
vironmentally friendly” (α = 0.95). Bentler, 1999). Furthermore, convergent validity among the measures

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Table 2
Construct descriptives, correlations, reliability and validity measures (study 2).
Variables (1) (2) (3) (4) (5) (6)

(1) Hygiene factor (0.63) 0.23 0.30 0.06 0.10 0.20


(2) Hedonic motivation 0.21 (0.72) 0.29 0.03 0.07 0.06
(3) Ecological motivation 0.23 0.27 (0.79) 0.32 0.26 0.19
(4) Perceived betrayal 0.05 0.03 0.29 (0.86) 0.62 0.34
(5) Consumer disidentification −0.08 0.02 0.26 0.64 (0.61) 0.58
(6) Intention to brand opposition −0.24 0.02 0.17 0.34 0.57 (0.68)
Mean 6.29 4.86 4.69 3.80 2.71 2.08
Standard deviation 0.82 1.49 1.55 2.04 1.51 1.43
Cronbach's α 0.82 0.88 0.91 0.95 0.91 0.85
Composite Reliability 0.84 0.88 0.92 0.95 0.90 0.86

Note. The parenthesized number in the diagonal is the AVE (average variance extracted), below the diagonal elements are the correlations between the constructs,
above the diagonal elements are the HTMT (heterotrait-monotrait) ratios.

was achieved, as all factor loadings were above 0.67 and statistically ecological motivation, hedonic motivation, the hygiene factor, per-
significant (p < .001), and all AVE (average variance extracted) scores ceived betrayal, consumer disidentification, and intention to retaliate);
were above the minimum threshold of 0.50. Composite reliabilities and (3) a seven-factor model, in which all items were further con-
ranging from 0.84 to 0.95, which exceeds the minimum threshold of strained to load equally on an unmeasured latent method factor. The
0.70, further support strong reliability (Hair, Tatham, Anderson, & one-factor model (χ2(189) = 4207.64, p < .001, χ2/df = 22.26,
Black, 1998). Using the Fornell-Larcker criterion, we checked for dis- CFI = 0.40, TLI = 0.33, RMSEA = 0.219, SRMR = 0.174,
criminant validity among the measures (Fornell & Larcker, 1981). All BIC = 4463.57) fitted our data poorly. Comparing the seven-factor
AVEs were larger than the squared correlation between the construct model (χ2(171) = 412.6, p < .001, χ2/df = 2.41, CFI = 0.964,
and any others. Finally, we calculated heterotrait-monotrait ratios TLI = 0.955, RMSEA = 0.057, SRMR = 0.051, BIC = 778.24) with our
(HTMT) of correlations to gauge discriminant validity. All were lower original six-factor model (χ2(172) = 423.30, p < .001, χ2/df = 2.46,
than the conservative threshold of 0.85 (Henseler, Ringle, & Sarstedt, CFI = 0.962, TLI = 0.954, RMSEA = 0.057, SRMR = 0.050,
2015). The highest HTMT score was 0.62 for the constructs consumer BIC = 782.82) shows model fit did not improve substantially upon in-
disidentification and perceived betrayal. Overall, our constructs exhibit clusion of an unmeasured latent method factor. Besides, no substantial
sound measurement properties (see Table 2). differences (> 0.2) emerged for any of the central constructs when
Because all measures are self-reported, common-method bias (CMB) comparing standardized regression weights in both models. Further-
can be a potential problem (Podsakoff, MacKenzie, Lee, & Podsakoff, more, in line with Homburg, Müller, and Klarmann (2011), we included
2003). We tried to mitigate this problem in various procedural ways the latent method factor in the structural model for hypothesis testing
(MacKenzie & Podsakoff, 2012), by, for instance, easing respondents' (see also Elbedweihy, Jayawardhena, Elsharnouby, & Elsharnouby,
task to recall restrospective buying motivation, introducing a clear 2016). The inclusion of this factor did not affect our findings. In sum,
temporal separation between this retrospective measurement and these results indicate CMB was not a significant issue in our data.
measurements pertaining to the negative publicity, enhancing re-
spondents' geneneral motivation through careful instructions, and 4.4.2. Serial multiple mediation analysis
minmizing the repetitiveness of scales. In addition, we applied statis- Having established the reliability and validity of our measurements,
tical methods to assess CMB. Using CFA, we compared three different we tested the hypothesized relationships in a serial multiple mediation
models of the considered measurements: (1) a one-factor model, in model based on a bias-corrected bootstrapping procedure with the
which all items loaded on a common factor; (2) a full measurement six- PROCESS 2.15 macro in SPSS (Hayes, 2012). As depicted in Fig. 2,
factor model, in which the items loaded on their respective factors (i.e., PROCESS 2.15 estimates all possible direct and indirect effects of an

Fig. 2. Tested serial multiple mediation model for the influence of ecological motivation (study 2).

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Table 3
Results (study 2) for serial multiple mediation model.
Path coefficients Indirect effects

to perceived betrayal (M1) to consumer disidentification (M2) to brand opposition (Y) Estimate Bias-corrected bootstrap 95% CI

Model variables
Ecological motivation 0.41 (0.06)⁎⁎⁎ 0.10 (0.04)⁎ 0.09 (0.04)⁎
Perceived betrayal 0.41 (0.03)⁎⁎⁎ 0.01 (0.04)
Consum. disidentification 0.43 (0.05)⁎⁎⁎

Covariates
Hygiene factor −0.05 (0.12) −0.23 (0.07)⁎⁎ −0.28 (0.07)⁎⁎⁎
Hedonic motivation −0.08 (0.07) 0.02 (0.04) 0.02 (0.04)
R2 0.09⁎⁎⁎ 0.36⁎⁎⁎ 0.28⁎⁎⁎

Indirect effects
Total 0.12 (0.02) 0.080; 0.178
EM ➔ PB ➔ OPP 0.01 (0.02) −0.028; 0.041
EM➔ PB ➔ CD ➔ OPP 0.07 (0.02) 0.045; 0.114
EM ➔ CD ➔ OPP 0.04 (0.02) 0.010; 0.085

Note. N = 443. M1 = first mediator, M2 = second mediator, Y = outcome variable, CI = Confidence Interval, EM = Ecological Motivation, PB = Perceived Betrayal,
CD = Consumer Disidentification, OPP = Intention to Brand Opposition. Model coefficients are reported in unstandardized form, standard errors are displayed in
parentheses, confidence intervals are based on 10,000 bootstrap samples.

p < .05.
⁎⁎
p < .01.
⁎⁎⁎
p < .001.

independent variable X through a sequence of two (or more) mediators entirely above zero.
on a dependent variable Y. This has the advantage of not ignoring Beside this hypothesized sequential mediated process, two other
potential effects that one has not assumed a priori (Hayes, 2013). In our effects showed significance in the analysis. First, ecological buying
case this means that ecological buying motivation (X), i.e. the proxy for motivation also had a marginally significant and positive direct effect
the level of CSR-based CeC identification, is linked to customers' in- on customers' intention to oppose VW (c’ = 0.09). Second, the indirect
tention to brand opposition (Y) in four ways: (1) a direct effect from effect through consumer disidentification alone was significant as in-
ecological motivation to intention to brand opposition, (2) an indirect dicated by a bootstrapping confidence interval entirely above zero (CI:
effect through perceived betrayal (M1) only, (3) an indirect effect 0.010; 0.085). Identified customers who valued ecological attributes
through consumer disidentification (M2) only, and (4) an indirect effect tended to disidentify (a2 = 0.10) with VW after the company had vio-
through perceived betrayal and consumer disidentification sequen- lated their psychological contract by cheating on emissions tests, and
tially. The described sequential indirect effect corresponds to our hy- consumer disidentification in turn stimulated people's intention to
pothesis H2 regarding the process underlying the backfiring effect of brand opposition (b2 = 0.43). However, the indirect effect mediated
CSR-based CeC identification. through perceived betrayal alone was not significant, since the boot-
We included two covariates in the model estimation: The hygiene strapping confidence interval included zero (CI: −0.028; 0.041).
factor was included, because its attributes were rated highly important As a covariate, hedonic buying motivation did not affect any vari-
by most of the survey participants and could therefore play a role in able in the model. To further validate our findings concerning the
participants' intention to brand opposition. Hedonic buying motivation backfiring effect of CSR-based CeC identification, we also tested the
as an alternative source of CeC identification was included in order to serial multiple mediation model with hedonic buying motivation as the
demonstrate that this factor does not affect the assumed process un- independent variable instead, controlling for ecological buying moti-
derlying the backfiring effect. Hedonic attributes are particularly suited vation. Results indicate that hedonic buying motivation affected cus-
for this purpose, because they not only have a high potential to be self- tomers' intention to brand opposition neither directly nor indirectly.
relevant and to serve as a basis of CeC identification, but are also un- Overall, the results of study 2 corroborate study 1's support for the
related to VW's CSR-related transgression. backfiring effect of CSR-based CeC identification in the case of CSR-
Table 3 displays the detailed results for path estimates and indirect related negative publicity. Using the real-world case of the VW emis-
effects. All path estimates are reported in an unstandardized form, and sions scandal, we demonstrate that the stronger customers' CSR-based
95% bias-corrected bootstrap confidence intervals are based on 10,000 CeC identification, the more, rather than less, they tended to turn
bootstrap samples. In support of H2, the predicted sequential indirect against VW. Importantly, study 2 sheds light on the mediating effects by
effect through perceived betrayal and consumer disidentification was showing that people's perception that VW had betrayed them, and their
significant as indicated by a bootstrapping confidence interval (CI) ensuing disidentification, mediated the effects of CSR-based CeC
entirely above zero (CI: 0.045; 0.114). As hypothesized, the more the identification on customers' intentions to oppose the brand. This was
identified customers valued eco-friendliness as an attribute, the more not the case when customers' CeC identification was based on CA-re-
they felt betrayed (a1 = 0.41) by VW. Perceived betrayal was, in turn, lated aspects of the corporate identity.
positively related to consumer disidentification (d21 = 0.41), which
increased customers' intention to brand opposition (b2 = 0.43). We also 5. Discussion
tested the model separately for the two countries to show that the hy-
pothesized mediational process underlying the backfiring effect of CSR- CSR is high on the global corporate agenda, motivated, at least in
based CeC identification emerged in both samples. The sequential in- part, by the business case that “doing good” has positive effects on key
direct effect through perceived betrayal and consumer disidentification stakeholder groups, such as protecting against negative publicity due to
was significant in the US (CI: 0.023; 0.134) and in the German sample CSR's positive influence on consumers' identification with the company.
(CI: 0.036; 0.137) as indicated by bootstrapping confidence intervals This research shows that the buffering effect of CSR-based CeC

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identification on attitudes toward the company is reversed when psychological state separate from identification. Thus, when consumers
identified consumers learn about a corporate moral misconduct. Worse learned about the CSR misconduct, CSR-based CeC identification
yet, loyal customers who initially identified with VW because of the turned into this new state of rejection and disconnect. Although per-
alleged eco-friendliness of its cars were seriously inclined to spread ceived betrayal fueled this disconnect, CSR-based CeC identification
negative word of mouth and punish the automaker for cheating on its also affected disidentification directly. This finding suggests CeC dis-
emissions tests, because they felt betrayed, which produced dis- identification contains a considerable social component (Wolter et al.,
identification with and opposition to the company. In providing these 2016). Aside from being driven by the individual's perception of be-
insights, this paper makes three important contributions: It advances trayal, it is also elicited by people's concern about how others perceive
our understanding of the conditions under which CeC identification them. The construct comprises the social dimension of feeling embar-
helps versus hurts in protecting against negative publicity. Second, it rassed and ashamed to own one of the company's products and by the
sheds light on the process underlying the backfiring effect of CeC desire to let others know that one disagrees with the company, which is
identification. Finally, it advances our understanding of disidentifica- implied by specific items included in the scale to measure dis-
tion as an outcome of this backfiring. Below, we discuss these three identification (Kreiner & Ashforth, 2004). With respect to organiza-
contributions. tional members, Kreiner and Ashforth argue that “disidentification may
entail a repulsion of the organization's mission, culture, or centrally
5.1. Theoretical implications defining aspects to the point that a person consciously or actively se-
parates his or her identity and reputation from those of the organiza-
A number of previous studies document a buffering effect of CeC tion” (p. 3).
identification (Einwiller et al., 2006; Lisjak et al., 2012; Liu et al., 2010) Yet, like disidentified employees, disidentified car owners cannot
or commitment (Ahluwalia et al., 2000) on consumer reactions to ne- easily terminate their connection with the company, because selling a
gative publicity about a company or brand. This effect is suspended car can be effortful and buying a new one can be expensive. Especially
when the negativity of the information is extreme and thus cannot be during the emissions crisis, selling a VW car meant high losses because
downplayed without hurting one's self-concept (Einwiller et al., 2006; the value of the cars—especially of those with diesel engines—had
Liu et al., 2010), and when a transgression is self-relevant for the dropped significantly. Thus, disidentified customers were stuck with
strongly connected consumer (Trump, 2014). We advance these in- their cars, just as disidentified employees often are stuck with their
sights for the domain of moral misconduct by showing the buffering employer. Such locked-in customers can have severe negative con-
effect of identification is not only suspended but is reversed—turning sequences for the company, because to protect their social identity, they
into a backfiring effect—when both identification and the negative may publicly disavow the company. In line with our study 2 findings,
information are in the more self-relevant domain of morality (i.e., CSR). this effort could include being vocal about the aspects of the company
When consumers who strongly identify with a company because of CSR that the disidentified customer finds objectionable. Like employees,
are confronted with negative publicity about CSR, the centrality to their customers who are highly familiar with the product are credible sources
self-concept of morality, which underlies CSR, contributes to a severe of information. Thus, the retaliatory behaviors of disidentified custo-
disconnect between their own moral identity and the “real” identity of mers can deepen the reputational damage caused by the crisis, produ-
the company that infringed on their moral values. This perceived dis- cing, eventually, financial losses for the company.
connect leads them to dramatically revise their judgment of the com-
pany. By contrast, when the identification is based on less self-relevant 5.2. Managerial implications
dimensions, such as competence (i.e., a company's CA), the self-concept
is less threatened, causing identification and loyalty with the company For managers, our results emphasize that a CSR positioning
to remain untainted even by a severe moral transgression like VW's strategy, or a hybrid strategy including CSR, is a serious commitment
cheating on emissions tests. that has to be firmly grounded in the company's business plan and
Importantly, the findings of this research also shed light on the backed by corporate and employee conduct, not just by symbolic
process mediating this backfiring effect of CSR-based CeC identifica- communication. If not, greenwashing accusations can harm the firm's
tion in the case of moral misconduct. As Bhattacharya and Sen (2003) reputation more than the CSR claims have helped to strengthen it. In a
argue, negative reactions occur because consumers perceive betrayal vigilant society, the transgression and misleading intent of the corpo-
when the domain of the malpractice is the central basis for their rate communication act will eventually be detected. When it is, con-
identification. When loyal VW customers who identified with the au- sumers who believed the misleading green messages and identified with
tomaker because of the alleged eco-friendliness of its cars found out VW the company on that account can turn into the firm's worst enemies
broke the promises it gave in the psychological contract and empha- (Grégoire & Fisher, 2008). To dampen their retaliatory behavior, the
sized in its communications, they felt betrayed by the company. Per- company must invest considerable effort to appease this group of dis-
ceived betrayal being a relational construct helps us explain not only enchanted customers. As stressed in crisis-communication literature
the detrimental effect of identification on attitude, but also customers' (e.g., Coombs, 2015), responding quickly and openly and commu-
conversion from identifying to disidentifying with the violator. nicating accommodative messages is important. Coombs and Holladay
Grégoire and Fisher (2008) speak of the “love becomes hate” effect, (2008) show that expressing sympathy and compensation can be as
which implies that “as relationship quality increases, customers ex- effective as apologizing in order to produce favorable reactions. Yet,
perience a greater sense of betrayal when they perceive low levels of this finding refers to people who are not victims of the crisis. For vic-
fairness” (p. 251). We extend this notion by showing that not only tims—particularly loyal customers whose identification has turned into
fairness but also violation of the basis of identification drives this effect, disidentification—also issuing a sincere apology and explanation seems
because perceived betrayal only emerged when both the domain of important. Importantly, disidentified customers need to be treated with
identification and negative publicity were particularly self-relevant to great care so that they at least do not have reasons to complain about
consumers. We furthermore find, contrary to Grégoire and Fisher how the company treated them after the breach of trust. This way, their
(2008), that perceived betrayal alone is not what influences customers opposition behavior may be reduced, if not eliminated.
to want to seek revenge and punish the violator; rather, it is a perceived Our research shows that a considerable number of customers do not
disconnect from and rejection of the company, that is, disidentification. identify with a brand or company because of CSR but, instead, because
This shows the power of disidentification, a yet under-researched of CA. Our findings suggest CA-identified customers are unlikely to
construct. evince a backfiring effect in the face of negative CSR-based publicity.
Kreiner and Ashforth (2004) consider disidentification a unique This finding implies a hybrid strategy can work as a protection, because

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those customers whose CeC identification is based on attributes other negative publicity is undeniable, underscored by the greater prevalence
than CSR are resilient in the face of negative publicity. Thus, managers of CA-based identification in today's marketplace. Also worth testing is
need to thoroughly assess their company's true strengths and develop a the possibility, given that some consumers may identify based on both
positioning strategy that is closely aligned with them. If CSR is not CA and CSR, that these two bases interact in their effect on consumer
among those strengths, abstaining from accentuating its absence in the reactions to CSR-based negative publicity. Self-protective motives may
brand's positioning is wise. Although CSR is particularly suitable to cause such consumers to rely on the CA dimension of their identifica-
foster identification, if it is not firmly rooted in the company's strategy tion to buffer the impact of the negative publicity, particularly because
and operations, the brand should emphasize strong attributes in the buffering seem less effortful and emotionally taxing than dis-
domain of CA that also have the potential to foster identification. As identification and brand opposition.
this research shows, hedonic attributes like sportiness and fun are also In addition, more research is needed to explain how identification
suitable for establishing identification and for protecting against the turns into disidentification. Here, we establish the role of perceived
effects of negative publicity. In the case of VW, the company's hybrid betrayal; however, it only partly mediated the relationship between
strategy seems to have helped reduce the harm caused by the crisis. The identification and disidentification. Previous research pronounced the
automaker's sales figures rebounded in 2017 after having dropped due social component of consumer disidentification and the role of corpo-
to the emissions scandal, yet US sales have still not returned to the level rate disrepute as an influential antecedent (Wolter et al., 2016). Future
achieved before the diesel scandal (Boudette, 2017). studies need to clarify the relative importance of betrayal versus dis-
repute in the conversion process from a state of perceived oneness to a
5.3. Limitations and further research state of separation and rejection. We expect differential effects on
emotional and behavioral outcomes depending on whether perceived
Several limitations of this research need to be addressed. In study 1, betrayal due to self-company dissimilarity or concerns about self-re-
using a fictitious company, the level of CSR-based CeC identification presentation to relevant others is more pronounced. Although the
may not have been as strong as if participants had actually invested in a former might elicit more anger and offensive reactions, the latter may
similar fund and developed a connection with the company over time. lead to stronger embarrassment and consequently to more avoidance
Also, testing the hypotheses with participants other than under- and separation efforts by disidentified consumers.
graduates, who are more experienced with regards to the respective
product category, could have improved the external validity of the Ethical approval
findings. To address these shortcomings, study 2 used VW as a real-
world crisis object and loyal VW customers as research participants. All procedures performed in studies involving human participants
Yet, this real-world case entailed its own challenge with regards to were in accordance with the ethical standards of the institutional and/
measuring CeC identification before the breakout of the crisis. or national research committee and with the 1964 Helsinki declaration
However, by using loyalty and ecology-motivated buying as proxies for and its later amendments or comparable ethical standards.
CSR-based CeC identification, we addressed this challenge as effec-
tively as possible.
Our studies point to several avenues for further research. Although Informed consent
we argue, based on the literature on morality versus competence, for
the qualitatively distinct nature of CSR-based identification from that Informed consent was obtained from all individual participants in-
based on CA, we did not test for this explicitly. Because our focus is on cluded in the studies.
CSR, a test of whether CA-based negative publicity would produce a
buffering or, in fact, a backfiring effect in the case of consumers Acknowledgements
strongly identified on CA is outside the scope of the current research.
However, the conceptual importance of establishing through further This research was supported by the University of Vienna, internal
research how CA-identified consumers might react to CA-based funds to the first author.

Appendix

Marketplace poll “Reasons for identifying with brands or companies”.


We conducted a poll among N = 355 US consumers (participants on the platform Prolific; equal distribution of women and men; mean age, 34).
Participants were asked to name one or possibly two brands they feel connected to because they reflect who they are or want to be, and rate why they
feel connected (four items for CSR, four for CA; scale from 1 = not at all to 7 = very much). Results for the Top 2 mentions (i.e., ratings of 6 or 7)
across all brand mentions (N = 711) were as follows:

CSR CA

Socially responsible: 42% High quality: 84%


Focus on sustainability: 39% Great design: 77%
Highly ethical: 38% Superb service: 64%
Concern for the environment: 31% Innovativeness or technological excellence: 57%

For each of the brands they mentioned, participants were also asked to indicate, in one sentence, why they feel connected to this brand. Of the
262 different brands named across all participants, 68 brands (26%) were associated with CSR attributes and 194 (74%) were associated with CA
attributes. Brands that were most often associated with CSR were Patagonia (n = 10), REI Co-op (n = 6), and Tom's shoes (n = 6). Brands most often
associated with CA-related attributes were Apple (n = 33), Samsung (n = 15), Nike (n = 14), Amazon (n = 13), Adidas (n = 9), and Google (n = 8).

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Trends in Cognitive Sciences, 7, 320–324. Bettina Lis is a Professor at the University of Bayreuth, Germany, where she holds the
Trump, R. (2014). Connected consumers' responses to negative brand actions: The roles of Chair of General Management and Business Administration. Before, she was Assistant
transgression self-relevance and domain. Journal of Business Research, 67(9), Professor at Johannes Gutenberg-University Mainz. She graduated both in
1824–1830. Communication Science and Business Administration. Her research focusses on human
Trump, R. K., & Brucks, M. (2012). Overlap between mental representations of self and behavior related questions in the fields of management, marketing and media.
brand. Self and Identity, 11(4), 454–471.
UN Global Compact, & Accenture (2016). There's a clear path for business on sustain- Christopher Ruppel is a research scholar and doctoral candidate at the University of
ability, finds United Nations global compact-accenture strategy study. News release, Vienna's Department of Communication. Prior to this appointment he worked as a re-
June 23 2016. https://newsroom.accenture.com/news/theres-a-clear-path-for- search scholar at Johannes Gutenberg-University Mainz, Germany where he also finished
business-on-sustainability-finds-united-nations-global-compact-accenture- his master's degree in communication with a minor in economics. His research interests
strategy-study.htm. comprise corporate branding, consumer-company (dis)identification and CSR.
Wolter, J. S., Bach, S., Cronin, J. J., & Bronn, M. (2016). Symbolic drivers of con-
sumer–brand identification and disidentification. Journal of Business Research, 69(2), Sankar Sen is the Lawrence and Carol Zicklin Chair in Corporate Integrity and
785–793. Governance at Baruch College/City University of New York. He is also currently a Scholar
Ybarra, O., Chan, E., & Park, D. (2001). Young and old adults' concerns about morality in Residence at the Sasin Graduate Institute of Business Administration of Chulalongkorn
and competence. Motivation and Emotion, 25(2), 85–100. University. Sen's research interests lie at the intersection of sustainability and consumer
behavior. His book, Leveraging Corporate Responsibility: The Stakeholder Route to
Sabine Einwiller is a Professor of Public Relations Research at the University of Vienna, Maximizing Business and Social Value, was published by Cambridge University Press. As
Austria, Department of Communication where she is head of the Corporate well, Sen's research has appeared in both academic (e.g., Journal of Business Ethics; Journal
Communication Research Group. Prior to this appointment she was a Professor at of Consumer Research; Journal of Marketing Research; Journal of Marketing; Management
Johannes Gutenberg-University Mainz, Germany. Sabine Einwiller studied Psychology at Science) and practitioner journals (e.g., California Management Review; Sloan Management
the University of Mannheim, Germany and received her PhD in Business Administration Review; Business Horizons). Sen serves as an associate editor of the Journal of Consumer
from the University of St. Gallen, Switzerland. Her main research areas comprise cor- Research and on the editorial boards of Journal of Marketing, Journal of Public Policy and
porate reputation management, CSR communication, and the effects of negative publicity Marketing, Journal of Consumer Psychology, Academy of Marketing Science Review, and
and complaining. Corporate Reputation Review.

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