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Identity Bias in Negative Word of Mouth Following Irresponsible Corporate Behavior: A Research Model and Moderating Effects

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Abstract

Current research has documented how cases of irresponsible corporate behavior generate negative reactions from consumers and other stakeholders. Existing research, however, has not examined empirically whether the characteristics of the victims of corporate malfeasance contribute to shaping individual reactions. This study examines, through four experimental surveys, the role played by the national identity of the people affected on consumers’ intentions to spread negative word of mouth (WOM). It is shown that national identity influences individual reactions indirectly; mediated by perceived similarity and sympathy. Consumers perceive foreign victims as different from the self and this reduces the sympathy experienced towards them. Sympathy is an emotion that shapes consumer reactions and regulates WOM. The study identifies two moderating processes of this effect. Individuals who score high on collective narcissism are most likely to be strongly biased against foreign victims. In-group bias is also moderated by the perceived severity of the crisis. When a case is perceived as very serious, perceived similarity plays a less important role in generating sympathy because consumers focus on the perceived suffering of the victims. Hence, in-group bias is stronger in cases perceived as having minor consequences. The paper contributes to the literature on corporate social irresponsibility and offers implications for both scholars and managers.

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Authors and Affiliations

  1. Queen Mary University of London, School of Business and Management, London, UK

    Paolo Antonetti

  2. Cranfield University, School of Management, Cranfield, UK

    Stan Maklan

Authors
  1. Paolo Antonetti
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  2. Stan Maklan
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Correspondence to Paolo Antonetti.

Appendices

Appendix 1: Vignettes Used in Study 1

NT-POULTRY is one of the largest international meat distributors. The business started off in the distribution of chicken meat and other poultry to supermarkets, restaurants, and fast food chains and subsequently expanded to other types of meat. The company currently reports sales of approximately $500 million and operates in 15 different markets

A recent investigation by the UN Global Food Safety Commission has unveiled widespread unethical and illegal practices at NT-POULTRY. The company has regularly sold for over 2 years meat contaminated with dangerous chemicals to a number of restaurants in the USA/China. The company falsified relevant documentation and restaurants were completely unaware of the health risks for their customers. The contamination was caused by the use of sub-standard abattoirs where the company could source cheaper meat allowing it to boost its profits. It is estimated that, through the smuggling of contaminated meat, NT-POULTRY generated $75 million in extra profits

Experts claim that the consumption of contaminated meat has serious health risks. In the long term, it can lead to gastroenteric diseases and increase risk of developing various forms of cancer. Although it is impossible to produce accurate estimates at the moment, it is almost certain that many customers will have been exposed to harmful amounts of toxic chemicals. The commission says that, considering the number of people potentially exposed, more than 500 Americans/Chinese could have been negatively affected and more than 100 could have developed serious illnesses after repeated exposure

NT-POULTRY has admitted liability and a number of key executives, deemed responsible for the fraud, have been arrested pending a complete investigation. Jail sentences or a significant financial settlement are likely to result from this case

Summary of a UN press release, issued on 10th October 2012

 

Appendix 2: Scales Used in Study 1, 2, 3, and 4

Constructs

Study 1

Study 2

Study 3

Study 4

Perceived similarity (1 = strongly disagree; 7 = strongly agree)

Std. loadings

Std. loadings

Std. loadings

Std. loadings

The people mentioned in the article are very close to me

.89

.91

.82

.79

I am from the same group as the people mentioned in the article

.72

.66

.88

.93

The people mentioned in the article are very similar to me

NA

.72

.94

.92

I am just like the people mentioned in the article

NA

.92

.92

NA

Reliability

AVE = .68

CR = .81

AVE = .88

CR = .66

AVE = .79

CR = .94

AVE = .77

CR = .91

Sympathy (1 = strongly disagree; 7 = strongly agree)

Std. loadings

Std. loadings

Std. loadings

Std. loadings

I feel very sympathetic towards the people mentioned in the article

NA

.95

.97

NA

I feel very sorry for the people mentioned in the article

NA

.91

.98

.95

I feel sympathy for the people mentioned in the article

–

.96

.99

.95

Reliability

–

AVE = .96

CR = .88

AVE = .96

CR = .98

AVE = .90

CR = .95

Negative WOM (1 = strongly disagree; 7 = strongly agree)

Std. loadings

Std. loadings

Std. loading

Std. loadings

I would be likely to complain about (company name)’s behavior to other people

.92

.88

.95

.96

I intend to say negative things about (company name) to people I know

.91

.91

.97

.94

I would be likely to bad-mouth (company name) to other people

.89

.80

.95

NA

Reliability

AVE = .83

CR = .93

AVE = .93

CR = .81

AVE = .91

CR = .97

AVE = .91

CR = .95

Collective narcissism (1 = strongly disagree; 7 = strongly agree)

Std. loadings

Std. loadings

Std. loadings

Std. loadings

I wish other groups would more quickly recognize the authority of my national group

NA

NA

.77

NA

My national group deserves special treatment

NA

NA

.70

NA

I will never be satisfied until my national group gets all it deserves

NA

NA

.89

NA

I insist upon my national group getting the respect that is due to it

NA

NA

.85

NA

It really makes me angry when others criticize my national group

NA

NA

.63

NA

If my national group had a major say in the world, the world would be a much better place

NA

NA

.67

NA

Not many people seem to fully understand the importance of my national group

NA

NA

.88

NA

The true worth of my national group is often misunderstood

NA

NA

.83

NA

Reliability

  

AVE = .62

CR = .93

NA

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Antonetti, P., Maklan, S. Identity Bias in Negative Word of Mouth Following Irresponsible Corporate Behavior: A Research Model and Moderating Effects. J Bus Ethics 149, 1005–1023 (2018). https://doi.org/10.1007/s10551-016-3095-9

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