Brand biographies trace a brand's evolution to position it as an underdog (i.e., passion and determination that lead to success despite limited resources) or a topdog (i.e., success based on abundance of resources) brand. This study examines how consumers’ risk perceptions associated with brand choice influence brand biography effects. It demonstrates that when perceived risk associated with brand choice is low, consumers process brand biographies narratively, experience greater narrative transportation into underdog (vs. topdog) brand biographies, and evaluate the underdog brand more favorably. When perceived risk associated with brand choice is high, consumers respond more positively to topdog (vs. underdog) brand biographies, due to topdog brands’ greater perceived ability to reduce risk. The topdog effect observed at higher levels of perceived risk reverses, however, when consumers have the opportunity to process the brand biography before receiving high risk information, as this allows for narrative transportation into the brand biography. This study contributes to research on moderators of brand biography effects and suggests that perceived risk should play a role in marketers’ decision to emphasize underdog or topdog characteristics in brand biographies.
Despite corporate social responsibility (CSR) engagement, firms may be implicated in CSR transgressions. Research is equivocal on whether CSR buffers negative consumer responses to subsequent firm transgressions. This research extends the observer moral licensing framework to consumer-firm contexts and examines under what conditions consumers license transgressions following firms' CSR engagement. Study 1 demonstrates that consumer responses to firm transgressions depend on whether the transgression occurs in the same (vs. different) domain relative to CSR engagement and on transgression ambiguity. Study 2 shows that consumer responses to transgressions are less negative when a firm has (vs. has not) previously engaged in CSR. It replicates a shielding effect of CSR that is contingent on transgression domain relative to prior CSR and transgression ambiguity, and finds that blatant same domain transgressions generate hypocrisy perceptions and mitigate licensing effects. Study 3 further extends the moral licensing framework and shows that firm communication that situates CSR efforts on a continuum (continuous CSR positioning) before a transgression moderates, and insincere firm motive attributions mediate, the detrimental effect of blatant same domain transgressions.
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