Responding to Ethical and Competence Failures

Sekar Raju, Iowa State University, Ames
Priyali Rajagopal, Southern Methodist University, Dallas
Two studies investigate the effect that a firm’s response (accepting responsibility for a failure or denying the allegations that a failure has occurred) has on consumer’s attitude towards the firm. It is argued that the effect on the attitude towards the firm depends on whether the failure is deemed to be an ethical failure or a competence failure. As expected the results indicate that denying ethical failures or accepting responsibility for competence failures results in more favorable attitudes compared to accepting ethical failures or denying competence failures.
[ to cite ]:
Sekar Raju and Priyali Rajagopal (2008) ,"Responding to Ethical and Competence Failures", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 855-856.