The strength of stance: The impact of brand activism on resistance to negative information, purchasing, and premium paying intents across different types of failures

Abstract

This paper represents a pioneering exploration of how brand activism influences consumer responses to performance and value-related failures. Specifically, across two experiments, the research explores how brand activism influences consumer resistance to negative information, purchase intent, and willingness to pay more, in response to product, service, and value-related failures. Study 1 (N = 237) reveals that consumers who are more involved in activism and are exposed to a product failure from activist brands exhibit higher resistance to negative information compared to those who encounter product failures from non-activist brands. This suggests that activist branding may protect companies by cultivating a resilient, loyal consumer base in such adverse situations. Study 2 (N = 261) extends these findings by examining whether value-related (vs service-related) failures impact the buffering effect generated by a brand’s activist stance. Results indicate that activist brands particularly benefit from a protective buffer in the context of service failure scenarios. However, this buffer does not extend to value-related failures, leading to harsher consumer judgments and intentions. The research significantly contributes to brand activism literature by uniquely integrating the themes of brand activism and brand transgressions, exploring how brand activism affects consumer responses to both performance and value-related failures.