The Impacts of Corporate Digital Irresponsibility (CDiR) and Corporate Digital Responsibility (CDR) Communications on Consumers’ Brand Perceptions

Abstract

With the increasing utilization of digital technologies and data in the hospitality industry, hospitality organizations’ responsibility to manage digital technologies and data in an ethical, fair, and protective way has become more important than ever. While corporate digital responsibility (CDR) is expected to affect consumers’ perceptions of a brand, the impacts of corporate digital irresponsibility (CDiR) and CDR on consumers’ brand perceptions have not been examined. Thus, this study aims to examine the negative effects of CDiR as a brand’s psychological contract violation and CDR communication as a recovery strategy on consumers’ brand perceptions. By conducting a mixed-design experiment, this study found that CDiR negatively affects consumers’ brand attitude, thereby leading to an increased switch intention. Furthermore, the findings indicated that abstract messages about CDR practices can adversely affect consumers’ brand perceptions, while specific messages can alleviate the negative impacts of CDiR, as they increase credibility and reduce image wash.