Effects of brand transgressions on third-party consumers

Purpose Brand transgressions, characterized by service failure, are a frequent theme for marketing scholars. Their impact on satisfaction, trust and brand loyalty is of high interest. However, in assessing the influence of those events on third-party consumers, the literature is still lacking. The purpose of this paper is to explore how social distance explains the reactions of close and distant third-party consumers toward other consumers during a brand transgression event. Anger is analyzed as a driver of this process. Design/methodology/approach Two experiments were conducted. Both studies presented a 3 (social distance: victim vs close third party vs distant third party) by 2 (severity: low vs high) between-subjects design. Respondents were asked to read a transgression scenario in a mobile phone service (study 1) and in a restaurant (study 2) and then completed scales that measured their affective reactions and evaluations of the relationship - satisfaction, trust, and loyalty intention - with the transgressing brand. Findings The results showed that transgression severity intensifies the effect of the brand transgression on consumer's anger. Victims and close third parties demonstrated higher levels of anger compared to distant third-party consumers. In the case of severe transgressions, an experience of anger contagion between victims and close third-party consumers was responsible for the negative effect on the relationship evaluation of the transgressing brand compared to distant third-party consumers. Originality/value This study extends previous research about how social distance influences consumer-brand relationships and demonstrates the mediating role played by affective anger contagion.