The underdog trap: The moderating role of transgression type in forgiving underdog brands

Abstract

This study aims to investigate the interactive effects of brand biography and brand transgression type on consumers’ forgiveness intention. Brand transgression is categorized as relational or nonrelational, with the former (compared to the latter) seriously undermining consumers’ high identification with underdog brands. Across four experimental studies in which transgression type is manipulated in three different ways, it is confirmed that when facing nonrelational transgressions, participants show greater forgiveness intention for underdog than for top-dog brands. However, when facing relational transgressions, they do not show increased forgiveness intention for underdog brands compared to top-dog brands. Moreover, perceived anger mediates the interaction effect between brand biography and brand transgression type on forgiveness intention. The theoretical and managerial implications of the findings are discussed.