When Bad Becomes Good: The Role of Congruence and Product Type in the CSR Initiatives of Stigmatized Industries

Abstract

This study examines how congruence and product type affect consumer responses in the context of the corporate social responsibility (CSR) of stigmatized industries. This study conducted two experiments with college students to assess the effects of congruence and CSR type (cause-related marketing vs. advocacy advertising) (Study 1) and effects of congruence and product type (hedonic vs. utilitarian) (Study 2) on consumers’ corporate evaluations. The results of Study 1 showed that congruence generates weaker attributions of corporate altruistic motives and greater negative perceptions of corporate credibility and attitude than incongruence. However, there was no significant effect of CSR type on consumers’ evaluations of a company. The findings of Study 2 revealed significant main effects for product type. When CSR initiatives are associated with hedonic products, consumers’ altruistic attributions, credibility, and attitudes toward the product are more negative than when linked to utilitarian products in stigmatized industries. Moreover, there was a marginally significant interaction effect of congruence and product type on attitude toward the company. This study contributes to the emerging body of CSR literature in stigmatized industries by empirically determining how congruence and hedonic product type may cause backlash effects.