Consumer Response to Corporate Transgressions in the context of Culture
(A2025-126323)

AUTHORS

Evangelie Papadimitriou, Athens University of Economics and Business; DIONYSIS SKARMEAS, ATHENS UNIVERSITY OF ECONOMICS AND BUSINESS

ABSTRACT

As companies operate in multiple markets and regions across the world, with diverse values and lifestyles, the influence of culture, which molds norms and values in each society, becomes crucial in determining consumer response to corporate wrongdoing. This study investigates culturally dependent consumer responses to corporate misconduct in conjunction with companies’ country of origin. The study findings suggest that individuals with tight cultures have less favorable responses following a corporate transgression and that this effect is attenuated when the incumbent company is domestic.