Presence: consumers’ different reactions to service and manufacturing firms with low CSR in social conduct
Document Type
Article
Publication Date
4-12-2024
Abstract
Purpose
This study aims to explain why low social conduct in corporate social responsibility (SC-CSR), especially employee exploitation, has a stronger negative impact on consumer reactions for service firms than for manufacturing firms.
Design/methodology/approach
Five experiments compared consumer reactions to service and manufacturing firms with low SC-CSR. Study 1 used a choice-based conjoint design to examine the relative importance of various shared attributes when consumers chose services versus goods. Study 2 revealed that low SC-CSR led to more pronounced negative consumers reactions toward service firms. Studies 3A and 3B explained this difference through a serial mediation analysis. Study 4 ruled out an alternative explanation regarding the differentiated effects.
Findings
The results reveal that consumer reactions to employee exploitation in service firms are more negative compared to manufacturing firms. This is because consumers’ sense of presence (i.e. feeling of being there) is stronger in a service setting, leading to more intense empathetic emotions toward service employees.
Originality/value
This research contributes to the CSR literature by challenging the conventional notion that sweatshops are more problematic for manufacturing firms. By contrast, the results indicate a stronger negative effect on service firms. It contributes to the services marketing literature by conceptualizing a novel cognitive mechanism. Traditionally, consumers’ negative reactions are driven by anger. However, the authors show that empathetic feelings toward mistreated employees play a predominant role. While it is imperative for all firms to ensure fair treatment of their employees, the findings underscore the heightened significance of this aspect for service firms, given their susceptibility to more pronounced negative effects.
DOI
10.1108/jsm-04-2023-0152
Recommended Citation
Hannan, Naeeni Sadjady and Meng, Hua, "Presence: consumers’ different reactions to service and manufacturing firms with low CSR in social conduct" (2024). Business & Economics Faculty Publications. 78.
https://digitalcommons.longwood.edu/business_facpubs/78
Original Citation
Meng, H., Naeeni, H. S. (2024). Presence: consumers’ different reactions to service and manufacturing firms with low CSR in social conduct. Journal of Services Marketing, ahead-of-print(ahead-of-print).
