Abstract
Corporate controversies, specifically involving those at an executive level or above (i.e., C-suite) – whether that is by making an insensitive comment or an unethical decision – are interpreted as brand transgressions that trigger strong consumer reactions. These responses ultimately affect consumers’ perception of a brand, how they communicate about the brand to one another – also known as word-of-mouth marketing – and future purchasing decisions. Based on prior research regarding controversies, less attention has been given to consumers’ immediate emotional reactions rather than their future behaviors.
This thesis is rooted in how consumers react to different types of controversies within the apparel industry — specifically, athleisure brands. The two controversies that are presented within the thesis are positioned within the context of the body positivity movement and unethical workplace practices. Following, the examined measures are how these controversies provoke consumers’ emotional reactions and how that affects their future behaviors. The specific emotions that are implemented within the thesis are basic and self-conscious emotions, which include anger, sadness, disgust, embarrassment, shame, contentment, interest, surprise, and worry.
By using a 2x2x2 experimental design, Generation Z (Gen-Z) women are first exposed to the stimulus, a hypothetical news-like article that either exposes an athleisure brand having a body-positivity controversy or an unethical labor controversy with a brand they have indicated high or low brand loyalty towards. This stimulus is intended to allow participants to report their emotional reactions and future behavioral and purchasing intentions regarding a body-relevant product — leggings — and a less body-relevant product — a gym bag.
The results of this study showed that the participants reported a higher negative affect to the unethical labor practice controversy in comparison to the body-positivity controversy (p < .001). Although the brand loyalty condition did not impact the negative affect variable, a statistically significant interaction was suggested for the self-conscious affect variable (p = .016) — further showing that participants' responses varied depending on their level of brand loyalty and the type of controversy each was presented with. Finally, the participants reported that their behavioral intentions were uniform with their emotional responses.
This thesis aims to provide marketers of the apparel industry with clear insight and understanding into consumers' emotional responses and how that influences their expected behavioral actions, with controversies that are rooted at the executive level of a corporation. Due to the fact that Gen-Z is the newest generation to make their own purchasing decisions, understanding consumer behavior of the younger, digitally, and socially conscious demographic is significant to help mitigate future marketing risks when a controversy comes to light.