Rise from the ashes or repeat the past? The effects of fresh start mindset and brand crisis type on consumer forgiveness

Many managers and scholars focus on how to repair brand image after a corporate crisis. This research paper aims to propose that a fresh start mindset (FSM) and brand crisis type can jointly influence consumer forgiveness.

Three studies were conducted to examine the authors’ hypotheses. Study 1 is a 3 (FSM: high vs low vs control) × 2 (brand crisis: controllable vs uncontrollable) between-subjects factorial design to test the interaction effect of FSM and brand crisis type on consumer forgiveness. Study 2 is a 2 (FSM: high vs low) × 2 (brand crisis: controllable vs uncontrollable) between-subjects factorial design to identify the affective and cognitive mechanisms in the influence of FSM and brand crisis type on consumer forgiveness. Study 3 is a 2 (FSM: high vs low) × 2 (brand crisis: controllable vs uncontrollable) × 3 (strategy: defensive strategy vs accommodative strategy vs reticence) between-subjects factorial design, aimed to identify the possible boundary conditions of this effect and tested the moderating role of brand crisis response strategies.

Study 1 finds that the FSM interacts with brand crisis type to affect consumer forgiveness. Specifically, consumers faced with uncontrollable (vs controllable) brand crises tend to increase (vs decrease) consumer forgiveness after a corporate crisis. Study 2 identifies the underlying mechanism, such that two distinct mechanisms drive the interaction effect. Affective empathy and perceived responsibility mediate the interaction effect of FSM and brand crisis type on forgiveness. Study 3 replicates the findings of studies 1 and 2 and confirms the boundary condition of the effect, showing that crisis response strategy moderates the interaction between FSM and brand crisis type.

Theoretically, to the best of the authors’ knowledge, this research observes the interactive effect of FSM and brand crisis for the first time, thus extending the existing research on both FSM and brand crisis. This study also enriches existing empathy and responsibility literature by examining the mediating role of empathy and perceived responsibility. Practical implications for marketers are apparent, especially after a brand crisis occurs. Corporates can deal with different types of the brand crisis based on consumers’ FSM. Finally, future research with regards to the findings is discussed.