This study aims to empirically investigate how types of brand activism (financial vs non-financial commitment) affect consumers’ psychological contract violation and boycott intention and to determine how to repair this negative impact.
This study conducts three experimental studies using the scenario-based experimental design method.
Using data from Chinese consumers against the backdrop of the Israeli–Palestinian conflict, results of Study 1 show that financial commitments generate stronger psychological contract violation and boycott intention than non-financial commitments and that psychological contract violation fully mediates the effect of brand activism commitments on boycott intention. Results of Study 2 indicate that a higher relationship quality between consumers and the brand corresponds to a higher psychological contract violation when the financial commitments made by the brand are inconsistent with its own values. Results of Study 3 show a significant interaction between commitment type and repair strategy, with affective repair strategies being particularly effective for financial commitments.
In the context of boycott campaigns, the results of this study provide theoretical and managerial implications for how international brands respond to sociopolitical issues.
