According to a marketing expert from West Virginia University, individuals who believe in karma are more likely to forgive corporations that engage in immoral behaviour compared to those who do not hold such beliefs. Kylie Vo, a teaching assistant professor at the WVU John Chambers College of Business and Economics, has explored how consumers anticipating the universe will address corporate misdeeds are less likely to harbour grudges against such companies. They are also less inclined to engage in consumer activism like boycotts. This trend is becoming increasingly relevant as consumers become more informed and socially conscious. Digital media and social networks are significantly amplifying moral outrage against brand transgressions, such as the Facebook-Cambridge Analytica scandal and the #DeleteUber movement, which have profoundly impacted user trust and brand loyalty.

Vo’s research indicates that those who believe in karma are less concerned about moral transgressions by brands than non-moral issues. The karmic belief system, encapsulated by the phrase ‘you reap what you sow’, suggests that every action leads to a corresponding consequence. This belief is prevalent among over 65% of Americans and is foundational for more than 75% of South and Southeast Asian people. Such beliefs subtly influence daily decisions and behaviours, from justifying luxury purchases to promoting reduced consumption to avoid adverse outcomes.

In her studies, Vo has demonstrated that believers in karma are more forgiving and exhibit fewer negative attitudes towards brands that commit moral wrongs. They are less likely to boycott these brands. These insights were detailed in a paper published in The Journal of the Association for Consumer Research. However, Vo noted that consumers are less forgiving regarding non-moral transgressions, such as defective products or misleading claims. These directly jeopardise the consumer experience and raise safety concerns, exemplified by incidents like the significant sales decline Mattel faced when lead was discovered in its toys.

For those who believe in karma, forgiving brands for moral transgressions is also seen as a way to accumulate good karma through forgiveness. Vo’s research shows that the stronger an individual’s belief in karmic forces, the more likely they are to forgive a brand guilty of moral wrongdoing. This understanding of how faith in karma affects consumer responses to brand transgressions allows marketers to strategise around messaging that resonates with those beliefs, emphasising themes like good deeds or cosmic justice.

Vo advises that brands identified with wrongdoing must quickly determine whether the issue was moral or non-moral. For non-moral problems, the brand’s response can be universal, focusing on corrective actions. However, the response should be more nuanced for moral transgressions, reflecting the intricacies of karmic retribution and consumer expectations for ethical conduct. This approach helps brands tailor their crisis management strategies effectively, potentially mitigating damage and restoring consumer trust more efficiently.

More information: Kylie Vo et al, Fate, Forgiveness, and Brands: How Karmic Beliefs Impact Consumer Responses toward Transgressing Brands, Journal of the Association for Consumer Research. DOI: 10.1086/733043

Journal information: Journal of the Association for Consumer Research Provided by West Virginia University