To forgive or retaliate? How regulatory fit affects emotional reactions and repurchase decisions following product failures

Purpose: When a product fails out of negligence on the seller’s part, consumers can either retaliate against the seller, more so if a third party encourages them to do so, or forgive the seller should the seller express remorse. This paper aims to examine how the fit between the consumer’s promotion/prevention regulatory orientation and the promotion/prevention frame of a message of contrition (retaliation), such as an apology from a chief executive officer (CEO) (a class action suit threat by a lawyer), affects such forgiveness (retaliation) intentions in the form of product repurchase decisions. Design/methodology/approach: In two laboratory experiments, this paper temporally induces a promotion or prevention orientation in the study participants and thereafter ask them to imagine experiencing a product failure and listening to (1) the CEO apologize for the harm (eliciting sympathy/encouraging repurchase); or (2) a lawyer inviting them to seek damages for the harm (eliciting anger/discouraging repurchase). This paper frames the messages from the CEO/lawyer such that they fit either with a promotion mindset or with a prevention mindset. Findings: This paper finds that, following a message of apology, a frame-focus fit (compared to a frame-focus misfit) elicits sympathy and encourages repurchase universally across promotion and prevention-oriented consumers. However, following a message encouraging retaliation, the same fit elicits anger and discourages repurchase more among prevention-oriented than promotion-oriented consumers. Originality/value: Although past research has investigated how regulatory fit affects forgiveness intentions, this paper fills three research gaps therein by (a) addressing both forgiveness and retaliation intentions, (b) deconstructing the fit-induced “just right feelings” by exploring their underlying emotions of sympathy and anger, and (c) showing that fit effects are not universal across promotion and prevention-oriented consumers. For practice, the results suggest that managers can lessen the fallout from product failures by putting consumers in a promotion mindset that strengthens the effect of a promotion-framed apology and inoculates them against all types of retaliatory messages.