Same Scandal, Different Moral Judgments: The Impact of Psychological Distance on Consumers’ Responses to Corporate Transgressions

The rise of corporate scandals committed by firm executives prompts an investigation on whether and why customers react differently from noncustomers despite being exposed to the same news. Centering on the influential role of consumers’ moral judgments, this thesis provides a novel theoretical perspective demonstrating that consumer-firm affiliation differentially affects how customers vs. noncustomers exercise dual dimensions of moral judgments (namely, transgressors’ performance and immorality) despite being exposed to news of the same scandal, subsequently resulting in differing future patronage intentions.