Forgiveness in the Face of Brand Scandals: How Opinions About Corporate Actions and Pre-scandal Trust and Experience Play a Role

Brand scandals are widespread adverse events. Many companies rely on the belief that consumers will forgive them, but brand forgiveness unfortunately is not guaranteed, and the effectiveness of company actions is only sometimes clear. This study aims to investigate the mechanisms behind brand forgiveness and strategies to prevent a crisis and manage brand scandals. Focusing on the well-known Nestle Maggi brand scandal, Structural Equation Modeling (SEM) was used to analyze the impact of consumers’ opinions of corporate actions on their attitudes toward the scandal and, ultimately, on their willingness to forgive the brand. Driven by gaps in the literature, this research hypothesized the roles of brand experience and brand trust before the scandal as mediating variables. These variables influence consumers’ opinions about corporate actions and their subsequent attitude toward the scandal, affecting the forgiveness of the brand. The main findings reveal that, while corporate actions are crucial, they are not sufficient on their own to shape consumer attitudes towards the scandal. Instead, brand experience and trust established before the scandal play a significant mediating role in this relationship. Therefore, our insights suggest that consumer forgiveness cannot be assumed; it is significantly influenced by their pre-existing brand experience and trust. These findings provide valuable guidance for brand managers, offering insights into effective scandal management and suggesting context-specific managerial implications.