Nov. 22, 2025
A company dumps toxic chemicals into a river to save money.
Around the same time, a major storm strikes and causes damage to that same company. Is it just a coincidence?
According to new research from Andrew Gershoff, professor of marketing at Texas McCombs, the answer might depend on how strongly a consumer believes in divine intervention.
Consumers who ascribe the loss to a higher power are more likely to believe the company has paid the price for its actions, he finds. They're also less likely to punish it by boycotting its products or deciding to fine it in a jury trial.
Such consumer reactions often shape how companies fare in a crisis, Gershoff says. "When firms commit some kind of transgression, it's often the case that consumers want to react and punish the firm in some way."
But when transgression is followed by loss, it can change a consumer's moral equation, he adds. "They might say, 'Because the punishment has already occurred, I don't need to apply further punishment.'"
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READ MORE: Phys.org