Role of company actions to address customer boycotting of franchise brands

Abstract

Despite the recent increase in anticonsumption behaviour such as boycotting, few studies have examined how companies counteract negative customer behaviour. Thus, this study examines the impact of company actions to address customer boycotting behaviour in the hospitality context. This study collected survey information from 109 restaurant customers in the United States. A SmartPLS estimation revealed that different types of respect (i.e. respect for employees, respect for customers and respect for the environment) impact customer behaviour. For instance, the impact of respect for the environment positively influenced the attitude towards the brand and negatively influenced the attitude towards boycotting. However, respect for neither employees nor customers was a significant determinant of boycotting behaviour. Customer attitude towards boycotting increased boycotting behaviour and decreased purchase intention. A positive attitude towards the franchise brand positively influenced positive behavioural intention. Multigroup analysis showed that the impacts of respect for the environment were higher among young and low-income customers. This study contributes to the hospitality literature by highlighting the roles of respect-related attributes in customer boycotting behaviour.