From Green to Blacklisted : How Brand Forgiveness influences Brand Loyalty

Abstract: Greenwashing is a frequent issue within the FMCG industry, such as vague ecological claims and misleading communication. When a brand is accused of greenwashing it is important to understand how to manage this transgression, since both forgiveness and loyalty are concepts that are affected. Therefore, the purpose of this thesis was to investigate how brand forgiveness influences brand loyalty, within the FMCG industry, with the aim of contributing to limited research in this area. Ten interviews were conducted with loyal customers to examine how they felt and experienced two brands after perceived transgressions. The critical incident technique was used during the interviews to remind the customers of the transgressions and obtain a comprehensive view of their narratives. The results indicated that the lack of repair efforts influenced the customers to perceive the brands as dishonest and untrustworthy, which affected their unwillingness to forgive and damaged their trust. Based on the customer's perceptions and feelings regarding the brands and the specific transgressions, brand forgiveness and loyalty were influenced differently. In addition, the customer places high importance on the product quality and their relationship with the brand and would rather stay with the brand instead of switching to another if the quality and/or the relationship is strong.