Based on the Stereotype Content Model and the credibility and persuasion literature, this study examines the influence of COO on advertising claim credibility and purchase intentions. A set of hypotheses were developed and tested with an experimental design on a British sample of consumers.

Negative brand events can significantly harm the brand, affecting consumer cognitions, emotions, and behavior, leading to negative brand evaluations, negative emotions, brand avoidance, and retaliation. Thus, it is critical for brands to design and implement strategies that promote consumer forgiveness to mitigate those negative consumer responses. Despite the growing literature on the determinant factors of consumer behavior in a brand failure context, there is still scarce evidence regarding the impact of brand type on consumer responses, including consumer forgiveness, following a negative brand event. Considering that consumers tend to react differently to a brand perceived as arrogant (making them feel inferior), as opposed to a brand they strongly identify with, this paper focuses on failures of equal vs. higher status brands and investigates their impact on consumer forgiveness. Following the above, we expect that differences in brand status can shape consumer behavior following a failure or transgression.