Communicating with consumers: How firms' responses to societal change influence consumer behavior

Abstract

Organizations face growing pressure from their consumers and stakeholders to respond to issues of societal importance. But what happens when they do it well or do it wrong? And can such organizational responses to societal developments foster or strain consumer-firm relationships? This dissertation comprises three chapters that delve into the intricacies of communication between consumers and firms midst significant societal change. The first chapter (Speedy Activists: How firm response time to sociopolitical events influences consumer behavior) examines how consumers take response speed as a cue to how authentic the firm when disclosing sociopolitical statements online to support an event or movement. The second chapter (Differentiating on Diversity: How Disclosing Workforce Diversity Influences Consumer Choice) examines how the public disclosure of workforce diversity data affects consumer attitudes and choice. Firms have historically avoided voluntary disclosure of what goes on in their day-to-day operations, such as workplace diversity statistics, in fear of potential consumer backlash. Contrary to this presumption, this chapter suggests that firms that voluntarily reveal their workplace diversity data do not seem to turn off consumers--even when their numbers are lackluster and revealing of racial disparities between occupations. The last chapter (Calculated Complaints: Understanding Mentions of Discrimination in Customer Service) examines how consumers react to (and sometimes, exploit) firms' attempts to meet new expectations to create inclusive environments. This work explores how consumers may strategically accuse firms of discrimination, yet such misreporting of discrimination could hinder progress for the greater cause.