When Is Honesty the Best Policy? The Effect of Stated Company Intent on Consumer Skepticism

Prior research suggests that consumers evaluate firms more negatively if they attribute the firm's business practices to firm‐serving motivations rather than to motivations that serve the public good. We propose an alternative hypothesis: Firm‐serving attributions lower evaluation of the firm only when they are inconsistent with the firm's expressed motive. As such, the negative effect of consumer skepticism regarding a firm's motives can be inhibited by public acknowledgment of the strategic benefits to the firm. The power of this inhibition procedure was demonstrated in an experiment in which we manipulated the salience of firm‐serving benefits and the firm's publicly stated motive. Consumer evaluation of…