Retail Karma: How Our Shopping Sins Influence Evaluation of Service Failures

Abstract Consumers have an intuitive belief in “karma” which dictates that bad (good) actions lead to bad (good) outcomes. Consequently, consumers perceive a causal connection between their own wrongdoing toward a company and a subsequent service failure that they experience in their interactions with another company. Eight experiments employing different contexts consistently show that consumers who have previously wronged a company (compared to those in a control group) evaluate another unrelated company more positively in response to a service failure by this company. We argue that this more positive evaluation is due to the greater blame consumers assign to themselves as dictated by the “karmic beliefs” held by consumers whereby the subsequent poor service by a different firm is seen as a karmic payback for their own prior transgression. The proposed effect is mitigated when a person’s karmic belief is reduced. We also examine a number of alternative explanations (e.g., negative experiences, moral balancing, and immanent justice reasoning) and find that our observed effect is more consistent with a karma-based account.