Spillover effects of supply chain news on consumers' perceptions of product quality: An examination within the triple bottom line

Abstract

Abstract The purpose of this research is to examine the impact that news about supply chain operations related to the triple bottom line (TBL) has on consumers' perceptions. Specifically, it focuses on how sustainability successes and failures in a company's supply chain operations influence consumer perceptions of product quality. These perceptions are based on a spillover effect . The research study is set up across three experiments. Study one tests for the spillover effect in supply chain TBL‐related news and demonstrates that negative supply chain news across all three TBL dimensions reduces quality perceptions. Study two examines the effect across three levels of negative news intensity and finds that the spillover effect is consistent, even with stronger levels of negativity. Study three investigates whether a firm can improve damaged quality perceptions and purchase intentions through a recovery effort. The results of study three suggest that consumers' perceptions and purchase intentions are generally reparable. Collectively, the findings should encourage firms to more rigorously consider how news about their supply chain operations may impact consumers' perceptions and intentions toward the firm's products.