In an era where diversity, equity, and inclusion (DEI) are central to societal progress, brands are increasingly expected to uphold these values in their advertising. However, when brands neglect DEI principles, particularly in social media campaigns, they risk triggering significant consumer backlash. This research explores the consequences of brand transgressions in advertising that violate DEI values, focusing on how such violations lead to negative electronic word-of-mouth (e-WOM) and affect consumer–brand relationships. By examining both direct and indirect effects, the study reveals that negative emotions, including anger, contempt, and moral outrage, play a pivotal role in shaping consumer reactions. These emotions often result in brand avoidance, anti-brand activism, and heightened brand hate, which are further amplified by the viral spread of negative e-WOM, particularly in the form of online firestorms. The research highlights the contagious nature of e-WOM, where sympathy for those offended by the ad can spur collective outrage, fostering a cycle of negative consumer behavior. Furthermore, the study emphasizes that the severity of consumer reactions is linked to the alignment of the brand’s values with its advertising content. Brands with consistent ethical behavior are more likely to recover from transgressions, while contradictory actions can lead to long-term damage. The findings suggest that brands must adopt proactive crisis management strategies, engaging in real-time dialogue with consumers and addressing concerns swiftly to mitigate the lasting effects of brand transgressions on consumer loyalty.
