Hidden harms in hospitality: how discrimination, embarrassment, and greenwashing drive negative customer behavior

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Abstract
Purpose: This study investigates how different forms of perceived discrimination (subtle, overt, and service-level) shape customer experiences and behaviors in the hospitality sector. Drawing on Cognitive Appraisal Theory (CAT) and the Stress–Strain–Outcome (S-S-O) framework, it examines the impact of perceived discrimination (PD) on customer embarrassment (CE). The study further explores embarrassment as a mediating mechanism linking perceived discrimination to two adverse behavioral outcomes: service boycott (SB) and brand sabotage (BS). In addition, it incorporates greenwashing as a moderating factor, assessing its influence on the relationships between perceived discrimination and service boycott, as well as between perceived discrimination and brand sabotage. Design/methodology/approach: A three-stage, time-lagged survey was conducted among guests of four- and five-star hotels in Saudi Arabia, resulting in 406 valid responses. Partial least squares structural equation modeling (PLS-SEM) was employed to test the proposed framework. Findings: The results reveal that perceived discrimination (PD) has a significant positive effect on customer embarrassment (CE), which in turn drives negative behaviors such as service boycott and brand sabotage. Furthermore, CE partially and significantly mediates the relationship between PD and these adverse outcomes. In addition, hotel greenwashing significantly moderates the relationships between perceived discrimination and both service boycott and brand sabotage. Practical implications: The findings highlight the need for hotel managers to implement strict anti-discrimination policies, provide employee training on inclusive service delivery, and adopt transparent and authentic sustainability practices to avoid greenwashing. Such actions can reduce customer embarrassment and mitigate risks of service boycott and brand sabotage, ultimately protecting brand reputation and customer relationships. Originality/value: This study provides novel insights into the emotional pathways linking perceived discrimination, customer embarrassment, and negative customer behaviors—specifically service boycott and brand sabotage—in the hospitality sector, a relatively underexplored area, particularly within the Saudi Arabian context. It extends the application of Cognitive Appraisal Theory and the S-S-O framework to hospitality research by positioning embarrassment as a mediator and greenwashing as a critical moderating variable, thereby offering both theoretical contributions and practical implications for ethical management practices in the hospitality industry.
Funding Information
  • the Deanship of Scientific Research, Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Saudi Arabia (KFU251680)

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