How to deal with negative publicity: the importance of consumer involvement

Abstract

Negative information about companies can have a harmful effect on consumer perceptions. However, few studies investigate how consumers process negative publicity and how companies should react to it. In order to examine this question, two experiments were carried out: first, a laboratory experiment which tests how consumers process two different types of negative publicity (product attributes or company values); second, a field experiment comparing three different responses (no answer, denial/reduction of offensiveness and corrective action) given by the company affected by the negative publicity. Results from the first study confirm the detrimental effect of negative publicity on consumer attitudes, indicate that consumers have a higher level of involvement with the message when it is concerned with the company's values and suggest a moderating role of the product involvement on the influence of negative information on corporate image. The second study extends these findings by identifying different options for company reactions from literature and testing them empirically. Results suggest again the involvement variable as a moderator, now on the influence of company reaction on product image.

Measuring model of consumer’s moral reasoning in sport marketing: a scale development

“…Findings also showed that the immoral behavior of public images and the expansion to a wider brand are conditioned by the choices of consumers' moral reasoning (Lee & Kwak, 2015). Therefore, the present finding that the rationalizing effect of moral rationalization is consistent with previous findings that consumers adjust negative information about the athlete when making a purchase decision (Bhattacharjee, Berman & Reed, 2013;Lee & Kwak, 2015;Bednall & Collings, 2000;Matos & Veiga, 2005;Funk & Pritchard, 2006;Kwak, Kim, Zimmerman, 2010;Lohneiss & Hill, 2014;Um, 2013).…”

Satisfaction and attitudinal responses: indirect effects of involvement and reputation

“…Involvement is the perceived personal relevance of a stimulus to an individual and the stimulus can be a product or service (Greenwald & Leavitt, 1984). Several studies have demonstrated the importance of involvement in consumer decision making and establish involvement as one of the principles of consumer behavior theory (Alves, Lopes, & Hernandez, 2017;Bloch & Richins, 1983;Liang, 2012;Matos & Veiga, 2005;Wu, Liu, & Hu, 2015). Emotions influence the relationship between CS and the client's contributions to the company.…”

Consumer Complaints and Company Market Value

“…There is a negative consumer reaction when the company or its employees deliver a poor service or product (Harris & Ogbonna, 2013;McColl-Kennedy, Sparks, & Nguyen, 2011;Santos & Fernandes, 2008). Consumers that receive any negative information from a third-party source about a product or service tend to have lower attitudes towards the company, especially when compared to those receiving no information at all (Matos & Veiga, 2005). A brand with a high number of complaints indicates a low level of satisfaction with a company's offering, diminishing the capacity to attract and retain customers and consequently, impacting the company's future expected cash flow BAR, Rio de Janeiro, v. 11, n. 3, art.…”