How to Deal with Negative Publicity: the Importance of Consumer Involvement
Journal Title: BAR: Brazilian Administration Review - Year 2005, Vol 2, Issue 1
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.
Authors and Affiliations
Matos, Celso Augusto de; Veiga, Ricardo Teixeira
Keywords
Related Articles
- EP ID EP40384
- DOI -
- Views 352
- Downloads 0
Theory of Imagery in Studies of the Change Process
This article aims to demonstrate the analytical power of the imagery concept for an organizational analysis. The gaps in organizational studies justify building new reference pictures in the organizational culture, with...
Productivity Antecedents of Brazilian Courts of Justice: Evidence from Justiça em Números
Public sector managers and researchers have emphasized the importance of performance measurement. Nevertheless, few theoretical and empirical studies are found in Brazilian Judiciary Courts’ literature. In order to emp...
Management Accounting Profile of Firms Located in Brazil: a Field Study
Companies must have resources that provide competitive advantages and are important factors for success. There is a great variety of such resources—including information systems, concepts of participation, models, and...
Tourism Cluster Competitiveness and Sustainability: Proposal for a Systemic Model to Measure the Impact of Tourism on Local Development
This article proposes a model to measure tourism cluster impact on local development with a view to assessing tourism cluster interaction, competitiveness and sustainability impacts on the economy, society and the envi...
Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms
We analyze the direct and simultaneous effects of internationalization on the ownership structure of Latin American companies based on agency theory. Using a sample of 425 Latin American firms between 2007 and 2011, wh...