The Effects of Negative Publicity and Company Reaction on Consumer Attitudes

29 Pages Posted: 19 Jul 2004

See all articles by Celso Augusto de Matos

Celso Augusto de Matos

University of Vale do Rio dos Sinos (UNISINOS) - Unisinos Business School

Ricardo Teixeira Veiga

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD)

Date Written: July 2004

Abstract

Even though negative publicity can affect consumer perceptions, few studies investigate this process empirically, analyze different options of company reactions and test for moderators. Two studies are reported: a laboratory experiment testing how consumers process negative publicity information and a field experiment comparing different company responses. Results confirm the harmful effect of negative publicity on consumer attitudes, indicate a higher level of involvement with negative publicity in the values domain and suggest product involvement as a moderator. The second study extends these findings by testing different company reactions. Results suggest again that product involvement is a moderator.

Keywords: attitudes, company reaction, consumer behavior, experiment, involvement, negative publicity

JEL Classification: M31, C90

Suggested Citation

Matos, Celso Augusto de and Veiga, Ricardo Teixeira, The Effects of Negative Publicity and Company Reaction on Consumer Attitudes (July 2004). Available at SSRN: https://ssrn.com/abstract=565641 or http://dx.doi.org/10.2139/ssrn.565641

Celso Augusto de Matos (Contact Author)

University of Vale do Rio dos Sinos (UNISINOS) - Unisinos Business School ( email )

Av. Unisinos 950, Bairro Cristo Rei
Escola de Gestão e Negócios, Sala E07 - 404C
São Leopoldo, São Leopoldo - RS 93.022-000
Brazil

Ricardo Teixeira Veiga

Federal University of Minas Gerais (UFMG) - Center for Post Graduation and Research in Administration (CEPEAD) ( email )

Horizonte 30170-120 Minas Gera
Brazil

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