Sorry to (Not) Burst Your Bubble: The Influence of Reputation Rankings on Perceptions of Firms

Abstract

We measure the influence of reputation rankings on individuals’ perceptions of firms. Through experimental design, we vary whether and how subjects are exposed to a reputation ranking alongside other information about a firm. We find that rankings influence perceptions when they are negative and congruent with other information about the firm. These findings help explain how a firm’s reputation can change even if its characteristics remain constant and why change in a firm’s characteristics can be slow to produce change in its reputation.

Keywords: corporate reputation, reputation rankings, cognition, experiment