The Effects of Negative Publicity on Consumer Attitudes: A Replication and Extension

Abstract

Previous studies have found that negative publicity might have a harmful effect on consumer perceptions. However, the few investigating how consumers process different company reactions to the negative publicity has not produced conclusive results. This paper replicates Matos and Veiga (2003) in order to test the external validity of their results, extend the findings, and suggest new research questions. A total of 223 cell phone owners participated in a laboratory experiment that manipulated negative publicity and company reaction. The results found suggested that: (i) an interaction between negative information and company reaction was found only when considering two sub groups (low x high involved subjects); (ii) corrective action was significantly higher when negative publicity was about the product, which is a result contrary to the one found by Matos and Veiga (2003) and convergent with the one found by Pullig (2000); (iii) negative publicity is more persuasive for those consumers less involved with the product. This last one is an extension of the results found by Matos and Veiga (2003). Finally, a discussion is made comparing the results found with previous research and strengthening the importance of replications and extensions for the marketing discipline advancement.

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

JEL Classification: C9, M31