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The impact of fake news on its sponsor’s brand trust

Author

Listed:
  • Chan-Olmsted, Sylvia M.

    (University of Florida, USA)

  • Qin, Yufan Sunny

    (University of Florida, USA)

Abstract

This study examined how fake news sponsored by brands influences consumers’ brand trust. Specifically, it explored the effects of fake news on brand trust and the factors (eg product involvement, audiences’ previous fake news experiences and media consumption) that might moderate this association. An online between-subjects questionnaire-based experiment (n = 600) was conducted with a 2 (fake/real news) × 2 (brands of high/low product involvement) design to explore the relationship between fake news and brand trust. The results showed that the difference in brand trust between fake and real news conditions was not significant. Additional analyses, however, identified a relationship between perceived news credibility and brand trust in the fake news context. In addition, the influence of news credibility on brand trust is moderated by product involvement and certain social media usage. This study suggests that fake news consumption is a complex behaviour that might not lead to the direct transfer of negative brand outcomes, as consumers might have different sensitivity levels and perceived credibility of fake news.

Suggested Citation

  • Chan-Olmsted, Sylvia M. & Qin, Yufan Sunny, 2021. "The impact of fake news on its sponsor’s brand trust," Journal of Brand Strategy, Henry Stewart Publications, vol. 9(4), pages 446-465, March.
    • Handle: RePEc:aza:jbs000:y:2021:v:9:i:4:p:446-465
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    More about this item

    Keywords

    fake news; brand trust; message credibility; information trust;
    All these keywords.

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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