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The Impact Of Significant Negative News On Consumer Behavior Towards Favorite Brands

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  • Brad Sago
  • Craig Hinnenkamp

Abstract

This research examines how negative corporate news in the form of a significant product related crisis impacts consumer behavior towards the company’s brand. This study analyzed changes in consumer behavior towards favorite brands after a significant product related news event happened to the makers of those brands. The research found that negative corporate news had some adverse impact on aspects of consumer affinity towards favorite brands, as well as other consumer behavior variables including, brand perception, price levels willing to pay, and willingness to purchase..

Suggested Citation

  • Brad Sago & Craig Hinnenkamp, 2014. "The Impact Of Significant Negative News On Consumer Behavior Towards Favorite Brands," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 8(1), pages 65-72.
    • Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:65-72
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    References listed on IDEAS

    as
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    5. Kevin Lane Keller & Donald R. Lehmann, 2006. "Brands and Branding: Research Findings and Future Priorities," Marketing Science, INFORMS, vol. 25(6), pages 740-759, 11-12.
    6. Dr. S. S. Bhakar & Shailja Bhakar & Shilpa Bhakar, 2013. "Relationship Between Country Of Origin, Brand Image, And Customer Purchase Intentions," Far East Journal of Psychology and Business, Far East Research Centre, vol. 10(4), pages 25-47, February.
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    Cited by:

    1. Zhao, Xingrong & Ma, Ye & Shao, Shuai & Ma, Tieju, 2022. "What determines consumers' acceptance of electric vehicles: A survey in Shanghai, China," Energy Economics, Elsevier, vol. 108(C).
    2. Aikaterini-Apostolia Balatsou & Efstathios Dimitriadis, 2020. "Brand Name and Consumer’s Buying Intention," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 861-874.

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    More about this item

    Keywords

    Brand Equity; Brand Attachment; Brand Image; Consumer Behavior; Negative Corporate News;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

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