When companies get caught: The effect of consumers discovering undesirable firm engagement online

Reference:

Campbell, C., Piercy, N. and Heinrich, D., 2012. When companies get caught: The effect of consumers discovering undesirable firm engagement online. Journal of Public Affairs, 12 (2), pp. 120-126.

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Official URL:

http://dx.doi.org/10.1002/pa.1413

Abstract

We report on the findings of an exploratory set of experiments designed to test the effect of negative firm actions online. Findings point to firms suffering a loss of consumer attitude toward the brand when legal action is threatened against the creator of a consumer generator advertisement. Similarly, consumers also lowered their attitude toward a brand when confronted with information suggesting that a brand was linked to secretly posting consumer advertisements online. Implications for academics and brand managers are discussed.

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