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1、GLOBALJOURNALOFBUSINESSRESEARCH♦VOLUME8♦NUMBER1♦2014THEIMPACTOFSIGNIFICANTNEGATIVENEWSONCONSUMERBEHAVIORTOWARDSFAVORITEBRANDSBradSago,WhitworthUniversityCraigHinnenkamp,WhitworthUniversityABSTRACTThisresearchexamineshownegativecorporatenewsintheformofasignificantproductrelatedcrisisimpactscon
2、sumerbehaviortowardsthecompany’sbrand.Thisstudyanalyzedchangesinconsumerbehaviortowardsfavoritebrandsafterasignificantproductrelatednewseventhappenedtothemakersofthosebrands.Theresearchfoundthatnegativecorporatenewshadsomeadverseimpactonaspectsofconsumeraffinitytowardsfavoritebrands,aswellaso
3、therconsumerbehaviorvariablesincluding,brandperception,pricelevelswillingtopay,andwillingnesstopurchase..JEL:M31,M300KEYWORDS:BrandEquity,BrandAttachment,BrandImage,ConsumerBehavior,NegativeCorporateNewsINTRODUCTIONrandsarecomprisedofmorethanaproduct’snamelogo,symbol,orslogan.Brandingalsohasa
4、nintangiblenaturethatservesasasetofpromisestoconsumersregardingtrust,consistency,Bexpectations(Davis,2002)andperformance(Kotler,1999)ofaproductorservice.Sokeyinconsumerbehavior,brandsareconsideredthesecondmostimportantassetofacompany–onlybehindcustomers(Ambler,2000;Doyle,2001;Jones,2005).Bran
5、dscanalsoprotectconsumersbyservingasidentifiersoftheproducersoftheproducts(Bhakar,Bhakar&Bhakar,2013).Abrand’sstrengthhasbeenfoundtobeinfluencedbyconsumerperceptionsandunderstandingaboutwhattheyhavelearned,observed,understood,andheardaboutthebrand(Keller,2003).KellerandLehmann(2006)foundthat“
6、forcustomers,brandscansimplifychoice,promiseaparticularqualitylevel,reducerisk,and/orengendertrust”(p.74).However,newsaboutbrandsandbusinessesisnotalwayspositive.Consumersreceiveaconsistentflowofnewsaboutbusinessesthatislessthanflattering.Variousstudieshaveindicatedthatnegativenewsaboutacompa
7、nycanaffectconsumerperceptionsandbehavior(Griffin,Babin&Attaway,1991;Menon,Jewel&Unnava,1999;Ahluwalia,Burnkrant&Unnava,2000;Ahluwalia,2002).Thisstudyfocusesontheimpactofnegativecorporatenewsonconsumerswhosefavoritebrandsareproducedbythebusin
