Conventional Wisdom vs Marketing Academia: Is There Such a Thing as Bad Publicity

Literature often assumes that publicity events are strictly positive or negative. However, instances exist where both positive and negative impacts on attitudes toward the brand occur simultaneously, such as when performance-related perceptions are positively influenced while value-related perceptions are negatively affected, or vice versa. The literature on negative publicity and brand extension is combined in this study to argue that purchase intent is decreased by negative publicity if only core brand associations are affected by the negative publicity and/or if the negative publicity results from managerial decisions. In Experiment I, participants were presented with a negative publicity incident that positively impacted performance-related perceptions while negatively affecting value-related perceptions. In this scenario, a significant reduction in purchase intention is observed if the incident results from managerial decisions, regardless of whether the negative publicity impacts core or peripheral associations. In Experiment II, participants were presented with a negative publicity incident that positively impacted value-related perceptions while negatively affecting performance-related perceptions. In this scenario, a significant reduction is observed if the incident impacts core associations but arises from external events. Married individuals are also found to be more sensitive to publicity incidents. Based on the findings, theoretical and managerial implications and directions for further research are also discussed.