Effects of Mitigating Information about Negative News Using Comparative vs. Selective Processing

Abstract As consumers learn about a company’s actions, information about negative actions could impact customer purchase decisions. Of interest to firms is how customers process this information when making evaluative decisions. Two experiments explore the effect of comparative and selective processing on brand choice when participants are given negative information about company manufacturing practices to test whether the information affected product choice. The results show that participants were less focused on positive aspects of a focal product and less likely to choose it when engaging in comparative processing compared to those engaging in selective processing. Mitigating information about the negative information made participants more likely to choose the firm’s products compared to those that did not receive the mitigating information. These results provide insight as to how companies can communicate to customers to help reduce the negative impact of negative news. Public relations efforts should be designed in a way that encourages consumers to engage in comparative processing.