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Consumers’ responses to negative publicity: the influence of culture on information search and negative word-of-mouth

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Abstract

Negative publicity is believed to have detrimental impacts on a brand; however, consumers’ responses to negative publicity may not always be negative, and the responses may vary in different cultural contexts. The current study aims to understand the influence of internalised aspects of culture on Chinese consumers’ responses to negative publicity. Our results suggest that Chinese consumers with higher levels of collectivism and uncertainty avoidance are more likely to search for further information and to spread negative word-of-mouth when confronted with negative publicity, than those with lower levels. Further, consumers with higher levels of power distance are more likely to search for further information when the negative information is severe and to participate in negative word-of-mouth when the negative information is less severe, than those with lower levels of power distance. Finally, when exposed to negative publicity, further information search is positively related and negative word-of-mouth negatively related to brand attitudes and purchase intentions.

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Authors and Affiliations

  1. M263, Business School, University of Western Australia, 35 Stirling Hwy, Crawley, WA, 6009, Australia

    Mingzhou Yu, Fang Liu & Julie Anne Lee

Authors
  1. Mingzhou Yu
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  2. Fang Liu
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Correspondence to Fang Liu.

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Appendices

Appendix 1: An example of research stimuli (a news article in Shanghai Morning Post)

“XXX银行”误算用户抵押贷款

figure a

晨报记者 姚舟 沈琳

晨报讯 一位中国“XXX银行”徐汇分行的用户向上海市消费者保护委员会投诉该行误算其抵押贷款利率。当前工行的年贷款利率为 6.55%, 但该行工作人员在系统中输入 8.55%, 致使该用户在过去的两年内额外多付超过 ¥50,000。上海市消费者保护委员会确认了这个事件并表示近期会对该行采取进一步措施。

English translation of the News: A Shanghai customer recently lodged a complaint to the China Consumer Protection Bureau (CCPB) in Shanghai  about a mortgage loan mistake made by a “XXX Bank” branch in Shanghai’s Xu Jia Hui District. The correct fixed rate of ANZ should be 6.55%; however, the staff entered 8.55% in the system, which caused the customer paying an extra RMB 50,000 in the last 2 years. The CCPB has confirmed this case and may take further actions against the bank.

Appendix 2: Measures

Power distance

People in higher positions should make most decisions without consulting people in lower positions

People in higher positions should not ask the opinions of people in lower positions too frequently

People in higher positions should avoid social interaction with people in lower positions

People in lower positions should not disagree with decisions by people in higher positions

People in higher positions should not delegate important tasks to people in lower positions

Uncertainty avoidance

It is important to have instructions spelled out in detail so that I always know what I’m expected to do

It is important to closely follow instructions and procedures

Rules and regulations are important because they inform me of what is expected of me

Standardized work procedures are helpful

Instructions for operations are important

Collectivism

Individuals should sacrifice self-interest for the group

Individuals should stick with the group even through difficulties

Group welfare is more important than individual rewards

Group success is more important than individual success

Individuals should only pursue their goals after considering the welfare of the group

Group loyalty should be encouraged even if individual goals suffer

NWOM

I will be likely to tell others about this negative news

I will not miss any chance to tell others about this negative news

I will be likely to tell others that I will not be a customer of this brand

I will be likely to suggest others not to be a customer of this brand

I will be likely to write something online to let more people know about this negative news

Information search

I will be likely to search more information about this brand after being exposed to the news

I will be likely to check with my friends if they have any experience with the brand

I have an interest in knowing more about the affected brand

Brand attitude

I feel favourable to the brand

I like the brand

I believe that the brand is good

I am positive towards the brand

I believe that the brand can satisfy my needs

I think I can trust the brand

Brand purchasing intention

I may still use the services of this brand

I may still consider this brand for my banking services

I plan to use the services of this brand

I intend to be connected with this brand

I can see myself as a customer of this brand in the next 3 months

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Yu, M., Liu, F. & Lee, J.A. Consumers’ responses to negative publicity: the influence of culture on information search and negative word-of-mouth. J Brand Manag 26, 141–156 (2019). https://doi.org/10.1057/s41262-018-0123-3

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  • DOI: https://doi.org/10.1057/s41262-018-0123-3

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