Negative+Publicity+and+Sales

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Can negative publicity boost sales? Jonah Berger, assistant professor of marketing at Wharton University, Alan T. Sorensen, associate professor of strategic management at Stanford University, and Scott J. Rasmussen, an alumni of Stanford University have written an article that answers this question and explain when negative publicity can have positive effects on the sales of a product. Negative reviews or comments about a product typically tend to have negative effects on the sales of a product. An example is when a rumor circulated that McDonalds used worm meat in their hamburgers, resulting in a decrease in sales by over 25%. Their studies showed that when any product is of high awareness, there is a higher expectation for the product than if the product was not as well known. Bad publicity for products of such high expectation tend to see decreases in sales, because the negative publicity lingers with the product because it is in the consumers top-of-mind, which means the product is easily recognized by the consumer. The negative publicity will decrease consumer’s choice. On the contrast, negative publicity for products that are not well known tends to boost their sales, because the information about the product cannot be recalled by the consumer, but the consumer remembers hearing about the unknown product. The increased awareness of the lesser known product increases the likelihood of the consumer buying it. ======

Berger, Jonah. "Positive Effects of Negative Publicity." //Marketing Science// n. pag. Web. 28 Mar 2011. .


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