Positive Effects of Negative Publicity: When Negative Reviews Increase Sales

It is argued that negative publicity can increase purchase likelihood and sales by increasing product awareness and, consequently, negative publicity should have differential effects on established versus unknown products.

Abstract

Can negative publicity ever increase consumer choice, and if so, when? Three studies, using a combination of econometric analysis and experimental methods, delineate contexts under which negative publicity will have positive versus negative effects. While prior research have shown only downsides to negative press (e.g., reduced product evaluations and sales), the studies demonstrate that negative publicity can have positive through increasing consumer awareness. While a negative review in the New York Times hurt sales of books by well-known authors, for example, it increased sales of books by unknown authors. The studies underscore the importance of a temporal delay between publicity and purchase and the mediating role of increased awareness in these effects.