Negative product safety news: Coverage, responses, and effects

Abstract

N egativity in marketing communication is a dangerous phenomenon, the antithesis of the goal of the firm's marketing program--especially good public relations and advertising. Despite the increased prominence of negativity in the marketplace, knowledge about its effects is very limited. The interest here is to learn what impact negative product information has and how it can be dealt with more effectively. This article examines the sales and market share effects of six of the major negative publicity incidents in the automotive industry that have occurred during the past 25 years.