RT Journal Article
SR Electronic
T1 News and Advertisements: How Negative News May Reverse Advertising Effects
JF Journal of Advertising Research
JO J Advert Res
FD WARC
SP 507
OP 517
DO 10.2501/S0021849907070523
VO 47
IS 4
A1 May-May Meijer
A1 Jan Kleinnijenhuis
YR 2007
UL http://www.journalofadvertisingresearch.com/content/47/4/507.abstract
AB This study focuses on the effects of news and advertising expenditures on corporate reputation. Both advertisement expenditures and the tone (or tenor) of business news exert a positive influence on corporate reputation. In addition, advertising expenditures were found to magnify the effects of the tone of the news. In particular, moderately educated customers are susceptible to the tone of the news. These research results follow from a repeated yearly survey regarding the corporate reputation of 10 focal companies, and from advertising expenditures and a daily content analysis of the tone of the news in the media used by the respondents. Because advertisements magnify the effects of negative news, negative news renders advertisements unfit, especially for moderately informed consumers. The research results suggest that advertisers should wait for a storm of negative news to subside before advertising. They may monitor word of mouth to anticipate such a storm.