How Controversy Affects a Brand Image (1)

Running head: How ControversyAffects a Brand Image: Does It Help or Hinder? 1
How Controversy Affects a Brand
Image: Does It Help or Hinder?
By: Alexa DiCesare, Nicole Natale, Brandon Ross, and Ryan Kaufman

How Controversy Affects a Brand Image: Does it Help or Hinder? 2
Abstract
In How Controversy Affects a Brand Image: Does It Help or Hinder? We explored how a
scandal or social controversy has affected a brand image. Going into this study we hypothesized
that social controversies were going to have a negative impact on a brand image. This is because
of the stigma that attaches to that brand or celebrity and also the negative publicity by media and
social media towards that brand after a scandal. We used 5 recent scandals that almost everyone
who knows these people and brands knew about. Our study pretty much supported our
hypothesis in the fact that four of the five brands we studies lost support and people put this
scandal as the main association with that brand.
Introduction
Throughout history, many popular icons in the media have been exposed to controversial
moments in their careers. Controversy, by definition, is described as a disagreement. In the case
of a popular icon, particularly in the entertainment industry, it is a moment that does not sit well
with the general public. How does a brand recover from such controversy? When most people
think of brands, they think of Nike, Apple, Microsoft, etc. Advertisers of companies such as
these know there is risk when using celebrity endorsers (Thwaites, Lowe, Monkhouse, Barnes,
2012) but how is the actual celebrity’s brand affected. In this study, a brand can be any type,
including a celebrity’s self-possessed brand image. According to Gezim Alpion (2006) “There
has never been a society without celebrities,” (p. 541) so who better to focus on their brand than
celebrities? The way the public perceives the celebrity is all in relation to the celebrity’s brand-
image. Since media usually portrays these scandals negatively, this negative publicity, in
particular, has a great potential to damage that brand’s image (Dean, 2004). Also, the way in
which the celebrity themselves respond to the scandal can also affect the way the public views

their brand thereafter (Carrillat, D’Astous, Lazure, 2013). There is a common belief that
"controversy creates cash", is that necessarily true? According to (Chen and Berger, 2012), low-
levels of controversy increase the likelihood of discussion, but beyond a moderate level of
controversy, the controversy actually decreases in likelihood of discussion. Controversial topics
do two things simultaneously; they increase the level of interest, and they increase the level of
discomfort. There is no doubt that they increase the level of interest, celebrity scandal has made
self-promoting celebrities such as Paris Hilton and Kim Kardashian famous (King, 2013). It is
quite boring when two people have the same opinion on something, so dispute keeps discussion
stimulating. While there is no question about controversy increasing awareness, it is also widely
considered that the impact of a controversy is mostly negative.
In recent years, social media usage has increased exponentially, and Social media is both
good and bad for a brand (Jin, Suh, Donavan, 2008). On one hand, it allows for the interaction of
a brand with the consumer or fan and it serves as a platform to voice any ideas. The dreadful
thing about social media is its ability to rapidly spread something controversial involving the
brand. Controversies are harder to “sweep under the rug” with all of the new media available.
Kanye West is a prime example of using new media and controversy to keep himself relevant.
Whether or not West’s involvement with these scandals is intentionally to keep his name in the
news or not, he has become a household name because of such incidents. Which is why in this
study, West is observed, as well as other media figures, and determine how their likability has
changed. Our objective is to gain a better understanding on the correlation between brand
controversy and public image, sales, and recognition. One brand that seemingly doesn’t learn
from their mistakes, is the clothes mogul, Urban Outfitters. There has been over a dozen
instances that Urban Outfitters have made headlines for their controversial clothing products.

Most recently, they released a Kent State Crewneck with faux blood stains on it, reminiscent to
the 1970 “Kent State Massacre” that left four people dead. Urban Outfitters, of course, pulled the
product and apologized for offending people, claiming that it was not meant to be interpreted as
blood stains (Olheiser, 2014). This makes one begin to wonder, how or why does something like
this happen? Do they do this on purpose for exposure? One cannot help but think that an
incident such as this can only affect the brand negatively, which is the general assumption. In
this paper, the questionnaires that were distributed will be analyzed to help gain a better
understanding about this issue.
Literature Review
In the article To See and To Be Seen: Celebrity Practice on Twitter, it goes into
detail about how media is changing the image of celebrities. The article touches upon how media
now is even creating celebrities. They take a look at how celebrities use twitter to interact with
their fans and their followers. Also to examine the negative or positive feedback that many
express to celebrities on twitter. This is related to our research we chose to do because we also
take a look into how an aspect of media effects a celebrity or brand image. The difference is that
we focus more on how a scandal the celebrity or brand is involved with and how that effects
them.
Another article that coincided with our research was Media and Celebrity Culture.
In this article they talk about social status and where celebrities fit into this status. It also goes
into talk about things that effect celebrities because of their status. Although heroes and fame
have always been around, this article goes into depth about how a celebrity is a new emerging
concept. They give the definition of a celebrity which to them is a “person known for their well-
knownness.” The article touches upon how celebrities are creatures of capitalism. This relates to

our research we are conducting because it touches upon how the status of Celebrities effects
them.
The Strange Symbiosis of Taylor Swift and Kanye West was an article that directly
related to our field of research. Since Kanye was one of the people we choose to do some
research on, this article is perfect. It talks about how after the big scandal he thought that his
career was over. To his surprise, it actually made his career sky rocket. The same with Taylor
Swift, her career became better than ever after the scandal that both Taylor and Kanye were
involved in. This is related to our research because we are looking at the effects of scandals, like
such, and how they affect a celebrity or a brand.
The article that is probably the most relatable to our research is titled Celebrity
Endorsement, Firm Value, and Reputation Risk: Evidence from the Tiger Woods Scandal. This
article was written by Christopher R. Knittel who went to Sloan School of Management, and
Victor Stango from the graduate School of Management, University of California. This research
article was done to see what effects the stock market had on Tiger Woods sponsors and sponsor’s
competition. From the research that was done Tiger Woods three main sponsors, Nike,
Electronic Art, and Gatorade took a hit in market loss. Like our hypothesis, these researchers
believed that the brand image would be harmed by this social controversy. In our research we
showed this by seeing how many people supported that person(brand) after the scandal and here
they did it by showing how many people supported the brands that went along with the person.
They also went alittle further than we did by seeing if the supporters of that brand went to
support a different brand after the scandal. However, in the end their research showed that a
scandal can hurt the whole market not just the brand that went along with it, because it shows
people that there is a risk involved when supporting any brand.

This article is titled Urban Outfitters apologizes for its blood-red-stained Kent State
sweatshirt. It was written by Abby Ohlheiser. As can be assumed from the title, this article talks
about how Urban Outfitters put out a blooded stain Kent State sweatshirt out in their stores. They
only offered one of these sweatshirts at $129. The article talks about how the blood spatter
pattern was very similar to the “Kent State Massacre” of 1970 which left four students dead. The
author talks about how people were infuriated with that and very upset that they were using a
representation of a time that was very painful for many people as a publicity stunt. Even though
at first a lot of people at first wanted this shirt, the author talks about how there is a lot of
negative feelings towards Urban Outfitters now due to this scandal. The article then talks about
how Urban Outfitters sent out a full apology about putting out this shirt. This article relates to
ours because it shows how one social controversy can really give a whole brand a bad name.
This next article focuses on how social media plays a rather large part when it comes to
celebrities and brand images. This article is called Celeb 2.0: How Social Media Foster our
Fascination with Popular Culture. This article was written by Kelli S. Burns. This article talks
about how obviously the media such as television and newspapers played a huge rule in
spreading scandals but now social media is doing that on even a larger scale. The one thing that
this author talks about is how even though Myspace and Facebook had the two top spots for
social media there are many hundreds of other social media outlets out there where basically
anyone can see or be persuade about the scandals that have happened. This article is more about
how social media helps people blog with celebrities and talk to celebrities. It pretty much talks
about how social media has been used to get people closer to celebrities and their lives. This
whole article does not necessarily go hand and hand with are topic but it once again shows how
every part of a celebrities life is out there to be criticized or praised. This article focuses more on

how celebrities interact with people on social media and get what they want them to know about
them across but in the same respect, journalist and reports are on social media putting things up
about celebrities in the way they want those celebrities to be perceived.
This next article is Celebrity and scandal. It was written by Barry King graduate of
Auckland University. This article talks about how often scandal is talked about and dramatized
by journalism and in the media. Also, this author talks about how much people love hearing the
bad things that celebrities and icons are doing and that is why social controversies are made such
a spectacle to the public. He talks about how publicity and self-promotion is enough to make
someone a star like Kim Kardashian and Paris Hilton, without having any real accomplishments.
The author also goes into great detail about hard and soft scandals and how they had impacted a
brand. This article relates to our research because it talks almost exclusively about how scandals
impact a person’s reputation. The difference with our research is we wanted to see if every
scandal impacts a brand in the same light, if everyone has a negative impact or everyone has a
positive impact or whether there is some variation. However, this article focuses more on the
aspect that scandals are a money maker for networks and those that show bring these scandals to
light, not necessarily how it impacts the brand such as the person that the scandal was attached
to.
This next article that seemed very relevant with our research is Consumer Reaction to
Negative Publicity: Effects of Corporate Reputation, Response, and Responsibility for a Crisis
Event. The author of this article is Dwane Hal Dean, graduate of East Carolina University. This
article focuses on corporate crisis. It states how corporate crisis usually result in negative
publicity and tend to have a negative impact on the company. This research study shows the
effects of the reputation of the company for social responsibility before the crisis happened. A

finding that the research did not expect to find was that an inappropriate response by a “bad”
company (which they defined in the study) led to an increase for the company while an
inappropriate response by a “good” company (also defined in the study) led to a decrease for the
firm. It also talks about no matter how good the reputation of that person is, that is not enough to
disregard the crisis. This is in relation with our study because even though Bill Cosby’s was
respected and had a very good reputation, since the scandal according to our study, his fans or
supporters have decreased significantly.
This next article is When, Why, and How Controversy Causes Conversation. It was
written by Zoey Chen and Johan Berger. This study discusses how much controversial topics are
discussed in relationship to non-controversial topics. After they did research it was found that
controversial topics are not more likely to be discussed than non-controversial topics. However,
controversial topics are discussed to a bigger audience and dramatized more. The research found
there are two countervailing processes when it comes to talking about controversial issues. For
normal people (those not in journalism or the media) find controversial topics more interesting to
discuss and see everyone’s opinions about it, but at the same time find discomfort in talking
about them. This study is just about controversial topics in general like abortion, politics, and
religion. It is like our study because it talks about how controversial topics are more interesting
to talk about and especially when it is about people that everyone knows such as the people and
brands we used in our study.
These next two articles both focus on how negative publicity of something affects their
image or their ad endorsements. This first article is titled The Impact of Negative Publicity on
Celebrity Ad Endorsements. It was written by Des Thwaites, graduate of the University of Leeds
Ben Lowe from the University of Kent, Lien L. Monkhouse out of the University of Sheffield,

Bradley R. Barnes also from the University of Sheffield. In this article these four authors
research on the impact of negative publicity on celebrity ad endorsements. Their negative
controversy involves a drunk driving incidence with three different people and how the way in
which it was publicized negatively affected their image. This is very similar to our research,
however we had several different instances and we focused more on the loss of supporters
towards that brand and not really what they thought of the person. We wanted to see if they lost
those supporters due to the controversy. This next article is titled Salient Effects of Publicity in
Advertised Brand Recall and Recognition, written by Hyun Seung and Jaebeom Suh. This article
talks about strategies that generate publicity from advertising campaigns. The main point in this
article is how exposure to publicity in ads made an impact on the person receiving that
information. They did a test where the person had to say yes if they recognized something or no
if they did not recognize it. This article relates to our article in several ways. However, the main
way in which it relates to our study is that just like the recognition test, by the media blowing up
the social controversy people remember it and take from it what they can see and what they
remember. That is one actually one of the main reasons why in our study we believe that the
brand did suffer after the scandal because of how people received the information and the impact
it had on their minds and their memories.
This next article is For Better, for Worse? What to Do When Celebrity Endorsements Go
Bad. This article focuses more on how the company that a celebrity in a scandal is involved with
is effected by that scandal and not necessarily how it affects the celebrities brand image. This
study is mainly about whether or not a company should keep or lose the celebrity that they have
endorsed or show they continue to endorse said celebrity. This article talks about how Nike was
negatively affected when the Tiger Woods scandal happened and how people no longer wanted

to support Nike and buy their product because it is related to what Tiger did. The way in which
our research differs is that we wanted to see whether or not people took to the scandal in a
positive light and continued to support that celebrity or brand. This article is all about how the
scandal has negatively impact the company for which the celebrity is a part of, not necessarily
the support of the actual perpetrated of the scandal.
This article is called Everything You Need to Know About the Bill Cosby Scandal. This
obviously talks about all of the allegations against Bill Cosby and why it is such a big deal and
how the media has gotten ahold of it and has used it against him. This article is very relevant to
our study because Bill Cosby’s brand is one of the one’s that we are focusing in this study and by
using this article to get a better understanding of his allegations helped us to explain his scandal
to the people talking our questionnaire.
This next article is titled How Brand Image, Country Of Origin, Andself-Congruity
Influence Internet Users’purchase Intention. This article was written by Chih-Ching Yu, Pei-Jou
Lin, And Chun-Shuo Chen. This article is kind of related to our research but for the most part is
not. We used this article because they defined what symbolic brand image was and we
incorporated that definition in our research article. However, their article is about how the
country influences brand image, and customers purchase intention of luxury brands over the
Internet. The researcher found that country of origin and brand image had a positive impact on
the purchase intention. They conducted their research by uses 15 brands of handbags and the
purchase intent throughout 13 different countries.
This next article is called Is Brand Awareness a Marketing Placebo? It was published by
Ya-Hsin Hsiao, Ya-hei Hsu, Suh-Yueh Chu, Wenchang Fang. This article examines brand
awareness on the placebo effects in marketing. This article talks about how businesses disguise

their cheap products by marking up its price, or brand associated with it, or some scandal. Our
article is related to this one because of this. For example, not a lot of people really knew about
the movie The Interview or those that knew about it really were not too interested in it until the
scandal behind it happened, and it was attached with all the drama. Our research showed that
more people went to see the movie after the scandal even though on some places on line it was
more expensive just because they wanted to see what the uproar was all about. Like it shows in
this research the brand “The Interview” actually did better because than before because of the
scandal.
Methodology
The overall methodological approach for our research paper was quantitative data
analysis, as a collective, we decided that this would be the best. Qualitative research is favorable
in many instances, but in this particular study, we found that quantitative would best fit. The
drawback with qualitative research in this study is that seeking out the opinions of fewer subjects
will cause for unreliable data and also might be too focused around only a few people’s opinions.
It would also be difficult to simply observe subjects because our research is focused around
public opinions, attitudes, and values, therefore, this approach best fits the overall research
design. The fundamental research conducted is based on the opinions of students (ages seventeen
and older) at a state university. The specific method of data collection that was used is
questionnaires, the questionnaire is three pages in length and analyzes (number of social
controversies) with three questions per controversy. Brief descriptions of each controversy were
provided in the question to give the subject a refresher on the scandal. This questionnaire was
handed out to 200 people seventeen years and older at a college campus in the northern part of
the country. The questions were designed to determine if the subject was a fan of the proposed

celebrity before the controversy in question occurred and how their feelings changed afterwards.
Respondents were offered with a reasonable range of answers to choose from along with various
open-ended probing questions. Initially, we wanted to use less questions and gauge public
opinion on celebrities having not reintroduced their scandal, with no before and after questions.
This was a foreseeable problem because the research was too close-ended and giving no
indication of why the respondent liked the celebrity or why they did not like the celebrity.
Results
Figure 1
For the first set of results we asked our participants weather or not they were supporters
of a certain brand or celebrity before they were involved in scandals that were talked about all
over the media. As you can see in figure one, the results have shown that for almost every brand,
their number of supporters were high in each category except for one. The only brand that saw
0
20
40
60
80
100
120
140
160
180
Kim Kardashian Kayne West The Interview Bill Cosby Miley Cyrus
Supporters Before Scandal
Yes No

results where there was less than one hundred supporters before the movie was involved in the
scandal. Kim Kardashian, Kanye West, Bill Cosby and Miley Cyrus all have over one hundred
supporters, which is over half of the people we asked. The only exception for this is the
interview, which had slightly under a hundred supporters prior to the scandal the movie was
involved in. These are the exact results we expected. Since all the brands we decided to study are
household names, we knew that each of them would have many supporters.
Kim Kardashian had 139 of the 200 people that were supporters before her scandal. Even
though, Kim had arguably no achievements, some businesses disguise their cheap merchandise
as high quality through extrinsic cues, such as price and brand (Hsu, Chu, Fang, 2014), which
they did with Kim’s show. Kayne, with the highest number of supporters had 157 supporters.
The interview had the least number of supporters which was 96; while Bill Cosby had 136 and
Miley Cyrus had 124.
0
20
40
60
80
100
120
140
160
180
Kim Kardashian Kanye West The Interview Bill Cosby Miley Cyrus
Supporters After the Scandal
Yes No

Figure 2
Our next step was to study the number of supporters each brand had after the scandal they
were involved in. As you can see in figure 2, the results show a similar pattern to those in figure
one. All of the subjects lost fans except for The Interview, which to our surprise gained
supporters. This went against our theory that scandals have a negative effect on brands. A reason
for this is because it was talked about so much on social media. This is due to the fact that social
has come up from being a fringe activity to a mainstream passion according to Burns (2009). The
other four showed the results that we expected to see. Many of these brands have lost a
substantial amount of supporters. Kanye West had the greatest loss with 122 saying that they
weren’t a supporter of him. Kim and Miley nearly tied with Kim having the loss of 93 supporters
and Miley losing 80. Kim’s scandal was brought to the general public when she posted it on
Instagram and twitter. According to Alice Marwick and Danah Boyd (2011) “on Twitter,
celebrity is practiced through the appearance and performance of ‘backstage’ access,” (p. 139)
which is shown in Kim’s case. Bill Cosby also had a high loss of supporters with 67. He was
accused in all of 16 sexual abuse against sixteen different women (Alter, 2014). This loss for
Bill Cosby was kind of foreseeable because Tiger Woods was involved in a sex scandal, however
not rape, but his brand Nike lost 2% market value (Knittel & Stango, 2013).
For the results so far, we are seeing the patterns that we originally thought to see. For all
brands except on, The Interview, we are seeing a loss of supports after being involved in
scandals that were talked about for weeks in the media. Although the scandal(s) these celebrities
brought their name to media outlet worldwide, it inevitably hurt their brands.

Figure 3
Finally was the question that was the most vital to our area of research. Of the two
hundred people we surveyed, we wanted to see how many actually stopped being supporters of
the brand due to the scandal that they were involved in. These results were the most vital to us,
and they came out a little different than we expected. We initially thought that the majority, if
not all would have lost the supporters due to the scandal. However, our results showed us
differently. The final results seemed to be divided. Four of the five, Kim Kardashian, Kayne
West, Bill Cosby and Miley Cyrus lost their supporters because of the scandal(s) that they were
involved in. Kim has a loss of 66 and Kayne had the greatest loss of 89. Miley had really close
numbers with a loss of 54 supporters due to the scandal she was involved in. 45 of the people we
surveyed stopped supporting Bill Cosby because of his recent involvement in a scandal. The
interview was once again the odd one out with the loss of only 25 supporters because of the
scandal.
0
10
20
30
40
50
60
70
80
90
100
Kim Kardashian Kanye West The Interview Bill Cosby Miley Cyrus
Reasons for Loss of Supporters
Due to Scandal Other Reasons

Discussion
As stated before, the study conducted looking at 5 different controversial moments in the
media and how the public responded to them. This study simply scratched the surface of what
future research can become of it. Why people buy and what makes brands appealing to the public
is a fascinating subject. In the instance of Bill Cosby, it is not surprising that so many people
turned on him. Even a sterling reputation prior is not expected to protect a brand that is
responsible for a scandal (Yu, Lin, Chen, 2013). The allegations towards Cosby go against
morals and interpersonal ethics. Had he not got rightfully accused, his legacy would not be
seemingly tarnished, as it is now. It is easy to see why Miley Cyrus fans stopped adoring her
after her VMA and music video scandals of transforming her image. Cyrus’ persona endured a
complete makeover as she went from beloved Disney teen star, to a rebellious ‘twerking’ teen.
Perhaps one of the biggest surprises, however, is that a great amount of subjects discontinued to
support Kim Kardashian after her controversial Paper Magazine cover. This is interesting
because this behavior by Kardashian is what many people come to expect over the years of her
being a popular icon. Kanye West, however, had the most amount of subjects turn against him
after his VMA scandal with Swift. West has never been known to have an endearing or public
appealing attitude, but the 2009 incident set his disconnect with the public over the edge. Just
from this study, it appears West has lost a number of fans due to his actions. A very few amount
of subjects watched the movie “The Interview” due to the Korean controversy surrounding it.
The results were very evenly distributed among those who planned to watch the movie before the
controversy, and those who planned to watch it after the controversy. There is no question that
the movie gained more exposure on a national level because of the threats made by North Korea.

If this was, indeed, a publicity stunt, Sony got more publicity than money could buy, while also
being able to play the victim.
Conclusion
Scandals will always have some sort of impact on a brand, it just depends largely on the type of
scandal, as well as how it fairs up to morals. Controversy does not just go left unheard, there is
no question that new media has magnetized controversial moments and it’s outcomes tenfold. It
is believed that Taylor Swift’s career was given a huge boost after the 2009 VMA scandal.
According to O’Malley (2014), “There is little doubt that the incident, however traumatic for
both at the time for vastly different reasons, was perversely symbiotic-and is at the very least
something that has caused both stars to shine brighter today.” Many also believe that the scandal
caused many to become more aware of Swift, also sympathizing with her. And on another hand,
there is Bill Cosby and his incident. According to our study, his public appeal flipped completely
upside-down, due to the scandal. There is certainly a lot to be said about the effect controversy
has on a brand, our study was aimed to shed some light on public opinion. For a future study,
perhaps one can look at the buying habits of consumers in relation to a controversial product or
brand. As stated before, any publicity is good publicity, but certain scandals work better for
specific brands. For example, a brand like Mountain Dew wants people to think that they are
edgy, as they are competing for the teen demographic. So for mountain dew to release a slightly
controversial ad, nobody would really be too upset about that. It would appeal to the teen
demographic, and they can appeal to tamer customers by pulling the ad (which they have done
before). As far brands like Dillard’s, though, or politicians such as Anthony Weiner, the negative
repercussions may outweigh the benefits. Controversy is nothing more than a double-edged

sword. Surely, a little bit of controversy can garner some attention, while too much can hurt, and
it might not be the kind of attention that most brands or people want.
References
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Ohlheiser, A. (2014, September 16). Urban Outfitters Apologizes for Its Blood-Red-
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