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Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
Presented at: SAMRA 2010 & ESOMAR Online 2010
Comments, questi...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
“On behalf of all of our staff who came in early to make and
s...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
Does negative publicity
exist?
Does negative publicity
exist?
...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
“There’s no such thing as
bad publicity [in restaurants],
unle...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
Influencing factors:Influencing factors:
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
It’s always interesting for me
to find out “how did you hear
a...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
Reconstructive
memory
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
1.Cognitive biases
• Confirmation bias
• Risk aversion
2.Cogni...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Commitment across
25 categories
0 20 40 60 80 100
Claimed re...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Existing
relationship
Source: Findlay, K & Louw, A. “Negativ...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
1.Situated/embodied
cognition
2.Activating schemas
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Ambiguous responseUnambiguous support Unambiguous stone-wall...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Sources: Dilbert cartoon: http://www.dilbert.org/strips/comi...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
“He’s never made a
public apology…
That’s fine. He can stick...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Source: Sass, E. 2010. "Nestle's Bites it On Greenpeace Cont...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Source: Skurnik, I, Yoon, C, Park, DC & Schwarz, N. 2005. "H...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
1
2 3
Source: Tybout, AM, Calder, BJ & Sternthal, B. 1981. “...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
27 Nov 2009
Accident
11 Dec 2009
Announcement of
Tiger’s “in...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
- 10%
0%
10%
20%
30%
40%
50%
60%
Question: In the past 3 mon...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |URL: http://www.youtube.com/watch?v=5NTRvlrP2NU
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
The Sponsors
•Most sponsors fared fairly well
•Discussion as...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
• Watts vs. Gladwell
– Influencers vs. forest fire
• Self-or...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
• Unpredictable, but…
• …betweeness centrality
• …K-shell de...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
"The Cape Town factor
comes into it... Cape Town
loves [snub...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
Firm’s response
is vital
•Honesty is key
•Refuting doesn't
w...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |Source: http://www.food24.com/News-and-Guides/Features/Portof...
Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
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Negative Publicity: How People Process It and How Brands Should Respond to It | Kyle Findlay & Alice Louw

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This deck presents case studies and a review of the cognitive theories behind how people process negative information about a brand, and suggests factors that a brand should consider before responding to a scandal.

PLEASE NOTE:

1. See speaker notes for more info on each slide

2. Drop me an e-mail if you would like a copy (e-mail address on front slide).

3. Link to full paper - it's behind a paywall unfortunately :(
http://www.esomar.org/web/publication/paper.php?id=2171

Published in: Business, Travel
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Negative Publicity: How People Process It and How Brands Should Respond to It | Kyle Findlay & Alice Louw

  1. 1. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 Presented at: SAMRA 2010 & ESOMAR Online 2010 Comments, questions? E-mail: Kyle.Findlay@tnsglobal.com
  2. 2. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 “On behalf of all of our staff who came in early to make and serve your food… I would like to thank you for messing their day up and more seriously disrupting my afternoon nap. Please do us all a favour and don’t ever book a table at my restaurant again.” “I will try and contain my excitement and await the contribution from “the CEO of XYZ Fund Managers, Mr. JS”. Upon receipt I will pin it up in the bathrooms for customers perusal while they relieve themselves.” “In no way was I aware that any special measures had been taken by the restaurant on behalf of our party of four… One of the dinner guests for last night’s booking, the CEO of XYZ (altered) Fund Managers… will be following up in due course with his own thoughts on the matter.”
  3. 3. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 Does negative publicity exist? Does negative publicity exist? “The main thing it has done is make a huge amount of people aware of where we are, what we do”
  4. 4. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 “There’s no such thing as bad publicity [in restaurants], unless you poison them, interfere with their underage son or daughter, or you’re too expensive“
  5. 5. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 Influencing factors:Influencing factors:
  6. 6. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010
  7. 7. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 It’s always interesting for me to find out “how did you hear about us?”. During that period, 6-7 times out of 10 it was through the email correspondence
  8. 8. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 Reconstructive memory
  9. 9. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 1.Cognitive biases • Confirmation bias • Risk aversion 2.Cognitive dissonance 3.Cognitive fluency
  10. 10. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | Commitment across 25 categories 0 20 40 60 80 100 Claimed recall Verified noting Overall reaction (% very good) Likeable ad (top 3 boxes) Interesting ad (top 3 boxes) Believable ad (top 3 boxes) Committed users Uncommitted users Available non-users Unavailable non-users Source: Rice, J & Bennett, R. 1998. “The Relationship between Brand Usage and Advertising Tracking Measurements”, Journal of Advertising Research, May/June
  11. 11. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | Existing relationship Source: Findlay, K & Louw, A. “Negative Publicity: How do customers process it and how should brands manage it?”. South African Market Research Association 2010 Conference
  12. 12. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | 1.Situated/embodied cognition 2.Activating schemas
  13. 13. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
  14. 14. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |
  15. 15. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | Ambiguous responseUnambiguous support Unambiguous stone-walling
  16. 16. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | Sources: Dilbert cartoon: http://www.dilbert.org/strips/comic/2010-07-27/ Tybout, AM & Roehm, M. 2009. “Let the Response Fit the Scandal”. Harvard Business Review,
  17. 17. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | “He’s never made a public apology… That’s fine. He can stick to his fucking rules of his own thing and stick to his story – fantastic. Good luck. You’re number one in Google for being an asshole and Cape Town will kill you.”
  18. 18. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | Source: Sass, E. 2010. "Nestle's Bites it On Greenpeace Controversy". MediaPost. URL: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=126171 vs.vs.
  19. 19. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | Source: Skurnik, I, Yoon, C, Park, DC & Schwarz, N. 2005. "How warnings about false claims become recommendations". Journal of Consumer Research, 1.Refutation 2.Retrieval 3.Storage
  20. 20. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | 1 2 3 Source: Tybout, AM, Calder, BJ & Sternthal, B. 1981. “Using Information-Processing Theory to Design Marketing Strategies”. Journal of Marketing Research, 28 (February), 73–79. 1.Refutation 2.Retrieval 3.Storage
  21. 21. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | 27 Nov 2009 Accident 11 Dec 2009 Announcement of Tiger’s “indefinite” leave from Golf 18 Feb 2010 Tiger Apologises
  22. 22. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | - 10% 0% 10% 20% 30% 40% 50% 60% Question: In the past 3 months has your opinion of (BRAND) become more favorable, less favorable or had no change? (N=1,000 TNS Express Omnibus Respondents – representative of the U.S. 18+ individual population) 11% 3% 3% 2% 5% Less Favorable 50% Source: Friedman, L & Smith, M. 2010. "The New Influence Tracking". Presented at The ARF 56th Annual Convention + Expo
  23. 23. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |URL: http://www.youtube.com/watch?v=5NTRvlrP2NU
  24. 24. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | The Sponsors •Most sponsors fared fairly well •Discussion associating Tiger with sponsors relatively low compared to the total Tiger discussions •Accenture taken the largest hit – not surprising as Tiger had come to embody the Accenture brand Source: Friedman, L & Smith, M. 2010. "The New Influence Tracking". Presented at The ARF 56th Annual Tiger Woods - the Brand • Tiger posted huge loss in sponsorships • But, negative sentiment appears to be dissipating • Tiger is still one of America’s favourite athletes and America’s favourite golfer THE BRANDS
  25. 25. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | • Watts vs. Gladwell – Influencers vs. forest fire • Self-organised criticality
  26. 26. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | • Unpredictable, but… • …betweeness centrality • …K-shell decomposition
  27. 27. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | "The Cape Town factor comes into it... Cape Town loves [snubbing brands that they disapprove of]... They are fickle and they are proud of being fickle… It's a close-ranks thing. It starts to become a trend."
  28. 28. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 | Firm’s response is vital •Honesty is key •Refuting doesn't work •Ambiguity doesn’t work 41Relationships affect interpretation •Confirmation bias, risk aversion •Make excuses for/defend you Size matters •Small vs. big brands 2 Direct vs. indirect •Influences response strategy 3
  29. 29. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |Source: http://www.food24.com/News-and-Guides/Features/Portofino-closes-20100408
  30. 30. Negative Publicity | Kyle Findlay & Alice Louw | SAMRA 2010 |

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