This research has two main purposes. The first objective is to examine the
negativity effect on consumers’ attitudes and behavioral intentions. To examine the
negativity effect, negative publicity about companies and their brands in authorized
publications such as national newspapers is used to measure its impact on consumers’
attitude toward the companies and the brands. Further, the study examines consumers’
behavioral intentions such as purchasing and investing intention after they are exposed to
negative publicity. Consumers’ attitude change is measured before and after being
exposed to negative information about a corporation. To examine the negativity effect
and its influence on consumers’ attitude, the experimental study is conducted. The second
objective is to examine how consumers exposed to negative publicity process corporate
advertising. Corporate advertising is applied as a counter strategy for recovering
corporate images damaged by negative publicity. To explain consumers’ information
processing of corporate advertising after they are exposed to negative publicity, a
theoretical framework, contextual priming effect is explicated.