The objective of this research is to examine the impact of negative corporate news on the perceptions and
consumer behavior towards consumer favorite brands. After identifying their favorite brands of clothing,
shampoo and personal electronics, 116 undergraduate university students were given a scenario detailing
significant negative news about the corporation that produced their favorite brands. The students then
were surveyed regarding changes in brand perceptions of their favorite brands, their willingness to shop
for competing brands, amount willing to pay for favorite brands, and willingness to purchase their
favorite brands.