As the Wal-Mart case showed, companies and their brands can be seriously
threatened by negative publicity. With the growth of the television and newspapers
industry and the developed technology in new media industry, once negative information
about certain companies and their brands is disclosed, it is quickly and widely prevalent
in the marketplace. Such negative information about companies can be devastating,
consequently resulting in major losses of revenue and market share. Also it has negative effects on how consumers perceive a company and its brands. Furthermore, negative
information becomes an important factor for consumers’ buying behavior (Khorami,
1990) because it is harmful to advertisers’ brand image.
As the Wal-Mart case showed, companies and their brands can be seriouslythreatened by negative publicity. With the growth of the television and newspapersindustry and the developed technology in new media industry, once negative informationabout certain companies and their brands is disclosed, it is quickly and widely prevalentin the marketplace. Such negative information about companies can be devastating,consequently resulting in major losses of revenue and market share. Also it has negative effects on how consumers perceive a company and its brands. Furthermore, negativeinformation becomes an important factor for consumers’ buying behavior (Khorami,1990) because it is harmful to advertisers’ brand image.
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