Previous research indicates that consumers may resist negative publicity when they perceive a firm to be socially responsible (Klein & Dawar, 2004; Chernev & Blair,2015). However, other research shows corporate social responsibility (CSR) may boomerang the damage of negative publicity (Sohn & Lariscy,2012). Firms may participate in CSR and it is important for market practitioners and researchers to understand the role of different types of CSR in minimizing the impact of negative publicity. This research aims to examine the moderating role of two types of CSR in the effect of negative publicity on consumer responses. An experiment with a 2 (negative publicity type: ability-related vs. morality-related) x 2 (CSR type: philanthropic donation vs. employee wellbeing) between-subjects factorial design was conducted in a major city of China. In the morality-related negative publicity and employee wellbeing condition, the participants were shown with employee wellbeing materials and a morality-related negatively publicized article about a fictitious hotel. Similar arrangements were setup for other different conditions. Then, consumer responses such as firm evaluation and patronage intention were measured. Results of two-way ANOVA revealed a significant interaction effect. The findings indicate that consumers’ patronage intention is lower when a morality-related negative publicity has happened to a firm having “philanthropic donation” type of CSR, and also when an ability-related negative publicity has happened to a firm having “employee wellbeing” type of CSR. Managerial

This study aims to examine the impact of endorser ethnicity and portrayal on consumers’ attitude toward luxury ad and brand. In addition, the moderating role of individual’s appearance self-esteem is examined. In the ads of luxury brands in China, it is common to have two types of endorser ethnicity (i.e., international vs. local) and two types of endorser portrayal (i.e., sexy vs. smart). Endorser ethnicity in an ad may influence consumers’ self-referencing behavior which refers to an individual’s tendency to encode communication information differently depending on the level on which the self is implicated in the information (Rogers et al., 1997). Asian consumers’ self-reference level is found to be higher when they are exposed to ads featuring an Asian model than a Western model (Martin et al., 2004). In other words, if an international luxury brand adopts a localization advertising strategy in China by using a Chinese endorser, the local consumers are more likely to generate a higher level of self-reference.

This study aims to investigate the effect of word-of-mouth on the purchase of genuine and counterfeit luxury brands. It also examines the roles of attitude functions and social norm in the relationship between word-of-mouth communication and consumers’ luxury brand evaluation. A 2 (information source: advertising vs. word-of-mouth) × 2 (luxury brand: genunie vs. counterfeit) between-subjects experimental design was used to collect the data. A total of 153 adult consumers from Shanghai, China were recruited and randomly assigned to one of the four experimental conditions. Prior to the conduction of the actual experiment, a pretest of 30 respondents was conducted to determine the brands and scenarios selected for the experiments. Attitude function (social-adjustive function or value-expressive function) is measured by a self-monitoring scale. Social norm, luxury brand evaluations on genuine and counterfeit luxury brands were measured. MANOVA and ANOVA were performed to examine the proposed hypotheses. Results indicated that purchase intention for counterfeit luxury brand was moderated by subjective norm. Word-of-mouth increased the subjective norm related to the disapproval of counterfeits, compared to traditional advertising. Subjective norm was found to strongly influence consumers’ counterfeit luxury brand evaluation. The relationship between subjective norm and counterfeit consumption was positively significant. The moderating effects of self-monitoring and subjective norm on consumers’ evaluations and consumption for counterfeit luxury brands were found to significant. In short, the findings support the proposed hypotheses and showed that positive word-of-mouth was an efficient way to enhance consumers’ purchase intentions for genuine luxury brands, and also an effective means to decrease purchase intentions for counterfeit luxury brands. The results reveal that social-adjustive function and value-expressive function served by luxury brand consumption can be increased by positive word-of-mouth. Furthermore, higher levels of social-adjustive function and value-expressive function served by publicly consumed product (vs. privately consumed product) are found, indicating that product categories also affect the attitude functions served by luxury brand consumption. Managerial recommendations are provided to the marketing managers for luxury brands.

Negative publicity can be defined as negative information about a product, a service, a brand, an organization or an individual that is circulated through mass media such as print media and broadcast media (Dean, 2004; O'Guinn, Allen, & Semenik, 2011). Indeed, there has been a growing interest in the marketing literature concerning the effects of negative brand publicity on consumer perceptions and evaluations (Cleeren, van Heerde, & Dekimpe, 2013; Dills & Hernández Julián, 2012; Pullig, Netemeyer & Biswas, 2006; Thirumalai & Sinha, 2011). Negatively publicized instances such as defective products/services or unethical business practices are likely to impair a brand’s image and its equity. However, previous literature has mainly focused on the effect of performance-related negative publicity on consumer responses and there are limited studies about the effect of value- or ethics-related negative publicity. Owing to the inherent characteristics of inseparability and intangibility, hospitality managers need to pay particular attention to ethical issues and the detrimental impact of value-related negative publicity. This study aims to examine the impact of negative brand publicity on hotel consumers for two types of negative publicity (namely, performance-related and value-related). A content analysis and a consumer survey were conducted in China so as to investigate the hotel recovery strategy and consumer responses toward negative publicity. The content analysis was performed on two largest local daily newspapers in China. It showed that the occurrence of value-related negative publicity (e.g., not keeping promises, or dishonesty) was much greater than performance-related negative publicity (e.g., untidy room, or equipment malfunction) in China’s hotel industry. Compensations appeared to be the most common method for hotel responses toward the two types of negative publicity. The consumer survey showed that consumer responses such as hotel evaluations and patronage intentions were negatively affected by negative brand publicity. Female consumers were found to be more sensitive to unethical issues than male consumers. In other words, females were more negatively affected by value-related publicity than performance-related publicity. Managerial implications for hospitality managers are discussed.