When companies get caught: The effect of consumers discovering undesirable firm engagement online

We report on the findings of an exploratory set of experiments designed to test the effect of negative firm actions online. Findings point to firms suffering a loss of consumer attitude toward the brand when legal action is threatened against the creator of a consumer generator advertisement. Similarly, consumers also lowered their attitude toward a brand when confronted with information suggesting that a brand was linked to secretly posting “consumer” advertisements online. Implications for academics and brand managers are discussed.