The impact of negative rumors on consumers’ behaviors

Type :

Presentation

Pages :

13 pages

Format :

.doc

Published date :

01/16/2009

Category :

Business & market

Sub category :

Marketing

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Summary :

Introduction.
Meaning of the word rumor.
1. Definition and the main characteristics of the word.
Reasons why rumors start and develop.
1. Origin of the word.
2. Transmission and expansion.
3. Previous examples.
The impact of negative information on brands images and consumers perceptions.
1. Literature review.
2. The roles of moderators.
The impact of firms' reaction on consumers' behaviours.
1. Strengths, weaknesses and gaps.
Methodology.
1. Internal validity.
2. Sample.
Experiments one and two.
Appendixes.
References.

Abstract

Mac Donald's has been one of the most famous victim of negative rumors, with the "wormburgers' scare" (Newsweek, 1977). "Wormburgers" are hamburgers made with worms-based steak. In 1977, an astonishing rumor took birth in the United States, blaming the famous hamburger firm to cultivate fields of worms to make its products. As amazing as it might be, the rumor was trust and massively expanded, reaching a peak in the general "decredibilization" of all fast-foods channels. Mac Donald's has been constrained to make an audiovisual denial, explaining by the absurd that such a worms' culture would have been an economical disaster. And despite this scandal, the success of Mac Donald's seems to be everlasting. This example shows that it is possible to overcome the negative effects of rumors. It is all the more important for companies to find out those solutions as the time we live through is particularly sensitive to rumors development. Indeed, we have inherited the consequences of the Internet bubble burst and the post Enron period. In this transition stage, individuals suffer from a crisis of trust towards companies and brands. Media have also lost some credibility. So, which or who are the new trustful communicators? Individuals encourage mutual communication, instead of letting the intervention of media or other communication polluters: thus, power of word-of-mouth and preponderance of potential rumors are increasing.