The Effects of Comparative Processing and Mitigating Information on Customer Choice of a Brand with Negative Attributes

As consumers, we hear negative news stories about companies and also hear positive information about the benefits of those companies' products. How does this mixture of information influence purchases? Firms would benefit from being able to understand how consumers process the information gained from news sources and knowing how these stories impact purchase patterns. This research examined customers who have learned negative information about a company to see how comparative processing of information impacts product choice. In comparative processing, individuals give an evaluation on one object based on how it compares to suitable alternative options. This is different than selective processing, in which individuals instead make judgments based on an object's own features while ignoring other options. These results provide some insight as to what managers can do to help reduce the negative impact of negative of news stories. Most obviously, firms can release mitigating information that helps reduce the negative impact of these stories. Since there was a main effect for the presence of mitigating information on attitude towards the brand, providing this type of information will help improve consumer attitude.