Published by:
Harvard Business Publishing
Length: 6 pages
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https://casecent.re/p/161552
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Abstract
Research has shown that firms tend to suffer financially when a celebrity endorser becomes mired in a scandal, but the literature to date has offered little practical guidance. A new study, involving 128 incidents that generated negative publicity, finds that firms taking no action after an event - the path most follow - generally do poorly. Its authors also discovered a surprise: Companies that engage with a situation and handle it well don't just stanch the bleeding but come out ahead. The study identifies four factors that play a significant role in public reaction to celebrity misbehavior and provides several clear takeaways for endorsers and firms alike.
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Abstract
Research has shown that firms tend to suffer financially when a celebrity endorser becomes mired in a scandal, but the literature to date has offered little practical guidance. A new study, involving 128 incidents that generated negative publicity, finds that firms taking no action after an event - the path most follow - generally do poorly. Its authors also discovered a surprise: Companies that engage with a situation and handle it well don't just stanch the bleeding but come out ahead. The study identifies four factors that play a significant role in public reaction to celebrity misbehavior and provides several clear takeaways for endorsers and firms alike.