Techno Blender
Digitally Yours.

Trust in brands may be eroded as awareness of misinformation increases, academics conclude

0 25


Credit: CC0 Public Domain

Academics from Cardiff and Stanford Universities reviewed current marketing research focused on the consequences of misinformation spread. “Between brand attacks and broader narratives: How direct and indirect misinformation erode consumer trust” is published in Current Opinion in Psychology.

The team distinguishes between direct and indirect misinformation. Forms of direct brand-related misinformation include fake news, where false information is intentionally distributed online and is designed to mimic the format of legitimate news sources, as well as fake reviews —where sellers are paid by companies to post favorable appraisals of products to the detriment of other companies.

The team concludes that when consumers are exposed to direct misinformation, this could exert influence over their decision-making, regardless of whether or not they believe it.

Even when exposed to indirect misinformation , when it is not related to brands, but linked to other issues or events, researchers say consumers may experience confusion, doubt, and a general sense of vulnerability to the external world which could affect their spending habits.

Dr. Giandomenico Di Domenico, a lecturer in marketing and strategy at Cardiff Business School, said, “The outcomes of recent political events have generated significant academic interest around the issue of misinformation spread, its drivers, and its consequences. The impact of this phenomenon extends beyond the political arena but our understanding of it on consumer behavior is in the early stages.

“We saw New Balance face considerable backlash on social media after misinformation circulated that the brand was closely aligned with far-right movements. Similarly, Eli Lilly’s stock price fell by 4.37 % after a fake Twitter account impersonating the pharmaceutical brand falsely announced that insulin would be given away for free.

“As consumers become increasingly aware of the pervasiveness and dynamics of misinformation, they may develop mistrust mindsets and mental models that will impact their behavior. A greater understanding of the consequences of misinformation spread from a marketing perspective is therefore essential.”

More information:
Giandomenico Di Domenico et al, Between brand attacks and broader narratives: How direct and indirect misinformation erode consumer trust, Current Opinion in Psychology (2023). DOI: 10.1016/j.copsyc.2023.101716

Provided by
Cardiff University


Citation:
Trust in brands may be eroded as awareness of misinformation increases, academics conclude (2023, December 7)
retrieved 7 December 2023
from https://phys.org/news/2023-12-brands-eroded-awareness-misinformation-academics.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.




online shopping
Credit: CC0 Public Domain

Academics from Cardiff and Stanford Universities reviewed current marketing research focused on the consequences of misinformation spread. “Between brand attacks and broader narratives: How direct and indirect misinformation erode consumer trust” is published in Current Opinion in Psychology.

The team distinguishes between direct and indirect misinformation. Forms of direct brand-related misinformation include fake news, where false information is intentionally distributed online and is designed to mimic the format of legitimate news sources, as well as fake reviews —where sellers are paid by companies to post favorable appraisals of products to the detriment of other companies.

The team concludes that when consumers are exposed to direct misinformation, this could exert influence over their decision-making, regardless of whether or not they believe it.

Even when exposed to indirect misinformation , when it is not related to brands, but linked to other issues or events, researchers say consumers may experience confusion, doubt, and a general sense of vulnerability to the external world which could affect their spending habits.

Dr. Giandomenico Di Domenico, a lecturer in marketing and strategy at Cardiff Business School, said, “The outcomes of recent political events have generated significant academic interest around the issue of misinformation spread, its drivers, and its consequences. The impact of this phenomenon extends beyond the political arena but our understanding of it on consumer behavior is in the early stages.

“We saw New Balance face considerable backlash on social media after misinformation circulated that the brand was closely aligned with far-right movements. Similarly, Eli Lilly’s stock price fell by 4.37 % after a fake Twitter account impersonating the pharmaceutical brand falsely announced that insulin would be given away for free.

“As consumers become increasingly aware of the pervasiveness and dynamics of misinformation, they may develop mistrust mindsets and mental models that will impact their behavior. A greater understanding of the consequences of misinformation spread from a marketing perspective is therefore essential.”

More information:
Giandomenico Di Domenico et al, Between brand attacks and broader narratives: How direct and indirect misinformation erode consumer trust, Current Opinion in Psychology (2023). DOI: 10.1016/j.copsyc.2023.101716

Provided by
Cardiff University


Citation:
Trust in brands may be eroded as awareness of misinformation increases, academics conclude (2023, December 7)
retrieved 7 December 2023
from https://phys.org/news/2023-12-brands-eroded-awareness-misinformation-academics.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment