All publicity is good publicity — if no one has ever heard of you.
Alan Sorensen, an economics professor at Stanford, looked at book reviews featured in The New York Times. He determined that, even when reviews were negative, previously unknown authors saw a one-third bump in sales.
Sorensen believes his findings can be applied beyond authors to all small businesses fighting to make names for themselves.
Negative PR is only helpful for small shops though. Big brands can be harmed by bad news, he says. Just take a look at Toyota’s tarnished brand after all of their recalls, or how stock prices dip when companies receive negative press.
“One reason is that, for lesser-known brands, negative perceptions fade more quickly in consumers’ minds than their general awareness of the product,” The Economist writes. “With established brands, on the other hand, the whiff of bad publicity lingers longer.”
For more on this study, head over to The Economist >>
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