Negative news positive effect: the change of consumers' cognition process

Development of live shopping has introduced a new form of celebrity endorsement. This study examines the impact of negative news related to streamers on viewers' purchasing behaviour during live streaming, considering different types of negative news. Drawing on research related to celebrity endorsement and information dissemination, this study presents the results from one natural experiment and four lab experiments. The findings suggest that negative news about streamers, as well as their responses to such news, positively influence viewers' purchasing behaviour during live streaming, which is mediated by their visit to the live streaming. Furthermore, the study reveals that negative news related to streamers' personal behaviour has a more positive impact than negative news related to the product they are selling. The positive effect of response to negative news is weakened when the response seems to protect the wrongdoers. This study contributes to the development of endorsement theory, retests the model of the endorser effect, and expands the literature about celebrity scandals. Additionally, the findings provide practical suggestions for retailers and streamers who are dealing with negative news.