Sung, Yoon HiSims, John2022-05-062022-05-062022-05-13https://hdl.handle.net/11244/335581Branded rumors are not new in the realm of advertising scholarship; however, many past studies have been conducted with the assumption that rumors are inherently detrimental to their related brand. The present study aimed to break this assumption by examining and legitimizing the concept of positive branded rumors. These rumors give consumers information about a new product prior to its official announcement and thus consumers are likely to develop their attitudes toward the product prematurely. Given that positive branded rumors are primarily spread through electronic word of mouth (eWOM) on social media platforms, this study examined the effects on these rumors in light of eWOM scholarship. In addition, consumers’ responses toward positive branded rumors are expected to be influenced by a brand’s eventual preannouncement that either confirms or disconfirms the rumors. Finally, studies of eWOM have indicated consumer response to eWOM is influenced by initial awareness of the related product or product line. Therefore, the dynamics among consumer rumor eWOM valence, brand preannouncement type, and consumer initial awareness were examined. A 2 (eWOM valence: positive vs. negative) x 2 (preannouncement type: confirmation vs. disconfirmation) between-subject experimental design was employed. Both eWOM valence and preannouncement type were manipulated, whereas initial awareness was measured. By using simulated Twitter posts discussing a positive branded rumor and an official preannouncement, a total of four conditions were created: 1) positive eWOM valence – confirming preannouncement, 2) positive eWOM valence – disconfirming preannouncement, 3) negative eWOM valence – confirming preannouncement, and 4) negative eWOM valence – disconfirming preannouncement. Through an online experiment, participants were randomly exposed to one of the four conditions. Questions regarding participants’ attitudes toward the subject product and brand, emotional reactions toward the preannouncement, and purchase intent of the product in the preannouncement were asked. The results of this experiment revealed rumor eWOM valence to be influential on its own in developing brand attitudes. Positive eWOM led to more positive brand attitudes, compared to negative eWOM. Additionally, eWOM valence and preannouncement type were found to interact in the development of product and brand attitudes. The results showed negative eWOM to dampen participants’ attitudes even when the rumored product was confirmed. Additionally, the experiment revealed a backfire from disconfirming a rumor when participants had previously been exposed to positive eWOM about that rumor. No significant results were found for any three-way interaction between eWOM valence, preannouncement type, and initial awareness. These results hold implications for future scholarship of branded rumors, particularly in further legitimizing the concept of positive branded rumors as well as the unique effects of those rumors. Additionally, these results reveal a need to further explore theoretical lenses through which to view this phenomenon as the effects of rumor eWOM found here do not fully match the predictions of other studies of general eWOM. Finally, this study poses implications for brand practitioners by revealing a need to know and understand online rumor discourse around their brand to develop effective and appropriate rumor response strategies.branded rumorspreannouncementseWOMsocial media