Conventional wisdom in marketing emphasizes the detrimental effects of negative online reviews for brands. An important question is whether some firms could more effectively manage negative reviews to increase brand preference and improve outcomes. To address the question, this research examines how customers respond to online reviews of identity-relevant brands in particular, which have been overlooked in the online reviews literature. Eight studies (field data and experiments featuring consequential and hypothetical behaviors) show that negative online reviews may not be so detrimental for identity-relevant brands, especially when those reviews originate from socially distant (vs. socially close) reviewers. This occurs because a negative review of an identity-relevant brand can pose a threat to a customer's identity, prompting the customer to strengthen their relationship with the identity-relevant brand. To document the underlying process, the authors show that this effect does not emerge when the review is positive or the brand is identity-irrelevant. Importantly, the authors identify circumstances when negative reviews can actually produce positive outcomes (higher preference) for identity-relevant brands over no reviews or even positive reviews. By demonstrating the upside of negative reviews for identity-relevant brands, the findings have important implications for marketing theory and practice.
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