Abstract
Consumers use test ratings to inform their buying decisions and enhance their well‐being. This study considers whether and how poor test ratings might induce anti‐consumption behaviors, out of fear of poor product performance. In contrast with previous research, the focus for this study is not intrinsic reasons for anti‐consumption but rather actual purchasing, or non‐purchasing, behavior. With panel data representing 30,000 households, the authors show that the market shares of national brands and private labels considerably decline after the publication of poor test ratings, suggesting high customer churn and anti‐consumption behavior. The use of price promotions for national brands also declines, leading to increasing average paid prices. Among private labels, though, poor test ratings affect the use of price promotions and paid prices only to a small extent. These findings in turn suggest implications for manufacturers, retailers, consumers, and scholars.
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