Online platforms empower consumers to share their negative experiences with a broad public of fellow consumers on the Internet. Complaints expressed as negative electronic word of mouth (nWOM) have a great potential to damage companies accused in these publicly made complaints. This study investigates upon the most effective means for companies to counter nWOM by means of webcare. The results show that a loss of satisfaction and trust as well as negative eWOM behaviour after a service failure can be positively influenced depending on the content of a webcare response (accommodative vs. notice). These effects appear to be mediated by consumers’ expectations. Furthermore, although webcare communication strategy (proactive vs. reactive) does not influence satisfaction, trust and negative eWOM behaviour of senders of nWOM, the results show an influence of webcare communication strategy on positive eWOM behaviour. The findings of this study are discussed in the light of the potential of webcare to serve as a tool for online complaint management.
Table of Contents
Motivational Drivers of nWOM
Theory
The Effects of Webcare Responses
The Role of Proactive vs. Reactive Webcare
Method
Design & Participants
Stimuli and Procedure
Measures
Control Variables and Manipulation Check
Results
Manipulation and Cofound Check
Effectiveness of Webcare Response Strategies
The Role of Webcare Communication Strategies
The role of Customer Expectation
Customer Expectation as a Mediator
Discussion and Conclusion
Theoretical and Practical Implications
Limitations and Future Research
Research Objectives and Key Topics
This thesis investigates the most effective strategies for companies to counteract negative electronic word-of-mouth (nWOM) through webcare. It examines how different response strategies (accommodative vs. notice) and communication strategies (proactive vs. reactive) influence consumer satisfaction, trust, and eWOM behavior, while identifying consumer expectations as a mediating mechanism.
- The impact of accommodative vs. simple notice webcare responses on consumer sentiment.
- The role of proactive versus reactive communication strategies in managing online complaints.
- Customer expectations as a mediator in the effectiveness of webcare interventions.
- Transformation of negative eWOM into positive eWOM through effective complaint handling.
- Theoretical and practical guidelines for corporate webcare policies.
Excerpt from the Book
Motivational Drivers of nWOM
As the Internet enables consumers more and more to voice their experiences with products and services on online platforms and social media sites, an increasing number of fellow consumers is exposed to such online reviews and has the opportunity to also share their consumption experiences. The result of such intense consumption-related dialogues is a wealth of eWOM that can range from very positive to very negative experiences (Willemsen, Neijens & Bronner, 2013). The literature shows that such articulations of eWOM have a strong effect on the consumers’ decision-making processes, especially when expressed as nWOM (Basuroy, Chatterjee, & Ravid, 2003; Sen & Lerman, 2007). According to the diagnosticity theory, consumers find negative information about a product or service to be more useful and informative than positive information. NWOM helps consumers to categorise and identify reliable reviews, since pWOM is commonly accessible for most products and services (Lee & Cranage, 2012).
Given the potential to damage companies’ sales and reputation, nWOM has therefore become a powerful tool for consumers to express their consumption opinions and experiences (Sundaram & Webster, 1999). The literature identified three main motives that may underlie consumers’ (online) complaint behaviour, namely venting negative feelings, concern for other consumers, and empowerment (Hennig-Thurau et al., 2004).
The need to vent a negative feeling caused by dissatisfying experiences is found to be one of the most common motivations for consumer complaint behaviour. By venting, consumers can regulate these negative feelings and reduce their stress related to the dissatisfying transaction (Hong & Lee, 2005).
A second important motive for nWOM identified by the literature is the concern for others (Sundaram, Mitra & Webster, 1998). This motive is closely related to the concept of altruism. Consumers driven by an altruistic motive primarily want to prevent potential consumers from the negative experiences they encountered themselves (Hennig-Thurau et al., 2004; Sundaram et al., 1998).
Summary of Chapters
Motivational Drivers of nWOM: This chapter introduces the theoretical background regarding why consumers post negative online reviews, highlighting motives like venting, altruism, and empowerment.
Theory: This section details the purposes of webcare and proposes hypotheses regarding how response content and strategy affect consumer relationship and reputation management.
The Role of Proactive vs. Reactive Webcare: This chapter analyzes how the timing and initiative of a company's response influence consumer evaluations of the brand.
Method: The study design is explained, detailing a scenario-based experiment involving 145 participants exposed to different webcare conditions for a fictional restaurant.
Control Variables and Manipulation Check: This chapter ensures the reliability of the experiment by controlling for variables like failure severity and verifying that participants perceived the intended communication strategies.
Results: This chapter presents the statistical analysis of the experimental data, testing the hypotheses concerning consumer satisfaction, trust, and eWOM behavior.
Discussion and Conclusion: The findings are synthesized, discussing theoretical contributions, practical implications for companies, and limitations for future research.
Keywords
Webcare, nWOM, electronic word-of-mouth, customer satisfaction, trust, service failure, complaint management, accommodative response, reactive strategy, proactive strategy, consumer expectations, online reputation, eWOM behavior, service recovery, empowerment.
Frequently Asked Questions
What is the core focus of this research?
The study focuses on how companies can effectively use webcare to manage and counteract negative electronic word-of-mouth (nWOM) on online platforms.
Which central topics are addressed in the study?
The study investigates the impact of webcare response content (accommodative vs. notice) and communication strategies (proactive vs. reactive) on customer attitudes.
What is the primary objective of this thesis?
The aim is to identify which webcare response types generate the most positive responses from complainants, specifically regarding satisfaction, trust, and future eWOM behavior.
Which scientific method was applied?
The author conducted a scenario-based experiment with a 2x2 design, surveying 145 respondents who evaluated fictional restaurant service failures and webcare responses.
What does the main body of the work cover?
The main body covers the theoretical background of nWOM, the experimental methodology, statistical analysis of results, and a comprehensive discussion on the implications for businesses.
Which keywords best characterize this work?
Key terms include webcare, nWOM, consumer trust, service recovery, and complaint management strategy.
How does "accommodative" content differ from a "notice"?
An accommodative response includes an apology and concrete redress (like a coupon), whereas a notice simply acknowledges the complaint without offering compensation or psychological support.
Did the proactive strategy significantly outperform the reactive one?
The results indicated that while communication strategy did not significantly affect overall satisfaction or trust, a proactive approach increased the likelihood of positive eWOM behavior in some cases.
Does consumer expectation influence the effectiveness of webcare?
Yes, the study found that consumer expectations serve as a partial mediator, meaning the content of a response is particularly influential when a customer has high expectations for a resolution.
- Quote paper
- Anika Kunz (Author), 2013, Complaint Management Unlocked. The effects of different variations of reactive versus proactive webcare on consumer responses and the mediating effect of customer expectations, Munich, GRIN Verlag, https://www.grin.com/document/267580
