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2016 | Book

Managing Negative Word-of-Mouth on Social Media Platforms

The Effect of Hotel Management Responses on Observers’ Purchase Intention


About this book

Ines Nee makes important key contributions to service recovery research by analyzing the effect of management response content towards negative online customer reviews on the observer’s purchase intention. This study is the first to provide a conceptual basis of observers’ behavioral reactions towards organizational complaint handling in the context of social media and to empirically test the effect of the two most resource-intensive response options of compensation and explanation. With the help of a profound experimental design, the author detects strategies on how hotel companies should respond towards negative online customer reviews in order to increase the observer’s purchase intention and the hotel company’s return on complaint management.

Table of Contents

Relevance of managing online customer reviews
The development of social media has changed consumer behavior. In particular, it has transformed the way individuals interact, the way they search for information, and consequently how these processes influence their purchase intention. Apart from organizations’ ability to communicate to the public at low costs, consumers have the possibility to communicate their thoughts, experiences and opinions to a global audience accessible through social media.
Ines Nee
Theoretical foundations
The previous chapter outlined the relevance of managing negative online customer reviews in the hotel industry, taking the perspective of the observer. As mentioned before, these observers embody potential customers who read online customer reviews in order to make informed purchase decisions. In order to understand how observers react towards management responses, this chapter analyzes the buying decision process in the hotel industry and its changes since the development of Web 2.0.
Ines Nee
Empirical model validation and hypotheses testing
The research model, which has been established in chapter B, represents the foundation for the empirical study and will be empirically validated in this chapter. As a research method, an experimental analysis was chosen. Since experimental designs are complex and require intensive consideration before and during the actual experiment, chapter C 1 and C 2 elaborate on the requirements for an adequate conceptualization of experimental analysis and the actual conceptualization of the experiment regarding the research model, respectively.
Ines Nee
Conclusion, reflection and outlook
The diffusion of negative eWOM is often referred to as “complaining to the masses” since e-complaints can be observed by the whole internet community and thus affect potential customers’ purchase decisions. User-generated platforms have reacted to this and provide organizations with the opportunity to respond to online customer reviews. TripAdvisor, for example, notifies hotel companies as soon as an online review has been posted to their hotel and encourages hotel companies to answer below this customer review.
Ines Nee
Managing Negative Word-of-Mouth on Social Media Platforms
Ines Nee
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