Ironic effects of online customer care icoria 2010

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Ironic effects of online customer care. Presented at 9th International Conference on Research in Advertising ICORIA, June 25/26 2010, Madrid, Spain

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Ironic effects of online customer care icoria 2010

  1. 1. The ironic effects of organizational responses to negative online consumer reviews Peter Kerkhof Sonja Utz Camiel Beukeboom VU University Amsterdam Dept. of Communication Science 9th International Conference on Research in Advertising ICORIA, June 25/26 2010 Madrid, Spain
  2. 2. The rise of social media• 2003: No Facebook, no Twitter, no Linkedin, no Hyves• 2009: • Hyves 10.000.000 members in the Netherlands • Facebook: 4000.000.000 members, 600.000 new members, 60.000.000 use mobile Facebook • Linkedin: 53.000.000 members, 1 new member each second (86.000 daily) • 75.000.000 members on Twitter, 800.000 tweets per hour
  3. 3. Brands in social media• 19% of all tweets is brand related• 20% of all brand related tweets is evaluative – 55% positive, 33% negative Source: Jansen et al., 2009
  4. 4. Brands in social media
  5. 5. Brands in social media
  6. 6. Brands in social media
  7. 7. Brands in social media
  8. 8. The effects of consumer generated content • Productevaluations • Sales • Brand awareness • Reputation • Trust
  9. 9. Brands have started to respondTop 100 Dutch brands (2009): - 35 present in social media - mainly Twitter & Hyves
  10. 10. Brands have started to respond Online reputation management: - Monitoring - Adding content - Starting brand communities - Influencing the influencers - Responding to online complaint & questions
  11. 11. Brands have started to respond
  12. 12. Brands have started to respond
  13. 13. Brands have started to respond
  14. 14. A new kind of brand communication• Interpersonal• Computer-mediated• Public• Shared• On consumers’ territory
  15. 15. A new kind of brand communication• Customer care• Marketing• PR• Sales• Product development
  16. 16. Our research• Audience effects of responding to online complaints• No response vs. .... – Apologies vs. denial – Informal (vs. formal) responses – Empathic reactions – .....• Source effects
  17. 17. Our research• Dependent variables – Credibility (competence, integrity) – Product evaluations – Review(er) credibility – Communicated customer commitment – Conversational human voice – Underdog effect
  18. 18. Design ComplaintApologies Denial No response Formal Formal Informal Informal
  19. 19. Study 1• Online experiments• n = 20 – 25 per cell• Apologies vs. denial vs.no response• Dependent variables: evaluation of brand, review(er),• Moderator: prior brand involvement
  20. 20. Study 1
  21. 21. Study 1
  22. 22. Study 1
  23. 23. Results
  24. 24. Results
  25. 25. Results• Study 1: • online customer care backfires • organizational competence reviewer competence • • severity of complaint • especially (but not only) •when responsibility is denied •among brand involved customers
  26. 26. Study 2: Effects of informal vs. formal responses- 2 (formal vs. informal) x 2 (apologies vs. financial compensation) design + control
  27. 27. Results Study 2• Cognitive responses• Communicated relational commitment• Conversational voice• Fairness• Underdog effect
  28. 28. Positive effects of informal responses Cognitive responses (% positive) 60.0% 40.0% 20.0% 0.0%
  29. 29. Study 3- Replicates effects of informal reactions- Moderation by company size
  30. 30. Conclusions- be careful how to respond tobrand mentions in social media - be informal - apologize when necessary- is not responding still anoption?

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