A new study in the Journal of Marketing shows that the design of websites used for buying health insurance combined with high-quality big data can produce big savings for consumers. When health insurance products are ordered such that the best options for the consumer appear first in the presented list, this strongly improves consumers' decisions. If the list is also partitioned to show a small number of options first (with an easy option to click through to see all options), this further improves consumers' decisions. However, importantly, if the best options are not at the top of the list, partitioning can harm consumer decision quality.

1. From: Herhausen, Ludwig, Grewal, Wulf, and Schoegel (2019)
Detecting, Preventing, and Mitigating Online
Firestorms in Brand Communities
More than 65 million firms leverage online brand communities
to connect with customers and increase online reputation,
brand patronage, and customer spending. However, online
communities are vulnerable to online firestorms, or negative
electronic Word of Mouth (eWOM), that receives substantial
support from other customers in a short period of time.

2. From: Herhausen, Ludwig, Grewal, Wulf, and Schoegel (2019)
1. How can firms detect potential online firestorms (“detection”)?
2. How can firms prevent potential online firestorms (“prevention”)?
3. How can firms mitigate evolved online firestorms (“mitigation”)?
time
Impact
User Post as Trigger
of Firestorm
Research Questions

3. From: Herhausen, Ludwig, Grewal, Wulf, and Schoegel (2019)
Detection: WHAT is being said by WHOM is contagious
The senders’ structural ties, high emotional arousal, and similarity to the online brand
community drive the virality of negative eWOM.

4. From: Herhausen, Ludwig, Grewal, Wulf, and Schoegel (2019)
Prevention: Responses by firms to recover and regulate
Engaging with empathy and disengaging with an apology or channel change limits the
virality of negative eWOM while providing a compensation further “fuels the fire”.

5. From: Herhausen, Ludwig, Grewal, Wulf, and Schoegel (2019)
Mitigation: Responses should be tailored

6. From: Herhausen, Ludwig, Grewal, Wulf, and Schoegel (2019)
Mitigation: Responses should vary over time
Explanation Empathy Compensation