Management responses to negative online customer reviews : the effect of compensation and explanation on the observer’s purchase intention: An abstract

Rico Piehler*, Michael Schade, Ines Nee, Christoph Burmann

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference abstractpeer-review

Abstract

Negative online customer reviews affect potential customers’ purchase decisions. Observers represent potential customers who read online customer reviews to make informed purchase decisions. Consequently, there is a need to respond to negative online customer reviews. This study investigates the effect of compensation and explanation on observer’s purchase intention. Applying an experimental between-subjects design, the results of a study with 381 participants show that a monetary compensation combined with an explanation has the greatest effect on the observer’s purchase intention. More importantly, a monetary compensation and an explanation alone each have the same positive effect on the observer’s purchase intention. As compensating monetarily implies significant financial losses, organizations are advised to provide an explanation in cases of resource constraints.
Original languageEnglish
Title of host publicationBack to the future : using marketing basics to provide customer value
Subtitle of host publicationProceedings of the 2017 Academy of Marketing Science (AMS) Annual Conference
EditorsNina Krey, Patricia Rossi
Place of PublicationCham
PublisherSpringer, Springer Nature
Pages571
Number of pages1
ISBN (Electronic)9783319660233
ISBN (Print)9783319660226
DOIs
Publication statusPublished - 2018
Externally publishedYes
Event2017 Academy of Marketing Science (AMS) Annual Conference - Coronado, United States
Duration: 24 May 201726 May 2017

Publication series

NameDevelopments in Marketing Science: Proceedings of the Academy of Marketing Science
PublisherSpringer Nature
ISSN (Print)2363-6165
ISSN (Electronic)2363-6173

Conference

Conference2017 Academy of Marketing Science (AMS) Annual Conference
CountryUnited States
CityCoronado
Period24/05/1726/05/17

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