Gulping the Poison: How Webcare Attributes Reduce Damages to Brands Caused by Negative Reviews

Negative reviews written by unsatisfied consumers can significantly erode the image of a brand. Therefore, marketers regularly respond to these reviews through written messages posted on online channels: a practice known as webcare. The present article seeks to explore whether selected webcare attributes, such as strength, sidedness, and ownership, have any effects on consumers’ forgiveness of the service failures caused by transgressing firms. Furthermore, the effects of consumer forgiveness on satisfaction with webcare, brand attitudes, and purchase intentions are also investigated. The article examines these relationships in the context of a fine dining restaurant (Study 1) and a hotel (Study 2). The results reveal that webcare attributes play a salient role in achieving consumer forgiveness. Furthermore, the studies also reveal that consumer forgiveness leads to satisfaction with webcare and improved brand attitudes and purchase intentions.     

Do cultural orientations moderate the effect of online review features on review helpfulness? A case study of online movie reviews

The perceived helpfulness of online product reviews plays a critical role in consumers’ decisions in e-commerce. In this context, based on the literature on information processing and cultural effects, this study explored the role of review features in the perceived helpfulness of online movie reviews. A cross-cultural investigation (i.e., China cf. the United States (US)) was employed to identify high-vs. low-context cultural orientation and uncertain avoidance orientation as moderators. The results reveal that review length, timeliness, title sentiment, and emotional expressions are significant predictors of helpfulness for consumer reviews in China and the US. In addition, cultural differences between the two countries, that is, high-vs. low-context culture and uncertainty avoidance, moderated the relationships between review length, timeliness, title sentiments, and review helpfulness.     

Personalized managerial response and negative inconsistent review helpfulness: The mediating effect of perceived response helpfulness

Understanding the effect of managerial response on online review management has attracted the attention of scholars in recent years. However, the effect of personalized managerial response on the negative inconsistent review is a lack of evidence. This study investigates how personalized managerial responses influence negative review helpfulness according to the various levels of review inconsistency and the underlying mechanism behind the effect. We adopted a secondary data analysis based on the TripAdvisor dataset and used an online experiment study to investigate the impact mechanism. Findings reveal that the personalized managerial response positively influences review helpfulness, review inconsistency (negative rating with positive textual sentiment) moderates the effect of personalized managerial response on review helpfulness, and perceived response helpfulness mediates the above relationships. More specifically, personalized managerial response to negative inconsistent reviews has a pronounced effect on consumers’ perception of response helpfulness and their evaluation of review helpfulness. This study improves the current understanding of managerial responses, and provides practical guidance for hoteliers, consumers, and travel websites.     

Consumers’ forgiveness after brand transgression: the effect of the firm’s corporate social responsibility and response

Abstract

In this article we examine the interplay between the severity of a brand transgression, consumers’ prior awareness of the firm’s corporate social responsibility (CSR) initiatives, and the firm’s response (apology vs. apologia) on the rates of forgiveness among consumers. Results of two experiments show that consumers’ prior awareness of the firm’s CSR initiatives significantly differentiates apologia from apology, with the effect of apology on consumer forgiveness being more apparent when brand transgression severity is mild. Results also show that consumer forgiveness mediates the effect of brand transgression severity, firm response, and consumer awareness on repurchase intentions. In this way, the study enables managers to determine whether or not an apology or apologia will be sufficient to solicit consumer forgiveness, using information about the levels of awareness of CSR among consumers.     

The Recipe for the Perfect Review?

Online product reviews, originally intended to reduce consumers’ pre-purchase search and evaluation costs, have become so numerous that they are now themselves a source for information overload. To help consumers find high-quality reviews faster, review rankings based on consumers’ evaluations of their helpfulness were introduced. But many reviews are never evaluated and never ranked. Moreover, current helpfulness-based systems provide little or no advice to reviewers on how to write more helpful reviews. Average review quality and consumer search costs could be much improved if these issues were solved. This requires identifying the determinants of review helpfulness, which we carry out based on an adaption of Wang and Strong’s well-known data quality framework. Our empirical analysis shows that review helpfulness is influenced not only by single-review features but also by contextual factors expressing review value relative to all available reviews. Reviews for experiential goods differ systematically from reviews for utilitarian goods. Our findings, based on 27,104 reviews from Amazon.com across six product categories, form the basis for estimating preliminary helpfulness scores for unrated reviews and for developing interactive, personalized review writing support tools.     

Facebook fan page: the effect of perceived socialness in consumer–brand communication

Facebook has become an important platform for a brand–consumer relationship channel. The current study investigates the influence of perceived socialness and its effect on consumers’ attitude toward brands. Participants (N = 404) were recruited in a large southeast university. A 2 (socialness: high vs. low)?×?2 (feedback control: high vs. low)?×?2 (brand image: high vs. low) between-subject design was conducted. The results of this study identified three important findings. First, high (vs. low) socialness elicited higher perceived relationship commitment, brand trust, and more favorable brand attitude. Second, the effect of socialness on brand attitude was moderated by brand image (positive vs. negative). Third, the mediation analysis showed that the effect of socialness (high vs. low) on brand attitude was fully mediated by perceived relationship commitment and brand trust.     

Born Unequal: A Study of the Helpfulness of User-Generated Product Reviews

Online user-generated product reviews have become an indispensible tool for consumers and thus for retailers who want to attract and retain consumers. Yet, relatively little is known about what causes consumers to find an online peer review helpful to their shopping tasks. Prior research examines mostly the effects of product reviews on consumer product attitude, product choice, and product sales. This paper, however, provides an analysis of the determinants of review helpfulness. In two studies, we examine the effects of review characteristics, product type, and reviewer characteristics on perceived review helpfulness. With data collected from a real online retailer, we provide empirical evidence to support our conceptual predictions. Specifically, both review valence and length have positive effects on review helpfulness, but the product type (i.e., experiential vs. utilitarian product) moderates these effects. Using content analysis of reviews, we develop a measure of expressed reviewer innovativeness (i.e., the predisposition toward new products as revealed in review content). A curvilinear relationship exists between expressed reviewer innovativeness and review helpfulness. These findings lead to pertinent managerial implications.     

Too good to be true: the role of online reviews’ features in probability to buy

Online consumer reviews are broadly believed to be a necessary and powerful marketing tool, and as such they have attracted considerable attention from both marketers and academics. However, previous research has not sufficiently focused on the effects of various review features on sales but rather used proxy measures such as consumers’ purchase intention or perceived helpfulness of reviews. Hence, the aim of this study was to investigate the effect of review valence and volume on actual sales. We use data from three different e-commerce websites and study light bulbs, women's athletic shoes, natural hair care products, and herbal vitamins. The results show that, contrary to popular belief, more positive ratings do not simply result in higher sales. We find that the effect can be nonlinear, where the probability of purchase increases with rating to about 4.2–4.5 stars, but then decreases. Also, although the majority of extant research suggests that larger numbers of reviews bring more positive outcomes, we show that it is not always the case.     

Consequences of consumer regret with online shopping

Negative online reviews can significantly hurt future sales. After impulsive decisions, consumers may feel regret and write negative online reviews. Two studies are conducted to understand the origin and consequences of negative reviews according to the review content and the responsibility for the mistake in the decision. The first study analyses the influence on the review creation of regret with the process and the outcome through structural equation modelling. For the second study, a 2 × 2 experimental design was conducted. This study analyses how different content in the review (regret with the process vs. regret with the outcome) and guilt of the error (the consumer vs. the seller) affects the perceived persuasiveness, usefulness and credibility of the information, and the intention to follow the advice. The results show that for generating negative reviews, it is the regret with the process coupled with the presence of regret with the outcome which ultimately leads to the intention to write negative reviews. However, the results of the second study show that reviews that criticize the outcome are more damaging than those that criticize the process. Furthermore, reviews that show regret in which the buyer is responsible affect readers more through the greater persuasion they generate.     

Customer forgiveness of unsatisfactory service: manifestations and antecedents

Previous research of service failures has focused on negative reactions such as retaliation, complaining, and switching behavior. This study is of customer forgiveness that reflects goodwill. Study 1, exploring manifestations of forgiveness in the service context, consisted of interviews with 52 customers. The results suggest that forgiveness is reflected in positive reframing, perspective taking, and tolerance. In Study 2, designed to explore the antecedents of forgiveness, respondents (N = 286, 55.4 % women) were presented with scenarios manipulating strength of relationship and blame, and measuring forgiveness. The results show that the effect of blame on the expected outcomes of forgiveness and loyalty intentions is stronger under strong customer-service provider relationships. Additionally, relationship strength has a stronger effect on forgiveness among women, even under high levels of blame. The results thus offer profiles for forgiving and unforgiving customers.     

Corporate social responsibility: Findings from the Chinese hospitality industry

The study investigates the impact of corporate social responsibility (CSR) on consumers’ attitudinal and behavioral responses, factors closely related to a firm's social and economic performance, using data from 451 customers of three hotels. We also test the universality of such impact across various consumer groups. Results show that CSR positively affects perceived corporate reputation and customer satisfaction, which in turn, significantly affect customer commitment and behavioral responses (i.e., loyalty intentions and word-of-mouth). Perhaps more importantly, the role of CSR is not universal across consumer groups. Particularly, consumer income seems to moderate the relationship between CSR and perceived reputation. Specifically, the positive effect of CSR on perceived corporate reputation is more salient among people with a higher income. Managerial implications are discussed.     

Examining impacts of negative reviews and purchase goals on consumer purchase decision

Extensive literature has studied the impact of positive online reviews on consumers’ purchase decisions. Research on the role of negative reviews in consumer price perception is heavily under-investigated. This study examines effects of negative reviews on consumer price perception and subsequent purchase behavior while considering the moderating effect of purchase goals. Results from two experiments show that the proportion of negative reviews has stronger negative impacts on purchase decision for consumers with a purchase goal than those without. This research contributes to growing knowledge about negative online reviews and consumer goal literature and offers practical implications for online retailers.     

The informational value of multi-attribute online consumer reviews: A text mining approach

In the digital age, customers use online reviews to minimize the risks associated with purchasing a product. Major online retailers help customers choose the right product by exposing reviews that received many “helpful” votes at the top of the review section. Given that reviews that have received the maximum helpfulness votes are considered more important in purchase decisions, understanding determinants of helpfulness votes offers clear benefits to online retailers and review platforms. This study focuses on the effect of review informativeness, which is measured by the number of attributes discussed in a review, and its interplay of review valence on customers' perception of review helpfulness. We applied a word-level bigram analysis to derive product attributes from review text and examined the influence of the number of attributes on the review's helpfulness votes. More importantly, we also suggested the moderating role of review valence. Estimation results of the Zero-inflated Poisson models on 21,125 reviews across 14 wireless earbuds indicated that as more attributes are discussed in a review, the more the review can earn helpfulness votes from customers. Furthermore, the positive association between the number of attributes and helpfulness was enhanced among negative reviews. This study contributes to customers' information processing literature and offers guidelines to online retailers in designing a better decision support system.     

Perceived helpfulness of eWOM: Emotions,fairness and rationality

Consumers use online reviews to help make informed purchase decisions. This paper extends existing research by examining how content of online reviews influences perceptions of helpfulness by demonstrating how different emotions can influence helpfulness of both product and service online reviews beyond a valence-based approach using cognitive appraisal theory and attribution theory. This research contributes to existing knowledge regarding the theory of information processing, attribution theory, and cognitive appraisal theory of emotions. Using findings from this study, practitioners can make review websites more user-friendly which will help readers avoid information overload and make more informed purchase decisions.     

Delight the experts,but never dissatisfy your customers! A multi-category study on the effects of online review source on intention to buy a new product

Online reviews are a pervasive form of electronic word-of-mouth (eWOM) that potentially accelerate—or slow down—the diffusion of recently launched services in the marketplace. While empirical research largely supports the effects of online reviews on attitudinal and behavioral outcomes, less is known about the impact the source of the review—i.e., if it comes from a peer consumer or an expert—has on the recipient. Two experiments that combine reviewer- (expert, consumer), service type- (mobile package, restaurant, car repair), consumer- (level of general innovativeness), and review-related (positive, negative) characteristics reveal a challenging interaction between the review’s source and its valence: while—compared to an established baseline—a positive expert review seems more effective in increasing the recipient's intention to purchase than a review by a peer consumer, a negative consumer review lowers the recipient's intentions to a larger extent than a negative expert review. We further find effects of the consumer's innovativeness and the service category across the experiments. Our research contributes to the topical and increasing body of empirical research on the effects of involved characteristics within online reviews across several product types.     

The power of beauty? The interactive effects of awe and online reviews on purchase intentions

Prior research has established that online consumer reviews can have significant influences on the evaluations of a product or a service. In particular, studies show that negative (vs. positive) reviews lead to unfavorable evaluations because they heighten purchase risk. The present research seeks to examine a contextual cue that can alleviate this potential problem. Across three studies, this research demonstrates how the emotion of awe – elicited by a beautiful product in the advertisement – can reduce the perception of purchase risk, leading to favorable consumer evaluations of a product or service even though it has negative reviews. The implications of this research are beneficial for advertisers by highlighting the potentials of eliciting awe (e.g., by utilizing beauty) in their advertisements.     

Why should I believe this? Deciphering the qualities of a credible online customer review

Online customer reviews have been shown to have a powerful impact on the sales of a given product or service. However, the qualities of a ‘credible’ online customer review are still subject to debate. Existing research has highlighted the potential influence of a range of factors on the credibility of an online customer review, but relies heavily on quantitative methods and a ‘top down’ approach. In turn, this can reduce our understanding of the influence of these factors into merely discerning whether one pre-determined factor is more influential than another is. This paper adopted a ‘bottom up’ thematic analysis of individual qualitative interviews with a purposeful sample of consumers who regularly utilised online customer reviews. The findings uncovered a range of factors that influenced the credibility of an online customer review that were attached to a reader’s personal experience and to the content of a specific review, and inferred the existence of a reciprocal relationship between the constructs of review helpfulness and review credibility.     

How consumers use product reviews in the purchase decision process

This paper uses individual level data to examine the influence of product reviews in different stages of the consumer’s purchase decision process. Specifically, a two-stage model consisting of consideration set formation and choice is posited, where the consumer can incorporate information from product reviews in each stage. The model is estimated using an online panel survey about hotel choice. We find that (1) consumers use product reviews more in the consideration set stage and less in the choice stage, (2) Bayesian updating of prior perceived quality better explains how consumers use product reviews compared to two competing updating methods, and (3) the monetary value of a unit increase in the mean of product reviews is computed. Our results suggest that managers should make product review information (their number, average, and variance) available from the beginning of the search process and encourage satisfied customers to write reviews.     

See What We Want to See? The Effects of Managerial Experience on Corporate Green Investments

How impartial are managerial decisions? This question is particularly concerning when it comes to making green investment decisions in the face of stakeholder pressures. When managers respond to stakeholder pressures, their personal cognition, judgment, and past experiences play a role in determining their responses. The salience of particular stakeholder claims may be determined by deeply rooted individual preferences. This research investigates how a manager’s past experiences can influence green investments. Data are gathered from 247 managers about their past experience and their employer’s performance data. These data are combined with managerial responses to a vignette-based experiment, which required managers to make green investments based on a decision scenario where they are exposed to different types and strength of stakeholder pressure (from consumers and the community). Results suggest that managers’ years of experience, their employers’ financial performance, and their employers’ market performance influence investment decisions even when making decisions under new and different set of circumstances. While the employers’ financial performance influences managers to invest more, the employers’ market performance only influences managers’ investment in the presence of either high consumer or high community pressure. Compared to less-experienced managers, experienced managers invest more in response to consumer pressure but less in response to community pressure. Practical and theoretical implications of these findings in green management are explored.