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. 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. 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. 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. Brands in social media
- 5. Brands in social media
- 6. Brands in social media
- 7. Brands in social media
- 8. The effects of consumer generated content • Productevaluations • Sales • Brand awareness • Reputation • Trust
- 9. Brands have started to respond Top 100 Dutch brands (2009): - 35 present in social media - mainly Twitter & Hyves
- 10. Brands have started to respond Online reputation management: - Monitoring - Adding content - Starting brand communities - Influencing the influencers - Responding to online complaint & questions
- 11. Brands have started to respond
- 12. Brands have started to respond
- 13. Brands have started to respond
- 14. A new kind of brand communication • Interpersonal • Computer-mediated • Public • Shared • On consumers’ territory
- 15. A new kind of brand communication • Customer care • Marketing • PR • Sales • Product development
- 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. Our research • Dependent variables – Credibility (competence, integrity) – Product evaluations – Review(er) credibility – Communicated customer commitment – Conversational human voice – Underdog effect
- 18. Design Complaint Apologies Denial No response Formal Formal Informal Informal
- 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. Study 1
- 21. Study 1
- 22. Study 1
- 23. Results
- 24. Results
- 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. Study 2: Effects of informal vs. formal responses - 2 (formal vs. informal) x 2 (apologies vs. financial compensation) design + control
- 27. Results Study 2 • Cognitive responses • Communicated relational commitment • Conversational voice • Fairness • Underdog effect
- 28. Positive effects of informal responses Cognitive responses (% positive) 60.0% 40.0% 20.0% 0.0%
- 29. Study 3 - Replicates effects of informal reactions - Moderation by company size
- 30. Conclusions - be careful how to respond to brand mentions in social media - be informal - apologize when necessary - is not responding still an option?