Understanding Online Service Recovery from a Prospective Consumer Perspective: An Abstract

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Abstract

Despite the popularity of online service recovery, little is known about the ways in which a retailer’s management responses to negative reviews shape prospective consumers’ perceptions of retailer complaint-handling. This study investigates the impacts of recovery management response strategies from a perspective of prospective consumers. Specifically, we investigate how two types of recovery messages, namely, warmth- and competence-oriented responses influence prospective consumers’ service recovery perceptions (i.e., perceived diagnosticity, perceived sincerity, and perceived fairness) and attitudes toward retailer. Warm-oriented responses emphasize retailers’ friendliness and kindness in service interactions, and competence-oriented responses emphasize retailers’ efficiency, and knowledgeability of their service/products (Kirmani et al. 2017). A scenario-based experiment comprised a single factor (retailer response: warmth vs. competence) design. A total of 233 participants were recruited from a market research company and they were randomly assigned to one of two experiment conditions. The management response manipulation was confirmed. One-way multivariate analysis of variance (MANOVA) yielded a significant effect of management response on service perceptions. Planned comparisons suggested that participants perceived warmth-oriented retailer responses to be more relevant than competence-oriented responses in judging retailer’s service recovery efforts and the former is perceived to be sincerer than the latter. However, there was no group difference in perceptions of fairness between warmth- and competence-oriented responses. Further, SEM indicated prospective consumer’s service recovery perceptions influence their attitudes positively. Theoretically, the current study enriches the consumer complaint management literature by exploring the complaint management phenomenon from the perspective of the prospective consumer. It also sheds light on the interpersonal communication skills embedded in online service recoveries by identifying the warmth and competence dimensions as key characteristics of management responses. Practically, the results of this study demonstrate how retailers can effectively respond to negative consumer reviews to maintain Electronic Customer Relationship Management (e-CRM) with prospective consumers.

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Huang, R., & Ha, S. (2020). Understanding Online Service Recovery from a Prospective Consumer Perspective: An Abstract. In Developments in Marketing Science: Proceedings of the Academy of Marketing Science (pp. 511–512). Springer Nature. https://doi.org/10.1007/978-3-030-42545-6_175

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