The impact of experience on companies' reactions to negative comments on social networks

Abstract

Owing to the increasing adoption of social networks among consumers and the effect of their online negative reviews on firms' profitability, this paper explains research into possible strategies for replying to negative word-of-mouth (nWOM). On the basis of a study involving 237 firms, we examine how companies can react to nWOM communication and how their actions are influenced by experience with the social network. The results show the eight most frequent strategies adopted: discount coupon, post removal, request for post removal by consumer, sending another free product, product substitution, acceptance of consumer's request and providing excuses/explanation, plus 'no reaction'. The results also correlate the number of fans and presence on Facebook to the type of reaction, with a significant difference among highly experienced firms and a significantly higher level of 'no reaction' among less experienced companies. © 2013 macmillan publishers ltd.