First Step in Social Media: Measuring the Influence of Online Management Responses on Customer Satisfaction

Abstract

With the growing influence of online social media, firms increasingly take an active role in interacting with consumers in social media. For many firms, their first step in online social media is management responses, where the management responds to customers' comments about the firm or its products and services. In this article, we measure the impact of management responses on customer satisfaction using data retrieved from a major online travel agency in China. Applying a panel data model that controls for regression toward the mean and heterogeneity in individual preference for hotels, we find that online management responses are highly effective among low satisfaction customers but have limited influence on other customers. Moreover, we show that the public nature of online management responses introduces a new dynamic among customers. Although online management responses increase future satisfaction of the complaining customers who receive the responses, they decrease future satisfaction of complaining customers who observe but do not receive management responses. The result is consistent with the peer‐induced fairness theory.

Customer Service on Social Media: The Effect of Customer Popularity and Sentiment on Airline Response

“…Instead, the service provider's response to the failure or lack of response is the most likely cause of dissatisfaction (Smith et al, 1999). Gu and Ye (2013) studied the impact of management responses on customer satisfaction using data retrieved from a major online travel agency in China. They found that online management responses are highly effective among low satisfaction customers but have limited influence on other customers.…”

The role of individual factors on online shopping behavior

“…For example, McCollough and Bharadwaj (1992) have found that satisfaction of users who have come across service failures and then have received solutions after service failure is as high as or even higher than satisfaction of those who haven't experience any failure. Similarly, Gu and Ye's (2012) study shows that provider's effective responses improve users' satisfaction for those with low satisfaction level. Furthermore; Krishen et al (2015) have conducted a study among Facebook, Twitter, LinkedIn and other social media firm users.…”

OM Forum—Causal Inference Models in Operations Management

“…Appendix Table A3) In the area of services management, the main topics that have been empirically examined are (a) the causal relationship between customer satisfaction and various operational metrics and (b) the effects of introducing self-service technology and e-services. Two notable empirical studies on the first topic are by Lapré (2011) and Gu and Ye (2014). The notable papers on the second topic include those by Tsikriktsis et al (2004), Xue et al (2007), Buell et al (2010), and Campbell and Frei (2010).…”