Mix&amp;Match: A Resource-Based Complaint Recovery Framework for Tangible Compensation

Stakhovych, Stanislav; Tamaddoni, Ali

doi:10.1177/1094670519898521

Cited by 5 publications

(10 citation statements)

References 45 publications

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“…Dialogic communication can thus help develop more positive perceptions and attitudes for the brand and result in improved brand attitudes and purchase intentions (Colliander et al, 2015). Scholars have generally agreed that attending to consumers' negative eWOM is an expected step of reputation recovery and relationship restoration (Gunarathne et al, 2017;Stakhovych and Tamaddoni, 2020). However, more research is needed.…”

Section: Expectancy Violation and Brand Feedback To Negative Ewommentioning

confidence: 99%

“…A review of negative eWOM recovery strategies found that brands offer tangible compensation (i.e. refunds, credits) for optimal recovery after a brand failure (Stakhovych and Tamaddoni, 2020). Per resource exchange theory (RET; Foa and Foa, 1974), when a brand's performance fails, consumers experience a loss of resources (e.g.…”

Section: Compensationmentioning

confidence: 99%

“…money, goods, information and status, among others), which leads to an imbalance in the exchange. To correct this, brands should offer a resource perceived as an acceptable replacement (Stakhovych and Tamaddoni, 2020).…”

Section: Compensationmentioning

confidence: 99%

“…Studies have shown that eWOM plays a significant role in influencing consumers' behavior and purchase intentions (Erkan and Evans, 2016). While social media has enabled users to freely generate, interact with and respond to brand content, it has also enabled negative eWOM via public challenges of companies' reputations (Stakhovych and Tamaddoni, 2020). Negative eWOM can significantly harm brands given that consumers place greater emphasis to negative information in their decision-making processes (i.e.…”

mentioning

confidence: 99%

“…In studying how brands handle negative eWOM on social media, earlier studies have shown that compensation, such as the redelivery of products (Stakhovych and Tamaddoni, 2020) and proactive responses (Van Noort and Willemsen, 2012), were effective strategies in restoring positive attitudes toward brands. However, limited studies have addressed the underlying mechanism of the why (Bhandari and Rodgers, 2018).…”

mentioning

confidence: 99%

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Effects of brand feedback to negative eWOM on brand love/hate: an expectancy violation approach

Yang

Mundel

2021

JPBM

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Purpose This study aims to explore the role of consumers’ expectation violation in brands’ negative eWOM management on social media. The effects of brand feedback strategies (i.e. compensation and causal attribution) and brand type (i.e. full-service vs low-cost) in consumers’ expectation violations and the impact of such violations on consumers’ satisfaction and responses to a brand (i.e. brand love and brand hate) were examined. Design/methodology/approach This study used a 2 (causal attribution: external/brand) × 2 (compensation: present/absent) × 2 (brand type: low cost vs full service) × 2 (industry: airline and hotel) between-subjects experimental design. Findings Results indicated that the presence (vs absence) of compensation can result in positive consumer expectation violations, which can lead to consumer satisfaction and brand love. Alternately, the absence of compensation can result in negative consumer expectation violations, which can lead to consumers dissatisfaction and brand hate. Moreover, brand type (i.e. full-service vs low-cost) significantly interacted with the presence of compensation in influencing consumers’ responses. The attribution of the cause did not significantly influence consumers’ responses. Practical implications This study highlights the importance of knowing consumers’ expectations when responding to negative eWOM on social media. Offering compensation is an effective strategy for restoring consumer satisfaction. Specifically, for low-cost brands, offering compensation can lead to even more favorable responses. Originality/value This study pioneers in exploring the roles of different brand feedback strategies and brand type in influencing consumers’ responses to brands’ handling of negative eWOM. This study revealed the underlying mechanism through the theoretical lens of expectancy violation and examined the impact of expectation violations on consumer satisfaction and brand love and brand hate.

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Section: Expectancy Violation and Brand Feedback To Negative Ewommentioning

confidence: 99%

Section: Compensationmentioning

confidence: 99%

Section: Compensationmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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