Making a Comeback: Organisational Recovery from Negative Online Consumer Impressions
The widespread availability of company information through sources such as company websites and customer review pages pose enormous challenges for organizations to instill positive impressions amongst potential consumers. This research employs a cue diagnosticity approach to examine consumers’ impression formation based on quality- and environmental responsibility-related information of a hotel in the form of (official) hotel rating and customer reviews. Furthermore, this study also examines whether an organizational response to a negative information can restore potential customers’ judgment about the company. By undertaking a scenario-based experiment, this study revealed that principles in organizational impression formation are different to its interpersonal counterpart. In particular, quality-related (compared to an environmental responsibility-related) information is more diagnostic and thus, creates a negativity bias in customers’ impression formation. When responding to negative reviews, companies can “make a comeback”, however, managers need to employ different strategies across the two domains.
Laszlo Sajtos, University of Auckland Business School