scholarly journals Service Recovery on Stage: Effects of Social Media Recovery on Virtually Present Others

2019 ◽  
Vol 22 (4) ◽  
pp. 421-439 ◽  
Author(s):  
Jens Hogreve ◽  
Nicola Bilstein ◽  
Kathrin Hoerner

Increasingly, customers use social media to voice complaints, making those comments visible to a wide range of uninvolved, virtually present others (VPOs). Many companies seek to shift their complaint-handling efforts away from public online platforms and toward private interactions. However, this approach might not be optimal due to the importance of transparency in social media recovery and its impact on VPOs. Using multiple experiments and building on signaling theory, vicarious learning, and trust repair mechanisms, this study reveals that service recovery transparency acts as an important signal of quality, eliciting trust, and improving VPOs’ word-of-mouth (WOM) and purchase intentions. However, service recovery transparency forms a signal of poor quality when the service recovery is unsuccessful, resulting in negative implications for VPOs’ WOM and purchase intentions. Conditional transparency provides transparency about selected aspects of the service recovery (i.e., the process or result), enabling companies to exploit the positive aspects of transparency and evoke more favorable VPO intentions than would arise with complete opaqueness. Such efforts are necessary because even high brand equity firms suffer when failing to provide recovery transparency.

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Elisa C. Baek ◽  
Matthew Brook O’Donnell ◽  
Christin Scholz ◽  
Rui Pei ◽  
Javier O. Garcia ◽  
...  

AbstractWord of mouth recommendations influence a wide range of choices and behaviors. What takes place in the mind of recommendation receivers that determines whether they will be successfully influenced? Prior work suggests that brain systems implicated in assessing the value of stimuli (i.e., subjective valuation) and understanding others’ mental states (i.e., mentalizing) play key roles. The current study used neuroimaging and natural language classifiers to extend these findings in a naturalistic context and tested the extent to which the two systems work together or independently in responding to social influence. First, we show that in response to text-based social media recommendations, activity in both the brain’s valuation system and mentalizing system was associated with greater likelihood of opinion change. Second, participants were more likely to update their opinions in response to negative, compared to positive, recommendations, with activity in the mentalizing system scaling with the negativity of the recommendations. Third, decreased functional connectivity between valuation and mentalizing systems was associated with opinion change. Results highlight the role of brain regions involved in mentalizing and positive valuation in recommendation propagation, and further show that mentalizing may be particularly key in processing negative recommendations, whereas the valuation system is relevant in evaluating both positive and negative recommendations.


2021 ◽  
Vol 4 (62) ◽  
pp. 5-22
Author(s):  
Nargiza Aliyeva ◽  
Gaukhar Mukhamediyeva

Social networks are actively penetrating into all spheres of our society. The influence of social media is strongly affected by the younger generation, who spends a lot of time in the virtual social space. The purpose of this study was to study the influence of social networks on the choice of a university brand by representatives of generation Y. The data was collected through an online survey using the Google forms service. The results obtained indicate that social media engagement has a positive effect on brand image. Firm-created and user-generated social media communication have a positive effect on brand equity in Higher Education Institutions. Brand equity positively influences Brand choice intention. The value of this study lies in the fact that it considered the influence of various factors on the formation of the intention of representatives of generation Y to choose brands of universities, taking into account the moderate effect of electronic word of mouth. The results obtained complement the scientific literature on the impact of social media on consumer behavior. The results of this study can help in understanding the choice of students of educational organizations, taking into account the influence of social networks and electronic word of mouth, which can help university marketing departments to promote brands more effectively in the social media space.


Author(s):  
Oscarius Yudhi Ari Wijayaa ◽  
Sulistiyanib Sulistiyanib ◽  
Juliani Pudjowatic ◽  
Theresia Siwi kartikawatid ◽  
Ninik Kurniasih ◽  
...  

The purpose of this study is to analyze the effect of customization purchase intention of Smartphones, entertainment, interaction, social media marketing, trendiness, and Word-of-Mouth on purchase intention of Smartphones. The study uses a quantitative method by distributing online questionnaires to 217 consumers in Banten Indonesia and the method of distributing questionnaires is a snowball sampling system. Data processing and testing of hypotheses and models in this study are based on Structural Equation Modeling (SEM). The research has benefits in increasing knowledge and information for companies about the importance of brand awareness through increasing influencing factors such as social media marketing and word of mouth. Based on the results of SmartPLS analysis, Interaction, Word-of-Mouth, Social media marketing, Entertainment and Trendiness have insignificant effects on purchase intentions of Smartphones while Customization has significant effects on purchase intentions of Smartphones during.


Author(s):  
Xiang Ying Mei ◽  
Ingrid K. Bagaas ◽  
Erling K. L. Relling

Customer complaints are unavoidable in any businesses and how firms handle such complaints will affect the public's perception of the company's brand and reputation. While storytelling is being embraced by an increasing number of companies as a different way to communicate their brand, many customers are now also using storytelling as an approach to voice their unfavourable experiences on the social media in regards to a particular unsatisfactory purchase as part of electronic word-of-mouth (eWOM). Such creative and humorous complaints serve as a way to cut through the clutter in order to gain the company's attention. Those companies that embrace such complaints by responding in an equally humorous and creative manner as part of their service recovery process will manage to recover their customers as well as their employees. As such posts are often shared publicly on the Internet, they may become viral and thus can create great positive effect on the company's reputation. Hence, it is important to empower the employees to recover the services using untraditional responses.


Author(s):  
Xiang Ying Mei ◽  
Ingrid K. Bagaas ◽  
Erling K. L. Relling

Customer complaints are unavoidable in any businesses and how firms handle such complaints will affect the public's perception of the company's brand and reputation. While storytelling is being embraced by an increasing number of companies as a different way to communicate their brand, many customers are now also using storytelling as an approach to voice their unfavourable experiences on the social media in regards to a particular unsatisfactory purchase as part of electronic word-of-mouth (eWOM). Such creative and humorous complaints serve as a way to cut through the clutter in order to gain the company's attention. Those companies that embrace such complaints by responding in an equally humorous and creative manner as part of their service recovery process will manage to recover their customers as well as their employees. As such posts are often shared publicly on the Internet, they may become viral and thus can create great positive effect on the company's reputation. Hence, it is important to empower the employees to recover the services using untraditional responses.


2021 ◽  
pp. 227853372110249
Author(s):  
Milad Farzin ◽  
Marzie Sadeghi ◽  
Majid Fattahi ◽  
Mohammad Reza Eghbal

The spread of social media has created a new era for companies and brands and forcing them to explore new interactive ways to achieve and engage their consumers. The main purpose of the present study is to investigate the impact of social media marketing and electronic word-of-mouth on consumers' willingness to pay a premium due to the mediating role of brand equity and brand identity. The data were collected through a survey by simple random sampling method. Questionnaires were distributed among people who had experience in buying leather products from social networks. Structural equation modeling technique was applied to test the research hypotheses. The results exposed the process that transforms social media marketing and electronic word-of-mouth to the willingness to pay a premium. Moreover, the findings showed that electronic word-of-mouth can indirectly affect consumer behavioral responses through brand equity and brand identity and also have a direct impact on consumer decisions such as willingness to pay a premium. The study has important implications for both theory and practice. This insight could be utilized by marketers and advertisers in the formulation and implementation of effective and coherent marketing and advertising strategies.


2017 ◽  
Vol 3 (2) ◽  
pp. 181
Author(s):  
Ridwan Adetunji Raji ◽  
Sabrina Mohd Rashid ◽  
Sobhi Mohd Ishak

The literature on Consumer-Based Brand Equity (CBBE) continues to grow enormously. Previous studies on CBBE have maintained that marketing communications play a significant role in developing CBBE. Furthermore, researchers have argued that social media has become a renowned and strategic platform for disseminating brand-related communication. Hence, the advent of brand-related communication on social media is as well increasing the freedom and involvement of consumers in the co-creation of brand-related contents, thus giving rise to Social Media Word-of-Mouth. However, researchers have paid little attention to determining the role of Social Media Word-of-Mouth in developing CBBE and evoking favourable consumer behaviour. Therefore, this study sets out to examine the relationships between Social Media Word-of-Mouth, CBBE and Consumer Response. For this purpose, 290 consumers of two automotive brands were surveyed using the survey questionnaire. The data collected was analysed using both SPSS version 23 and AMOS version 23. The results revealed that Social Media Word-of-Mouth is important for enhancing CBBE and stimulating Consumer Response. Consequently, brand managers and marketers of automotive brands in Malaysia were charged to increase their engagements and investments in social media communications and encourage favourable word-of-mouths from their consumers on social media in order to improve the acceptance of their brands and increased positive consumer behaviour. This study concludes that consumer reviews, comments and posts on social media have significant implications on brands and consumer behaviour.


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