Designing Reputation and Trust Management Systems

Author(s):  
Roman Beck ◽  
Jochen Franke

This article analyzes the handling of customer complaints after shipping ordered goods by applying automated reputation and trust accounts as decision support. Customer complaints are cost intensive and difficult to standardize. A game theory based analysis of the process yields insights into unfavorable interactions between both business partners. Trust and reputation mechanisms have been found useful in addressing these types of interactions. A reputation and trust management system (RTMS) is proposed based on design theory guidelines as an IS artifact to prevent customers from issuing false complaints. A generic simulation setting for analysis of the mechanism is presented to evaluate the applicability of the RTMS. The findings suggest that the RTMS performs best in market environments where transaction frequency is high, individual complaint-handling costs are high compared to product revenues, and the market has a high fraction of potentially cheating customers.

Author(s):  
Roman Beck ◽  
Jochen Franke

This article analyzes the handling of customer complaints after shipping ordered goods by applying automated reputation and trust accounts as decision support. Customer complaints are cost intensive and difficult to standardize. A game theory based analysis of the process yields insights into unfavorable interactions between both business partners. Trust and reputation mechanisms have been found useful in addressing these types of interactions. A reputation and trust management system (RTMS) is proposed based on design theory guidelines as an IS artifact to prevent customers from issuing false complaints. A generic simulation setting for analysis of the mechanism is presented to evaluate the applicability of the RTMS. The findings suggest that the RTMS performs best in market environments where transaction frequency is high, individual complainthandling costs are high compared to product revenues, and the market has a high fraction of potentially cheating customers.


2021 ◽  
pp. 232948842110323
Author(s):  
Rebecca Van Herck ◽  
Sofie Decock ◽  
Bernard De Clerck ◽  
Liselot Hudders

This study investigates the effect of linguistic realizations of employee empathy (LREE) on brand trust in email responses to customer complaints. We explore possible mediating effects of perceived empathy and perceived complaint handling quality and we look into moderation effects of compensation (Study 1) or customer’s acceptance of blame (Study 2). Our aim is to find out if LREE have a negative or positive impact on the customer in cases of partial refunds, either because LREE are being perceived as insincere or as genuine expressions of concern. The results of two experiments show that LREE positively influence brand trust through higher perceived empathy and perceived complaint handling quality. However, the expected negative effect is not found, as LREE are more effective in a low versus high compensation condition. The effectiveness itself is not influenced by the acceptance of blame when a partial refund is offered.


2020 ◽  
Vol 7 (12) ◽  
pp. 153-180
Author(s):  
Ping Liu ◽  
Min Cai

For any business organizations, it is of great importance to handle customer complaints effectively. This is particularly vital in the service industry as complaining customers are found not very collaborative and tend to be emotional in the process of complaining [1] and sometimes the exchanges between agents and complaining customers become interpersonally sensitive. Following Orthaber and Reiter’s [2] definition of “interpersonally sensitive exchange”, this study addresses two research questions: (1) what pragmatic strategies are employed by call center agents in interpersonally sensitive interactions in complaint responses? 2) and what are the effects of these strategies on interpersonal relationship in complaint responses? Based on a corpus of 42 outbound calls (approximately 7.5 hours) made by the agents in the Complaint Centre of one Chinese airline, four conventional and two unconventional complaint response strategies are found to be employed by the agents. These strategies produce positive outcomes in some cases while lead to opposite effects in others. An effective strategy can either enhance the rapport between the agent and the complaining customer, or benefit the progressivity of complaint handling. Conversely, it deteriorates the originally sensitive rapport and sometimes even leads to upgraded complaint.


2019 ◽  
pp. 1686-1711
Author(s):  
Vijay L. Hallappanavar ◽  
Mahantesh N. Birje

Cloud computing is a model for enabling everywhere, suitable, on-demand network access. There are a number of challenges to provide cloud computing services and to accomplish this, it is necessary to establish trust across the cloud, between the user and the service provider. It is becoming increasingly complex for cloud users to make distinction among service providers offering similar kinds of services. There must be some mechanisms in the hands of users to determine trustworthiness of service providers so that they can select service providers with confidence and with some degree of assurance that service provider will not behave unpredictably or maliciously. An effective trust management system helps cloud service providers and consumers reap the benefits brought about by cloud computing technologies. Hence the objective of this chapter is to describe existing mechanisms that are used to determine a trust worthiness of a cloud service, various models that are used for calculating a trust value and method to establish trust management system.


Author(s):  
Nirmal Kumar ◽  
Ajeya Jha

The customer complaint is considered an expression of dissatisfaction against the quality of the product or information associated with them. An effective mechanism for product complaint handling is one of the essential business requirements of the pharmaceutical industry. The customer complaints have the potential to jeopardize the firm's reputation and trigger regulatory action. This study shows that the prevailing complaint handling practices in the pharmaceutical sector follow a random and independent approach without synchronizing the strategy with the gross interest of stakeholders. The study explores the dearth of study for overall mitigation of adverse impacts on business due to patient's risk, impending legal and regulatory actions. The existing system to handle pharmaceutical complaints is handled with a technical perspective, without effective involvement of the distribution personnel. This study has produced a unique pathway to redress pharmaceutical product complaints effectively.


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