Innovatives Markenmanagement Christoph Burmann · Manfred Kirchgeorg Eds Ines Nee Managing Negative Word-of-Mouth on Social Media Platforms The Effect of Hotel Management Responses on Observers' Purchase Intention Innovatives Markenmanagement Band 58 Herausgegeben von Ch Burmann, Bremen, Deutschland M Kirchgeorg, Leipzig, Deutschland Marken sind in vielen Unternehmen mittlerweile zu wichtigen Vermögenswerten geworden, die zukünftig immer häufiger auch in der Bilanz erfasst werden können Insbesondere in reiferen Märkten ist die Marke heute oft das einzig nachhaltige Differenzierungsmerkmal im Wettbewerb Vor diesem Hintergrund kommt der professionellen Führung von Marken eine sehr hohe Bedeutung für den Unternehmenserfolg zu Dabei müssen zukünftig innovative Wege beschritten werden Die Schriftenreihe will durch die Verưffentlichung neuester Forschungserkenntnisse Anstưße für eine solche Neuausrichtung der Markenführung liefern Herausgegeben von Professor Dr Christoph Burmann Universität Bremen, Lehrstuhl für innovatives Markenmanagement (LiM®) Professor Dr Manfred Kirchgeorg HHL Leipzig Graduate School of Management, SVI-Stiftungslehrstuhl für Marketing Ines Nee Managing Negative Word-of-Mouth on Social Media Platforms The Effect of Hotel Management Responses on Observers’ Purchase Intention Foreword by Prof Dr Christoph Burmann Ines Nee Bremen, Germany Dissertation University of Bremen, 2016 Innovatives Markenmanagement ISBN 978-3-658-13997-1 ISBN 978-3-658-13998-8 (eBook) DOI 10.1007/978-3-658-13998-8 Library of Congress Control Number: 2016938378 Springer Gabler © Springer Fachmedien Wiesbaden 2016 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made Printed on acid-free paper This Springer Gabler imprint is published by Springer Nature The registered company is Springer Fachmedien Wiesbaden GmbH Foreword V Foreword The initiation and management of word-of-mouth is an important and long term topic in marketing research and practice With the rise of the internet and particularly with the strong and lasting diffusion of social media this topic is attracting an even greater audience Initially, marketing researchers were focusing on those consumers, who were not satisfied with a product or a service and voiced their complaints towards corporations or third parties The result was an impressive amount of valuable research Based on this, several researchers tried to apply this wide body of knowledge towards the social media arena What they have left out so far – to the best of my knowledge – is the effect of social media word-of-mouth on the behavior of so called “observers” These people simply read complaints on social media platforms and follow the reaction of e.g hotel managers in their reaction towards the complaints (e.g on tripadvisor) Ines Nee focusses exactly on this research gap Her research contribution is unique because in the past the complaints and the reaction of corporations towards complaints were hardly visible for the public Therefore, “complaint observers” were neglected by academic researchers and managers alike Against this background, Ines Nee developed a conceptual framework to analyze the effects of observed complaints and observed management reaction towards complaints on the behavior of observers (e.g their buying intention) Based on this sound theoretical foundation, she conducted an interesting empirical study in order to substantiate her theoretical research and her hypotheses Based on this procedure, Ines Nee is able to develop meaningful and innovative recommendations especially for managers in the tourism industry who have to deal with complaints on social media platforms regularly Additionally, the PhD-work of Ines Nee fills a very relevant gap in the academic marketing and branding research by presenting the first theoretical and empirical study about the buying behavior of “observers” on social media platforms The PhD thesis at hand represents Volume 58 of the edited book series entitled “Innovative Brand Management” published by Springer Gabler These book series document research projects conducted by Germany’s first and only Chair of innovative Brand Management (LiM) at the University of Bremen and the Chair of Marketing Management at Leipzig Graduate School of Management (HHL) My co-editor Prof Foreword VI Dr Manfred Kirchgeorg and myself are looking forward to receiving feedback (please e-mail to burmann@uni-bremen.de or mkirchgeorg@t-online.de) We will go on to publish at least five successfully completed PhD thesis projects per annum within these book series in order to vitalize the growing interest in innovative brand management This growing interest is also represented through the translation of the originally German textbook “Identity-based Brand Management” (second edition published in October 2015) into the Chinese (March 2015), English (June 2016) and French language (November 2016) Finally, I wish the thesis of Dr Ines Nee a very broad distribution in theory and practice given the excellent conceptual and empiric quality of this study Univ.-Prof Dr Christoph Burmann Preface VII Preface The influence of online customer reviews on the purchase intention of potential customers (so-called observers) is highly discussed and analyzed by marketing academics Especially negative online customer reviews were found to have a significant negative effect on the purchase intention of observers User-generated platforms have reacted to this and provide organizations with the opportunity to respond to negative online customer reviews However, management responses to negative online customer reviews lack academic and practical attention, especially taking the perspective of the observer The aim of this work is to fill this research gap and to analyze how hotel companies should respond to negative online customer reviews in order to increase the observer’s purchase intention This study makes important key contributions to service recovery research as it is the first study to analyze management response content towards negative online customer reviews Consequently, this study provides important theoretical implications by analyzing how observers react upon classical response content usually applied in service recovery management Additionally, no existing study empirically analyzed management response content towards negative online reviews taking the perspective of the observer With a profound experimental design, this study is the first to empirically test the effect of the two most resource-intensive response options of compensation and explanation on the observer’s purchase intention Moreover, the results have important implications for practitioners by providing hotel companies with an action plan on how to respond to negative online customer reviews in order to mitigate the negative effect of negative online reviews and to increase the observer’s purchase intention Moreover, this thesis offers hotel companies an honest alterative to fraud reviews and an opportunity to increase their return on complaint management In February 2016, this document was accepted as doctoral thesis by the Faculty of Business Studies & Economics at the University of Bremen, Germany It is a result of my work as research associate at the Chair of Innovative Brand Management (LiM) It is my pleasure to express my gratitude to several individuals, without whom the successful completion of this dissertation would not have been possible First of all, I would like to express my gratitude to my PhD advisor Prof Dr Christoph Burmann who offered me the opportunity to pursue my doctoral education Moreover, I want to thank Prof Dr Maik Eisenbeiß for taking over the role as second reviewer I would also like to thank my committee members, Prof Dr André Heinemann and Prof Dr Georg Müller-Christ for their support VIII Preface I would like to express my special appreciation and thanks to Dr Michael Schade, Dr Sabrina Hegner and Dr Rico Phieler who offered invaluable assistance, support and guidance and who inspired me with their passion and deep commitment Moreover, I want to thank my colleagues Corinna Beckmann, Daniela Eilers, Julia Feddersen, Tilo Halaszovich, Frank Hemmann, Florian Horstmann, Christopher Kanitz, Barbara Kleine-Kalmer, Antje Löwa, Philip Maloney, Andreas Müller, Tobias Recke, Ayla Rưßler, Patrick Rossmann, Heidi Schrưder, Fabian Stichnoth, Maleen Ulbricht for the stimulating discussions, fun memories and for sticking together even in frustrating situations My special thanks go to Tanja Koppen for her outstanding support concerning administrative matters, her fun and down-to-earth personality, for caring and for making her office a welcoming place to be I want to express my deepest gratitude to my significant other, Stephan, who has been by my side throughout this PhD project and who always encouraged me and believed in my abilities I want to thank him for his unconditional support, his great amount of interest in my work and for sharing his extensive knowledge Moreover, I want to thank him for always being there for me, for his love and for making this period an enjoyable one Lastly, but most importantly, I want to thank my parents and my brother Carsten for their love and understanding, their belief as well as their never-ending support I value their joy of sharing my experiences and I am grateful for the opportunities they give me To you I dedicate this work Ines Nee Contents IX Contents Foreword V Preface VII Contents IX Figures XIII Tables XV Abbreviations XVII A Relevance of managing online customer reviews 1 The development of electronic word-of-mouth and its impact on observer’s purchase intention in the hotel industry 1.1 The development of eWOM and its differentiation from traditional WOM 1.2 Online customer reviews and their influence in the hotel industry 1.3 Management responses to online reviews in the hotel industry 13 Current state of research on management responses to negative online customer reviews and research gaps 15 Research objective, research questions and study outline 28 B Theoretical foundations 31 The hotel industry and its development since the emergence of Web 2.0 31 1.1 Characterizing the hotel industry 31 1.2 The development of social media in the hospitality and tourism industry 34 1.3 Changes in the travel process since the development of social media 39 1.3.1 Pre-trip phase 40 1.3.2 During-Trip phase 43 1.3.3 Post-Trip phase 45 1.4 Typology of hotel review platforms 46 Service recovery management as webcare tool 51 2.1 Webcare 52 2.2 Aim and functions of service recovery management 54 2.3 Customer complaint behavior 55 2.3.1 Attribution theory 56 2.3.2 Theories of customer complaint reactions 57 References 221 KOLODINSKY, J (1992), A system for estimating complaints, complaint resolution and subsequent purchases of professional and personal services, in: Journal of Consumer Satisfaction, 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compensation or a non-monetary compensation such as an apology.140 Furthermore, the interpersonal communication of a response141, the degree of information given on why