Managing Negative Word-of-Mouth on Social Media Platforms: The Effect of Hotel Management Responses on Observers’ Purchase Intention

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Ines Nee makes important key contributions to service recovery research by analyzing the effect of management response content towards negative online customer reviews on the observer’s purchase intention. This study is the first to provide a conceptual basis of observers’ behavioral reactions towards organizational complaint handling in the context of social media and to empirically test the effect of the two most resource-intensive response options of compensation and explanation. With the help of a profound experimental design, the author detects strategies on how hotel companies should respond towards negative online customer reviews in order to increase the observer’s purchase intention and the hotel company’s return on complaint management.