Online Consumer Complaint Behaviors: The Dynamics of Service Failures, Consumers' Word of Mouth, and Organization-Consumer Relationships

Abstract

This study aims to provide an understanding of the relationships between consumer's negative word of mouth (WOM) and organizations' rectification behaviors. We see consumers' negative WOM as a process of problem solving when consumers encounter an organization's service failure that dissatisfies them. This study suggests a strategic management of public relations as a principle for consumer complaint management. Based on case studies, this study finds that negative WOM is formed by the dynamics of experience sharing, advice giving, agreement, and disagreement. In particular, we discovered that information sharing is predominant among negative WOM behaviors. Finally, the case study reveals that while a high-performing business tends to have a proactive approach to resolving consumer complaints, a low performer tends to have a defensive approach.