Abstract

Online social media has shifted the balance of power from businesses to consumers, with consumers now being able to share information almost unrestrictedly in real-time. As a result, an effort to suppress what may be considered as harmful information can easily backfire, causing the information to instantly spread through user ties. However, what is considered important in such occasions is the way extant and prospective customers may interpret such crises. In this paper, we discuss the case of a Greek Apple authorized service provider and the manner in which it responded to a customer's complaint in a blog post. The company, instead of using social media to reach out to its customers, chose to move legally against the disgruntled customer, aiming to suppress the relevant blog post, which quickly resulted to the company's viral defamation. Building upon attribution theory and employing a content analysis of user postings in social media, our study explores stakeholders' perceptions regarding the company's reaction and response strategy, seeking to investigate attributions of cause and responsibility. Our results show that, in the initial stages of a crisis, hostile behaviour or refraining from comments altogether, can lead to negative outcomes in relation to a company's reputation.

Highlights

  • Social media’s explosion has transformed several sectors, including those of e-marketing and e-commerce

  • Analysts can mine the information flowing across online social networks (OSNs) to launch cost-effective electronic word-of-mouth (e-WOM) strategies [40], handle customer complains in order to maximise customer satisfaction, while minimising the possibility of future complaining behaviour [9]

  • It must be noted that, according to Attribution Theory and Situational Crisis Communication Theory (SCCT) [15], in order to evaluate the exact level of reputational threat and decide on the crisis response strategy, one needs to follow a two-step process; first, the responsibility attached to a crisis is examined, which helps in evaluating the initial crisis responsibility level and consumers’ perceptions with regards to the organisation’s reputation; second, one needs to focus on the organisation’s crisis history and its past relationship reputation, as these two factors may intensify the overall crisis

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Summary

Introduction

Social media’s explosion has transformed several sectors, including those of e-marketing and e-commerce. Irrespective of their size, many companies seek to integrate these new media into their processes and actively use blogs, OSNs, virtual worlds and dedicated forums to develop direct relationships or strengthen existing ones with customers. Marketers incorporate these applications into their PR strategy and treat them as platforms through which they are able to handle dissatisfied customers by responding to negative comments and criticisms and develop brand and reputation management strategies [10]

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