Why should you respond to customer complaints on a personal level? The silent observer's perspective

Abstract

This paper analyzes the effect of company response style and complaint source on silent observers' reactions to a service failure episode vented on Twitter. In a 2 × 2 experimental design, company response style (personalized vs automatic) and complaint source (ordinary Twitter user vs influencer) were manipulated to test the hypotheses. Complaint source moderates the effect of company response style on brand image, purchase intention and electronic word-of-mouth (eWOM). Thus, the authors found that a personalized response to a complaint, compared to an automatic response, leads to a more favorable brand image as well as purchase intention and eWOM intention when the complainant is an ordinary Twitter user. However, the automatic response, compared to the personalized one, is better perceived when the complainant is an influencer. The authors also found that service failure response attribution and the emotions elicited during the firm–complainant interaction mediate the previous effects. This paper deals with the company's initial reaction after a complaint is posted on Twitter; however, the complaint-handling process is longer, and both the customer and silent observers await a resolution. Future research could tackle subsequent stages of the process and different recovery strategies. The study offers meaningful insights regarding complaint handling on Twitter and how the effectiveness of the company response style depends on the complaint source. Marketers should offer adapted personalized responses to prompt positive behavioral intentions for ordinary Twitter users, who represent prospective consumers. However, a personalized response given to an influencer may be perceived more negatively, as silent observers may interpret that the company offers such a response just because the complaint comes from a well-known person who can reach many users and not because of an honest interest in serving consumers. This research focuses on the underresearched area of the impact of online complaints on silent observers, a large group of prospective consumers quietly exposed to complaints aired on Twitter. The underlying mechanisms are also identified.