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Data-Driven Approach to Dual Service Failure Monitoring From Negative Online Reviews: Managerial Perspective

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  • Junegak Joung
  • Ki-Hun Kim
  • Kwangsoo Kim

Abstract

Monitoring of dual service failures (e.g., trends in service failures and consecutive service failures) in business is emphasized for service quality management. Previous studies analyzing negative online reviews to conduct dual service failure monitoring from a managerial perspective are scarce. Numerous negative online reviews are useful sources for dual service failure monitoring because they can be easily collected at a low cost. This article proposes a data-driven approach to monitor service failure trends and consecutive service failures from negative online reviews. In the proposed approach, first a classifier is developed to categorize newly collected negative reviews into service failures by Latent Dirichlet allocation. Subsequently, a threshold value is provided to identify a new type of service failure, which was not achieved previously using a control chart. Finally, the probability of consecutive service failures is obtained by association rule mining. A case study of Uber is conducted to validate the proposed approach. The results exhibit that the proposed approach can perform dual service failure monitoring. This study can increase marketing intelligence for dynamic management of service failure and allow rapid responses to service failures.

Suggested Citation

  • Junegak Joung & Ki-Hun Kim & Kwangsoo Kim, 2021. "Data-Driven Approach to Dual Service Failure Monitoring From Negative Online Reviews: Managerial Perspective," SAGE Open, , vol. 11(1), pages 21582440209, January.
    • Handle: RePEc:sae:sagope:v:11:y:2021:i:1:p:2158244020988249
    DOI: 10.1177/2158244020988249
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