IDEAS home Printed from https://ideas.repec.org/a/spr/infotm/v24y2023i1d10.1007_s10799-022-00367-7.html
   My bibliography  Save this article

Retailer response to negative online consumer reviews: how can damaged trust be effectively repaired?

Author

Listed:
  • Yan Wan

    (Beijing University of Posts and Telecommunications)

  • Yifan Zhang

    (Beijing University of Posts and Telecommunications)

  • Fengting Wang

    (Beijing University of Posts and Telecommunications)

  • Yufei Yuan

    (McMaster University)

Abstract

Social commerce has significantly enlarged consumer power through the convenience of posting and accessing online customer reviews. While positive comments may help to boost an online retailer’s reputation, the visibility of negative comments may significantly damage the retailer’s reputation. The purpose of this paper is to study trust violations caused by negative comments and corresponding retailer response strategies for trust repair thereby determining which response strategies should be chosen to repair consumer trust most effectively. Structured equation modeling method is applied to test how negative comments affect user trust, and a trust repair model to test how the company’s responses affect trust repair. The results show that perceived retailer service problems including quality problem, attitude problem and fulfillment problem reflected in negative reviews have significant negative impacts on three dimensions of consumer trust beliefs (benevolence, integrity and competence), and consumer trust beliefs have significant impacts on consumer purchase intentions. The results also show that different response strategies tend to reduce the degree of the perceived problems differently, an apology strategy was only effective in the recovery of attitude problem perceptions, while an explanation strategy had the most significant impact on the recovery of all three service problem perceptions, and a compensation strategy was effective in the recovery of quality problem perceptions. These response strategies change consumers’ perception of service problems, then further repair customer trust and hence purchase intentions.

Suggested Citation

  • Yan Wan & Yifan Zhang & Fengting Wang & Yufei Yuan, 2023. "Retailer response to negative online consumer reviews: how can damaged trust be effectively repaired?," Information Technology and Management, Springer, vol. 24(1), pages 37-53, March.
    • Handle: RePEc:spr:infotm:v:24:y:2023:i:1:d:10.1007_s10799-022-00367-7
    DOI: 10.1007/s10799-022-00367-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10799-022-00367-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10799-022-00367-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bozic, Branko, 2017. "Consumer trust repair: A critical literature review," European Management Journal, Elsevier, vol. 35(4), pages 538-547.
    2. Ting Cao & Guicheng Shi & Yanting Yin, 2014. "How to repair customer trust of high-risk products after negative publicity," Nankai Business Review International, Emerald Group Publishing Limited, vol. 5(4), pages 382-393, October.
    3. Tessa Basford & Lynn Offermann & Tara Behrend, 2014. "Please Accept My Sincerest Apologies: Examining Follower Reactions to Leader Apology," Journal of Business Ethics, Springer, vol. 119(1), pages 99-117, January.
    4. D. Harrison McKnight & Vivek Choudhury & Charles Kacmar, 2002. "Developing and Validating Trust Measures for e-Commerce: An Integrative Typology," Information Systems Research, INFORMS, vol. 13(3), pages 334-359, September.
    5. Sparks, Beverley A. & So, Kevin Kam Fung & Bradley, Graham L., 2016. "Responding to negative online reviews: The effects of hotel responses on customer inferences of trust and concern," Tourism Management, Elsevier, vol. 53(C), pages 74-85.
    6. Ting Cao & Guicheng Shi & Yanting Yin, 2014. "How to repair customer trust of high-risk products after negative publicity," Nankai Business Review International, Emerald Group Publishing Limited, vol. 5(4), pages 382-393, October.
    7. Edward C. Tomlinson, 2011. "The context of trust repair efforts: Exploring the role of relationship dependence and outcome severity," Journal of Trust Research, Taylor & Francis Journals, vol. 1(2), pages 139-157, June.
    8. Kull, Alexander J. & Romero, Marisabel & Monahan, Lisa, 2021. "How may I help you? Driving brand engagement through the warmth of an initial chatbot message," Journal of Business Research, Elsevier, vol. 135(C), pages 840-850.
    9. Muhammad Rifki Shihab & Audry Pragita Putri, 2019. "Negative online reviews of popular products: understanding the effects of review proportion and quality on consumers’ attitude and intention to buy," Electronic Commerce Research, Springer, vol. 19(1), pages 159-187, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eugene Kim & Choong C. Lee & Jaeyoung An, 2024. "Examining how online store managers’ responses to negative reviews affect potential shoppers," Electronic Commerce Research, Springer, vol. 24(2), pages 863-900, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fan Zou & Yupeng Li & Jiahuan Huang, 2022. "Group interaction and evolution of customer reviews based on opinion dynamics towards product redesign," Electronic Commerce Research, Springer, vol. 22(4), pages 1131-1151, December.
    2. Chih-Cheng Chen & Asif Khan & Tanaporn Hongsuchon & Athapol Ruangkanjanases & Yen-Tzu Chen & Ornlatcha Sivarak & Shih-Chih Chen, 2021. "The Role of Corporate Social Responsibility and Corporate Image in Times of Crisis: The Mediating Role of Customer Trust," IJERPH, MDPI, vol. 18(16), pages 1-20, August.
    3. Mei Peng Low & Tat-Huei Cham & Yee-Shan Chang & Xin-Jean Lim, 2023. "Advancing on weighted PLS-SEM in examining the trust-based recommendation system in pioneering product promotion effectiveness," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 607-636, December.
    4. Joseph A. Cazier & Benjamin B. M. Shao & Robert D. St. Louis, 2007. "Sharing information and building trust through value congruence," Information Systems Frontiers, Springer, vol. 9(5), pages 515-529, November.
    5. Cheng, Junjun & Chen, Bo & Huang, Zihang, 2023. "Collective-based ad transparency in targeted hotel advertising: Consumers’ regulatory focus underlying the crowd safety effect," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    6. Sindhu Singh & R. K. Srivastava, 2020. "Understanding the intention to use mobile banking by existing online banking customers: an empirical study," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 25(3), pages 86-96, December.
    7. Dahlberg, Tomi & Öörni, Anssi, 2006. "Finnish consumers' expectations on developments and changes in payment habits: survey in connection with the research project "Finnish payment habits 2010"," Bank of Finland Research Discussion Papers 32/2006, Bank of Finland.
    8. Pei, Zhi & Paswan, Audhesh & Yan, Ruiliang, 2014. "E-tailer׳s return policy, consumer׳s perception of return policy fairness and purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 249-257.
    9. Sertan Kabadayi & Linda Alkire (née Nasr) & Garrett M. Broad & Reut Livne-Tarandach & David Wasieleski & Ann Marie Puente, 2019. "Humanistic Management of Social Innovation in Service (SIS): an Interdisciplinary Framework," Humanistic Management Journal, Springer, vol. 4(2), pages 159-185, December.
    10. Uttara M. Ananthakrishnan & Beibei Li & Michael D. Smith, 2020. "A Tangled Web: Should Online Review Portals Display Fraudulent Reviews?," Information Systems Research, INFORMS, vol. 31(3), pages 950-971, September.
    11. Juquelier, Antoine & Poncin, Ingrid & Hazée, Simon, 2025. "Empathic chatbots: A double-edged sword in customer experiences," Journal of Business Research, Elsevier, vol. 188(C).
    12. Ahmed Ibrahim Alzahrani & T. Ramayah & Nalini Suppiah & Osama Alfarraj & Nasser Alalwan, 2020. "Modeling Blog Usage From a Developing Country Perspective Using Structural Equation Modeling (SEM)," SAGE Open, , vol. 10(3), pages 21582440209, July.
    13. Hwang, ShinYoung & Kim Seongcheol, 2017. "What triggers the use of mIM service provider’s sequel O2O service extensions?," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168494, International Telecommunications Society (ITS).
    14. Wu Li & Pengya Ai & Annette Ding, 2023. "More Than Just Numbers: How Engagement Metrics Influence User Intention to Pay for Online Knowledge Products," SAGE Open, , vol. 13(1), pages 21582440221, January.
    15. Ha Thi Hai Do & Nhung Thi Kim Tran & Thuy Thi Le Nguyen & Mai Thi Thu Le, 2022. "Will tertiary lecturers’ research motivations differ from publication types in developing countries? A case study of Vietnam," Journal of Community Positive Practices, Catalactica NGO, issue 4, pages 145-160.
    16. Nitin Walia & Mark Srite & Wendy Huddleston, 2016. "Eyeing the web interface: the influence of price, product, and personal involvement," Electronic Commerce Research, Springer, vol. 16(3), pages 297-333, September.
    17. Shareef, Mahmud Akhter & Kumar, Vinod & Dwivedi, Yogesh K. & Kumar, Uma & Akram, Muhammad Shakaib & Raman, Ramakrishnan, 2021. "A new health care system enabled by machine intelligence: Elderly people's trust or losing self control," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    18. Mario Silic & Andrea Back, 2016. "The Influence of Risk Factors in Decision-Making Process for Open Source Software Adoption," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 151-185, January.
    19. Silva, Graça Miranda & Gonçalves, Helena Martins, 2016. "Causal recipes for customer loyalty to travel agencies: Differences between online and offline customers," Journal of Business Research, Elsevier, vol. 69(11), pages 5512-5518.
    20. Anjali Singh & Ajay Kumar, 2021. "Designing the marketspace for millennials: fun, functionality or risk?," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(4), pages 311-327, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:infotm:v:24:y:2023:i:1:d:10.1007_s10799-022-00367-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.