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How managerial responses to online reviews affect customer satisfaction: An empirical study based on additional reviews

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  • Zhao, Yan
  • Wen, Lingling
  • Feng, Xiangnan
  • Li, Ran
  • Lin, Xiaolin

Abstract

This study investigates the internality of managerial responses (MRs) to online reviews on the responded customers' (i.e., customers who have posted an initial review and then being responded by the company through an MR) satisfaction. By utilizing the data of additional reviews (ARs), an innovative social media module for customers to express follow-up opinions that complement their initial reviews, we examine the impact of MR treatment on the customers' AR valence. We leverage the insight that the observability of MR at the time of the responded customer posts an AR is a crucial condition to the impact of the MR, and thus regard the observability of MR as an exogenous treatment for model identification. Fixed effects models with extensive control variables are proposed to estimate the MR treatment effects. The results show that MRs have significant positive impacts on customers' satisfaction in ARs. Further explorations show that the positive impacts are mainly due to the positive effects of MRs on nonpositive initial reviews (MR-Ns), suggesting that MR-Ns are an effective management tool for customer complaints. Moreover, this study identifies MR delay as a boundary condition for the internality of MRs because MR delay negatively moderates the positive impacts of MRs. Therefore, companies should promptly respond to customers' negative opinions in their reviews. This study is among the very first to clearly identify the internality of MRs on the responded customers’ satisfaction. We show that the existing results on the externality of MRs are not directly applicable to the internality of MRs, highlighting the novelty of this study. The obtained new insights provide practical guidelines for companies to adjust their intervention strategies on e-commerce platforms.

Suggested Citation

  • Zhao, Yan & Wen, Lingling & Feng, Xiangnan & Li, Ran & Lin, Xiaolin, 2020. "How managerial responses to online reviews affect customer satisfaction: An empirical study based on additional reviews," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:joreco:v:57:y:2020:i:c:s096969892030240x
    DOI: 10.1016/j.jretconser.2020.102205
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    4. Le Bo & Yimo Chen & Xiaoli Yang, 2023. "The Impact of Contradictory Online Reviews on Consumer Online Purchase Decision: Experimental Evidence From China," SAGE Open, , vol. 13(2), pages 21582440231, June.
    5. Nilashi, Mehrbakhsh & Abumalloh, Rabab Ali & Samad, Sarminah & Alrizq, Mesfer & Alyami, Sultan & Alghamdi, Abdullah, 2023. "Analysis of customers' satisfaction with baby products: The moderating role of brand image," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    6. Manju Meenakshy & K. D. V. Prasad & Kartikeya Bolar & Chitta Shyamsunder, 2024. "Electronic word-of-mouth intentions in personal and public networks: a domestic tourist perspective," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    7. Ku, Hsuan-Hsuan & Shang, Rong-An & Fu, Yi-Fan, 2021. "Social learning effects of complaint handling on social media: Self-construal as a moderator," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
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