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Tactics to Restore Damaged Customer Relationship after Negative Events

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  • Lili Wan

Abstract

Negative event about companies is widespread in media recently. Corporate image, trust and customer relationship of an organization can be damaged once negative media publicity is spread in the marketplace. How to restore damaged customer relationship becomes a critical task for management. This study examined effect of different repair tactics to repair corporate image and damaged relationship with customers after negative publicity. Effects of social account (apology, excuse, promise) and substantive actions (financial compensation, etc.) differ in different types of violation events. A combination of social account and substantive actions based on event characteristics may work better than using any single strategy. This study can help management effectively cope with the adverse impact of negative publicity. An efficacious combination of social account and substantive actions may maximize the effect of repair. Management of the companies should understand what the affected customers really need to figure out a most effective repair tactic.

Suggested Citation

  • Lili Wan, 2016. "Tactics to Restore Damaged Customer Relationship after Negative Events," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(6), pages 132-137, June.
    • Handle: RePEc:hur:ijarbs:v:6:y:2016:i:6:p:132-137
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    References listed on IDEAS

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    1. Dirks, Kurt T. & Kim, Peter H. & Ferrin, Donald L. & Cooper, Cecily D., 2011. "Understanding the effects of substantive responses on trust following a transgression," Organizational Behavior and Human Decision Processes, Elsevier, vol. 114(2), pages 87-103, March.
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    3. Kim, Peter H. & Dirks, Kurt T. & Cooper, Cecily D. & Ferrin, Donald L., 2006. "When more blame is better than less: The implications of internal vs. external attributions for the repair of trust after a competence- vs. integrity-based trust violation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 99(1), pages 49-65, January.
    4. Nakayachi, Kazuya & Watabe, Motoki, 2005. "Restoring trustworthiness after adverse events: The signaling effects of voluntary "Hostage Posting" on trust," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(1), pages 1-17, May.
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