Company Response to Negative Online Reviews: The Effects of Procedural Justice, Interactional Justice, and Social Presence

2020 ◽  
Vol 61 (3) ◽  
pp. 312-331 ◽  
Author(s):  
Eric D. Olson ◽  
Heejung Ro

This research investigates how potential customers evaluate a company response to negative online reviews. Integrating the literature on perceived justice in service recovery, social presence in online communications, and signaling in trust formation process, this research examines the effects of procedural justice, interactional justice, and social presence in the company’s response to negative online reviews on potential customers’ trust and purchase intentions toward a company. A 2 × 2 × 2 between-subject experimental design is utilized, and 410 participants are recruited through a consumer panels firm. Main results include the three-way interaction effect of procedural justice, interactional justice, and social presence on trust and the mediating effect of trust. Social presence exacerbates the negative effects on trust when both interactional justice and procedural justice are low in the company response. However, the social presence effect becomes small in increasing trust when both interactional justice and procedural justice are high in the company response. Trust mediates the relationship between customer perceptions of company response and purchase intentions. This research provides practical implications for hospitality companies on how to effectively respond to negative online reviews.

2014 ◽  
Vol 8 (3) ◽  
pp. 224-244 ◽  
Author(s):  
Yoon Jin Ma ◽  
Hyun-Hwa Lee

Purpose – This paper aims to explore the effect on consumer responses of firms’ manipulating online reviews based on review valence (positive vs negative) and the relationship between consumer trust and purchase intentions. Design/methodology/approach – This study was designed as an experimental study using a scenario method, and data were randomly collected from 2,080 online shoppers in the USA. Findings – Findings reveal that the unfair business practice of manipulating online postings considerably undermined consumer trust toward online reviews. Consumer trust in reviews thus seems to be a critical predictor of purchase intentions, which was strengthened even when respondents knew that online reviews were manipulated. Practical implications – Companies may thus need to focus on maintaining transparency and truthfulness in online consumer reviews rather than artificially improving ratings scores or feedback levels. Originality/value – This study was the first attempt to provide empirical supports that the level of consumer trust in online reviews significantly decreased after consumers were informed that the review content had been manipulated by a company in both the positive and negative conditions. These results also support previous research articulating the negativity effect.


2021 ◽  
Vol 7 (2) ◽  
pp. 28
Author(s):  
Fakeha Anwer ◽  
Danish Ahmed Siddiqui

While many analysts have directed few investigations on the influence of ethical leadership on the behavior of citizenship, in different contexts, however, not much is known about the moral components make it possible to produce follow-up findings as Organizational Citizenship Behavior(OCBs) for leaders, especially, Interpersonal OCBs (OCBI). For this, we suggested a hypothetical structure, thereby adapting Zoghbi-Manrique-de-Lara and Viera-Armas (2019) model to include Organizational Justice. Therefore, we intend to study the association of Ethical Leadership with OCBI empirically while in the view of various determining factors of Workplace Compassion (i.e. empathic concern, common humanity, mindfulness, and kindness), and Organizational Justice (i.e. procedural justice, distributive justice, and interactional justice) as mediating variables. Empirical validity was recognized; by directing a review utilizing a standardized close-ended questionnaire. Using Confirmatory Factor Analysis (CFA) and Structured Equation Modeling (SEM), information was collected from 350 employees and investigated. Both direct and indirect effect was tested; by using Structural Equation Modeling (SEM) via SmartPLS software. Thus, the results revealed that: except for Common Humanity, ethical leadership remained significantly and positively connected with all factors of Workplace Compassion (Empathic Concern, Mindfulness, and Kindness), as well as with all three-factor of Organizational Justice (Procedural Justice, Distributive Justice, and Interactional Justice. However, ethical leadership seems to hurt the Mindfulness factor. Also, among compassion determinants, only Empathic Concern seems to affect OCBI. Whereas only interactional justice has a significant positive association with OCBI; further, the findings revealed that there is an insignificant mediating effect of workplace compassion and organizational justice in the ethical leadership relationship with OCBI. Hence, the investigation has portrayed significant ramifications for the organizations.


2019 ◽  
Vol 14 (9) ◽  
pp. 173 ◽  
Author(s):  
Mohamad Hisyam Selamat ◽  
Guo Wan Ran

This study examined the factors that influencing small and medium-sized enterprise (SMEs)’ performances with the mediating effect of organizational citizenship behavior in China. Its purpose is to motivate and improve the small and medium-sized enterprise’ performance. The examined factors were distributive justice, procedural justice, interactional justice. This study uses cross-sectional survey to verify the theoretical framework. The survey data in this study were collected from 251 employees of SMEs in China.The study result shows that distributive justice, interactional justice had significant influence on the organizational performance; distributive justice, procedural justice, interactional justice had significant influence on the organizational citizenship behavior; Meanwhile, procedural justice can influence organizational performance through the meditating role of organizational citizenship behavior. The results of this study could provide a development strategy for SMEs in China through the relationship organizational justice and organizational performance.


2021 ◽  
Vol 6 (5) ◽  
pp. 87-93
Author(s):  
Dwiana Rahmadiati Putri

Ailesh Green Consulting is an environmental consulting service with the target is a company that produces waste, especially companies that are included in the gold criteria in PROPER. The main problem is having low brand awareness and the low of customer purchase intention from target customers to use their services. The research methodology uses qualitative research. This research aims to help raise brand awareness and customer purchase intention of their potential customers. The data was collected using an interview system with 10 respondents who had a background in the environmental field, working for companies that are under gold criteria in PROPER. Based on the result, respondents' brand awareness is low, as well as the customer purchase intentions. It was found the digital media recommended to use for the company by the respondents is display advertising, LinkedIn social media, search engines, and websites. Based on the results, Ailesh Green Consulting is able to optimize Search Engine Optimization (SEO) supported by an attractive website optimizer and content marketing website, create and optimize the use of LinkedIn social media, and use of LinkedIn ads.


2021 ◽  
pp. 0887302X2199428
Author(s):  
Hyejune Park ◽  
Seeun Kim

The purpose of this study is to examine the effects of the “virtual try-on” technology (AR) and the “3D virtual store” (VR) incorporated in an apparel retail website on purchase intentions. This study highlights the mediating role of cognitive elaboration in the process through which these technologies influence purchase intentions, and examines the way consumers’ shopping goals (searching vs. browsing) interact with the website technology and influence their responses. The two experiments demonstrated that, for browsers, the website with VR was more effective in increasing purchase intentions than were the website with AR or a regular website with no technology, while for searchers, both the website with AR and the website with VR were more effective than was a regular website. In addition, cognitive elaboration mediated the interaction between a technology and a shopping goal on purchase intentions for browsers, while such a mediating effect was not found in searchers.


Author(s):  
Alfonso Urzúa ◽  
Alejandra Caqueo-Urízar ◽  
Diego Henríquez ◽  
David R. Williams

There is not much evidence on the effects of south–south migration and its consequences on physical and mental health. Our objective was to examine the mediating role of Acculturative Stress in the association between ethnic discrimination and racial discrimination with physical and mental health. This research is a non-experimental, analytical, cross-sectional study. A total of 976 adult Colombian migrants living in Chile were interviewed. We used the Everyday Discrimination Scale, the acculturative stress scale, and the Medical Outcomes Study Short Form (SF-12) for health status; we found that racial and ethnic discrimination had a negative effect on physical and mental health. In the simultaneous presence of both types of discrimination, racial discrimination was completely absorbed by ethnic discrimination, the latter becoming a total mediator of the effect of racial discrimination on mental and physical health. Our findings are consistent with the literature, which suggests that there are various types of discrimination which, individually or in their intersectionality, can have negative effects on health.


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