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How can companies utilize service recovery to manage negative online reviews?

Background: Service recovery is a process that companies meticulously work on to effectively address issues encountered by their consumers. The advancement of technology has led to an increase in consumers expressing their opinions online, making it easier for them to voice their dissatisfaction with a company. As consumers place significant importance on the experiences of previous customers with a product they are considering purchasing, it has become even more crucial for companies to manage negative online reviews in a smart and efficient manner. This study examines how companies can best utilize service recovery to manage negative online reviews. For the first time, this study focuses on the four elements: empathy and satisfaction, response, design and emojis, and communication, within the framework of service recovery.  Purpose: The purpose of this paper is to describe how consumers perceive that companies use service recovery to manage negative customer online reviews.  Methodology: This bachelor thesis aims to fill the gap in the existing literature by describing how consumers perceive companies to use service recovery to deal with negative online customer reviews. To reach this goal, a qualitative research approach has been used, where, among other things, six different semi-structured interviews have been conducted. To conduct the interviews, an interview guide has been developed and used. Purposive sampling was also used to select those participants who have some kind of experience with the subject and who can contribute relevant information to this study.  Findings: There were three different main findings in the bachelor thesis according to how to manage negative customer online reviews; operational actions, emotional responses and communication dynamics.  Conclusion: Participants in the study were positively affected by personal communication and genuine apologies from the companies, while automated and generic responses were perceived negatively. Prompt responses to criticism were important to maintaining customer satisfaction, while delays increased dissatisfaction. Emotional aspects, such as feeling understood and that the company took responsibility, contributed to a positive experience. Using emojis could create a relaxed and positive tone, but excessive use risked being perceived as dishonest. Finally, personal and engaged responses were appreciated, demonstrating corporate responsibility and helping to restore customer confidence.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-130309
Date January 2024
CreatorsLundell, Julia, Karlsson, Philip
PublisherLinnéuniversitetet, Institutionen för marknadsföring och turismvetenskap (MTS)
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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