Online communication technology can reduce the physical and psychological costs of complaining, which in turn make consumers perceive themselves to have strong coping potential. As a result, consumers may engage in problem-focused coping in which they deal with the marketplace experience by voicing their displeasure directly to the target company. In this manner, marketers will gain the opportunity to retain the consumer both by redressing the problems and providing the opportunity for consumers to drain off their pent-up negative emotions.
A company that is able to increase its consumers’ coping potential may be in the best position to engage consumers in a one-to-one relationship. In other words, a key issue in attracting dissatisfied consumers to interact with the company may be altering perceived balance of power between the individual and the company (Stephens & Gwinner, 1998). Otherwise, consumers, left unattended, would find a way to punish the target firm. To this end, the online communication technology also grants consumers enormous potential in the retribution process.
In order to shift power perceptions, marketers need to actively communicate their responsiveness through all of their external communication (Stephens & Gwinner, 1998). Richins (1983, 1985, 1987) has consistently found that the choice between WOM and complaint behavior is influenced by perceptions of retailer responsiveness. Halstead & Droge (1991) also reported that the consumer’s perception of the responsiveness/caring of channel members (manufacturers especially) regarding problems and redress most consistently predicted CCB response. To communicate their responsiveness, marketers may advertise or make visible their responsiveness on all publicly viewed materials. In addition, by connecting with complaint Web sites which deliver consumers complaints to their partners such as planetfeedback.com, marketers may gain positive publicity about their responsiveness as well as access to vocal consumers. For example, planetfeedback.com is posting the companies that do a great job of responding to consumer letters.
Even though online WOM communication may function as an opportunity for marketers by providing access to vocal consumers, online WOM communication also presents considerable threats to marketers because it is difficult to manage. From consumer’s perspective, the relative anonymity of WOM may make the motivations of unseen strangers offering recommendations suspicious and therefore reduced trust in those complaint sites or online forums. In addition, the enormous amount of WOM information available online may be too much for consumers to process effectively.
Traditionally, attribution theory has been used to investigate the inferences that consumers draw from WOM activity with unfamiliar sources (Chatterjee, 2001). According to Hilton (1995), when negative information is presented regarding an object or event toward which a receiver maintains a positive attitude, the receiver will shift his or her impressions toward this contradictory information and experience cognitive imbalance. This cognitive imbalance will be subsequently overcome by the receiver’s attributing the negativity of the message toward the communicator. In the online environment, where the motivations of the communicator may be uncertain, this attribution tendency may go to a high extreme.
In a similar vein, Laczniak et al. (2001) suggested that brand name might have a direct effect on the attributions generated by receivers of negative WOM communication. They empirically demonstrated that the more favorable brand name reduced the persuasiveness of negative WOM communication because impression-inconsistent information was deflected away from the brand and discounted through the attribution process. In the online environment, Chatterjee (2001) found that the harmful impact of negative consumer reviews on perceived reliability of retailer and purchase intention were mitigated by the consumer’s familiarity with the retailer.
It seems that the evaluative predispositions toward products and companies are effectively acting as filters through which WOM information flows. Considering the characteristics of the online communication environment, the consumer’s predispositions toward brands may work more actively on the persuasiveness of online WOM information than information communicated through any other medium. Marketers may offset the harmful effects of online WOM communication by gaining high levels of equity for their brands.
Given the indispensability of traditional communication channels (e.g., telephone and letters), the variety of new channels (e.g., e-mail and Web sites), and the prospect for even more technology-based options (e.g., videophone), the need to find effective communication channels for consumer complaints and to manage a company’s resources on those channels is mounting. Unsupported communication channels may make dissatisfied consumers even angrier and give up voicing and, in turn, to actively engage in negative WOM. In addition, since it is necessary to monitor online WOM communication on a continual basis, the need to effectively allocate a company’s resources among consumer service functions is tremendous. Therefore, instead of following the latest fads, companies need to consider the characteristics of their business and the nature of their consumers in order to integrate online communication as a component of their consumer service strategically.
For example, online communication technology as a complaint communication channel may provide superb opportunities for those goods and services that could be embarrassing to discuss in person. Online communication as a lean media may reduce consumers’ psychological costs of complaining and discussing their product or service experience. Marketers of these types of products and services may allocate a large portion of their resources on managing online communication with consumers. In addition, online communication technology may provide excellent opportunities for companies to receive feedback from consumers in industries where the cost of direct consumer contact is prohibitively high (e.g., consumer packaged goods) (Bowman & Narayandas, 2001). Companies in this category would benefit by focusing more on managing online communications with consumers than other means of communication.
On the other hand, service providers may be in a more vulnerable position than product manufacturers in terms of online WOM communication. Dissatisfied consumers in the service industry are more likely to have non-instrumental motivations in complaining. For this reason, service providers may benefit from focusing on monitoring online WOM communication activities among consumers, being more proactive in seeking consumer feedback, and providing personalized responses to consumers.