The increasing volume of online customer reviews of companies, products, and services requires organizations to carefully examine how they respond. The complex question of if and how firms should respond to online reviews and the effects of managerial response on future customer attitudes has limited systematic research available.
Professor T. Ravichandran, the Irene and Robert Bozzone ’55 Distinguished Professor in the Lally School of Management, presented his research on this current topic at the Copenhagen Business School as part of their “Renowned Scholars Seminar Series.”
His talk was based on his research with doctoral student Chaoqun Deng. Their research shows that electronic word of mouth, as signified by customer reviews in online forums, has grown in importance in terms of its influence on customer attitudes and purchase decisions.
The study concludes that managers should interact with consumers carefully in the review community in response to expressed dissatisfaction in order to restore that company’s reputation and brand image.