A Study of Perceived Negative Reviews and Managerial Responses on Online Review Forums: in a Restaurant Context

Abstract

Online reviews are emerging as a powerful source of information affecting future consumers’ pre-purchase evaluation of a restaurant organization. This trend has highlighted the need for a greater understanding of the impact of negative online reviews on consumer attitudes and effective managerial responses on online review forums. In view of this need, I investigate the influence of online negative reviews and managerial response on consumers’ evaluations of service quality which effects on visit intention, review intention and future review valence. An experimental design was used to examine the effects of four independent variables: types of unfairness, propriety of managerial responses, types of managerial response, matching types of managerial response with types of unfairness. The results suggest that types of unfairness have no relationship with consumers’ evaluations, visit intention and review intention unlike propriety of managerial responses. The findings highlight the importance of propriety of managerial responses and the need for managers to act promptly in addressing customer service problems.