Effects of Companies’ Responses to Consumer Criticism in Social Media

Social media is changing the power balance as well as the communication between manufacturers/retailers, its brands, and consumers. In this research we examine the effects of companies’ response to consumer criticism in social media. We found that a vulnerable response is perceived to be more appropriate and leads to more positive behavioral consequences compared to a defensive response without damaging product quality perceptions. This effect is moderated by brand personality and existing relationship strength. I submitted an abstract to ACR Asia conference. This paper is currently under second review at International Journal of Electronic Commerce.