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Customer service 140 characters
at a time – the users’ perspective
   Ana Isabel Canhoto, Oxford Brookes University
   Moira Clark, Henley Business School




                     Canhoto and Clark, 2012
The problem




How should organisations respond when
customers’ post brand-related comments on SM?
                   Canhoto and Clark, 2012
Literature Review
• Satisfaction with response vs. satisfaction with
  transaction or relationship (Stauss, 2002)
• Disconfirmation paradigm (e.g., Oliver, 1980)
• Three dimensions (Johnston 2001):
             Access         Interac on            Outcome

• Positive vs. negative feedback
   – Brown et al (2005): Negative feedback driven mostly by
     satisfaction w/ product or transaction. Positive feedback
     mostly influenced by the customers’ identification with,
     and commitment to, the firm (over and above satisfaction)
                        Canhoto and Clark, 2012
Approach
• Exploratory
• Data collection:
  – SM
  – Snowball




                      Canhoto and Clark, 2012
Some of the companies mentioned




            Canhoto and Clark, 2012
Findings
            Negative                                    Positive
Interaction:                               Outcome:
-Consistency                               -Listening
-Human Touch                               -Care

Outcome:                                   Interaction:
-Speed of reply / problem solving          - Tone of voice
-…vs. alternative channels

Access:
-Integration with other channels


                           Canhoto and Clark, 2012
Conclusions and Implications
• Users expect companies to be present on SM,
  including non-business platforms (e.g., Facebook)
  • Users pull firms into SM; Absence is quickly noticed
• Companies expected to use the various SM
  platforms efficiently, working around their
  limitations.
  • Listening vs. conversation tools
  • Multichannel customer management structure
• Communication effectiveness
  • Match how sender uses the media with preferences
    of the receiver (Danaher & Rossiter, 2011).
  • Etiquette - e.g., hashtags, tags, etc.
                       Canhoto and Clark, 2012
Conclusions and Implications
• Strategic use of SM by customers
  • Most effective channel to communicate with the
    firm; Receiving extra service after praising firm
  • Prioritisation of SM creates perverse incentives
    and may lead to counter-productive behaviours
    from customers (Schrage, 2011)
• eWoM as firmly established public behaviour
  • Research gap: eWoM as source of customer
    insight or an opportunity for service recovery;
    specifically considering the high visibility of the
    interactions and the social benefits of eWoM
                       Canhoto and Clark, 2012
Conclusions and Implications
• Ambiguous role of SM as communications channel
   • Not owned or controlled by the firm => Mattila and Wirtz
     (2004): suitable to vent frustration
   • Highly interactive => Mattila and Wirtz (2004): best to seek
     redress
   • Research gap: Do customers perceive SM as remote or
     interactive channel? Effect on behaviour and
     expectations?
• Highly visible exchanges
   • Attempt to use for firm’s advantage - e.g., retweeting
   • May be seen as spam (Bajenaru, 2010) or attempt to bribe
     opinion leaders (Mason, 2008)
   • Research gap: Do SM users appreciate or resent the
     dissemination of their comments?
                         Canhoto and Clark, 2012
Customer service 140 characters
   at a time – the users’ perspective
Ana Isabel Canhoto                       Moira Clark
Oxford Brookes University                Henley Business School
www.anacanhoto.com                       www.hccmsite.co.uk
@canhoto                                 @moiraclark
adomingos-canhoto@brookes.ac.uk          Moira.Clark@henley.reading.ac.uk

                          Canhoto and Clark, 2012
References
•   Bajenaru, A. (2010). The Art and Science of Word-of-Mouth and Electronic Word-of-Mouth. Annals
    of the Oradea University - Fascicle of Management and Technological Engineering, IX(XIX)(1), 4.7-
    4.16.
•   Brown, T. J., Barry, T. E., Dacin, P. A., & Gunst, R. F. (2005). Spreading the Word: Investigating
    Antecedents of Consumers' Positive Word-of-Mouth Intentions and Behaviors in a Retailing
    Context. Journal of the Academy of Marketing Science, 33(2), 123-138.
•   Danaher, P. J., & Rossiter, J. R. (2011). Comparing perceptions of marketing communication
    channels. European Journal of Marketing, 45(1/2), 6-42.
•   Johnston, R. (2001). Linking complaint management to profit. International Journal of Service
    Industry Management, 12(1), 60-66.
•   Mason, R. B. (2008). Word of mouth as a promotional tool for turbulent markets. Journal of
    Marketing Communications, 14(3).
•   Mattila, A. S., & Wirtz, J. (2004). Consumer complaining to firms: the determinants of channel
    choice. Journal of Services Marketing, 18(2), 147-155.
•   Oliver, R. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction
    Decisions. Journal of Marketing Research, 17(4), 460-469.
•   Schrage, M. (2011, November). A Better Way to Handle Publicly Tweeted Complaints. Harvard
    Business Review.
•   Stauss, B. (2002). The Dimensions of Complaint Satisfaction: Process and Outcome Complaint
    Satisfaction Versus Cold Fact and Warm Act Complaint Satisfaction”. Managing Service Quality,
    12(3), 173- 183.
                                         Canhoto and Clark, 2012

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Social Media and Customer Service

  • 1. Customer service 140 characters at a time – the users’ perspective Ana Isabel Canhoto, Oxford Brookes University Moira Clark, Henley Business School Canhoto and Clark, 2012
  • 2. The problem How should organisations respond when customers’ post brand-related comments on SM? Canhoto and Clark, 2012
  • 3. Literature Review • Satisfaction with response vs. satisfaction with transaction or relationship (Stauss, 2002) • Disconfirmation paradigm (e.g., Oliver, 1980) • Three dimensions (Johnston 2001): Access Interac on Outcome • Positive vs. negative feedback – Brown et al (2005): Negative feedback driven mostly by satisfaction w/ product or transaction. Positive feedback mostly influenced by the customers’ identification with, and commitment to, the firm (over and above satisfaction) Canhoto and Clark, 2012
  • 4. Approach • Exploratory • Data collection: – SM – Snowball Canhoto and Clark, 2012
  • 5. Some of the companies mentioned Canhoto and Clark, 2012
  • 6. Findings Negative Positive Interaction: Outcome: -Consistency -Listening -Human Touch -Care Outcome: Interaction: -Speed of reply / problem solving - Tone of voice -…vs. alternative channels Access: -Integration with other channels Canhoto and Clark, 2012
  • 7. Conclusions and Implications • Users expect companies to be present on SM, including non-business platforms (e.g., Facebook) • Users pull firms into SM; Absence is quickly noticed • Companies expected to use the various SM platforms efficiently, working around their limitations. • Listening vs. conversation tools • Multichannel customer management structure • Communication effectiveness • Match how sender uses the media with preferences of the receiver (Danaher & Rossiter, 2011). • Etiquette - e.g., hashtags, tags, etc. Canhoto and Clark, 2012
  • 8. Conclusions and Implications • Strategic use of SM by customers • Most effective channel to communicate with the firm; Receiving extra service after praising firm • Prioritisation of SM creates perverse incentives and may lead to counter-productive behaviours from customers (Schrage, 2011) • eWoM as firmly established public behaviour • Research gap: eWoM as source of customer insight or an opportunity for service recovery; specifically considering the high visibility of the interactions and the social benefits of eWoM Canhoto and Clark, 2012
  • 9. Conclusions and Implications • Ambiguous role of SM as communications channel • Not owned or controlled by the firm => Mattila and Wirtz (2004): suitable to vent frustration • Highly interactive => Mattila and Wirtz (2004): best to seek redress • Research gap: Do customers perceive SM as remote or interactive channel? Effect on behaviour and expectations? • Highly visible exchanges • Attempt to use for firm’s advantage - e.g., retweeting • May be seen as spam (Bajenaru, 2010) or attempt to bribe opinion leaders (Mason, 2008) • Research gap: Do SM users appreciate or resent the dissemination of their comments? Canhoto and Clark, 2012
  • 10. Customer service 140 characters at a time – the users’ perspective Ana Isabel Canhoto Moira Clark Oxford Brookes University Henley Business School www.anacanhoto.com www.hccmsite.co.uk @canhoto @moiraclark adomingos-canhoto@brookes.ac.uk Moira.Clark@henley.reading.ac.uk Canhoto and Clark, 2012
  • 11. References • Bajenaru, A. (2010). The Art and Science of Word-of-Mouth and Electronic Word-of-Mouth. Annals of the Oradea University - Fascicle of Management and Technological Engineering, IX(XIX)(1), 4.7- 4.16. • Brown, T. J., Barry, T. E., Dacin, P. A., & Gunst, R. F. (2005). Spreading the Word: Investigating Antecedents of Consumers' Positive Word-of-Mouth Intentions and Behaviors in a Retailing Context. Journal of the Academy of Marketing Science, 33(2), 123-138. • Danaher, P. J., & Rossiter, J. R. (2011). Comparing perceptions of marketing communication channels. European Journal of Marketing, 45(1/2), 6-42. • Johnston, R. (2001). Linking complaint management to profit. International Journal of Service Industry Management, 12(1), 60-66. • Mason, R. B. (2008). Word of mouth as a promotional tool for turbulent markets. Journal of Marketing Communications, 14(3). • Mattila, A. S., & Wirtz, J. (2004). Consumer complaining to firms: the determinants of channel choice. Journal of Services Marketing, 18(2), 147-155. • Oliver, R. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions. Journal of Marketing Research, 17(4), 460-469. • Schrage, M. (2011, November). A Better Way to Handle Publicly Tweeted Complaints. Harvard Business Review. • Stauss, B. (2002). The Dimensions of Complaint Satisfaction: Process and Outcome Complaint Satisfaction Versus Cold Fact and Warm Act Complaint Satisfaction”. Managing Service Quality, 12(3), 173- 183. Canhoto and Clark, 2012