Brand Crisis and Customer Relationship Management on Social Media: Evidence from a Natural Experiment from the Airline Industry

2023 | Information Systems Research | Citations: 0

Authors: Al Balawi, Ramah; Hu, Yuheng; Qiu, Liangfei

Abstract: In this study, we investigate the effect of a brand crisis on the customer relat ... Expand

Abstract: In this study, we investigate the effect of a brand crisis on the customer relationship management (CRM) efforts of brands on social media. Despite the opportunities social media offers to brands to connect and engage with customers, it is still unclear how a brand crisis can change a brand’s social CRM efforts. Social media platforms can amplify the negative consequences of a brand crisis. However, the unique and public nature of social media platforms can offer new means for brands to handle a brand crisis and publicly manage their customer relationships. Compared with traditional CRM, social media enables brands to communicate with their customers publicly, which can strengthen their relationships with customers and maintain higher levels of customer engagement. Leveraging a natural experiment setting, we investigate the impact of the United Airlines crisis on three dimensions of social CRM efforts: informativeness, timeliness, and attentiveness. Contrary to traditional CRM efforts and recommendations, we find that the brand crisis increases informativeness efforts but reduces timeliness and attentiveness efforts.History: Yong Tan, Senior Editor; Beibei Li, Associate Editor.Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1159. Collapse

Topics: social media Twitter customer service customer satisfaction customer relationship management

Methods: mediation analysis longitudinal research robustness check natural experiment experimental group

The Consequences of Rating Inflation on Platforms: Evidence from a Quasi-Experiment

2023 | Information Systems Research | Citations: 0

Authors: Aziz, Arslan; Li, Hui; Telang, Rahul

Abstract: Informative online ratings enable digital platforms to reduce the search cost fo ... Expand

Abstract: Informative online ratings enable digital platforms to reduce the search cost for buyers to find good sellers. However, rating inflation, a phenomenon in which average rating increases and rating variance across listings decreases, threatens the informativeness of ratings. We empirically identify the consequences of rating inflation by conducting a quasi-experiment with a digital platform that exogenously changed its rating display rule in a treated neighborhood, which resulted in rating inflation. Using a differences-in-differences approach, we find that platforms benefit from one aspect of rating inflation: user purchases and seller sales increase because of the increased average rating. However, they also face negative consequences: rating inflation causes a decrease in user trial and a greater concentration of sales among popular restaurants. Overall, our results illustrate the potential consequences of rating inflation that platforms need to consider when designing and managing their rating system.History: Xiaoquan (Michael) Zhang, Senior Editor; Gordon Burtch, Associate Editor.Supplemental Material: The online appendices are available at https://doi.org/10.1287/isre.2022.1134. Collapse

Topics: digital platform mobile application word of mouth ease of use consumer behavior

Methods: experiment pilot experiment experimental group robustness check quasi experiment

Let Artificial Intelligence Be Your Shelf Watchdog: The Impact of Intelligent Image Processing-Powered Shelf Monitoring on Product Sales

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Deng, Yipu; Zheng, Jinyang; Huang, Liqiang; Kannan, Karthik

Abstract: We collaborated with a leading fast-moving consumer goods (FMCG) manufacturer t ... Expand

Abstract: We collaborated with a leading fast-moving consumer goods (FMCG) manufacturer to investigate how intelligent image processing (IIP)-based shelf monitoring aids manufacturers' shelf management by using data from a quasi-experiment and a field experiment. We discovered that such artificial intelligence (AI) assistance significantly and consistently improves product sales. Several underlying mechanisms were revealed by our quantitative and qualitative analysis. First, retailers are more likely to comply due to the greater monitoring effectiveness enabled by AI assistance. Second, the positive effect of IIP-based shelf monitoring partially persists after it is terminated, implying that human learning takes place. Third, the value of IIP-based shelf monitoring can be attributed to independent retailers rather than chain retailers. Since the degree of contract heterogeneity is the major difference between these retailers in terms of monitoring, this finding further suggests that AI is relatively more scalable when coping with more heterogeneous instances. Apart from these great benefits, we demonstrate the low marginal costs of implementing IIP-powered shelf monitoring, which indicates its long-term applicability and potential to generate incremental value. Our research contributes to several literature streams and provides managerial insights for practitioners who consider AI-assisted operational models. Collapse

Topics: artificial intelligence organizational value cost benefit analysis mobile application human AI collaboration

Methods: experimental group field experiment qualitative interview experiment quasi experiment

Economic Impacts of Platform-Endorsed Quality Certification: Evidence from Airbnb

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Dewan, Sanjeev; Kim, Jooho; Nian, Tingting

Abstract: We contribute to the emerging literature on quality certification by digital pl ... Expand

Abstract: We contribute to the emerging literature on quality certification by digital platforms by studying the launch of the Airbnb Plus service, wherein the platform inspects properties and provides a badge that presumably signals the quality of the property and the reliability of the host. Our identification strategy relies on the fact that the Airbnb Plus service was launched in different cities at different times, and listings within the cities received the certification at different times. Using a staggered difference-in-differences estimation strategy in conjunction with suitable matching methods, we found that the Airbnb Plus certification increased the weekly booking rate of Plus listings by about 6.8% on average (direct effect). We also found some evidence that non-Plus listings saw a temporary decline in booking rate when one or more nearby properties received a Plus certification (externality effect). The net impact of the Airbnb Plus service on the platform itself was an annual increase in revenue of about $37,500 for the average 2-kilometer zone in a U.S. city that included one or more Plus listings, as compared to matched zones without any Plus listings (local platform effect). We performed additional analyses, including a randomized experiment, to demonstrate the robustness of our findings. Overall, our results suggest that platform-endorsed quality certification has significant economic impacts-not just on the listings that receive the certification but on other listings on the platform as well as on the platform itself. Collapse

Topics: Airbnb website sharing platform peer-to-peer model Google+

Methods: experimental group experiment propensity score method product review robustness check

The Power of Identity Cues in Text-Based Customer Service: Evidence from Twitter

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Gao, Yang; Rui, Huaxia; Sun, Shujing

Abstract: Text-based customer service is emerging as an important channel through which c ... Expand

Abstract: Text-based customer service is emerging as an important channel through which companies can assist customers. However, the use of few identity cues may cause customers to feel limited social presence and even suspect the human identity of agents, especially in the current age of advanced algorithms. Does such a lack of social presence affect service interactions? We studied this timely question by evaluating the impact of customers' perceived social presence on service outcomes and customers' attitudes toward agents. Our identification strategy hinged on Southwest Airlines' sudden requirement to include a first name in response to service requests on Twitter, which enhanced customers' perceived level of social presence. This change led customers to become more willing to engage and more likely to reach a resolution upon engagement. We further conducted a randomized experiment to understand the underlying mechanisms. We found that the effects were mainly driven by customers who were ex ante uncertain or suspicious about the human identity of agents, and the presence of identity cues improved service outcomes by enhancing customers' perceived levels of trust and empathy. Additionally, we found no evidence of elevated verbal aggression from customers toward agents with identity cues, although a mechanism test revealed the moderating role of customers' emotional states. Our study highlights the importance of social presence in text-based customer service and suggests a readily available and almost costless strategy for firms: signal humanization through identity cues. Collapse

Topics: customer service Twitter social presence social media customer satisfaction

Methods: experiment computational algorithm synthetic control method survey support vector machine

Theories: social presence theory big five model

“Maybe You Should Talk to Someone”: The Role of Online Communities on Mental Healthcare

2023 | International Conference on Information Systems | Citations: 0

Authors: Ghosh, Soham; Chakraborty, Soumyakanti; Sharma, Megha; Susarla, Anjana

Abstract: Online Health Communities like YouTube offer mental health patients an alternat ... Expand

Abstract: Online Health Communities like YouTube offer mental health patients an alternative channel to learn about mental illnesses, the treatment path to follow, and to share their experiences. For many patients who are reluctant to seek professional help, a video on mental health uploaded by a content creator may serve as a substitute for a counsellor. Our work aims to develop an understanding of the relationship between language formality and social support and provide normative guidelines for content creators on social media platforms. Using two transformer-based deep learning classification models, we determine the degree of language formality or informality present in the content, and three dimensions of social support in the comments. We then utilize propensity score estimation to establish the causal effect of (in)formality on the dimensions of social support for 994 videos and 3,10,157 comments. Our findings indicate that informal speech increases emotional support, leading to better health outcomes. Collapse

Topics: YouTube social media electronic mail blog

Methods: deep learning RoBERTa BERT propensity score matching propensity score method

Theories: speech act theory

Reigniting the flame: Sustaining Usage Through Intermittent Releases of In-game Content

2023 | International Conference on Information Systems | Citations: 0

Authors: Ghosh, Shyam; Chakraborty, Soumyakanti

Abstract: Downloadable contents (DLCs) are additional in-game contents that developers r ... Expand

Abstract: Downloadable contents (DLCs) are additional in-game contents that developers release periodically to sustain the interest of users. In this paper, we study the effect of these DLC releases on the usage of a game by analysing actual usage data from 241 DLCs released over a period of 12 years. We use a quasi-experimental analysis to determine the effect on usage, and also investigate the effect of different DLCs categories on usage. We also study the effect of the different categories of game developers, indie and AAA, on the relationship between DLC release and usage. Results indicate that different categories of DLCs have distinct effects on usage. We also find that the release of DLCs of indie games have a greater impact on usage as compared to AAA games. We compare and contrast our results with the extant literature and provide insightful guidelines to game developers on managing DLC releases. Collapse

Topics: website free to play game usage intention missing data

Methods: experimental group usage data quasi experiment Student's t-test parametric test

Theories: theory of consumption value

When Images Backfire: The Effect of Customer-Generated Images on Product Rating Dynamics

2023 | Information Systems Research | Citations: 0

Authors: Guan, Yue; Tan, Yong; Wei, Qiang; Chen, Guoqing

Abstract: Customer-generated images (CGIs) on e-commerce platforms have been widely adopte ... Expand

Abstract: Customer-generated images (CGIs) on e-commerce platforms have been widely adopted as a promotional tool to persuade customers into purchases. Despite their prevalent applications, the effect of CGIs on customer postpurchase satisfaction has not been extensively examined. This study postulates that CGIs could cause expectation disconfirmation and reduce product uncertainty for customers, therefore making their effect on subsequent product ratings complex. We leverage multiple methods and data sets to gain a better understanding of this problem and underlying mechanisms. We employ a difference-in-differences model to empirically test our hypotheses and find that CGIs lead to a decline in subsequent ratings compared with product ratings not exposed to CGIs. Further heterogeneity analyses demonstrate that high CGI review rating and high aesthetic quality exacerbate the negative effect, whereas reviewer face disclosure could alleviate the negative effect. Through cross-product analyses, we find that the negative effect is more prominent for experience goods (e.g., women’s dresses) than for search goods (e.g., lightning cables). Finally, the underlying mechanism is further validated through a laboratory experiment that shows participants experience significantly higher expectation and more negative disconfirmation in the CGI group with high review ratings, whereas uncertainty reduction effect is insignificant, which collectively explains the decline of subsequent product ratings. These findings suggest that platforms and retailers should be aware of the potential negative effect of CGIs on the rating dynamics and take appropriate measures to circumvent it. History: Ravi Bapna, Senior Editor; Gordon Burtch, Associate Editor. Funding: This work was supported in part by National Science Foundation of China [Grants 72202220, 72172070, and 71729001]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1201. Collapse

Topics: online review experience good electronic commerce data breach digital good

Methods: experiment experimental group laboratory experiment computational algorithm product review

Fun Shopping: A Randomized Field Experiment on Gamification

2023 | Information Systems Research | Citations: 0

Authors: Ho, Yi-Jen (Ian); Liu, Siyuan; Wang, Lei

Abstract: Gamification utilizes game-like features to engage participants, widely implemen ... Expand

Abstract: Gamification utilizes game-like features to engage participants, widely implemented in a variety of contexts. Such an IT-enabled engagement strategy serves as a marketing device to boost sales and customer loyalty. This study focuses on two significant game elements (i.e., badges and leaderboards) that promote consumer motivations and social comparisons. To qualify the impacts, we conduct a randomized field experiment at one of the largest shopping malls in Asia. In the experiment, we contrast the two elements against coupons regarding various shopping outcomes. A two-period design (consisting of the treatment and posttreatment periods) identifies the long-term behavior changes after the treatment removals. The main results suggest that badging and leaderboarding promote sales by 21.5% and 22.5% in the treatment period, respectively, whereas couponing delivers a more potent effect of 31.7%. In the posttreatment period, the gamification impacts remain significant compared with the baseline, but the influence of couponing fades out. Besides, the additional analyses document the salient heterogeneous treatment effects across demographics. We further discover the substantial differences in the within-group heterogeneity across the treatments. Specifically, badging is a balanced tool for attracting the general public, whereas leaderboarding is a double-edged sword that could encourage self-reinforcing or self-banishing. Finally, gamification brings more explorations that lead to additional sales and engagements. Overall, the robust results can be translated into actionable strategies to utilize gamification proactively.History: Ravi Bapna, Senior Editor; Yili (Kevin) Hong, Associate Editor. Collapse

Topics: gamification wireless LAN consumer behavior technology adoption user interface

Methods: experiment experimental group survey randomized field experiment parametric test

Theories: motivation theory self determination theory

Identity and Status: When Counterspeech Increases Hate Speech Reporting and Why

2023 | Information Systems Frontiers | Citations: 0

Authors: Kim, Jae Yeon; Sim, Jaeung; Cho, Daegon

Abstract: Much has been written about how social media platforms enable the rise of networ ... Expand

Abstract: Much has been written about how social media platforms enable the rise of networked activism. However, few studies have examined how these platforms’ low-information environments shape how social movement activists, their opponents, and social media platforms interact. Hate speech reporting is one understudied area where such interactions occur. This article fills this gap by examining to what extent and how the gender and popularity of counterspeech in comment sections influence social media users’ willingness to report hate speech on the #MeToo movement. Based on a survey experiment (n = 1250) conducted in South Korea, we find that YouTube users are more willing to report such sexist hate speech when the counterspeech is delivered by a female rather than a male user. However, when the female user’s counterspeech received many upvotes, this was perceived to signal her enhanced status and decreased the intention to report hate speech, particularly among male users. No parallel patterns were found regarding other attitudes toward hate speech, counterspeech, YouTube, the #MeToo movement, and gender discrimination and hate speech legislation. These findings inform that users report hate speech based on potentially harmful content as well as their complex social interactions with other users and the platform. Collapse

Topics: YouTube social media legal context

Methods: survey experiment Student's t-test experimental group parametric test

Theories: communication theory