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

Get a Word in Edgewise: Post Character Limit and Social Media-Based Customer Service

2023 | HICSS | Citations: 0

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

Abstract: In this paper, we study the role of extending character limits on firm responses ... Expand

Abstract: In this paper, we study the role of extending character limits on firm responses on social media. By leveraging a natural experiment setting: the unexpected increase in post character limit on Twitter, we empirically investigate the impact on the linguistic styles of social media-based customer service responses. Using a Regression Discontinuity in Time Design and leveraging a panel dataset, our results suggest that extending character limits influences firm to change the linguistic styles in their responses which could influence consumers' perceptions. Our results show that extending post-character limits significantly reduces the readability ease of firm responses, on average, while increasing the concreteness and personal closeness scores of these responses, on average. We show that these changes were effective in influencing customer satisfaction. Collapse

Topics: social media Twitter customer service customer satisfaction user experience

Methods: instrumental variables estimation regression discontinuity design descriptive statistic regression analysis method robustness check

Theories: theory of affordance

Towards More Convenient Services: A Text Analytics Approach to Understanding Service Inconveniences in Digital Platforms

2023 | HICSS | Citations: 0

Authors: Amat-Lefort, N.; Barnes, S.

Abstract: In today's fast-paced world, where time is our most valuable asset, convenience ... Expand

Abstract: In today's fast-paced world, where time is our most valuable asset, convenience is on the rise. This trend has led to a huge growth in digital on-demand services, which target convenience-oriented consumers. Using big data and text analytics, we examine the impact of service inconveniences on customer satisfaction in the context of on-demand food delivery. Building on the Model of Service Convenience and Attribution Theory, we analyze 235,147 user-generated reviews via a combination of keyword-assisted topic modelling and cumulative link model analysis. We introduce the concept of Remote support inconvenience and identify the key topics related to each inconvenience. We find that all service inconveniences negatively influence satisfaction (especially cancelled orders and remote support incidences), and the effects are exacerbated when moderated by stability or controllability attributions. These insights contribute to our theoretical understanding of service inconvenience and can help platforms identify and improve critical areas of their services. Collapse

Topics: user satisfaction customer satisfaction mobile application user-generated content crowdsourcing

Methods: natural language processing topic model exploratory data analysis ANOVA parametric test

Theories: attribution theory

Artificial Intelligence as a Service: Trade-Offs Impacting Service Design and Selection

2023 | International Conference on Information Systems | Citations: 0

Authors: Brecker, Kathrin; Lins, Sebastian; Trenz, Manuel; Sunyaev, Ali

Abstract: AI as a Service (AIaaS) is a promising path to leverage AI capabilities from th ... Expand

Abstract: AI as a Service (AIaaS) is a promising path to leverage AI capabilities from the cloud. However, there is no one-size-fits-all service, but heterogenous service options since interdependent AIaaS characteristics require trade-offs. We lack knowledge on these tradeoffs and how they result from conflicting characteristics. Therefore, we interviewed 39 AIaaS providers, customers, and consultants to provide rich descriptions of interdependent characteristics and uncover resulting trade-offs and their consequences. This study contributes to a better understanding of the inner functioning and interplay of AIaaS characteristics and discusses how this complex nature of service offerings impacts providers' design and customers' selection decisions. Collapse

Topics: artificial intelligence cloud computing ease of use data protection economies of scale

Methods: qualitative interview design artifact constant comparative analysis qualitative coding triangulation

Theories: SERVQUAL core competency theory

A Theory-Driven Deep Learning Method for Voice Chat–Based Customer Response Prediction

2023 | Information Systems Research | Citations: 0

Authors: Chen, Gang; Xiao, Shuaiyong; Zhang, Chenghong; Zhao, Huimin

Abstract: As artificial intelligence and digitalization technologies are flourishing real- ... Expand

Abstract: As artificial intelligence and digitalization technologies are flourishing real-time, online interaction–based commercial modes, exploiting customers’ purchase intention implied in online interaction processes may foster huge business opportunities. In this study, we target the task of voice chat–based customer response prediction in an emerging online interaction–based commercial mode, the invite-online-and-experience-in-store mode. Prior research shows that satisfaction, which can be revealed by the discrepancy between prior expectation and actual experience, is a key factor to disentangle customers’ purchase intention, whereas black-box deep learning methods empirically promise us advantageous capabilities in dealing with complex voice data, for example, text and audio information incorporated in voice chat. To this end, we propose a theory-driven deep learning method that enables us to (1) learn customers’ personalized product preferences and dynamic satisfaction in the absence of their profile information, (2) model customers’ actual experiences based on multiview voice chat information in an interlaced way, and (3) enhance the customer response prediction performance of a black-box deep learning model with theory-driven dynamic satisfaction. Empirical evaluation results demonstrate the advantageous prediction performance of our proposed method over state-of-the-art deep learning alternatives. Investigation of cumulative satisfaction reveals the collaborative predictive roles of theory-driven dynamic satisfaction and deep representation features for customer response prediction. Explanatory analysis further renders insights into customers’ personalized preferences and dynamic satisfaction for key product attributes. History: Yong Tan, Senior Editor; Jingjing Zhang, Associate Editor. Funding: This work was supported in part by the National Natural Science Foundation of China [Grants 71971067 and 72271059] and the China Postdoctoral Science Foundation [Grant 2022M722394]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2022.1196. Collapse

Topics: customer satisfaction willingness to pay decision making marketing information system customer service

Methods: deep learning experiment machine learning BERT theory development

The Value of Social Media Customer Support During the Pandemic

2023 | HICSS | Citations: 0

Authors: Cheng, Huai-Tzu; Pan, Yang; Hirschheim, Rudy

Abstract: Many companies are utilizing social media as the primary avenue for customer ser ... Expand

Abstract: Many companies are utilizing social media as the primary avenue for customer service during the pandemic. However, how customers’ behaviors and interactions with customer service agents on social media are impacted by the lockdowns has not been well understood. In this study, we examine the impact of lockdowns and physical distancing on changes in customers’ behaviors, such as emotional expressions in tweets and customers’ satisfaction with social media customer service. Using a difference-in-differences research design, we find that with the lockdowns and physical distancing, customers expressed more negative emotions when tweeting the company they were having issues with. Surprisingly, compared to before the pandemic period, customers’ emotional expressions became more positive and they were more likely to express their satisfaction after interacting with customer service agents. Interestingly, our findings reveal that gender differences exist in these scenarios. We also discuss the theoretical and practical implications of these findings. Collapse

Topics: Twitter customer service social media pandemic customer satisfaction

Methods: experimental group two sample t-test with equal variance propensity score matching parametric test robustness check

The Cost of Free: The Effects of “Wait-for-Free” Pricing Schemes on the Monetization of Serialized Digital Content

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Choi, Angela; Rhee, Ki-Eun; Yoon, Chamna; Oh, Wonseok

Abstract: Leveraging a combination of analytical frameworks and empirical assessments, th ... Expand

Abstract: Leveraging a combination of analytical frameworks and empirical assessments, this study investigates the effects of wait-for-free (WFF) pricing schemes on the monetization of serialized, digital entertainment content, which has become increasingly pervasive on online platforms. WFF pricing is a strategy in which consumers are given the option to either wait a certain amount of time to acquire digital content at no cost or pay to consume it immediately. We evaluate the extent to which habit formation and presentbiased preferences driven by the consumption of addictive stock affect individual consumers' willingness to wait (or pay) for content, which, in turn, determines the efficacy of WFF pricing. We also examine the conditions under which consumers switch from waiting for free content to instantaneously purchasing content. Our findings indicate that WFF pricing increases the sales of serialized digital content, generating new demand from customers who would otherwise forgo participation in the market. In addition, the pricing design effectively generates sustained profits in the long run. We found that most consumers who initiate a purchase either upon initial market entry or upon switching continue to purchase as new episodes become available. Moreover, the results indicate that as a user accumulates free episodes of a specific series, given extended waiting periods, the likelihood of their conversion from a wait-for-free customer to an instant-purchase customer increases. In particular, WFF pricing effectively augments the willingness to pay of low-valuation consumers as habit formation builds up through time with the free consumption of serialized content. One free episode can elevate the likelihood of consumer purchase by up to 13%. However, as the number of free episodes consumed goes beyond a threshold, the likelihood of conversion decreases. We conclude with a discussion of managerial implications that can help content providers monetize their serialized digital content products. Collapse

Topics: price management consumer behavior advertising management digital good customer satisfaction

Methods: mathematical model robustness check econometric modeling proportional hazards model survival analysis

Theories: behavioral economics

Social Media Adoption, Usage And Impact In Business-To-Business (B2B) Context: A State-Of-The-Art Literature Review

2023 | Information Systems Frontiers | Citations: 0

Authors: Dwivedi, Yogesh K.; Ismagilova, Elvira; Rana, Nripendra P.; Raman, Ramakrishnan

Abstract: Social media plays an important part in the digital transformation of businesses ... Expand

Abstract: Social media plays an important part in the digital transformation of businesses. This research provides a comprehensive analysis of the use of social media by business-to-business (B2B) companies. The current study focuses on the number of aspects of social media such as the effect of social media, social media tools, social media use, adoption of social media use and its barriers, social media strategies, and measuring the effectiveness of use of social media. This research provides a valuable synthesis of the relevant literature on social media in B2B context by analysing, performing weight analysis and discussing the key findings from existing research on social media. The findings of this study can be used as an informative framework on social media for both, academic and practitioners. Collapse

Topics: social media business-to-business business-to-consumer marketing management Facebook

Methods: survey qualitative content analysis literature study regression analysis method personal interview

Theories: technology acceptance model motivation theory theory of task technology fit resource based view of the firm

Evolution of Referrals over Customers’ Life Cycle: Evidence from a Ride-Sharing Platform

2023 | Information Systems Research | Citations: 0

Authors: Fernández-Loría, Carlos; Cohen, Maxime C.; Ghose, Anindya

Abstract: Online platforms often ask their users to refer friends in exchange for a reward ... Expand

Abstract: Online platforms often ask their users to refer friends in exchange for a reward. This paper addresses how referral generation and referral value evolve throughout the customer’s life cycle as a function of service usage, experience level, and past referral behavior. Our analysis is based on a longitudinal data set that comprises the transactions and referral actions of 400,000 users in a ride-sharing platform over a year. The richness of our data set allows us to address two shortcomings from previous studies: modeling dynamic behavior (i.e., the relationship between past and future referrals) and accounting for unobserved heterogeneity across users. Our results show that users make more referrals when they have used the service recently and intensively. For example, users become 9% less likely to make referrals for each week they have not used the service. Furthermore, users make more high-value referrals as they become more experienced with the service. The referral generation and referral value of the top 10% most experienced users are more than 18% higher relative to when they first used the service. Finally, as users make more referrals, they become more likely to run out of friends to whom they can refer the service, leading to less referrals in the future. After users make their first referral, the probability of making additional referrals decreases by more than 78% and the value of subsequent referrals reduces by 19% on average. The results imply that platforms should consider tailoring their referral programs according to how referral generation and referral value evolve over time.History: Xiaoquan (Michael) Zhang, Senior Editor; Khim Yong Goh, Associate Editor. Collapse

Topics: ride sharing platform mobile application logistics management accounting marketing management

Methods: longitudinal research robustness check instrumental variables estimation regression analysis method Poisson regression

Theories: social contagion theory

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