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

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

The Effects of Digitally Delivered Nudges in a Corporate Wellness Program

2023 | Journal of the Association for Information Systems | Citations: 1

Authors: Babar, Yash; Curley, Shawn; Ke, Zhihong; Liu, De; Sheffler, Zachary

Abstract: We investigate how two digitally delivered nudges, namely light social support ... Expand

Abstract: We investigate how two digitally delivered nudges, namely light social support (nonverbal cues such as kudos or likes) and motivational messaging, affect employees' self-reported physical activity in an online, corporate wellness program. Within this unique field setting, using data from several years, we found evidence that both types of nudges provide benefits beyond the effect of cash incentives. However, the effects vary by individual, depending on whether the employee is actively engaging in physical activity, and by time, depending on how long the employee has been in the wellness program. We found light social support to be less effective over time, while motivational messages were found to be more effective with the duration in the program and generally more effective for physically inactive users. Our findings have implications for the design of wellness systems, suggesting different approaches depending on an employee's current activity level and tenure in the program.De Liu is a Xian Dong Eric Jing Professor of Information and Decision Sciences at the Carlson School of Management, University of Minnesota. He received his PhD from the University of Texas at Austin, and his master's and bachelor's degrees from Tsinghua University. His recent research interests include gamification, AI /augmented reality, internetbased auctions and market mechanisms, online reviews, and crowdfunding. His research has appeared in leading journals such as MIS Quarterly, Management Science, Information Systems Research, Journal of Marketing, Journal of Market Research, and Production and Operations Management. He has served as an associate editor for Information Systems Research and Journal of Organizational Computing and Electronic Commerce. He is also the academic director of the Business Analytics programs at the Carlson School of Management.Yash Babar is an assistant professor in the Department of Operations and Information Management at the University of Wisconsin-Madison. He received his PhD from the University of Minnesota in information and decision sciences and his bachelor's degree from BITS Pilani Goa. He researches the socioeconomic impacts of information systems exploring online-offline interactions in digital platforms like the gig economy, online communities, social media, and mobile fitness applications. His work has appeared in Information Systems Research and MIS Quarterly and at several international IS conferences. Collapse

Topics: mobile phone web forum intrinsic motivation user behavior

Methods: longitudinal research difference in differences Poisson regression propensity score matching robustness check

Theories: self determination theory

Privacy Regulation and Its Unintended Consequence on Consumption Behaviors: Evidence From CCPA

2023 | International Conference on Information Systems | Citations: 0

Authors: Bae, Donghwa; Mayya, Raveesh; Nian, Tingting

Abstract: This study explores the unintended consequences of data protection regulations ... Expand

Abstract: This study explores the unintended consequences of data protection regulations on consumer behavior. Specifically, we examine the California Consumer Privacy Act, which restricts companies from collecting Californians' personal information. Privacy regulations may limit firms' ability to suggest products aligned with consumers' taste predicted from data, potentially influencing subsequent consumer behavior. These regulations especially pose a challenge to digital platforms, as their success hinges on seamless data flow between firms and consumers. Using a difference-in-differences approach with transaction data, we find that post-CCPA, Californians reduce purchase by 4.1%, increase returns by 2.9%. Moreover, we find that Californians spend more time online and visit more webpages, potentially indicating increased search efforts. Mechanism analysis suggests that firms under CCPA proactively alter their data collection strategy to reduce the liability. These results reveal the complex interplay between privacy regulation and consumer behavior, highlighting the need for a nuanced understanding of the trade-offs between privacy protection and economic outcomes. Collapse

Topics: information privacy law legal context consumer behavior advertising management website

Methods: experimental group longitudinal research natural experiment archival research difference in differences

Caught in an Expectations Trap: Risks of Giving Securities Analysts What They Expect

2023 | Organization Science | Citations: 0

Authors: Bascle, Guilhem; Jung, Jiwook

Abstract: Although recent research shows that there is mounting pressure on firms to achie ... Expand

Abstract: Although recent research shows that there is mounting pressure on firms to achieve earnings expectations of securities analysts, firms are far from being passive conformers; many firms proactively manage such pressure, particularly with earnings management tools. Yet why does the pressure to meet analyst expectations persist despite firms’ efforts to reduce it? To address the question, we develop an intertemporal model of the mutually reinforcing relationships between analyst expectations and firms’ strategic response, combining the behavioral theory of the firm and the concept of expectations trap. We argue that firms’ efforts to meet analyst expectations strengthen their salience as a predominant performance benchmark and, in doing so, ironically put them under greater pressure from analysts in three sequentially related steps—escalating future earnings expectations, imposing more severe penalties for failure to meet heightened expectations, and generating compensatory action for missed expectations. Our analysis, using data on more than 700 of the largest listed U.S. firms between 1986 and 2015, supports our arguments. Our study expands the scope of the behavioral theory of the firm, by demonstrating the increasing importance of performance feedback based on analyst expectations. Our study also contributes to the research on earnings pressure, by illuminating why the pressure persists despite firms’ efforts to reduce or evade it, and finally to the literature on strategic management of external expectations, by elaborating its unintended, long-term consequences. Supplemental Material: The e-companion is available at https://doi.org/10.1287/orsc.2021.1569. Collapse

Topics: strategic management organizational productivity Generally Accepted Accounting Principles IS downsizing accounting

Methods: longitudinal research statistical hypothesis test Compustat descriptive statistic robustness check

Theories: behavioral theory of the firm institutional theory

Great Divisions: The Evolution of Polarization During the Man-made Emergency of January 6, 2021

2023 | HICSS | Citations: 0

Authors: Bhatt, P.; Vemprala, N.; Valecha, R.; Hariharan, G.; Rao, H.

Abstract: Polarization, which refers to the formation of opposing groups based on peoples ... Expand

Abstract: Polarization, which refers to the formation of opposing groups based on peoples' beliefs and opinions, is a phenomenon that has existed for eons. However, in the recent past, social media has caused a quantum change in the dynamics of polarization since beliefs may change almost instantaneously on social media because of unfolding events. We investigate social media communication that has resulted in polarized opinions among individuals prior to, during, and after a crisis event; the January 6th US Capitol riots. Analyses of the dominant narratives on Twitter surrounding the incident reveal a high level of polarization throughout the unfolding of the event, with increased polarization possibly attributable to the onset of the crisis. We also observe the evolution of the phenomenon: as the event unfolds, polarization changes. We suggest that understanding the evolution of polarization is important for timely crisis resolution by crisis managers. We utilize three measures, spread, distinctness and regionalization, to examine polarization during a crisis. Based on these measures our findings indicate that social media discussions exhibit an increase in the negative sentiment during the crisis as compared to precrisis, but there is a rebound in terms of positive sentiments emerging in the post crisis period. Also, the results signal reduced diversity in discussion topics during the crisis as compared to pre and post-crisis. Collapse

Topics: social media Twitter terrorist incident artificial intelligence application programming interface

Methods: topic model longitudinal research qualitative content analysis longitudinal survey cluster analysis

Fighting for the status quo: Threat to tech self-esteem and opposition to competing smartphones

2023 | Information & Management | Citations: 0

Authors: Cano Bejar, Arturo Heyner; Ray, Soumya; Huang, Yu Hsuan

Abstract: Users of rival technology platforms, such as Android-versus-iOS, often harbor ho ... Expand

Abstract: Users of rival technology platforms, such as Android-versus-iOS, often harbor hostile opposition to each other. The dominant perspective of technology resistance, conceptualized as technology inertia, cannot explain such strong oppositional behavior. We propose a threat to tech self-esteem construct that captures distinct threat perceptions and offers a unified explanation for oppositional intentions. We conducted an empirical study of smartphone users, where we find that the threat to technology self-esteem arises from distinct antecedents and offers a singular explanation for opposition. Moreover, we show the unintended consequences of employing lockin strategies and provide advice on why and how to mitigate them. Collapse

Topics: smartphone switching cost self efficacy Android iOS

Methods: survey partial least squares path modeling structural equation modeling cross sectional research statistical hypothesis test

Theories: reactance theory

Token Incentives in a Volatile Crypto Market: The Effects of Token Price Volatility on User Contribution

2023 | Journal of Management Information Systems | Citations: 0

Authors: Chen, Kun; Fan, Yifan; Liao, Shaoyi Stephen

Abstract: Crypto tokens, issued and managed via smart contracts, function as rewards in bl ... Expand

Abstract: Crypto tokens, issued and managed via smart contracts, function as rewards in blockchain systems to encourage user participation. Distinct from monetary incentives, token incentives are uncertain in reward magnitude due to the large swings in token prices on crypto markets. By focusing on token price volatility, this study investigates how the reward uncertainty affects user contribution in a tokenized digital platform. Our empirical setting is Steemit, a platform where bloggers write posts and share token rewards based on their posts' popularity. We find that while high token price volatility induces a large volume of blog posts, it diminishes post quality. The dichotomous effects are explained via two mechanisms: users' direct reactions to reward uncertainties and their indirect reactions, mediated by altered token preference amid volatility shocks. Deeply exploring this dynamic process, our results reveal that token price volatility facilitates a platform's network short-term effect but impairs long-term user creativity. Our empirical findings thus extend the literature on blockchain economics and cryptocurrencies and have practical implications for the design of incentive mechanisms on tokenized digital platforms. Collapse

Topics: blog blockchain digital platform cryptocurrency user behavior

Methods: longitudinal research instrumental variables estimation data transformation principal component analysis vector autoregression

Theories: motivation crowding theory

Introduction to the Minitrack on Crowd-based Platforms

2023 | HICSS | Citations: 0

Authors: Chen, Pei-Yu; Huang, Nina; Gu, Bin

Abstract: ... Expand

Abstract: Collapse

Topics: crowdsourcing crowdfunding platform worker social media online labor market

Methods: difference in differences natural language processing longitudinal research natural experiment machine learning

Theories: signaling theory theory of affordance lemon market theory