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An investigation into Social Media influence on Consumer Complaint Behaviour

Research Proposal

Name: Student ID: Seminar Leader: Dr Pinar Demir Course: Business Management (Marketing) Module: 6MARK009W Current Themes in Marketing Words Count: 1089

Table of Content

Introduction & Definition of Research Aim ………………………………………………………………… 2 Research Question ……………………………………………………………………………………………... 2 Literature Review ……………………………………………………………………………………………….. 2

- Consumer Complaint Behaviour …………………………………………………………………….. 2 - Social Media Influence on Consumer Complaint Behaviour …………………………………... 3 - Complaints Management ……………………………………………………………………………... 3

Methodology ……………………………………………………………………………………………………... 3 Time Scale ………………………………………………………………………………………………………... 4 Value of Research ………………………………………………………………………………………………. 4 References ……………………………………………………………………………………………………….. 5

1. Introduction & Definition of Research Aim Consumer Complaint Behaviour has interested marketers for many years, and it has greatly evolved

since the Internet became a part of people’s everyday life (Naylor, Williams, 2018). Digital platforms, including social media, have been commonly used by consumers to communicate both with each other and the companies they purchase products or services from. Therefore, social media as known today has significantly changed the way and the reason why consumers decide to have their complaints heard by business (Davidow, 2018). The aim of this research is to attempt to analyse how social media influences Consumer Complaint Behaviour in order to provide recommendations on how to manage complaints in social media to increase customer satisfaction and build customer loyalty profitably.

2. Research Question How does social media influence Consumer Complaint Behaviour?

Research Objectives - To identify factors that impact Consumer Complaint Behaviour - To analyse how social media influences Consumer Complaint Behaviour - To explore ways of managing Complaints in social media - To assess how managing Complaints in social media influences customers’ satisfaction level

3. Literature Review

3.1 Consumer Complaint Behaviour Consumer Complaint Behaviour has been of marketers’ interest for at least the last three

decades. Multiples research papers investigated different factors that influence consumers’ decisions on whether to complain or not in any given scenario (Dahl and Peltier, 2015). Some researchers discovered that many customers simply stop buying from the company or take part in the negative word-of-mouth instead of trying to return or exchange the product they are not happy with (Stephens and Gwinner, 1998; Blodgett and Anderson, 2000). Furthermore, a number of authors came to the conclusion that there are different situational variables that affect Consumer Complaint Behaviour. Chebat et al. (2005) believed that the “likelihood of complaint success” influenced customers’ behaviour. If customers trust the seller to respond to complaints, they are determined to make their complaints heard. In the opposite case they not only terminate any business with the seller, but also warn their family and friends not to interact with this company (Grégoire and Fisher, 2006). In addition, they would express their opinion about the company through negative reviews online (Pfeffer, Zorbach and Carley, 2014).

Other authors name different causes of Consumer Complaint Behaviour, including complainers’ characteristics. Phau and Baird (2008) believe that what influence the complaining behaviour is the prevailing sense of justice. They also point out that complainers are not likely to be conservative and that they would show positive attitude regarding complaints. Sharma et al. (2010) add that impulsivity

and high level of involvement encourage complaint behaviour in customers, while self-monitoring associates negatively with it.

3.2 Social Media Influence on Consumer Complaint Behaviour Social Media became a popular digital platform where consumers can publicly share their

positive or negative reviews directly with a seller or a service provider (Dahl and Peltier, 2015). According to Morgan (2017), 25% of complainers shared their negative experiences with companies through social media in 2016. Wide variety of digital platforms help those who want to complain to proactively reach a brand or service provider (Davidow 2018). Clay (2012), Dugan (2012) and Stieler (2016) agree that both consumers and firms manage social media profiles, and corporate Facebook and Twitter pages become easily accessible by consumers and are targeted by them when there is a need to complain. Additionally, Evans et al. (2014) state that companies use social media platforms actively to engage customers in a conversation.

Marketers name different reasons behind consumers’ decision to use social media platforms for complaints, including being altruistic and wanting to warn other consumers, expressing negative feelings or looking for an opportunity to have a revenge (Hennig-Thurau et al., 2004; Grégoire and Legoux, 2009; Sparks and Browning, 2010). Naylor (2017) agrees that altruistic reasons play a big role in the Complaint Behaviour formation, as well as refunds, products exchange or discount offer. As Bacile, Ye and Swilley, 2014 state in their research, consumers communicate with companies through social media platforms as they believe that there is“ some degree of ownership involved”.

3.3 Complaints Management Complaints that used to be seen as threats, have started to be considered more as opportunities.

According to Blodgett and Li (2007), complainers with a thirst for justice develop loyalty and shop with sellers more often if they are satisfied with the result of their complaint. Blodgett and Anderson (2000) and Matos et al. (2011) add that this kind of interactions encourage customers to participate in a positive word-of-mouth. Lang and Hyde (2013) agree that public complaint resolution through social media positively impacts both consumer loyalty and brand image. Davidow (2018) states that engaging complainers to co-create helps to keep customers satisfied and resolve issues profitably for the company. Stefura (2010) adds that such successful complaint management can become a differentiational factor for a company.

4. Methodology

It is proposed to conduct exploratory research as it allows to develop the initial ideas and discover directions for future research (Wilson, 2012). Its main benefits are low expenditure costs and low time-consumption. In order to do that, external secondary data collection will be required, using academic sources and professional journals, such as the Journal of Consumer Satisfaction, Dissatisfaction & Complaining Behavior. Various reliable sources have been discovered, which lets the researcher assume that secondary data collection is sufficient to get an insight into the topic.

The data collected through secondary research will be organised by topics and their relevance to the research aim. It will be analysed, and conclusions as well as suggestions for further research will be drawn (Bell et al., 2019).

The main limitations associated with the secondary data collection are that in the present case data was gathered for different purposes and may not be linked directly with this particular research question and objectives. Some of the information can be outdated. This is to be remedied by finding confirmations of particular frameworks still being used in the current discussion (Bradley, 2010).

5. Time Scale

6. Value of Research

The research offers insights into Customer Complaint Behaviour in Social Media and how it has changed in the digital era. There is a clear need in providing marketers with tools and frameworks to manage complaints in social media to benefit the company (Dahl and Peltier, 2015). The researcher hopes to assist marketers with that, while discussing better ways to build trust and loyalty amongst customers and keep their satisfaction level high. Taking into account that digital platforms have evolved and transformed drastically within a short period of time, continuous research is required to keep the knowledge relevant (Evans et al., 2014).

7. References

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Blodgett, J. and Li, H. (2007). Assessing the effects of post-purchase dissatisfaction and complaining behavior on

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Bradley, N. (2013). Marketing research. Oxford: Oxford University Press.

Chebat, J., Davidow, M., Codjovi, I. (2005), Silent Voices: Why Some Dissatisfied Consumers Fail to Complain?,

Journal of Service Research, 7 (4), 328-342.

Dahl, A. and Peltier, J. (2015). A historical review and future research agenda for the field of consumer satisfaction, dissatisfaction, & complaining behavior. Journal of Consumer Satisfaction, Dissatisfaction & Complaining Behavior 25: 5-25.

Davidow M. (2018) A Manager's Guide to Complaint Management. Journal of Consumer Satisfaction,

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Evans, D. and Cothrel, J. (2014). Social customer experience: engage and retain customers through social media.

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Hennig-Thurau, T. (2004). Customer orientation of service employees. International Journal of Service Industry

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