How to react as a company towards negative UGC to avoid a bigger company crisis

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Welcome

description

Presentation for a MSc degree in Marketing and Communication. Research question: “What would be suitable Coombs reaction strategies towards negative user generated content for hedonic and utilitarian products according to consumers and PR consultants?”

Transcript of How to react as a company towards negative UGC to avoid a bigger company crisis

Page 1: How to react as a company towards negative UGC to avoid a bigger company crisis

Welcome

Page 2: How to react as a company towards negative UGC to avoid a bigger company crisis

Example negative user generated content

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Possible impact of negative user generated content

User generated content: “data which is provided by

consumers who share their opinion or vision in an online setting”

Lower financial results

Company crisis

Negative user

generated content

?

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Coombs crisis communication strategies

Suitable for all

sorts products?Deny

strategy

Attack the accuser

Denial

Scapegoat

Diminish strategy

Rebuild strategy

Excuse

Justification

Compensation

Apology

provides insights how to handle in a crisis situations

Disrupts the perceived connection between a crisis and the organization.

Goal to lessen therelation between theorganization and the crisis

Organization takes its responsibility forthe crisis and asks for forgiveness

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Differences in desired reactions between utilitarian / hedonic products?

Utilitarian products Hedonic products

Primary instrumental and functional

Fun, pleasure and excitement

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Research question:

“What would be suitable Coombs reaction strategies towards negative user generated content for hedonic and utilitarian products

according to consumers and PR consultants?”

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Method: focus groups | interviews

• Three consumer focus groups• 5-8 persons per group• One hour each• Place: Twente University• Average age participants: 22• Almost all behavior sciences

students• Semi-structured conform topic-list

Function Age Women/men

CEO 40-50 M

Director 40-50 W

Director 30-40 M

Senior Consultant 40-50 M

Senior Consultant 30-40 M

Senior Consultant 30-40 W

Senior Consultant 30-40 M

Consultant 30-40 M

Consultant 20-30 W

Junior Consultant 20-30 M

Junior Consultant 20-30 M

• Eleven consultant interviews• Half hour each• Place: Ketchum BV Amsterdam• Semi-structured conform topic-list

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Stimulus material

• Manipulated two Facebook negative UGC messages (pre-test occured) • Distinction hedonic and utilitarian product• Concerning companies tagged in the messages

• Created Coombs reactions for both companies (pre-test occured) • All deny, diminish and rebuild strategies were covered

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Results

What if

Coombs

Main advices

How participants react

Their views on manipulated Coombs reactions

Participant’s main advices on how to react towards the negative UGC

messages

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What if… how participants react towards negative UGC messages

Reactions towards the consumer UGC message

RespondingNot respondingLike the post

Most of the consumers were not attached.

Responding when: It’s a good friend They are emotional attached Responding with: Humor CompassionNotes:

Not responding anymore when case is resolved by the company

Although most consumers do not react, the hedonic case can influence future consumer behavior

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Views on manipulated Coombs reactions

Deny strategy

Attack the accuser

Denial

Scapegoat

Diminish strategy

Rebuild strategy

Excuse

Justification

Compensation

Apology

Hedonic | UtilitarianUnprofessional

High virality

ClumsyHigh virality

ProblematicHigh virality

UnprofessionalHigh virality

UpsetHigh virality

Almost satisfied Low virality

Satisfied Low virality

UnprofessionalHigh virality

Clumsy High virality

DiscussionHigh virality

UnprofessionalSome virality

Not satisfiedLow virality

Almost satified Low virality

SuprisedLow virality

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Participant’s main advices on how to react towards an negative UGC message

To avoid a company crisis:• always react towards negative UGC• react quickly • react personal • show empathy • provide a solution or compensation• do not reveal in the open what the solution or compensation conceals• reveal the solution in private

1 Send a public response to the consumer offering some solution

2

3

Send a private message with a concrete solution

Eventually like the message of the consumer who indicates his or her satisfaction

Suggested 3 step approach:

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Participant’s main advices on how to react towards an negative UGC message

• Desired opening words of the company message• Be polite and warm

• Appropriate closure company message• Be personal. Part of online etiquette and it’s practical

• Take corporate image into account by reacting • Usage of humor in company reactions not expected • Key factor of success is listening

Corporate image Virgin vs ABN AMRO: a different approach

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Conclusion“What would be suitable Coombs reaction strategies towards negative user generated content for hedonic and utilitarian products

according to consumers and PR consultants?”

• For utilitarian products an instrumental approach is expected • For hedonic products experience and feeling is important

• Take legal issues into account offering public excuses

Rebuild strategy

“Be kind to the consumer to protect your brand”

CEO Ketchum Amsterdam

Compensation

Apology

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Practical implications

• Consumers want to be addressed personally • Consumers want to know who they are communicating with• Consumers expect a compensation for the caused damage, but

most important is that the company takes the customer seriously:

react quickly, show empathy and propose to continue the conversation in private to exchange personal details and

provide a suitable solution.

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Limitations

• Generalization • Role of the researcher

Factory Leonidas

Online shop Delivery

Factory Glorix Delivery Warehouse

supermarketPrivate delivery

Factory Albert-Heijn

Online shop Delivery

1. Usage of the same distribution chain2. Quantitative research based on these insights

| Recommendations

Casus 1

Casus 2

Casus 2 improved

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Thank you for your attention!