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When Your Best Customers Become Your Worst Enemies: Does Time Really Heal all Wounds? Cover

When Your Best Customers Become Your Worst Enemies: Does Time Really Heal all Wounds?

Open Access
|Jul 2014

Abstract

Customer revenge and avoidance in the context of online complaints by the public are hot topics. This article helps managers to understand the phenomenon and to prevent damage. Do online complainers hold a grudge-in terms of revenge and avoidance desires-over time? Results show that time affects the two desires differently: although revenge decreases over time, avoidance increases over time, indicating that customers hold a grudge. Then, we examine the moderation effect of a strong relationship on how customers hold this grudge. Indeed firms’ best customers have the longest unfavorable reactions. This is called the love-becomes-hate effect. Specifically, over time the revenge of strong-relationship customers decreases more slowly, and their avoidance increases more rapidly, than for weak-relationship customers. Further, we explore a solution to attenuate this damaging effect: the firm offering an apology and compensation after the online complaint. Overall, strong-relationship customers are more amenable to any level of recovery attempt.

Language: English
Page range: 26 - 35
Published on: Jul 19, 2014
Published by: Nuremberg Institute for Market Decisions
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2014 Yany Grégoire, Thomas M. Tripp, Renaud Legoux, published by Nuremberg Institute for Market Decisions
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.