how to react as a company towards negative ugc to avoid a bigger company crisis
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
Welcome
Example negative user generated content
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
?
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
Differences in desired reactions between utilitarian / hedonic products?
Utilitarian products Hedonic products
Primary instrumental and functional
Fun, pleasure and excitement
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?”
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
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
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
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
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
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:
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
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
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.
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
Thank you for your attention!