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Customer Complaints.pptx

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					  Customer Complaints 2.0: How
negative are online travel reviews?
              Dr. Ulrike Gretzel
   Laboratory for Intelligent Systems in Tourism
            University of Wollongong
             Social Media Use
• 78% of Australian Internet users sent or shared a
  photo in 2009.
• 75% of Australian Internet users have visited
  Facebook, while 59% have a Facebook profile.
• 41% of Australian Internet users have streamed or
  downloaded videos.
• 86% of Australians online are looking to fellow
  Internet users for opinions and information about
  products, services and brands.
 Online Travel Review Landscape
• Over 40 million travel reviews, 9 million photos
  posted and 41.6 million users a month on
  TripAdvisor
        CGM Use for Planning Most
       Recent Overnight Pleasure Trip
• 50% looked at/read comments and materials posted online by
  other travelers (compared to 50% in 2008) (% of US online
  travelers)
• Most popular types of CGM: travel reviews (70%), photos
  (54%), comments on blogs (25%), videos (23%), blogs (21%)
  and discussion forums (21%) (% of CGM Users)
• Most popular websites to find CGM for travel (% of CGM Users)
   –   Yahoo!Travel (43%)
   –   Online Travel agencies (30%)
   –   Facebook (20%)
   –   TripAdvisor (20%)
                How Much Influence Did
              CGM Have on Trip Decisions?
                                        Not sure        No influence     A little/moderate influence       A lot/sole of influence

                                                                                           28.4                        40.4
      Where you went                                                                       28.4
                                2.8
                                                                                   24.9                  34.5
How you traveled to the
                                                                                                                37.5
     destination                3
                                                                                          27.1
                                                                                                       34.3
    When you traveled                                                                                   34.9
                                    3.7
                                                                                                          35.4
                                                                                                                        41.2
          What you did
                                                                             21
                               2.4                                                                                                   49.2

     Where you stayed                                                                             32.5
                                                                  16.5
                              1.7
                                                                                                  31
                                                                                                                               45.6
        Where you ate                                                       20.4
                                    3
                                                                                     26.2
                                                                                                                  38.8
   Where you shopped                                                                       28.2
                                             6.7

                          0                        10                  20                  30                    40                   50
                          % of CGM Users
CGM Creation
         Travel CGM Creation
• Generational differences
• Cultural/ethnic differences
• Personality-based differences
     Anatomy of Travel Reviews
Review topics      Percentage        Review topics        Percentage
   Room                83.2          Length of stay           35.1
   Service             68.6              Facility             31.1
  Amenity              62.9            Destination            25.7
    Food               60.8          Transportation           24.4
                                      Reference to
  Location             60.7                                   23.3
                                        eWOM
 Behavioral
                       40.0              Health               18.7
 intentions
 Price/Value           36.1             Business              18.3

Sample: 983 online hotel reviews concerning hotel experiences in mainland
                                  China
Complaints
            Spreading the Love
The travel reviews posted are largely positive (40.6% have 5 as
score) TripAdvisor, 2008.
                                  Reviews are normally positive
                                  Bazaarvoice has previously found
                                  that the average rating in online
                                  reviews is 4.3 out of 5, and 87% of
                                  reviews left were generally positive.


                                  407 reviews that included a
                                  negative experience in a hotel in
                                  China -> average satisfaction rating
                                  still 3.48 (Jiang, Gretzel & Law,
                                  2010)
 Motivations to Post Online Travel
             Reviews




Percent of US Online Travellers Who Create Online Contents (2010)
         Double Deviation
MIT Sloan Management Review 2011:

• Most online public complaining takes place after a “double
  deviation”: an initial service failure followed by a series of failed
  efforts at recovery.
• A sense of betrayal, not mere dissatisfaction, fuels online public
  complaining.
• Online complainers tend to keep holding a grudge and seek to
  avoid the company permanently.
• Post complaint-recovery may stop vengeful actions (if done
  within 4 weeks) but does not increase likelihood to return as
  customer.
                   Issues
• Anonymous reviews
• False reviews (competitors, ad agencies)
• Review sites do NOT have sufficient
  mechanisms in place to detect false reviews
  (Stiftung Warentest, 2010)
              The Good News
• Most travellers are aware of the issues.
• Travellers have developed rather
  sophisticated strategies to judge the
  credibility of reviews:
     • Detail
     • Balance
     • Information about reviewer and trip context
• Able to detect false reviews better if longer.
             Opportunities
• Improvement and motivation potential
• Revenue potential if consumers comment on
  value
• Marketing potential – learn to speak the
  language of your customers
• Conversion potential if integrated on own
  website
                    How to Respond
• Time matters!
• Different types of customers seek different
  forms of resolution
  – Best customer: apology and recognition
  – Casual customer: monetary value
• Be sincere and specific
• Be professional!!!!
• Use it as a marketing opportunity
 Questions?
ugretzel@uow.edu.au

				
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