One Good Tweet Deserves Another: Essays on Firm Response to Positive Word of Mouth through Social Media

In two thematically related chapters, I explore the benefits incurred as companies actively respond to consumers who share positive word of mouth in digital environments (eWOM). This research takes a multi-method approach by first addressing the psychological impact of company response on the sharing consumer, followed by an examination of real behavioral consequences in a social media setting. Across six studies in Chapter 1, I find support for a conceptual model indicating that consumers who receive a company response to their positive eWOM experience greater satisfaction compared to no response, leading to increased intentions to engage in future positive eWOM on behalf of the company, both through social media and online review websites. Furthermore, I find that consumer perceptions of response personalization lead to judgments of company effort and that these two elements mediate the effect of response on consumer satisfaction. In Chapter 2, using a dataset of firm responses to positive consumer feedback on Twitter (tweets) from 79 apparel retailers, I find that company responses to positive consumer tweets can generate consumer engagement behavior in the form of continued interaction. Company responses that use consumer-oriented language increase the likelihood of consumer interactivity. However, this effectiveness depends on whether the consumer's audience is the company or their broader network of followers. I also show that, in some conditions, companies achieve higher consumer engagement by personalizing responses with the consumer's name. Together, the findings from these two chapters point to the need for companies to strategically practice positive eWOM management, both to promote consumer engagement behaviors and to avoid the negative outcomes associated with unresponsiveness.