Critical Incidents in Customer-Firm Relationships

When consumers find that something critically out of the ordinary has occurred, they direct attention to evaluate such a critical incident more closely. The results of this evaluation may put consumers on a switching path or it might lead them to engage in unfavorable behaviors from the perspective of the organization, such as engaging in negative word-or-mouth online. The negative consequences of some product (goods or services) failures go beyond simple product attribute defects, leading customers to terminate the relationship with the organization. This dissertation, which is composed of three essays, investigates how consumers engage in negative word-of-mouth on social media channels in response to their various product failures and explores an important relationship event of betrayal, which can be triggered by certain product failures. It investigates how betrayal is perceived by customers and influences a range of their behaviors across business-to-consumer and business-to-business contexts.