Responding to negative online reviews: The effects of hotel responses on customer inferences of trust and concern

Our research examines the perceptions and evaluations of prospective customers toward an online negative review and any accompanying hotel response. The study explores two main issues: whether the presence (versus absence) of an organizational response to negative customer reviews affects the inferences potential consumers draw about the target business, and which aspects of responses affect their impressions. We test the effects of four variables associated with a response: source of response, voice of responder, speed of response, and action frame on two outcomes variables (i.e., customer concern and trust inferences). The provision of an online response (versus no response) enhanced inferences that potential consumers draw regarding the business's trustworthiness and the extent to which it cares about its customers. Using a human voice and a timely response yielded favorable customer inferences. Inferences did not vary with response source or action frame. Implications are drawn for effective management of negative online reviews.