To read the full version of this content please select one of the options below:

The effect of nWOM firestorms on South African retail banking

James Lappeman (School of Management Studies, University of Cape Town, Cape Town, South Africa)
Robyn Clark (School of Management Studies, University of Cape Town, Cape Town, South Africa)
Jordan Evans (School of Management Studies, University of Cape Town, Cape Town, South Africa)
Lara Sierra-Rubia (BrandsEye, Cape Town, South Africa)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 8 January 2021

Issue publication date: 8 June 2021

382

Abstract

Purpose

This study analysed the effect of online negative word-of-mouth (nWOM) firestorms in the retail banking sector. By understanding negative sentiment and sentiment recovery across an entire retail banking sector, the research exposed a unique view of banking in South Africa.

Design/methodology/approach

The study made use of both a sentiment and topic analysis of over 1.7 million social media posts in South Africa. The methodology made use of both NLP and human validation techniques to measure changes in social media sentiment during online firestorms. This measurement included each of South Africa's major retail banks over a twelve month period.

Findings

From the analysis, key trigger characteristics for these firestorms (product failures, service failures, social failures and communication failures) were categorised. In addition, the average duration of a firestorm was calculated and factors that impact sentiment recovery were explored.

Originality/value

The study was located in South Africa and, unlike firm level studies, researched nWOM for the whole retail banking sector. A theoretical footprint depicting the typical anatomy of a firestorm was derived in order to aid stakeholders to be more vigilant and better equipped to provide correct intervention in such times of crisis.

Keywords

Acknowledgements

The author specially thanks BrandsEye, who assisted the researchers in gathering the data necessary for this study.

Citation

Lappeman, J., Clark, R., Evans, J. and Sierra-Rubia, L. (2021), "The effect of nWOM firestorms on South African retail banking", International Journal of Bank Marketing, Vol. 39 No. 3, pp. 455-477. https://doi.org/10.1108/IJBM-07-2020-0403

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

Related articles