How to prevent negative online customer reviews: the moderating roles of monetary compensation and psychological compensation

Abstract

Purpose

This paper aims to clarify the effects of motivations on negative online customer reviews (OCRs) behavior in an integrative framework and to identify the moderating role of monetary compensation and psychological compensation in the Chinese food and beverage industry.

Design/methodology/approach

Data were collected from 377 consumers who posted a negative review online. Hierarchical regression analyses were used to test the research hypotheses.

Findings

The authors identified some characteristics of the consumers who posted negative online reviews in the Chinese food and beverage industry and found evidence that reveals the positive effects of emotional venting motivation and altruism motivation on posting negative customer online reviews. Economic motivation and self-enhancement motivation were not significantly connected to negative OCRs behaviors. Service recovery strategies can moderate the relationship between certain motivations and behaviors. The absence of psychological compensation will aggravate the influence of emotion venting motivation on consumers’ negative online reviews, while monetary compensation can restrain the influence of altruism motivation on negative online rating behavior.

Research limitations/implications

This paper did not explore the effect of the fairness and timeliness of service recovery on negative OCRs behavior. This paper did not consider the different restaurant types and customers' characteristics, and future research can test similar models with different and more diverse samples.

Practical implications

When implementing service recovery strategies, it is important to consider the psychological component of recovery. The absence of psychological compensation aggravates the influence of high levels of emotion venting motivation on consumers’ negative OCRs, leading to a lower rating, more word comments and negative photos. High levels of monetary compensation can restrain the influence of altruism motivation on negative online rating behavior.

Originality/value

The current paper contributes to the hospitality management literature by investigating the motivations behind consumer decisions to post negative OCRs in a food and beverage context. In addition, the moderating effect that service recovery strategies have on this relationship was also explored in depth.

Citation

Liu, J., Zhang, H., Sun, J., Li, N. and Bilgihan, A. (2020), "How to prevent negative online customer reviews: the moderating roles of monetary compensation and psychological compensation", International Journal of Contemporary Hospitality Management, Vol. 32 No. 10, pp. 3115-3134. https://doi.org/10.1108/IJCHM-04-2020-0334