Do managerial communications improve customer satisfaction and eWOM? The moderating effect of response authenticity

As customer reviews are becoming increasingly valued in the hotel industry, hotel managers are actively responding to customer reviews, and many researchers are investigating the effects of managerial responses. Previous studies, however, have mainly focused on open communication that takes place on social platforms or online travel agency (OTA) websites. Considerations about interaction contexts and specific response styles are also lacking. These limitations raise research questions, such as whether private interactions between managers and customers would be effective, whether the effect would differ between dissatisfied and satisfied customers, and what role the authenticity of managerial responses would play in these interactions. To address these questions, we investigated the effect of private managerial interactions. The effect of a managerial apology on customers' future satisfaction, the effect of a managerial "thank you" on customers' future electronic word-of-mouth (eWOM), and the moderating effect of response style (i.e., personalization and length) were examined. We analyzed data from a customer satisfaction survey in which customers leave feedback after their stay and hotel managers respond to each customer personally via email. Our results reveal that a private managerial apology increases customers' future satisfaction only when it is long or personalized. A private managerial "thank you" positively affects customers' eWOM in the next period. This research provides empirical evidence for the effect of private managerial interactions, extending the existing discussions on the effect of managerial responses to the private digital communication context. This research contributes to the research areas of managerial response, service recovery, and digital communications.

Saram Han, Christopher K. Anderson, Kyunghwa Chung