Negative event about companies is widespread in media recently. Corporate image, trust and customer relationship of an organization can be damaged once negative media publicity is spread in the marketplace. How to restore damaged customer relationship becomes a critical task for management. This study examined effect of different repair tactics to repair corporate image and damaged relationship with customers after negative publicity. Effects of social account (apology, excuse, promise) and substantive actions (financial compensation, etc.) differ in different types of violation events. A combination of social account and substantive actions based on event characteristics may work better than using any single strategy. This study can help management effectively cope with the adverse impact of negative publicity. An efficacious combination of social account and substantive actions may maximize the effect of repair. Management of the companies should understand what the affected customers really need to figure out a most effective repair tactic.
Bottom, W. P., Gibson, K., Daniels, S. E., Murnighan, J. K. (2002). When talk is not cheap: Substantive penance and expressions of intent in the reestablishment of cooperation. Organization Science, 13(5), 497–513.
Crant, J. M., Bateman, T. S. (1993). Assignment of credit and blame for performance outcomes. Academy of Management Journal, 36(1), 7–27.
Desmet, P. T., Cremer, D. D., Dijk, E. V. (2011a). In money we trust? The use of financial compensations to repair trust in the aftermath of distributive harm. Organizational Behavior and Human Decision Processes, 114(2), 75–86.
Desmet, P. T., Cremer, D. D., Dijk, E. V. (2011b). On the psychology of financial compensations to restore fairness transgressions: When intentions determine value. Journal of Business Ethics (online), 11 Feb.
Dirks, K. T., Kim, P.H, Ferrin, D. L., Coope, C.D. (2011). Understanding the effects of substantive responses on trust following a transgression. Organizational Behavior and Human Decision Processes, 114, 87–103.
Gillespie, N., Dietz, G. (2009). Trust repair after an organization-level failure. Academy of Management Review, 34(1), 127–145.
Kim, P. H., Ferrin, D.L., Cooper, C. D., Dirks, K. T. (2004). Removing the shadow of suspicion: The effects of apology versus denial for repairing competence- versus integrity-based trust violations. Journal of Applied Psychology, 89(1), 104–118.
Kim, P. H., Dirks, K. T., Cooper, C. D., Ferrin, D.L. (2006). When more blame is better than less: The implications of internal vs. external attributions for the repair of trust after a competence- vs. integrity-based trust violation. Organizational Behavior and Human Decision Processes, 99, 49–65.
Nakayachi, K., Watabe, M. (2005). Restoring trustworthiness after adverse events: The signaling effects of voluntary ‘hostage posting’ on trust. Organizational Behavior and Human Decision Processes, 97, 1–17.
Poppo, L., Schepker, D. J. (2010). Repairing public trust in organizations. Corporate Reputation Review, 13(2), 124–141.
Riordan, C. A., Marlin, N. A., Kellogg, R. T. (1983). The effectiveness of accounts following transgression. Social Psychology Quarterly, 46(3), 213-219.
Sigal, J., Hsu, L., Foodim, S., Betman, J. (1988). Factors affecting perceptions of candidates accused of sexual and financial misconduct. Political Psychology, 9, 273-280.
Sitkin, S. B., Roth, N. L. (1993). Explaining the limited effectiveness of legalistic ‘remedies’ for trust/distrust. Organization Science, 4(3), 367–392.
Tomlinson, E. C., Dineen, B. R., Lewicki, R. J. (2004). The road to reconciliation: Antecedents of victim willingness to reconcile following a broken promise. Journal of Management, 30(2), 165–187.
Tomlinson, E. C., Mayer, R. C. (2009). The role of causal attribution dimensions in trust repair. Academy of Management Review, 34(1), 85–104.
Weiner, B. (1985). An attributional theory of achievement motivation and emotion. Psychological Review, 92(4), 548-573.
Wood, R. E., Mitchell, T. R. (1981). Manager behavior in a social context: The impact of impression management on attributions and disciplinary actions. Organizational Behavior and Human Decision Processes, 28, 356–378.
Xie, Y., Peng, S. (2009). How to repair customer trust after negative publicity: The Roles of competence, integrity, benevolence, and forgiveness. Psychology and Marketing, 26(7), 572–589.
Wan, L. (2016). Tactics to Restore Damaged Customer Relationship after Negative Events. International Journal of Academic Research in Business and Social Sciences, 6(6), 118-123.
Copyright: © 2016 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode