Examining how online store managers’ responses to negative reviews affect potential shoppers

We investigate the effect of online grocery shopping (OGS) business operators’ responses to negative online customer reviews (NOCRs) on prospective shoppers’ attitudes toward OGS. Previous research indicates online customer reviews (OCRs) affect purchasing decisions and trust. We consider the occurrence of NOCRs as a service failure and appropriate managerial responses (apology, compensation) as service recovery efforts. Equity theory suggests managerial responses affect perceived justice and generate trust, enhancing intention to use. A scenario-based experiment was conducted to examine the impact of managerial responses on prospective shoppers’ perceived justice, trust, and intention to use. The results revealed that an apology has a more significant effect on perceived justice than on compensation, influencing trust and intention to use. We defined NOCRs as service failures exposed to prospective shoppers and evaluated the effect of managerial responses on perceived justice. We provide practical implications for OGS by suggesting appropriate responses to NOCRs.