Coalition Formation and Firm Representatives’ Answers to Complainers on Social Media: Their Interplay and the Coalition Ripple Effect

Abstract

We ask whether complaint answers by firm representatives depend on coalition formation—others taking sides with complainers or firm representatives—and whether coalition formation by third actors depends on complaint answers. An online field study revealed that, from the firm representative perspective, the 73.2% probability of a complaint answer in the absence of any coalition decreases to 10.9%–12.8% in the presence of a prior coalition with a firm representative or complainer. From the third actor perspective, the probability of the formation of a coalition with a firm representative decreases by one-third in the presence versus absence of a prior complaint answer; coalitions with complainers are not curtailed. Furthermore, a coalition with a firm representative shifts the average complaint answer from somewhat favorable to unfavorable, which facilitates coalitions with complainers, creating a coalition ripple effect. The results offer managerial guidance, as dissatisfying online complaint handling remains problematic