Consumer Complaints and Company Market Value



Document title: Consumer Complaints and Company Market Value
Journal: BAR - Brazilian Administration Review
Database: CLASE
System number: 000412629
ISSN: 1807-7692
Authors: 1
1
1
1
Institutions: 1Insper Instituto de Ensino e Pesquisa, Sao Paulo. Brasil
Year:
Season: Jul-Sep
Volumen: 11
Number: 3
Pages: 248-263
Country: Brasil
Language: Inglés
Document type: Revisión bibliográfica
Approach: Descriptivo
English abstract Consumer complaints affect company market value and common sense suggests that a negative impact is expected. However, do complaints always negatively impact company market value? We hypothesize in this study that complaints may have a non - linear effect on market value. Positive ( e.g. avoiding high costs to solve complaints) and negative ( e.g. speedy and intense diffusion) tradeoffs may occur given the level of complaints. To test our non - linear hypothesis, a panel data was collected from cell phone service providers from 2005 to 2013 . T he results supported our tradeoff rationale. Low levels of complaints allow for companies to increase market value, while high levels of complaints cause increasing harm to market value. The sample, model and period considere d in this study, indicates a level of 0.49 complaints per thousand consumers as the threshold for a shift in trad e offs. The effects on market value become increasingly negative when trying to make reductions to move below this level, due to negative tradeoffs
Disciplines: Administración y contaduría
Keyword: Administración de la producción,
Mercadotecnia,
Comportamiento del consumidor,
Quejas,
Atención al cliente,
Satisfacción del cliente,
Valor de marca,
Costo-beneficio
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