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Abstract
In this study, we begin with the conjecture that the online feedback forum is important with regard to managing reputation and in attracting potential customers in the initial stage of unknown online stores. Using reference influences in marketing and existing information systems (IS) literature on the role of feedback in the electronic market, we developed hypotheses exploring the relations among pervious customers’ feedback in the online forum, successful complaint management against the negative feedback, and potential costumers’ initial trust toward online retailers. In an experimental study, we tested the hypotheses using 68 college students that visit a forged online retailer selling used notebook computers. Our results show that stores can recover from potentially damaged reputations through effective complaint management. The results also implicate that negative feedback adversely affects initial trust.
