I heard it through the grapevine: managing and engaging customers on the web

ABSTRACT

Social media and the Web have empowered consumers to share a myriad of information online about companies with reduced physical and psychological costs, rendering businesses responsible for acknowledging customer demands in order to obtain approval. In the face of such perceived scrutiny, this research investigates in two studies how proactive webcare can foster positive online interactions with customers as well as improve a firm’s presence on the web. Using a mixed method approach to explore these phenomena, findings indicate that small businesses believe that socially prescribed perfectionism has manifested in the online environment; however, the effective use of webcare is positively associated with the promotion of consumer-generated content sharing which positively influences engagement and online reputation management.