In the era of digital retailing, consumer-empowering technologies greatly facilitate the dissemination of complaint messages. Consumer audiences, who view consumer complaints and the subsequent responses made by retailers, consider these messages as critical information sources for decision-making (Weitzl & Hutzinger, 2017). We argue that retailers can use two types of response strategies (warmth- vs. competence-related response) to regulate the information distributed online, and that these strategies may influence consumer audiences’ perceptions and subsequent attitudes and behaviors differently based on their different levels of power (Rucker, Galinsky, & Dubois, 2012). Two experimental studies using a 2 (retailer response: warmth vs. competence) X 2 (audience power: low vs. high) between-subjects design were conducted. Study 1 (N = 240) revealed an interactive effect of power and retailer response on perceived diagnosticity and perceived fairness; and Study 2 (N = 233) showed that the significant moderated mediation for audiences’ perceptions on the relationship between retailer response X audience power and outcome variables. Theoretically, this study enriches the consumer complaint management literature from the perspective of consumer audience. It also sheds light on the power theory by validating its notion in the context of service failure and recovery. Practically, results demonstrate how retailers can effectively respond to negative consumer reviews to maintain customer relationship management with consumer audiences in digital age.

The popularity of visual communication in social network sites (SNS) can guide an important question about its effectiveness and the optimization for luxury brand advertising: How do visual communication messages via SNS work for consumer information processing and their evaluation of luxury hotels? To address this question, we examine consumer information processing in SNS in which visual communication messages work as narratives based on narrative transportation theory (Green & Brock, 2002; van Laer, Ruyter, Visconti, & Wetzels, 2014). Specific purposes are: (1) to identify key features of consumer information processing as narrative persuasion (i.e., narrative transportation), (2) to examine how consumers’ perceptions of fluency with visual messages (i.e., comprehension fluency and imagery fluency) influence the narrative persuasion process, and (3) to explore how the narrative persuasion process develops consumer responses with respect to positive affect and visit intention. First, we predict that increased fluency of information processing (comprehension fluency and imagery fluency) would increase narrative transportation. Second, increased narrative transportation would increase affective response and visit intention. Lastly, as for the two consequences, we predict that affective response would positively affect visit intention. A web-based survey was used for data collection. Measurement items of research variables were adapted from previous studies. A total of 193 usable responses were recruited from Amazon Mechanical Turk. Participants were directed to explore one randomly assigned luxury hotel Instagram page (Four Seasons or Ritz Carlton) and complete the questionnaire based on the experience. Results showed that comprehensive fluency, rather than imagery fluency, has significant impact on narrative transportation. Narrative transportation in turn influences affective response and visit intention; affective response influences visit intention. Additional tests suggest that narrative transportation and affective response play a mediating role in the narrative persuasion process. These findings highlight the power of narrative transportation in advertising for luxury brands, advising that marketers need to put efforts on enhancing visual storytelling in SNS communication.