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The Implications of Third-Party Customer Complaining for Advertising Efforts

This paper critically assesses the impacts of third-party customer complaining and responsiveness on the efficiency and effectiveness of advertising. A sample of 180 businesses is analyzed using COMPUSTAT and Better Business Bureau (BBB) data. The results suggest that third-party customer complaining is associated with lower advertising efficiency and effectiveness in both goods and service industries. The results further indicate that responsiveness to third-party customer complaining by goods firms is negatively related to advertising effectiveness but does not lead to lower overall advertising efficiency in either goods or services industries. These findings suggest that practitioners consider the impacts of, and trade-offs involved with, third-party customer complaining and organizational responsiveness to third-party customer complaining when evaluating advertising strategies.