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The effect of geographical and personal proximity on online discussions of service failure incidents

ABSTRACT Online public discussions of service failure incidents might result in significant reputational damage for service providers. This study examines the geographical and personal proximity factors that contribute to public involvement in such discussions, using a high-profile incident that happened in a hotel of a popular Chinese budget chain as an example. A geographically weighted regression model is developed to illustrate spatial variations of public response at a prefecture division level. Economic development, area status, and presence of the service provider on the market are identified as significant predictors. This analytical approach can assist hospitality organizations in developing regionally-tailored image recovery strategies.