Handling complaints on social network sites – An analysis of complaints and complaint responses on Facebook and Twitter pages of large US companies

•We examine complaining behavior and complaint management on social media.•The majority of complaints deal with product and service related issues.•Organizational responsiveness is moderate.•Asking for further information is used most often, but does not enhance satisfaction.•Corrective action, thanking, and actively transferring enhance satisfaction.

Social media provide numerous possibilities for consumers and other stakeholders to voice their complaints about organizations in public. While this can damage the reputation of an organization, effectively handling complaints also bears considerable opportunities to win back complainants and to win over observers of the interaction. This study analyzes how large companies handle complaints on their Facebook and Twitter pages. Results reveal that the companies are not fully embracing the opportunities of social media to demonstrate their willingness to interact with and assist their stakeholders. Organizational responsiveness is only moderate, and companies often try to divert complainants away from the social network site. The most frequently applied response strategy is asking complainants for further information which does not appease complainants. Response strategies that foster complaint satisfaction are used less often. They comprise offering a corrective action, connecting the complainant with someone who can provide a problem solution and thanking the complainant.