ABSTRACT

In today’s business environment, consumer relationships are a prize to be sought. In fact, firms are actively seeking to establish, grow and capitalise on those relationships. Although good consumer-firm relationships can be extremely profitable, few recognise the potential costs and ramifications of poor, mismanaged or dysfunctional relationships. These potential costs are much broader than a reduction in purchase behaviours, and in some cases include negative word-of-mouth (WOM), misbehaviour and revenge. The widespread occurrence of the consumer revenge phenomenon is particu-

larly alarming. A Customer Rage Survey conducted in 2013 revealed that a significant number of customers are angry and the situation is worsening. In fact, the number of households reported experiencing ‘customer rage’ increased by eight percentage points from 2011 to 2013 (Customer Care Alliance, 2013). Consumers may now post their complaints online, call for boycotts, organise class-action lawsuits, along with a host of other options, all driven to hurt the firm. When consumers are dissatisfied, they have a wide range of responses available to them. Unfortunately, not a great deal of research has been conducted on these types of

behaviour. At one time consumers who participated in such behaviours were viewed as dysfunctional and abnormal. This type of consumer behaviour is becoming more widespread and must be understood. The consequences of these behaviours affect both consumers and firms. Typically these consumers are angry and as a result behave in ways that cost firms money and damage the consumer-firm relationship (Huefner and Hunt, 2000). Therefore, understanding this behaviour is in the best interest of firms. Researchers are working to answer the question of when and why consumers choose responses such as negative word-of-mouth, misbehaviour and revenge.