| How should firms respond to negative reviews, or "anti-advertising," received via Twitter? Negative reviews on Twitter degrade a brand's reputation and represent negative advertising; the firm will choose its response to counteract the effect of the anti-advertising on its reputation. Brand reputation is especially essential in fast fashion, an industry designed to match quick response production capabilities with designs based on the latest consumer trends. I present a model describing why firms have an incentive to respond to negative online reviews. In order to empirically measure firm response, I collect and analyze tweets containing complaints about fast fashion brands. |
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