‘United Breaks Guitars’: Did It Really Cost The Airline $180 Million?

So to go along with the case study “United Breaks Guitars,” I found a article that reports that Carroll’s video has cost United Airlines $180 Million or 10% loss in market share. The article does not deal directly with social media but does show just how bad the impact of a video going viral can be for a company.  Lately we have been studying about the different causes and formulas as to how a video can go viral, but my question is, what if the story was different and Carroll had made this video praising United for their excellent customer service, would it have been such a hit in the Youtube world?  In my opinion, probably not.

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2 Responses to ‘United Breaks Guitars’: Did It Really Cost The Airline $180 Million?

  1. We’ll talk more about this tomorrow…

  2. zrose12 says:

    I agree with the article, I don’t believe that this incident and video are 100% the reason behind the stock price drop. However, the message was heard around the world and obviously the public’s opinion toward United was extremely negative. On the bright side, some companies can reverse their negative reputation by admitting their wrong and changing their ways. Look at Domino’s when they admitted their pizza was not right and have now reinvented their methods and are very successful.

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