Maintaining Goodwill

in Bad News

Lecture 8
Bus251 AmTr
 Indirect Order: When to Use It?
• Indirect Order- Some preceding thoughts and
explanation before a message is presented.
• A bad-news message usually should use indirect
order
• Bad news is unpleasant. Preparatory words or
explanations ease the reader into the news.
• Some exceptions may remain depending on the
buyer seller relationship.
• However we will look at the general cases
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 The General Format: Indirect Order
1. Begin with a strategic buffer
• An opening that identifies the subject of the message
• Could be a neutral buffer (simple acknowledging that the
previous message was received)
• Or a positive buffer (Thanking for being a valued customer)
2. Set up the negative news
• There must be a reason why you are saying ‘no’
• Have an explanation so that by the time the negative arrives
your reader is already prepared for it.

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 The General Format: Indirect Order
3. Present the bad news positively.
• The bad news is now a logical outcome after the explanation
• Try to avoid the use of ‘second person’ when refusing and use
‘first/third person’
• ‘Since you have broken the seal, state law prohibits from taking
returns’ vs. ‘State law prohibits us from taking returns of broken
seals’

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 The General Format: Indirect Order
4. Offer an alternative solution
• If there is anything you can do to help- mention it
• Taking time to help the reader shows sincerity and goes to build
goodwill
5. End with goodwill, specifically adapted
• As for all other messages end with goodwill

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Click to edit
Different Master
Types title style
of Indirect Orders
• Indirect Order
• Refused Requests
• Credit Refusals
• Adjustment Refusals
• Negative Announcements
 Refused Requests & Format
The Refusal of a Request is definitely bad news. Your reader has asked for
something and you have to say no.
1. Begin with words that indicate that this is a response to a message, be
as neutral as you can.
2. Present your justification or explanation using positive language
3. Refuse clearly, using as much of a non-negative tone
4. Provide alternative solutions if possible
5. End with goodwill.

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 Refused Requests & Format
We compliment your work to provide a summer camp for young cancer patients. This is
indeed a worthy cause. Rather than donating to individual charities, however, our
employees donate through payroll donations to the United Way. We suggest that you
apply to that organization for additional funding.

Although we can't commit to monetary support at this time, when you are ready for
volunteer labor, a number of Doe employees are willing to help. We wish you much
success in this worthy cause.

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 Credit Refusals & Format
Credit is tied to personal characteristics, such as stability,
economic situation and trustworthiness. So, unless skillfully
handled, a credit refusal can be viewed as a personal insult.

1. Begin with words that lead up to the explanation (Such

as a Thank you for the request)
2. Present the explanation
3. Refuse tactfully
4. If applicable present alternatives
5. End with goodwill
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 Credit Refusals & Format
We appreciate your interest in obtaining a Doe's credit card. After carefully reviewing
your credit application, we have concluded that we cannot offer you a credit card at
this time. Although your work record is excellent and your income is sufficient to
qualify, several entries on your credit report show payments over 60 days delinquent.
In considering credit card applications, we hope to find no payments in the past year
that are over 30 days delinquent.
Doe's has a layaway plan, and we hope you will take full advantage of that service until
we can offer you credit. As you situation improves, please reapply for a Doe's credit
card. We greatly value your business.

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 Adjustment Refusals & Format
These are special type of refused requests. The reader
has made a claim for an adjustment/ a refund and the
claim is being denied.
1. Begin with words that are on the subject, neutral,
and that set up the message
2. Present the strategy that explains, put facts and
policies
3. Refuse clearly and as positively as you can
4. End with friendly and forward looking words

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 Adjustment Refusals & Format
Thank you for your letter about our Go Glow Torch and its non-functional switches. As per your
complaint we are supposed to repair or replace it as per the terms and conditions provided in the
warranty card. We totally agree with the terms and conditions offered by us.
However, we have found out that the Go Glow Torch purchased by you stands out of warranty as per our
records. We request you to go through the warranty card once again.

Once you are satisfied with our opinion we are willing to repair it for a fee of $20 if and when you want
to. Our representative will pick up the equipment from your place and deliver it within 24 hours.

Thanks for being in touch with us. We at Ramble Electronics strive constantly for the highest quality in
our products, and we appreciate your feedback.

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 Negative Announcements & Format
Occasionally businesses have to provide bad news to
customers or employees. (discontinuation of a product,
product price increase etc.)
1. Start with a buffer that sets up the explanation of the
bad news.
2. Cover the bad news as positively but clearly.
3. Help resolve any problem the bad news creates.
4. End with forward-looking, friendly words.

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 Negative Announcements &
Format-Needs Edit

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 Negative Announcements & Format

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