The business value of online consumer reviews and management response to hotel performance

International Journal of Hospitality Management

Volumn 43, Issue , 2014, Pages 1-12

  Xie, Karen L ^a   Zhang, Zili ^b   Zhang, Ziqiong ^b  

^a UNIVERSITY OF DENVER   (United States)

^b HARBIN INSTITUTE OF TECHNOLOGY   (China)

Author keywords

Consumer reviews; Hotel performance; Management responses; Reputation management

Indexed keywords

EID: 84906219284     PISSN: 02784319     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijhm.2014.07.007     Document Type: Article

References (92)

1. Ayeh J.K., Au N., Law R. "Do we believe in TripAdvisor?" Examining credibility perceptions and online travelers' attitude toward using user-generated content. J. Travel Res. 2013, 52(4):437-452.
2. Baker W.E. When can affective conditioning and mere exposure directly influence brand choice?. J. Advert. 1999, 28(1):31-46.
3. Barsky J., Frame C. Handling Online Reviews: Best Practices 2009, http://cdn.tripadvisor.com/pdfs/ExpertTips_HandlingOnlineReviews.pdf.
4. Bronner F., de Hoog R. Vacationers and eWOM: who posts, and why, where and what. J. Travel Res. 2010, 50(1):15-26.
5. Cantallops A.S., Salvi F. New consumer behavior: a review of research on eWOM and hotels. Int. J. Hosp. Manage. 2014, 36:41-51.
6. Chatterjee P. Online reviews: do consumers use them?. Advances in Consumer Research 2001, vol. 28:129-133. Association for Consumer Research, Valdosta, GA.
7. Cheng V.T.P., Loi M.K. Handling negative online customer reviews: the effects of elaboration likelihood model and distributive justice. J. Travel Tour. Market. 2014, 31(1):1-15.
8. Chevalier J.A., Mayzlin D. The effect of word of mouth on sales: online book reviews. J. Market. Res. 2006, 43(8):345-354.
9. Chi C.G., Gursoy D. Employee satisfaction, customer satisfaction, and financial performance: an empirical examination. Int. J. Hosp. Manage. 2009, 28(2):245-253.
10. Chintagunta P.K., Gopinath S., Venkataraman S. The effects of online user reviews on movie box office performance: accounting for sequential rollout and aggregation across local markets. Market. Sci. 2010, 29(5):944-957.
11. Choi T.Y., Chu R. Determinants of hotel guests' satisfaction and repeat patronage in the Hong Kong hotel industry. Int. J. Hosp. Manage. 2001, 20(3):277-297.
12. Chu S.C. Determinants of Consumer Engagement in Electronic Word-of-mouth in Social Networking Sites 2009, (Doctoral Dissertation of the University of Texas at Austin).
13. Clemons E.K., Gao G., Hitt L.M. When online reviews meet hyperdifferentiation: a study of the craft beer industry. J. Manage. Inf. Syst. 2006, 23(2):149-171.
14. Cui G., Lui H.-K., Guo X. The effect of online consumer reviews on new product sales. Int. J. Electron. Commerce 2012, 17(1):39-57.
15. Dellarocas C., Zhang X., Awad N.F. Exploring the value of online product ratings in revenue forecasting: the case of motion pictures. J. Interact. Market. 2007, 21(4):23-45.
16. Deloitte Hospitality 2015: Game Changers or Spectators? 2010, http://www.deloitte.com/assets/Dcom-Chile/Local%20Assets/Documents/Nuevos/cl(es)hoteleria2015_080610.pdf.
17. Duan W.J., Gu B., Whinston A.B. Do online reviews matter? An empirical investigation of panel data. Decis. Support Syst. 2008, 45(4):1007-1016.
18. Duverger P. Curvilinear effects of user-generated content on hotels' market share: a dynamic panel-data analysis. J. Travel Res. 2013, 52(4):465-478.
19. Filieri R., McLeay F. E-WOM and accommodation: an analysis of the factors that influence travelers' adoption of information from online reviews. J. Travel Res. 2014, 53(1):44-57.
20. Ghose A., Ipeirotis P.G., Li B. Designing ranking systems for hotels on travel search engines by mining user-generated and crowd-sourced content. Market. Sci. 2012, 31(3):493-520.
21. Ghose A., Ipeirotis P.G., Li B. Examining the impact of ranking on consumer behavior and search engine revenue. Manage. Sci. 2013, Available at SSRN: http://ssrn.com/abstract=2264354.
22. Godes D., Mayzlin D. Using online conversations to study word-of-mouth communication. Market. Sci. 2004, 23(4):545-560.
23. Godes D., Mayzlin D. Firm-created word-of-mouth communication: evidence from a field test source. Market. Sci. 2009, 28(4):721-739.
24. Gretzel U., Yoo K. Use and impact of online travel reviews. Information and Communication Technologies in Tourism 2008, vol. 2:35-46. Springer-Verlag, Wien/New York.
25. Gu B., Ye Q. First step in social media: measuring the influence of online management responses on customer satisfaction. Prod. Oper. Manage. 2014, 23(4):570-582.
26. Herr P.M., Kardes F.R., Kim J. Effects of word-of-mouth and product-attribute information on persuasion: an accessibility-diagnosticity perspective source. J. Consum. Res. 1991, 17(4):454-462.
27. Ismail J., Dalor M., Mills J. Using RevPar to analyze lodging-segment variability. Cornell Hosp. Q. 2002, 43(6):73-80.
28. Jang S., Prasad A., Ratchford B.T. How consumers use product reviews in the purchase decision process. Market. Lett. 2012, 23(3):825-838.
29. Kee T. Majority of online shoppers check at least four reviews before buying. Online Media Daily 2008, (February). http://www.mediapost.com/publications/%3Ffa=Articles.showArticle%26art_aid=76727.
30. Kim E.E.K., Mattila A.S., Baloglu S. Effects of gender and expertise on consumers' motivation to read online hotel reviews. Cornell Hosp. Q. 2011, 52(4):399-406.
31. Kim M.J., Wang C., Mattila A.S. The relationship between consumer complaining behavior and service recovery: an integrative review. Int. J. Contemp. Hosp. Manage. 2010, 22(7):975-991.
32. Kirby C. Everyone's a critic: web sites hope online reviews of products lead to online buying. San Francisco Chronicle 2000, (January 22):E1. http://www.sfgate.com/business/article/EVERYONE-S-A-CRITIC-Web-sites-hope-online-2782075.php.
33. Lee M., Youn S. Electronic word of mouth (eWOM): how eWOM platforms influence consumer product judgment. Int. J. Advert. 2009, 28(3):473-499.
34. Lee Y.J. Exploring the economic values of online user ratings with advertising spending on box-office sales. Proceedings of WeB 2012 The 11th Workshop on e-Business 2012.
35. Leung D., Law R., van Hoof H., Buhalis D. Social media in tourism and hospitality: a literature review. J. Travel Tour. Market. 2013, 30(1-2):3-22.
36. Levy S.E., Duan W., Boo S. An analysis of one-star online reviews and responses in the Washington D.C., lodging market. Cornell Hosp. Q. 2013, 54(1):49-63.
37. Litvin S.W., Goldsmith R.E., Pan B. Electronic word-of-mouth in hospitality and tourism management. Tour. Manage. 2008, 29(3):458-468.
38. Liu S., Law R., Rong J., Li G., Hall J. Analyzing changes in hotel customers' expectations by trip mode. Int. J. Hosp. Manage. 2013, 34:359-371.
39. Liu Y. Word-of-mouth for movies: its dynamics and impact on box office receipts. J. Market. 2006, 70(3):74-89.
40. Lo A.S., Stalcup L.D., Lee A. Customer relationship management for hotels in Hong Kong. Int. J. Contemp. Hosp. Manage. 2010, 22(2):139-159.
41. Lockyer T. Understanding the dynamics of the hotel accommodation purchase decision. Int. J. Contemp. Hosp. Manage. 2005, 17(6):481-492.
42. Luca M. Reviews, reputation, and revenue: the case of Yelp.com 2011, Harvard Business School Working Paper 12-016, September 16, 2011.
43. Maheswaran D., Meyers-Levy J. The influence of message framing and issue involvement. J. Market. Res. 1990, 27(3):361-367.
44. Markopoulos P.M., Clemons E.K. Reducing buyers' uncertainty about taste-related product attributes. J. Manage. Inf. Syst. 2013, 30(2):269-299.
45. Martin J., Barron G., Norton M.I. Choosing to be uncertain: preferences for high variance experiences. London Business School Trans-Atlantic Doctoral Conference 2007.
46. Mattila A.S., Mount D.J. The impact of selected customer characteristics and response time on E-complaint satisfaction and return intent. Int. J. Hosp. Manage. 2003, 22(2):135-145.
47. Mauri A.G., Minazzi R. Web reviews influence on expectations and purchasing intentions of hotel potential customers. Int. J. Hosp. Manage. 2013, 34:99-107.
48. Maxham J.G. Service recovery's influence on consumer satisfaction, positive word-of-mouth, and purchase intentions. J. Bus. Res. 2001, 54(1):11-24.
49. Mccoll-Kennedy J.R., Sparks B.A. Application of fairness theory to service failures and service recovery. J. Serv. Res. 2003, 5(3):251-266.
50. Miniard P.W., Cohen J.B. Modeling personal and normative influences on behavior. J. Consum. Res. 1983, 10(2):169-180.
51. Moe W., Trusov M. The value of social dynamics in online product ratings forums. J. Market. Res. 2011, 48(3):444-456.
52. O'Connor P. User-generated content and travel: a case study on Tripadvisor.com. Inf. Commun. Technol. Tour. 2008, http://link.springer.com/chapter/10.1007/978-3-211-77280-5_5.
53. O'Connor P. Managing a hotel's image on TripAdvisor. J. Hosp. Market. Manage. 2010, 19(7):754-772.
54. Öǧut H., Taş B.K.O. The influence of internet customer reviews on the online sales and prices in hotel industry. Serv. Ind. J. 2012, 32(2):197-214.
55. O'Neill J.W., Mattila A.S. Hotel branding strategy: its relationship to guest satisfaction and room revenue. J. Hosp. Tour. Res. 2004, 28(2):156-165.
56. Park D.-H., Lee J., Han I. The effect of on-line consumer reviews on consumer purchasing intention: the moderating role of involvement. Int. J. Electron. Commerce 2007, 11(4):125-148.
57. Park S.-B., Park D.-H. The effect of low- versus high-variance in product reviews on product evaluation. Psychol. Market. 2013, 30(7):543-554.
58. Park S.-Y., Allen J.P. Responding to online reviews: problem solving and engagement in hotels. Cornell Hosp. Q. 2013, 54(1):64-73.
59. Papathanassis A., Knolle F. Exploring the adoption and processing of online holiday reviews: a grounded theory approach. Tour. Manage. 2011, 32(2):215-224.
60. Payne A., Frow P. A strategic framework for customer relationship management. J. Market. 2005, 69(4):167-176.
61. Petrick J.F. Are loyal visitors desired visitors?. Tour. Manage. 2004, 25(4):463-470.
62. Podsakoff P.M., MacKenzie S.B., Lee J.Y., Podsakoff N.P. Common method biases in behavioral research: a critical review of the literature and recommended remedies. J. Appl. Psychol. 2003, 88(1):879-903.
63. Racherla P., Friske W. Perceived 'usefulness' of online consumer reviews: an exploratory investigation across three services categories. Electron. Commerce Res. Appl. 2012, 11(6):548-559.
64. Racherla P., Mandviwalla M., Connolly D.J. Factors affecting consumers' trust in online product reviews. J. Consum. Behav. 2012, 11(2):94-104.
65. Ramanathan U., Ramanathan R. Guests' perceptions on factors influencing customer loyalty: an analysis for UK hotels. Int. J. Contemp. Hosp. Manage. 2011, 23(1):7-25.
66. Rancourt K. Managing Your Reputation Online: Customers Expect a Response 2013, http://www.pme360.com/blog/managing-your-reputation-online-customers-expect-a-response.
67. Reichheld F.F., Markey R.G., Hopton C. E-customer loyalty - applying the traditional rules of business for online success. Eur. Bus. J. 2000, 12(4):173-179.
68. Riegner C. Word of mouth on the web: the impact of Web 2.0 on consumer purchase decisions. J. Advert. Res. 2007, 47(4):436-447.
69. Sparks B.A., Browning V. The impact of online reviews on hotel booking intentions and perception of trust. Tour. Manage. 2011, 32(6):1310-1323.
70. Sparks B.A., Perkins H.E., Buckley R. Online travel reviews as persuasive communication: the effects of content type, source, and certification logos on consumer behavior. Tour. Manage. 2013, 39:1-9.
71. Sun K.-A., Kim D.-Y. Does customer satisfaction increase firm performance? An application of American Customer Satisfaction Index (ACSI). Int. J. Hosp. Manage. 2013, 35:68-77.
72. Sun M. How does the variance of product ratings matter?. Manage. Sci. 2012, 58(4):696-707.
73. TripAdvisor 24 Insights to Shape Your TripAdvisor Strategy 2013, http://www.tripadvisor.co.uk/TripAdvisorInsights/n2120/24-insights-shape-your-tripadvisor-strategy.
74. TripAdvisor TripAdvisor Now Offers 150 Million Reviews and Opinions with 50 Million Pieces of Content Posted in the Past Year 2014, http://ir.tripadvisor.com/releasedetail.cfm%3FReleaseID=827994.
75. Tirunillai S., Tellis G.J. Does chatter really matter? Dynamics of user-generated content and stock performance. Market. Sci. 2012, 31(2):198-215.
76. Trusov M., Bucklin R.E., Pauwels K. Effects of WOM versus traditional marketing: findings from an internet social networking site. J. Market. 2009, 73(5):90-102.
77. Verma R., Stock D., McCarthy L. Customer preferences for online, social media, and mobile innovations in the hospitality industry. Cornell Hosp. Q. 2012, 53(3):183-186.
78. Vermeulen I.E., Seegers D. Tried and tested: the impact of online hotel reviews on consumer consideration. Tour. Manage. 2009, 30(1):123-127.
79. Wei W., Miao L., Huang Z. Customer engagement behaviors and hotel responses. Int. J. Hosp. Manage. 2013, 33:316-330.
80. Wirtz J., Chew P. The effects of incentives, deal proneness, satisfaction and tie-strength on word-of-mouth behavior. Int. J. Serv. Ind. Manage. 2002, 13(2):141-162.
81. Wu J., Wu Y., Sun J., Yang Z. User reviews and uncertainty assessment: a two stage model of consumers' willingness-to-pay in online markets. Decis. Support Syst. 2013, 55:175-185.
82. Yang J., Mai E. Experiential goods with network externalities effects: an empirical study of online rating system. J. Bus. Res. 2010, 63(9-10):1050-1057.
83. Ye Q., Gu B., Chen W. Measuring the Influence of Managerial Responses on subsequent Online Customer Reviews - a Natural Experiment of Two Online Travel Agencies 2010, Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1639683.
84. Ye Q., Law R., Gu B. The impact of online user reviews on hotel room sales. Int. J. Hosp. Manage. 2009, 28(1):180-182.
85. Ye Q., Law R., Gu B., Chen W. The influence of user-generated content on traveler behavior: an empirical investigation on the effects of e-word-of-mouth to hotel online bookings. Comput. Hum. Behav. 2011, 27(2):634-639.
86. Yu R. Hotel managers monitor online critiques to improve service. USA Today 2010, (March 23). http://www.hospitalitynet.org/news/4045928.html.
87. Zajonc R.B. Attitudinal effects of mere exposure. J. Personal. Soc. Psychol. 1968, 9(2 Pt 2):1-27.
88. Zhang J.Q., Craciun G., Shin D. When does electronic word-of-mouth matter? A study of consumer product reviews. J. Bus. Res. 2010, 63(12):1336-1341.
89. Zhang Z., Ye Q., Law R. Determinants of hotel room price: an exploration of travelers' hierarchy of accommodation needs. Int. J. Contemp. Hosp. Manage. 2011, 23(7):972-981.
90. Zhang Z., Ye Q., Law R., Li Y. The impact of e-word-of-mouth on the online popularity of restaurants: a comparison of consumer reviews and editor reviews. Int. J. Hosp. Manage. 2010, 29(4):694-700.
91. Zhang Z., Zhang Z., Wang F., Law R., Li D. Factors influencing the effectiveness of online group buying in the restaurant industry. Int. J. Hosp. Manage. 2013, 35:237-245.
92. Zhu F., Zhang X. Impact of online consumer reviews on sales: the moderating role of product and consumer characteristics. J. Market. 2010, 74(2):133-148.