The impact of online reviews on hotel booking intentions and perception of trust

A growing reliance on the Internet as an information source when making choices about tourism products raises the need for more research into electronic word of mouth. Within a hotel context, this study explores the role of four key factors that influence perceptions of trust and consumer choice. An experimental design is used to investigate four independent variables: the target of the review (core or interpersonal); overall valence of a set of reviews (positive or negative); framing of reviews (what comes first: negative or positive information); and whether or not a consumer generated numerical rating is provided together with the written text. Consumers seem to be more influenced by early negative information, especially when the overall set of reviews is negative. However, positively framed information together with numerical rating details increases both booking intentions and consumer trust. The results suggest that consumers tend to rely on easy-to-process information, when evaluating a hotel based upon reviews. Higher levels of trust are also evident when a positively framed set of reviews focused on interpersonal service.     

eWOM effects on hotel booking intentions,attitudes, trust,and website perceptions

The objective of the study is to examine the effect of comments generated on Facebook on the choice of a hotel. More specifically, it focuses on the study of the influence of comments written by Facebook friends on the intentions of booking a hotel, the trust in the hotel, the attitude toward the hotel, and the perception of its website. The research also examines the moderator role of Internet users’ trust in those comments on these relations. To test these effects, an experimental design was created by manipulating the valence of the comments (positive vs. negative). A survey among 800 university students has confirmed all the hypotheses of the study on the influence of comments generated on Facebook in the users’ decision-making process.     

Joint effects of management responses and online reviews on hotel financial performance: A data-analytics approach

Hotels are increasingly shifting their online review strategy from passive listening to proactive engagement through management responses. This study investigates the joint effects of management responses and online reviews on hotel financial performance. Based on a large unique dataset of 22,483 management responses to 76,649 online consumer reviews on TripAdvisor over 26 quarters, matched with quarterly hotel financial performance, this study finds that providing timely and lengthy responses enhances future financial performance, whereas providing responses by hotel executives and responses that simply repeat topics in the online review lowers future financial performance. Moreover, review rating and review volume moderate the effects of management responses. When the average review ratings increase, more management responses of greater length should be provided. As review volume grows, the benefits of providing timely and lengthy responses diminish. The study findings generate new implications for managing responses to online reviews to increase hotel financial performance.     

The impact of e-word-of-mouth on the online popularity of restaurants: A comparison of consumer reviews and editor reviews

With the growing availability and popularity of web-based opinion platforms, online product reviews are now an emerging market phenomenon that is playing an increasingly important role in consumer purchase decisions. Generally speaking, there are two types of online reviews: consumer-generated reviews that are based on personal experiences, and reviews that are written by professional editors. However, little prior research efforts have been devoted to evaluate whether these two types of reviews have different influences on the behavior of online users. This study shows that consumer-generated ratings about the quality of food, environment and service of restaurants, and the volume of online consumer reviews are positively associated with the online popularity of restaurants; whereas editor reviews have a negative relationship with consumers’ intention to visit a restaurant's webpage. The findings will help hospitality researchers and practitioners better understand the impact of electronic word-of-mouth on purchase decisions.     

Analysing reviews in the Web 2.0: Small and medium hotels in Portugal

This study presents a characterisation of online reviews for small and medium hotels (SMH) in Portugal. We collected and analysed 1500 online reviews from 50 SMH. The findings show that room, staff and location were the concepts most frequently appeared in the reviews, with cleanliness, friendliness, helpfulness, and centrality of position the terms most frequently used to qualify the concepts. This study points out the main features which SMH managers should prioritize.     

The effects of brand relationship quality on responses to service failure of hotel consumers

This article examines the applicability of Fournier's (1998) Brand Relationship Quality (BRQ) framework in the hotel industry, and also investigates the effects of BRQ on hotel consumers’ behavioral intentions, after service failures in high-class hotels. The empirical results show that BRQ is applicable to the hotel industry and has a moderating effect on consumers’ post-failure emotions, particularly in terms of influencing future behavioral intentions. However, this finding is not applicable when the service failures are severe.     

The signaling and reputational effects of customer ratings on hotel revenues: Evidence from TripAdvisor

This study aims to examine whether customer ratings and online reviews affect hotel revenues, and if so, to quantify the effects. To achieve this objective, we articulate the mechanisms grounded on reputation theories whereby customer ratings exercise the influence on hotel performance through reputational and signaling effects. Using customer rating data from TripAdvisor and hotel revenue data from Texas, we estimate fixed effects regressions and adopt a regression discontinuity design to separate the signaling effect of customer ratings from reputational effect. We found that the signaling effect of a 1-star increase is an increase of 2.2–3.0% in hotel monthly revenues whereas the reputational effect of a 1-star increase is an increase of around 1.5–2.3% in hotel monthly revenues. Our findings are robust across alternative model specifications and provide insightful implications for hotels to manage their customer ratings.     

Service quality and customer satisfaction: The moderating effects of hotel star rating

This research contributes to customer satisfaction knowledge with regard to accommodation in South Africa whose star grading differs. A multi-group analysis and an importance-performance map analysis by means of PLS-SEM allow us to differentiate between service quality performance scores and their influences on customer satisfaction across accommodation with a different star grading. The two most important predictors of satisfaction with one-star and two-star category accommodation are the accommodation infrastructure and the employee expertise. Both predictors were found to have relatively low levels of performance. Safety and security and room quality are two significant determinants of satisfaction with three-star establishments, although they under-perform with regard to safety and security. In respect of four-star and five-star accommodation, waiting time and customer interaction, both of which have above average performance scores, influence customer satisfaction. We provide specific guidelines for managerial interventions to improve service quality and guests’ satisfaction for each grading category.     

The effects of choice set size and information filtering mechanisms on online hotel booking

Online booking is one of the most popular ways of making reservations for hotel guests. Thus, hoteliers are paying increasing attention to hotel website information presentation and design. The purpose of this study, then, is to examine the joint influence of choice set size and information filtering mechanisms on consumers’ decision confidence towards online hotel booking. Choice set size was operationalized through 3-, 9-, and 30-hotel room choice sets. Through experimental design, this study shows that the presence of an information filtering mechanism reduces consumers’ perceptions of choice overload with a large number of choices (30 choices), whereas its impact is attenuated with smaller choice sets (3 and 9 choices). In addition, choice overload mediates the impact of choice set size on decision confidence. Theoretical contribution and managerial implications are also discussed.     

Trust and reputation in the sharing economy: The role of personal photos in Airbnb

‘Sharing economy’ platforms such as Airbnb have recently flourished in the tourism industry. The prominent appearance of sellers' photos on these platforms motivated our study. We suggest that the presence of these photos can have a significant impact on guests' decision making. Specifically, we contend that guests infer the host's trustworthiness from these photos, and that their choice is affected by this inference. In an empirical analysis of Airbnb's data and a controlled experiment, we found that the more trustworthy the host is perceived to be from her photo, the higher the price of the listing and the probability of its being chosen. We also find that a host's reputation, communicated by her online review scores, has no effect on listing price or likelihood of consumer booking. We further demonstrate that if review scores are varied experimentally, they affect guests' decisions, but the role of the host's photo remains significant.     

Negative affect,deep acting,and customer compensation as responses to customer mistreatment: The effect of customer-based perspective-taking

Customer service employees often deal with customer mistreatment, eliciting negative affect, which subsequently influences service performance. Using affective events theory (Weiss & Cropanzano, 1996) as the theoretical framework, perspective taking was examined as an intervention to influence negative affect elicited from customer mistreatment in two experiments. Study 1 examined and found that customer perspective taking led to less negative affect, and subsequently more customer compensation and more deep acting through serial mediation effects. Study 2 tested the moderating effect of the service failure locus of causality (i.e., hotel or customer). The most important theoretical contribution is understanding how having employees shift the focus away from their own emotions, towards why a customer is being rude or difficult, influences deep acting and customer compensation via reduced negative affect. This paper provides a promising intervention and training tool that hospitality organizations can use to influence employee service recovery strategies and customer service.     

The influence of guarantees,active requests to voice and failure severity on customer complaint behavior

Anecdotal evidence suggests that service guarantees and requests by service workers to complain encourage customers to voice following failure, while holding negative word of mouth and exit at bay. However, empirical support for these tactics is limited. To address this deficiency, we conducted an experiment examining the influence of these devices on customer complaint behavior (CCB) across restaurant failures of varying severity. Findings suggest that offering a guarantee, regardless of it being unconditional or combined, encourages voice. Failure severity had the strongest influence on CCB, and it interacted with both active request and guarantee type in influencing exit. Theoretical and managerial implications of the findings are discussed.     

To disclose or to falsify: The effects of cognitive trust and affective trust on customer cooperation in contact tracing

Contact tracing involves collecting people’s information to track the spread of COVID-19 and to warn people who have been in the proximity of infected individuals. This measure is important to public health and safety during the pandemic. However, customers’ concerns about the violation of their privacy might inhibit their cooperation in the contact tracing process, which poses a risk to public safety. This research investigates how to facilitate customers’ cooperative behavior in contact tracing based on cognitive trust and affective trust. The findings show that cognitive trust increases people’s willingness to disclose information and reduces their willingness to falsify it, whereas affective trust increases the willingness for both disclosure and falsification. This research contributes to the literature on customer data privacy by illuminating how cognitive and affective trust distinctly influence cooperative behavior, which has important implications for hospitality businesses.     

From measurement scale to sentiment scale: Examining the effect of sensory experiences on online review rating behavior

The crucial role of sensory dimensions in customer experiences has been supported in literature. However, traditional self-reported sensory measurements have limited capacity in capturing the multi-dimensional experiences sensed by individuals and articulating the distinct effect of different sensory dimensions on actual behavior. This study is the first attempt to test the effects of positive and negative experiences involving all five senses (sight, smell, sound, taste, and touch) on customer ratings. The sensory experiences reported in social media reviews were captured and explored using text mining and sentiment analysis. The findings show that although the majority of customers’ experiences were positive, the negative sensory experiences had higher effect on customer rating. Furthermore, the five senses had different weights in forming overall experience, which provides theoretical contributions to the literature on sensescapes, prospect theory, and discourses on satisfiers and dissatisfiers.     

Severe service failures and online vindictive word of mouth: The effect of coping strategies

This study proposes an integrative model that investigates the role of coping strategies in the relationship between severe service failures and online vindictive word of mouth (OVWOM) behavior. While the mechanism of online negative word of mouth (ONWOM) have been widely studied, the underlying processes by which OVWOM develops remain unclear, specifically when it comes to the use of OVWOM as a coping mechanism. Achieving a better understanding of the mechanism by which OVWOM develops is important given its potential to significantly harm a firm’s image, loyalty and market share. The results of a survey of restaurant customers confirm the role of the psychological and situational factors that result in OVWOM behavior as a strategy to cope with severe service failures. Accordingly, this study provides an initial response to calls for research on the role of situational and personal factors that explain retaliation behavior in response to severe service failures.     

The effects of consumer experience and disconfirmation on the timing of online review: Field evidence from the restaurant business

This study investigated the effects of consumer experience and disconfirmation on the timing of online reviews. Based on a unique dataset of restaurant reservations and online reviews, the empirical results indicate that (1) there is a reverse U-shaped relationship between consumer experience and online review posting timing, i.e., consumers who have strongly dissatisfying or satisfying experiences tend to post online reviews earlier than consumers who have moderate experience; (2) the disconfirmation between a customer’s experience and the average rating of prior reviews has a negative effect on his or her online review posting speed; and (3) the effect of disconfirmation on review posting speed is substantial for consumers who have strongly dissatisfying or satisfying experiences, while it is weaker for consumers who have moderate experience.     

Consumers’ responses to ambivalent online hotel reviews: The role of perceived source credibility and pre-decisional disposition

Electronic word-of-mouth (eWOM) is prevalent in today's lodging market and has potential to influence consumers’ decision making. This study investigated how the presence of online reviewers’ personal identifying information (PII) may affect consumers’ processing of ambivalent online hotel reviews and hotel booking intentions. The results of an experiment with a sample of 274 undergraduate students indicate that the presence of PII positively affects the perceived credibility of the online reviews. When coupled with ambivalent online reviews, the presence of PII significantly lowers consumers’ hotel booking intentions.     

The Impact of Restaurant Service Experience Valence and Purchase Involvement on Consumer Motivation and Intention to Engage in eWOM

This study examines how different service experiences lead to different motives and intention to spread eWOM (electronic word-of-mouth), focusing on the antecedent roles of restaurant service experience valence and purchase involvement. The findings reveal that consumers are motivated to spread eWOM for self-, other-, and company-focused reasons, and that experience valence and purchase involvement significantly impact such motives. Our findings suggest that highly involved customers have more intentions to provide eWOM following negative experiences and that customers receiving negative experience hope to influence companies through eWOM. This article adds to the body of scholarly research related to eWOM by identifying purchase involvement and service experience as significant antecedents of motivation to provide online reviews.     

The effects of SARS on the Korean hotel industry and measures to overcome the crisis: A case study of six Korean five-star hotels

The major objectives of this study were: (1) to discuss the impact of the SARS outbreak on the Korean hotel industry; (2) to explore how the crisis management contingency concept was implemented by the Korean hotel industry during this crisis; (3) to examine what the implications are for managers in the hotel industry. Results of this study indicate that the SARS outbreak had an adverse impact on the Korean hotel industry. During the six months affected by the SARS outbreak, the Korean hotel industry tried to minimize operating costs and offered employees education programs concerning health awareness, training and operating new hygiene equipment. This study is expected to provide lessons from the experience of the Korean hotel industry during the SARS-affected period.     

如何从共毁走向共生?——定制化旅游价值共毁和价值恢复对口碑传播的影响

价值共创的研究话题已受到学术界广泛关注,但越来越多的企业发现价值共创并非总是成功的。基于价值共创的负面视角--价值共毁,探讨价值的协同破坏机制及其影响的实证研究有待深入。文章以资源保存理论为基础,探讨价值共毁对负面口碑传播的影响,检验顾客失望的中介作用以及价值恢复类型的调节作用。文章以定制化旅游服务为实验情境,实验结果发现:(1)价值共毁类型在负面口碑传播上存在显著差异,相对于顾客引发的价值共毁,企业引发的价值共毁对负面口碑传播的影响关系更强;(2)顾客失望在价值共毁类型与负面口碑之间起完全中介作用;(3)价值恢复措施的不同类型调节了顾客失望的中介关系强度,当企业单独恢复价值时,企业引发价值共毁(相比于顾客引发价值共毁)会产生更少的顾客失望进而降低负面口碑。当企业与顾客共同恢复价值时,顾客引发价值共毁(相比于企业引发价值共毁)会产生更少失望进而降低负面口碑。最后对研究结论进行讨论并提出了管理启示。