The impact of language style on consumers′ reactions to online reviews

The current research examines the novel impact of an online review's language style (figurative vs. literal) on consumers' attitudes towards a hotel and their reservation intention. Previous marketing research advocated for the use of figurative language to advertise hedonic consumptions. Yet, we found that, in the context of online hotel reviews, figurative language doesn't offer significant advantages in terms of persuasive power. Specifically, our findings indicate that, when a review is posted by a reviewer with low expertise level, consumers actually exhibit lower levels of attitude and reservation intention if the review is written in figurative (vs. literal) language. When the reviewer possesses high expertise level, the language style effect was attenuated. Finally, serial mediation tests show that the causal link between language typicality → perceived reviewer expertise explains the language style effect on consumers' pre-purchase evaluations.     

Effects of restaurant franchising: Does an optimal franchise proportion exist?

Franchising has significantly affected the US economy, contributing to a rapid growth of its retail sales. To identify whether franchising influences a restaurant firm's financial performance, this study investigated (1) the profitability and intangible values of both franchise and non-franchise restaurant firms and (2) the effect of the combination of franchised and company-owned outlets of restaurant firms (i.e., franchise proportion). The results of this study showed that (1) franchise firms had significantly higher profitability than non-franchise firms and (2) the relationships between franchise proportion and firm profitability and intangible value were curvilinear (inverted U-shape), verifying the existence of an optimal franchise proportion. The results propose a possibility that restaurant franchisors could maximize their profitability and intangible value with an optimal franchise proportion when other variables held constant, implying that it is important to pay attention to the franchise proportion together with other management strategies.     

Do consumers care about CSR in their online reviews? An empirical analysis

This research investigates how consumers assess hotels’ corporate social responsibility (CSR) practices when writing online reviews. The study explores the CSR discourse in online reviews over a 10-year period, highlighting how CSR’s social and environmental dimensions relate to the main hospitality topics (experience, amenities, location, transactions, value). Based on a longitudinal automated text analysis covering 480,000 reviews across six European cities, the findings reveal that hotel customers have gradually begun paying more attention to CSR factors, particularly to social and environmental ones. However, the aggregate results suggest that the overall CSR consumer discourse is still very limited, although it does have important implications in terms of consumer emotions and hospitality dimensions.     

The effect of online restaurant menus on consumers’ purchase intentions during the COVID-19 pandemic

As COVID-19 escalated globally in 2020, mandated suspension of dine-in services was instilled to control virus transmission. Restaurants lost billions of dollars, millions experienced severe employment changes, and numerous small restaurants closed. For those remaining in business, converting to online food ordering was essential. Unique to the food ordering setting, this study extended the Stimulus-Organism-Response model to predict the purchase intentions of participants in an online food ordering context. Using structural equation modeling, this study discovered the indirect effects of the menu’s visual appeal and informativeness, and the perception of COVID-19 risks on consumer purchase intentions. This causal relationship was significantly mediated by consumers’ desire for food and their perceived convenience of online food ordering. Through providing theoretical and managerial implications for how to identify appropriate products, utilize content marketing effectively, and attract new customers, this study could assist restaurants in adapting to remaining competitive, even post COVID-19.     

Which reviewers are honest and caring? The effect of constructive and prosocial information on the perceived credibility of online reviews

Consumers often infer review credibility based on the content of online reviews. This study explores the influences of three positive review types on consumers’ perceptions of posters’ honesty and caring and subsequently review credibility. An experiment was conducted and the participants included 931 online travel community users. The results found that compared with positive reviews that contain only complimentary information, reviews that also contain constructive or prosocial information improve subjects’ perception of posters’ honesty and caring, respectively, and that this influence is particularly significant for participants with low propensity to trust. Second, compared with hotels with high reputation, consumers have significantly reduced perceptions of reviewers’ honesty if the reviewers provide only complimentary information in positive reviews for hotels with low brand reputation rather than both complimentary and constructive information. Finally, the higher the subjects’ perception of the reviewers’ honesty and caring is, the higher the consumers’ perception of review credibility.     

The 7 Ps marketing mix of home-sharing services: Mining travelers’ online reviews on Airbnb

The 7 Ps model is a very useful tool in helping service firms solve managerial issues in marketing. Guided by the 7 Ps marketing mix framework, a big-data, supervised machine learning analysis was performed with 1,148,062 English reviews of 37,092 Airbnb listings in San Francisco and New York City. The results disclose similar patterns in both markets, where travelers shared their experience about Service Product and Physical Evidence most often; Price and Promotion were the least mentioned elements. Furthermore, through a series of comparisons of Airbnb’s 7 Ps marketing mix among the listings managed by different types of hosts, multi-unit and single-unit hosts seem to offer similar services with a small observable difference; whereas superhosts and the ordinary hosts deliver different services. This study makes valuable methodological contributions and provides practical marketing insights for hoteliers and the hosts and webmasters on home-sharing websites. Policymakers should pay special attention to multi-unit hosts.     

Exploring consumers’ bidding results based on starting price,number of bidders and promotion programs

Online auctions are a core dynamic pricing mechanism that is now used widely in the tourism market, and consumers enjoy the exciting experience of bidding for products and services. The rapid development of the online auction market has lead scholars to call for more research into the factors that influence the results of such auctions and how they are related to consumers’ online bidding behavior. To this end, the current study designs a lab environment and mainly explores the influences of the start bidding price (US$0.33 versus US$60), the number of bidders and promotion programs (low price versus quality) on the results of online auctions of hotel coupons. The research results indicate the following market dynamics. (1) Regardless of whether there is a low or high start-bidding price, more bidders lead to higher end-prices, especially with high start-bidding prices. (2) When a seller provides a higher start-bidding price, the end-prices will be higher. (3) Different promotion programs result in different end-prices, especially when the product characteristics are integrated effectively with such programs. When hotel coupons are the main auction product, they are associated with high-quality leisure and lifestyle factors, thus indicating that the integration of high accommodation quality with quality promotion programs can attract consumers to join the bidding process and lead to higher end-prices. (4) Regardless of whether there is a low or high start-bidding price, winners will always report higher ratings regarding distributive fairness, procedural fairness and information fairness than will losers. The research results have important theoretical and practical implications, which are discussed in the conclusions.     

Effects of employees’ social exchange and the mediating role of customer orientation in the restaurant industry

This study aims to investigate the consequences of customer-employee exchage at work based on the social exchange theory. Moreover, it is to understand how the social exchange leads to employees’ prosocial service behaviors by investigating the mediating role of customer orientation. This study applied quantitative research design using cross-sectional survey approach by targeting frontline employees who had customer interactions in the full-service restaurant industry. The results present that the more employees have social exchange with customers, the more they tend to show customer service behaviors within and beyond their role requirements. In addition, customer-employee exchage leads to employees prosocial service behaviors indirectly by increasing the level of customer orientation. The theoretical and managerial implications are discussed in the study.     

Customers’ perceptions in value and food safety on customer satisfaction and loyalty in restaurant environments: moderating roles of gender and restaurant types

Using a valid sample of 334 restaurant diners, this study investigated the relative effects of perceived value and food safety on customer satisfaction and customer loyalty. The proposed model was consistent with other cognitive–attitudinal–behavioral frameworks. This study also explored how these two perceptions on customer satisfaction were different based on gender and restaurant type. We found support for all of the hypothesized relationships. Results from the structural equation modeling showed that customer satisfaction mediated the relationships between two antecedents and customer loyalty. Implications of the findings, limitations of the study, and recommendations for future research were discussed.     

Does it matter who gets a better price? Antecedents and consequences of online price unfairness for advantaged and disadvantaged consumers

This study examines the moderating role of price inequalities in the antecedents and consequences of perceived price unfairness. We test a moderated mediation model on a sample of 994 consumers exposed to a hotel booking scenario either with an advantaged price (n = 496) or a disadvantaged one (n = 498). Our results show that the mechanisms through which perceived price unfairness is formed and its influence on price satisfaction and WOM significantly differ based on price inequalities. Furthermore, these findings highlight the importance of managing the potential negative consequences of unfair pricing not only for disadvantaged consumers, but also for advantaged ones.     

More is better? The influencing of user involvement on user loyalty in online travel community

Since user stickiness is low in most online communities due to user easy transferability, assessing the influence of user involvement on user loyalty is paramount. Using an online travel community and a four-level consumer cognitive structure model as a theoretical basis, this study combines semi-structured interviews and scenario-based questionnaires to investigate this relationship. Results suggest that breadth of involvement has an inverted U-curve effect on user loyalty, while depth of involvement has a positive influence. Sense of virtual community both moderates and mediates the relationship between breadth of involvement and loyalty, but does not moderate and only partially mediates depth of involvement and loyalty. Both service value to peaceful life and service value to social integration partially mediate user involvement and loyalty, but service value to social recognition does not.     

Who's on the tourists' menu? Exploring the social significance of restaurant experiences for tourists

Taking a Consumer Culture Perspective, this paper explores the co-production of meaning among participants in tourists' restaurant experiences. Responding to criticisms that interpreting consumer behaviour should focus both on the individual and also on the collective context of consumption (Askegaard and Linnet, 2011), our research explores the social significance of these experiences and how they feed into the tourist's identity project. 34 ethnographic interviews are led with a view to exploring how tourists co-produce meaning within their group and also with staff and other patrons in the context of restaurant experience and these are followed up with a further 57 semi-structured interviews. Restaurant experiences are shown to be both rich and complex in social meanings. Thematic analysis leads to the identification and discussion regarding four contexts where social meanings are co-produced, namely sharing experiences, family togetherness and transmission, cultural guidance and customer-to-customer interaction.     

Infusing new insights: How do review novelty and inconsistency shape the usefulness of online travel reviews?

Review usefulness represents a vital indicator for evaluating the quality of online reviews in the tourism industry, and various heuristic cues have been recognized as determinants of this indicator. This study constructs a comprehensive conceptual framework based on the heuristic-systematic model to observe how two systematic cues, namely, review novelty and inconsistency, shape the perceived usefulness of reviews. Through an empirical analysis based on 1,744,693 reviews of 62,543 restaurants in the United States, we unveil a positive effect of review novelty on review usefulness but a negative effect of review inconsistency. We also underscore the moderating effects of several heuristic cues in the model, including review valence, reviewer expertise, and restaurant popularity. These results indicate that systematic and heuristic cues simultaneously and interactively determine review usefulness. The findings present theoretical implications to the literature and practical implications to hospitality professionals and designers/managers of review platforms.     

Early warning indicators? The effect of consumer and investor sentiments on the restaurant industry

This study looks at the influence of cyclical fluctuations of the consumer confidence index (CCI) and the volatility index (VIX) as early-warning indicators of the variations in restaurant performance. The industry has traditionally focused on past data and on microeconomic influences to anticipate its future performance, a procedure that does not consider possible cyclical fluctuations in restaurant performance metrics. These fluctuations are driven by sentiments of consumers and investors. The study uses the cyclical component of the applied data, followed by unit root and cointegration testing, with subsequent application of the Limited Information Maximum Likelihood technique. The results show both indicators have an effect on restaurant performance, where VIX has an impact on the current, expected, and overall restaurant performance, while the CCI’s influence is only partial (current performance). Policy-makers and planners could benefit from anticipating features of indicators to assess and steer the future performance of the restaurant industry.     

Exploring the comparative importance of online hotel reviews’ heuristic attributes in review helpfulness: a conjoint analysis approach

Online travel reviews have become increasingly important as a result of the intangible and heterogeneous characteristics of the tourism industry as well as the recent diffusion of social media. This exploratory case study intends to examine the comparative importance of the six heuristic attributes (reviewer location, reviewer level, reviewer helpful vote, review rating, review length, and review photo) with respect to review helpfulness in the online hotel review context. Moreover, the salience of the individual levels within each review attribute and the importance of the attributes in positive and negative review-rating groups are compared. In total, 1,158 reviews of a hotel on TripAdvisor were collected and analyzed through conjoint analyses. This study found that the review rating and reviewer helpful vote attributes are the two most important factors. Finally, three major propositions are suggested based on findings of the study, and several theoretical and managerial implications are discussed.     

Effects of location on Airbnb apartment pricing in Málaga

The relatively recent social movement known as the “sharing economy” is becoming increasingly visible in online peer-to-peer platforms. One such platform is Airbnb; an accommodation marketplace which provides access to tourist accommodation. These platforms are having an important social and economic impact on tourist destinations such as Málaga, Spain. This paper presents a spatial econometric hedonic model that explains the pricing strategy of Airbnb tourist apartments in Málaga using factors such as host, guest, structural characteristics, and location. In relation to locational factors, the model in this study confirms the impact of spatial spillover effects, accessibility to certain amenities, traffic noise, walkability, and the ethnicity of residents in the neighborhood where the listing is located.     

Do price promotions drive consumer spending on luxury hotel services? The moderating roles of room price and user-generated content

Price promotion, as price information, and user-generated content (UGC), as non-price information, play an important role in generating luxury hotel revenue. This study empirically investigates how price promotion influences actual consumer spending on luxury hotel services except room price, by considering the contingency role of room price and volume and valence of UGC. Combined data of daily settlements and Tripadvisor customer reviews of a regional luxury hotel chain are used for the analyses. The results indicate that, overall, price promotion negatively influences consumer spending on luxury hotel services and its negative effect is strengthened when the room is higher priced or the valence of UGC is high. Furthermore, a larger volume of intrinsic attribute-related UGC–amenity and location–with price promotion leads to more consumer spending than a larger volume of extrinsic attribute-related UGC–food and staff. The findings provide hotel managers with important insights into pricing and UGC management.     

Helpful or harmful? A double-edged sword of emoticons in online review helpfulness

Emoticons are graphic demonstrations of facial expressions. They have become a common and easy-to-use tool for online users to express ideas or feelings. Earlier research highlights the importance of emoticons in computer-mediated communications. However, limited attention has been given to the use of emoticons in online reviews. Using the Cognitive Tuning Theory as the backbone, we attempt to examine how emoticons in online reviews influence review helpfulness. One lab experiment with restaurants as the context and one empirical study with data of 4870 hotel reviews from Facebook business pages were conducted. The hypotheses were assessed via multilevel regression analysis using R programming language. Results indicate that positive emoticons enhance review helpfulness when the review is narrative-based and negative emoticons increase review helpfulness when the review is list-based. Processing fluency serves as the underlying mechanism. We discuss theoretical and practical implications.     

Why should I pay more? Testing the impact of contextual cues on perception of price unfairness for the price-disadvantaged segment in dual pricing

The practice of dual pricing is ubiquitous in the field of tourism. However, extant research has not focused on minimising the perception of price unfairness among the price-disadvantaged tourists. This study uses equity theory (Adams, 1965), categorisation theory, and the principle of dual entitlement to understand the impact of price as well as non-price related contextual cues on the perception of price unfairness among the price-disadvantaged (international) tourists. The results demonstrate that transaction similarity between the two (domestic and international) segments can be reduced by expressing international tourists’ entrance fees in international currencies, and by including a service element, which would decrease their perception of price unfairness. Furthermore, providing a legitimate rationale behind the increased entrance fee would further decrease their perception of price unfairness. Implementing these findings will help tourist sites in reducing the negative impact of the perception of price unfairness.     

Can time soften your opinion? The influence of consumer experience valence and review device type on restaurant evaluation

The objective of this study is to investigate how review temporal distance influences the conformity of consumer restaurant review ratings. By employing an innovative dataset pairing consumer reservation records and consumer online reviews, the findings of this study indicate that (1) in general, temporal distance has a positive influence on restaurant evaluation conformity; (2) consumption experience valence moderates the influence of review temporal distance on restaurant evaluation conformity, with a negative dining experience strengthening the positive effects; (3) review device moderates the influence of review temporal distance on review conformity, with reviews posted via mobile devices weakening the positive effect of temporal distance; and (4) compared to reviews posted via PCs, mobile reviewers appear less likely to be influenced by prior reviews. Findings from this study provide practical insights for restaurants’ management of online reviews.