The effects of eWOM characteristics on consumer ratings: evidence from TripAdvisor.com

Abstract

Given the rise of online review communities, the management of consumer ratings has gained much attention in the recent years. In this study, we use data from Tripadvisor.com and examine the number of stars that a review receives. Specifically, we address how a star rating is determined by the components in the focal review as well as the preceding reviews of other consumers. Our qualitative and quantitative analyses provide interesting findings as follows. A star rating has a positive relationship with the focal review’s valence. That is, the more positive a review is, the greater number of stars a review receives. The reviews of other consumers also play a role in determining a star rating of the focal review suggesting social influence among consumers. Interestingly, a review with lengthy content leads to a lower star rating only when using smartphones. We conclude with theoretical and managerial implications.     

To seek variety or uniformity: The role of culture in consumers’ choice in a group setting

One stream of research suggests that individuals in a collectivistic culture tend to follow the others’ choices in a group choice setting (e.g., Markus and Kitayama 1991). Other research, however, suggests that the choices others make have little impact on the individuals’ choices in this cultural context (e.g., Kim and Drolet 2003). The current research attempts to test these competing hypotheses by examining individuals’ choices in group choice contexts (Ariely and Levav 2000). First, comparisons of 517 meal order slips from two local restaurants in Korea with simulated outcomes indicate a profound group-level uniformity seeking in dish selections. Second, our field experiment reveals that members of a collectivist culture tend to follow group members’ choices when group influence is evident. Unlike the previous findings of studies conducted on individuals from Western cultures, selections made in accordance with the cultural norm do not result in the reduction of emotional well-being for the collectivist cultural individuals. Finally, we provide more direct evidence for the hypothesized role of culture by showing that the choices of individuals with collectivistic cultural backgrounds are associated with higher uniformity-seeking tendency compared to those of individualistic cultural backgrounds.     

A consumer value analysis of mobile internet protocol television based on a means-end chain theory

With the rise of the 4G technology, TV or video services based on mobile devices have received increasing attention from consumers. Using means-end chain theory, this study examines the cognitive structure of mobile internet protocol television (IPTV) users. Here, the cognitive structure refers to the attribute–consequence–value linkage that consumers consider as important in mobile IPTV services. The study classifies consumers based on two dimensions (their gender and occupation) and presents hierarchical value maps of mobile IPTV services. For this, the study collects data on 112 potential users of mobile IPTV services by using the association pattern technique. The results indicate as the representative cognitive structure of men and students; as that of women; and as that of office workers.     

Reverse Price Discrimination with Bayesian Buyers

This paper studies price discrimination under the situation in which buyers' prior valuations are initially observable by a seller but buyers receive further information about a product or service which remains private thereafter. The buyers interpret new information via Bayes' rule. We show that, in this environment, prices are not monotone in buyers' prior valuations. Interestingly, this results in the possibility that a seller intentionally offers a higher price to a low valuation buyer rather than a high valuation buyer (Reverse Price Discrimination). We derive this result in both monopoly and duopoly markets.     

Cross-Cultural Differences in Social Identity Formation through Travel Blogging

Blogs are an Internet application that continues to grow in popularity. Many blogs contain travel-related postings and, thus, are of importance for researchers and practitioners in the tourism field. Differences in blog use have been found across different cultures. This study seeks to test whether social identity theory can explain some of the differences in extent and type of blog use. A sample of 120 travel blogs written by Korean and U.S. bloggers about three different destinations (Paris, Hawaii, and Tokyo) was analyzed. The results show significant differences that fit the assumptions derived from social identity theory.     

Online shoppers' response to price comparison sites

Customers' perceptions of price differ in the online environment due to the presence of price comparison sites. The purpose of this study is to examine how price comparison sites affect price and value perceptions of online shoppers across different product types and price consciousness levels of online shoppers. The results of the study indicate that the price information provided by an online price comparison site influences online shoppers' perceptions of internal reference prices. However, the influence of a price comparison site on value perception differs according to product type. As evidenced by the significant interaction effect between product type and price comparison site information, the presence of price comparison sites increases both transaction and acquisition value perceptions for the non-look-and-feel product category (e.g., notebook computers), but not for the look-and-feel product category (e.g., jeans). Contrary to the expectation, online shoppers' price consciousness influences their price and value perceptions independently of price comparison site information.     

Assertive Environmental Advertising and Reactance: Differences Between South Koreans and Americans

In three studies, the authors show that Americans and South Koreans react differently to environmental advertising campaigns featuring assertive messages that threaten autonomous freedoms. The findings uphold their hypothesis that cultural differences determine whether consumers will show reactance to assertive advertising campaigns. Study 1 demonstrates that Americans are less receptive to an assertive recycling message using imperatives such as should, must, and ought and more receptive to a nonassertive message using could, might, and worth. South Koreans do not show the reactance response. Study 2, an energy-saving campaign, conceptually replicates the findings and further shows that perceived threat to freedom mediates the effects. Study 3 uses a realistic setting (i.e., online magazine) to further support the hypothesis that cultural differences affect attitudes toward assertive messages, but adds perceived politeness as an underlying second mediator.     

Five Seconds to the Ad: How Program-Induced Mood Affects Ad Countdown Effects

The study examines how program-induced mood and a five-second countdown warning affect reception of midroll video commercials. Building on mood regulation theory, findings from three studies suggest that program-induced moods and five-second countdowns systematically influence advertising effectiveness. When the main program is tragic (comedic) and when a countdown precedes (does not precede) the midroll ad, viewers have more positive attitudes toward the ad and purchase intentions. The findings are replicated in realistic (Study 1) and controlled (Studies 2A and 2B) settings.