scholarly journals The moderating effect of agglomeration on horizontal differentiation and online reviews: the case of Paris hotels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
María D. Illescas-Manzano ◽  
Sergio Martínez-Puertas ◽  
Manuel Sánchez-Pérez
Keyword(s):  
Online Reviews ◽  
Competitive Environment ◽  
Horizontal Differentiation ◽  
Content Type ◽  
Differentiation Strategy ◽  
Price Differentiation ◽  
Online Ratings ◽  
Regression Techniques ◽  
Online Reputation ◽  
The Impact

PurposeHotels are immersed in a very competitive environment and hoteliers have to plan and redesign their strategies to stay in the hospitality industry while faced with a steady rise in competition. Hoteliers can employ horizontal differentiation strategies and pricing decisions to gain a competitive advantage over their competitors. The goal of our work is to analyse the effect of pricing and horizontal differentiation strategy of a hotel on its online reputation and to analyse if the hotel location and agglomeration of competitors moderates their relationship with online reputation.Design/methodology/approachWith a sample of 264 hotels from Paris, an empirical study is developed that aims to analyse, using regression techniques, the impact of price, differentiation, location and competitive environment on online ratings given by consumers in the hospitality context.FindingsThe paper provides empirical evidence of how a good location improves the online reputation of a company and how pricing strategies should take into account the location and number of competitors since a good location allows premium prices to be valued positively by consumers while an inappropriate location can produce the opposite effect. Depending on location, the number of competitors can intensify or reduce the effect of price on online reputation. Finally, online reputation only benefits from horizontal differentiation strategies when the degree of agglomeration is low.Originality/valueThis work provides insights about how hotels can strengthen their online reputation through pricing and differentiation strategies, incorporating elements of their environment such as location and competition in this decision-making process.

scholarly journals The influence of outsourcing activities on the perception of service quality. An empirical study based on online reviews by hotel customers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tomás F. Espino-Rodríguez ◽  
Manuel Rodríguez-Díaz
Keyword(s):  
Empirical Study ◽  
Service Quality ◽  
Online Reviews ◽  
Negative Influence ◽  
Performance Measure ◽  
Content Type ◽  
Online Customer Reviews ◽  
Online Reputation ◽  
The Impact ◽  
The Relationship

Purpose This study aims to examine the impact of the outsourcing of hotel departments on service quality measured through online customer reviews. Design/methodology/approach Three models were developed, considering three important online tourism reputation websites, to establish the relationship between the outsourcing of hotel activities and service quality. Findings The results show that in the three databases, hotel outsourcing has a negative influence on online reputation. A higher level of outsourcing reduces service quality, the percentage of recommendations and the value perceived by customers who carry out online reviews of these hotels. In addition, different models were established for each type of department. Originality/value To the best of the authors’ knowledge, this paper presents the first empirical study to analyse the relationship between the impact of process outsourcing and customers’ online reviews. It is also the first empirical research to consider the relationship between outsourcing and ratings by hotel end-customers as a performance measure.

scholarly journals The impact of online reputation on hotel profitability

2020 ◽  
Vol 32 (1) ◽  
pp. 20-39 ◽  
Author(s):  
Seraina C. Anagnostopoulou ◽  
Dimitrios Buhalis ◽  
Ioanna L. Kountouri ◽  
Eleftherios G. Manousakis ◽  
Andrianos E. Tsekrekos
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Semantic Analysis ◽  
Online Reviews ◽  
Ordinary Least Squares ◽  
Bottom Line ◽  
Content Type ◽  
Online Reputation ◽  
The Impact ◽  
Financial Profitability

Purpose The purpose of this study is to quantify the impact of online customer reputation on financial profitability. Design/methodology/approach Online reputation is captured by extracting the most recurring textual themes associated with customer satisfaction and dissatisfaction, expressed within positive vs negative online guest reviews on Booking.com. Latent semantic analysis is used for textual analysis. Proxies of overall financial performance are manually constructed for the sample hotels, using financial data from the Financial Analysis Made Easy (FAME) database. Ordinary least squares is used to gauge the effect of online customer reputation on financial profitability. Findings Empirical findings indicate that recurring textual themes from positive online reviews (in contrast to negative reviews) exhibit a higher degree of homogeneity and consensus. The themes repeated in positive, but not in negative reviews, are found to significantly associate with hotel financial performance. Results contribute to the discussion about the measurable effect of online reputation on financial performance. Originality/value Contemporary quantitative methods are used to extract online reputation for a sample of UK hotels and associate this reputation with bottom-line financial profitability. The relationship between online reputation, as manifested within hotel guest reviews, and the financial performance of hotels is examined. Financial profitability is the result of revenues, reduced by the costs incurred in order to be able to offer a given level of service. Previous studies have mainly focused on basic measures of performance, i.e. revenue generation, rather than bottom-line profitability. By combining online guest reviews from travel websites (Booking.com) with financial measures of enterprise performance (FAME), this study makes a meaningful contribution to the strategic management of hotel businesses.

The effect of emotions, eWOM quality and online review sequence on consumer intention to follow advice obtained from digital services

2020 ◽  
Vol 31 (3) ◽  
pp. 465-487 ◽  
Author(s):  
Carla Ruiz-Mafe ◽  
Enrique Bigné-Alcañiz ◽  
Rafael Currás-Pérez
Keyword(s):  
Structural Model ◽  
Online Reviews ◽  
Moderating Effect ◽  
Online Information ◽  
Bias Effect ◽  
Content Type ◽  
Digital Services ◽  
Information Cues ◽  
Cognitive Information ◽  
The Impact

PurposeThis paper analyses the interrelationships between emotions, the cognitive information cues of online reviews and intention to follow the advice obtained from digital platforms, paying special attention to the moderating effect of the sequencing of review valence.Design/methodology/approachThe data were collected from 830 Spanish Tripadvisor users. In a two-step approach, a measurement model was estimated and a structural model analysed to test the proposed hypotheses. SmartPLS 3.0 software was used. The moderating effect of sequencing of reviews is tested.FindingsThe data analysis showed a bias effect of review sequence on the impact of online information cues and emotions on intention to follow advice obtained from Tripadvisor. When the online reviews of a restaurant begin with positive commentaries, their perceived persuasiveness is a stronger driver of the pleasure and arousal elicited by online reviews than when they begin with negative reviews. On the other hand, the perceived helpfulness of online reviews only triggers arousal when the user reads negative, followed by positive, comments. The impact of pleasure on intention to follow the advice provided in an online travel community is higher with positive-negative than with negative-positive sequences.Originality/valueWhile researchers have demonstrated the benefits of customer reviews on company sales, a largely uninvestigated issue is the interplay between emotions and cognitive information cues in the processing of online reviews. This is one of the first studies to examine the moderating effect of conflicting reviews on the impact of emotions and cognitive information cues on consumer intention to follow the advice obtained from digital services.

scholarly journals Exploring the behavioral drivers of review valence

2018 ◽  
Vol 30 (10) ◽  
pp. 3083-3099 ◽  
Author(s):  
Panagiotis Stamolampros ◽  
Nikolaos Korfiatis
Keyword(s):  
Information Content ◽  
Service Providers ◽  
Online Reviews ◽  
The Other ◽  
Three Dimensions ◽  
Spatial Distance ◽  
Bag Of Words ◽  
Content Type ◽  
Online Ratings ◽  
Positive Direct

Purpose Although the literature has established the effect of online reviews on customer purchase intentions, the influence of psychological factors on online ratings is overlooked. This paper aims to examine these factors under the perspective of construal level theory (CLT). Design/methodology/approach Using review data from TripAdvisor and Booking.com, the authors study three dimensions of psychological distances (temporal, spatial and social) and their direct and interaction effects on review valence, using regression analysis. The authors examine the effect of these distances on the information content of online reviews using a novel bag-of-words model to assess its concreteness. Findings Temporal distance and spatial distance have positive direct effects on review valence. Social distance, on the other hand, has a negative direct effect. However, its interaction with the other two distances has a positive effect, suggesting that consumers tend to “zoom-out” to less concrete things in their ratings. Practical implications The findings provide implications for the interpretation of review ratings by the service providers and their information content. Originality/value This study extends the CLT and electronic word-of-mouth literature by jointly exploring the effect of all three psychological distances that are applicable in post-purchase evaluations. Methodologically, it provides a novel application of the bag-of-words model in evaluating the concreteness of online reviews.

Sharing tourism experiences in social media

2017 ◽  
Vol 29 (1) ◽  
pp. 179-225 ◽  
Author(s):  
Marios D. Sotiriadis
Keyword(s):  
Social Media ◽  
Content Analysis ◽  
Academic Research ◽  
Online Reviews ◽  
Content Type ◽  
Main Research ◽  
Research Themes ◽  
Consumer Perspective ◽  
Use Of Social Media ◽  
The Impact

Purpose The purpose of this paper is twofold: to perform a synthesis of academic research published between 2009 and 2016 regarding the changes in tourism consumer behavior brought about by the use of social media (SM); and to suggest a set of strategies for tourism businesses to seize opportunities and deal with resulting challenges. Design/methodology/approach A volume of 146 peer-reviewed journal articles were retrieved from two major databases. Content analysis of this academic research has been performed, exploring the effects of online reviews on tourism consumers and providers. Findings The content analysis identified three main research themes that were investigated by scholars and classified into two major categories, namely, consumer perspective and provider perspective: the antecedents (factors motivating and influencing tourists); the influence of online reviews on consumer behaviour; and the impact of these reviews on tourism businesses (providers’ perspective). Research limitations/implications This study is based on a literature review and outcomes reported by previous studies; hence, the suggestions are indicative rather than conclusive. Some publication sources were not included. Practical implications This paper suggests a range of adequate strategies, along with operational actions, formulated for industry practitioners in the fields of management and marketing. Originality/value It provides an update of the state of published academic research into SM and an integrated set of management and marketing strategies for tourism providers in seizing the opportunities and dealing with the challenges raised in a digital context.

The effect of online reviews on restaurant visit intentions: applying signaling and involvement theories

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leonardo Aureliano-Silva ◽  
Xi Leung ◽  
Eduardo Eugênio Spers
Keyword(s):  
Mobile Devices ◽  
Signaling Theory ◽  
Online Reviews ◽  
Future Research ◽  
Online Behavior ◽  
Content Type ◽  
Customer Involvement ◽  
Online Ratings ◽  
Involvement Theory ◽  
Restaurant Reviews

Purpose The purpose of this study is to investigate the effect of online reviews on consumers’ intention to visit restaurants, with the moderating role of involvement. Design/methodology/approach The research framework was built on signaling theory, message appeals and involvement theory. To test the proposed framework, three experiments were conducted online with real customer samples. T-tests, ANOVA and SPSS PROCESS macro were used for data analysis. Findings The results revealed that online reviews with higher online ratings and emotional appeal led to higher restaurant visit intention. Review appeal significantly moderated the effect of online ratings on restaurant visit intention. Customers with low restaurant involvement were more impacted by emotional comments than by functional comments. Research limitations/implications The present study extends our knowledge on the effects of online reviews moderated by levels of customer involvement. By combining signaling theory with involvement theory, it adds value to the literature on customer online behavior, especially in the foodservice context. The present study has limitations that might provide opportunities for future research. It used evaluations (TripAdvisor scores) and only positive reviews (texts), so customers’ intentions considering negative reviews could not be examined. The level of hedonism concerning consumption in restaurants and prior knowledge regarding restaurant reviews was not controlled for. It is possible that the level of hedonism perceived and prior review knowledge may moderate the customers’ intention to visit the restaurant. Practical implications The present study shows the importance of online comments for the promotion of restaurants that have low evaluation scores. It is essential that restaurant owners and managers encourage potential customers by using comments to elaborate on their marketing strategies and promotion. At the same time, they should invite customers to share their emotional experiences, and not just their views on service efficiency (a functional aspect). During the COVID-19 pandemic, the use of the internet and mobile devices has become more prominent. Managers could therefore use emotional messages on the restaurant’s website or apps to attract customers with low restaurant involvement. Also, a system to identify the involvement of customers with restaurants could be implemented online or on mobile devices to present specific messages. The present study also recommends the use of online tools as virtual tours, photographs taken from different angles, smiling faces, floor plans and sittings and pre-determined emotional expressions. Also, the restaurant could promote lives on cooking different dishes to motive customer’s interaction and comments. These would help to increase customers’ visit intentions. Originality/value This study extends knowledge about the effect of restaurant online reviews (both ratings and appeals) moderated by the level of customer involvement. The present study also adds value to the customer online behavior literature showing that customers with low involvement are more sensitive to emotional content as they use the affective route to process information rather than the central route.

Tit for tat: understanding the responding behavior of property hosts on peer-to-peer rental platforms

2021 ◽  
Vol 33 (3) ◽  
pp. 1105-1126
Author(s):  
Sai Liang ◽  
Xiaoxia Zhang ◽  
Chunxiao Li ◽  
Hui Li ◽  
Xiaoyu Yu
Keyword(s):  
Service Providers ◽  
Online Reviews ◽  
Peer To Peer ◽  
Theoretical Development ◽  
Effective Response ◽  
Content Type ◽  
Starting Point ◽  
Tit For Tat ◽  
Hotel Managers ◽  
The Impact

Purpose Due to their very different contexts, the responses made by property hosts to online reviews can differ from those posted by hotel managers. Thus, the purpose of this study is to investigate the determinants of the responding behavior of hosts on peer-to-peer property rental platforms. Design/methodology/approach This study applied a comprehensive framework based on the theory of planned behavior. Empirical models are constructed based on 89,967 guest reviews with their associated responses to reveal the responding pattern of property hosts. Findings Unlike hotel managers, property hosts are more likely to reply to positive than to negative reviews; moreover, when they do choose to respond to negative reviews, they are likely to do so negatively, in a “tit-for-tat” way. This study also finds that one reason for the difference of responding patterns between property hosts and hotel managers is the hosts’ lack of experience of consumer relationship management and service recovery. Research limitations/implications This study provides a good start point for future theoretical development regarding effective responding strategy on peer-to-peer property rental platforms, as well as some useful implications for practitioners. Originality/value This study is an early attempt to analyze the impact of the particularity of emerging platforms on the responding behavior of service providers based on a comprehensive conceptual framework and empirical model thus provides a good starting point for the further investigation of effective response strategies on these emerging platforms.

The impact of online reviews on product returns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaofei Li ◽  
Baolong Ma ◽  
Hongrui Chu
Keyword(s):  
Structural Equation ◽  
Secondary Data ◽  
Online Reviews ◽  
Quantitative Model ◽  
Negative Consequences ◽  
Product Returns ◽  
Content Type ◽  
High Expectations ◽  
Product Return ◽  
The Impact

PurposeThe value of online reviews has been well documented by academics and practitioners. However, to maximise the benefits of consumer reviews, online sellers must avoid the negative consequences associated with customer feedback, such as reputation loss, or product returns after purchase. In developing a better understanding of the relationships between online reviews and their potential for negative impacts, this research aims to explore product returns. Through a quantitative model, this research demonstrates why online reviews can result in product return behaviours.Design/methodology/approachThe hypotheses were tested via two studies. In Study 1, the authors examine the direct effects of review valence and review volume on product returns by analysing secondary data on 4,995 stores on China's Taobao.com. Study 2 further extends and validates the findings of Study 1 with a survey sample of 795 participants across several online shopping platforms. This analysis examines the mechanics and conditions that influence the relationships between online reviews and product returns through partial least squares-structural equation modelling (PLS-SEM).FindingsThe results show that both review valence (i.e. average star ratings) and the number of reviews can increase the probability of product returns due to the high expectations that result from positive online reviews. Further, the effect of review valence on product returns is stronger for first-time purchasers at a store. In terms of mitigation, the analysis shows that bilateral communications between sellers and buyers can temper the unrealistic expectations set by positive reviews, leading to fewer product returns.Originality/valueThis research adds to the literature on online reviews by exploring the negative consequences of online reviews and the role they play in online purchasing decisions. The findings also provide direct evidence as to why online reviews can result in more product returns, adding clarity to extant research which contains conflicting conclusions as to how online reviews affect product return behaviours.

What users say about public libraries: an analysis of Google Maps reviews

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ángel Borrego ◽  
Maite Comalat Navarra
Keyword(s):  
Peer Review ◽  
Public Libraries ◽  
Online Reviews ◽  
Google Maps ◽  
Content Type ◽  
Effective Strategies ◽  
Library Users ◽  
Online Library ◽  
The Impact ◽  
The City

PurposeGoogle Maps is a web platform that allows users to review businesses and services, including libraries. Given the impact of online reviews on the corporate reputation of companies and institutions, it is important to understand how library users disseminate and process reviews on online sites. This study explores whether Google Maps is being used by users of public libraries in the city of Barcelona (Spain) to share their views on libraries' facilities and services and what perception of the library they transmit.Design/methodology/approachRecords corresponding to the 40 public municipal libraries in Barcelona were retrieved from Google Maps. For each library, the average “rating” (a quantitative assessment of the library) and a sample of the ten most recent “reviews” (a text and/or photograph(s) that accompanies the rating) were analysed. Reviews were categorised into eight categories: “children's areas”, “collections”, “location”, “facilities”, “general reviews”, “opening hours”, “staff” and “technology”.FindingsAll of the city's 40 public libraries are present in Google Maps and have been reviewed by users, usually with high ratings. The number of replies to users' reviews by library managers is negligible. Reviews with low ratings tend to be longer than those with high ratings. In the reviews, children's areas, collections and library location are given positive ratings. Facilities also receive positive reviews, although to a lesser extent, and two issues receive criticism: noise and lack of seating space for studying. Three aspects of the libraries attract similar numbers of positive and negative reviews: staff, opening hours and technology. The study concludes that Barcelona's public libraries should devote more resources for keeping the information in their profiles updated. They should also monitor users' opinions and create guidelines to offer feedback, especially to negative reviews.Research limitations/implicationsThe research is limited by being restricted to a single platform (Google Maps) and a single city (Barcelona). Those writing reviews in Google Maps may not constitute a representative sample of library users. “Local guides”, who tend to award higher ratings than other users, participate in a programme that allows them to earn points that may be exchanged for benefits. Therefore, it is possible that at least some “local guides” publish reviews on public libraries they hardly know (if at all) just to obtain benefits. Similarly, the large number of users commenting on study spaces suggests that young people may be over-represented.Originality/valueMany studies have analysed transaction data in online library settings, including visits, searches, downloads, etc. but there are no examples of analyses of user-generated content such as texts or photos uploaded to review sites and social media. The results of this study will help to improve the understanding of how library patrons see public libraries and to design effective strategies to respond to and generally manage their suggestions and complaints.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-09-2019-0291

Pay inequality and job satisfaction of law firms: the role of strategic positioning

2020 ◽  
Vol 16 (2) ◽  
pp. 189-213
Author(s):  
Ki Kyung Song ◽  
Eunyoung Whang
Keyword(s):  
Job Satisfaction ◽  
Law Firms ◽  
Strategic Positioning ◽  
Pay Gap ◽  
Content Type ◽  
Differentiation Strategy ◽  
Generic Strategy ◽  
Pay Inequality ◽  
The Impact

Purpose Using Porter’s (1980) generic strategy to define strategic positioning of law firms, this paper aims to explain why some law firms have more/less pay inequality than others do and examine the impact of pay inequality on law firms’ partners and the job satisfaction of their associates. Design/methodology/approach This paper uses data from The American Lawyer. The strategic positioning, compensation and job satisfaction scores of 614 firm-year observations of US law firms are hand-collected over the period from 2007 to 2016. Findings Non-equity partners at law firms with differentiation strategy (Porter, 1980) are more likely to build rainmaking ability than those at law firms relying on billable hours. As a result, law firms with differentiation strategy have a narrower pay gap between their equity and non-equity partners than those firms relying on billable hours. After controlling for the effects of strategy on pay inequality using two-stage and three-stage least squares models, this paper finds that a wider pay gap deprives associates of job satisfaction. Originality/value Considering strategic positioning, this paper validates why some law firms have more/less pay inequality and proves how pay inequality affects job satisfaction.

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