Effects of managerial response on consumer eWOM and hotel performance

2016 ◽  
Vol 28 (9) ◽  
pp. 2013-2034 ◽  
Author(s):  
Karen L. Xie ◽  
Zili Zhang ◽  
Ziqiong Zhang ◽  
Amrik Singh ◽  
Seul Ki Lee

Purpose This study aims to measures the effects of managerial response on consumer electronic word-of-mouth (eWOM) and hotel performance. Design/methodology/approach A sample of 56,284 consumer reviews and 10,793 managerial responses for 1,045 hotels was retrieved from TripAdvisor, along with 30,232 performance records matched to these hotels on a quarterly basis. Findings This study finds that managerial response leads to an average increase of 0.235 stars in the TripAdvisor ratings of the sampled hotels, as well as a 17.3 per cent increase in the volume of subsequent consumer eWOM. Moreover, managerial response moderates the influence of ratings and volume of consumer eWOM on hotel performance. Practical implications This study offers a practical model that enables hotel managers to orchestrate social media marketing approaches and efforts toward an optimal social media strategy. Originality/value This study differs from extant literature that has extensively focused on consumer reviews by providing a new perspective of management intervention in the social media context. By examining the interplay of managerial response and consumer eWOM at the individual hotel level, this study provides empirical evidence of managerial response affecting hotel performance through the increased ratings and volume of consumer eWOM. This study also offers insights into the practical importance of crafting intervention opportunities to cultivate the continued engagement of consumers on social media and increased hotel performance.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carolin Siepmann ◽  
Lisa Carola Holthoff ◽  
Pascal Kowalczuk

Purpose As luxury goods are losing their importance for demonstrating status, wealth or power to others, individuals are searching for alternative status symbols. Recently, individuals have increasingly used conspicuous consumption and displays of experiences on social media to obtain affirmation. This study aims to analyze the effects of luxury and nonluxury experiences, as well as traditional luxury goods on status- and nonstatus-related dimensions. Design/methodology/approach After presenting the theoretical foundation, the authors conduct a study with 599 participants to compare status perceptions elicited by the conspicuous consumption of luxury goods, luxury experiences and nonluxury experiences. The authors investigate whether experiences that are visibly consumed on Instagram are replacing traditional luxury goods as the most important status symbols. Furthermore, the authors examine the effects of the content shown on nonstatus-related dimensions and analyze whether status perceptions differ between female and male social media communicators. Finally, the authors analyze how personal characteristics (self-esteem, self-actualization and materialism) influence the status perceptions of others on social media. Findings The results show that luxury goods are still the most important means of displaying status. However, especially for women, luxury experiences are also associated with a high level of social status. Thus, the results imply important gender differences in the perceptions of status- and nonstatus-related dimensions. Furthermore, the findings indicate that, in particular, the individual characteristics of self-actualization and materialism affect status perceptions depending on the posted content. Originality/value While the research has already considered some alternative forms of conspicuous consumption, little attention has been given to experiences as status symbols. However, with their growing importance as substitutes for luxury goods and the rise of social media, the desire to conspicuously consume experiences is increasing. The authors address this gap in the literature by focusing on the conspicuous display of luxury and nonluxury experiences on social media.


2017 ◽  
Vol 31 (7) ◽  
pp. 720-732 ◽  
Author(s):  
Omer Topaloglu ◽  
David E. Fleming

Purpose The paper aims to provide a theoretical and empirical examination of the relationship between service expectation management, expectation inducing agent and customer satisfaction. Design/methodology/approach Based on the disconfirmation paradigm in services and the promise-keeping premise in psychology, the hypotheses are developed and empirically tested using three experiments that manipulated expectations, expectation inducing agent and service outcome. Findings The findings provide reconciliation to the previous studies in services and show that effectiveness of expectation management strategy depends on the individual expectation thresholds and the expectation inducing agent. If customers patronize a firm expecting more, then over-delivering on the service promise results in a significant benefit. However, for those customers whose mental expectation threshold is exceeded, keeping promises is as effective as exceeding promises. Practical implications The practical implication of this paper is that services managers should be cognizant of the mental expectation threshold of customers and be wise in utilizing the under-promise, over-deliver strategy. Originality/value Using a threshold approach, this paper introduces a new perspective to service practitioners who are trying to manage expectations in a highly variable business environment. It also benefits service researchers who are trying to enhance the understanding of service expectation management.


2019 ◽  
pp. 794-808
Author(s):  
Ozlem Hesapci-Sanaktekin ◽  
Yonca Aslanbay

The number of digital networks established for a common social ‘cause' having passion of civic activism increase globally day by day. The purpose of this study is to provide explanations for civic engagement through social media causes. In the current study, a structured questionnaire is administered to 308 social media users in Turkey. The findings refine existing research bringing a new perspective to collectivism by explaining civic engagement in specific areas through social media causes in terms of individualistic values, self-identity (social vs. personal) and social media use. Overall findings ascertain social media's role on raising social capital while enhancing not only the individual selves but also collective performances through diverse civic cause engagements. The study has significant outcomes for both non-profit and profit organizations in building strategies of communication with their stakeholders through digital means.


2020 ◽  
Vol 38 (5) ◽  
pp. 587-601
Author(s):  
Helen Cripps ◽  
Abhay Singh ◽  
Thomas Mejtoft ◽  
Jari Salo

PurposeThe purpose of this research is to investigate the use of Twitter in business as a medium for knowledge sharing and to crowdsource information to support innovation and enhance business relationships in the context of business-to-business (B2B) marketing.Design/methodology/approachThis study uses a combination of methodologies for gathering data in 52 face-to-face interviews across five countries and the downloaded posts from each of the interviewees' Twitter accounts. The tweets were analysed using structural topic modelling (STM), and then compared to the interview data. This method enabled triangulation between stated use of Twitter and respondent's actual tweets.FindingsThe research confirmed that individuals used Twitter as a source of information, ideas, promotion and innovation within their industry. Twitter facilitates building relevant business relationships through the exchange of new, expert and high-quality information within like-minded communities in real time, between companies and with their suppliers, customers and also their peers.Research limitations/implicationsAs this study covered five countries, further comparative research on the use of Twitter in the B2B context is called for. Further investigation of the formalisation of social media strategies and return on investment for social media marketing efforts is also warranted.Practical implicationsThis research highlights the business relationship building capacity of Twitter as it enables customer and peer conversations that eventually support the development of product and service innovations. Twitter has the capacity for marketers to inform and engage customers and peers in their networks on wider topics thereby building the brand of the individual users and their companies simultaneously.Originality/valueThis study focuses on interactions at the individual level illustrating that Twitter is used for both customer and peer interactions that can lead to the sourcing of ideas, knowledge and ultimately innovation. The study is novel in its methodological approach of combining structured interviews and text mining that found the topics of the interviewees' tweets aligned with their interview responses.


2019 ◽  
Vol 10 (1) ◽  
pp. 107-120 ◽  
Author(s):  
Zaid Alrawadieh ◽  
Mithat Zeki Dincer

PurposeDrawing on a sample of 520 negative reviews posted on TripAdvisor against all five-star hotels operating in Petra, Jordan, the purpose of this paper is to evaluate the response of luxury hotels to negative online reviews by considering the Response Rate (RR), the Response Time (RT) and the Response Content (RC).Design/methodology/approachA deductive content analysis was used on hotels’ managerial responses. Based on the literature review, a four-construct scheme was identified to guide the analysis including Appreciation; Apology; Explanation; and Incentive. The managerial responses were carefully read and manually coded based on the four-construct scheme. The time between the review posting date and the date of the managerial response was also recorded. Luxury hotel managers were also surveyed to obtain insights into their perceptions and practices with respect to online reputation management.FindingsThe findings call into question luxury hotels’ awareness of the harmful impact of negative online reviews. Specifically, the findings suggest that less than half of the negative reviews received a managerial response, and that more than half of these were standardized and did not refer to the issues raised in the reviews. The low response rate coupled with the hotel managers’ consensus on the importance of answering all online reviews indicates inconsistency between hotel managers’ perceptions and practices with regard to online reputation management.Originality/valueThe paper adds to the ongoing debate on reputation management in the hospitality industry by considering the managerial response to negative online reviews. The paper discusses several managerial implications for hotel managers as well as avenues for future research.


2017 ◽  
Vol 21 (1) ◽  
pp. 51-67 ◽  
Author(s):  
Kevin D. Lo ◽  
Richard D. Waters ◽  
Nicklas Christensen

Purpose The purpose of this paper is to examine how Hofstede’s six cultural dimensions are reflected on the official corporate Facebook pages from 259 organizations on Fortune magazine’s Global 500 list. This is the first attempt to create a conceptualization of Hofstede’s dimensions for organizational social media use. Design/methodology/approach To determine how Facebook is used by the Global 500 corporations, a content analysis was carried out based on the 2013 listing of the highest revenue corporations throughout the world. As a research method, content analysis allows researchers to examine the actual practices of communication by focusing on the information provided through textual and visual messages. Findings The results paint a mixed picture indicating that the global nature of these corporations is echoed in a somewhat similar overall presence on Facebook; but when the individual elements (About Us, updates, and media) are examined, statistical differences emerge in relation to the reflection of the cultural dimensions. Originality/value To the authors’ knowledge, this is the first work to match Facebook behaviors with Hofstede’s dimensions. This work needs to be replicated with other organizations to determine its staying power. In addition, future research might tap into agency and any consciousness on the part of social media managers in a specific direction. Depending on those findings, they might make important statements on the emergence of a global social media culture.


2015 ◽  
Vol 6 (2) ◽  
pp. 127-144 ◽  
Author(s):  
Andrew Duffy

Purpose – This paper aims to examine when travelers are more influenced by friends (word-of-mouth [WOM]) with limited knowledge of hotels but an understanding of the traveler, and when by review sites (electronic word-of-mouth [eWOM]) which have immense experience of hotels but cannot know the individual traveler. Sites such as TripAdvisor® offer millions of reviews, and travelers often reduce that to a manageable amount by focusing on reviews by writers who show homophily, i.e. are similar to them in terms of travel interests. These sites represent a form of eWOM recommendation; what is not clear is how much they replace or augment traditional WOM. Design/methodology/approach – Dual-method content analysis of semi-structured interviews with a heterogeneous purposive sample of regular users of TripAdvisor (N = 30), followed by a survey of TripAdvisor users (N = 237). Findings – Friends were considered the most credible information source, although friends showing greater homophily were more valued than others. However, in some circumstances, subjects found eWOM more credible: when they wanted greater certainty in their hotel choice, so complete information was important; when the hotel was for a special occasion or special people; and for feelings of empowerment. Most subjects compared all sources rather than relying on one. Originality/value – This study reminds hotel managers that while eWOM is accessible and analyzable, it may not fully represent guests’ opinions; hotels’ marketing strategy should balance it with other recommendation networks. As guests compare sources, consistency in all forms of customer engagement is also essential.


2015 ◽  
Vol 19 (3) ◽  
pp. 239-253 ◽  
Author(s):  
Jie Xu ◽  
Yiye Wu

Purpose – The purpose of this paper is to investigate the effects of using Twitter on American stakeholders’ crisis appraisal for organizations originated from two foreign countries with distinctively different perceptions. Design/methodology/approach – This study uses a 2 (medium: Twitter vs news release)×2 (country-of-origin: China vs France) factorial experiment. The participants (n=393) are recruited through the Amazon Mechanical Turk system (Mturks). Findings – The findings suggest that using Twitter substantially mitigates participants’ negative evaluation of the organization undergoing a crisis. Country-of-origin affects how individuals perceive the organization after it has experienced a crisis. In addition, participants’ product involvement intensifies the reputational threat specifically for the organization with a less favorable country-of-origin perception. Originality/value – This study is one of the few empirically based studies in international public relations research, using an experiment to extrapolate the effects of social media and country-of-origin on consumers’ crisis appraisal. This investigation reinforces the need to consider social media not just at the individual level, but also as a form of communication that can have broader consequences at the organizational level. In addition, it is important for company leaders to understand that the organization’s home country image may exacerbate the negative management outcomes during a crisis. It is expected that this study yields theoretically indicative, empirically informative, and culturally relevant results.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claire Roederer ◽  
Marc Filser

Purpose Based on a “Fill-the-Bottle” (FTB) challenge, this research explores how experiential design can help cause-related marketing. This study aims to show that experiences designed as anti-structural and anti-functional can raise awareness through action. Design/methodology/approach The authors study a corpus of 52 introspective journals and 60 pictures about the challenge, which entails filling empty bottles with cigarette butts from the streets as quickly as possible, then sharing pictures of the bottles on social media. Findings The anti-structural design of the experience activates the participants’ experiential system, and the social interactions between the participants and pedestrians construct meaning for the experience. The results further indicate that as follows: individuals’ frames of reference can explain whether they perceive the experience as liberatory or stochastic; anti-structural design can serve cause-related marketing by focusing on three stages: doing, showing and sharing; and experiential marketing can serve societal and social causes. Research limitations/implications This research involved a single field. Further research with more heterogeneous participants would be insightful. The power of experiential marketing to serve meaningful and collective causes should be encouraged. Further research should be conducted to understand and conceptualize these collective attempts to fight the dark sides of consumption. Practical implications In line with Pine and Gilmore’s (1999) advice to stage memorable experiences by working cautiously on cues, the FTB challenge analysis indicates that by focusing on material evidence and staging a specific sequence of doing something about it, showing everyone what is being done and expanding visibility by sharing artifacts of the action on social media, one can actually make people think about and remember the action. Social implications The “do-show-share” design that the FTB challenge uses can be relevant for many cause-related marketing efforts because it operates on both individual and collective levels. Originality/value This research offers a new perspective on experiential marketing by studying how experiences designed to be anti-structural can renew social, cause-related marketing tools.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shiu-Wan Hung ◽  
Min-Jhih Cheng ◽  
Chia-Jung Lee

PurposeThe purpose of this article was to explore the influence of individual perception and social climate on consumer-initiated group-buying purchase decisions. An extended cross-level research model was used to explain how a new mechanism for purchasing through personal interactions could work.Design/methodology/approachThis study utilised a questionnaire survey for data gathering. The subjects of the investigation were group-buying initiators. Hierarchical linear modelling (HLM) was used to experimentally examine the research hypotheses.FindingsThe empirical results of the study indicate that the social influence of critical mass can effectively promote positive attitudes and intentions towards consumer-initiated online group buying. An individuals' perception of an initiator's fairness influences their trust in the initiator. In addition, trust in the initiator can positively and significantly influence buyers' attitudes and intentions to online group buying.Originality/valueMost previous studies on online group-buying focus on how social media influences group-buying behaviours. This study extends social media research by introducing an extended cross-level model to provide a comprehensive investigation into online-shopping. It is a preliminary attempt to systematically verify relationships at the individual and aggregate levels. The decision to group buying requires a relationship of trust to be formed before any transaction takes place, thereby increasing the intention to make a purchase. As a result, group buying is perceived as positive when interpersonal communication is very efficient, or when social influence is high.


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