Article

The power of expert identity: How website-recognized expert reviews influence travelers' online rating behavior

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Abstract

The objective of this paper is to study the effects of online user-generated “expert reviews” on travelers' behavior. After controlling for a large set of independent variables, the results show that as the number of expert reviews for a hotel increases, future traveler ratings for the hotel increase. However, the marginal effect of a greater number of expert reviews decreases. Further, as the reviewing expertise level of a traveler increases, the traveler posts more negative ratings, but the marginal effect of the level of reviewing expertise decreases. Our results also indicate that reviewing expertise can reinforce the positive effect of expert hotel reviews on travelers' rating behavior. The robustness of our results is confirmed by a Bayesian ordered logit model. Finally, the implications of the results are discussed in terms of research and practice.

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... Second, we explain the relationship between reviewing expertise and evaluative rating patterns. Extant research shows that compared to novices, experts are generally more critical (i.e., more negative) in their evaluations (Amabile 1983;Mollick and Nanda 2016;Schlosser 2005;Zhang, Zhang, and Yang 2016). Across our three field studies, we find this to be true, but only when reviewing experts evaluate service providers that generally provide excellent experiences (i.e., above 4.0 stars). ...
... Our findings complement and refine the conventional notion that expert recommendations highly affect consumer choice (Biswas, Biswas, and Das 2006;Chocarro and Cortiñas 2013;Karmarkar and Tormala 2010). Although the actual review content generated by experts is generally favored by consumers (Racherla and Friske 2012;Zhang et al. 2016), the attenuated impact experts have on the aggregate valence metric means that reviewing experts (vs. novices) have a less important role in shaping the service providers that consumers will consider before reading individual reviews (Ghose, Ipeirotis, and Li 2012;Vermeulen and Seegers 2009). ...
... A few studies have been published on reviewing experts (Liu and Park 2015;Zhang et al. 2016). Researchers have operationalized expertise in terms of number of past reviews generated; no overarching conceptual definition has yet been provided, and no empirical link has yet been tested, between online reviewing "expertise" and the traditional literature on expertise (Alba and Hutchinson 1987). ...
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... According to China Internet Network Information Center, as of December 2021, the size of online travel booking users in China reached 397 million, which accounts for 38.5% of the overall Internet users. Due to the popularity of social media platforms in the travel and hospitality sectors, clients are constantly searching online reviews when looking for pertinent information on websites for online travel agencies like C-Trip [3][4][5]. ...
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... As a result, promoting them can help companies stay competitive, as it certainly influences their consumers in terms of decision making (Hennig-Thurau andWalsh 2003, Zhang, Zhang, andYang 2016). Consumer comments has much to offer to RTE in terms of customer-focused evaluation, analyzing the customer benefits in detail in the end-use segments and allowing to work retroactively from the customer to the RTE, identifying the necessary actions to improve performance (Day, Foz, and Huszagh 1988). ...
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Purpose This paper aims to analyze if and to what extent mechanical artificial intelligence (AI)-embedded in hotel service robots-influences customers’ evaluation of AI-enabled hotel service interactions. This study deploys online reviews (ORs) analytics to understand if the presence of mechanical AI-related text in ORs influences customers’ OR valence across 19 leading international hotels that have integrated mechanical AI – in the guise of service robots – into their operations. Design/methodology/approach First, the authors identified the 19 leading hotels across three continents that have pioneered the adoption of service robots. Second, by deploying big data techniques, the authors gathered the entire population of ORs hosted on TripAdvisor (almost 50,000 ORs) and generated OR analytics. Subsequently, the authors used ordered logistic regressions analyses to understand if and to what extent AI-enabled hospitality service interactions are evaluated by service customers. Findings The presence of mechanical AI-related text (text related to service robots) in ORs influences positively electronic word-of-mouth (e-WOM) valence. Hotel guests writing ORs explicitly mentioning their interactions with the service robots are more prone to associate high online ratings to their ORs. The presence of the robot’s proper name (e.g., Alina, Wally) in the OR moderates positively the positive effect of mechanical AI-related text on ORs ratings. Research limitations/implications Hospitality practitioners should evaluate the possibility to introduce service robots into their operations and develop tailored strategies to name their robots (such as using human-like and short names). Moreover, hotel managers should communicate more explicitly their initiatives and investments in AI, monitor AI-related e-WOM and invest in educating their non-tech-savvy customers to understand and appreciate AI technology. Platform developers might create a robotic tag to be attached to ORs mentioning service robots to signal the presence of this specific element and might design and develop an additional service attribute that might be tentatively named “service robots.” Originality/value The current study represents the first attempt to understand if and to what extent mechanical AI in the guise of hotel service robots influences customers’ evaluation of AI-enabled hospitality service interactions.
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Extant literature has studied the relationship between identity disclosure and online consumer reviews, yet no research has investigated the effects of the introduction of an “anonymous review” option on consumers' online reviews. With a unique restaurant review data set from a most popular online review platform in China, we exploit a natural experiment setup in which the platform launched a new function of “anonymous review” that allows reviewers' choosing not to disclose their own information while posting reviews. We ground in the theories of deindividuation and social presence, and the notion of negativity bias to investigate the effects of anonymity on consumers' online review provision in terms of their rating behavior and emotional expressions in review texts. The results show that the anonymity function implementation induces a decrease in overall ratings and a decrease (increase) in positive (negative) emotions on average. Furthermore, using the reviews after the policy change, we find that, compared to non‐anonymous reviews, anonymous ones are usually with lower ratings and more (less) negative (positive) emotions, which can further induce subsequent reviewers' negative reviews. Our findings underscore the doubled‐sides of an “anonymous review” function the public policy makers, platform and restaurant managers need to balance in practice.
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What is the most useful online consumer review? Consumers face the challenge of identifying useful online consumer reviews, some of which might have been manipulated. Reviewer’s review volumes is the past behavior of a reviewer. Reviews are used by many online shopping websites. While reviewer cues are receiving increasing attention, the effect of reviewer’s review volumes on the perceived usefulness of online consumer review remains under-explored. This research explored the underlying neural mechanism of reviewer’s review volumes on the perceived usefulness of online consumer reviews by applying the event-related potentials (ERPs) approach. Behaviorally, a higher perceived usefulness rate and reduced reaction time were observed for the high-review-volume condition compared to the low-review-volume condition, indicating that the high-review-volume condition was more desirable to the participants. At the neural level, the high-review-volume condition elicited an attenuated N2 and an increased LPP compared with the low-review volume condition, suggesting a more positive evaluation of the high-review volume condition. These results showed the positive impact of the reviewer’s review volumes on the perceived usefulness of online consumer reviews and its potential neural substrates.
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This study investigates the effect of hotel website quality, social presence, affective commitment, and e-trust on travelers’ online hotel booking intentions. Smart-PLS software was applied to test the hypotheses. The results of this study explain how hotel website quality, social presence, affective commitment, and e-trust have a significant relationship with online hotel booking intentions. This study identifies how hotel website quality is a critical driver in developing affective commitment, e-trust, and online hotel booking intentions. Travelers who enjoy the social experience with the hotel website platform are more motivated to book a room at that hotel. This study confirms the vital role of social presence in enhancing e-trust and online hotel booking intentions and provides evidence of the importance of the holistic model in understanding travelers’ decision-making processes, especially when booking a hotel room.
Hospitality service providers' reputation and sales can be strongly damaged by low ratings on platforms such as Tripadvisor, Booking, or Yelp. In this research, we investigate how the potential damaging effects of poor ratings of a hospitality service providers' can be mitigated by corporate social responsibility (CSR) activities. Building on the self-affirmation theory, we suggest and provide evidence for the notion that CSR (vs. non-CSR) cues affect more positively guests’ evaluation of a service provider when online ratings are low. When the ratings increase, CSR cues are not better than other cues to improve evaluations. Further, we detail the underlying mechanism whereby guests allocate more weight to CSR (vs. non-CSR) cues when they form an evaluation of a low-rated (vs. higher-rated) service provider, which increases the warm-glow feelings that they anticipate and, eventually, their evaluation. We test our model with two experiments on two different samples (US and European), involving different CSR cues (environmental and social) and different types of service provider (hotel and restaurant). We then discuss the theoretical and managerial implications of our research for hospitality professionals, as well as for policy makers.
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Purpose The purpose of this study is to explore the effect of reviewer qualification and credibility (RQC) and hotel classification involving online hotel reviews (OHRs). The study examines the effects of the reviewer level as a proxy of RQC on review helpfulness and reviewing behavior (review rating, review length). The study also included hotel classification as a moderating variable. Design/methodology/approach Data from 1,968 reviews were collected from TripAdvisor.com using a web data-harvesting technique. Hypothesized relations in the model were tested with t -test and MANOVA analysis. Findings The empirical results show that the effect of reviewer level on review helpfulness is not significant. In addition, a high-level reviewer tends to leave a lower rating and a lengthier review than a low-level reviewer. Regarding the moderating effects, for the high-level reviewer, three-star independent hotels have a greater effect on review helpfulness. Research limitations/implications The study has several useful implications for researchers, hotel industry when managing OHR and disseminating information to their potential consumers. Practical implications The findings help online review website organizers manage the operation of RQC and hotel classification in a proper manner. Marketing managers, especially those of three-star independent hotels, can effectively utilize review management to the desired effect. Originality/value Unlike previous studies, this study explores the effect of RQC on review helpfulness and reviewing behaviors across the hotel classification. In addition, this study contributes to the hotel industry developing more effective online reviews from the reviewer level and diverse hotel types (three-star independent, four-star chain, five-star luxury hotels).
Purpose Online hotel ratings, a form of electronic word of mouth (eWOM), are becoming increasingly important to tourism and hospitality management. Using sentiment analysis based on the big data technique, this paper aims to investigate the relationship between customer sentiment and online hotel ratings from the perspective of customers’ motives in the context of eWOM, and to further identify the moderating effects of review characteristics. Design/methodology/approach The authors first retrieve 273,457 customer-generated reviews from a well-known online travel agency in China using automated data crawlers. Next, they exploit two different sentiment analysis methods to obtain sentiment scores. Finally, empirical studies based on threshold regressions are conducted to establish the asymmetric relationship between customer sentiment and online hotel ratings. Findings The results suggest that the relationship between customer sentiment and online hotel ratings is asymmetric, and a negative sentiment score will exert a larger decline in online hotel ratings, compared to a positive sentiment score. Meanwhile, the reviewer level and reviews with pictures have moderating effects on the relationship between customer sentiment and online hotel ratings. Moreover, two different types of sentiment scores output by different sentiment analysis methods verify the results of this study. Practical implications The moderating effects of reviewer level and reviews with pictures offer new insights for hotel managers to make different customer service policies and for customers to select a hotel based on reviews from the online travel agency. Originality/value This paper contributes to the literature by applying big data analysis to the issues in hotel management. Based on the eWOM communication theories, this study extends previous study by providing an analysis framework for the relationship between customer sentiment and online hotel ratings from the perspective of customers’ motives in the context of eWOM.
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Studies based on online textual data are increasingly used in the hospitality sector to gain better consumer insights. Using text mining of TripAdvisor reviews and mapping it to hard and soft attributes of SERVQUAL dimensions, this research attempts to identify service quality characteristics that influence the customers' online ratings of hotels. The moderating effects of the reviewer characteristics, namely (a) domestic vs foreign (b) novice vs experienced, (c) less vs more popular and (d) brief vs elaborate writing, on the relationship between quality attributes and online hotel ratings are also analyzed. The results imply that reviewers emphasize hard attributes of service quality in general, such as tangibles, reliability, and responsiveness, while providing online ratings to hotels. Furthermore, reviewer characteristics also influence the attributes emphasized in reviews and the resultant ratings. Finally, along with the theoretical contributions, managerial contributions, such as the usefulness of service planning outcomes, are discussed.
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Whilst there is extant research focusing on the link between hotel reviews and pricing there is scant attention paid to the impact of pricing on hotel review ratings. This paper presents a large scale study based on a novel dataset of more than 44,000 guest review ratings linked to the prices paid for rooms of an European hotel group. Through applying a panel regression analysis we reveal that expectancy-disconfirmation is generally stronger than the placebo effect and higher prices have a negative effect on review ratings, not only when assessing perceived value for money but also when evaluating perceived quality. We identify the trip and guest characteristics which impact on the price-review relationship. Findings provide hotel managers with key quantitative information for simultaneously calibrating quality and revenue targets. Substantial implications include an integrated approach for segmentation as a route to better manage pricing, revenue optimization and reputation.
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Tourist destinations are increasingly affected by travel-related information shared through social media. Drawing on dual-process theories on how individuals process information, this study examines the role of central and peripheral information processing routes in the formation of consumers' perceptions of the helpfulness of online reviews of mature destinations. We carried out a two-step process to address the perceived helpfulness of user-generated content, a sentiment analysis using advanced machine-learning techniques (deep learning), and a regression analysis. The database was 2023 comments posted on TripAdvisor about two iconic Venetian cultural attractions, St. Mark's Square (an open, free attraction) and the Doge's Palace (which charges an entry fee). Using deep-learning techniques, with logistic regression, we first identified which factors influenced whether a review received a “helpful” vote. Second, we selected those reviews which received at least one helpful vote to identify, through linear regression, the significant determinants of TripAdvisor users' voting behaviour. The results showed that reviewer expertise is influential in both free and paid-for attractions, although the impact of central cues (sentiment polarity, subjectivity, pictorial content) differs for both attractions. Our study suggests that managers should look beyond individual ratings and focus on the sentiment analysis of online reviews, which are shown to be based on the nature of the attraction (free vs. paid-for).
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Tendencias en la Investigación Universitaria. Una visión desde Latinoamérica, es una obra de producción científica de la Colección Unión Global, adscrita al Fondo Editorial Universitario Servando Garcés de la Universidad Politécnica Territorial de Falcón Alonso Gamero (UPTAG). Es una publicación internacional, seriada, continua, arbitrada con apertura a todas las áreas del conocimiento. En el volumen IX, ofrece XV capítulos de alta calidad intelectual y científica generados por diversos investigadores que muestran los resultados del quehacer académico, científico, tecnológico y humanístico desarrollado en los diferentes escenarios de la sociedad. En este sentido el volumen IX del libro Tendencias, consciente de la dinámica compleja e incierta de las realidades que enfrenta la ciencia, presenta una diversidad temática orientada a dar respuestas a las necesidades de la sociedad actual, por lo que el CAPÍTULO I, centra su discurso en el “Turismo en el corredor de balnearios para niños con limitaciones significativas en el funcionamiento intelectual, motriz y sensorial” con el fin de identificar el potencial que tienen los balnearios particularmente los del Corredor de Balnearios en el estado de Hidalgo para atender a la población con características especiales. En el CAPÍTULO II, se aborda el área de educación superior como una de las herramientas que poseen los país para enfrentar el fenómeno de la globalización, de allí que, se planteen “Estrategias de los organismos internacionales para el sistema de educación superior”, cuyo objetivo fue reflexionar sobre cómo la educación superior es vista por los organismos internacionales analizando las directrices del Banco Mundial (BM), hasta la Organización para la Cooperación y Desarrollo Económico (OCDE) y Organización de las Naciones Unidas para la Educación, la Ciencia y la Cultura (UNESCO).
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Internet techniques significantly influence the tourism industry and Internet data have been used widely used in tourism and hospitality research. However, reviews on the recent development of Internet data in tourism forecasting remain limited. This work reviews articles on tourism forecasting research with Internet data published in academic journals from 2012 to 2019. Then, the findings ae synthesized based on the following Internet data classifications: search engine, web traffic, social media, and multiple sources. Results show that among such classifications, search engine data are most widely incorporated into tourism forecasting. Time series and econometric forecasting models remain dominant, whereas artificial intelligence methods are still developing. For unstructured social media and multi-source data, methodological advancements in text mining, sentiment analysis, and social network analysis are required to transform data into time series for forecasting. Combined Internet data and forecasting models will help in improving forecasting accuracy further in future research.
Chapter
“Tendencias en la Investigación Universitaria. Una visión desde Latinoamérica”, es una obra de producción científica de la Colección Unión Global, adscrita al Fondo Editorial Universitario Servando Garcés de la Universidad Politécnica Territorial de Falcón Alonso Gamero (UPTAG). Es una publicación internacional, seriada, continua, arbitrada con apertura a todas las áreas del conocimiento. En el volumen IX, ofrece XV capítulos de alta calidad intelectual y científica generados por diversos investigadores que muestran los resultados del quehacer académico, científico, tecnológico y humanístico desarrollado en los diferentes escenarios de la sociedad. En este sentido el volumen IX del libro Tendencias, consciente de la dinámica compleja e incierta de las realidades que enfrenta la ciencia, presenta una diversidad temática orientada a dar respuestas a las necesidades de la sociedad actual.
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“Tendencias en la Investigación Universitaria. Una visión desde Latinoamérica”, es una obra de producción científica de la Colección Unión Global, adscrita al Fondo Editorial Universitario Servando Garcés de la Universidad Politécnica Territorial de Falcón Alonso Gamero (UPTAG). Es una publicación internacional, seriada, continua, arbitrada con apertura a todas las áreas del conocimiento. En el volumen IX, ofrece XV capítulos de alta calidad intelectual y científica generados por diversos investigadores que muestran los resultados del quehacer académico, científico, tecnológico y humanístico desarrollado en los diferentes escenarios de la sociedad. En este sentido el volumen IX del libro Tendencias, consciente de la dinámica compleja e incierta de las realidades que enfrenta la ciencia, presenta una diversidad temática orientada a dar respuestas a las necesidades de la sociedad actual.
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FULL TEXT AVAILABLE: https://elements.vu.edu.au/repository/files/?rep=1&pub=24583&file-url=http%3A%2F%2Fvuir.vu.edu.au%2Frt4eprints%2Ffile%2F16595%2F2008%2520JHMM%2520UGC%2520Article%2520Post%2520print.pdf This article reports on research that investigates how websites containing user-generated content (UGC) are used by consumers and the role they have on their information search and travel behavior. The research, conducted via an online survey, represents the views of more than 12,000 hospitality and tourism consumers. The results suggest that although these sites are popular, they are not yet considered to be as credible or trustworthy as existing sources of travel information such as government-sponsored tourism websites. UGC (or Web 2.0 sites, as they are also known) appear to act as an additional source of information that travelers consider as part of their information search process, rather than as the only source of information. The study is significant in that it appears to be one of the few investigations that captures the perceptions of the travel consumer and the way they relate to the information value associated with Web 2.0 sites.
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We investigate the evolution of online ratings over time and sequence. We first establish that there exist two distinct dynamic processes, one as a function of the amount of time a book has been available for review and another as a function of the sequence of reviews themselves. We find that, once we control for calendar date, the residual average temporal pattern is increasing. This is counter to existing findings that suggest that without this calendar-date control, the pattern is decreasing. With respect to sequential dynamics, we find that ratings decrease: the nth rating is, on average, lower than the n.1th when controlling for time, reviewer effects, and book effects. We test and find some support for existing theories for this decline based on motivation. We then offer two additional explanations for this "order effect." We find support for the idea that one's ability to assess the diagnosticity of previous reviews decreases: when previous reviewers are very different, more reviews may thus lead to more purchase errors and lower ratings.
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Impression management, the process by which people control the impressions others form of them, plays an important role in interpersonal behavior. This article presents a 2-component model within which the literature regarding impression management is reviewed. This model conceptualizes impression management as being composed of 2 discrete processes. The 1st involves impression motivation-the degree to which people are motivated to control how others see them. Impression motivation is conceptualized as a function of 3 factors: the goal-relevance of the impressions one creates, the value of desired outcomes, and the discrepancy between current and desired images. The 2nd component involves impression construction. Five factors appear to determine the kinds of impressions people try to construct: the self-concept, desired and undesired identity images, role constraints, target's values, and current social image. The 2-component model provides coherence to the literature in the area, addresses controversial issues, and supplies a framework for future research regarding impression management.
Article
This article describes a research agenda for investigating the relationship between tourism and the Chinese Dream, informed by the G20 First East-West Dialogue on Tourism and the Chinese Dream held in late 2014 on Australia’s Gold Coast. Six themes comprise this agenda, including (1) clarification of the “Chinese Dream” construct, (2) connections between the Dream, tourism and consumers, (3) geopolitical considerations, (4) conventional Triple Bottom Line sustainability considerations, (5) tourism and nontourism systems as open states, and (6) hybrid research perspectives. All themes are permeated by an implicit seventh theme of rapid change.
Article
Online product reviews are increasingly important for consumer decisions, yet we still know little about how reviews are generated in the first place. In an effort to gather more reviews, many websites encourage user interactions such as allowing one user to subscribe to another. Do these interactions actually facilitate the generation of product reviews? More importantly, what kind of reviews do such interactions induce? We study these questions using data from one of the largest product review websites where users can subscribe to one another. By applying both panel data and a flexible matching method, we find that as users become more popular, they produce more reviews and more objective reviews; however, their numeric ratings also systematically change and become more negative and more varied. Such trade-off has not been previously documented and has important implications for both product review and other user-generated content websites.
Article
In this paper, we use unique data from the market for Bordeaux wine to test the hypothesis that consumers are willing to pay for expert opinion because it is accurate. Using proprietary indicators of the quality of the vintage, which are based on both publicly and privately available information, we find that additional publicly available information on the weather improves the expert's predictions of subsequent prices. This establishes that the expert opinions are not efficient, in the sense that they can be easily improved, and that these opinions must be demanded, at least in part, for some purpose other than their accuracy. (JEL Classification: D8, Q13)
Article
The rapid growth of information generated by consumers of tourism and hospitality services calls for a systematic review of how user-generated content (UGC) has been applied in tourism and hospitality research. This study surveyed 122 peer-reviewed journal articles and conference proceedings that used UGC as a data source. The study investigates (a) the scope of the tourism and hospitality issues that are addressed using available UGC; (b) the methods that have been applied to UGC data to achieve research objectives; and (c) the software that has been used to collect UGC and extract information from large UGC data sets. The study also presents the emerging topics and challenges in UGC research.
Article
Third-party product reviews (TPRs) have become ubiquitous in many industries. Aided by communication technologies, particularly on the Internet, TPRs are widely available to consumers, managers, and investors. The authors examine whether and how TPRs of new products influence the financial value of firms introducing the products. An event study covering 14 major media and professional reviews of movies released by 21 studios shows that TPRs exert significant impact on stock returns in the direction of their valence. However, the impact comes from the valence of a review that is measured relative to other, previously published reviews and not from the absolute valence of the review itself. The authors further study the dynamics of TPR impact on firm value and find that the impact exists only for prerelease reviews and is the strongest on the product release date, though it disappears when sales information becomes available after product release. These results demonstrate that TPRs play significant roles as the investors update their expectation about new product sales potential. The authors also find that advertising spending increases the positive impact of TPRs on firm value and buffer the negative impact. Therefore, firms could strategically use marketing instruments such as advertising to moderate the impact of TPRs.
Book
This book provides a compact self-contained introduction to the theory and application of Bayesian statistical methods. The book is accessible to readers havinga basic familiarity with probability, yet allows more advanced readers to quickly grasp the principles underlying Bayesian theory and methods. The examples and computer code allow the reader to understand and implement basic Bayesian data analyses using standard statistical models and to extend the standard models to specialized data analysis situations. The book begins with fundamental notions such as probability, exchangeability and Bayes' rule, and ends with modern topics such as variable selection in regression, generalized linear mixed effects models, and semiparametric copula estimation. Numerous examples from the social, biological and physical sciences show how to implement these methodologies in practice. Monte Carlo summaries of posterior distributions play an important role in Bayesian data analysis. The open-source R statistical computing environment provides sufficient functionality to make Monte Carlo estimation very easy for a large number of statistical models and example R-code is provided throughout the text. Much of the example code can be run as is' in R, and essentially all of it can be run after downloading the relevant datasets from the companion website for this book.
Article
Customer reviews posted on the web and through social media (electronic word of mouth [eWOM]) have grown in importance for tourism businesses, but most studies have examined the effects of the content of reviews, particularly negative reviews (i.e., their valence). This study considers both the valence and the volume of eWOM using a broad and varied sample of 16,680 hotels in 249 tourist areas. The study found a relationship between valence and volume, in the sense that early reviews of a business tend to be disproportionately negative. As the number of reviews increases, the valence becomes more balanced, and the negative effect is mitigated. Moreover, the study agrees with other findings that positive comments are more common than negative reviews. Whether or not hotels actively respond to negative reviews, one implication of this study is that hoteliers should try to increase the number of reviews they receive to balance the positive and negative representations of their property (in addition to investigating and correcting the causes of negative comments). Those promoting tourist destinations should follow a similar strategy of facilitating access to customer review sites to obtain a balance of negative and favorable ratings.
Article
The objective of the paper is to study the impact that hotel guests reviews posted on consumer-generated websites have on the consumer decision-making process and service expectations.An experimental study has been conducted to test the hypotheses and the research question. 349 young adults were involved in an online survey that asked to imagine searching for a hotel and reading other customers’ reviews of a hypothetical chosen hotel. Three scenarios were created by studying a few comments posted by customers on the main websites used by tourists.Results show a positive correlation between both hotel purchasing intention and expectations of the customers and valence of the review. On the contrary, the presence of hotel managers’ responses to guests’ reviews has a negative impact on purchasing intentions.The study enriches the stream of research on word-of-mouth in the hospitality industry and analyses a new operational problem for lodging managers. Hotels should reply to online customer reviews or not?
Article
The notion of electronic word-of-mouth (eWOM) communication has received considerable attention in both business and academic communities. Numerous studies have been conducted to examine the effectiveness of eWOM communication. The scope of published studies on the impact of eWOM communication is large and fragmented and little effort has been made to integrate the findings of prior studies and evaluate the status of the research in this area. In this study, we conducted a systematic review of eWOM research. Building upon our literature analysis, we used the social communication framework to summarize and classify prior eWOM studies. We further identified key factors related to the major elements of the social communication literature and built an integrative framework explaining the impact of eWOM communication on consumer behavior. We believe that the framework will provide an important foundation for future eWOM research work.
Article
Introduction While product review systems that collect and disseminate opinions about products from recent buyers (Table 1) are valuable forms of word-of-mouth communication, evidence suggests that they are overwhelmingly positive. Kadet notes that most products receive almost five stars. Chevalier and Mayzlin also show that book reviews on Amazon and Barnes & Noble are overwhelmingly positive. Is this because all products are simply outstanding? However, a graphical representation of product reviews reveals a J-shaped distribution (Figure 1) with mostly 5-star ratings, some 1-star ratings, and hardly any ratings in between. What explains this J-shaped distribution? If products are indeed outstanding, why do we also see many 1-star ratings? Why aren't there any product ratings in between? Is it because there are no "average" products? Or, is it because there are biases in product review systems? If so, how can we overcome them? The J-shaped distribution also creates some fundamental statistical problems. Conventional wisdom assumes that the average of the product ratings is a sufficient proxy of product quality and product sales. Many studies used the average of product ratings to predict sales. However, these studies showed inconsistent results: some found product reviews to influence product sales, while others did not. The average is statistically meaningful only when it is based on a unimodal distribution, or when it is based on a symmetric bimodal distribution. However, since product review systems have an asymmetric bimodal (J-shaped) distribution, the average is a poor proxy of product quality. This report aims to first demonstrate the existence of a J-shaped distribution, second to identify the sources of bias that cause the J-shaped distribution, third to propose ways to overcome these biases, and finally to show that overcoming these biases helps product review systems better predict future product sales. We tested the distribution of product ratings for three product categories (books, DVDs, videos) with data from Amazon collected between February--July 2005: 78%, 73%, and 72% of the product ratings for books, DVDs, and videos are greater or equal to four stars (Figure 1), confirming our proposition that product reviews are overwhelmingly positive. Figure 1 (left graph) shows a J-shaped distribution of all products. This contradicts the law of "large numbers" that would imply a normal distribution. Figure 1 (middle graph) shows the distribution of three randomly-selected products in each category with over 2,000 reviews. The results show that these reviews still have a J-shaped distribution, implying that the J-shaped distribution is not due to a "small number" problem. Figure 1 (right graph) shows that even products with a median average review (around 3-stars) follow the same pattern.
Article
This paper explores effects of the emotions embedded in a seller review on its perceived helpfulness to readers. Drawing on frameworks in the emotion and cognitive processing literatures, we propose that over and above a well-known negativity bias, the impact of discrete emotions in a review will vary, and that one source of this variance is reader perceptions of reviewers’ cognitive effort. We focus on the roles of two distinct, negative emotions common to seller reviews: anxiety and anger. In Studies 1 and 2, experimental methods were utilized to identify and explain the differential impact of anxiety and anger in terms of perceived reviewer effort. In Study 3, seller reviews from Yahoo! Shopping websites were collected to examine the relationship between emotional review content and helpfulness ratings. Our findings demonstrate the importance of examining discrete emotions in online word-of-mouth, and they carry important practical implications for consumers and online retailers.
Article
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.
Article
Travel blogs are becoming an increasingly important mechanism for exchanging information among tourists, and for destinations and businesses to learn about the attitudes of their markets. The purpose of this research was to analyse blog entries relating to trips to Austria posted to www.travelblog.org. The research sought to establish similarities and differences between those posting blog entries and Austria's tourism markets. It analysed the content of blog entries to identify positive and negative perceptions of Austria as a tourism destination, and compared these with other research into Austria's destination image. The research found a largely homogenous population of blog authors that had quite different demographic and touristic characteristics from Austria's total population of visitors. Blog authors were visiting Austria as part of a larger European tour, and they provided relatively few insights that might assist in understanding Austria's destination image. The value of monitoring blogs may depend on locating blog authors who are more likely to influence key markets.
Article
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.
Article
In this paper, the impact of two service quality metrics (star rating and customer rating) on hotel room sales and prices is investigated. Two of the most popular tourist destinations in the world, Paris and London, are chosen. It is found that a higher customer rating significantly increases the online sales of hotels. The study results show that a 1% increase in online customer rating increases Sales per Room up to 2.68% in Paris and up to 2.62% in London. Contrary to expectations, higher stars do not increase the sales. It is also shown that higher customer ratings result in higher prices of the hotel and the prices of high star hotels are more sensitive to online customer ratings.
Article
Extant research has shown that consumer online product ratings can significantly influence product sales. However, these ratings have also been shown to be subject to a number of social influences. In other words, posted product ratings not only reflect the customers’ experience with the product, but they also reflect the influence of others’ ratings. The objective of this paper is to model the arrival of posted product ratings in an effort to measure the impact of any social dynamics that may occur in the ratings environment on both subsequent rating behavior as well as product sales. Our modeling efforts are two fold. First, we model the arrival of product ratings and separate the effect of social influences from the underlying (or baseline) ratings behavior. Second, we model product sales as a function of posted product ratings. However, rather than simply modeling the effects of observed ratings, we decompose ratings into a baseline rating, the contribution of social influence and idiosyncratic error. From this model, we can measure the overall sales impact resulting from observed social dynamics. We consider both direct effects on sales as well as indirect effects that result from the influence of dynamics on future ratings (and thus future sales).We show that ratings behavior is significantly affected by previously posted ratings. We further show that the effect on sales resulting from this social dynamic is significant. With the increased popularity of online discussion and ratings forums, many marketers have been investing in efforts to moderate these conversations or to contribute comments of their own in order to create a more positive ratings environment. However, our results show that while these efforts can directly improve sales, the overall effect is relatively short-lived once indirect effects are considered.
Article
We document that purchasing (selling short) stocks with the most (least) favorable consensus recommendations, in conjunction with daily portfolio rebalancing and a timely response to recommendation changes, yield annual abnormal gross returns greater than four percent. Less frequent portfolio rebalancing or a delay in reacting to recommendation changes diminishes these returns; however, they remain significant for the least favorably rated stocks. We also show that high trading levels are required to capture the excess returns generated by the strategies analyzed, entailing substantial transactions costs and leading to abnormal net returns for these strategies that are not reliably greater than zero.
Article
Although word-of-mouth (WOM) is recognized as a powerful force in persuasion,we know little about the new communication phenomenon known as e-WOM. One of the main forms of e-WOM is the product reviews consumers post on different Web sites, and how this form of e-WOM stands up to this claim is yet unknown. For example, do consumers trust the accuracy of these reviews posted by anonymous reviewers, and, do readers trust negative and positive reviews equally? Past research has shown that people tend to weight negative information more than positive information during evaluation.Through an observation study and two laboratory experiments,we investigate the existence of this negativity effect in e-WOM consumer reviews for utilitarian versus hedonic products,and investigate the influence of the reader's attributions regarding the reviewer's motivations on this. Both types of studies show that product type moderates the effect of review valence, and readers exhibit a negativity bias for utilitarian product reviews only.Furthermore, the lab studies show that the reader's attributions about the motivations of the reviewer mediate the effect of this moderation on their attitude about the review.We find that compared with the utilitarian case, readers of negative hedonic product reviews are more likely to attribute the negative opinions expressed, to the reviewer's internal (or nonproduct related) reasons; and therefore are less likely to find the negative reviews useful. However, in the utilitarian case, readers' are more likely to attribute the reviewer's negative opinions to external (or product related) motivations, and therefore find negative reviews more useful than positive reviews on average.
Article
Despite a substantial literature on the economics of the arts, there has been virtually no analysis of the role of criticism in the market for the arts. This paper discusses a number of problems which emerge in attempting such an analysis.
Article
Using edited excerpts from actual negative and positive book reviews, this research examined the hypothesis that negative evaluators of intellectual products will be perceived as more intelligent than positive evaluators. The results strongly supported the hypothesis. Negative reviewers were perceived as more intelligent, competent, and expert than positive reviewers, even when the content of the positive review was independently judged as being of higher quality and greater forcefulness. At the same time, in accord with previous research, negative reviewers were perceived as significantly less likable than positive reviewers. The results on intelligence ratings are seen as bolstering the self-presentational explanation of the tendency shown by intellectually insecure individuals to be negatively critical. The present methodology is contrasted to that of previous research which obtained apparently contradictory results.