The signaling effect of management response in engaging customers: A study of the hotel industry

Published on Oct 1, 2017in Tourism Management10.967
· DOI :10.1016/J.TOURMAN.2017.03.009
Chunyu Li6
Estimated H-index: 6
(Guangdong University of Foreign Studies),
Geng Cui25
Estimated H-index: 25
(Lingnan University),
Ling Peng11
Estimated H-index: 11
(Lingnan University)
Hotels today actively respond to online reviews given their tremendous influence on travelers' decisions. Yet, the questions of how to respond to online reviews continue to baffle hotel managers. By focusing on prospective travelers, we propose the effective management response signals hotels' care for customers and quality of service. Particularly, we postulate the frequency, speed and length of response influence the effectiveness of signaling in reducing information asymmetry. Based on the large-scale field data from TripAdvisor, this study demonstrates that the frequency and speed of response significantly enhance travelers’ engagement as indicated by more reviews, higher average valence, more votes for helpfulness, and higher popularity ranking. Furthermore, the frequent and speedy response is more effective for budget (vs. premium) hotels. Thus, management response to online reviews serves as a critical channel of communication to engage customers.
📖 Papers frequently viewed together
#1Beverley Sparks (Griffith University)H-Index: 52
#2Kevin Kam Fung So (USC: University of South Carolina)H-Index: 22
Last. Graham Leslie Bradley (Griffith University)H-Index: 31
view all 3 authors...
Our research examines the perceptions and evaluations of prospective customers toward an online negative review and any accompanying hotel response. The study explores two main issues: whether the presence (versus absence) of an organizational response to negative customer reviews affects the inferences potential consumers draw about the target business, and which aspects of responses affect their impressions. We test the effects of four variables associated with a response: source of response, ...
#1Mei Rose (UAA: University of Alaska Anchorage)H-Index: 5
#2Jeffrey G. Blodgett (University of Houston–Victoria)H-Index: 19
The purpose of this study was to determine whether it is beneficial for service providers, such as hotels and restaurants, to respond to online negative reviews, and (a) whether company reputation is moderated by the number of negative versus positive reviews and (b) whether the underlying issue is attributed to controllable versus uncontrollable factors. To test the hypotheses, a 2 × 2 × 2 quasi-experimental design was utilized. Respondents were asked to imagine that they were planning a trip t...
#1Roderick J. BrodieH-Index: 56
#2Linda D. HollebeekH-Index: 35
Last. Jodie Conduit (University of Auckland)H-Index: 18
view all 3 authors...
Editorial, Roderick J. Brodie, Linda D. Hollebeek and Jodie Conduit Part 1: Engagement Conceptualisations 1. Customer Engagement and Value Co-creation, Matthew Alexander and Elina Jaakkola 2. Economic Outcomes of Customer Engagement: Emerging findings, contemporary theoretical perspectives, and future challenges, Sander F. M. Beckers, Jenny van Doorn and Peter C. Verhoef 3. Partner Engagement: A perspective on B2B engagement, Shiri D. Vivek, Vivek Dalela and Sharon E. Beatty4. Exploring Customer...
#1Kevin Kam Fung SoH-Index: 22
#2Ceridwyn KingH-Index: 28
Last. Ying WangH-Index: 21
view all 4 authors...
Customer engagement has recently emerged in both academic literature and practitioner discussions as a brand loyalty predictor that may be superior to other traditional loyalty antecedents. However, empirical inquiry on customer engagement is relatively scarce. As tourism and hospitality firms have widely adopted customer engagement strategies for managing customer–brand relationships, further understanding of this concept is essential. Using structural equation modeling, this study investigates...
#1Markus Schuckert (PolyU: Hong Kong Polytechnic University)H-Index: 22
#2Xianwei Liu (HIT: Harbin Institute of Technology)H-Index: 10
Last. Rob Law (PolyU: Hong Kong Polytechnic University)H-Index: 98
view all 3 authors...
Abstract We employ a secondary data source of more than 86,000 customer ratings of Hong Kong star-rated hotels to explore the distribution and difference in rating behavior of English and non-English speaking guests in an online environment. We find that (a) English speaking guests prefer high-class hotels, (b) non-English speaking guests are more fastidious about five-star hotels and demand higher service quality, while English speaking guests desire bigger rooms in four-star hotels, and (c) sa...
#1Hyounae (Kelly) Min (WSU: Washington State University)H-Index: 9
#2Yumi Lim (VT: Virginia Tech)H-Index: 1
Last. Vincent P. Magnini (VT: Virginia Tech)H-Index: 30
view all 3 authors...
An analysis of three types of responses to negative hotel reviews finds that the response generally should follow the same principles as answering a customer complaint in person. Based on a series of hypothetical responses to a negative review, this study finds that inserting an empathy statement in response to the negative review improved the ratings of the response among a sample of university students. Likewise, this group of 176 potential customers rated the response more favorably when the ...
#1Karen Xie (DU: University of Denver)H-Index: 18
#2Zili Zhang (HIT: Harbin Institute of Technology)H-Index: 15
Last. Ziqiong Zhang (HIT: Harbin Institute of Technology)H-Index: 18
view all 3 authors...
Abstract The business case for investing in online reputation has received increasing scrutiny in recent years. This study identifies the business value of consumer reviews and management responses to hotel performance. We present a panel data analysis of online consumer reviews and management responses of 843 hotels on a hotel review website. The results show that overall rating, attribute ratings of purchase value, location and cleanliness, variation and volume of consumer reviews, and the num...
#1Grigori Sidorov (IPN: Instituto Politécnico Nacional)H-Index: 20
#2Alexander Gelbukh (IPN: Instituto Politécnico Nacional)H-Index: 50
Last. David Pinto (BUAP: Benemérita Universidad Autónoma de Puebla)H-Index: 17
view all 4 authors...
We show how to consider similarity between features for calculation of similarity of objects in the Vector Space Model (VSM) for machine learning algorithms and other classes of methods that involve similarity between objects. Unlike LSA, we assume that similarity between features is known (say, from a synonym dictionary) and does not need to be learned from the data.We call the proposed similarity measure soft similarity. Similarity between features is common, for example, in natural language p...
#1Chung Hun Lee (GMU: George Mason University)H-Index: 7
#2David A. Cranage (PSU: Pennsylvania State University)H-Index: 20
Although many hospitality organizations strive to handle negative word of mouth (NWOM) online, limited research has attempted to understand the influence of NWOM on potential consumers’ buying behaviors in order to suggest the appropriate organizational response strategies to NWOM communication. In an attempt to bridge this gap, the authors identified the roles of consensus in NWOM communication and how organizational responses to NWOM affect the ways in which potential consumers evaluate servic...
#1Bin Gu (ASU: Arizona State University)H-Index: 30
#2Qiang Ye (HIT: Harbin Institute of Technology)H-Index: 26
With the growing influence of online social media, firms increasingly take an active role in interacting with consumers in social media. For many firms, their first step in online social media is management responses, where the management responds to customers' comments about the firm or its products and services. In this article, we measure the impact of management responses on customer satisfaction using data retrieved from a major online travel agency in China. Applying a panel data model tha...
Cited By62
#1Xiaoyun Han (SYSU: Sun Yat-sen University)H-Index: 2
#2Shuping Chen (SYSU: Sun Yat-sen University)
Last. Bing Chen (SYSU: Sun Yat-sen University)
view all 3 authors...
Abstract null null Researchers have acknowledged that focusing only on single-actor engagement is insufficient to address the nature of multi-actor, value co-creation within a service ecosystem. This study aims to understand how multi-actor service ecosystems work. Given the spillover effects of multi-actor engagement, this study proposes a multilevel, dual-path model, through which employee job and organizational engagement influence customer engagement. Mplus 7.31 was adopted to analyze the mu...
#2Y.-B. Yang (TU: Temple University)H-Index: 25
The helpfulness of online reviews greatly facilitates travelers’ information searches, and helpful reviews can popularize travel service providers within a virtual environment. This study examines ...
Abstract null null Foreign institutional capital performs a critical role in the development of the tourism industry. Little research has been conducted to understand how foreign institutional investors choose tourism firms from the governance perspective. The primary purpose of the current study is to bridge this research gap by examining the signaling roles of CEO ownership, domestic institutional ownership, and institutional directors in preferences of foreign institutional investors. Outcome...
Abstract null null Online negative reviews and managerial responses have decisive impacts on the attitudes and behavior of the prospective customers, who read the information from reviews and responses and gain insights about products and seller services for making an online purchasing decision. This study, based on the category diagnosticity theory and the literature on managerial responses, develops a research framework to explain the relationships between online negative reviews, managerial r...
#1Yuangao Chen (Zhejiang University of Finance and Economics)H-Index: 12
#2Wangyan Jin (Zhejiang University of Finance and Economics)
Last. Shuiqing Yang (Zhejiang University of Finance and Economics)
view all 5 authors...
#1Ernest Emeka Izogo (UJ: University of Johannesburg)H-Index: 12
#2Mercy Mpinganjira (UJ: University of Johannesburg)H-Index: 13
Last. Hongfei Liu (University of Southampton)H-Index: 6
view all 4 authors...
Electronic word-of-mouth (eWOM) communication on social media has revolutionized how travelers search for and share information and how they interact with one another digitally. This research exami...
#1Shan Liu (Xi'an Jiaotong University)H-Index: 27
#2Na Wang (Xi'an Jiaotong University)H-Index: 1
Last. Mike Gallivan (Georgia Institute of Technology)H-Index: 1
view all 4 authors...
Abstract Hotel managers increasingly compose rote responses (e.g., similar responses repeated from prior responses) to reviews when dealing with customers' opinions while improving efficiency and saving cost. However, such responses may be ineffective because they are unspecific and add little information to reviewers' comments. To address this dilemma, we examine the degree of managers' rote responses to identify the similarity of managers' response texts. Basing on panel data of 334,671 review...
#1Amal Ponathil (Clemson University)H-Index: 6
#2Amro Khasawneh (UNC: University of North Carolina at Chapel Hill)H-Index: 6
Last. Kapil Chalil Madathil (Clemson University)H-Index: 16
view all 0 authors...
Abstract null null The home improvement service industry is growing rapidly, and the advancement in technology has made information about service providers, such as customer reviews, accessible with a few clicks. However, the impact of anecdotal information, like reviews and a service provider's response to a review, have not been studied extensively in the home improvement service industry. Using the Data Frame Theory of Sensemaking, this study investigated the combined effect of these two vari...
#1Hakan Boz (Uşak University)H-Index: 6
#2Erdogan Koc (BAU: Bahçeşehir University)H-Index: 16
This study investigates the extent to which hospitality employees are aware of their facial expression/emotion recognition abilities in interacting with customers. As a sign of satisfaction and ser...
This website uses cookies.
We use cookies to improve your online experience. By continuing to use our website we assume you agree to the placement of these cookies.
To learn more, you can find in our Privacy Policy.