Online review response strategy and its effects on competitive performance

Online review response strategy and its effects on competitive performance Online reviews have transformed consumer behavior in information searching and sharing. Their growing popularity has enabled new differentiation strategies for lodging operators. More subtly, online review systems have forced hotel managers to compete through the effective use of information systems that they have not created or purchased. Therefore, managers in the tourism industry must adapt to the widespread use of external systems, incorporate them in their strategy and evaluate their effects.This study focuses on the impact of managements' quantity and quality of usage of online review systems. Our findings show that managerial response quantity positively impacts hotels’ competitive performance. Moreover, responses have a stronger positive impact when they address extreme reviews. We evaluate four response strategies and find significant performance differences among them. Our finding demonstrates the importance of proficiency in external information systems use because performance differs by “how” the system is used – not only “how much.” http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Tourism Management Elsevier

Online review response strategy and its effects on competitive performance

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Publisher
Elsevier
Copyright
Copyright © 2018 Elsevier Ltd
ISSN
0261-5177
D.O.I.
10.1016/j.tourman.2018.01.014
Publisher site
See Article on Publisher Site

Abstract

Online reviews have transformed consumer behavior in information searching and sharing. Their growing popularity has enabled new differentiation strategies for lodging operators. More subtly, online review systems have forced hotel managers to compete through the effective use of information systems that they have not created or purchased. Therefore, managers in the tourism industry must adapt to the widespread use of external systems, incorporate them in their strategy and evaluate their effects.This study focuses on the impact of managements' quantity and quality of usage of online review systems. Our findings show that managerial response quantity positively impacts hotels’ competitive performance. Moreover, responses have a stronger positive impact when they address extreme reviews. We evaluate four response strategies and find significant performance differences among them. Our finding demonstrates the importance of proficiency in external information systems use because performance differs by “how” the system is used – not only “how much.”

Journal

Tourism ManagementElsevier

Published: Aug 1, 2018

References

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