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Effects of managerial response on consumer eWOM and hotel performance

Effects of managerial response on consumer eWOM and hotel performance PurposeThis study aims to measures the effects of managerial response on consumer electronic word-of-mouth (eWOM) and hotel performance.Design/methodology/approachA 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.FindingsThis 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 implicationsThis study offers a practical model that enables hotel managers to orchestrate social media marketing approaches and efforts toward an optimal social media strategy.Originality/valueThis 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png international Journal of Contemporary Hospitality Management Emerald Publishing

Effects of managerial response on consumer eWOM and hotel performance

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0959-6119
DOI
10.1108/IJCHM-06-2015-0290
Publisher site
See Article on Publisher Site

Abstract

PurposeThis study aims to measures the effects of managerial response on consumer electronic word-of-mouth (eWOM) and hotel performance.Design/methodology/approachA 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.FindingsThis 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 implicationsThis study offers a practical model that enables hotel managers to orchestrate social media marketing approaches and efforts toward an optimal social media strategy.Originality/valueThis 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.

Journal

international Journal of Contemporary Hospitality ManagementEmerald Publishing

Published: Sep 12, 2016

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