Should businesses keep consistent performance between channels? Empirical evidence from the impact of rating discrepancy on demand

Abstract

Consumers often search for and compare the online and offline performance of businesses, indicated by consumer ratings, before they make purchases. In this study, using empirical evidence from the restaurant industry, we examine the impact of consumer rating discrepancy between online and offline channels on online demand. We find that channel rating discrepancy for overall performance, products, and services negatively affects online demand. In addition, higher prices amplify the negative effect of channel rating discrepancy on consumer online purchase behavior. The negative discrepancy effect has heterogeneity that depends on the business's properties (i.e., chain vs. independent). Our findings suggest that companies should take an integrated approach to make cross-channel performance consistent. With consistent performance, companies can have a better overall performance that will attract consumer demand.

Order effect of multi‐touchpoints on Generation Z consumers

“…C2C interactions often occur in service scenarios. Previous studies have analysed cross-channel C2C interactions in the catering environment (Yan et al, 2022). Libai et al (2010) have proposed that the quantity, quality and sensory input of customer interactions differ in different channels.…”