The influence of internet customer reviews on the online sales and prices in hotel industry

Öğüt, Hulisi; Taş, Bedri Kamil Onur

doi:10.1080/02642069.2010.529436

Cited by 310 publications

(200 citation statements)

References 30 publications

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“…With respect to star rating, online customer rating is increasingly considered by potential consumers as a signal of quality (Öğüt and Onur Taş, 2012). This implies that online customer rating might be strongly associated tp hotel occupancy.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…While it is known that the level of the category implies a different customer' expectation and different prices (Zhang et al, 2011;Ariffin and Maghzi, 2012;Ye et al, 2014), the effect of star rating on occupancy is almost unexplored. The only study that measures this is the one of Öğüt and Onur Taş (2012), which presents star rating and online reviews as similar constructs of quality. Showing that having a high star rating does not drive hotel occupancy, the authors conclude that eWOM is the most effective measure to increase sales.…”

Section: Other Factorsmentioning

confidence: 99%

“…Customer rating dynamics have a direct effect on product sales (Moe and Trusov, 2011), therefore they can significantly increase hotel online sales and pricing (Öğüt and Onur Taş, 2012), making online transactions less risky (Ba and Pavlou, 2002). With respect to star rating, online customer rating is increasingly considered by potential consumers as a signal of quality (Öğüt and Onur Taş, 2012).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…Recent studies have appeared quantifying the influence online reviews can have on the purchases of movies (Dellarocas et al, 2007;Duan et al, 2008), music (Chintagunta et al, 2010) and, to some extent, hotels (Ye et al, 2011;Anderson, 2012;Öğüt and Onur Taş, 2012;Kim et al, 2015a). This paper intends to measure the association of user-generated content (online reviews) to hotel occupancy rates.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The influence of e-word-of-mouth on hotel occupancy rate

Viglia¹,

Minazzi

Buhalis

2016

IJCHM

283

192

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Purpose -Online reviews have become increasingly important for customer decisionmaking. The hotel industry represents a noticeable case. Consumer reviews posted on websites such as Bookings.com, TripAdvisor, and Venere.com play a critical role in consumers' choice of a hotel. For this reason a number of recent studies analyses different aspects of online reviews. The purpose of this paper is to investigate their effects in terms of hotel occupancy rates.Design/methodology/approach -The paper measures through regression analysis the impact of three dimensions of consumer reviews (i.e. review score, review variance and review volume) on the occupancy rates of 346 hotels located in Rome, isolating a number of other factors that might also affect demand.Findings -Review score is the dimension with the highest impact. The results suggest that, after controlling for other variables, a one-point increase in the review score is associated to an increase in the occupancy rate by 7.5 percentage points. Regardless the review score, the number of reviews has a positive effect, but with decreasing returns, implying that the higher the number of reviews, the lower the beneficial effect in terms of occupancy rates is.Practical implications -The findings quantify the strong association of online reviews to occupancy rates suggesting the use of appropriate reputational management systems to increase hotel occupancy and therefore performance.2 Originality/Value -A major contribution of this paper is its comprehensiveness in analysing the relation between online consumer reviews and occupancy across a heterogeneous sample of hotels.

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Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Other Factorsmentioning

confidence: 99%

Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The influence of e-word-of-mouth on hotel occupancy rate

Viglia¹,

Minazzi

Buhalis

2016

IJCHM

283

192

View full text Add to dashboard Cite

show abstract

“…scores provided by tourists in the websites of the hotels and intermediaries, stars given by travellers, etc.-on the perceived value of each hotel offer and on future buying intention (Vermeulen & Seegers, 2009;Ogut & Taj, 2012;Sparks, Perkins & Buckley, 2013). Based on the cited literature, the following hypotheses have been created:…”

Section: Distribution Channelmentioning

confidence: 99%

Do Low Price Signals Influence Online Purchases of Tourist Accommodation Services? The Moderating Role of Gender

Vega¹,

Gil²,

Vecchio³

2014

BMR

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Based on an experimental design applied to online purchases of hotel bookings, this study analyzes the influence of three low price signals and the distribution channel on perceived value and behavioral intentions. Positive influences on perceived value and buying intention were found for price beating guarantee and always low price signals but the distribution channel was only found to have an effect on behavioral intentions. Also, it has been seen that gender plays a moderating role on both perceived value and buying intention. Finally, the most effective low price differ in function of the type of enterprise that is transmitting the information to the consumers: price beating guarantee is the best option for hotel website but always low price guarantee is better for electronic intermediaries.

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Search characteristics, online consumer ratings, and beer prices

Rousseau,

Joly,

Poelmans

2023

Agribusiness

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Experience and credence characteristics are hard to assess when consumers select food products. Therefore, consumers who are unfamiliar with specific products typically use search characteristics as a proxy for product quality. As search characteristics are pivotal in consumers' decisions, we expect them to be reflected in the resulting product prices in the beer market. Besides traditional search characteristics such as beer color or fermentation type, new search characteristics such as online consumer ratings are emerging in beer markets all over the world. Thus, we use a hedonic price estimation to learn about the relative importance of traditional versus new search characteristics in the Belgian beer market. Specifically, the beer prices for 1517 different beer products of two large beer retailers are investigated to compare the role of traditional beer characteristics—color, fermentation type, beer style, origin, brewery type, and alcohol percentage—with the role of online beer ratings from the platform RateBeer.com. We find that while traditional characteristics still play a key role in the beer market, the role of online ratings seems dependent on the retail context [EconLit Citations: C36 Instrumental Variables Estimation, D83 Search—Communication, Q11 Agriculture—Prices, Q18 Food Policy].

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The influence of internet customer reviews on the online sales and prices in hotel industry

Cited by 310 publications

References 30 publications

The influence of e-word-of-mouth on hotel occupancy rate

The influence of e-word-of-mouth on hotel occupancy rate

Do Low Price Signals Influence Online Purchases of Tourist Accommodation Services? The Moderating Role of Gender

Search characteristics, online consumer ratings, and beer prices

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