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Effects of managerial response on consumer eWOM and hotel performance: Evidence from TripAdvisor

Karen L. Xie (Fritz Knoebel School of Hospitality Management, University of Denver, Denver, Colorado, USA)
Zili Zhang (School of Management, Harbin Institute of Technology, Harbin, China)
Ziqiong Zhang (School of Management, Harbin Institute of Technology, Harbin, China)
Amrik Singh (Fritz Knoebel School of Hospitality Management, University of Denver, Denver, Colorado, USA)
Seul Ki Lee (College of Hospitality and Tourism Management, Sejong University, Seoul, Republic of Korea)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 12 September 2016

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Abstract

Purpose

This study aims to measures the effects of managerial response on consumer electronic word-of-mouth (eWOM) and hotel performance.

Design/methodology/approach

A 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.

Findings

This 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 implications

This study offers a practical model that enables hotel managers to orchestrate social media marketing approaches and efforts toward an optimal social media strategy.

Originality/value

This 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.

Keywords

Acknowledgements

This work is supported by the 2015 Internationalization Grant, University of Denver Office of Internationalization and the 2015 Summer Research Grant, University of Denver Daniels College of Business. The authors also acknowledge the support of research funds from the National Natural Science Foundation of China (71671049, 91024028, 71322202 and 71490722).

Citation

Xie, K.L., Zhang, Z., Zhang, Z., Singh, A. and Lee, S.K. (2016), "Effects of managerial response on consumer eWOM and hotel performance: Evidence from TripAdvisor", International Journal of Contemporary Hospitality Management, Vol. 28 No. 9, pp. 2013-2034. https://doi.org/10.1108/IJCHM-06-2015-0290

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited