The effect of online review and management response strategies on observer customer perceptions and purchase intentions in the hospitality industry
Abstract
Online reviews are paramount in shaping consumer decisions within the hospitality industry. This study uniquely investigates the interplay between review types and management responses, focusing on how these interactions influence observer customers' trust, perceived risk, and booking intentions. Employing a 2 (vindictive vs. constructive review) × 2 (accommodative vs. defensive response) between-subjects experimental design, we examined these critical observer perceptions. The key findings reveal that vindictive reviews consistently heighten perceived risk and diminish trust and purchase intentions. Conversely, accommodative management responses significantly reduce perceived risk and boost trust and purchase intentions. Crucially, the study highlights a strong interaction effect: accommodative responses are most vital in mitigating the severe negative impact of vindictive reviews, while defensive responses prove particularly detrimental in such scenarios. We also identify a "scar effect," where perceived risk lingers for vindictive reviews even after an accommodative response. Theoretically, this research advances understanding of fairness, risk perception, attribution, and social learning in online service recovery from a third-party perspective. Practically, the findings strongly urge hospitality managers to prioritize empathetic, accommodative responses, especially when addressing highly negative reviews, and to avoid defensive strategies. We also recommend proactive measures to address the lasting impact of severe negative feedback on potential guests' perceptions.
Keywords
Online Reviews
,
Management Response
,
Observer Cumstomers