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Competition and restaurant online review manipulations: A dynamic panel data analysis

  • Hengyun Li
  • , Haipeng Ji
  • , Jian Ming Luo
  • , Ziqiong Zhang*
  • *Corresponding author for this work
  • Hong Kong Polytechnic University
  • Macau University of Science and Technology
  • School of Management, Harbin Institute of Technology

Research output: Contribution to journalArticlepeer-review

Abstract

It is important to understand business online review manipulations, through which consumers can make better choice and platforms’ reputations can be maintained. Based on monthly panel data of 970 restaurants across 14 years in a metropolitan city in the US, this study investigates the impact of competition on both restaurant positive and negative online review manipulations. This study constructed a new competition index reflecting competitors’ quantity, quality, and negative influence of distance on the intensity of competition using the Gaussian kernel function, and the empirical results show: (1) both positive and negative review manipulations are positively influenced by competition; (2) the influence of the same cuisine competitors on the focal restaurant's review manipulations are stronger than their counterpart competitors; and (3) the competition's influence on positive review manipulation is stronger for high-priced than low-priced restaurants, but no difference exists regarding restaurant review demotion received. This study enriches the online review manipulation literature.

Original languageEnglish
Article number103605
JournalInternational Journal of Hospitality Management
Volume115
DOIs
StatePublished - Oct 2023
Externally publishedYes

Keywords

  • Competition
  • Demotion
  • Restaurant
  • Review manipulation
  • Self-promotion

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