Skip to main navigation Skip to search Skip to main content

How hotel star rating moderates online word-of-mouth effect: A difference-in-difference approach

  • School of Management, Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Online Word-of-mouth has become one of most important information sources when a consumer is making a purchase decision. Most researchers focus on the direct relationship between consumer reviews and sales performance rather than exploring their interaction with other factors. To bridge this gap, we conducted an empirical study in the hospitality field to investigate the impact of online consumer reviews on hotel sales and to identify any moderating effect of hotel star ratings. The data were collected from two major Chinese online travel agencies, Ctrip.com and Elong.com. Using a difference-in-difference approach with panel data, we found that consumer reviews had a significant impact on online sales, and that this effect was stronger for hotels with lower star rating. The findings will help hospitality researchers and practitioners better understand the impact of online word-of-mouth.

Original languageEnglish
Title of host publication2013 International Conference on Management Science and Engineering, ICMSE 2013 - 20th Annual Conference Proceedings
Pages3-8
Number of pages6
DOIs
StatePublished - 2013
Externally publishedYes
Event2013 20th International Conference on Management Science and Engineering, ICMSE 2013 - Harbin, China
Duration: 17 Jul 201319 Jul 2013

Publication series

NameInternational Conference on Management Science and Engineering - Annual Conference Proceedings
ISSN (Print)2155-1847

Conference

Conference2013 20th International Conference on Management Science and Engineering, ICMSE 2013
Country/TerritoryChina
CityHarbin
Period17/07/1319/07/13

Keywords

  • difference-in-difference approach
  • hotel star rating
  • online word-of-mouth
  • panel data

Fingerprint

Dive into the research topics of 'How hotel star rating moderates online word-of-mouth effect: A difference-in-difference approach'. Together they form a unique fingerprint.

Cite this