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The impact of word of mouth when booking a hotel: could a good friend’s opinion outweigh the online majority?

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  • Martin Gellerstedt

    (University West, School of Business, Economics and IT)

  • T. Arvemo

    (University West, School of Business, Economics and IT)

Abstract

Online user generated reviews are transforming business and customer behavior and could have a major impact on sales. The primary aim of this study was to measure the impact of online reviews in comparison with the impact of a good friend’s opinion. The question in focus was: to what extent could a single review made by a good friend compensate the opinion of the online majority? Subjects were randomly allocated to different versions of guest reviews of a fictive hotel: either constituting a positive or a negative online majority. After reading the reviews, respondents were asked about their booking intention. The respondents were also asked to re-evaluate booking intention given the additional information that a good friend has given a recommendation or an advice against booking the hotel. The study design was experimental and based on a survey which included 1319 respondents who were randomized to the different versions of guest reviews. The results showed that the overall valence of reviews is crucial for booking intention, also the latest two reviews were important even though the effect was much smaller. If the overall valence was negative the latest two reviews had no importance, no matter if these were positive or negative. But, if the overall valence was positive, then the booking intention could be diluted if the two latest reviews were negative. Concerning the primary aim of the study, it is concluded that a good friend’s word of mouth could outweigh the online majority. This means that a negative online majority could be outweigh by a good friend’s recommendation and that a positive online majority could be outweigh by a goods friend’s recommendation against booking the hotel.

Suggested Citation

  • Martin Gellerstedt & T. Arvemo, 2019. "The impact of word of mouth when booking a hotel: could a good friend’s opinion outweigh the online majority?," Information Technology & Tourism, Springer, vol. 21(3), pages 289-311, September.
    • Handle: RePEc:spr:infott:v:21:y:2019:i:3:d:10.1007_s40558-019-00143-4
    DOI: 10.1007/s40558-019-00143-4
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    References listed on IDEAS

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    Cited by:

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    2. Inmaculada Rabadán-Martín & Francisco Aguado-Correa & Nuria Padilla-Garrido, 2020. "Online reputation of 4- and 5-star hotels," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 26(1), pages 157-172, June.
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    4. Weizhao Huang & Jingna Wang & Jinbo Jiang & Jinwen Tang, 2021. "The role of procedural, financial and relational switching costs in the Chinese online hotel booking market: antecedents and consequences," Information Technology & Tourism, Springer, vol. 23(3), pages 439-470, September.
    5. Inmaculada Rabadán-Martín & Francisco Aguado-Correa & Nuria Padilla-Garrido, 2019. "Facing new challenges in rural tourism: signaling quality via website," Information Technology & Tourism, Springer, vol. 21(4), pages 559-576, December.

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