IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v227y2020ics0925527320300578.html
   My bibliography  Save this article

Utilizing the platform economy effect through EWOM: Does the platform matter?

Author

Listed:
  • Xu, Xun
  • Lee, Chieh

Abstract

Businesses use the platform economy and electronic word-of-mouth generated by online reviews to attract consumers. Based on the communication accommodation theory, we examine both the contents of online consumer reviews and managerial responses to analyze what consumers and managers write and the associated linguistic characteristics to determine how they write. We examine and compare online consumer reviews and managerial responses on social media platforms, third-party booking platforms, and direct-sales platforms in four dimensions. These include (a) linguistic characteristics, (b) content, (c) the interaction between consumers and managers, and (d) the mechanism of the reflection of online reviews in consumer satisfaction. We use a text mining approach, latent semantic analysis, and text regressions to analyze data from the hotel industry. The findings suggest that both the linguistic characteristics and content of the consumer reviews and managerial responses differ depending on the platform. However, the factors influencing consumer satisfaction are the same among the three platforms. Consumer reviews on social media platforms have greater subjectivity and length; reviews on direct platforms have higher polarity, diversity, and readability. Consumer reviews focus more on interpersonal and intangible attributes on social media, on economic attributes on third-party platforms, and on tangible attributes on direct platforms. Managers’ responses have similar linguistic styles in terms of subjectivity, polarity, and readability, but they use more words with greater diversity and focus more on operations and facility issues on direct platforms than on the other two platforms. We provide implications for managers to understand consumer reviews and write responses.

Suggested Citation

  • Xu, Xun & Lee, Chieh, 2020. "Utilizing the platform economy effect through EWOM: Does the platform matter?," International Journal of Production Economics, Elsevier, vol. 227(C).
    • Handle: RePEc:eee:proeco:v:227:y:2020:i:c:s0925527320300578
    DOI: 10.1016/j.ijpe.2020.107663
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527320300578
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2020.107663?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mellinas, Juan Pedro & Martínez María-Dolores, Soledad-María & Bernal García, Juan Jesús, 2015. "Booking.com: The unexpected scoring system," Tourism Management, Elsevier, vol. 49(C), pages 72-74.
    2. Chen, Yubo & Fay, Scott & Wang, Qi, 2011. "The Role of Marketing in Social Media: How Online Consumer Reviews Evolve," Journal of Interactive Marketing, Elsevier, vol. 25(2), pages 85-94.
    3. Tong, Tingting & Dai, Hongyan & Xiao, Qin & Yan, Nina, 2020. "Will dynamic pricing outperform? Theoretical analysis and empirical evidence from O2O on-demand food service market," International Journal of Production Economics, Elsevier, vol. 219(C), pages 375-385.
    4. Liu, Zhiwei & Park, Sangwon, 2015. "What makes a useful online review? Implication for travel product websites," Tourism Management, Elsevier, vol. 47(C), pages 140-151.
    5. Kaplan, Andreas M. & Haenlein, Michael, 2010. "Users of the world, unite! The challenges and opportunities of Social Media," Business Horizons, Elsevier, vol. 53(1), pages 59-68, January.
    6. Filieri, Raffaele & Alguezaui, Salma & McLeay, Fraser, 2015. "Why do travelers trust TripAdvisor? Antecedents of trust towards consumer-generated media and its influence on recommendation adoption and word of mouth," Tourism Management, Elsevier, vol. 51(C), pages 174-185.
    7. Tasadduq A. Shervani & Gary Frazier & Goutam Challagalla, 2007. "The moderating influence of firm market power on the transaction cost economics model: An empirical test in a forward channel integration context," Strategic Management Journal, Wiley Blackwell, vol. 28(6), pages 635-652, June.
    8. Mike Thelwall & Kevan Buckley & Georgios Paltoglou & Di Cai & Arvid Kappas, 2010. "Sentiment strength detection in short informal text," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 61(12), pages 2544-2558, December.
    9. Zhang, Hong-yu & Ji, Pu & Wang, Jian-qiang & Chen, Xiao-hong, 2017. "A novel decision support model for satisfactory restaurants utilizing social information: A case study of TripAdvisor.com," Tourism Management, Elsevier, vol. 59(C), pages 281-297.
    10. Xiang, Zheng & Du, Qianzhou & Ma, Yufeng & Fan, Weiguo, 2017. "A comparative analysis of major online review platforms: Implications for social media analytics in hospitality and tourism," Tourism Management, Elsevier, vol. 58(C), pages 51-65.
    11. Mike Thelwall & Kevan Buckley & Georgios Paltoglou & Di Cai & Arvid Kappas, 2010. "Sentiment strength detection in short informal text," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 61(12), pages 2544-2558, December.
    12. Fang, Bin & Ye, Qiang & Kucukusta, Deniz & Law, Rob, 2016. "Analysis of the perceived value of online tourism reviews: Influence of readability and reviewer characteristics," Tourism Management, Elsevier, vol. 52(C), pages 498-506.
    13. Martinez Caro, Laura & Martinez Garcia, Jose Antonio, 2007. "Cognitive-affective model of consumer satisfaction. An exploratory study within the framework of a sporting event," Journal of Business Research, Elsevier, vol. 60(2), pages 108-114, February.
    14. Xu, Xun, 2020. "Examining an asymmetric effect between online customer reviews emphasis and overall satisfaction determinants," Journal of Business Research, Elsevier, vol. 106(C), pages 196-210.
    15. Kim, Juran & Lee, Ki Hoon, 2019. "Influence of integration on interactivity in social media luxury brand communities," Journal of Business Research, Elsevier, vol. 99(C), pages 422-429.
    16. Li, Yiming & Li, Gang & Tayi, Giri Kumar & Cheng, T.C.E., 2019. "Omni-channel retailing: Do offline retailers benefit from online reviews?," International Journal of Production Economics, Elsevier, vol. 218(C), pages 43-61.
    17. Wei Chen & Bin Gu & Qiang Ye & Kevin Xiaoguo Zhu, 2019. "Measuring and Managing the Externality of Managerial Responses to Online Customer Reviews," Service Science, INFORMS, vol. 30(1), pages 81-96, March.
    18. Yang, Liu & Dong, Shaozeng, 2018. "Rebate strategy to stimulate online customer reviews," International Journal of Production Economics, Elsevier, vol. 204(C), pages 99-107.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schmidt, Christoph G. & Wuttke, David A. & Heese, H. Sebastian & Wagner, Stephan M., 2023. "Antecedents of public reactions to supply chain glitches," International Journal of Production Economics, Elsevier, vol. 259(C).
    2. Bin Shen & Ming Cheng & Renlong He & Minglei Yang, 2024. "Selling through social media influencers in influencer marketing: participation-based contract versus sales-based contract," Electronic Commerce Research, Springer, vol. 24(2), pages 1095-1118, June.
    3. Gandhi, Mohina & Kar, Arpan Kumar, 2022. "How do Fortune firms build a social presence on social media platforms? Insights from multi-modal analytics," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    4. Radosław Malik & Anna Visvizi & Małgorzata Skrzek-Lubasińska, 2021. "The Gig Economy: Current Issues, the Debate, and the New Avenues of Research," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    5. Tian, Yu-Xin & Zhang, Chuan, 2023. "An end-to-end deep learning model for solving data-driven newsvendor problem with accessibility to textual review data," International Journal of Production Economics, Elsevier, vol. 265(C).
    6. Tian, Xin & Song, Yan & Luo, Chunlin & Zhou, Xiaoyang & Lev, Benjamin, 2021. "Herding behavior in supplier innovation crowdfunding: Evidence from Kickstarter," International Journal of Production Economics, Elsevier, vol. 239(C).
    7. Liu, Hongfei & Jayawardhena, Chanaka & Osburg, Victoria-Sophie & Yoganathan, Vignesh & Cartwright, Severina, 2021. "Social sharing of consumption emotion in electronic word of mouth (eWOM): A cross-media perspective," Journal of Business Research, Elsevier, vol. 132(C), pages 208-220.
    8. Chen, Ruolan & Yuan, Ruizhi & Huang, Bo & Liu, Martin J., 2023. "Feeling warm or skeptical? An investigation into the effects of incentivized eWOM programs on customers’ eWOM sharing intentions," Journal of Business Research, Elsevier, vol. 167(C).
    9. Wang, Jianda & Dong, Kangyin & Wang, Kun, 2023. "Towards green recovery: Platform economy and its impact on carbon emissions in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 969-987.
    10. Singh, Amit & Jenamani, Mamata & Thakkar, Jitesh J. & Rana, Nripendra P., 2021. "Propagation of online consumer perceived negativity: Quantifying the effect of supply chain underperformance on passenger car sales," Journal of Business Research, Elsevier, vol. 132(C), pages 102-114.
    11. Chunyu Li & Peng Xing & Yanting Li, 2022. "Sustainable Strategy Analysis: Platform Channel Configuration and Slotting Fee Design under Differentiated Quality Investment," Sustainability, MDPI, vol. 14(23), pages 1-28, December.
    12. Kumar, Jitender & Katiyar, Gagan & Mehrotra, Ankit & Attri, Rekha & Vishnoi, Sushant Kumar, 2024. "Connecting BOP consumers and retailers: What drives small-time retailing through social media?," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zajadacz Alina & Minkwitz Aleksandra, 2020. "Using Social Media Data to Plan for Tourism," Quaestiones Geographicae, Sciendo, vol. 39(3), pages 125-138, September.
    2. Xiang, Zheng & Du, Qianzhou & Ma, Yufeng & Fan, Weiguo, 2017. "A comparative analysis of major online review platforms: Implications for social media analytics in hospitality and tourism," Tourism Management, Elsevier, vol. 58(C), pages 51-65.
    3. Ma, Jie & Tse, Ying Kei & Wang, Xiaojun & Zhang, Minhao, 2019. "Examining customer perception and behaviour through social media research – An empirical study of the United Airlines overbooking crisis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 192-205.
    4. Sunyoung Hlee & Hanna Lee & Chulmo Koo, 2018. "Hospitality and Tourism Online Review Research: A Systematic Analysis and Heuristic-Systematic Model," Sustainability, MDPI, vol. 10(4), pages 1-27, April.
    5. Yani Wang & Jun Wang & Tang Yao, 2019. "What makes a helpful online review? A meta-analysis of review characteristics," Electronic Commerce Research, Springer, vol. 19(2), pages 257-284, June.
    6. Caiwei Ma & Norman Au & Lianping Ren, 2020. "Biased minds experience improved decision-making speed and confidence on social media: a heuristic approach," Information Technology & Tourism, Springer, vol. 22(4), pages 593-624, December.
    7. Chuanming Sun & Xingyu Chai & Qing Fan & Wenyuan Zhang, 2023. "The Impact of Hygiene Factors on Online Hotel Consumption in China during the COVID-19 Pandemic," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    8. Raffaele Filieri & Elisabetta Raguseo & Claudio Vitari, 2018. "When are extreme ratings more helpful? Empirical evidence on the moderating effects of review characteristics and product type," Post-Print halshs-01923243, HAL.
    9. Caiwei Ma & Norman Au & Lianping Ren, 0. "Biased minds experience improved decision-making speed and confidence on social media: a heuristic approach," Information Technology & Tourism, Springer, vol. 0, pages 1-32.
    10. Pantano, Eleonora & Priporas, Constantinos-Vasilios & Stylos, Nikolaos, 2017. "‘You will like it!’ using open data to predict tourists' response to a tourist attraction," Tourism Management, Elsevier, vol. 60(C), pages 430-438.
    11. Raffaele Filieri & Elisabetta Raguseo & Claudio Vitari, 2018. "When are extreme ratings more helpful? Empirical evidence on the moderating effects of review characteristics and product type," Grenoble Ecole de Management (Post-Print) halshs-01923243, HAL.
    12. Ruwan Jayathilaka & Thanuja Dharmasena & Nizamuddin Rezahi & Sukheetha Haththotuwegama, 2020. "The impact of online reviews on inbound travellers’ decision making," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(3), pages 1005-1021, June.
    13. Mohammadreza Mousavizadeh & Mehrdad Koohikamali & Mohammad Salehan & Dam J. Kim, 2022. "An Investigation of Peripheral and Central Cues of Online Customer Review Voting and Helpfulness through the Lens of Elaboration Likelihood Model," Information Systems Frontiers, Springer, vol. 24(1), pages 211-231, February.
    14. Yucheng Zhang & Zhiling Wang & Lin Xiao & Lijun Wang & Pei Huang, 2023. "Discovering the evolution of online reviews: A bibliometric review," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-22, December.
    15. Wu, Laurie & Shen, Han & Fan, Alei & Mattila, Anna S., 2017. "The impact of language style on consumers′ reactions to online reviews," Tourism Management, Elsevier, vol. 59(C), pages 590-596.
    16. 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.
    17. Book, Laura A. & Tanford, Sarah & Chang, Wen, 2018. "Customer reviews are not always informative: The impact of effortful versus heuristic processing," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 272-280.
    18. Perez-Vega, Rodrigo & Hopkinson, Paul & Singhal, Aishwarya & Mariani, Marcello M., 2022. "From CRM to social CRM: A bibliometric review and research agenda for consumer research," Journal of Business Research, Elsevier, vol. 151(C), pages 1-16.
    19. Carmela Iorio & Giuseppe Pandolfo & Antonio D’Ambrosio & Roberta Siciliano, 2020. "Mining big data in tourism," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(5), pages 1655-1669, December.
    20. Tajvidi, Mina & Richard, Marie-Odile & Wang, YiChuan & Hajli, Nick, 2020. "Brand co-creation through social commerce information sharing: The role of social media," Journal of Business Research, Elsevier, vol. 121(C), pages 476-486.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:227:y:2020:i:c:s0925527320300578. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.