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

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  • 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
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    5. 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).
    6. 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.
    7. 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).
    8. 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.
    9. 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).
    10. 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).
    11. 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.

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