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The signaling effect of management response in engaging customers: A study of the hotel industry

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  • Li, Chunyu
  • Cui, Geng
  • Peng, Ling

Abstract

Hotels today actively respond to online reviews given their tremendous influence on travelers' decisions. Yet, the questions of how to respond to online reviews continue to baffle hotel managers. By focusing on prospective travelers, we propose the effective management response signals hotels' care for customers and quality of service. Particularly, we postulate the frequency, speed and length of response influence the effectiveness of signaling in reducing information asymmetry. Based on the large-scale field data from TripAdvisor, this study demonstrates that the frequency and speed of response significantly enhance travelers’ engagement as indicated by more reviews, higher average valence, more votes for helpfulness, and higher popularity ranking. Furthermore, the frequent and speedy response is more effective for budget (vs. premium) hotels. Thus, management response to online reviews serves as a critical channel of communication to engage customers.

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  • Li, Chunyu & Cui, Geng & Peng, Ling, 2017. "The signaling effect of management response in engaging customers: A study of the hotel industry," Tourism Management, Elsevier, vol. 62(C), pages 42-53.
    • Handle: RePEc:eee:touman:v:62:y:2017:i:c:p:42-53
    DOI: 10.1016/j.tourman.2017.03.009
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    Cited by:

    1. Wenlong Liu & Rongrong Ji & Chen (Peter) Nian & Kisang Ryu, 2020. "Identifying the Types and Impact of Service Provider’s Responses to Online Negative Reviews in the Sharing Economy: Evidence from B&Bs in China," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    2. Vo Nga Thi & Chovancová Miloslava & Tri Ho Thanh, 2019. "A major boost to the website performance of up-scale hotels in Vietnam," Management & Marketing, Sciendo, vol. 14(1), pages 14-30, March.
    3. Liu, Yong & Gan, Wen-xue & Zhang, Qi, 2021. "Decision-making mechanism of online retailer based on additional online comments of consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    4. Gao, Baojun & Li, Xiangge & Liu, Shan & Fang, Debin, 2018. "How power distance affects online hotel ratings: The positive moderating roles of hotel chain and reviewers’ travel experience," Tourism Management, Elsevier, vol. 65(C), pages 176-186.
    5. Zajadacz Alina & Minkwitz Aleksandra, 2020. "Using Social Media Data to Plan for Tourism," Quaestiones Geographicae, Sciendo, vol. 39(3), pages 125-138, September.
    6. Han, Xiaoyun & Chen, Shuping & Chen, Bing, 2022. "From employee engagement to customer engagement: A multilevel dual-path model of engagement spillover effects in service ecosystems," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    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. Rather, Raouf Ahmad & Raisinghani, Manju & Gligor, David & Parrey, Shakir Hussain & Russo, Ivan & Bozkurt, Sıddık, 2023. "Examining tourist citizenship behaviors through affective, cognitive, behavioral engagement and reputation: Symmetrical and asymmetrical approaches," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    9. Jin, Wangyan & Chen, Yuangao & Yang, Shuiqing & Zhou, Shasha & Jiang, Hui & Wei, June, 2023. "Personalized managerial response and negative inconsistent review helpfulness: The mediating effect of perceived response helpfulness," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    10. Jiang, Jingxian & Ellis, Gary D. & Ettekal, Andrea V. & Nelson, Chad, 2022. "Situational engagement experiences: Measurement options and theory testing," Journal of Business Research, Elsevier, vol. 150(C), pages 223-236.
    11. Yong Liu & Wen‐xue Gan & Wen‐wen Ren, 2021. "Influence mechanism of online consumer comments on e‐retailer," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1132-1145, July.
    12. Miyea Kim & Jeongsoo Han & Mina Jun, 2020. "Do same-level review ratings have the same level of review helpfulness? The role of information diagnosticity in online reviews," Information Technology & Tourism, Springer, vol. 22(4), pages 563-591, December.

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