scholarly journals The Influence of Online Non-monetary Service Recovery on Firm Performance: Based on Online Reviews

2018 ◽  
Keyword(s):  
Firm Performance ◽  
Service Recovery ◽  
Online Reviews

An Analysis of One-Star Online Reviews and Responses in the Washington, D.C., Lodging Market

2012 ◽  
Vol 54 (1) ◽  
pp. 49-63 ◽  
Author(s):  
Stuart E. Levy ◽  
Wenjing Duan ◽  
Soyoung Boo
Keyword(s):  
Social Media ◽  
Market Research ◽  
Service Recovery ◽  
Hotel Industry ◽  
Geographic Location ◽  
Online Reviews ◽  
Online Review ◽  
Front Desk

The hotel industry continues to develop strategies for addressing consumer-generated online reviews, and particularly responding to poor reviews, which can have a damaging effect on a hotel’s reputation. To gain a greater understanding of the dynamics of poor reviews, this study analyzed 1,946 one-star reviews from ten popular online review websites, as well as 225 management responses from eighty-six Washington, D.C., hotels. A comprehensive complaint framework found that the most common complaints related to front desk staff, bathroom issues, room cleanliness, and guestroom noise issues. Complaints were also analyzed by hotel characteristics, including chain-scale segments, and reviewer characteristics, including purpose of travel and geographic location. Examining the reviews, highly rated hotels often respond to online complaints with appreciation, apologies, and explanations for what had gone wrong. Compensation adjustments are rarely mentioned by any hotel. The increasingly prominent role of social media necessitates that hotels use online reviews for market research and service recovery opportunities, regardless of whether they respond publicly.

Achieving service recovery through responding to negative online reviews

2017 ◽  
Vol 11 (1) ◽  
pp. 31-50 ◽  
Author(s):  
Victor Ho
Keyword(s):  
21St Century ◽  
Service Industry ◽  
Service Recovery ◽  
Online Reviews ◽  
Hotel Management ◽  
Research Attention ◽  
Considerable Research ◽  
Leisure Travelers ◽  
Hotel Accommodation

The beginning of the 21st century witnesses a trend for business and leisure travelers to make accommodation decisions by referring to online reviews of hotel accommodation services and the hotel management’s responses to such reviews. The responses, termed review response genre in this study, have since attracted considerable research attention. The purpose of this article is twofold. First, it aims to identify the moves present in the review response genre; second, it aims to explore how the hotel management attempts to achieve service recovery with the moves of the genre. A total of three obligatory moves are identified: Acknowledging Problem, Expressing Feeling and Thanking Reviewer. The findings will have significant implications for the hospitality and wider service industry practitioners responsible for handling negative online reviews.

scholarly journals The Employee Is Always Right: Employee Satisfaction and Corporate Performance in Brazil

2019 ◽  
Vol 23 (6) ◽  
pp. 739-764 ◽  
Author(s):  
Alexandre Di Miceli da Silveira
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Employee Satisfaction ◽  
Corporate Performance ◽  
Poor Performance ◽  
Well Being ◽  
Online Reviews ◽  
Superior Performance ◽  
Four Dimensions ◽  
Intrinsic Motivators

Abstract I investigate the effect of employee satisfaction on corporate performance based on an extensive dataset of 114,004 online reviews of Brazil’s 1,000 largest listed and unlisted firms from 2013 to 2018 posted at a local subsidiary of Glassdoor. I find that overall employee satisfaction is positively associated with firm performance and that this relationship is likely to be economically relevant. Among the four dimensions of employee well-being, the link with performance is most evident for the dimension on culture, followed by career opportunities. On the other hand, the dimension on compensation and benefits was the least connected with firm performance. Taken together, these results support the view that intrinsic motivators are more relevant for superior performance than extrinsic ones popularized by the carrot and stick approach to management. I also find that the influence of employee satisfaction on performance is likely to be asymmetrical, in the sense that workplaces characterized by low satisfaction among workers are more likely to lead to poor performance than best-in-class companies are likely to produce superior performance. To my knowledge, this is the first paper to document an asymmetrical link between firm value and employee satisfaction, as well the first one to investigate this issue in an emerging economy using online reviews.

scholarly journals A Text Analytics-Based Importance Performance Analysis and Its Application to Airline Service

2019 ◽  
Vol 11 (21) ◽  
pp. 6153 ◽  
Author(s):  
Seungju Nam ◽  
Hyun Cheol Lee
Keyword(s):  
Firm Performance ◽  
Performance Analysis ◽  
Latent Dirichlet Allocation ◽  
Online Reviews ◽  
Text Analytics ◽  
Service Experience ◽  
Customer Perceptions ◽  
Statistical Correlations ◽  
Air Transport Industry ◽  
Service Experiences

We introduce a new importance-performance analysis (IPA) methodology while making use of direct service experience perceptions represented by online reviews with numerical ratings. The proposed IPA, which we call the text analytics-based IPA (TAIPA), allows the real-time calculation of importance using the probability distribution of word frequency via the latent Dirichlet allocation (LDA) application to online reviews, and of performance using numerical rating values. The importance is also adjusted with the help of a sentiment analysis of online reviews to provide more precise measurements for service experience perceptions. To ensure an evaluation of the entire service process, we employ service encounters, in which service experiences occur and thus most customer perceptions are created, as a set of attributes composed of LDA topics that contain direct perceptions of service experiences. We investigate statistical correlations between TAIPA calculations and typical benchmarks of firm performance in the air-transport industry to verify how effective the proposed TAIPA is with respect to the degree that customer satisfaction is represented. As a primary result, TAIPA is more effective than comparison targets in that it shows stronger correlations with firm performance. TAIPA is specialized in determining which service step (i.e., a one-to-one relationship with a service encounter) needs to be improved. Moreover, TAIPA is flexible in considering multiple competitors.

How to prevent negative online customer reviews: the moderating roles of monetary compensation and psychological compensation

2020 ◽  
Vol 32 (10) ◽  
pp. 3115-3134 ◽  
Author(s):  
Jun Liu ◽  
HengJin Zhang ◽  
JingJing Sun ◽  
NingXin Li ◽  
Anil Bilgihan
Keyword(s):  
Service Recovery ◽  
Online Reviews ◽  
Content Type ◽  
Customer Reviews ◽  
Monetary Compensation ◽  
Beverage Industry ◽  
Online Customer Reviews ◽  
Recovery Strategies ◽  
Food And Beverage ◽  
Online Rating

Purpose This paper aims to clarify the effects of motivations on negative online customer reviews (OCRs) behavior in an integrative framework and to identify the moderating role of monetary compensation and psychological compensation in the Chinese food and beverage industry. Design/methodology/approach Data were collected from 377 consumers who posted a negative review online. Hierarchical regression analyses were used to test the research hypotheses. Findings The authors identified some characteristics of the consumers who posted negative online reviews in the Chinese food and beverage industry and found evidence that reveals the positive effects of emotional venting motivation and altruism motivation on posting negative customer online reviews. Economic motivation and self-enhancement motivation were not significantly connected to negative OCRs behaviors. Service recovery strategies can moderate the relationship between certain motivations and behaviors. The absence of psychological compensation will aggravate the influence of emotion venting motivation on consumers’ negative online reviews, while monetary compensation can restrain the influence of altruism motivation on negative online rating behavior. Research limitations/implications This paper did not explore the effect of the fairness and timeliness of service recovery on negative OCRs behavior. This paper did not consider the different restaurant types and customers' characteristics, and future research can test similar models with different and more diverse samples. Practical implications When implementing service recovery strategies, it is important to consider the psychological component of recovery. The absence of psychological compensation aggravates the influence of high levels of emotion venting motivation on consumers’ negative OCRs, leading to a lower rating, more word comments and negative photos. High levels of monetary compensation can restrain the influence of altruism motivation on negative online rating behavior. Originality/value The current paper contributes to the hospitality management literature by investigating the motivations behind consumer decisions to post negative OCRs in a food and beverage context. In addition, the moderating effect that service recovery strategies have on this relationship was also explored in depth.

How E-WOM motivations vary by hotel review website

2018 ◽  
Vol 30 (8) ◽  
pp. 2730-2751 ◽  
Author(s):  
Amanda Mapel Belarmino ◽  
Yoon Koh
Keyword(s):  
Service Recovery ◽  
Online Reviews ◽  
Moderating Effect ◽  
Third Party ◽  
Travel Agency ◽  
Content Type ◽  
The Us ◽  
Online Travel ◽  
Online Travel Agency ◽  
The Relationship

Purpose Based on equity theory, this paper investigates if guests write on different review websites because of different internal motivations. Furthermore, it examines the moderating effect of service’ exceeds, neutral, negative, and service recovery–on the relationship between motivations and type of website to write reviews. Design/methodology/approach To exam if the star ratings of the same hotels were significantly different across hotel, online travel agency, and third-party review websites, this study collected 12,000 star ratings from 40 hotels across the US and conducted t-tests. A survey of 1,600 US travelers was administered to uncover the motivations for writing on different websites/website combinations. Four different scenarios were used to test the moderating effect of service: exceeds, neutral, negative, and service-recovery. These responses were analyzed using backwards stepwise regression. Findings Star ratings for the same hotel do differ among the three websites; hotel is the highest and third-party is the lowest. There are seven distinct groups of guests. Guests are motivated to write reviews to balance inequitable relationships. They decide which website/website combination best improves the equity relationship. This research indicates that guests’ choice of website is based on different internal motivations. The moderating effect of the service experience was significant. Originality/value This paper contributes to the literature by examining different motivations to write online reviews by website. Prior research typically examined one website or aggregated results from multiple websites, ignoring website specific differences. This can help hoteliers to understand why initiatives to promote reviews on certain websites may be unsuccessful.

Managers’ Responses to Online Reviews for Improving Firm Performance: A Text Analytics Approach

2021 ◽  
Vol 49 (1) ◽  
pp. 699-728
Author(s):  
Tianjie Deng ◽  
◽  
Young-Jin Lee ◽  
Karen Xie ◽  
◽  
...  
Keyword(s):  
Firm Performance ◽  
Online Reviews ◽  
Text Analytics

Does service failure criticality affect global travellers' service evaluations? An empirical analysis of online reviews

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rishi Dwesar ◽  
Debajani Sahoo
Keyword(s):  
Airline Industry ◽  
Service Failure ◽  
Service Recovery ◽  
Large Data ◽  
Online Reviews ◽  
Emotional States ◽  
Data Set ◽  
Content Type ◽  
Service Failures ◽  
Large Data Set

PurposeIncreased global air travel and competition in the airline industry entail better service delivery and failure management. This study examines how airline type, failure criticality and the traveller's culture influence travellers' airline evaluations of service failure.Design/methodology/approachThe study uses a large data set of customers' online reviews and incorporates quantitative and qualitative feedback from 20 major airlines across the world. Semantic tagging, sentiment and multivariate analyses have been used to analyse the data.FindingsFailure criticality and travellers' cultural backgrounds significantly affect airline evaluations after service failures. Moreover, failure criticality influences evaluations of travellers from individualistic cultures more severely. Contrary to expectations, full-service airlines were evaluated positively after less critical service failures.Practical implicationsThe findings support that customers undergo different emotional states when they experience service failure. Understanding these internal emotional sensitivities and how services would be judged by travellers across cultures can help airlines to better manage their service recovery efforts and to strategise prioritisation of scarce resources.Originality/valueThough airline service failure has been well researched, this study examines the role of culture in service failure evaluations. The study uses a novel method to analyse a large data set of both quantitative and qualitative traveller feedback useful in service recovery management.

scholarly journals “If only…”: customer counterfactual thinking in failed recovery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hai-Anh Tran ◽  
Yuliya Strizhakova ◽  
Hongfei Liu ◽  
Ismail Golgeci
Keyword(s):  
Item Response ◽  
Design Methodology ◽  
Service Recovery ◽  
Experimental Studies ◽  
Recovery Process ◽  
Counterfactual Thinking ◽  
Online Reviews ◽  
Mediating Effects ◽  
Content Type ◽  
Practical Implications

Purpose This paper aims to examine counterfactual thinking as a key mediator of the effects of failed recovery (vs. failed delivery) on negative electronic word-of-mouth (eWOM). The authors further investigate the effectiveness of using recovery co-creation in minimizing customers’ counterfactual thinking. Design/methodology/approach This research includes textual analysis of online reviews (Study 1) and three scenario-based experiments (Studies 2, 3a and 3b). In addition to using item-response scales, the authors analyze negative online reviews and participants’ open-ended responses to capture their counterfactual thinking. Findings Failed recovery (vs failed delivery) increases counterfactual thinking, which, in turn, increases negative eWOM. These mediating effects of counterfactual thinking are consistent across textual analyses and experimental studies, as well as across different measures of counterfactual thinking. Counterfactual thinking also impacts customer anger in experiments; however, anger alone does not explain the effects of failed recovery on negative eWOM. Counterfactual thinking can be minimized by co-created recovery, especially when it is used proactively. Practical implications The findings demonstrate the detrimental effects of counterfactual thinking and offer managerial insights into co-creation as a strategy to minimize customers’ counterfactual thinking. The authors also highlight the importance and ways of tracking counterfactual thinking in digital outlets. Originality/value The authors contribute to counterfactual thinking and service recovery research by demonstrating the effects of failed recovery on counterfactual thinking that, in turn, impacts negative eWOM and offering a novel way to measure its expression in online narratives. The authors provide guidance on how to use co-creation in the service recovery process to minimize counterfactual thinking.

scholarly journals A “Triple A” Typology of Responding to Negative Consumer-Generated Online Reviews

2014 ◽  
Vol 41 (6) ◽  
pp. 719-745 ◽  
Author(s):  
Beverley A. Sparks ◽  
Graham L. Bradley
Keyword(s):  
Word Of Mouth ◽  
Service Recovery ◽  
Online Reviews ◽  
Electronic Word Of Mouth ◽  
Tourism And Hospitality ◽  
Hotel Accommodation ◽  
Do So

Increasingly, consumers are posting online reviews about hotels, restaurants, and other tourism and hospitality providers. While some managers are responding to these reviews, little is known about how to respond and how to do so effectively. Drawing on the service recovery, justice, and electronic word-of-mouth literatures, we developed a typology of management responses to negative online reviews of hotel accommodation. An initial version of the typology was verified through interviews with eight industry experts. The final “Triple A” typology comprised 19 specific forms of managerial responses subsumed within the three higher-level categories of acknowledgements, accounts, and actions. The typology was tested on a sample of 150 conversations drawn from the website, TripAdvisor. Most responses included an acknowledgement of the dissatisfying event, an account (explanation) for its occurrence, and a reference to action taken. Responses differed between top- and bottom-ranked hotels. Propositions for extending this area of research are provided.

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