How Electronic Word of Mouth Matters in Peer-to-Peer Accommodation: The Role of Price and Responsiveness

Fuzhen Liu, Kee hung Lai, Jiang Wu, Xin Luo

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

Under information asymmetry, electronic word of mouth (eWOM) is crucial to understanding customer experience in peer-to-peer (P2P) accommodation. However, the topics of what dimensions are included in eWOM and how these dimensions determine sales performance from a contingency perspective remain starkly underinvestigated. Drawing upon trust transfer theory and signaling theory, we identify two eWOM dimensions (i.e., listing-based eWOM and host-based eWOM) and examine their interactions with price and responsiveness on sales performance. Using objective data from Xiaozhu.com, a leading accommodation-sharing platform in China, we apply machine learning algorithms and economic analysis to illustrate customer behavior. Our results indicate that the valence of listing-based eWOM and that of host-based eWOM are positively associated with sales performance. Compared with listing-based eWOM, host-based eWOM exerts a more decisive influence on sales performance. Notably, the relationship between the valence of listing-based eWOM (host-based eWOM) and sales performance is weakened (strengthened) by listing price (host’s responsiveness). These findings provide helpful managerial insights for service strategies and policy actions to improve the accommodation-sharing economy.

Original languageEnglish
Pages (from-to)174-199
Number of pages26
JournalInternational Journal of Electronic Commerce
Volume26
Issue number2
DOIs
Publication statusPublished - 2022

Keywords

  • eWOM
  • online sales performance
  • P2P accommodation
  • peer-to-peer e-commerce
  • sharing economy
  • signaling theory
  • trust transfer

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics

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