Abstract
This study assesses the influence of managerial responses to online customer reviews on product sales. We leverage a natural experiment provided by two online travel agencies. Both agents allow customers to post reviews on hotels, but only one of the travel agents allows hotel management to post managerial responses. Using a difference-in-difference approach, we find that managerial responses have a significant impact on hotel bookings. A hotel that provides managerial responses receives 60% more online bookings than an equivalent hotel without managerial responses. Our result highlights the importance of managing and responding to online customer reviews.
| Original language | English |
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| Title of host publication | ICIS 2008 Proceedings - Twenty Ninth International Conference on Information Systems |
| Publication status | Published - 1 Dec 2008 |
| Event | 29th International Conference on Information Systems, ICIS 2008 - Paris, France Duration: 14 Dec 2008 → 17 Dec 2008 |
Conference
| Conference | 29th International Conference on Information Systems, ICIS 2008 |
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| Country/Territory | France |
| City | Paris |
| Period | 14/12/08 → 17/12/08 |
Keywords
- Managerial responses
- Natural experiment
- Online reviews
- Travel industry
ASJC Scopus subject areas
- Information Systems