Measuring the value of managerial responses to online reviews - A natural experiment of two online travel agencies

Qiang Ye, Bin Gu, Wei Chen, Chun Hung Roberts Law

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

23 Citations (Scopus)

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 languageEnglish
Title of host publicationICIS 2008 Proceedings - Twenty Ninth International Conference on Information Systems
Publication statusPublished - 1 Dec 2008
Event29th International Conference on Information Systems, ICIS 2008 - Paris, France
Duration: 14 Dec 200817 Dec 2008

Conference

Conference29th International Conference on Information Systems, ICIS 2008
CountryFrance
CityParis
Period14/12/0817/12/08

Keywords

  • Managerial responses
  • Natural experiment
  • Online reviews
  • Travel industry

ASJC Scopus subject areas

  • Information Systems

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