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Purpose Repeat customers play an important role in the restaurant sector. Previous studies have confirmed the positive effect of managerial responses on customer relationship management. However, the practice of managerial response strategies toward repeat customers in the restaurant sector remains unclear. This study aims to explore how social influence and the revisit intention of customers affect the responding behavior of restaurant managers. Design/methodology/approach This study collects information of 251,944 customer reviews and managerial responses from 1,272 restaurants on Yelp (a leading restaurant review website around the world) and builds four econometric models (with restaurant and month fixed effects) to test the hypotheses empirically. Findings The empirical results show that restaurant managers are less likely to respond to reviews posted by repeat customers (10% lower than that of new customers). This effect is moderated by customer social influence, which entails that repeat customers with great social influence are more likely to receive managerial responses. Moreover, reviews from repeat customers who have had a longer time since their last consumption are also more likely to receive managerial responses. Practical implications The results present implications for restaurant managers in business practice regarding managerial response. Managers should take advantage of platform designs and tools (i.e. customer relationship management programs to keep track of repeat customers) to locate repeat customers and avoid the potential negative effects caused by their selected response strategies. Originality/value To the best of the authors’ knowledge, this study is among the first attempts to examine empirically how restaurant managers respond to reviews generated by repeat customers in real business practice and reveals what drives such activities from the perspectives of social influence and revisit intention.

Repeat customers are crucial for business success. Previous studies have mainly focused on those factors that affect repeat patronage but ignored how repeat customers reevaluate the same service provider after consumption. We obtained a dataset containing 637,748 reviews of restaurants in New York City and used a generalized difference-in-differences design to further explore the rating behavior of local repeat customers. The results of this study contribute to theories of customer satisfaction, repeat patronage, and customer location in the context of user-generated content as repeat customers are found to be sensitive to quality variations. Such sensitivity is even accentuated by local customers. Relevant practical implications for restaurant managers are also drawn from the results.

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