Understanding the Impact of Negative and Positive Traveler Reviews

Abstract

This research utilizes theories of social influence and price anchoring to provide insights into the psychological processes underlying travel purchases in the presence of online reviews. Two experiments were conducted in which subjects chose between two resorts for a Las Vegas vacation in a 2 × 3 experimental design that manipulated social influence (unanimous, non-unanimous reviews) and price (10%, 30%, and 50% higher or lower). Social influence was in the form of negative (experiment 1) or positive (experiment 2) traveler reviews. Perceptions of quality and value as well as discount to purchase/willingness to pay were measured. Results indicate that no amount of price reduction was sufficient to offset the impact of unanimously negative reviews, although an extreme price reduction influenced decisions when negative reviews were not unanimous. Price anchoring occurred for positive reviews, such that a higher reference price increased willingness to pay.

The effect of availability heuristics in online consumer reviews

“…Applying social impact theory, an opposing viewpoint reduces the impact of a majority source (Latané & Wolf, ). This finding is consistent with research showing that lack of unanimity significantly reduces the impact of the prevailing review valence (Book et al, , ).…”

“…The number of sources reflects the number of people in a supporting group and an opposing group (Latané & Wolf, ), which can be applied to the mix of positive and negative reviews. Research indicates that the impact of reviews is significantly reduced when the reviews are not unanimously positive or negative (Book et al, , ). The unanimity principle was found to influence the use of the anchoring heuristic, such that price anchoring only occurred when review valence was unanimously positive (Book et al, ).…”

“…Research indicates that the impact of reviews is significantly reduced when the reviews are not unanimously positive or negative (Book et al, , ). The unanimity principle was found to influence the use of the anchoring heuristic, such that price anchoring only occurred when review valence was unanimously positive (Book et al, ). The current research focuses on the availability heuristic and the strength component of social impact theory.…”

“…Both of these conditions apply when researching a new restaurant online. However, the negativity effect demonstrates that negative reviews overpower other cues including price (Book et al, ). Therefore, pictures are expected to influence decisions when accompanying a positive but not a negative review.Hypothesis A picture accompanying a positive review will increase (a) menu item evaluation, (b) likelihood to choose, and (c) item choice, compared with no picture.Hypothesis A picture accompanying a negative review will not influence (a) menu item evaluation, (b) likelihood to choose, or (c) item choice.…”

Thrilled to Have “Bagged a Bargain” or “Bitter” and “Very Frustrating”? Exploring Consumer Attitudes to Value and Deals in Tourism

“…An increase in 'noise' and 'clutter' in the media environment have led to an emphasis by tourism marketers on alternative methods to influence purchase decisions. One example is the attempt to understand the influence of customer reviews on both price anchoring and willingness to pay (Book, Tanford, and Chen 2016).…”