Asymmetric effects of online consumer reviews

Sangwon Park and Juan Nicolau ()

Annals of Tourism Research, 2015, vol. 50, issue C, 67-83

Abstract: Consumers tend to seek heuristic information cues to simplify the amount of information involved in tourist decisions. Accordingly, star ratings in online reviews are a critical heuristic element of the perceived evaluation of online consumer information. The objective of this article is to assess the effect of review ratings on usefulness and enjoyment. The empirical application is carried out on a sample of 5,090 reviews of 45 restaurants in London and New York. The results show that people perceive extreme ratings (positive or negative) as more useful and enjoyable than moderate ratings, giving rise to a U-shaped line, with asymmetric effects: the size of the effect of online reviews depends on whether they are positive or negative.

Keywords: Online review; Asymmetrical effects; Heuristics; Count model (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (82)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:anture:v:50:y:2015:i:c:p:67-83

DOI: 10.1016/j.annals.2014.10.007

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