Electronic word of mouth and hotel performance: A meta-analysis

This study synthesizes existing empirical results about the relationship between electronic word of mouth (eWOM) and hotel performance via meta-analysis. Based on estimates from 25 articles, the average eWOM valence-based elasticity is estimated to be 0.888, whereas the average volume-based elastici...

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Bibliographic Details
Published in:Tourism management (1982) 2018-08, Vol.67, p.248-260
Main Authors: Yang, Yang, Park, Sangwon, Hu, Xingbao
Format: Article
Language:English
Subjects:
eWOM effect
Hierarchical linear model (HLM)
Hotel performance
Meta-analysis
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Summary:This study synthesizes existing empirical results about the relationship between electronic word of mouth (eWOM) and hotel performance via meta-analysis. Based on estimates from 25 articles, the average eWOM valence-based elasticity is estimated to be 0.888, whereas the average volume-based elasticity is 0.055. A hierarchical linear model is applied to uncover five aspects that explain variations in eWOM elasticities: research setting, data structure, variable measurement, model specification, and research outlet. The estimation results highlight several significant aspects affecting elasticity, such as year of study, geographic setting, panel data structure, data frequency, performance measurement, control of price variable, and function form. Finally, implications are provided for researchers and hoteliers. •eWOM valence-based elasticity is twice as large as eWOM volume-based elasticity.•The elasticity is significantly lower in low-end hotels.•The elasticity is significantly lower in hotels in China.•The elasticity is significantly higher across reviews posted on TripAdvisor.•The elasticity is significantly lower when using panel data.
ISSN:0261-5177
1879-3193
DOI:10.1016/j.tourman.2018.01.015