Wang & Chaudhry (2018)

Question 1

Study’s aim

Answer 1

Examine the externalities of managers’ responses (MRs) to online reviews on popular travel websites. Authors examine the effect of publicly responding to hotel guests’ reviews on subsequent reviewer ratings. Conducted a topic analysis on review texts and corresponding MRs to study the moderating role of response tailoring on the opinion externalities of MR

Question 2

Manager responses (MRs)

Answer 2

Directed at an individual reviewer, but its public nature leads to the possibility of creating an externality on the opinions of subsequent reviewers. This practice can change the trajectory of a firm’s online reputation. MRs could increase the potentital cost of writing a negative review, leading to more positive ratings

Question 3

Result

Answer 3

MRs to negative reviews can significantly influence subsequent opinions in a positive way if those responses are observable at the time of reviewing. MRs to positive reviews have a negative effect