Let’s talk about this in public : consumer expectations for online review response

Abstract

Online consumer reviews are becoming one of the key drivers of hospitality firm performance. Although research has investigated different aspects of online reviews such as their volume and length, issues regarding the effectiveness of review response demand for further investigation. Drawing on theories of expectancy value and communication, we develop and test a framework of consumer expectations regarding company responses. Results from two experiments show that consumer preferences for responses to their online reviews depend on the factors of valence (positive vs. negative), explanation type (explained action vs. explained reaction), and response channel (private vs. public). Perceived usefulness is found to be the underlying mechanism that explains these effects. The study’s theoretical contributions and managerial implications are discussed.