[NRG] Notification: NRG Meeting: Online reputation management: Estimating the... @ Mon Nov 17, 2014 11am - 12pm (NRG Calendar)

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Title: NRG Meeting: Online reputation management: Estimating the impact of  
management responses on hotel reviews (Davide Proserpio)
Online reputation management: Estimating the impact of management responses  
on consumer reviews.

Failure to meet a consumer's expectations can result in a negative review,  
can have a lasting, damaging impact on a firm's reputation, and its ability  
to attract
new customers. To mitigate the reputational harm of negative reviews many  
firms now
publicly respond to them. How effective is this reputation management  
strategy in
improving a firm's reputation? We empirically answer this question by  
exploiting a
difference in managerial practice across two hotel review platforms,  
TripAdvisor and
Expedia: while hotels regularly respond to their TripAdvisor reviews, they  
almost never
do so on Expedia. Based on this observation, we use  
difference-in-differences to identify
the causal impact of management responses on consumer ratings by comparing  
in the TripAdvisor ratings of a hotel following its decision to begin  
responding against
a baseline of changes in the same hotel's Expedia ratings. We find that  
hotels, which account for 55% of hotels in our data, see an average  
increase of 0.12 stars
in the TripAdvisor ratings they receive after they start responding.  
Moreover, we show
that this increase in ratings does not arise from hotel quality  
investments. Instead,
we find that the increase is consistent with a shift in reviewer selection:  
with a poor experience become less likely to leave a negative review when  
hotels begin

Joint work with Giorgos Zervas.

URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2521190
When: Mon Nov 17, 2014 11am - 12pm Eastern Time
Where: MCS 148
Calendar: NRG Calendar
     * Yuefeng Wang - creator

Event details:  

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