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The role of electronic word of mouth in reducing information asymmetry: An empirical investigation of online hotel booking

机译:电子口碑在减少信息不对称方面的作用:在线酒店预订的实证研究

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摘要

The hotel industry is plagued with asymmetric information, which may distort prices and reduce incentives to provide quality service. However, both branding and hotel star ratings play an important role in reducing information asymmetry. The question addressed here is whether electronic word-of-mouth (eWOM) - an increasingly popular form of online feedback-contributes to any further reduction in information asymmetry; and, if so, in what manner. Using a dataset of listed prices and guests' ratings extracted from Booking.com, including several covariates, we show that the price reputation gradient is much steeper in lower star-rated hotels than in higher star-rated hotels. The gradient is also steeper in unbranded hotels than in branded hotels. As lower star rated and unbranded hotels are laden with greater quality uncertainty, this finding lends support to the hypothesis that the greater the information asymmetry, the greater the role of eWOM in reducing that uncertainty. Managerial implications are discussed.
机译:旅馆业受到信息不对称的困扰,这可能会扭曲价格并降低提供优质服务的动机。但是,品牌和酒店星级评定在减少信息不对称方面都起着重要作用。这里要解决的问题是电子口碑(eWOM)(一种越来越流行的在线反馈形式)是否有助于进一步减少信息不对称性;如果是这样,以什么方式。使用包括从Booking.com提取的列出价格和住客评分的数据集(包括多个协变量),我们发现,低星级酒店的价格信誉梯度比高星级酒店的陡峭得多。非品牌酒店的梯度也比品牌酒店的梯度大。由于星级较低的无星级酒店的质量不确定性较高,这一发现为以下假设提供了支持:信息不对称越大,eWOM在减少不确定性中的作用就越大。讨论了管理意义。

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