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JHTXXX10.1177/1096348017744016Journal of Hospitality & Tourism ResearchXie, So / EFFECTS OF REVIEWER EXPERTISE ON PERFORMANCE OF HOTELS
Karen L. Xie
University of Denver
Kevin Kam Fung So
University of South Carolina
Although the impacts of reviews provided by reviewers with expertise are well
documented, the literature lacks empirical research on how such reviews are
longitudinally linked to performance indicators and whether management responses
to such reviews lead to differential impacts on these indicators. This study investigates
the effects of reviewer expertise on hotels’ online reputation, online popularity, and
financial performance. Using a large data set of management responses and online
reviews from 730 hotels over 26 quarters, matched with quarterly financial performance
data, the authors found that the effects of average ratings and the number of reviews
on hotels’ subsequent financial performance are attenuated when reviewer expertise
increases. The study also demonstrates that business benefits are enhanced if hotels
target reviewers of higher expertise when providing management responses to online
reviews. Results suggest that when managing electronic word-of-mouth, practitioners
should take strategic approaches that leverage the influence of reviewer expertise.
Online reviews have a strong impact on how consumers evaluate tourism and
hospitality services (Browning, So, & Sparks, 2013). However, unlike tradi-
tional word-of-mouth communication, where source credibility and trustworthi-
ness are fundamental to consumers’ acceptance of a message (McGinnies &
Ward, 1980), in electronic word-of-mouth (e-WOM) consumers cannot readily
assess the credibility of a communication source (Litvin, Goldsmith, & Pan,
Journal of Hospitality & Tourism Research, 201X, Vol. XX, No. X, Month 2017, 1–23
DOI: 10.1177/1096348017744016
© The Author(s) 2017
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To address these research questions, we use large-scale but granular data con-
taining management responses and online consumer reviews on TripAdvisor for
hotels in major markets of Texas over 26 quarters, matched with quarterly hotel
performance records, for econometric analyses. Drawing on the theory of per-
suasion as a conceptual framework, our findings demonstrate that the effects of
average ratings and the number of reviews on subsequent financial performance
of hotels are attenuated when the level of reviewer expertise increases.
Furthermore, our study advances current understanding of management
responses by empirically showing that targeting reviewers with expertise can
magnify the impact of management intervention in online reviews and thus be
an effective strategy for increasing hotel performance.
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Literature Review
Theoretical Foundation
Hypothesis Development
Positive comments from reviewers with a higher level expertise are thought
to be important to engendering hotel reputation. To indicate a reviewer’s level of
expertise, many third-party review websites have created a metric to provide
such information. For example, TripAdvisor uses a system that shows the differ-
ent levels of expertise of reviewers and recognizes reviewers who (a) have lon-
ger membership on TripAdvisor, (b) earn a higher status badge, and (c) receive
more helpful votes. Similarly, Yelp’s users can acquire the “elite” badge if they
frequently provide high-quality reviews and actively engage with the commu-
nity (Filieri, 2015). Consistent with these practices, prior research suggests that
increased online review experience (Vermeulen & Seegers, 2009) and badges
earned by the reviewers (Schuckert, Liu, & Law, 2016) signal expertise of
reviewers. Furthermore, according to the source credibility theory (Ohanian,
1990), when the information sender shows signs of expertise the information
may be perceived as more credible. The literature supports that number of help-
ful votes in part indicates the reviewer expertise thus enhancing the credibility
of the review message and the reviewer (Dhanasobhon, Chen, & Smith, 2007).
Therefore, on the basis of the literature and the context of TripAdvisor, this
study focuses on length of membership, status badge, and the number of helpful
votes received as indicators of reviewer expertise.
Empirical research lends support for the effect of positive online review rat-
ings on hotel reputation. Scholars argue that, within the tourism industry, online
Xie, So / EFFECTS OF REVIEWER EXPERTISE ON PERFORMANCE OF HOTELS 5
reputation is derived from reviews (Serra Cantallops & Salvi, 2014) because
positive comments can enhance the market reputation of the company. However,
the magnitude of the effect may change if the reviews are written by reviewers
with expertise. The moderating role of reviewer expertise is evident in the litera-
ture. For example, research shows that reviewer expertise strongly influences
consumers. A recent study indicates a positive relationship between reviewer
expertise and people’s hotel online bookings (Zhao et al., 2015). Furthermore,
online information provided by reviewers with higher level of expertise is con-
sidered to be more useful and to have more influence on attitudes toward the
product and purchase intentions than information provided by amateur review-
ers (Lascu, Bearden, & Rose, 1995). Most recently, Zhang et al. (2016) found
that as the number of reviews written by reviewers with website-recognized
expertise increases, future traveler ratings for the hotel increase. On this basis,
we hypothesize the following:
Hypothesis 1 (Null): The positive association between the average rating of online
reviews and subsequent hotel reputation will not be stronger as the reviewer exper-
tise increases.
Hypothesis 1 (Alternative): The positive association between the average rating of
online reviews and subsequent hotel reputation will be stronger as the reviewer
expertise increases.
Hypothesis 2 (Null): The positive association between number of online reviews and
subsequent hotel popularity will be will not be stronger as the reviewer expertise
increases.
Hypothesis 2 (Alternative): The positive association between number of online
reviews and subsequent hotel popularity will be stronger as the reviewer expertise
increases.
The positive association between online reviews (both average ratings and
the number of reviews) and subsequent financial performance of hotels is well
supported in the literature. For example, research shows that the volume of
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Hypothesis 3 (Null): The positive association between online reviews (both average
ratings and the number of reviews) and subsequent financial performance of hotels
will not be stronger as the reviewer expertise increases.
Hypothesis 3 (Alternative): The positive association between online reviews (both
average ratings and the number of reviews) and subsequent financial performance
of hotels will be stronger as the reviewer expertise increases.
Table 1
Description of Sampled Hotels Across Five Major Texas Hotel Markets
a.Hotel class is designated by TripAdvisor using “Crowns,” with the value of 5 for a
luxury hotel, 4 for an above average hotel with some outstanding features and a broad
range of services, 3 for a full-service hotel, 2 for a midmarket economy hotel, and 1 for a
budget traveler hotel.
the customer engagement literature (So, King, & Sparks; 2014; So, King, Sparks,
& Wang; 2016). Extending this notion to the online review settings, responding to
reviewers with expertise is thought to have different effects on performance out-
comes of managing online reviews. Thus, we propose the following:
Methodology
Hotel Revenue Hotel revenues in dollars in a given quarter 1,350,000 1,760,000 695,495 3.10 15,205 17,300,000
Performance
Reviewer Membership Average years of reviewers’ TripAdvisor 1.13 1.23 1 1.37 0 8
Expertise membership in a given quarter
Badge Average level of reviewer expertise in a 2.15 1.11 2 0.77 1 5
given quarter, with the value of 1 for
“Reviewer,” 2 for “Senior Reviewer,”
3 for “Contributor,” 4 for “Senior
Contributor,” and 5 for “Top Contributor”
NumVotes Number of helpful votes reviewers 22.09 38.68 9 4.76 0 645
received from other users in a given
quarter
Consumer AveRatings Average ratings of reviews for hotel quality 3.48 1.19 3.86 −0.67 1 5
Reviews in a given quarter, with the value of 5
for “Excellent,” 4 for “Very Good,” 3
for “Average,” 2 for “Poor,” and 1 for
“Terrible.” It is a measure of online
reputation of hotels.
NumReviews Number of reviews in a given quarter. It is 3.67 6.62 2 10.92 1 189
a measure of online popularity of hotels.
Management NumResponses Number of manager responses in a given 0.49 2.13 0 9.49 0 52
Responses quarter
(continued)
Table 2. (continued)
a. We checked the normality of the variables through skewness. A logarithm transformation is needed when the data are excessively skewed positively or
negatively (Greene, 2012). Therefore, we take log transformations of some highly skewed variables (i.e., logNumReviews, logNumVotes, logSize, logRevenue, and
logNumResponses) to normalize the data in our regression analysis for effective estimation.
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Table 3
Pearson Correlation of Variables
1 2 3 4 5 6 7 8 9 10
1. AveRatings 1
2. NumReviews 0.14 1
3. NumResponses 0.03 0.62 1
4. Badge 0.15 0.03 −0.01 1
5. NumVotes 0.10 0.01 0.01 0.19 1
6. Membership 0.10 0.13 0.10 0.12 0.31 1
7. Class 0.26 0.40 0.32 0.16 0.22 0.11 1
8. Age −0.17 0.13 0.20 −0.05 0.03 −0.05 0.09 1
9. Size 0.05 0.41 0.35 0.14 0.23 0.08 0.54 0.33 1
10. NumAmenities 0.27 0.25 0.15 0.13 0.14 0.12 0.62 −0.01 0.38 1
Figure 1
Distribution of Management Responses by Years of Reviewer Membership
statistics of the variables. Table 3 shows that the correlation among variables are
below 0.8 (Katz, 2006), indicating that the estimation is unlikely to be biased by
collinearity of variables.
Figures 1 to 3 show management responses by reviewer expertise indicators,
including length of membership, reviewer badge, and number of helpful votes
received. Surprisingly, managers tend to respond overwhelmingly to reviewers
with less expertise. Specifically, 86.74% of management responses were to
reviewers with 0 to 2 years of membership; about 80.68% of management
responses were to reviewers who were not yet “contributors”; and only 19.32%
of responses went to reviewers with badges of “contributor” and above. Most
management responses (94.61%) were to reviewers who received fewer than 30
votes from other peer consumers for the helpfulness of their reviews. The results
imply that most hotel managers might not yet have targeted reviewers with
higher levels of expertise.
Xie, So / EFFECTS OF REVIEWER EXPERTISE ON PERFORMANCE OF HOTELS 11
Figure 2
Distribution of Management Responses by Reviewer Badge
Figure 3
Distribution of Management Responses by Number of Helpful Votes Received by
Reviewers
Model Specification
The goal of our empirical estimation is twofold. First, we examine the mod-
eration effects of reviewer expertise on subsequent online reputation (i.e., aggre-
gate average ratings of reviews) and popularity of hotels (i.e., aggregate number
of reviews). Second, we investigate the impact of reviewer expertise on hotel
financial performance through its moderation effect with online reviews and
management responses. We use a blend of linear regression models to estimate
such effects while controlling for hotel characteristics.
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For each hotel i, its online reputation and popularity affected by reviewer
expertise in Quarter t are modeled as
AveRatingsit = α1 + β1a AveRatingsit −1 + β1b Expertiseit −1
+ β1c AveRatingsit −1 × Expertiseit −1 (1)
+ γ 1 HTCit + δ1 HCi + ε it
We model the subsequent hotel reputation, hotel popularity, and hotel perfor-
mance as a function of online reviews and management responses, as well as
several reviewer expertise indicators (i.e., length of membership, reviewer
badge, number of helpful votes received), yet control for relevant hotel charac-
teristics such as hotel age, size, and class. We employ a blend of econometrics
Xie, So / EFFECTS OF REVIEWER EXPERTISE ON PERFORMANCE OF HOTELS 13
models with fixed effects to estimate the hypothesized effects. The fixed effects
estimation controls for time-invariant unobserved heterogeneity of individual
entities (hotels in our case) without estimating them (Greene, 2012). To reduce
heteroscedasticity concerns, we leverage robust standard errors clustered at the
hotel level (Wooldridge, 2010). We execute the analyses using STATA Version
14, a statistical software widely used for econometrics analysis (Muenchen,
2012). Table 4 presents the estimation results for Equations (1) and (2). Table 5
shows the estimation results for Equation (3). For each equation we test three
models, each using a candidate measure of reviewer expertise, including
Membership, Badge, and logNumVotes.
AveRatings logNumReviews
AveRatingst-1 0.256*** (.000) 0.247*** (.000) 0.256*** (.000) logNumReviewst-1 0.375*** (.000) 0.501*** (.000) 0.280*** (.000)
Membershipt-1 0.053 (.118) Membershipt-1 0.033*** (.000)
Badget-1 0.079** (.031) Badget-1 0.006 (.602)
logNumVotest-1 0.010 (.740) logNumVotest-1 0.006 (.479)
AveRatingst-1 * 0.010*** (.001) logNumReviewst-1 * 0.020** (.017)
Membershipt-1 *Membershipt-1
AveRatingst-1 * 0.006** (.042) logNumReviewst-1 * 0.071*** (.000)
Badget-1 Badget-1
AveRatingst-1 * 0.004 (.138) logNumReviewst-1 * 0.032*** (.000)
logNumVotest-1 logNumVotest-1
Aget −0.010*** (.000) −0.010*** (.000) −0.010***(.000) Aget 0.003*** (.000) 0.003*** (.000) 0.004*** (.000)
logSizet −0.091*** (.000) −0.095*** (.000) −0.096*** (.000) logSizet 0.186*** (.000) 0.207*** (.000) 0.177***(.000)
Classt — — — Classt — — —
NumAmenitiest — — — — — —
Constant 2.245*** (.000) 2.265*** (.000) 2.320*** (.000) Constant −0.842*** (.000) −0.909*** (.000) −0.784*** (.000)
Observations 6,368 7,021 5,735 Observations 6,948 6,432 6,209
R2 0.189 0.189 0.174 R2 0.308 0.321 0.301
Table 5
Moderation Effects of Reviewer Expertise on Hotel Performance
logRevenue
positive impacts are likely to increase when reviews are written by reviewers
with longer membership. Furthermore, we find that length of membership also
positively moderates the effect of management responses on hotel performance
(0.010*). This result extends recent studies about the positive effects of manage-
ment responses on hotel financial performance (Mattila & Mount, 2003; S.-Y.
Park & Allen, 2013; K. L. Xie, So, & Wang, 2017; K. L. Xie et al., 2014), sug-
gesting that offering management responses to reviewers with longer member-
ship will likely strengthen the impact of management response on financial
performance.
Model 8 shows a positive moderation effect of reviewer badge in enhancing
the associations between financial performance and average rating (0.010**)
and management responses (0.005*). On one hand, as the reviewer’s badge
upgrades, the effect of the reviewer’s average rating on hotel performance
increases because reviewers in higher status have more influence on the pur-
chase decision of subsequent consumers (Zhang et al., 2016). This result occurs
because online information given by reviewers with more expertise is perceived
to be more useful and has greater influence on attitudes toward the product and
purchase intentions (Lascu et al., 1995). On the other hand, responding to
reviewers with a higher status would amplify the effect of management responses
on hotel performance. A plausible reason for this finding is that customer care,
as communicated in management responses, has a stronger impact when manag-
ers respond to these experienced and seasoned reviewers with expertise.
Consistent with the network coproduction model (Kozinets et al., 2010), the
result supports that in the context of managing online reviews, a greater level of
benefits can be achieved by influencing the more influential, respected, and
credible WOM-spreading consumers.
Model 9 reveals significant moderation effects of the number of helpful votes
on average rating (0.003*) and number of reviews (0.045***), but not on man-
agement responses (0.011). Although the reviewers who receive more helpful
votes enhance the positive effects of consumer reviews on hotel financial perfor-
mance, responding to those reviewers may not be a useful strategy for managers
given the insignificant moderation effect of management responses. Clearly, the
moderation effects of reviewer expertise measures may vary, and managers can
influence hotel performance by engaging with reviewers with longer member-
ship and higher level status or badge. However, responding to reviewers who
receive more helpful votes may not necessarily result in increased performance.
Our recommendation is that managers be selective and strategic when respond-
ing to reviewers.
This study investigates how reviewer expertise may influence the online rep-
utation and popularity as well as the financial performance of hotels and how
managers can use social persuasion to leverage hotel performance by respond-
ing to reviewers with expertise. Our study adds new insights to the literature by
Xie, So / EFFECTS OF REVIEWER EXPERTISE ON PERFORMANCE OF HOTELS 17
Theoretical Implications
Practical Implications
Given the extent and salience of social information that reviewers disclose in
product reviews (Forman, Ghose, & Wiesenfeld, 2008), expertise of reviewers
becomes accessible to consumers who seek truly insightful information online to
support their decision making. However, the importance of reviewers’ expertise
to hotel businesses and understanding of what strategy managers should employ
to use such unique information remain practically less known. This study pro-
vides insights into the importance of reviews from reviewers with expertise in
influencing hotels’ online reputation, popularity, and performance and how hotel
managers can use such information to leverage their business performance.
Our results also show that consumers are responsive to the level of expertise
disclosed by reviewers, especially those with longer membership and higher badge
status. Our study thus suggests that managers may be able to increase hotels’ perfor-
mance by encouraging reviewers to reveal more expertise–descriptive information
about themselves. Adequate incentives (loyalty points, free drink coupons, etc.) can
be offered to encourage seasoned reviewers of the hotel to write reviews, no matter
Xie, So / EFFECTS OF REVIEWER EXPERTISE ON PERFORMANCE OF HOTELS 19
positive or negative. In this way, managers can better identify reviewers with exper-
tise and may selectively focus on addressing their concerns to leverage the online
social influence of these reviewers.
Our study additionally highlights the interplay between management
responses and reviewer expertise. Our empirical evidence shows the business
value of management responses to online reviews by seasoned reviewers. The
new insight from this study is that hotel firms should respond to a selective col-
lection of reviews by reviewers with expertise. Our empirical results show that
such an approach could be an effective and efficient strategy for increasing busi-
ness performance. First, we recommend that managers responding to online
reviews also consider the expertise of reviewers who write the online reviews,
as responding to reviewers with greater expertise enhances the impact of man-
agement responses on financial performance. In addition, we advocate that when
allocating resources to manage online reviews, managers may want to give pri-
ority to reviews by reviewers with expertise. A careful screening of review pro-
file information would help managers target influential fellow reviewers among
consumers who write reviews for the business. Finally, hotels can feature well-
written examples of management responses to seasoned reviewers in their mar-
keting outlets and promote these example responses both internally and
externally. Internally, the example responses can help employees learn the skills
of customer engagement, and externally consumers who are exposed to the
example management responses can appreciate the customer care they reflect
and can follow their peer reviewers with expertise in a positive way.
The study has some limitations. First, our sample is restricted to five major
hotel markets in Texas over a limited period of time. To increase the representa-
tiveness of the sample and the generalizability of the estimation results, addi-
tional work in other markets is needed. Future research can replicate the
estimation of this study using alternative data sources and provide more empiri-
cal insights about reviewer expertise in the arena of social media research.
Second, although this study focuses on the moderation effects of the expertise of
reviewers, it is theoretically plausible to postulate that reviewer expertise may
mediate the effects of hotel reputation and popularity on hotel performance.
Future studies could explore the multidirectional effects of reviewer expertise.
We believe such research would bring useful insights and perspectives to the
field of online review research. Finally, we focus on the revenue of individual
hotels as one of the dependent variables in this study. Because of the data
unavailability, we did not incorporate other hotel performance variables such as
RevPAR in estimating the effects of the expertise of reviewers. Future studies
are encouraged to replicate our modelling approaches using RevPAR as the per-
formance outcome, thus providing additional meaningful insights and validation
into the effects estimated.
20 JOURNAL OF HOSPITALITY & TOURISM RESEARCH
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