Purpose: This paper focuses on the effects of positive and negative online reviews (eWOM) on the metrics of consumer-based brand equity (CBBE) in the context of the Polish restaurant sector.
Methodology: The dedicated online survey was completed by 777 consumers, which we then analyzed with structural equation modeling. Each catering outlet was to allow to order meals online. We used descriptive analysis, confirmatory factor analysis, and path analysis to test the hypotheses.
Findings: The findings suggest that positive online reviews affect each CBBE variable in the online catering outlet’s context. In the case of known catering establishment’s offering in the option of placing orders via online platforms, negative eWOM only affects the perceived quality and brand loyalty. However, it does not change brand awareness and brand association.
Implications: This paper contributes to the body of literature on eWOM, which to date offers very little understanding of the topic of positive and negative online reviews and CBBE dimensions. Moreover, in terms of practical and managerial applications, this study can be used to delineate strategy in terms of management of eWOM to optimize brand strategies.
Aaker, D.A. and McLoughlin, D. (2009). Strategic market management: global perspectives. John Wiley & Sons.
Ahmad, S.Z., Ahmad, N. and Bakar, A.R.A. (2018). Reflections of entrepreneurs of small and medium-sized enterprises concerning the adoption of social media and its impact on performance outcomes: Evidence from the UAE. Telematics and Informatics35(1), 6–17, https://doi.org/10.1016/j.tele.2017.09.006.
Álvarez-García, J., del Carmen Cortés-Domínguez, M., del Río, M.D.L.C. and Simonetti, B. (2019). Influence of brand equity on the behavioral attitudes of customers: Spanish Tourist Paradores. Quality & Quantity, 1–27.
Banerjee, S., Bhattacharyya, S. and Bose, I. (2017). Whose online reviews to trust? Understanding reviewer trustworthiness and its impact on business. Decision Support Systems96, 17–26, https://doi.org/10.1016/j.dss.2017.01.006.
Bartosik-Purgat, M. (2018). International Contexts of Social Media and e-WoM Communication in the Customer Decision-Making Process. Journal of Management and Business Administration. Central Europe26(2), 16–33, http://dx.doi.org/10.7206/jmba.ce.2450-7814.226.
Berezina, K., Bilgihan, A., Cobanoglu, C. and Okumus, F. (2016). Understanding satisfied and dissatisfied hotel customers: text mining of online hotel reviews. Journal of Hospitality Marketing & Management25(1), 1–24, https://doi.org/10.1080/19368623.2015.983631.
Berry, L.L. (1980). Services marketing is different. Business30(3), 24–29.
Bhandari, M. and Rodgers, S. (2018). What does the brand say? Effects of brand feedback to negative eWOM on brand trust and purchase intentions. International Journal of Advertising37(1), 125–141, https://doi.org/10.1080/02650487.2017.1349030.
Bilgihan, A., Seo, S. and Choi, J. (2018). Identifying restaurant satisfiers and dissatisfiers: Suggestions from online reviews. Journal of Hospitality Marketing & Management27(5), 601–625, https://doi.org/10.1080/19368623.2018.1396275.
Bruhn, M. and Schnebelen, S. (2017). Integrated marketing communication–from an instrumental to a customer-centric perspective. European Journal of Marketing51(3), 464–489, https://doi.org/10.1108/EJM-08-2015-0591.
Bruhn, M., Schoenmueller, V. and Schäfer, D.B. (2012). Are social media replacing traditional media in terms of brand equity creation? Management Research Review35(9), 770–790, http://dx.doi.org/10.1108/01409171211255948.
Brzozowska-Woś, M. (2018). The effects of perceived risk, brand value, and brand trust on eWOM. Handel Wewnętrzny6, 95–109.
Brzozowska-Woś, M. and Schivinski, B. (2017). Zaufanie do marek jako mediator pomiędzy postrzeganym ryzykiem i skłonnością do elektronicznego word-of-mouth. Handel Wewnętrzny5, 72–81.
Chatzipanagiotou, K., Christodoulides, G. and Veloutsou, C. (2019). Managing the consumer-based brand equity process: A cross-cultural perspective. International Business Review28(2), 328–343, https://doi.org/10.1016/j.ibusrev.2018.10.005.
Chen, C.C. and Chang, Y.C. (2018). What drives purchase intention on Airbnb? Perspectives of consumer reviews, information quality, and media richness. Telematics and Informatics35(5), 1512–1523, https://doi.org/10.1016/j.tele.2018.03.019.
Cheung, C. and Thadani, D. (2012). The impact of electronic word-of-mouth communication: A literature analysis and integrative model. Decision Support Systems54(1), https://doi.org/10.1016/j.dss.2012.06.008.
Chong, A.Y.L., Li, B., Ngai, E. W., Ch’ng, E. and Lee, F. (2016). Predicting online product sales via online reviews, sentiments, and promotion strategies: A big data architecture and neural network approach. International Journal of Operations & Production Management36(4), 358–383.
Christodoulides, G. and De Chernatony, L. (2010). Consumer-based brand equity conceptualization and measurement: A literature review. International Journal of Research in Marketing52(1), 43–66, http://doi.org/10.2501/S1470785310201053.
Christodoulides, G., Cadogan, J.W. and Veloutsou, C. (2015). Consumer-based brand equity measurement: lessons learned from an international study. International Marketing Review32(3/4), 307–328, http://dx.doi.org/10.1108/IMR-10-2013-0242.
Clemons, E.K. (2019). Online Brand Ambassadors and Online Brand Assassins: Master the New Role of the Chief Perception Officer. In: New Patterns of Power and Profit. Palgrave Macmillan, Cham.
Craig, C.S., Greene, W.H. and Versaci, A. (2015). E-word of mouth: Early predictor of audience engagement: How pre-release “e-WOM” drives box-office outcomes of movies. Journal of Advertising Research55(1), 62–72, https://doi.org/10.2501/JAR-55-1-062-072.
El-Baz, B.E.S., Elseidi, R.I. and El-Maniaway, A.M. (2018). Influence of Electronic Word of Mouth (e-WOM) on Brand Credibility and Egyptian Consumers’ Purchase Intentions. International Journal of Online Marketing (IJOM)8(4), 1–14, https://doi.org/10.4018/IJOM.2018100101.
Ettinger, A., Grabner-Kräuter, S. and Terlutter, R. (2018). Online CSR communication in the hotel industry: Evidence from small hotels. International Journal of Hospitality Management68, 94–104, https://doi.org/10.1016/j.ijhm.2017.09.002.
Fagerstrøm, A., Ghinea, G. and Sydnes, L. (2016). Understanding the Impact of Online Reviews on Customer Choice: A Probability Discounting Approach. Psychology & Marketing33(2), 125–134, http://doi.org/10.1002/mar.20859.
Farquhar, P.H., Han, J.Y. and Ijiri, Y. (1991). Recognizing and measuring brand assets. Report number 91-119/Marketing Science Institute (USA).
Foroudi, P., Jin, Z., Gupta, S., Foroudi, M.M. and Kitchen, P. J. (2018). Perceptional components of brand equity: Configuring the Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase intention. Journal of Business Research89, 462–474, http://doi.org/10.1016/j.jbusres.2018.01.031.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R. (2016). Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior. Journal of Business Research69(12), 5833–5841, https://doi.org/10.1016/j.jbusres.2016.04.181.
Goyette, I., Ricard, L., Bergeron, J. and Marticotte, F. (2010). e-WOM Scale: word-of-mouth measurement scale for e-services context. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l’Administration27(1), 5–23.
Gruen, T.W., Osmonbekov, T. and Czaplewski, A.J. (2006). eWOM: The impact of customer-to-customer online know-how exchange on customer value and loyalty. Journal of Business Research59(4), 449–456, http://dx.doi.org/10.1016/j.jbusres.2005.10.004.
Han, S.H., Nguyen, B. and Simkin, L. (2016). The dynamic models of consumers’ symbolic needs: in the context of restaurant brands. European Journal of Marketing50(7/8), 1348–1376.
Hanaysha, J.R. (2018). Customer retention and the mediating role of perceived value in retail industry. World Journal of Entrepreneurship, Management and Sustainable Development14(1), 2–24, https://doi.org/10.1108/WJEMSD-06-2017-0035.
He, Z., Han, G., Cheng, T.C.E., Fan, B. and Dong, J. (2018). Evolutionary food quality and location strategies for restaurants in competitive online-to-offline food ordering and delivery markets: An agent-based approach. International Journal of Production Economicshttps://doi.org/10.1016/j.ijpe.2018.05.008.
Hennig-Thurau, T., Gwinner, K.P., Walsh, G. and Gremler, D.D. (2004). Electronic word-of-mouth via consumer-opinion platforms: what motivates consumers to articulate themselves on the internet? Journal of Interactive Marketing18(1), 38–52, https://doi.org/10.1002/dir.10073.
Ho-Dac, N.N., Carson, S.J. and Moore, W.L. (2013). The effects of positive and negative online customer reviews: do brand strength and category maturity matter? Journal of Marketing77(6), 37–53, http://dx.doi.org/10.1509/jm.11.0011.
Ismail, T.A.T., Muhammad, R., Yusoff, N.M. and Shariff, M.S.M. (2018). Hotel Brand and Food Quality in Malaysia. Asian Journal of Quality of Life3(10), 51–59, https://doi.org/10.21834/ajqol.v3i10.98
Kamakura, W.A. and Russell, G. (1993). Measuring brand value with scanner data. Intern. Journal of Research in Marketing10, 9–22.
Kang, J.W. and Namkung, Y. (2019). The information quality and source credibility matter in customers’ evaluation toward food O2O commerce. International Journal of Hospitality Management78, 189–198, https://doi.org/10.1016/j.ijhm.2018.10.011.
Kim, A.J. and Johnson, K.K. (2016). Power of consumers using social media: Examining the influences of brand-related user-generated content on Facebook. Computers in Human Behavior58, 98–108, https://doi.org/10.1016/j.chb.2015.12.047.
Kim, B., Kim, S. and Heo, C.Y. (2016). Analysis of satisfiers and dissatisfiers in online hotel reviews on social media. International Journal of Contemporary Hospitality Management, 28(9), 1915–1936, https://doi.org/10.1108/IJCHM-04-2015-0177.
Kim, S., Koh, Y., Cha, J. and Lee, S. (2015). Effects of social media on firm value for US restaurant companies. International Journal of Hospitality Management49, 40–46, https://doi.org/10.1016/j.ijhm.2015.05.006.
Kunja, S.R. and GVRK, A. (2018). Examining the effect of eWOM on the customer purchase intention through value co-creation (VCC) in social networking sites (SNSs) A study of select Facebook fan pages of smartphone brands in India. Management Research Reviewhttps://doi.org/10.1108/MRR-04-2017-0128.
Lee, J., Park, D.H. and Han, I. (2008). The effect of negative online consumer reviews on product attitude: An information processing view. Electronic Commerce Research and Applications7(3), 341–352, http://dx.doi.org/10.1016/j.elerap.2007.05.004.
Lee, M. and Youn, S. (2009). Electronic word of mouth (eWOM) How eWOM platforms influence consumer product judgement. International Journal of Advertising28(3), 473–499.
Lee, M., Rodgers, S. and Kim, M. (2009). Effects of valence and extremity of eWOM on attitude toward the brand and website. Journal of Current Issues & Research in Advertising31(2), 1–11, https://doi.org/10.1080/10641734.2009.10505262.
Lee, Y.K., Back, K.J. and Kim, J.Y. (2009). Family restaurant brand personality and its impact on customer’s emotion, satisfaction, and brand loyalty. Journal of Hospitality & Tourism Research33(3), 305–328, http://dx.doi.org/10.1177/1096348009338511.
Leong, L.Y., Hew, T.S., Ooi, K.B. and Lin, B. (2019). Do electronic word-of-mouth and elaboration likelihood model influence hotel booking? Journal of Computer Information Systems59(2), 146–160, https://doi.org/10.1080/08874417.2017.1320953.
Li, H., Zhang, Z., Meng, F. and Zhang, Z. (2019). When you write review” matters: The interactive effect of prior online reviews and review temporal distance on consumers’ restaurant evaluation. International Journal of Contemporary Hospitality Managementhttps://doi.org/10.1108/IJCHM-01-2018-0058.
Lin, M.J. and Wang, W.T. (2015). Examining e-commerce customer satisfaction and loyalty: an integrated quality-risk-value perspective. Journal of Organizational Computing and Electronic Commerce25(4), 379–401, http://dx.doi.org/10.1080/10919392.2015.1089681.
Litvin, S.W., Goldsmith, R.E. and Pan, B. (2018). A retrospective view of electronic word-of-mouth in hospitality and tourism management. International Journal of Contemporary Hospitality Management30(1), 313–325, https://doi.org/10.1108/IJCHM-08-2016-0461.
Nieto-Garcia, M., Resce, G., Ishizaka, A., Occhiocupo, N. and Viglia, G. (2019). The dimensions of hotel customer ratings that boost RevPAR. International Journal of Hospitality Management77, 583–592, https://doi.org/10.1016/j.ijhm.2018.09.002.
Purnawirawan, N., Eisend, M., De Pelsmacker, P. and Dens, N. (2015). A Meta-analytic Investigation of the Role of Valence in Online Reviews. Journal of Interactive Marketing31, 17–27. http://doi.org/10.1016/j.intmar.2015.05.001.
Rambocas, M., Kirpalani, V. M., & Simms, E. (2018). Brand equity and customer behavioral intentions: a mediated moderated model. International Journal of Bank Marketing36(1), 19–40, https://doi.org/10.1108/IJBM-09-2016-0139.
Ruiz-Mafe, C., Chatzipanagiotou, K. and Curras-Perez, R. (2018). The role of emotions and conflicting online reviews on consumers’ purchase Intentions. Journal of Business Research89, 336–344, https://doi.org/10.1016/j.jbusres.2018.01.027.
Schivinski, B. and Łukasik, P. (2014). Rozwój badań nad kapitałem marki bazującym na konsumencie – przegląd literatury. Marketing i Rynek11, 74–80.
Sen, S. and Lerman, D. (2007). Why are you telling me this? An examination into negative consumer reviews on the web. Journal of interactive marketing21(4), 76–94, http://dx.doi.org/10.1002/dir.20090.
Serra-Cantallops, A., Ramon-Cardona, J. and Salvi, F. (2018). The impact of positive emotional experiences on eWOM generation and loyalty. Spanish Journal of Marketing-ESIC22(2), 142–162, https://doi.org/10.1108/SJME-03-2018-0009.
Sher, P.J. and Lee, S.H. (2009). Consumer skepticism and online reviews: An elaboration likelihood model perspective. Social Behavior and Personality: an international journal37(1), 137–143, http://dx.doi.org/10.2224/sbp.2009.37.1.137.
Sijoria, C., Mukherjee, S. and Datta, B. (2019). Impact of the antecedents of electronic word of mouth on consumer based brand equity: a study on the hotel industry. Journal of Hospitality Marketing & Management28(1), 1–27, https://doi.org/10.1080/19368623.2018.1497564.
Silverman, G. (2001). Secrets of Word-of-Mouth Marketing. New York, NY: AMACOM Books.
Sürücü, Ö., Öztürk, Y., Okumus, F. and Bilgihan, A. (2019). Brand awareness, image, physical quality and employee behavior as building blocks of customer-based brand equity: Consequences in the hotel context. Journal of Hospitality and Tourism Management40, 114–124, https://doi.org/10.1016/j.jhtm.2019.07.002.
Tata, S.V., Prashar, S. and Gupta, S. (2019). An examination of the role of review valence and review source in varying consumption contexts on purchase decision. Journal of Retailing and Consumer Serviceshttps://doi.org/10.1016/j.jretconser.2019.01.003
Teman, E.D. (2012). The performance of multiple imputation and full information maximum likelihood for missing ordinal data in structural equation models. University of Northern Colorado.
Thelwall, M. (2019). Sentiment Analysis for Tourism. In Big Data and Innovation in Tourism, Travel, and Hospitality (pp. 87–104). Singapore: Springer.
Trusov, M., Bucklin, R.E. and Pauwels, K. (2009). Effects of word-of-mouth versus traditional marketing: findings from an internet social networking site. Journal of Marketing73(5), 90–102, http://dx.doi.org/10.1509/jmkg.73.5.90.
Xiang, Z., Du, Q., Ma, Y. and Fan, W. (2017). A comparative analysis of major online review platforms: Implications for social media analytics in hospitality and tourism. Tourism Management58, 51–65, https://doi.org/10.1016/j.tourman.2016.10.001.
Xiang, Z., Schwartz, Z., Gerdes Jr, J.H. and Uysal, M. (2015). What can big data and text analytics tell us about hotel guest experience and satisfaction? International Journal of Hospitality Management44, 120–130, https://doi.org/10.1016/j.ijhm.2014.10.013.
Xie, K.L., Zhang, Z. and Zhang, Z. (2014). The business value of online consumer reviews and management response to hotel performance. International Journal of Hospitality Management43, 1–12, https://doi.org/10.1016/j.ijhm.2014.07.007.
Xue, F. and Phelps, J.E. (2004). Internet-facilitated consumer-to-consumer communication: The moderating role of receiver characteristics. International Journal of Internet Marketing and Advertising1(2), 121–136, http://dx.doi.org/10.1504/IJIMA.2004.004016.
Yoon, Y., Kim, A. J., Kim, J. and Choi, J. (2019). The effects of eWOM characteristics on consumer ratings: evidence from TripAdvisor. com. International Journal of Advertising, 1–20, https://doi.org/10.1080/02650487.2018.1541391.
Yu, M., Liu, F., Lee, J. and Soutar, G. (2018). The influence of negative publicity on brand equity: attribution, image, attitude and purchase intention. Journal of Product & Brand Management27(4), 440–451, https://doi.org/10.1108/JPBM-01-2017-1396.
Zeithaml, V.A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of Marketing52(3), 2–22, http://dx.doi.org/10.2307/1251446.
Zeithaml, V.A., Parasuraman, A. and Berry, L.L. (1985). Problems and strategies in services marketing. Journal of Marketing49(2), 33–46, http://dx.doi.org/10.2307/1251563.
Zeithaml, V.A. (1981). How consumer evaluation processes differ between goods and services. in Donnelly, J.H. and George, W.R. (eds). Marketing of Services. Chicago: American Marketing Association.
Zhang, C., Tian, Y.X., Fan, Z.P., Liu, Y. and Fan, L.W. (2019). Product sales forecasting using macroeconomic indicators and online reviews: a method combining prospect theory and sentiment analysis. Soft Computing, 1–14.
Zhang, L. and Hanks, L. (2018). Online reviews: The effect of cosmopolitanism, incidental similarity, and dispersion on consumer attitudes toward ethnic restaurants. International Journal of Hospitality Management68, 115–123, https://doi.org/10.1016/j.ijhm.2017.10.008.
Zhang, T., Abound Omran, B. and Cobanoglu, C. (2017). Generation Y’s positive and negative eWOM: use of social media and mobile technology. International Journal of Contemporary Hospitality Management29(2), 732–761, https://doi.org/10.1108/JHTT-11-2017-0130.
Zhang, Z., Ye, Q., Law, R. and Li, Y. (2010). The impact of e-word-of-mouth on the online popularity of restaurants: A comparison of consumer reviews and editor reviews. International Journal of Hospitality Management29(4), 694–700, http://dx.doi.org/10.1016/j.ijhm.2010.02.002.
Zhang, Z., Zhang, Z. and Law, R. (2014). Positive and negative word of mouth about restaurants: Exploring the asymmetric impact of the performance of attributes. Asia Pacific Journal of Tourism Research19(2), 162–180, http://dx.doi.org/10.1080/10941665.2012.735680.
Zhao, Y., Xu, X., and Wang, M. (2019). Predicting overall customer satisfaction: big data evidence from hotel online textual reviews. International Journal of Hospitality Management76, 111–121, https://doi.org/10.1016/j.ijhm.2018.03.017.