Tag Archives: service business

This text is drawn from excerpts of an article published through Elsevier’s International Journal of Hospitality Management.

Suggested citation: Camilleri, M.A. & Filieri, R. (2023). Customer satisfaction and loyalty with online consumer reviews: Factors affecting revisit intentions, International Journal of Hospitality Management, https://doi.org/10.1016/j.ijhm.2023.103575

Abstract

While previous research investigated the effects of online consumer reviews on purchase behaviors, currently, there is still a lack of knowledge on the impact of the reviews’ credibility, content quality and information usefulness on the customers’ satisfaction levels with them. Data were gathered from a sample of 512 participants. A partial least squares approach was utilized to evaluate the reliability and validity of the constructs and to identify the causal effects in this contribution’s structured model. The findings reveal that information usefulness is a very strong predictor of satisfaction. They also confirm highly significant indirect effects, between information quality and customer satisfaction, when information usefulness meditates this link. This study suggests that prospective customers appreciate quality reviews of consumers who have already experienced the hospitality services. It raises awareness about the usefulness of review sites as online users refer to their content before committing themselves to purchasing products and services. 

Keywords: customer satisfaction; customer loyalty; information usefulness; information quality; source credibility; information adoption model.

Introduction

The advances of the Internet are presenting online users and prospective customers of hospitality businesses with a great opportunity for interactive engagement through blogs, microblogs, discussion fora, social networking sites and online communities. Many consumers are sharing their insights about their service experiences through review platforms like AirBnB, Booking.com, TripAdvisor, and the like. Very often, they praise or complain about different aspects of their service encounters (Akdim et al., 2022; Filieri and McLeay, 2014; Rita et al., 2022). Such testimonials are intended to support potential consumers to reduce their uncertainty before committing themselves to make purchase decisions.

The electronic content featured in review sites as well as in social media can be read by online users hailing from different regions across the globe. Interactive platforms enable their users to feature positive and negative publicity (Moro et al., 2020; Sun and Liu, 2021; Shin et al., 2023) via qualitative service evaluations and/or via quantitative scores, also known as ratings.  Online users can subscribe to review networks to voice their testimonials on their satisfaction and/or on their dissatisfaction levels with the services they experienced (Kim et al., 2023; Zheng et al., 2023). In the latter case, they will intentionally engage in negative word-of-mouth (WOM) publicity to tarnish the reputation and image of the business (Qiao et al., 2022).

This topic has been attracting the interest of a number of scholars in marketing, information systems, as well as in travel, tourism and service industries (Donthu et al., 2021). Various researchers sought to investigate the consumers’ acceptance of online reviews. Frequently, they explored the internalization processes whereby individuals take heed, or take into consideration user generated content, like electronic WOM (eWOM) publicity, that is usually cocreated by consumers who have already experienced products and services, in order to enhance their extant knowledge about the service quality provided by hospitality businesses (Song et al., 2022; Zhang et al., 2021).

This argumentation is consistent with the information adoption model (IAM). Sussman and Siegal (2003) suggest that individuals tend to rely on quality information if they believe that it is useful to them. The authors argued that persons are influenced by knowledge transfer if they understand and comprehend the flows of information they receive. Hence, individuals would be in a position to determine the best courses of action that better serve their needs, particularly if they perceive that other individuals are providing reliable and trustworthy advice to them (Erkan and Evans 2016).

Information adoption factors, including details relating to the quality of the content and the credibility of the informational sources, may significantly affect the individuals’ perceptions about the usefulness of online reviews (Cheung et al., 2008; Filieri, 2015). Hence, the argument quality of consumer testimonials, as well as the credibility of the sources, are two major determinants that can influence online users’ satisfaction levels (Filieri et al., 2015; Zhao et al., 2019), with the sites hosting online reviews, and may even determine their revisit intentions to them (Kaya et al., 2019; Ladhari and Michaud, 2015; Rodríguez et al., 2020).

This empirical research investigates perceptions toward consumer review sites. It focuses on online users’ beliefs about the quality of their information, as well as on the credibility and usefulness of their content. It examines these constructs exogenous effects on their satisfaction levels and on their loyalty with consumer review platforms, as shown in Figure 1.

Hence, this study validates key factors, namely, information quality (Cheung et al., 2008; Kumar and Ayodeji, 2021; McClure and Seock, 2020; Talwar et al., 2021), source credibility (Argyris et al., 2021; Filieri, 2015), and information usefulness (Camilleri et al., 2023; Filieri, 2015). These measures are drawn from valid information and/or technology adoption models (Sussman and Siegal, 2003), and are combined with consumer satisfaction (Maxham and Netemeyer, 2002) and consumer loyalty (Tran and Strutton, 2020; Zeithaml, et al., 1996). The latter two constructs are associated with the service-dominant logic (Zeithaml et al., 2002; Parasuraman et al., 2005).

Arguably, regular users of review platforms are likely to take heed of the consumers’ recommendations as they perceive the usefulness of their advice (on their service encounters) (D’ Acunto et al., 2020; Xu, 2020; Ye et al., 2009). The researchers presume that the individuals who utilize these websites will usually trust past customers’ experiences. Hence, this study hypothesizes that the respondents who habitually rely on consumer reviews, are satisfied with the quality of their content, and that they perceive that their sources are credible and useful. As a result, the research participants may be intrigued to revisit them again in the future. Hence, the research questions of this contribution are:

RQ1: How and to what extent are information quality and source credibility affecting the usefulness of consumer reviews?

RQ2: How and to what extent are informative and helpful reviews influencing online users’ satisfaction levels and loyalty behaviors, in terms of their revisit intentions to these platforms?

RQ3: How and to what degree is information usefulness mediating the information quality – customer satisfaction/customer loyalty and/or source credibility – customer satisfaction/customer loyalty causal paths?

Previous research examined the perceptions about eWOM and focused on online review websites by using IAM (Cheung et al., 2008; Filieri, 2015). However, for the time being, no other studies sought to explore the effects of IAM’s key constructs on electronic service quality’s (eSERVQUAL’s) endogenous factors of satisfaction and loyalty. Therefore, this study raises awareness on the usefulness of review sites as prospective customers are referring to their content before committing themselves to purchasing products or prior to experiencing the businesses’ services. In this case, the researchers theorized that they would probably revisit the review platforms, if they were satisfied with their quality information and source credibility.

A survey questionnaire was employed to collect data from subscribers of popular social media networks. A structured equations modelling partial least squares SEM-PLS methodology was utilized to examine the proposed research model in order to confirm the reliability and validity of the constructs used in this study. This composite based SEM approach enabled the researchers to shed light on the significant effects that are predicting the respondents’ likelihood to rely on user generated content and to determine whether they influenced their satisfaction levels and revisit intentions.

The following section features an original conceptual framework and formulates the hypotheses of this empirical investigation. Afterwards, the methodology provides details on the data collection process for this quantitative study. Subsequently, the results illustrate the findings from SmartPLS’s analytical approach to reveal the causal effects in this study’s research model. In conclusion, this article identifies theoretical and managerial implications. The researchers discuss about the limitations of this study and outline future research avenues.

Table 1. A definition of the key factors used in this study

Term	Definition
Information Quality:	This factor measures perceptions on the quality of information (in terms of the consumer reviews’ reliability and appropriateness).
Source Credibility:	This factor measures perceptions on the credibility of the sources (in terms of the consumer reviewers’ trustworthiness and proficiency in sharing service their experiences with others).
Information Usefulness:	This factor measures perceptions on the utilitarian value of information (featured in consumer reviews).
Customer Satisfaction:	This factor refers to positive or negative feelings about products or services (in this case, it is focused on electronic services provided by review websites).
Customer Loyalty:	This factor refers to the willingness to repeatedly engage with specific businesses (in this case, it is focused on review websites).

Theoretical implications

This contribution puts forward a research model that integrated IAM’s key factors including information quality (Cheung et al., 2008; Filieri, 2015; McClure and Seock, 2020; Talwar et al., 2021)), source credibility (Filieri et al., 2021; Ismagilova et al., 2020) and information usefulness (of consumer reviews) (Camilleri and Kozak, 2023; Moro et al., 2020) with eSERVQUAL’s satisfaction (Kaya et al., 2019; Kumar and Ayodeji, 2021) and loyalty outcomes (Kumar and Ayodeji, 2021; Tran and Strutton, 2020).

The results from SmartPLS 3 confirm the reliability and validity of all measures that were used in this study. The findings indicate highly significant direct as well as indirect effects that are predicting the online users’ satisfaction levels and loyalty with review sites. This research suggests that the quality of the user generated content as well as the sources’ credibility (in terms of the trustworthiness and expertise of the online reviewers) are positive and significant antecedents of the individuals’ perceptions about the usefulness of information. These findings reveal that both information quality and source credibility are significant precursors of information usefulness, thereby validating mainstream IAM theoretical underpinnings (Cheung et al., 2008; Chong et al., 2018; Erkan and Evans, 2016; Filieri, 2015; Sussman and Siegal, 2003).

This study differentiated itself from IAM as it examined the effects of information quality, source credibility and information usefulness on the consumers’ satisfaction levels and loyalty with review websites. It reported that information usefulness – customer satisfaction was the strongest link in this empirical investigation and that customer satisfaction partially mediated the relationship between information usefulness and customer loyalty. Moreover, the results showed that there were highly significant indirect effects between information quality and customer satisfaction, between information quality and customer loyalty, between source credibility and customer satisfaction, and between source credibility and customer loyalty.

In this case, this research indicated that the respondents (i.e. online users) were satisfied with the review platforms that featured the consumers’ testimonials about their “moments of truth” with hospitality businesses. It suggested that they were likely to re-visit them again in the future. To the best of the authors’ knowledge there are no studies in the academic literature that have integrated theoretical underpinnings related to the service dominant logic (Vargo and Lusch, 2008), or to SERVQUAL- and/or eSERVQUAL-related factors (Kaya et al., 2019; Maxham and Netemeyer, 2002; Parasuraman et al., 2005; Rodríguez et al., 2020; Zeithaml et al., 1996; Zeithaml et al., 2002) with IAM constructs (Camilleri & Kozak, 2023; Chatterjee et al., 2023; Cheung et al., 2008; D’Acunto et al., 2020; Erkan and Evans 2016; Filieri, 2015; Huiyue et al., 2022; Kang and Namkung, 2019; Li et al., 2020; Sussman and Siegal, 2003; Ye et al., 2009) to explore the satisfaction levels and revisit intentions to review websites focused on consumer experiences of hospitality services. This original research addresses this knowledge gap. In conclusion, it implies that IAM’s exogenous factors can be used to investigate the online users’ perceptions about the usefulness and satisfaction with past consumers’ service evaluations, and to shed light on their intentions to habitually check out the qualitative content of review platforms/apps, prior to visiting service businesses (including hotels, Airbnbs and restaurants, among others) and/or before committing themselves to a purchase decision.

This contribution’s novel conceptual model raises awareness on the importance of evaluating the consumers’ satisfaction levels as well as their revisit intentions of review sites rather than merely determining how information usefulness and other IAM antecedents affect their information adoption.

Managerial implications

This research postulates that online users are perceiving the usefulness of consumer reviews. It clearly indicates that the respondents feel that they feature quality content and that they consider them to be informative, credible and trustworthy. The results suggest that they are satisfied with the user generated content (that sheds light on the reviewers’ opinions on their personal service encounters). In fact, their responses imply that they are likely to revisit review websites and/or to engage with their apps again.

The review platforms are helping prospective consumers in their purchase decisions. They enable them to quickly access consumer experiences with a wide array of service providers and to compare their different shades of opinions. This study shows that they are evaluating the consumer reviews to determine whether the hospitality firms are/are not delivering on their promises?

The consumers’ reviews can make or break a business. The restaurant patrons’ and/or the hotel guests’ words of praise as well as their genuine expressions of respect and gratitude can elevate the business and enhance its corporate reputation. Alternatively, the customers’ critical evaluations may tarnish the image of hospitality business (in this case). Whilst the consumers’ positive experiences with a company increases the likelihood of their loyal behaviors and of word-of-mouth publicity (that attracts new customers), poor reviews and ratings could signal that the customers are dissatisfied with certain aspects of the service delivery and may even result in their conversion to the hospitality firms’ competitors.

Hence, it is in the businesses’ self-interest: (i) to consistently deliver service quality, (ii) to meet and exceed their customers’ expectations, (iii) to continuously monitor their consumers’ reviews, (iv) to address contentious issues in a timely manner, and (v) to minimize consumer complaints (and turn them into opportunities for consumer satisfaction and loyalty).

Limitations and future research avenues

This research comprised reliable measures that are tried and tested in academia. Information quality, source credibility and information usefulness factors were utilized to explore the customers’ satisfaction and loyalty with review sites. These five constructs were never integrated together within the same empirical investigation. Future researchers are invited to validate this study in other contexts. For example, this theoretical model could explore the online users’ satisfaction and intentions to use social media networks (SNSs) and/or e-commerce websites and online marketplaces.

Alternatively, researchers can include other constructs related to IAM to assess perceptions about information understandability, information reliability, information relevance, information accuracy, and information timeliness, among others. Most of these constructs represent information quality. In addition, they may examine the individuals’ insights about source trustworthiness and/or source expertise rather than integrating them into a source credibility construct. They may also consider various constructs from eSERVQUAL like website appeal, attractiveness, design, functionality, security and consumer fulfilment aspects.

Perhaps, there is scope for future studies to consider other measures that are drawn from psychology research like the Social Cognitive Theory (Bandura, 1986), the Theory of Reasoned Action (Fishbein and Ajzen, 1975), or the Theory of Planned Behavior (Ajzen, 1991), among others, or from technology adoption models including the Technology Acceptance Model’s TAM (Davis, 1989; Davis et al., 1989), TAM2 (Wang et al., 2021), TAM3 (Al-Gahtani, 2016), the Innovation Diffusion Theory (IDT) (Moore and Benbasat, 1991; Rogers, 1995), the Motivational Model (MM) (Davis et al., 1992), the Unified Theory of Acceptance and Use of Technology’ UTAUT (Venkatesh et al., 2003) and UTAUT2 (Venkatesh et al., 2012), among others.

These theories may be used to better understand the acceptance and utilization of information technologies (like review platforms). Notwithstanding, other studies are required to shed more light on the moderating effects of demographic variables, on the usability and satisfaction levels with disruptive innovations like voice assistance, chatbots, ChatGPT, Metaverse, and the like.

Other researchers may utilize other research designs and sampling approaches to gather and analyze primary data. They could capture interpretative data through inductive research, to delve deeper in the informants’ opinions about eWOM publicity in consumer review sites. Qualitative research methodologies and interpretative designs could shed more light on important insights on how, where, when and why the customers’ user-generated content (on their service experiences) could influence the intentional behaviors of prospective consumers in today’s digital age.

All the references are featured in the article. An open access version is available here: https://www.researchgate.net/publication/372891266_Customer_satisfaction_and_loyalty_with_online_consumer_reviews_Factors_affecting_revisit_intentions