An empirical examination of online restaurant reviews
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Hlee, S.; Lee, J.; Yang, S.-B.; Koo, C. at ENTER2016 eTourism Conference
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An empirical examination of online restaurant reviews
- 1. ENTER 2016 Research Track Slide Number 1 An Empirical Examination of Online Restaurant Reviews(Yelp.com) : Moderating Roles of Restaurant Type and Self-image Disclosure Sunyoung Hleea , Jimin Leeb , Sung-Byung Yangc , Chulmo Kood a,b Department of Convention & Exhibition management, Graduate School, Kyung Hee University, Seoul, Republic of Korea c School of Business, Ajou University, Suwon, Republic of Korea d College of Hotel & Tourism Management Kyung Hee University, Republic of Korea helmetgu@khu.ac.kr
- 2. ENTER 2016 Research Track Slide Number 2 1. Introduction 2. Theoretical Background 1) Online Travel Reviews 2) Elaboration Likelihood Model 3) Restaurant Experience 3. Operationalization of Variables 4. Research Model & Hypothesis 5. Methodology 6. Data Analysis 7. Results 8. Conclusions 9. Limitations
- 3. ENTER 2016 Research Track Slide Number 3 TripAdvisor announced “the results of TripBarometer”(2014) The Importance of Online Consumer Reviews 85% of consumers will search the internet for online reviews. 1 92% of consumers will use a local business if it has at least a 4-star rating. 4 79% of consumers trust online reviews. 2 Online reviews make consumers trust a local business more. 3 86% of consumers will hesitate to purchase from a business that has negative online reviews. 5 I. Introduction
- 4. ENTER 2016 Research Track Slide Number 4 I. Introduction Creation of share economy for local business •Online travel reviews allows tourism businesses to have active, positive participation from tourists. •… provide consumers a main platform to create a relationship with small medium tourism businesses.
- 5. ENTER 2016 Research Track Slide Number 5 Many studies have explored the various features and elements of online reviews to evaluate their influences on consumer perceptions. (Jeong & Jang, 2011; Liu & Park, 2015; Park & Nicolau, 2015; Racherla & Friske 2012) Star Ratings, Review Length, Readability, Negative vs. Positive words Reviewer Factors Reviewers' Identity Disclosure(i.e., real location, real name, real photo), Expertise, Reputation (number of reviews, friends, elite award) Review Factors Other Factors Product Types(Experience vs. Search good), Price level Textual Aspects I. Introduction
- 6. ENTER 2016 Research Track Slide Number 6 Textual AspectsTextual Aspects Imagery AspectsImagery Aspects + Review Usefulness I. Introduction DINESCAPE Food & BeverageFood & Beverage Physical Environment Physical Environment Restaurant TypesRestaurant Types Self-image disclosure Self-image disclosure Elaboration Likelihood Model (Petty and Cacioppo,1979) Elaboration Likelihood Model (Petty and Cacioppo,1979) Central CuesCentral Cues Peripheral CuesPeripheral Cues Restaurant Experince
- 7. ENTER 2016 Research Track Slide Number 7 2. Theoretical Background_ 1) Online Consumer Reviews Review Usefulness/ hepfulness Review Usefulness/ hepfulness Text-based reviews Text-based reviews Video-based reviews Video-based reviews Review EnjoymentReview Enjoyment ① ② (Liu and Park, 2015; Baek et al. 2012; Korfiatis et. al., 2012; Forman et al. 2008; Ghose et al. 2011) ③ (Park and Niolau, 2015) ③ ① (Xu et. al.,2015) ② Evaluation of reviews Reviewer Characteristics Reviewer Characteristics Presentation Formats of review Characteristics ③ Product Types Consumer Characteristics Moderator Image-based reviews Image-based reviews ④ ④ This study Restaurant Types Reviewer’s Self-Image Disclosure
- 8. ENTER 2016 Research Track Slide Number 8 2. Theoretical Background_2) ELM The elaboration likelihood model (ELM) proposes two major routes of persuasion: the central route & the peripheral route.(Petty and Cacioppo,1979) •Consumers have a high level of message elaboration in which a great amount of cognition. •This can lead to permanent change in consumer attitude as we adopt and elaborate upon the speaker’s arguments. Central RouteCentral Route •Peripheral cues are generally unrelated to the logical quality of the stimulus. •This can lead temporary attitude change. Perpheral RoutePerpheral Route
- 9. ENTER 2016 Research Track Slide Number 9 2. Theoretical Background_2) ELM High motivation and ability to think about the message High motivation and ability to think about the message Lasting change that resists fading and counterattacks Lasting change that resists fading and counterattacks Information (Online Reviews) Deep processing, focused on the quality of the message arguments Deep processing, focused on the quality of the message arguments Audience Factors Processing Approach Persuasion Outcome Low motivation or ability to think about the message Low motivation or ability to think about the message Superficial processing, Focused on the surface features such as the communicatior’s attractiveness or the number of arguments presented Superficial processing, Focused on the surface features such as the communicatior’s attractiveness or the number of arguments presented Temporary change that is susceptible th fading and counterattacks Temporary change that is susceptible th fading and counterattacks Central Cues : Review Length, Negative words%Central Cues : Review Length, Negative words% (Baek, Ahn, and Choi, 2012) Peripheral Cues : Star Rating, Reviewer’s reputation, Real NamePeripheral Cues : Star Rating, Reviewer’s reputation, Real Name Central Cues Peripheral Cues
- 10. ENTER 2016 Research Track Slide Number 10 Review Usefulness Attributes of Textual Review Attributes of Imagery Review # Online Review Sample(Yelp.com) Reviewer’s Self-image Disclosure Central CuesCentral Cues Peripheral CuesPeripheral Cues Restaurant Type (Casual dining vs. Fine Dining)
- 11. ENTER 2016 Research Track Slide Number 11 2. Theoretical Background_3) Restaurant Experience DINESCAPE Restaurant Types Food & Beverage VS & Physical Environment Fine Dining Restaurant Casual Dining Restaurant (Ryu, K. & Jang, S. , 2008) (wang & Ok, 2013)
- 12. ENTER 2016 Research Track Slide Number 12 3. Operationalization of variables Physical Environment Image Food& Beverage Image Review Readability Review Length Modrator Self Image Disclosure Independent Variables Dependent Variables Restaurant Types
- 13. ENTER 2016 Research Track Slide Number 13 4. Research Model & Hypotheses Peripheral Cues Review UsefulnessReview Usefulness Physical Environment images Physical Environment images Food & Beverage images Food & Beverage images Central Cues Review LengthReview Length Review ReadabilityReview Readability Self-image disclosure (Whether the reviewers disclose their real photo or not) Self-image disclosure (Whether the reviewers disclose their real photo or not) H1 H2 H3 H4 H5a H6a Restaurant Type (Casual dining VS. Fine dining) Restaurant Type (Casual dining VS. Fine dining) H5b H6b Hypothesis 1: As the number of words in a review text increases, a review’s usefulness increases. Hypothesis 2: As the readability of the review text increases, a review’s usefulness increases. (Baek et al., 2012; Korfiatis et al., 2012; Lui & Park, 2015; Mudanbi & Schuff, 2010; Racherla & Friske, 2012) Hypothesis 3: As the number of physical environment images in a review increases, a review’s usefulness increases. Hypothesis 4: As the number of food & beverage images in a review increases, a review’s usefulness increases. (Xu et al., 2015; Hong et al., 2004; Weather et al., 2007) Hypothesis 5a: Text formats (review length, review readability) of online travel reviews have stronger effects on review usefulness in a casual dining restaurant type than in a fine dining restaurant type. Hypothesis 5b: Image formats (physical environment images, food & beverage images) of online travel reviews have stronger effects on review usefulness in a casual dining restaurant type than in a fine dining restaurant type. (Kim & Moon , 2009; Xu et al., 2015) Hypothesis 6a: Text formats (review length, review readability) of online travel reviews have stronger effects on review usefulness without reviewer’s self-image disclosure than with it. Hypothesis 6b: Image formats (physical environment images, food & beverage images) of online travel reviews have stronger effects on review usefulness without reviewers’ self- image disclosure than with it. (Sirgy & Su, 2000; Xu et al., 2015)
- 14. ENTER 2016 Research Track Slide Number 14 Independent Variables Dependent Variables Textual cues Review Length Review Length Review Readability Review Readability Word count FRE, ARI, FOG, CLI Physical Environment images Physical Environment images Food imagesFood images Number of total images in total reviews Review Usefulness # of vote online users who voted that the reviews were useful in response to the reviews posted Using website ‘Readability-Score.com’ Manual Collection Web-Harvesting Web-Harvesting Imagery cues 5. Research Methodology_Data collection
- 15. ENTER 2016 Research Track Slide Number 15 5. Research Methodology_Data collection •Casual dining restaurants from ‘Yelp's Top 100 Places to Eat in the U.S.’ for 2015 because of their reliability and validity. •Fine dining restaurants from Michelin three stars located in New York City and the top-ranked restaurant on the first web page •1,323 reviews of casual dining restaurants(Cropper Top BBQ, Soho Japanese/ 1,306 reviews of fine dining restaurants for this research(Eleven Madison Park). • Data collection period: July 18 ~23, 2015
- 16. ENTER 2016 Research Track Slide Number 16 Descriptive statistics and comparison of means for subsamples Variable Casual Dining Restaurant (n=1,323) Fine Dining Restaurant (n=1,306) p-value Mean SD Mean SD Length 118.717 123.878 211.501 202.039 0.000*** ARI 4.036 2.713 6.046 3.129 0.000*** Physical Environment 0.150 0.709 0.425 4.108 0.017* Food &Beverage 0.963 2.818 1.491 8.553 0.034* Usefulness 1.297 3.223 1.809 3.443 0.000*** Self image Disclosure 0.534 0.499 0.547 0.498 0.502 6. Data Analysis
- 17. ENTER 2016 Research Track Slide Number 17 6. Data Analysis_ Hypothesis testing_Restaurant Type
- 18. ENTER 2016 Research Track Slide Number 18 6. Data Analysis_ Hypothesis testing_Self Image Disclosure
- 19. ENTER 2016 Research Track Slide Number 19 Peripheral Cues Review UsefulnessReview Usefulness Physical Environment images Physical Environment images Food & Beverage images Food & Beverage images Central Cues Review LengthReview Length Review ReadabilityReview Readability Self-image disclosure (Whether the reviewers disclose their real photo or not) Self-image disclosure (Whether the reviewers disclose their real photo or not) Restaurant Type (Casual dining VS. Fine dining) Restaurant Type (Casual dining VS. Fine dining) 7. Results 0.015*** 0.034*** 0.199*** 0.175*** - 0.011*** -1.618*** -0.699*** -0.041 0.001 0.044 -1.519*** -0.361***
- 20. ENTER 2016 Research Track Slide Number 20 8. Implications •To explore the effects of two presentation formats of OTRs affect perceived review usefulness from the perspective of ELM. •To assess not only text formats as central cus but also the peripheral image formats may contain enough information to guide decision-making for purchase tourism related products. •Restaurant type, the most important factor of restaurant choice, is a central cue which plays the moderator role in both central and peripheral cues’ impacts on review usefulness. • The moderating roles of restaurant type and reviewers’ self-image disclosure from the perspective of DINESCAPE. Theoretical Implications • Restaurant type as the most important factor of consumer attitude works differently. Review length and the images of restaurant experience of casual dining restaurant are more important to review usefulness than fine dining restaurant. • Restaurant managers and marketers should recognize the importance of image reviews and devote the greatest effort and resources to prepare high quality of food and environment. •Organizers of tourism review websites should stimulate reviewer to disclose his/her self-image and image format reviews. Practical Implications
- 21. ENTER 2016 Research Track Slide Number 21 9. Limitations • To focuse only on one type of business service, the restaurant business. • To overlooked that multi-aspects of review attributes such as real address and name, reviewers’ reputation, star rating, past experience etc. • To fail to reflect other customers’ opinion, who did not vote. Limitations
- 22. ENTER 2016 Research Track Slide Number 22 Thank you. Q&A
- 23. ENTER 2016 Research Track Slide Number 23 TripAdvisor announced “the results of TripBarometer”(2014)
- 24. ENTER 2016 Research Track Slide Number 24
- 25. ENTER 2016 Research Track Slide Number 25 Theoretical Background_2) ELM
- 26. ENTER 2016 Research Track Slide Number 26 Descriptive Statistics for full sample (n=2,629) Variable Min Max Mean std. variance Review Length 1 973 164.81 173.62 30142.67 ARI -20.9 23.1 5.03 3.09 9.58 Physical Environment 0 82 0.29 2.94 8.65 Food &Beverage 0 143 1.23 6.36 40.39 Review Usefulness 0 46 1.55 3.34 11.18 Self image Disclosure 0 1 0.54 0.50 0.25 6. Data Analysis
Editor's Notes
- In the smart tourism age, Online reviews are a very powerful source of information that has a major impact on consumer behaviour, consumer loyalty, and the entire purchasing process. Customers post their comments on the online review websites, such like triadvisor, yelp.com, amazon.com and so on. In here, we can check out The Importance of Online Reviews. Why Online Consumer Reviews Will be More Important in the future? At first, 85% of consumers will search the internet for online reviews of a product, service, hotel, restaurant, or attraction, before making a decision to purchase. Online reviews make consumers trust a local business more. And then, 79% of consumers trust online reviews. Most of Consumer think online reviews are trustworthy and fair. Especially, online reviews are considered an important factor in local small and medium size business. The major part of online consumer reviews is related with dining, lodging and shopping. And also, online reviews have an impact on consumers' purchasing attitude. 92% of consumers will use a local business if it has at least a 4-star rating. And, 86% of consumers will hesitate to purchase from a business that has negative online reviews.
- Online travel reviews allows Tourism businesses to have active, positive participation from tourists and gives consumers a main platform to create a relationship with small medium tourism businesses. For this reason, online reviews have created a new form of business and marketing which is identified on-demand economy and share economy platform. That‘s kind of uber, luxu city guide, and airbnb.
- From the prior research, we could find the research topic about online travel reviews and influential factors on consumer perception. Many studies have explored on various features and elements of online reviews to evaluate their influences on consumer perceptions. There are three dimensions of the factors that affect the review usefulness. First, from the review perspective, we can find Star Ratings, Review Valence, Review Length, Readability, Negative vs. Positive words as influential factors. But, from the past until now, Most of researchers have focused on textual aspects of online reviews. Another factors, reviewer Factors, It include Reviewers' Identity Disclosure(i.e., location, real name, real photo), Expertise, Reputation(number of reviews, friends, elite award) The last, Product Types(Experience vs. Search good) and Price level are also defined as important elements.
- 6▶You can see the summary of our research. Our research studies not only textual aspects but also imagery aspects of online travel reviews. The object of our study are to explore the different presentation formats affecting the review usefulness. Conventionally, textual aspects are proposed as the significant factors on review usefulness. Our research adds the imagery aspects from restaurant experience. DINESCAPE is the measurement to evaluate restaurant quality. Another object of the study is to investigate the moderating effects of restaurant type and reviewer’s self-image disclosure. In order to achieve research goal, we adopted the basis of Petty & Cacioppo’s Elaboration Likelihood Model (ELM). From here, textual aspects and restaurant types are defined as central cues of ELM. On the other hand, imagery aspects and self-image disclosure are defined as peripheral cues of ELM. I will explain ELM in detail, later.
- 7▶And the next page, I will present the Theoretical Background about Online Reviews. As I mentioned, from the previous study, we could fine the evaluation of textual aspects, kinds of review length, readability, negative or positive words count, on review usefulness or helpfulness. Conventionally, reviewer characteristics have been defined as important factors on information processing. It includes identity disclosure (kinds of location, real name, real photo image), reputation, expertise and so on. Recently, not only ‘review usefulness’ but also ‘review enjoyment’ are conducted to dependent variables. However, there are a few studies about other presentation formats. As you can see, Xu et al studied vedio-based reviews and proposed video formats have powerful impact on Review Credibility, Review Helpfulness, and Review Persuasiveness. In the meanwhile, the papers that researchers have studied image based reviews are rare. In order to fulfill this gap, we explored the relationship between textual and imagery reviews. From the prior research, Product characteristics and consumer characteristics are usually considered as moderator. In our study, we conducted restaurant type and reviewer’s self-image disclosure. Sales/Revenue, Firm responses, Credibility/Trust in review, New product adoption
- Second theory we used is elaboration likelihood model. The ELM is a general theory of attitude change. The ELM proposes two major routes to persuasion: the central route and the peripheral route. Under the central route, consumer have a high level of message elaboration in which a great amount of cognition. This can lead to permanent change in our attitude as we adopt and elaborate upon the speaker’s arguments. However, under the peripheral cues, we are generally unrelated to the logical quality of the stimulus. This can lead temporary attitude change.
- 8▶ Second theory we used is elaboration likelihood model. The ELM is a general theory of attitude change. The ELM proposes two major routes to persuasion: the central route and the peripheral route. Under the central route, consumer have a high level of message elaboration in which a great amount of cognition. This can lead to permanent change in our attitude as we adopt and elaborate upon the speaker’s arguments. However, under the peripheral cues, we are generally unrelated to the logical quality of the stimulus. This can lead temporary attitude change. In here, we distinguish that central cues are related High motivation and ability, Deep processing, Lasting change. However, peripheral cues are related Low motivation or ability , Superficial processing, Focused on the surface features, Temporary change. Hence, several scholars have investigated information processes employing the ELM for the theoretical background of the online reviews framework. (Baek et al., 2012; Park & Kim, 2008; Sher & Lee, 2009; Xu et al., 2015; Zhang et al., 2010b For example, Central Cues as Word Count, Negative word %, Peripheral Cues as Star Rating, Reviewer’s reputation, Real Name.
- 9▶ Now, you can see online review sample from yelp.com We considered reviewer characteristics and attributes of imagery review as peripheral cues and then considered attributes of textual review as central cues. Perceived usefulness is defined as dependent variables.
- 10▶The third theory, I will explain is about restaurant experience. Restaurant type is an essential factor to influence the customers dining experience and information searching according to their dining motivation. This is closely related to the price of products or services. Normally, we can distinguish fine dining and casual dining restaurant. Fine dining restaurant has high quality food and luxurious environment. We should pay more than casual dining restaurant. Food is most important features to measure restaurant level and quality. Several researchers investigated the moderating role of restaurant type (i.e., casual vs. fine dining) with customers’ response to the DINESCAPE. DINESCAPE framework has been employed to measure restaurant customers’ perception of the physical environment. This includes aesthetics, lighting, ambience, layout, dining equipment, and employees. Several researchers have studied the impact of food and physical environment quality. Also, they have examined restaurant type as the possibility of a moderator. Therefore, we explored the impacts of Restaurant type(fine dining vs. casual dining) as a moderator and conducted the images of food and beverage and physical environment as independent variables.
- 11▶ Now, I am telling about Operationalization of variables. Review Length is the number of total words in each review Review Readability is the degree of comprehensibility in each review and the ARI readability index was measured in this research Physical Environment Images is the number of images representing the facility aesthetics, layout, table settings, and service staff in each review Food & Beverage Images is the number of images representing the food or drink that cooked and offered by restaurant Self-image disclosure is whether or not the reviewers of each review disclose their real photo which is clear enough to identify their faces Casual Dining Restaurants is the restaurants with a casual atmosphere and customers pay moderate price at $15 Fine Dining Restaurants is the restaurants with an elegant, luxurious atmosphere and customers pay a relatively high price at $50.
- 11▶ Based on the explain about theory we used, Obviously, our research model looks like this. There are 8 hypotheses of the model. As a general agreement, several researchers asserted that review rating, review length, review readability are significant factors to impact on review usefulness. (Baek et al., 2012; Korfiatis et al., 2012; Lui & Park, 2015; Mudanbi & Schuff, 2010; Racherla & Friske, 2012) Thus, we consider the effects of review length, review readability the central cues on review usefulness in the following hypotheses. (클릭) Several research findings showed that visual presentation with peripheral cues can be more attractive and persuasive (Hong et al., 2004 Weather et al., 2007). Thus, we consider the effects of the number of images food& beverage and physical environment on review usefulness. (클릭) The next hypotheses is to assess the moderating role of restaurant type and self-image disclosure. (클릭) Kim & Moon (2009) investigated the moderating role of restaurant type (i.e., casual vs. fine dining) with customers’ response to the servicescape. All of independent variables of online travel reviews have stronger effects on review usefulness in a casual dining restaurant type than in a fine dining restaurant type. Sirgy & Su (2000) found that self-image is a salient factor of traveller satisfaction with the destination. They suggested that social self-image was matched between the store and the patron’s image. Personal and environmental factors tend to moderate the strength and direction on purchase behaviour. All of independent variables of online travel reviews have stronger effects on review without reviewers’ self-image disclosure than with it.
- 13▶ As you see, we used both web harvesting and manual operation for data collection. Review length, readability and useful votes are collected through web harvesting and then measure this by using Readability-Score.com. However, images of food& beverage, physical environment and self-image disclosure were collected through hand manual operation.
- 1,323 reviews of casual dining restaurants were collected from the top two restaurants from ‘Yelp's Top 100 Places to Eat in the U.S for 2015'. 1,306 reviews of fine dining restaurants were collected from Michelin three stars located in New York City.
- 17▶ This is the general statistics of analysis. I wouldn’t like to explain in detail about this because of time.
- 18▶ As you can see here, there are the formula of regression. We executed the simple regression with each independent variable alone to see the main effects of independent variables. In addition, the stepwise regression analysis was executed. As a results, we confirmed that central and peripheral cues have a positive effect on review usefulness supporting the H1, H2, H3 and H4 in Table 2. In addition, we analysed interaction term to test moderator effects. First, the results of moderator effects of restaurant type showed that all of the interaction term excluding the ARI showed significant level at p<0.001. So, the review length, physical environment images and food & beverage images have more positive effects on review usefulness for casual dining restaurants partially supporting H5a and H5b.
- 19▶ In addition, the results of moderator effects of real photo showed that the only interaction term of peripheral cues (i.e., physical environments, food & beverage images) was significant. It means that if reviewers disclose their faces, the effects of physical environment images and food & beverage images on review usefulness were lessened. The results supported H6b that the self-image disclosure moderates the effect of physical environment images and food & beverage images on review usefulness respectively. However, review length and readability did not appear the moderating effect.
- this study could fill the gap to an extent hospitality marketing studies All the factors of independent, excepting for review readability, have stronger effects on review usefulness in the casual dining restaurant than in the fine dining restaurant.
- this study could fill the gap to an extent hospitality marketing studies All the factors of independent, excepting for review readability, have stronger effects on review usefulness in the casual dining restaurant than in the fine dining restaurant. it is needed to design a survey or experimental research to overcome this limitation in future research.
- this study could fill the gap to an extent hospitality marketing studies All the factors of independent, excepting for review readability, have stronger effects on review usefulness in the casual dining restaurant than in the fine dining restaurant. it is needed to design a survey or experimental research to overcome this limitation in future research.
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