Podcast
Questions and Answers
What does the term 'discontinuity' refer to in the context of rating responses?
What does the term 'discontinuity' refer to in the context of rating responses?
- A gradual increase in ratings over time
- An unexpected change in the pattern of ratings (correct)
- A uniform distribution of ratings across different cities
- A steady decline in the number of ratings
How might similar demand affect ratings generated in different cities?
How might similar demand affect ratings generated in different cities?
- It can create significant disparities in ratings due to local preferences. (correct)
- It ensures all cities will have identical ratings.
- It leads to a consistent increase in ratings across all locations.
- It diminishes the value of ratings as they become irrelevant.
What can be inferred about Yelp ratings based on manipulation?
What can be inferred about Yelp ratings based on manipulation?
- Manipulation can distort the genuine representation of customer satisfaction. (correct)
- Manipulation enhances the credibility of ratings.
- Manipulation has no effect on the outcomes of ratings.
- Manipulation is exclusively used to decrease ratings unfairly.
What role do ratings play in consumer decision-making?
What role do ratings play in consumer decision-making?
What consequence might an increase in manipulative rating strategies have?
What consequence might an increase in manipulative rating strategies have?
What factor is primarily being analyzed in relation to online reputation management?
What factor is primarily being analyzed in relation to online reputation management?
Which platforms are specifically mentioned as being affected by reviews?
Which platforms are specifically mentioned as being affected by reviews?
What is the role of user reputation in the context provided?
What is the role of user reputation in the context provided?
What type of response is being studied in relation to reviews?
What type of response is being studied in relation to reviews?
What does the acronym RDD stand for in this context?
What does the acronym RDD stand for in this context?
How do sellers typically react to negative reviews according to the provided content?
How do sellers typically react to negative reviews according to the provided content?
What type of growth is attributed to the influence of online reviews?
What type of growth is attributed to the influence of online reviews?
What aspect of consumer interaction is highlighted in this context?
What aspect of consumer interaction is highlighted in this context?
What is one factor that may affect a hotel's reputation according to the reviews data?
What is one factor that may affect a hotel's reputation according to the reviews data?
In a situation where consumer reviews are manipulated, which of the following outcomes can be expected?
In a situation where consumer reviews are manipulated, which of the following outcomes can be expected?
What role does the review rating play in comparison with competitor brands?
What role does the review rating play in comparison with competitor brands?
When evaluating TripAdvisor versus Expedia, what aspect might influence consumer behavior?
When evaluating TripAdvisor versus Expedia, what aspect might influence consumer behavior?
Which hotel rating difference is suggested to impact consumer perception?
Which hotel rating difference is suggested to impact consumer perception?
What is the purpose of using control in the treatment groups during the review manipulation study?
What is the purpose of using control in the treatment groups during the review manipulation study?
How does the timing of reviews affect the overall hotel rating?
How does the timing of reviews affect the overall hotel rating?
What could be a result of hotels adopting review manipulation tactics?
What could be a result of hotels adopting review manipulation tactics?
What percentage difference was observed among different hotel groups in the study?
What percentage difference was observed among different hotel groups in the study?
What could incentivized reviews lead to in the hospitality industry?
What could incentivized reviews lead to in the hospitality industry?
What factor influences consumer trust in hotel reviews?
What factor influences consumer trust in hotel reviews?
Which recent issue has been highlighted regarding consumer reviews?
Which recent issue has been highlighted regarding consumer reviews?
How have review platforms evolved in recent years?
How have review platforms evolved in recent years?
What is one of the consequences of the rise in fake reviews?
What is one of the consequences of the rise in fake reviews?
What characteristic is commonly associated with genuine hotel reviews?
What characteristic is commonly associated with genuine hotel reviews?
What can negatively impact a consumer's perception of a hotel?
What can negatively impact a consumer's perception of a hotel?
What is a suggested outcome of consumers exposing fake reviews?
What is a suggested outcome of consumers exposing fake reviews?
Which scenario can cause confusion among consumers regarding hotel ratings?
Which scenario can cause confusion among consumers regarding hotel ratings?
What should consumers be wary of according to recent studies on reviews?
What should consumers be wary of according to recent studies on reviews?
In what way can consumer behavior change due to concerns about reviews?
In what way can consumer behavior change due to concerns about reviews?
What is the primary focus of the content provided?
What is the primary focus of the content provided?
Which method is indicated as a way to address the issue of mistrust in online reviews?
Which method is indicated as a way to address the issue of mistrust in online reviews?
How do higher ratings influence the outcome for online platforms according to the information given?
How do higher ratings influence the outcome for online platforms according to the information given?
What is a potential drawback of online reviews identified in the content?
What is a potential drawback of online reviews identified in the content?
What do 'observational characteristics' refer to in the context of reviews?
What do 'observational characteristics' refer to in the context of reviews?
What does the term 'Omitted Variable Bias' imply in the context of revenue studies?
What does the term 'Omitted Variable Bias' imply in the context of revenue studies?
What is suggested to happen after the recruitment of fake reviews stops?
What is suggested to happen after the recruitment of fake reviews stops?
What might the 'hard choices' refer to in managing online reviews?
What might the 'hard choices' refer to in managing online reviews?
What does the content suggest is a significant factor in the decline of revenue related to restaurant reviews?
What does the content suggest is a significant factor in the decline of revenue related to restaurant reviews?
Which outcome is mentioned as a reason for analyzing the 'control units' in experiments?
Which outcome is mentioned as a reason for analyzing the 'control units' in experiments?
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Study Notes
Online Reputation Management
- Businesses are increasingly reliant on online reputation to attract customers.
- The effectiveness of online reputation management for companies is being questioned.
- The impact of online reviews on sales is a complex topic and needs to be studied more thoroughly.
Impact of Online Reviews on Sales
- The author investigates the effect of online reviews on hotel sales.
- Reviews are not always genuine, and some customers may be incentivized to write reviews to inflate a business's rating.
- The study focuses on the impact of fake reviews on hotel revenue.
- The author uses a natural experiment to isolate the impact of fake reviews.
Data and Methodology
- The study uses hotel data from TripAdvisor and Expedia.
- The author compares the revenue generated from hotels that have been subjected to fake reviews to that of hotels without fake reviews.
- The study looks at this change in revenue before, during, and after the fake review intervention.
- The key assumption is that the different groups of hotels are comparable, which means that an intervention of fake reviews should be the only thing driving the change in revenue.
Natural Experiment Design
- The study uses a natural experiment to study the impact of fake reviews on performance.
- This involves a control group and a treatment group.
- Control Group: This group is a set of hotels that did not receive any fake reviews.
- Treatment Group: This group is a set of hotels that received fake reviews.
Study Results
- Fake reviews have a significant impact on hotel revenue.
- Hotels with fake reviews saw a decrease in revenue compared to hotels without fake reviews.
- The impact of fake reviews is most pronounced in the days following the intervention.
- The impact decreased over time.
Findings and Implications
- The study provides strong evidence of the negative impact of fake reviews on revenue.
- The results provide insight into what businesses should do to manage their online reputation in a way that is beneficial for customers.
- Businesses should be wary of reviews and monitor their overall online reputation.
- Customers may eventually become suspicious of reviews if a venue is consistently lauded with glowing reviews.
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