Aggregate consumer ratings and booking intention: the role of brand image

Abstract

The very nature of tourist services implies that consumers consider all available cues when making hotel bookings. Information obtained via the Internet is an especially important cue, and the findings of numerous studies highlight the importance of peer-generated information – electronic word-of-mouth (eWOM) – in consumers’ decision-making processes. Along with eWOM, however, traditional marketing signals such as brand image and price still affect consumer behaviour. Thus, this study analyses the effect of eWOM (i.e. global hotel ratings) on purchase intention, considering the role of brand image. Two online scenario-based experiments designed using real information from TripAdvisor were conducted. The final sample comprised 260 participants. Variation in hotel ratings modified consumers’ purchase intentions, with brand image playing a significant role in this relationship. The effect of eWOM on consumer purchase intentions was higher (lower) for hotels with a poorer (better) brand image. The results of the analysis imply that price can potentially help to prevent the negative effect of poor ratings.