The Effect Of Online Customer Review On Booking Decision Of Customers The Case Of Selected Hotels In Debre Zeit
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Date
2020-06
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Addis Ababa University
Abstract
Online customer review has become a serious issue among scholars in the hotel industry. This arises due to the fact that operators of the industry still find it difficult to understand how online customer review affect booking decision of customers. The purpose of this study is to assess the impact of online customer review on booking decision of customers. The study used four online review practices by the researcher which are Valence of review, Average rating, Management Response and hotel attributes. As a foundation for questionnaire development each model and additional dimension was used. However, the items were deducted and modified after conducting pilot study to suit to the specific features of a hotel setting. The study was conducted in Debre Zeit with the participation of two selected four and five star hotels (pyramid Resort and spa and Kuriftu Resort and spa) respectively, because they are considered as tourist destination areas, easily accessible and the helpfulness of the management for the study. A total of 320 questionnaires were distributed to the resorts customers, out of whom 265 questionnaires were returned and used for a comprehensive empirical analysis. Inferential statistics have been used to answer research questions and to investigate research problems. It was identified that the four online review practice are found critical to measure booking decision of customers. The result of correlation analysis revealed that all online review practices are correlated with overall booking decision of the customers. From the regression result it has been found that three of the online review practice which are (average rating, management response and hotel attributes) have positive significant impact on booking decision. Moreover, customers have opposite perception towards the first practice (valence of review) believed that valence of reviews has a positive impact on booing decision. Thus, resorts operators must continuously provide more interactive service standards by using online customers review dimensions as measuring booking decision of customers
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Keywords
e-WOM, Booking Decision, Resort