How Electronic Word of Mouth Matters in Peer-to-Peer Accommodation: The Role of Price and Responsiveness. Issue 2 (3rd April 2022)

• Record Type: Journal Article
• Authors: Liu, Fuzhen; Lai, Kee-hung; Wu, Jiang; Luo, Xin (Robert)
• Is Part Of: International journal of electronic commerce. Volume 26:Issue 2(2022)
• Page Start: 174
• Page End: 199
• Publication Date: 2022-04-03
• Subjects: P2P accommodation -- eWOM -- signaling theory -- trust transfer -- online sales performance -- peer-to-peer e-commerce -- sharing economy; Electronic commerce -- Periodicals; Electronic commerce; Periodicals; Electronic journals; 381.14205
• DOI: 10.1080/10864415.2022.2050581
• Languages: English
• ISSNs: 1086-4415

Abstract

ABSTRACT: Under information asymmetry, electronic word of mouth (eWOM) is crucial to understanding customer experience in peer-to-peer (P2P) accommodation. However, the topics of what dimensions are included in eWOM and how these dimensions determine sales performance from a contingency perspective remain starkly underinvestigated. Drawing upon trust transfer theory and signaling theory, we identify two eWOM dimensions (i.e., listing-based eWOM and host-based eWOM) and examine their interactions with price and responsiveness on sales performance. Using objective data from Xiaozhu.com, a leading accommodation-sharing platform in China, we apply machine learning algorithms and economic analysis to illustrate customer behavior. Our results indicate that the valence of listing-based eWOM and that of host-based eWOM are positively associated with sales performance. Compared with listing-based eWOM, host-based eWOM exerts a more decisive influence on sales performance. Notably, the relationship between the valence of listing-based eWOM (host-based eWOM) and sales performance is weakened (strengthened) by listing price (host's responsiveness). These findings provide helpful managerial insights for service strategies and policy actions to improve the accommodation-sharing economy.