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- Title
Should businesses keep consistent performance between channels? Empirical evidence from the impact of rating discrepancy on demand.
- Authors
Yan, Nina; Xu, Xun; Tong, Tingting
- Abstract
Consumers often search for and compare the online and offline performance of businesses, indicated by consumer ratings, before they make purchases. In this study, using empirical evidence from the restaurant industry, we examine the impact of consumer rating discrepancy between online and offline channels on online demand. We find that channel rating discrepancy for overall performance, products, and services negatively affects online demand. In addition, higher prices amplify the negative effect of channel rating discrepancy on consumer online purchase behavior. The negative discrepancy effect has heterogeneity that depends on the business's properties (i.e., chain vs. independent). Our findings suggest that companies should take an integrated approach to make cross‐channel performance consistent. With consistent performance, companies can have a better overall performance that will attract consumer demand.
- Subjects
CONSUMER behavior; CONSUMPTION (Economics); ORGANIZATIONAL performance; PURCHASING; BUSINESS enterprises
- Publication
Decision Sciences, 2022, Vol 53, Issue 2, p260
- ISSN
0011-7315
- Publication type
Article
- DOI
10.1111/deci.12508