Exploring Importance of Onnlin;e Review on Price

  • Paul D. Berger Bentley University
  • Prim Bentley University
  • Eve Bentley University
  • Muhammad Bentley University

Abstract

This paper considers the importance of online reviews and their effects on different parameters of a business’ product or service. We use Airbnb as our source of data and tested customer reviews and other variables within the business to determine their influence on Airbnb’s price. We performed our study primarily by using stepwise regression analyses. The results of our analysis are potentially helpful for businesses to develop their marketing and pricing strategies based on how significant variables are.

 

Keywords: Airbnb, number of reviews, overall satisfaction score, stepwise regression analysis, pricing strategy

Author Biography

Paul D. Berger, Bentley University
Visiting Scholar and Professor of Marketing

References

Airbnb. (2019). About us. Retrieved from https://news.airbnb.com/en-in/about-us/.

Askalidis, Georgios & Malthouse, Edward. (2016). The Value of Online Customer Reviews. ACM Conference on Recommender Systems (RecSys16), Boston, MA 10.1145/2959100.2959181.

Kostyra, D. S., Reiner, J., Natter, M., & Klapper, D. (2016). Decomposing the effects of online customer reviews on brand, price, and product attributes. International Journal of Research in Marketing, 33(1), 11–26. doi: 10.1016/j.ijresmar.2014.12.004

Lee, Eun-Ju & Shin, Soo Yun. (2014). When do consumers buy online product reviews? Effects of review quality, product type, and reviewer’s photo. Computers in Human Behavior. 31. 356–366. 10.1016/j.chb.2013.10.050.

Maslowska, E., Malthouse, E. and T. Collinger (2016). The Customer Engagement Ecosystem. Journal of Marketing Management, 32(5–6), 469–501.
Published
2020-01-28