Dealing with poor online ratings in the hospitality service industry: The mitigating power of corporate social responsibility activities

Abstract

Hospitality service providers' reputation and sales can be strongly damaged by low ratings on platforms such as Tripadvisor, Booking, or Yelp. In this research, we investigate how the potential damaging effects of poor ratings of a hospitality service providers' can be mitigated by corporate social responsibility (CSR) activities. Building on the self-affirmation theory, we suggest and provide evidence for the notion that CSR (vs. non-CSR) cues affect more positively guests’ evaluation of a service provider when online ratings are low. When the ratings increase, CSR cues are not better than other cues to improve evaluations. Further, we detail the underlying mechanism whereby guests allocate more weight to CSR (vs. non-CSR) cues when they form an evaluation of a low-rated (vs. higher-rated) service provider, which increases the warm-glow feelings that they anticipate and, eventually, their evaluation. We test our model with two experiments on two different samples (US and European), involving different CSR cues (environmental and social) and different types of service provider (hotel and restaurant). We then discuss the theoretical and managerial implications of our research for hospitality professionals, as well as for policy makers.