Abstract
ABSTRACT This paper investigates price and regional effects on the word-of-mouth (WOM) valence and sales in the food delivery sector. Using 56,939 food delivery merchants’ data from a food delivery giant in China, our results show that the impact of price on WOM valence is significantly positive, while the regional effect is negative. And the price effect varies according to consumers’ preferences. Price threshold is determined as 53 Yuan and 100 Yuan to examine the impact on valence and sales, respectively. This suggests that in the food delivery sector, price and regional factors have different effects on merchants’ WOM valence and sales.
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