Online reviews towards reducing risk

Abstract

PurposeThis paper aims to examine the impact of online reviews on behavioral intentions via perceived risk. Perceived risk is both analytical and emotional. Stimulus–organism–response (S–O–R) framework guided this study to explore the interaction between online reviews, perceived risk and behavioral intentions.Design/methodology/approachThe conceptual model proposed in this research has been validated using confirmatory factor analysis (CFA) and structural equation modeling to assess the measurement model and the validity of the scale, based on primary responses collected from 473 travelers.FindingsFindings of this study suggest the role of online consumer reviews in reducing the perceived risk associated with experience dominant services like tourism. Process model test proves the mediating role of perceived risk between online reviews and behavioral intentions. Results indicate the significance of online review in lowering the perceived risk leading to positive behavioral intentions.Practical implicationsDestination marketing organizations (DMOs) should understand the role of online reviews in effectively reducing risk and uncertainty, thereby influencing behavioral intentions.Originality/valueThis paper is unique in attempting to empirically examine the mediating role of perceived risk between online reviews and behavioral intentions. The study is a forerunner in using S–O–R framework to test the interaction between online review, perceived risk and behavioral intention.