Abstract
Purpose: This paper focuses on the effects of positive and negative online reviews (eWOM) on the metrics of consumer-based brand equity (CBBE) in the context of the Polish restaurant sector. Methodology: The dedicated online survey was completed by 777 consumers, which we then analyzed with structural equation modeling. Each catering outlet was to allow to order meals online. We used descriptive analysis, confirmatory factor analysis, and path analysis to test the hypotheses. Findings: The findings suggest that positive online reviews affect each CBBE variable in the online catering outlet’s context. In the case of known catering establishment’s offering in the option of placing orders via online platforms, negative eWOM only affects the perceived quality and brand loyalty. However, it does not change brand awareness and brand association. Implications: This paper contributes to the body of literature on eWOM, which to date offers very little understanding of the topic of positive and negative online reviews and CBBE dimensions. Moreover, in terms of practical and managerial applications, this study can be used to delineate strategy in terms of management of eWOM to optimize brand strategies.
Highlights
The exponential growth of social media and use of applications on smart-devices lead consumers to share their post-purchase evaluation of any products or services online
To validate the conceptual model we proposed, we included all independent and depen dent latent variables in one multi-factorial confirmatory model (CFA) in Mplus 7.2 software with a robust maximum-likelihood estimation method (MLR)
The objective of this study was to identify the effects of both positive and negative online reviews on the metrics of consumer-based brand equity (CBBE) in the Polish restaurant industry, in which restaurants are a primary context for the current study
Summary
The exponential growth of social media and use of applications on smart-devices lead consumers to share their post-purchase evaluation of any products or services online. This type of behavior is known in the marketing literature as online reviews or electronic word-of-mouth (eWOM; Zhang et al, 2010). Positive eWOM drives positive attitude towards the product (Tata, Prashar and Gupta, 2019) and – in the services context – is known for raising the number of orders (Zhang et al, 2019), enhancing sales and revenue (Xiao, Zhang and Fu, 2019; Nieto-Garcia et al, 2019; Craig, Greene and Versaci, 2015). Negative online customers’ reviews increase the perceived risk of inferior product or service quality (Bhandari and Rodgers, 2018; Lee, Rodgers, and Kim, 2009), lower the credibility and equity of the brand (El-Baz, Elseidi and El-Maniaway, 2018; Yu et al, 2018), reducing the volume of sales (Zhang et al, 2019; Clemons, 2019; Craig, Greene and Versaci, 2015)
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