Abstract
ABSTRACTThe influence of online word-of-mouth (WOM) on risk assessments for an experience good, in the presence of different price acceptability levels, was examined through 12 online experiments using potential travelers presented with realistic information settings. Online WOM was found more influential than advertised price as a cue to risk perceptions. The perceived risk level was raised when positive and negative online WOM were present compared with when WOM was either absent or positive only. The negative effect of inconsistent online WOM on consumers' risk perceptions was found in all price conditions.
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