Impacts of WeChat on Millennials’ Perceptions and Consumption Behaviors in the Hotel Industry

Social media, known as interactive Web 2.0 Internet-based applications, has deeply changed and reformed interpersonal communication and business operation with the wide spread of Internet and the development of technology. In the past few years, since mobile apps are becoming more and more popular, the access of social media is not limited to tablet computers only, but is also available for almost all kinds of smart phone devices, such as iPhone, Android, Symbian and so on. The function of social media is not confined to real- time message transmission or information sharing any more. It has expanded to a widely range of features, such as online purchase and payment, e-commerce business, and service for different types of social events. Social media plays an increasingly important role in daily personal life as well as in business activities. People are not merely considered as social media users, but also the component of social media itself. As a result, it is very crucial for people to realize the importance and impacts of social media, especially for those business operators. WeChat (Weixin in Chinses, literally “micro message”) is a cross-platform instant text and voice messaging communication service for multiple mobile devices, developed by Tecent in China, first released in the January of 2011. It is claimed to provide “the new way to connect” and create “a way of life”. It is free to download, install and register, and support all kinds of smart phone platforms with multiple language versions, such as Chinese, English, Japanese, French, and Spanish. WeChat provides its users different ways to communicate and interact with friends innovatively through instant text messaging, hold-to-talk voice messaging, group messaging, lively video sharing, location sharing, money transferring, and contact information sharing. Among all the WeChat users, Millennials is the majority. With the growing-up of Millennials, they are becoming more and more powerful and important to the society and will be the next target segmentation for most of the industries in the very near future. Especially for the hotel industry, the industry that urges to attract Millennials patrons for further substantial development, how to attract Millennials is becoming a critical issue for those hotel operators

An Economist's Guide to Digital Music

In this guide, we discuss the impact of digitalization on the music industry. We rely on market and survey data at the international level as well as expert statements from the industry. The guide investigates recent developments in legal and technological protection of digital music and describes new business models as well as consumers' attitude towards music downloads. We conclude the guide by a discussion of the evolution of the music industry

On the motivating impact of price and online recommendations at the point of online purchase

This is the post-print version of the Article. The official published version can be accessed from the link below - Copyright @ 2011 ElsevierDo online recommendations have the same motivating impact as price at the point of online purchase? The results (n = 268) of an conjoint study show that: (1) when the price is low or high relatively to market price, it has the strongest impact (positive and negative) on the likelihood of an online purchase of an mp3 player, (2) when the price is average to market price, online recommendation and price are equal in their impact at the point of online purchase, and, (3) the relative impact from price increases when online shopping frequencies increases. The implications these results give are that online retailers should be aware that online recommendations are not as influential as a good offer when consumers purchase electronics online. However, other customer recommendations have a stronger impact on novice online shoppers than towards those consumers that shop more frequently online

The facilitating role of review ratings on online consumer review processing : the moderating role of susceptibility to interpersonal influence and perceived risk

Online consumer reviews have become popular sources for acquiring product-related information. However, an excessive number of reviews create eWOM overload, thus a system that can efficiently sort helpful reviews, so prospective customers can make informed decision more easily, is an obvious solution. Numeric cues, such as star ratings, are perceived to be valuable, but consumers’ evaluation of the review and the reviewed product has been understudied. In fact, it is unclear how consumers process numeric cues as parts of online product information. Therefore, this study investigated the potential of numeric review cues, particularly star ratings, to determine how consumers process numeric reviews in relation to their evaluation of review quality and in relation to their decision-making process. The main premise of this study is that consumers systematically process product information online via peer consumer reviews, and consumers’ dependency on reviews depends on their susceptibility to interpersonal influence and the perceived risk inherent in the product purchase. Two experiments were conducted to test this premise, and the experiments found that the degree of consumers’ susceptibility to interpersonal influence which acted as a moderator of the valence of star rating effects has a significant impact on consumers’ evaluations of online consumer reviews and the reviewed product. In addition, the findings highlighted the significant role peer consumers’ star ratings can play in product purchase decisions. Moreover, the study identified the role susceptibility to interpersonal influence had in an online shopping environment.Advertisin

THE RELATIONSHIP BETWEEN ONLINE RATING, HOTEL STAR CATEGORY AND ROOM PRICING POWER

In the digital way of doing business we see a substantial rise of online customer feedback and customer information sharing communities. The role and importance of social media has considerably increased in the past several years and businesses can no longer overlook its impact. For companies, the acceptance of such sources are not only tangential rather they are becoming central in how they approach their operations. Numerous web based platforms that include social networking, online communities and review sites are critical reference points for companies while deciding how to structure and price their products and services. The tourism and hospitality industry is no exception to this phenomenon, as a matter of fact, it is at the very forefront of this new trend that we are observing. Some of these sites are more popular than others, such as TripAdvisor, Booking.com, Travelocity or Expedia but all of them affect how service providers conduct their business, specifically in the area of pricing. The aim of this paper is to examine and quantify the relationship between customer online rating, hotel category and room pricing power in hotel industry. Findings suggest that there is a statistically significant relationship between hotel star category, online rating and service provider’s room pricing power. Moreover, results indicate a strong correlation between TripAdvisor and Booking.com online customer reviews, suggesting that contrary to popular beliefs, TripAdvisor is as reliable as Booking.com

Do Consumers Trust Online Product Reviews? An Experimental Study of Biases in Online Product Reviews

Previous studies have identified the impact of self-selection biases in online product reviews on consumer surplus. However, no empirical study has studied whether consumers trust online reviews, especially when credibility of reviews is susceptible to be jeopardized by self-selection biases. This study investigates how the existence of different types of self-selection biases in online product reviews influences consumers’ intentions to purchase products and post reviews. A 4×2 randomized experiment was conducted to examine the role of two self-selection biases (under-reporting and purchasing biases). Results indicate that subjects exposed to online product reviews that suffer from under-reporting bias and purchasing bias have a significantly lower intention to purchase a product and post a review. Because consumers are not able to fully correct the self-selection biases in online product reviews, this study calls for the need to overcome self-selection biases and formulate strategies to help consumers trust online product reviews

An Economist’s Guide to Digital Music

In this guide, we discuss the impact of digitalization on the music industry. We rely on market and survey data at the international level as well as expert statements from the industry. The guide investigates recent developments in legal and technological protection of digital music and describes new business models as well as consumers' attitude towards music downloads and audio-streaming. We conclude the guide by a discussion of the evolution of the music industry.music, internet, file-sharing, peer-to-peer, piracy, digital rights management, copyright, e-commerce

Asymmetric effects of online consumer reviews

Consumers tend to seek heuristic information cues to simplify the amount of information involved in tourist decisions. Accordingly, star ratings in online reviews are a critical heuristic element of the perceived evaluation of online consumer information. The objective of this article is to assess the effect of review ratings on usefulness and enjoyment. The empirical application is carried out on a sample of 5,090 reviews of 45 restaurants in London and New York. The results show that people perceive extreme ratings (positive or negative) as more useful and enjoyable than moderate ratings, giving rise to a U-shaped line, with asymmetric effects: the size of the effect of online reviews depends on whether they are positive or negative