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Marketing Commons

Open Access. Powered by Scholars. Published by Universities.®

Social and Behavioral Sciences

2014

Dartmouth Scholarship

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Promotional Reviews: An Empirical Investigation Of Online Review Manipulation, Dina Mayzlin, Yaniv Dover, Judith Chevalier Aug 2014

Promotional Reviews: An Empirical Investigation Of Online Review Manipulation, Dina Mayzlin, Yaniv Dover, Judith Chevalier

Dartmouth Scholarship

Firms' incentives to manufacture biased user reviews impede review usefulness. We examine the differences in reviews for a given hotel between two sites: Expedia.com (only a customer can post a review) and TripAdvisor.com (anyone can post). We argue that the net gains from promotional reviewing are highest for independent hotels with single-unit owners and lowest for branded chain hotels with multi-unit owners. We demonstrate that the hotel neighbors of hotels with a high incentive to fake have more negative reviews on TripAdvisor relative to Expedia; hotels with a high incentive to fake have more positive reviews on TripAdvisor relative to …