The business case for investing in online reputation has received increasing scrutiny in recent years. This study identifies the business value of consumer reviews and management responses to hotel performance. We present a panel data analysis of online consumer reviews and management responses of 843 hotels on a hotel review website. The results show that overall rating, attribute ratings of purchase value, location and cleanliness, variation and volume of consumer reviews, and the number of management responses are significantly associated with hotel performance. In addition, variation and volume of consumer reviews moderate the relationship between overall rating and hotel performance. Management responses, together with variation and volume of consumer reviews, moderate the relationship between certain attribute ratings and hotel performance. Implications of utilizing consumer reviews and management responses to leverage hotel business are provided. (C) 2014 Elsevier Ltd. All rights reserved.
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Indian Inst Technol Kharagpur, Dept Ind & Syst Engn, Kharagpur, W Bengal, IndiaIndian Inst Technol Kharagpur, Dept Ind & Syst Engn, Kharagpur, W Bengal, India
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Univ York, York Management Sch, Freboys Lane, York YO10 5GD, N Yorkshire, EnglandUniv York, York Management Sch, Freboys Lane, York YO10 5GD, N Yorkshire, England
Banerjee, Snehasish
Chua, Alton Y. K.
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Nanyang Technol Univ, Wee Kim Wee Sch Commun & Informat, 31 Nanyang Link, Singapore 637718, SingaporeUniv York, York Management Sch, Freboys Lane, York YO10 5GD, N Yorkshire, England
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Calif State Univ Stanislaus, Coll Business Adm, Dept Management Operat & Mkt, One Univ Circle, Turlock, CA 95382 USACalif State Univ Stanislaus, Coll Business Adm, Dept Management Operat & Mkt, One Univ Circle, Turlock, CA 95382 USA
Xu, Xun
Wang, Xuequn
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Murdoch Univ, Sch Engn & Informat Technol, 90 South St, Murdoch, WA 6150, AustraliaCalif State Univ Stanislaus, Coll Business Adm, Dept Management Operat & Mkt, One Univ Circle, Turlock, CA 95382 USA
Wang, Xuequn
Li, Yibai
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Univ Scranton, Kania Sch Management, Operat & Informat Management Dept, Brennan Hall 322, Scranton, PA 18510 USACalif State Univ Stanislaus, Coll Business Adm, Dept Management Operat & Mkt, One Univ Circle, Turlock, CA 95382 USA
Li, Yibai
Haghighi, Mohammad
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Univ Tehran, Fac Management, Tehran, IranCalif State Univ Stanislaus, Coll Business Adm, Dept Management Operat & Mkt, One Univ Circle, Turlock, CA 95382 USA
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Univ Wisconsin, Dept Accounting & Finance, Eau Claire, WI 54701 USA
Singapore Management Univ, Sch Informat Syst, Singapore, SingaporeUniv Wisconsin, Dept Accounting & Finance, Eau Claire, WI 54701 USA
Hu, Nan
Liu, Ling
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Univ Wisconsin, Dept Accounting & Finance, Eau Claire, WI 54701 USAUniv Wisconsin, Dept Accounting & Finance, Eau Claire, WI 54701 USA
Liu, Ling
Sambamurthy, Vallabh
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Michigan State Univ, Coll Business, Ctr Leadership Digital Enterprise Eli Broad, E Lansing, MI 48824 USAUniv Wisconsin, Dept Accounting & Finance, Eau Claire, WI 54701 USA