How online review and rating systems affect online consumer buying behavior in the hotel industry

The purpose of this study was to examine the effects of online review and rating systems on online consumer behavior in the hotel industry. This research study focused on answering three questions: (1) how each components of eWOMS affect online consumers' perception of valence, diagnosticity, information quality, informational trust, and source credibility in the hotel industry?; (2) which factors affect online consumers' attitude toward the eWOM influence in the hotel industry?; and (3) which factors affect online consumers' purchasing intention in the hotel industry?;The study applied quantitative method and data was collected through online survey. 174 usable responses were performed in data analysis by using multivariate analysis of variance (MANOVA) and multiple regression analysis.;The findings suggest that online consumer's perception of valence not only depends on rating score component but also depends on other eWOM components such as review content and responding message from service providers. The study results also found that rational review content in eWOMS has more impact on online consumer's perception of information diagnosticity than the effect of emotional review content. Rating score, review content and responding message components in eWOMS influence online consumer's perception toward information quality. The effects of eWOM components on online consumer's perception toward informational trust were not found in this research study. The online consumer's perception of source credibility can be increased by providing source identity of reviewers on eWOMS. Furthermore, the findings also suggest that the negative eWOM has more powerful impact on online consumers' perceptions attitudes and purchase intention than positive eWOM. Perceived valence from eWOMS alone does not have enough impact on hotel purchase intention.;According to the research model, for the online positive review conditions in the hotel industry, perceived eWOM diagnosticity and quality has a direct positive relationship to both perceived eWOM influence and purchase intention. Perceived eWOM trustworthiness has a direct positive relationship to perceived eWOM influence. Perceived eWOM influence has a direct positive relationship to purchase intention and is a partial mediator between perceive eWOM diagnosticity and quality and purchase intention. For the online negative review conditions in the hotel industry, perceived eWOM diagnosticity and quality has a direct positive relationship to perceived eWOM influence but it has a direct negative relationship to purchase intention. On the other hand, perceived eWOM trustworthiness has a direct positive relationship to both perceived eWOM influence and purchase intention. Perceived valence has a direct negative relationship to perceived eWOM influence. Perceived eWOM influence has a direct negative relationship to purchase intention and is a partial mediator between perceive eWOM diagnosticity and quality and purchase intention.