The effect of online word-of-mouth on risk assessment for an experience service as price acceptability changes

Liang, Wai Ki; Corkindale, David

Abstract

The 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.

• Journal Article Type: Article
• Publication Date: Jul 2, 2016
• Deposit Date: Jan 20, 2023
• Journal: Services Marketing Quarterly
• Print ISSN: 1533-2969
• Electronic ISSN: 1533-2977
• Publisher: Taylor & Francis (Routledge)
• Peer Reviewed: Peer Reviewed
• Volume: 37
• Issue: 3
• Pages: 156-170
• DOI: https://doi.org/10.1080/15332969.2016.1184540
• Keywords: Advertised price; experience services; online word-of-mouth; price acceptability level; risk perceptions
• Public URL: https://uwe-repository.worktribe.com/output/10334824
• Publisher URL: https://www.tandfonline.com/doi/full/10.1080/15332969.2016.1184540