As regard to the reviews, its influence on

As
number of people using internet are increasing, there is huge increase in
number of people booking hotel through app or any online portal. They want to
know ‘how rooms look like’, ‘What type of services provided at hotel’ etc.

before reaching any hotel. This has increased the importance of reviews or
feedback provided by the customers about the hotel and their services

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As
we are relying more and more on the aggregated opinions of peers online,
contributions made by users on technological platforms facilitate the
interaction between like-minded community members who share shopping interests,
thus facilitating the decision-making process (Amblee, 2014). These contributions
have become the main source of social influence when making a purchase (Anderson, 1998). Within such a
technological context, companies in the consumer sector – tourism and
hospitality, travel, leisure, electrical devices, etc. – must face the
challenge of managing the large scale, anonymous and brief opinions of others.

Therefore, organizations need new knowledge that allows them to capture,
analyse, interpret and manage online social influence (Sinan Aral, 2012) (NAVEEN AMBLEE, 2014).

Marketing
literature recognizes that consumers have the ability to influence each other.

On the Internet, this influence is omnipresent and is exerted through, among
other things, recommendations, numerical ratings and verbal reviews. Previous
research has focused on the influence that online recommendations and reviews
have on the different stages of the decision-making process when purchasing a
product. Research has revealed that products are selected twice as often if
they are recommended by others and this influence is dependent on the type of
recommendation source. Online recommendation systems offered by online
retailers are more influential than the recommendation from experts or other
consumers. These results are moderated by the type of product. With regard to
the reviews, its influence on buying decisions has been studied for different
type of products: books, hotel stays, in terms of both sought-after and
experiential goods, and also the ability of comments to modify the visibility
of a product. Reviews have also shown to act as anchors of consumer experience
and to encourage subsequent reviews on the Net (Smith, 2011).

Today
online consumers have to deal with huge amount of information, new search
engines, different devices, and new strategies to approach information in order
to make a purchasing decision. In this new context, online ratings have become
one of the most trusted sources when making e-commerce decisions. Usually,
consumers have faith in these ratings and view them as trustworthy. A Nielsen
report found that consumers’ ratings were the second most-trusted source of
brand information (after recommendations from friends and family). Companies
are sensitive to these changes. (Lipsman, 2007) examined the impact
of consumer-generated reviews on the price consumers were willing to pay for a
service to be delivered offline. Consumers were willing to pay at least 20
percent more for services which have received an “Excellent,” or 5-star rating
than if the same service has received a “Good,” or 4-star rating. Despite the influence
of the interest in ratings, only few researchers have so far analysed the
extent to which these anonymous and non-expert raters impact consumer
purchasing decisions. Moreover, in online purchasing decisions, people usually
receive two types of information simultaneously: an overall numerical rating
and a sample of individual verbal reviews. Both exert a particular influence on
the consumers, and their interaction is particularly telling. No research we
are aware of, however, has investigated the influence of these ratings on the
consumer’s purchasing decisions. Therefore, the goal of this paper is to deepen
the knowledge about the influence of ratings on consumer purchasing decisions
and if it impacts their decision then how many reviews they generally go
through before making purchasing decision. We will analyze the mediating effect
of trust on the relationship between the rating and the intention to shortlist
a product or service, as well as the moderating role of the number of reviews
in the indirect effect of the numerical rating on trustworthiness. From a
business perspective, gaining a better understanding of how product ratings and
reviews influence consumer choice is vital to further understand the
relationship between online customer reviews and business performance. (Diana
Gavilan, 2017)