The Influence of Hotel Price on Perceived Service Quality and Value in e-tourism

Online Customer Reviews

Online customer reviews can be defined as peer-generated product evalua-

tions posted on company or third-party websites (Mudambi & Schuff, 2010). At 

present, such reviews are available for a large number of product categories, 

including search goods (such as mobile phones) and experience goods (such as 

movies). They provide information not just about the products in question but 

also aspects of the postconsumption experience, such as quality, value for 

money, and overall evaluation. Online reviews provided by purchasers have 

become a major source of information on product quality for both consumers 

and marketers (Hu, Liu, & Zhang, 2008). More customers now browse online 

reviews before making purchase decisions. As such, these reviews play an 

important role in their decision-making processes.

In the service industry, online reviews are considered as a useful tool for inves-

tigating customers’ perceptions (Pantelidis, 2010; Ryu & Han, 2010; Zhang et al., 

2010). Compared with questionnaires and interviews, online reviews provide a new 

and effective way to investigate customers’ perceptions. Various studies have used 

them as a means to explore customer perceptions and satisfaction. Based on a content 

analysis of online restaurant comments, Pantelidis (2010) shows that food, ser-

vice, ambience, price, menu, and decor all have an effect on customer percep-

tions. Zhang et al. (2010) show that the quality dimensions of online consumer 

reviews are positively associated with restaurants’ online popularity. Ryu and 

Han (2010) use online review data to show that quality of service and the 

physical environment are significant determinants of customer satisfaction in 

quick-casual restaurants. An experimental study demonstrates that the valence 

of online reviews, hotel familiarity, and reviewer expertise as independent fac-

tors all enhance consumers’ consideration of hotels (Vermeulen & Seegers, 

2009). In this study, we use online review data to capture customers’ value and 

quality perceptions.

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