Effect of B&B host responses to online reviews on subsequent reviews : the moderating effects of class level

Purpose: This study aims to focus on understanding how the characteristics of the bed and breakfast (B&B) host responses to online reviews impact the subsequent business performance of review volume, including volume, timeliness and length of responses. Design/methodology/approach: The study constructs a theoretical framework to model for the relationships among characteristics of the B&B host responses, heterogeneity of B&B houses and subsequent reviews. The model is then examined by an econometric model using data from Ctrip.com. Findings: Prompt and lengthy responses to online reviews increase the number of subsequent reviews, and the effects are larger for higher level houses. The main theoretical contribution is to build a model explaining how multiple attributes of the host responses can affect business performance and how these effects are moderated by the class levels of B&B houses, which are empirically tested by real data. Practical implications: This study highlights managerial implications of host responses for online B&B business practices. For the higher-quality B&B houses, based on price and reviews, lengthy and timely responses are necessary, as tourists expect increased customer service from these hosts. Originality/value: The research provides insights in understanding the mechanism of B&B host responses on subsequent reviews. To the best of the authors’ knowledge, this is the first study to demonstrate the moderating effect of price and volume of online reviews on responses.