Online review response strategy and its effects on competitive performance

This study focuses on the impact of managements' quantity and quality of usage of online review systems. Our findings show that managerial response quantity positively impacts hotels' competitive performance. Moreover, responses have a stronger positive impact when they address extreme reviews. We evaluate four response strategies and find significant performance differences among them. Our finding demonstrates the importance of proficiency in external information systems use because performance differs by “how” the system is used - not only “how much.”