Differential Effects of the Valence and Volume of Online Reviews on Customer Share of Visits: The Case of US Casual Dining Restaurant Brands

Abstract

Online customer reviews increasingly influence customer purchase decisions. Indeed, many customers have highlighted the significance of online reviews as an influential source of information. This study reports an investigation of the differential effects of online reviews, such as valence and volume, on the customer share of visits. Our findings suggest that valence (i.e., star rating) had more effect, giving a higher average check size to restaurants on the share of visits, while number reviews (volume) did not drive the share of visits to restaurants regardless of the average check size. Therefore, the ideal for casual dining restaurant brands would be to manage highly positive ratings to retain their customers.