Effects of market intelligence generation, online reviews, and management response on the business performance of rural accommodation establishments in France

Abstract

[EN] In successful businesses, positive reviews are growing in importance because they can influence consumers' purchasing decisions and, consequently, their performance. The authors propose that market intelligence generation associated with the comments in consumer evaluations and the advantages of management response drive business performance. The researchers analyze data about the rural accommodation (positive online consumer reviews and management response) on the infomediary website. Toprural website (Vrbo), from a sample of 237 French rural tourism accommodations (RTA). An additional survey provided information on the RTA market intelligence generation and business performance (profitability). The researchers adopted a quantitative and demand-driven approach to describe drivers that enhance business performance. The researchers identify a significant direct positive effect of positive volume of online consumer reviews and a non-significant direct effect of management response on business performance. Moreover, those entrepreneurs who are genuinely interested in detecting and understanding shifts in the environment and pursuing best practices are more likely to succeed than those who show less interest. In the presence of market intelligence, online consumer reviews and management response have stronger effects on business performance. Furthermore, this knowledge appears to be linked with a better use of accessible intelligence in online consumer reviews, as well as a more successful accommodation management response. It also directly influences performance. This variable thus helps explain the influence of online consumer reviews in the hospitality and tourism industry.