DOI QR코드

DOI QR Code

Consumer Experience and Management Response Under the Impact of COVID-19 Crisis

  • Hyunsoo YOO (Business and Technology Management, KAIST)
  • Received : 2024.04.14
  • Accepted : 2024.06.05
  • Published : 2024.06.30

Abstract

This study examines the relationship between customer satisfaction and management response in the hotel industry amid the COVID-19 pandemic. By applying regression analysis and topic modeling to consumer reviews on online platforms, we assess how consumer perceptions and management behaviors have shifted since the onset of the pandemic. The findings reveal a significant decline in customer satisfaction linked to COVID-19. Significantly, while the pandemic has reduced overall customer satisfaction levels, high response rates and high review-response content similarity mitigate the impact of the crises. These results highlight the critical need for hotel managers to continuously monitor online reviews and adapt their engagement strategies to maintain and enhance customer satisfaction during ongoing and future crises. This research not only corroborates existing theories on customer satisfaction but also exposes novel dynamics introduced by the pandemic, offering new insights for effective customer relationship management in turbulent times.

Keywords

References

  1. Adam, I. (2015). Backpackers' risk perceptions and risk reduction strategies in Ghana. Tourism Management, 49, 99-108. https://doi.org/10.1016/j.tourman.2015.02.016
  2. Alan, C. B., So, S., & Sin, L. (2006). Crisis management and recovery: how restaurants in Hong Kong responded to SARS. International Journal of Hospitality Management, 25(1), 3-11.
  3. Alonso, A. D., Kok, S. K., Bressan, A., O'Shea, M., Sakellarios, N., Koresis, A., Solis, M. A. B. & Santoni, L. J. (2020). COVID-19, aftermath, impacts, and hospitality firms: An international perspective. International journal of hospitality management, 102654.
  4. Baum, T., & Hai, N. T. T. (2020). Hospitality, tourism, human rights and the impact of COVID-19. International Journal of Contemporary Hospitality Management, 32(7), 2397-2407. https://doi.org/10.1108/IJCHM-03-2020-0242
  5. Bhati, A. S., Mohammadi, Z., Agarwal, M., Kamble, Z., & Donough-Tan, G. (2020). Motivating or manipulating: the influence of health-protective behaviour and media engagement on post-COVID-19 travel. Current Issues in Tourism, 1-5.
  6. Blei, D. M., Ng, A. Y., & Jordan, M. I. (2003). Latent dirichlet allocation. Journal of machine Learning research, 3(Jan), 993-1022.
  7. Chen, M. H., Jang, S. S., & Kim, W. G. (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: an event-study approach. International Journal of Hospitality Management, 26(1), 200-212.
  8. Chen, W., Gu, B., Ye, Q., & Zhu, K. X. (2019). Measuring and managing the externality of managerial responses to online customer reviews. Information Systems Research, 30(1), 81-96. https://doi.org/10.1287/isre.2018.0781
  9. Donnelly, C. A., Malik, M. R., Elkholy, A., Cauchemez, S., & Van Kerkhove, M. D. (2019). Worldwide reduction in MERS cases and deaths since 2016. Emerging infectious diseases, 25(9), 1758.
  10. Donohoe, H., Pennington-Gray, L., & Omodior, O. (2015). Lyme disease: Current issues, implications, and recommendations for tourism management. Tourism Management, 46, 408-418. https://doi.org/10.1016/j.tourman.2014.07.006
  11. Dube, K., Nhamo, G., & Chikodzi, D. (2020). COVID-19 cripples global restaurant and hospitality industry. Current Issues in Tourism, 1-4.
  12. Elston, D. M. (2005). New and emerging infectious diseases. Journal of the American Academy of Dermatology, 52(6), 1062-1068. https://doi.org/10.1016/j.jaad.2005.02.048
  13. Engler, T. H., Winter, P., & Schulz, M. (2015). Understanding online product ratings: A customer satisfaction model. Journal of Retailing and Consumer Services, 27, 113-120. https://doi.org/10.1016/j.jretconser.2015.07.010
  14. Farzanegan, M. R., Gholipour, H. F., Feizi, M., Nunkoo, R., & Andargoli, A. E. (2021). International Tourism and Outbreak of Coronavirus (COVID-19): A Cross-Country Analysis. Journal of Travel Research, 60(3), 687-692. https://doi.org/10.1177/0047287520931593
  15. Foroudi, P., Tabaghdehi, S. A. H., & Marvi, R. (2020). The gloom of the COVID-19 shock in the hospitality industry: A study of consumer risk perception and adaptive belief in the dark cloud of a pandemic. International Journal of Hospitality Management, 92, 102717.
  16. Goh, C. (2012). Exploring impact of climate on tourism demand. Annals of tourism research, 39(4), 1859-1883. https://doi.org/10.1016/j.annals.2012.05.027
  17. Gossling, S., Scott, D., & Hall, C. M. (2020). Pandemics, tourism and global change: a rapid assessment of COVID-19. Journal of Sustainable Tourism, 1-20.
  18. Gu, B., & Ye, Q. (2014). First step in social media: Measuring the influence of online management responses on customer satisfaction. Production and Operations Management, 23(4), 570-582. https://doi.org/10.1111/poms.12043
  19. Gursoy, D. & Chi, C.G. (2020). Effects of COVID-19 pandemic on hospitality industry: Review of the current situation and a research agenda. Journal of Hospitality Marketing & Management, 29(5), 527-529. https://doi.org/10.1080/19368623.2020.1788231
  20. Hall, C. M. (2010). Crisis events in tourism: subjects of crisis in tourism. Current issues in Tourism, 13(5), 401-417. https://doi.org/10.1080/13683500.2010.491900
  21. Hao, F., Xiao, Q., & Chon, K. (2020). COVID-19 and China's Hotel Industry: Impacts, a Disaster Management Framework, and Post-Pandemic Agenda. International Journal of Hospitality Management, 90, 102636.
  22. He, H., & Harris, L. (2020). The Impact of Covid-19 Pandemic on Corporate Social Responsibility and Marketing Philosophy. Journal of Business Research, 116, 176-182. https://doi.org/10.1016/j.jbusres.2020.05.030
  23. Israeli, A. A., & Reichel, A. (2003). Hospitality crisis management practices: the Israeli case. International Journal of Hospitality Management, 22(4), 353-372.
  24. Kusner, M. J., Sun, Y., Kolkin, N. I., & Weinberger, K. Q. (2015). From Word Embeddings To Document Distances. In Proc. ICML'15, pp. 957-966.
  25. Lee, C. C., & Chen, C. J. (2011). The reaction of elderly Asian tourists to avian influenza and SARS. Tourism Management, 32(6), 1421-1422. https://doi.org/10.1016/j.tourman.2010.12.009
  26. Lee, C. K., Song, H. J., Bendle, L. J., Kim, M. J., & Han, H. (2012). The impact of non-pharmaceutical interventions for 2009 H1N1 influenza on travel intentions: A model of goal-directed behavior. Tourism Management, 33(1), 89-99. https://doi.org/10.1016/j.tourman.2011.02.006
  27. Li, C., Cui, G., & Peng, L. (2017). The signaling effect of management response in engaging customers: A study of the hotel industry. Tourism Management, 62, 42-53. https://doi.org/10.1016/j.tourman.2017.03.009
  28. Mariolis, T., Rodousakis, N., & Soklis, G. (2020). The COVID-19 multiplier effects of tourism on the Greek economy. Tourism Economics, 1-8.
  29. McKinsey and Company. (2020). "Hospitality and COVID-19: How long until 'no vacancy' for US hotels?", Available at: https://www.mckinsey.com/industries/travel-logistics-andtransport-infrastructure/our-insights/hospitality-and-covid-19-how-long-until-no-vacancy-for-us-hotels (accessed 27 Sep 2020)
  30. Min, H., Lim, Y., & Magnini, V. P. (2015). Factors affecting customer satisfaction in responses to negative online hotel reviews: The impact of empathy, paraphrasing, and speed. Cornell Hospitality Quarterly, 56(2), 223-231. https://doi.org/10.1177/1938965514560014
  31. Mizrachi, I., & Fuchs, G. (2016). Should we cancel? An examination of risk handling in travel social media before visiting ebola-free destinations. Journal of Hospitality and Tourism Management, 28, 59-65.
  32. Monterrubio, J. C. (2010). Short-term economic impacts of influenza A (H1N1) and government reaction on the Mexican tourism industry: an analysis of the media. International Journal of Tourism Policy, 3(1), 1-15. https://doi.org/10.1504/IJTP.2010.031599
  33. Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020). The socioeconomic implications of the coronavirus pandemic (COVID-19): A review. International journal of surgery, 78, 185-193. https://doi.org/10.1016/j.ijsu.2020.04.018
  34. Nunkoo, R., Teeroovengadum, V., Ringle, C. M., & Sunnassee, V. (2019). Service quality and customer satisfaction: The moderating effects of hotel star rating. International Journal of Hospitality Management, 102414.
  35. Oliver, R. L. (1981). Measurement and evaluation of satisfaction processes in retail settings. Journal of retailing, 57(3), 25-48
  36. Page, S., Yeoman, I., Munro, C., Connell, J., & Walker, L. (2006). A case study of best practice-Visit Scotland's prepared response to an influenza pandemic. Tourism Management, 27(3), 361-393. https://doi.org/10.1016/j.tourman.2006.01.001
  37. Paraskevas, A., Altinay, L., McLean, J., & Cooper, C. (2013). Crisis knowledge in tourism: Types, flows and governance. Annals of Tourism Research, 41, 130-152. https://doi.org/10.1016/j.annals.2012.12.005
  38. Park, J. Y., & Jang, S. S. (2014). Sunk costs and travel cancellation: Focusing on temporal cost. Tourism Management, 40, 425-435. https://doi.org/10.1016/j.tourman.2013.08.005
  39. Racherla, P., & Hu, C. (2009). A framework for knowledge-based crisis management in the hospitality and tourism industry. Cornell Hospitality Quarterly, 50(4), 561-577. https://doi.org/10.1177/1938965509341633
  40. Radojevic, T., Stanisic, N., & Stanic, N. (2015). Ensuring positive feedback: Factors that influence customer satisfaction in the contemporary hospitality industry. Tourism Management, 51, 13-21. https://doi.org/10.1016/j.tourman.2015.04.002
  41. Ramanathan, U., & Ramanathan, R. (2011). Guests' perceptions on factors influencing customer loyalty. International Journal of Contemporary Hospitality Management, 23(1), 7-25. https://doi.org/10.1108/09596111111101643
  42. Richter, L. K. (2003). International tourism and its global public health consequences. Journal of Travel Research, 41(4), 340-347. https://doi.org/10.1177/0047287503041004002
  43. Rivera, M. (2020). Hitting the reset button for hospitality research in times of crisis: Covid19 and beyond. International Journal of Hospitality Management, 87, 102528
  44. Rossello, J., Santana-Gallego, M., & Awan, W. (2017). Infectious disease risk and international tourism demand. Health Policy and Planning, 32(4), 538-548. https://doi.org/10.1093/heapol/czw177
  45. Schamari, J., & Schaefers, T. (2015). Leaving the home turf: How brands can use webcare on consumer-generated platforms to increase positive consumer engagement. Journal of Interactive Marketing, 30, 20-33.
  46. Schuckert, M., Liu, X., & Law, R. (2015). Hospitality and tourism online reviews: Recent trends and future directions. Journal of Travel & Tourism Marketing, 32(5), 608-621. https://doi.org/10.1080/10548408.2014.933154
  47. Senge, P. M. (1990). (1990b). The leader's new work: Building learning organizations. Sloan Management Review, 32(1), 7-23.
  48. Sheng, J. (2019). Being active in online communications: firm responsiveness and customer engagement behaviour. Journal of Interactive Marketing, 46, 40-51. https://doi.org/10.1016/j.intmar.2018.11.004
  49. Shin, H., & Kang, J. (2020). Reducing perceived health risk to attract hotel customers in the COVID-19 pandemic era: Focused on technology innovation for social distancing and cleanliness. International Journal of Hospitality Management, 91, 102664.
  50. Sonmez, S., Apostolopoulos, Y., Lemke, M. K., & Hsieh, Y. C. J. (2020). Understanding the effects of COVID-19 on the health and safety of immigrant hospitality workers in the United States. Tourism Management Perspectives, 35, 100717.
  51. Sparks, B. A., So, K. K. F., & Bradley, G. L. (2016). Responding to negative online reviews: The effects of hotel responses on customer inferences of trust and concern. Tourism Management, 53, 74-85.
  52. Stern, A. M., & Markel, H. (2009). What Mexico taught the world about pandemic influenza preparedness and community mitigation strategies. Jama, 302(11), 1221-1222. https://doi.org/10.1001/jama.2009.1367
  53. Tavitiyaman, P., & Qu, H. (2013). Destination image and behavior intention of travelers to Thailand: The moderating effect of perceived risk. Journal of Travel & Tourism Marketing, 30(3), 169-185. https://doi.org/10.1080/10548408.2013.774911
  54. Volo, S. (2013). Communicating tourism crises through destination websites. In Safety and Security in Tourism (pp. 83-93). Routledge.
  55. Wang, Y., & Chaudhry, A. (2018). When and how managers' responses to online reviews affect subsequent reviews. Journal of Marketing Research, 55(2), 163-177. https://doi.org/10.1509/jmr.15.0511
  56. Wei, W., Miao, L., & Huang, Z. J. (2013). Customer engagement behaviors and hotel responses. International Journal of Hospitality Management, 33, 316-330.
  57. World Health Organization. (2020a). Coronavirus disease ( COVID-19): situation report, 182.
  58. World Health Organization. (2020b). 'WHO Director-General's opening remarks at the media briefing on COVID-19', available at: https://www.who.int/director-general/speeches/detail/who-director-general-s-opening-remarks-at-the-media-briefing-on-covid-19---20-november-2020 (accessed 25 November 25 2020)
  59. World Tourism Organization. (1998). Handbook on natural disaster reduction in tourism areas.
  60. World Tourism Organization (2020), 'UNWTO Launches Global Guidelines to Restart Tourism', available at: https://www.unwto.org/news/unwto-launches-global-guidelines-to-restart-tourism (accessed 14 October 2020)
  61. Xie, K. L., Zhang, Z., & Zhang, Z. (2014). The business value of online consumer reviews and management response to hotel performance. International Journal of Hospitality Management, 43, 1-12.
  62. Chung, Myung-Ae, Kim, Kyung-A, Kang, Min-Soo. (2022). The status of metaverse and digital twin technology development. Korean Journal of Artificial Intelligence, 10(2), 19-24.
  63. Yu, M., Li, Z., Yu, Z., He, J., & Zhou, J. (2020). Communication related health crisis on social media: a case of COVID-19 outbreak. Current Issues in Tourism, 1-7.
  64. Zenker, S., & Kock, F. (2020). The coronavirus pandemic-A critical discussion of a tourism research agenda. Tourism Management, 81, 104164.
  65. Zhang, Z., Li, H., Meng, F., & Li, Y. (2019). The effect of management response similarity on online hotel booking. International Journal of Contemporary Hospitality Management, 31(7), 2739-2758 https://doi.org/10.1108/IJCHM-09-2018-0740