Testing loss aversion and diminishing sensitivity in review sentiment

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dc.contributor.authorSharma, Abhinaven
dc.contributor.authorPark, Sangwonen
dc.contributor.authorNicolau, Juan Luisen
dc.date.accessioned2024-08-05T19:08:55Zen
dc.date.available2024-08-05T19:08:55Zen
dc.date.issued2019-11-01en
dc.description.abstractThis article analyzes the relationship between ratings and review sentiment by introducing, for the first time, the tenets of prospect theory. Specifically, we test loss aversion and diminishing sensitivity on a sample of 132,486 reviews and find that: first, negative deviations in ratings (receiving a service with worse performance than expected) bring about a higher impact on review sentiment than positive deviations of equal magnitude (receiving a service with better performance than expected), thus, confirming loss aversion; and second, regardless of whether the service received is better or worse than expected, variations in ratings closer to the reference point result in higher marginal impacts on sentiment than equivalent variations further away from the reference point, thus, proving diminishing sensitivity. These results have relevant theoretical implications related to the use of relative vs absolute measures and the cognitive bias involved, and managerial implications linked to meeting expectations and service recovery.en
dc.description.versionAccepted versionen
dc.format.extent8 page(s)en
dc.format.mimetypeapplication/pdfen
dc.identifierUNSP 104020 (Article number)en
dc.identifier.doihttps://doi.org/10.1016/j.tourman.2019.104020en
dc.identifier.eissn1879-3193en
dc.identifier.issn0261-5177en
dc.identifier.orcidNicolau Gonzalbez, Juan [0000-0003-0048-2823]en
dc.identifier.urihttps://hdl.handle.net/10919/120853en
dc.identifier.volume77en
dc.language.isoenen
dc.publisherElsevieren
dc.relation.urihttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000502888400028&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=930d57c9ac61a043676db62af60056c1en
dc.rightsCreative Commons Attribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.subjectDiminishing sensitivityen
dc.subjectLoss aversionen
dc.subjectProspect theoryen
dc.subjectRatingen
dc.subjectReview sentimenten
dc.titleTesting loss aversion and diminishing sensitivity in review sentimenten
dc.title.serialTourism Managementen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten
dc.type.otherArticleen
dcterms.dateAccepted2019-10-23en
pubs.organisational-group/Virginia Techen
pubs.organisational-group/Virginia Tech/Pamplin College of Businessen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/Hospitality and Tourism Managementen
pubs.organisational-group/Virginia Tech/All T&R Facultyen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/PCOB T&R Facultyen
pubs.organisational-group/Virginia Tech/Graduate studentsen
pubs.organisational-group/Virginia Tech/Graduate students/Doctoral studentsen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/PCOB doctoral studentsen

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