Work

Do Repeat Customers Effectively Attract New Customers? Reconsidering Customer Influence Value of Repeat Customers

Year: 2024

Type: article

Abstract: In the hospitality industry, repeat customers are recognized for their significant contributions, not just because they visit a business again but also because they generate strong word-of-mouth impacts on potential customers’ decisions. However, the quality of repeat customers’ word-of-mouth should be reconsidered for its pivotal role in influencing new customers. This research examines the effectiveness of repeat customers’ word-of-mouth compared to first-time customers. Employing a multi-study, multi-method approach, the study examines whether the quality and usefulness of online reviews written by repeat customers is indeed superior to those of first-time customers, through text analysis (Study 1), an experiment (Study 2), and a regression analysis utilizing secondary data (Study 3). Contrary to common belief, the results of the three studies reveal that repeat customers’ reviews do not surpass those of first-time customers in terms of quality, usefulness, or attracting new customers, highlighting the importance of considering quality when assessing customers’ indirect contributions.

Source: Journal of Hospitality & Tourism Research

DOI: 10.1177/10963480241277093

Authors: Seunghun Shin, Hyejo Hailey Shin, Eunji Lee, Yerin Yhee

Institutions: Hong Kong Polytechnic University, Kyung Hee University

Language: English

Topic: Digital Marketing and Social Media

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

Funder: Hong Kong Polytechnic University

Award: G6007376534