Author(s)

Jinhong Cui, Xiaoying Li And Xu Wang

Corresponding Author

Jinhong Cui

ABSTRACT

Online reviews is a significant form of online service where firms show their corporate image and service quality, in the case of online information asymmetry. This research investigates the effectiveness of online non-monetary service recovery effort on firm performance improvement using data retrieved from a major online travel agency in China. Using the independently developed network data crawler system based on HttpClient crawler assembly to capture the hotel information and customer reviews information and other related data of Ctrip, this study applies Stata model regression to analyze the panel data and test model assumptions. Findings suggest that the firm’s responses to online customer complaints as the representative of the non-monetary service recovery has a significant effect on promoting firm sales.

KEYWORDS

Service Recovery, Online Reviews, Firm Performance, Perceived Fairness