Do Repeat Customers Effectively Attract New Customers? Reconsidering Customer Influence Value of Repeat Customers
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.
Authors
- Yerin Yhee (ORCID: https://orcid.org/0000-0002-8826-3563)
- Seunghun Shin (ORCID: https://orcid.org/0000-0001-7022-6732)
- Hyejo Hailey Shin (ORCID: https://orcid.org/0000-0002-8273-9719)
- Eunji Lee (ORCID: https://orcid.org/0000-0001-8369-7736)
Institutions
- Hong Kong Polytechnic University (HK)
- Kyung Hee University (KR)
- Kyung Hee University Dental Hospital (KR)
Publication Details
- Journal
- Journal of Hospitality & Tourism Research
- Published
- 2024-08-09
- DOI
- https://doi.org/10.1177/10963480241277093
- Citations
- 6
- Primary Topic
- Customer Service Quality and Loyalty
- Type
- article
- Field-Weighted Citation Impact
- 4.05
Funders
- Hong Kong Polytechnic University