Is electronic word of mouth trustworthy and effective? : case study on the restaurant industry

Abstract

The scope of this case study is to investigate whether electronic word of mouth, more specifically, online reviews, are trustworthy and effective. More particularly, the objective of this research is to aid consumers in identifying whether online reviews should be trusted, and if one should rely on, be influenced by, or base expectations on what is being said virtually. It further helps to show whether reviews are effective or not. A case study demonstrates what can be learnt from a single case thereby understanding it better by thoroughly finding different portrayals and connotations. This study was mainly conducted due to the rise in reviews written on several online platforms, leading me to question their trustworthiness, reliability, and effectiveness since not everything found virtually may be of help. As a consumer myself, I needed to find answers in order to discover the reviews’ value to both us consumers and restaurateurs. This research focuses on the restaurant industry, and thus, it provides insights not only to consumers, but also to restaurateurs as it helps to gain an understanding of the importance of reviews, not only for consumers, but also the business world. The method used in this study is content analysis of the online reviews by dividing them in several variables and comparing them to a field work performed by mystery shoppers and myself. This is done by inputting their comments in the same respective variables, as described through their involvement. This serves as a first-hand experience to investigate and answer the research questions and reach the study’s objectives. Furthermore, questions are asked to local influencers and celebrities, whose answers help even more to answer the research questions. From the findings, it transpired that online reviews are indeed trustworthy and effective, and thus, consumers should be able to rely on these online reviews, while restaurateurs should learn how to deal with them and manage them appropriately.