VOX POPULI: THREE ESSAYS ON THE USE OF SOCIAL MEDIA FOR VALUE CREATION IN SERVICES

Prior research shows that electronic word of mouth (eWOM) wields considerable influence over consumer behavior. However, as the volume and variety of eWOM grows, firms are faced with challenges in analyzing and responding to this information. In this dissertation, I argue that to meet the new challenges and opportunities posed by the expansion of eWOM and to more accurately measure its impacts on firms and consumers, we need to revisit our methodologies for extracting insights from eWOM. This dissertation consists of three essays that further our understanding of the value of social media analytics, especially with respect to eWOM. In the first essay, I use machine learning techniques to extract semantic structure from online reviews. These semantic dimensions describe the experiences of consumers in the service industry more accurately than traditional numerical variables. To demonstrate the value of these dimensions, I show that they can be used to substantially improve the accuracy of econometric models of firm survival. In the second essay, I explore the effects on eWOM of online deals, such as those offered by Groupon, the value of which to both consumers and merchants is controversial. Through a combination of Bayesian econometric models and controlled lab experiments, I examine the conditions under which online deals affect online reviews and provide strategies to mitigate the potential negative eWOM effects resulting from online deals. In the third essay, I focus on how eWOM can be incorporated into efforts to reduce foodborne illness, a major public health concern. I demonstrate how machine learning techniques can be used to monitor hygiene in restaurants through crowd-sourced online reviews. I am able to identify instances of moral hazard within the hygiene inspection scheme used in New York City by leveraging a dictionary specifically crafted for this purpose. To the extent that online reviews provide some visibility into the hygiene practices of restaurants, I show how losses from information asymmetry may be partially mitigated in this context. Taken together, this dissertation contributes by revisiting and refining the use of eWOM in the service sector through a combination of machine learning and econometric methodologies.

The Impact of Motor Learning on Motor Behavior and Cortical Dynamics in a Complex Stressful Social Environment

An economy of effort is a core characteristic of highly skilled motor performance often described as being effortless or automatic. Electroencephalographic (EEG) evaluation of cortical activity in elite performers has consistently revealed a reduction in extraneous associative cortical activity and an enhancement of task-relevant cortical processes. However, this has only been demonstrated under what are essentially practice-like conditions. Recently it has been shown that cerebral cortical activity becomes less efficient when performance occurs in a stressful, complex social environment. This dissertation examines the impact of motor skill training or practice on the EEG cortical dynamics that underlie performance in a stressful, complex social environment. Sixteen ROTC cadets participated in head-to-head pistol shooting competitions before and after completing nine sessions of skill training over three weeks. Spectral power increased in the theta frequency band and decreased in the low alpha frequency band after skill training. EEG Coherence increased in the left frontal region and decreased in the left temporal region after the practice intervention. These suggest a refinement of cerebral cortical dynamics with a reduction of task extraneous processing in the left frontal region and an enhancement of task related processing in the left temporal region consistent with the skill level reached by participants. Partitioning performance into ‘best’ and ‘worst’ based on shot score revealed that deliberate practice appears to optimize cerebral cortical activity of ‘best’ performances which are accompanied by a reduction in task-specific processes reflected by increased high-alpha power, while ‘worst’ performances are characterized by an inappropriate reduction in task-specific processing resulting in a loss of focus reflected by higher high-alpha power after training when compared to ‘best’ performances. Together, these studies demonstrate the power of experience afforded by practice, as a controllable factor, to promote resilience of cerebral cortical efficiency in complex environments.

Online and Traditional Lectures: Evaluating Effects of Social Presence and Learner Control

Online courses are rapidly replacing traditional, face-to-face lectures in American universities (Allen & Seaman, 2011). As technology improves, this trend will likely continue and accelerate. Researchers must evaluate the impact of online courses compared to their traditional counterparts. This two-part study quantifies the effect of two variables – social presence and learner control – on students’ recall, application and perceived learning levels in different lecture formats. Students in introductory courses at a four-year, public, American university were randomly assigned into three groups to view distinct lecture formats, one in a traditional classroom and two via the Internet. Upon viewing the single lecture, the students were asked to fill out a test and survey to quantify teacher immediacy, recall and application, and perceived learning levels across lecture formats. The study found that different levels of social presence and learner control affected students’ perceived learning levels but did not impact recall or application.