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.

Flooded with Information from Social Media: Effects of Disaster Information Source and Visuals on Viewers' Cognitive, Affective, and Behavioral Responses

While a variety of crisis types loom as real risks for organizations and communities, and the media landscape continues to evolve, research is needed to help explain and predict how people respond to various kinds of crisis and disaster information. For example, despite the rising prevalence of digital and mobile media centered on still and moving visuals, and stark increases in Americans’ use of visual-based platforms for seeking and sharing disaster information, relatively little is known about how the presence or absence of disaster visuals online might prompt or deter resilience-related feelings, thoughts, and/or behaviors. Yet, with such insights, governmental and other organizational entities as well as communities themselves may best help individuals and communities prepare for, cope with, and recover from adverse events. Thus, this work uses the theoretical lens of the social-mediated crisis communication model (SMCC) coupled with the limited capacity model of motivated mediated message processing (LC4MP) to explore effects of disaster information source and visuals on viewers’ resilience-related responses to an extreme flooding scenario. Results from two experiments are reported. First a preliminary 2 (disaster information source: organization/US National Weather Service vs. news media/USA Today) x 2 (disaster visuals: no visual podcast vs. moving visual video) factorial between-subjects online experiment with a convenience sample of university students probes effects of crisis source and visuals on a variety of cognitive, affective, and behavioral outcomes. A second between-subjects online experiment manipulating still and moving visual pace in online videos (no visual vs. still, slow-pace visual vs. still, medium-pace visual vs. still, fast-pace visual vs. moving, slow-pace visual vs. moving, medium-pace visual vs. moving, fast-pace visual) with a convenience sample recruited from Amazon’s Mechanical Turk (mTurk) similarly probes a variety of potentially resilience-related cognitive, affective, and behavioral outcomes. The role of biological sex as a quasi-experimental variable is also investigated in both studies. Various implications for community resilience and recommendations for risk and disaster communicators are explored. Implications for theory building and future research are also examined. Resulting modifications of the SMCC model (i.e., removing “message strategy” and adding the new category of “message content elements” under organizational considerations) are proposed.