Should businesses keep consistent performance between channels? Empirical evidence from the impact of rating discrepancy on demand

Consumers often search for and compare the online and offline performance of businesses, indicated by consumer ratings, before they make purchases. In this study, using empirical evidence from the restaurant industry, we examine the impact of consumer rating discrepancy between online and offline channels on online demand. We find that channel rating discrepancy for overall performance, products, and services negatively affects online demand. In addition, higher prices amplify the negative effect of channel rating discrepancy on consumer online purchase behavior. The negative discrepancy effect has heterogeneity that depends on the business's properties (i.e., chain vs. independent). Our findings suggest that companies should take an integrated approach to make cross-channel performance consistent. With consistent performance, companies can have a better overall performance that will attract consumer demand.

Automated summary

Consumers tend to use consumer ratings on online and offline channels to make purchases, with discrepancies in ratings negatively affecting online demand, especially when prices are higher. Businesses should strive for consistent cross-channel performance to attract consumer demand.