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Online Customer Reviews: Their Impact on Restaurants

Added on - 09 Dec 2020

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Impacts of location and onlinereviews on cafe
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Literature Review.............................................................................................................................3Impact of online reviews on cafe business.............................................................................3Impacts of locations on Cafe business..................................................................................5Strategies to deal with the influence of location and online reviews to get benefits for cafe7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
Topic:Impacts of location and online reviews on cafe and how to deal with thesefactors to get benefits for cafe.INTRODUCTIONGeographical location and online reviews are the key components to the success of arestaurant. These are also considered main elements which provides competitive advantage toorganization among customers in market It can be justified that sales are increased of businessand customers are benefited as they utilise money in accordance to reviews and decide to availservices or not. Reviews of customers towards organization determines whether products andservice offered by Cafe meet the requirement of customers or not. In this report, literature reviewis conducted toanalyse impact of locationsandfeedbacks ofcafe. Critical analysis of differentconcepts, theories will be done to determine the methods to deal with influence of location andonline reviews to attain benefits for cafe.Literature ReviewImpact of e-reviews on cafe business.According toBlal and Sturman (2014), “In past years, Online feedbacks that becomes apart of success of and the owners are knows that good feedbacks from visitors can increase thebrand recognition, loyalty, sales and profitability”.So its important for restaurant to check thefeedback on social sites like Yelp, Top table, company's own websites are confidential foranalysing its performance.As per analysis, there are various important issues that needs to be faced by manager to attaincustomers regarding purchase of products and services. “Approximately 68 % customer aregoing through the feedbacks before visiting the restaurant”.Another essential fact that 68 %between age group of 30 to 39 years old that their visiting in restaurant is very much depends one-reviews.(Who uses online customer reviews?.2018).In addition to thisBrowning and et.al (2013),also suggested that visitors depends on thereviewswhich are available easily.High level of faith is being analysed by customers as theyrely on online reviews and cafe is benefited.In contrast to this, customersalso make comment on social websites when they areunhappy about business enterprise. Sometimesbusiness entity also conducts customers reviewscannot be considered as by customers while purchasing products.They only buy products by
emphasizing upon price comparison between competitors. People sometimes also providenegative reviews intentionally to decrease the sales for the favour of other competitorswhichcreated negative influence on recognition and sales of customers.As per the view ofSparks, Beverley and Browning, Victoria (2011), In accordance withhigh rating and e-reviews are considered as important factor in making heuristic approach ofcustomers in gaining reviews about firm on online basis. Thecustomers using internet faces widevalence feedback of purchases made by other customers.According to prospect theory,customers with high values to the loss that to that of profitwhich is associated withearning an amount.In other words, while choosing between twoalternatives losses will be considered first rather than gains. Increase in consumers perceptiontends to provide positive influence on customers to buy products and service.Positive reviewstends to create brand loyalty of organization among consumers and it will also bring sales to thecompany in the best possible manner. Furthermore, it will have maximum profits to firm and caneffectively outreach competitors' strategies.In contrast to this statement,Melián-González, Bulchand-Gidumal and González López-Valcárcel (2013) viewed that “the Argument is consistent with the notion of the negativity biaswhich clearly refers to the tendency for a unit of activation to bring about a greater changes inoutput by negative motivational system as compared with the positive motivational systems.However, negative input also has major influence on attitudinal and behaviour expressions that apositive input. From the information process perspective, it can also be argued that negativeinformation has a stronger influence on individual's judgement and choice than positiveinformation (Shu-li-Cheng, Wen-hsien Lin, Frederick Kin Hing Phoa, Jing-shiang Hwang, Wei-chung Liu.2015). It can be justified that negative reviews have adverse impact on organisationas customer's perception tend to change.Haghighi and et.al (2012) identified that negative online reviews bias largely occurs atthe stage of information and choice evaluation.Thus, negative online reviews could be moreattention grabbing in general and receive greater scrutiny, thus being more effective andspecifically have major effect on evaluations than positive messages.Prayag, Landré and Ryan (2012) have also concluded that understanding consumerrequirementsneeds and wants has been a major source of success for hotel business.Investigation provides clear understanding that positive reviews of customers also tends to
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