The impacts of customers' observed severity and agreement on hotel booking intentions: moderating role of webcare and mediating role of trust in negative online reviews

Purpose - The purpose of the paper is to examine the conditional role of webcare as a service failure recovery strategy on customers' hotel booking intentions in presence of different levels of observed severity and review agreement. Furthermore, the study also examines the mechanism through which webcare can shape the adverse effect of observed severity and review agreement on hotel booking intentions. Design/methodology/approach - A 2 (severity: high or low) x 2 (agreement: high or low) x 2 (webcare: webcare or no webcare) between-subject experimental design was conducted to collect responses. Analyses of variance and moderated mediation analysis were performed to analyze the study data. Findings - Prospective customers who observed high severe service failure from a review reported less booking intention. Further, customers' observed agreement strengthened these behaviors, i.e. customers who are exposed to high severe service failure in high-agreement condition reported low booking intention, as compared to those who exposed to low review agreement condition. Furthermore, results supported the fact that use of appropriate webcare plays a significant role to shape or mitigate the negative effect of severity and agreement on hotel booking intentions via perceived trust. Originality/value - This is the first in its stream of studies that examined how webcare can be used to tackle the adverse effects of observed severity and agreement, so that perceived trust would be formed to create hotel booking intention.