The Effect of Price on Firm Reputation

被引：17
|
作者：
Luca, Michael [1 ]
Reshef, Oren [2 ]
机构：
[1] Harvard Sch Business, Negotiat Org & Markets, Boston, MA 02163 USA
[2] Washington Univ, Olin Business Sch, St Louis, MO 63130 USA
来源：
MANAGEMENT SCIENCE | 2021年 / 67卷 / 07期
关键词：
pricing; reputation systems; IT policy and management; economics of Digital Platforms; WORD-OF-MOUTH; SELLER REPUTATION; QUALITY; SIGNALS; INFORMATION; INCENTIVES; MODEL;
D O I：
10.1287/mnsc.2021.4049
中图分类号：
C93 [管理学];
学科分类号：
12 ; 1201 ; 1202 ; 120202 ;
摘要：
Although a business's reputation can affect its pricing, prices can also affect its reputation. To explore the effect of prices on reputation, we investigate daily data on menu prices and online ratings from a large rating and ordering platform. We find that a price increase of 1% leads to a decrease of 3%-5% in the average rating. Consistent with this, the overall distribution of ratings for cheaper restaurants is similar to that of more expensive restaurants. Finally, these effects do not seem to be driven by consumer retaliation against price changes but by changes in absolute price levels.
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页码：4408 / 4419
页数：13
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