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Better the devil you know? The moderating role of brand familiarity and indulgence vs. restraint cultural dimension on eWOM influence in the hospitality industry

ABSTRACT Positive online reviews elicit more positive consumer behaviors than negative reviews in the hospitality industry. However, several variables that influence information processing may affect this well-established link. The present study focuses on the moderating roles of brand familiarity and cultural values, as their influence remains unexplained in the previous literature. To better understand the moderating influence of brand familiarity and cultural values on the relationship between positive/negative online reviews and booking intentions, a 2 (positive vs. negative) x 2 (familiar vs. unfamiliar brand) experimental research design was conducted in two countries, Spain and Mexico, that differ mainly in the “indulgence versus restraint” cultural dimension. The results suggest that, in general, positive/negative online reviews generate higher/lower booking intentions for less familiar than for familiar hotels. In addition, culture moderates the effect of familiarity. This interaction effect is more relevant in restrained cultures. Theoretical and managerial implications, based on these results, are discussed.