How consumers process online hotel ratings

Abstract

Online travel agencies commonly utilize 5-point and 10-point scales to display hotel ratings. When processing and comparing hotel ratings on different numerical scales (e.g., 4.1/5 vs. 8.4/10), what method(s) do consumers use? Through nine studies, this research shows that consumers tend to employ absolute differences (e.g., 5–4.1 vs. 10–8.4) or relative differences (e.g., 4.1 ÷ 5 vs. 8.4 ÷ 10) when making comparative judgments. Notably, the choice of method can lead to preference reversals. We further reveal that higher numeracy leads to greater reliance on relative differences. However, such an impact is attenuated under a utilitarian motive. Additionally, a greater promotion focus leads to greater reliance on absolute differences. The findings contribute to a more nuanced understanding of how consumers process hotel ratings.