Booking hotels online:Can scarcity messages mitigate the effect of a mediocre aggregated eWOM valence?

Purpose: This research examines the interplay of scarcity message type and aggregated electronic word-of-mouth (eWOM) valence in influencing consumer intentions in response to online hotel price promotions. Design/methodology/approach: Two experimental studies were conducted, manipulating scarcity message type (limited-quantity vs. limited-time) and aggregated eWOM valence (positive vs. mediocre). Study 1 focused on budget hotels and Study 2 on midscale hotels. Data came from Amazon Mechanical Turk. Findings: A positive aggregated eWOM valence always inspired greater confidence than a mediocre one. For midscale hotels, limited-quantity scarcity messages were more effective. However, the type of scarcity did not matter for budget hotels. Moreover, limited-quantity cues consistently worked better than limited-time cues in the mediocre aggregated eWOM valence condition. Originality: This work responds to the call for research on the effect of online scarcity messages in tandem with eWOM. Also, it is the earliest attempt to reveal how scarcity messages fare differently for various hotel categories. Practical implications: A positive aggregated eWOM valence is obviously preferred to a mediocre one. That said, if a hotel ends up with a mediocre aggregated eWOM valence, it should use limited-quantity scarcity messages to tilt the balance in its favor.