Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 53, No. 5, pp.1117-1135
ISSN: 1226-1874 (Print)
Print publication date 31 Oct 2024
Received 01 31 2024 Revised 13 May 2024 Accepted 20 May 2024
DOI: https://doi.org/10.17287/kmr.2024.53.5.1117

Effects of Qualitative Factors in Reviews on Job Seekers’ Perceptions: Empirical Analysis of Online Employer Reviews

Sung Jun Woo ; Daye Um ; Wooje Cho
(First Author) Seoul National University, Graduate School of Business sungjunwoo@snu.ac.kr
(Co-Author) Seoul National University, Graduate School of Business umdaye@snu.ac.kr
(Corresponding Author) Seoul National University, Graduate School of Business woojecho@snu.ac.kr
온라인 기업 리뷰 플랫폼에서 리뷰 질적인 측면이 리뷰 유익성에 미치는 영향
우성준 ; 엄다예 ; 조우제
(주저자) 서울대학교 경영학과
(공저자) 서울대학교 경영학과
(교신저자) 서울대학교 경영학과


Copyright 2024 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Compared with online product reviews, employer reviews include unique dimensions, such as reviewer demographics and evaluations of various organizational attributes. This study explores the role of qualitative factors within reviews on the perceived helpfulness of the review. To identify determinants of the helpfulness of employer reviews, we use a publicly accessible dataset from Glassdoor. For the analysis, a Tobit regression model is used, which is suitable for dealing with our left-censored data distribution. Our findings highlight the crucial influence of review readability, review comprehensiveness, review completeness, and the managerial response on the helpfulness of employer reviews. By proposing new measures for review comprehensiveness and completeness, this research enhances our knowledge of the qualitative factors that underpin the helpfulness of employer review in the realm of online employer reviews.

Keywords:

Online employer review, helpfulness of employer review, qualitative factors in reviews, review comprehensiveness, review completeness

Acknowledgments

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2022S1A3A2A01089239)

References

  • Agnihotri, A., and Bhattacharya, S.(2016), “Online review helpfulness: Role of qualitative factors,” Psychology & Marketing, 33(11), pp.1006- 1017. [https://doi.org/10.1002/mar.20934]
  • Armstrong, J. (2010). Persuasive advertising: Evidence- based principles. Springer. [https://doi.org/10.1057/9780230285804]
  • Carpentier, M., and Van Hoye, G.(2021), “Managing organizational attractiveness after a negative employer review: Company response strategies and review consensus,” European Journal of Work and Organizational Psychology, 30 (2), pp.274-291. [https://doi.org/10.1080/1359432X.2020.1718748]
  • Chen, W., Gu, B., Ye, Q., and Zhu, K. X.(2019), “Measuring and managing the externality of managerial responses to online customer reviews,” Information Systems Research, 30 (1), pp.81-96. [https://doi.org/10.1287/isre.2018.0781]
  • Cheung, M. Y., Luo, C., Sia, C. L., and Chen, H. P.(2009), “Credibility of electronic word-of- mouth: Informational and normative deter- minants of online consumer recommendations,” International Journal of Electronic Commerce, 13(4), pp.9-38 [https://doi.org/10.2753/JEC1086-4415130402]
  • Coleman, M., and Liau, T. L.(1975), “A computer readability formula designed for machine scoring,” Journal of Applied Psychology, 60 (2), pp.283-284. [https://doi.org/10.1037/h0076540]
  • Coursaris, C. K., and Van Osch, W.(2016), “A Cognitive- Affective Model of Perceived User Satisfaction (CAMPUS): The complementary effects and interdependence of usability and aesthetics in IS design,” Information & Management, 53(2), pp.252-264. [https://doi.org/10.1016/j.im.2015.10.003]
  • Eslami, S. P., Ghasemaghaei, M., and Hassanein, K.(2018), “Which online reviews do consumers find most helpful? A multi-method investigation,” Decision Support Systems, 113, pp.32-42. [https://doi.org/10.1016/j.dss.2018.06.012]
  • Falk, S., Hammermann, A., Mohnen, A., and Werner, A.(2013), “Different degrees of informational asymmetry on job markets and its impact on companies’ recruiting success,” Journal of Business Economics, 83, pp.295-317. [https://doi.org/10.1007/s11573-013-0654-8]
  • Fang, B., Ye, Q., Kucukusta, D., and Law, R. (2016), “Analysis of the perceived value of online tourism reviews: Influence of readability and reviewer characteristics,” Tourism Ma- nagement, 52, pp.498-506. [https://doi.org/10.1016/j.tourman.2015.07.018]
  • Fang, J., Hu, L., Liu, X., and Prybutok, V. R. (2022), “Impact of air quality on online restaurant review comprehensiveness,” Electronic Commerce Research, 22, pp.1035-1058. [https://doi.org/10.1007/s10660-020-09445-w]
  • Filieri, R.(2015), “What makes online reviews helpful? A diagnosticity-adoption framework to explain informational and normative influences in e-WOM,” Journal of Business Research, 68(6), pp.1261-1270. [https://doi.org/10.1016/j.jbusres.2014.11.006]
  • Forman, C., Ghose, A., and Wiesenfeld, B.(2008), “Examining the relationship between reviews and sales: The role of reviewer identity dis- closure in electronic markets,” Information Systems Research, 19(3), pp.291-313. [https://doi.org/10.1287/isre.1080.0193]
  • Fu, D., Hong, Y., Wang, K., and Fan, W.(2018), “Effects of membership tier on user content generation behaviors: Evidence from online reviews,” Electronic Commerce Research, 18, pp.457-483. [https://doi.org/10.1007/s10660-017-9266-7]
  • Glassdoor(2019), “A Guide to the Ultimate Candidate Experience,” available at: https://www.glassdoor.com/employers/blog/a-guide-tothe-ultimate-candidate-experience/
  • Guo, B., and Zhou, S.(2017), “What makes population perception of review helpfulness: An infor- mation processing perspective,” Electronic Commerce Research, 17, pp.585-608. [https://doi.org/10.1007/s10660-016-9234-7]
  • Hovland, C. I., Janis, I. L., and Kelley, H. H. (1953). Communication and Persuasion; Psychological Studies of Opinion Change. Yale University Press, New Haven, CT.
  • Huang, A. H., Chen, K., Yen, D. C., and Tran, T. P.(2015), “A study of factors that contribute to online review helpfulness,” Computers in Human Behavior, 48, pp.17-27. [https://doi.org/10.1016/j.chb.2015.01.010]
  • Jiang, Z., and Benbasat, I.(2004). “Virtual product experience: Effects of visual and functional control of products on perceived diagnosticity and flow in electronic shopping,” Journal of Management Information Systems, 21(3), pp.111-147. [https://doi.org/10.1080/07421222.2004.11045817]
  • Kincaid, J. P., Fishburne, R. P., Jr., Rogers, R. L., and Chissom, B. S.(1975), Derivation of New Readability Formulas (Automated Readability Index, Fog Count and Flesch Reading Ease Formula) for Navy Enlisted Personnel, Research Branch Report 8-75, Naval Technical Training Command, Millington, TN. [https://doi.org/10.21236/ADA006655]
  • King, R. A., Racherla, P., and Bush, V. D.(2014), “What We Know and Don’t Know About Online Word-of-Mouth: A Review and Syn- thesis of the Literature,” Journal of Inter- active Marketing, 28(3), pp.167-183. [https://doi.org/10.1016/j.intmar.2014.02.001]
  • Könsgen, R., Schaarschmidt, M., Ivens, S., and Munzel, A.(2018), “Finding meaning in con- tradiction on employee review sites―Effects of discrepant online reviews on job application intentions,” Journal of Interactive Marketing, 43(1), pp.165-177. [https://doi.org/10.1016/j.intmar.2018.05.001]
  • Korfiatis, N., García-Bariocanal, E., and Sánchez- Alonso, S.(2012), “Evaluating content quality and helpfulness of online product reviews: The interplay of review helpfulness vs. review content,” Electronic Commerce Research and Applications, 11(3), pp.205-217. [https://doi.org/10.1016/j.elerap.2011.10.003]
  • Lee, S., and Choeh, J. Y.(2016), “The determinants of helpfulness of online reviews,” Behaviour & Information Technology, 35(10), pp.853-863. [https://doi.org/10.1080/0144929X.2016.1173099]
  • Lerner, J., and Tirole, J.(2002), “Some simple eco- nomics of open source,” The Journal of Industrial Economics, 50(2), pp.197-234. [https://doi.org/10.1111/1467-6451.00174]
  • Li, J., Ge, Y., Hong, Y., Cheema, A., and Gu, B. (2017), “Textual review dimensionality and helpfulness: A multi-method study,” Available at SSRN 2931934. [https://doi.org/10.2139/ssrn.2931934]
  • Li, M., Huang, L., Tan, C. H., and Wei, K. K. (2013), “Helpfulness of online product reviews as seen by consumers: Source and content features,” International Journal of Electronic Commerce, 17(4), pp.101-136. [https://doi.org/10.2753/JEC1086-4415170404]
  • Liang, S., Schuckert, M., and Law, R.(2019), “How to improve the stated helpfulness of hotel reviews? A multilevel approach,” International Journal of Contemporary Hospitality Ma- nagement, 31(2), pp.953-977. [https://doi.org/10.1108/IJCHM-02-2018-0134]
  • Liang, Y., DeAngelis, B. N., Clare, D. D., Dorros, S. M., and Levine, T. R.(2014), “Message characteristics in online product reviews and consumer ratings of helpfulness,” Southern Communication Journal, 79(5), pp.468-483. [https://doi.org/10.1080/1041794X.2014.933870]
  • Liu, Z., and Park, S.(2015), “What makes a useful online review? Implication for travel product websites,” Tourism Management, 47, pp.140- 151. [https://doi.org/10.1016/j.tourman.2014.09.020]
  • Luo, C., Luo, X. R., Schatzberg, L., and Sia, C. L. (2013), “Impact of informational factors on online recommendation credibility: The moderating role of source credibility,” Decision Support Systems, 56, pp.92-102. [https://doi.org/10.1016/j.dss.2013.05.005]
  • Mudambi, S. M., and Schuff, D.(2010), “Research note: What makes a helpful online review? A study of customer reviews on Amazon.com,” MIS Quarterly, 34(1), pp.185-200. [https://doi.org/10.2307/20721420]
  • Mukherjee, P., Parameswaran, S., and Valecha, R. (2021), “Investigating the effect of multi- dimensional review text and anonymity on review helpfulness: An empirical investigation in the context of employer review sites,” 54th Hawaii International Conference on System Sciences. [https://doi.org/10.24251/HICSS.2021.526]
  • Pirolli, P., and Card. S.(1999), “Information foraging,” Psychological Review, 106(4), pp.643-675. [https://doi.org/10.1037//0033-295X.106.4.643]
  • Parameswaran, S., Mukherjee, P., and Valecha, R. (2023), “I Like My Anonymity: An Empirical Investigation of the Effect of Multidimensional Review Text and Role Anonymity on Helpfulness of Employer Reviews,” Information Systems Frontiers, 25(2), pp.853-870. [https://doi.org/10.1007/s10796-022-10268-3]
  • Racherla, P., and Friske, W.(2012), “Perceived ‘usefulness’ of online consumer reviews: An exploratory investigation across three services categories,” Electronic Commerce Research and Applications, 11(6), pp.548-559. [https://doi.org/10.1016/j.elerap.2012.06.003]
  • Rietsche, R., Frei, D., Stöckli, E., and Söllner, M. (2019), “Not all reviews are equal—A literature review on online review helpfulness,” European Conference on Information Systems, Stockholm- Uppsala, Sweden.
  • Salehan, M., and Kim, D. J.(2016), “Predicting the performance of online consumer reviews: A sentiment mining approach to big data analytics,” Decision Support Systems, 81, pp.30-40. [https://doi.org/10.1016/j.dss.2015.10.006]
  • Siering, M., Muntermann, J., and Rajagopalan, B. (2018), “Explaining and predicting online review helpfulness: The role of content and reviewer-related signals,” Decision Support Systems, 108, pp.1-12. [https://doi.org/10.1016/j.dss.2018.01.004]
  • Sparks, B. A., So, K. K. F., and Bradley, G. L. (2016), “Responding to negative online reviews: The effects of hotel responses on customer inferences of trust and concern,” Tourism Management, 53, pp.74-85. [https://doi.org/10.1016/j.tourman.2015.09.011]
  • Spence, M.(2002), “Signaling in retrospect and the informational structure of markets,” American Economic Review, 92(3), pp.434-459. [https://doi.org/10.1257/00028280260136200]
  • Xie, K. L., Zhang, Z., and Zhang, Z.(2014), “The business value of online consumer reviews and management response to hotel performance,” International Journal of Hospitality Manage- ment, 43, pp.1-12. [https://doi.org/10.1016/j.ijhm.2014.07.007]
  • Zakaluk, B. L., and Samuels, S. J.(1988), Readability: Its Past, Present, and Future, ERIC No. ED292058, International Reading Association, Newark, DE.
  • Zhao, X., Wang, L., Guo, X., and Law, R. (2015), “The influence of online reviews to online hotel booking intentions,” International Journal of Contemporary Hospitality Management, 27(6), pp.1343-1364. [https://doi.org/10.1108/IJCHM-12-2013-0542]
  • Zheng, L.(2021), “The classification of online con- sumer reviews: A systematic literature review and integrative framework,” Journal of Business Research, 135, pp.226-251. [https://doi.org/10.1016/j.jbusres.2021.06.038]

∙ The author Sung Jun Woo is currently working at the US-based health-tech startup, Need. He graduated from Hanyang University Business School and earned a Master of Science degree in Management Information Systems from the Graduate School of Business at Seoul National University. His primary research areas include the macroeconomic impact of IT, big data analysis, and data-driven decision-making in startups.

∙ The author Daye Um is a Ph.D. candidate at Seoul National University. She graduated from the Georgia Institute of Technology and earned a Master's degree from Seoul National University. Her main research interests include social media analysis, AI-based platform analysis, and data network effects.

∙ The author Wooje Cho is an associate professor of SNU Business School at the Seoul National University, He earned his Ph.D. in business administration from the University of Illinois at Urbana-Champaign. His recent research interests include M&A with IT firms, AI and decision-making, impact of ICT on income equality, and strategic IT management.