And Suddenly, the Rain! How Surprises Shape Experienced Utility

Quaderni - Working Paper DSE N° 1185

35 Pages Posted: 13 May 2023

See all articles by Paolo Figini

Paolo Figini

University of Bologna - Department of Economics; University of Bologna - CAST - Centre for Advanced Studies in Tourism

Veronica Leoni

University of Bologna - CAST - Centre for Advanced Studies in Tourism

Laura Vici

University of Bologna - Department of Statistics; University of Bologna

Date Written: April 21, 2023

Abstract

The utility associated with a service’s consumption is contingent on its intrinsic characteristics and various situational factors. One key element that influences consumer satisfaction is adherence to prior expectations. This is particularly relevant for experience goods that highly depend on external factors, such as weather. On these premises, the current study explores the role of expectations on utility by analyzing the effect of weather surprises (i.e., the mismatch between forecast and realized weather) on online ratings. Results from the analysis of over 300,000 reviews posted on Booking.com indicate that weather surprises have an impact on the reported experienced utility, the effect depending on the sign of the surprise. Moreover, the consumption span moderates the surprise effect, thereby mitigating the impact of both positive and negative surprises on utility.

Keywords: Weather bias, surprise effect, online reputation, experienced utility, online platforms

JEL Classification: D83, D91, L81, Q54

Suggested Citation

Figini, Paolo and Leoni, Veronica and Vici, Laura, And Suddenly, the Rain! How Surprises Shape Experienced Utility (April 21, 2023). Quaderni - Working Paper DSE N° 1185, Available at SSRN: https://ssrn.com/abstract=4446024 or http://dx.doi.org/10.2139/ssrn.4446024

Paolo Figini

University of Bologna - Department of Economics ( email )

Piazza Scaravilli 2
Bologna, 40126
Italy

HOME PAGE: http://www2.dse.unibo.it/dsa/profile.php?id=33

University of Bologna - CAST - Centre for Advanced Studies in Tourism ( email )

Via Angherà 22
Rimini, RN 47922
Italy

Veronica Leoni (Contact Author)

University of Bologna - CAST - Centre for Advanced Studies in Tourism ( email )

Laura Vici

University of Bologna - Department of Statistics ( email )

Via Belle Arti, 41
Bologna, Bologna 40126
Italy
0541434253 (Phone)

University of Bologna ( email )

Via Belle Arti
Bologna, 40121
Italy
0541434312 (Phone)

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