Blessing in disguise? Environmental shocks and performance enhancement

Agarwal, S., Wang, L., & Yang, Z. Blessing in disguise? Environmental shocks and performance enhancement. Journal of Economic Behavior and Organization, forthcoming, http://dx.doi.org/10.2139/ssrn.3218812
This study investigates the impact of unexpected air pollution events, like haze, on customer satisfaction and the performance of service-oriented companies. By analyzing data from four major hotel-booking websites and employing machine learning techniques such as sentiment analysis and topic modeling, we identified a significant decrease in consumer satisfaction during haze periods. This decline is attributed to the negative moods of guests rather than any decline in the quality of hotel services during air pollution shocks. Interestingly, we observed a quick recovery in consumer satisfaction after the haze period, linked to improved service quality. Notably, this positive response is more pronounced when hoteliers actively monitor their online reviews during haze episodes.