Do Repeat Customers Effectively Attract New Customers? Reconsidering Customer Influence Value of Repeat Customers

In the hospitality industry, repeat customers are recognized for their significant contributions, not just because they visit a business again but also because they generate strong word-of-mouth impacts on potential customers’ decisions. However, the quality of repeat customers’ word-of-mouth should be reconsidered for its pivotal role in influencing new customers. This research examines the effectiveness of repeat customers’ word-of-mouth compared to first-time customers. Employing a multi-study, multi-method approach, the study examines whether the quality and usefulness of online reviews written by repeat customers is indeed superior to those of first-time customers, through text analysis (Study 1), an experiment (Study 2), and a regression analysis utilizing secondary data (Study 3). Contrary to common belief, the results of the three studies reveal that repeat customers’ reviews do not surpass those of first-time customers in terms of quality, usefulness, or attracting new customers, highlighting the importance of considering quality when assessing customers’ indirect contributions.