How do extrinsic cues influence consumers' online hotel booking decisions? An event-related potential experiment

Booking decision is a typical decision-making behavior in hospitality, while the neural processing of it is still unclear. To address this issue, with the help of event-related potential (ERP), this work uncovered the neural mechanism of the influence of two extrinsic cues, namely, brand familiarity (familiar vs. unfamiliar) and online reviews (positive vs. negative) on online hotel booking decisions. Behavioral results indicated that the booking rate under the condition of positive reviews was higher than that of negative reviews. In addition, the response time in the case of familiar brands was longer than that of unfamiliar brands. ERP results showed that the P200 amplitude of familiar brands was smaller than that of unfamiliar brands, while for the late positive potential amplitude, the opposite was the case. It is suggested that in the early stage of cognitive processing, unfamiliar brands evoke more automatic and unconscious attention while in the later stage, familiar brands attract more conscious attention. This study also found that the N400 amplitude of negative online reviews was larger than that of positive online reviews, indicating that negative stimuli can result in a larger emotional conflicts than that of positive stimuli. This study provides new insights into the neural mechanism of online booking decisions in the hospitality.