The Impact of Increase in Minimum Wages on Consumer Perceptions of Service: A Transformer Model of Online Restaurant Reviews

Published Online:https://doi.org/10.1287/mksc.2021.1294

References

  • Abadie A, Diamond A, Hainmueller J (2010) Synthetic control methods for comparative case studies: Estimating the effect of California’s tobacco control program. J. Amer. Statist. Assoc. 105(490):493–505.CrossrefGoogle Scholar
  • Aaronson D, French E (2007) Product market evidence on the employment effects of the minimum wage. J. Labor Econom. 25(1):167–200.CrossrefGoogle Scholar
  • Aaronson D, French E, McDonald J (2008) The minimum wage, restaurant prices, and labor market structure. J. Human Resources 43(3):688–720.Google Scholar
  • Allegretto S, Reich M (2018) Are local minimum wages absorbed by price increases? Estimates from internet-based restaurant menus. Indust. Labor Relations Rev. 71(1):35–63.CrossrefGoogle Scholar
  • Anderson E, Fornell C, Rust R (1997) Customer satisfaction, productivity, and profitability: Differences between goods and services. Marketing Sci. 16(2):129–145.LinkGoogle Scholar
  • Archak N, Ghose A, Ipeirotis PG (2011) Deriving the pricing power of product features by mining consumer reviews. Management Sci. 57(8):1485–1509.LinkGoogle Scholar
  • Athey S, Bayati M, Doudchenko N, Imbens G, Khosravi K (2018) Matrix completion methods for causal panel data models. NBER Working Paper No. 25132, National Bureau of Economic Research, Cambridge, MA.CrossrefGoogle Scholar
  • Autor DH, Manning A, Smith CL (2016) The role of the minimum wage in the evolution of U.S. wage inequality over three decades: A modest re-assessment. Amer. Econom. J. Appl. Econom. 8(1):58–99.CrossrefGoogle Scholar
  • Bell B, Machin S (2018) Minimum wages and firm value. J. Labor Econom. 36(1):159–195.CrossrefGoogle Scholar
  • Bhorat H, Kanbur R, Stanwix B (2014) Estimating the impact of minimum wages on employment, wages, and non-wage benefits: The case of agriculture in South Africa. Amer. J. Agricultural Econom. 96(5):1402–1419.CrossrefGoogle Scholar
  • Blei DM, Ng AY, Jordan MI (2003) Latent Dirichlet allocation. J. Machine Learn. Res. 3:993–1022.Google Scholar
  • Brickely J, Dark F (1987) The choice of organizational form: The case of franchising. J. Financial Econom. 18(2):401–420.CrossrefGoogle Scholar
  • Card D, Krueger A (1994) Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania. Amer. Econom. Rev. 84(4):772–793.Google Scholar
  • Chakrabarti S, Devaraj S, Patel P (2020) Minimum wage and restaurant hygiene violations: Evidence from Seattle. Managerial Decision Econom. 42(1):85–99.CrossrefGoogle Scholar
  • Cronin JJ, Taylor SA (1992) Measuring service quality: A reexamination and extension. J. Marketing 56(3)55–68.CrossrefGoogle Scholar
  • Devlin J, Chang MW, Lee K, Toutanova K (2019) BERT: Pre-training of deep bidirectional transformers for language understanding. Proc. 2019 Conf. North Amer. Chapter Assoc. Comput. Linguistics: Human Language Tech. (Association for Computational Linguistics, Stroudsburg, PA), 4171–4186.Google Scholar
  • Dube A, Lester TW, Reich M (2010) Minimum wage effects across state borders: Estimates using contiguous counties. Rev. Econom. Statist. 92(4):945–964.CrossrefGoogle Scholar
  • Ghose A, Ipeirotis PG, Li B (2012) Designing ranking systems for hotels on travel search engines by mining user-generated and crowdsourced content. Marketing Sci. 31(3):493–520.LinkGoogle Scholar
  • Grossman JB (1983) The impact of the minimum wage on other wages. J. Human Resources 18(3):359–378.CrossrefGoogle Scholar
  • Guo T, Sriram S, Manchanda P (2020) “Let the sunshine in”: The impact of industry payment disclosure on physician prescription behavior. Marketing Sci. 39(3):516–539.LinkGoogle Scholar
  • International Labor Organization (2015) Minimum wage policy guide ILO. https://www.ilo.org/global/docs/WCMS_508566/lang--en/index.htm.Google Scholar
  • Kamakura W, Mittal V, de Rosa F, Mazzon JA (2002) Assessing the service-profit chain. Marketing Sci. 21(3):294–317.LinkGoogle Scholar
  • Kim Y (2014) Convolutional neural networks for sentence classification. Proc. 2014 Conf. Empirical Methods Natural Language Processing (Association for Computational Linguistics, Stroudsburg, PA), 1746–1751.CrossrefGoogle Scholar
  • Lafontaine F (1992) Agency theory and franchising: Some empirical results. RAND J. Econom. 23(2):263–283.CrossrefGoogle Scholar
  • Lafontaine F, Shaw K (2005) Targeting managerial control: Evidence from franchising. RAND J. Econom. 36(1):131–150.Google Scholar
  • Lee TY, Bradlow ET (2011) Automated marketing research using online customer reviews. J. Marketing Res. 48(5):881–894.CrossrefGoogle Scholar
  • Lin T, Goyal P, Girshick R, He H, Dollar P (2017) Focal loss for dense object detection. IEEE Internat. Conf. Comput. Vision (ICCV), 2999–3007.Google Scholar
  • Liu X, Lee D, Srinivasan K (2019a) Large-scale cross-category analysis of consumer review content on sales conversion leveraging deep learning. J. Marketing Res. 56(6):918–943.CrossrefGoogle Scholar
  • Liu Y, Ott M, Goyal N, Du J, Joshi M, Chen D, Levy O, Lewis M, Zettlemoyer L, Stoyanov V (2019b) RoBERTa: A robustly optimized BERT pretraining approach. Preprint, submitted July 26, https://arxiv.org/abs/1907.11692.Google Scholar
  • Lovett MJ, Peres R, Xu L (2019) Can your advertising really buy earned impressions? The effect of brand advertising on word of mouth. Quant. Marketing Econom. 17:215–255.CrossrefGoogle Scholar
  • Matthews BW (1975) Comparison of the predicted and observed secondary structure of T4 phage lysozyme. Biochimica et Biophysica Acta Protein Structure 405(2):442–451.CrossrefGoogle Scholar
  • McBride S (2017) Minimum wage hikes are causing business to cut jobs. Business Insider (March 16), http://www.businessinsider.com/minimum-wage-leads-to-job-losses-2017-3.Google Scholar
  • Mikolov T, Corrado G, Chen K, Dean J (2013a) Efficient estimation of word representations in vector space. Bengio Y, Lecun Y, eds. Proc. Internat. Conf. Learn. Representations, 1–12.Google Scholar
  • Mikolov T, Sutskever I, Chen K, Corrado G, Dean J (2013b) Distributed representations of words and phrases and their compositionality. Burges CJC, Bottou L, Welling M, Ghahramani Z, Weinberger KQ, eds. Proc. 26th Internat. Conf. Neural Inform. Processing Systems, vol. 26 (Curran Associates, Red Hook, NY), 3111–3119.Google Scholar
  • Netzer O, Feldman R, Goldenberg J, Fresko M (2012) Mine your own business: Market-structure surveillance through text mining. Marketing Sci. 31(3):521–543.LinkGoogle Scholar
  • Neumark D, Wascher W (2000) A case study of the fast-food industry in New Jersey and Pennsylvania: Comment. Amer. Econom. Rev. 90(5):1362–1396.CrossrefGoogle Scholar
  • Okrent A, Alston J (2012) The demand for disaggregated food-away-from-home and food-at-home products in the United States. Economic Research Service Report No. 139, United States Department of Agriculture, Washington, DC.CrossrefGoogle Scholar
  • Parasuraman A, Zeithaml V, Berry L (1988) A multiple item scale for measuring consumer perceptions of service quality. J. Retailing 64(1):12–37.Google Scholar
  • Parasuraman AA, Zeithaml VA, Berry LL (1991) Refinement and reassessment of the SERVQUAL instrument. J. Retailing 67(4):420–450.Google Scholar
  • Pattabhiramaiah A, Sriram S, Manchanda P (2019) Paywalls: Monetizing online content. J. Marketing 83(2):19–36.CrossrefGoogle Scholar
  • Pennington J, Socher R, Manning CD (2014) GloVe: Global vectors for word representation. Proc. 2014 Conf. Empirical Methods Natural Language Processing (Association for Computational Linguistics, Stroudsburg, PA), 1532–1543.CrossrefGoogle Scholar
  • Puranam D, Narayan V, Kadiyali V (2017) The effect of calorie posting regulation on consumer opinion: A flexible latent Dirichlet allocation model with informative priors. Marketing Sci. 36(5):726–746.LinkGoogle Scholar
  • Rensi E (2016) Thanks to “fight for $15” minimum wage, McDonald’s unveils job-replacing self-service kiosks nationwide. Forbes (November 29), https://www.forbes.com/sites/realspin/2016/11/29/thanks-to-fight-for-15-minimum-wage-mcdonalds-unveils-job-replacing-self-service-kiosks-nationwide/#19fde2214fbc.Google Scholar
  • Rouse J (2013) Paying the living wage benefits business as well as employees Wired (November 4), https://www.wired-gov.net/wg/wg-news-1.nsf/article/Paying+the+Living+Wage+benefits+business+as+well+as+employees+05112013123000?open.Google Scholar
  • Schneider B, White S, Paul M (1998) Linking service climate and customer perceptions of service quality: Test of a causal model. J. Appl. Psych. 83(2):150–163.CrossrefGoogle Scholar
  • Seipel T (2012) Minimum wage: Report sees overall negative effect of San Jose’s Measure D. Mercury News (October 8), https://www.mercurynews.com/2012/10/08/minimum-wage-report-sees-overall-negative-effect-of-san-joses-measure-d/.Google Scholar
  • Selyukh A (2021) Biden to call for raising federal minimum wage to $15 an hour. NPR (January 15), https://www.npr.org/2021/01/15/957371280/biden-to-call-for-raising-federal-minimum-wage-to-15-an-hour.Google Scholar
  • Shapiro C, Stiglitz J (1984) Equilibrium unemployment as worker discipline device. Amer. Econom. Rev. 74(3):433–444.Google Scholar
  • Shepard A (1993) Contractual form, retail price, and asset characteristics in gasoline retailing. RAND J. Econom. 24(1):58–77.CrossrefGoogle Scholar
  • Simon D, Gomez M, McLaughlin E, Wittink D (2009) Employee attitudes, customer satisfaction, and sales performance: Assessing the linkages in US grocery stores. Managerial Decision Econom. 30(1):27–41.CrossrefGoogle Scholar
  • Smith LN (2018) A disciplined approach to neural network hyper-parameters: Part 1—learning rate, batch size, momentum, and weight decay. Preprint, submitted March 26, https://arxiv.org/abs/1803.09820.Google Scholar
  • Sorenson T (1948) A method of establishing groups of equal amplitudes in plant sociology based on similarity of species content and its application to analyses of the vegetation on Danish Commons. Kongelige Danske Videnskabernes Selskab, Biologiske Skrifter 5:1–34.Google Scholar
  • Sun C, Qiu X, Xu Y, Huang X (2019) How to fine-tune BERT for text classification? Sun M, Huang X, Ji H, Liu Z, Liu Y, eds.. Chinese Computational Linguistics, Lecture Notes in Computer Science, vol. 11856 (Springer, Cham).CrossrefGoogle Scholar
  • Taylor K (2018) America’s fast food chains are contemplating replacing minimum wage workers with robots—And it could lead to a crisis. Bus. Insider (January 11), http://www.businessinsider.com/minimum-wage-increases-spur-fast-food-chains-to-consider-automation-2018-1.Google Scholar
  • Timoshenko A, Hauser JR (2019) Identifying customer needs from user-generated content. Marketing Sci. 38(1):1–20.LinkGoogle Scholar
  • Tirunillai S, Tellis G (2014) Mining marketing meaning from chatter: Strategic brand analysis of big data using latent Dirichlet allocation. J. Marketing Res. 51(4):463–479.CrossrefGoogle Scholar
  • Vapnik VN (1995) The Nature of Statistical Learning Theory (Springer, New York).CrossrefGoogle Scholar
  • Vaswani A, Shazeer N, Parmar N, Uszkoreit J, Jones L, Gomez AN, Kaiser L, Polosukhin I (2017) Attention is all you need. von Luxburg U, Guyon I, Bengio S, Wallach HM, Fergus R, eds. Advances in Neural Information Processing Systems, vol. 31 (Curran Associates, Red Hook, NY), 6000–6010.Google Scholar
  • Xu Y (2017) Generalized synthetic control method: Causal inference with interactive fixed effects models. Political Anal. 25(1):57–76.CrossrefGoogle Scholar
  • Yang Z, Dai Z, Yang Y, Carbonell J, Salakhutdinov R, Le QV (2019) XLNet: Generalized autoregressive pretraining for language understanding. Preprint, submitted June 19, https://arxiv.org/abs/1906.08237.Google Scholar
  • Zablah A, Carlson B, Donovan D, Maxham J, Brown T (2016) A cross-lagged test of the association between customer satisfaction and employee job satisfaction in a relational context. J. Appl. Psych. 101(5):743–755.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.