The Impact of Social Media on Consumer Choice in the Restaurant Industry
Hanyu Jia
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
This research explores the impact of social media—specifically online reviews—on consumer choice in the restaurant industry, using Gopchang Story BBQ, a Korean BBQ restaurant in New York City, as a case study. With over 600 Yelp reviews (4.1-star rating) and 800 Google reviews (4.2-star rating), the restaurant provides a strong dataset to examine how digital feedback influences customer decisions.Grounded in the theories of electronic word-of-mouth (eWOM) and social proof, this study investigates how online reviews function as signals of quality and value. We analyzed review data from Yelp and Google using sentiment analysis and keyword extraction, comparing rating patterns, sentiment trends, and pricing perceptions across both platforms.The research identifies key independent variables such as star ratings, review volume, and price-related sentiment. Dependent variables include customer traffic, brand reputation, and consumer behavior. The analysis shows that Google users tend to leave more favorable reviews, while Yelp users are more critical and price-conscious. A strong positive correlation is observed between higher ratings and increased customer interest.The study highlights significant platform-specific differences in consumer behavior and provides practical insights for restaurants to tailor their online engagement and pricing strategies accordingly. Additionally, the research offers a financial perspective by interpreting brand reputation as an intangible asset that may influence risk perception and business value.Overall, this project contributes to a deeper understanding of the strategic role social media plays in modern restaurant marketing and consumer engagement.