The stimulation and inhibition effects of elite E-WOM: Does elite saturation backfire?

Purpose This study aims to reveal an inverted U-shaped relationship, showing that a moderate number of elite reviews stimulate the generation of subsequent peer reviews in both volume and novelty, while an excessive number of elite reviews inhibit it. Design/methodology/approach We empirically support our framework using the Yelp Academic Dataset, which includes 500,013 reviews of 2,533 restaurants from 2004 to 2022. We use text mining to convert review texts into quantitative indexes and apply the Heckman two-stage model and propensity score matching to address potential endogeneity issues with robust results. Additionally, we employ GuidedLDA to classify restaurants into four types, highlighting the heterogeneity of our findings. Findings While elite endorsements motivate peers to contribute, excessively increasing elites can be seen as manipulative, discouraging customer opinions. We also identify an inverted U-shaped pattern in elite impact on subsequent peer review novelty, where increasing elites limit topics, hindering novelty. Research limitations/implications Future research should assess our findings’ generalizability in other geographical locations and cultures. Practical implications Our findings help managers find the right balance in elite engagement, maximizing the benefits of elite recommendations while avoiding elite saturation and audience fatigue. Managers should carefully assess their elite recommendation strategies, emphasizing trust, authenticity and individuality within their audience. This ensures companies do not over-rely on elite recommendations, leading to a more effective and sustainable strategy. Originality/value This study addresses an identified need; that is, how elites’ past opinions influence peers’ future opinions, uncovering the potential inhibition effects of elites on the quantity and novelty of peer-generated content.