Great remains great, weak becomes weaker? Examining the influence of platform’s signaling cues on provider performance

In the evolving domain of access-based services characterized by intricate multi-actor interactions, understanding the determinants of provider performance is vital. This study investigates the moderating role of platform-based signaling cues on the relationship between customer experience (CX) and provider performance. We utilize a mixed-methods approach, integrating text mining to quantify CX from customer reviews and panel data fixed-effects regression to assess performance outcomes. Our findings reveal an asymmetry in the impact of CX based on platform signals: non-signaled providers suffer more from negative experiences than their signaled counterparts, while positive experiences do not exhibit a differential impact. Interestingly, customer-reviewed ratings dampen the adverse effects of negative CX, serving as a substitute for platform endorsement. Moreover, high dispersion in customer feedback enhances the benefits of positive CX for signaled providers. These insights offer actionable strategies for access-based companies to optimize customer touchpoints and foster enhanced service delivery.