Decomposing the effects of online customer reviews on brand, price, and product attributes

Kostyra, Daniel S.; Reiner, Jochen; Natter, Martin; Klapper, Daniel

doi:10.1016/j.ijresmar.2014.12.004

Cited by 198 publications

(154 citation statements)

References 37 publications

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“…However, this idea may only hold true for reviews posted on external review websites or blogs, but not on retailer websites (Duan, Gu, and Whinston 2008a;Kostyra et al 2016). In line with such a theory, online reviews posted on a retailer's internal website have been shown to have a limited influence on sales rank of high-involvement goods (Gu, Park, and Konana 2012).…”

Section: Discussionmentioning

confidence: 99%

“…These two product characteristics can serve as cues signifying product quality and hence they can decrease uncertainty and simplify decision process (Kostyra et al 2016). The analysis shows that the effect of price differs per product category.…”

Section: Discussionmentioning

confidence: 99%

“…For example, volume may be a moderator of valence (cf., Kostyra et al 2016). According to the selective attention theory (Treisman 1969), people are not able to process and respond to all the stimuli, because their processing capacity is limited.…”

Section: Limitations Alternative Explanations Future Research and mentioning

confidence: 99%

“…To control for some of those variables we included price in our analysis, but future studies should investigate how price influences the effects of online reviews. For example, the role of price has been shown to decrease when online reviews are present (Kostyra et al 2016), but it is also plausible that the importance of online reviews differs depending on the product price.…”

Section: Limitations Alternative Explanations Future Research and mentioning

confidence: 99%

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Too good to be true: the role of online reviews’ features in probability to buy

Masłowska¹,

Malthouse

Bernritter

2016

International Journal of Advertising

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Online consumer reviews are broadly believed to be a necessary and powerful marketing tool, and as such they have attracted considerable attention from both marketers and academics. However, previous research has not sufficiently focused on the effects of various review features on sales but rather used proxy measures such as consumers' purchase intention or perceived helpfulness of reviews. Hence, the aim of this study was to investigate the effect of review valence and volume on actual sales. We use data from three different e-commerce websites and study light bulbs, women's athletic shoes, natural hair care products, and herbal vitamins. The results show that, contrary to popular belief, more positive ratings do not simply result in higher sales. We find that the effect can be nonlinear, where the probability of purchase increases with rating to about 4.2À4.5 stars, but then decreases. Also, although the majority of extant research suggests that larger numbers of reviews bring more positive outcomes, we show that it is not always the case.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Limitations Alternative Explanations Future Research and mentioning

confidence: 99%

Section: Limitations Alternative Explanations Future Research and mentioning

confidence: 99%

See 2 more Smart Citations

Too good to be true: the role of online reviews’ features in probability to buy

Masłowska¹,

Malthouse

Bernritter

2016

International Journal of Advertising

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“…The common belief behind the relationship between online reviews and sales is that potential consumers could acquire information about the product or the vendor from the information so that reviews influence sales in a consistent manner. Therefore, a considerable amount of research has paid the primary attention to the product information contained in reviews [12,23]. However, in comparison to detailed information contained in reviews, the product rating information provides more direct and observable cues to a product's qualities.…”

Section: Online Social Informationmentioning

confidence: 99%

Who do We Listen to More: Opinion Leaders or Friends? The Social Function of Conformity Behavior in Social Commerce

Jia¹,

Liu

2017

Proceedings of the 50th Hawaii International Conference on System Sciences (2017)

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Search characteristics, online consumer ratings, and beer prices

Rousseau,

Joly,

Poelmans

2023

Agribusiness

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Experience and credence characteristics are hard to assess when consumers select food products. Therefore, consumers who are unfamiliar with specific products typically use search characteristics as a proxy for product quality. As search characteristics are pivotal in consumers' decisions, we expect them to be reflected in the resulting product prices in the beer market. Besides traditional search characteristics such as beer color or fermentation type, new search characteristics such as online consumer ratings are emerging in beer markets all over the world. Thus, we use a hedonic price estimation to learn about the relative importance of traditional versus new search characteristics in the Belgian beer market. Specifically, the beer prices for 1517 different beer products of two large beer retailers are investigated to compare the role of traditional beer characteristics—color, fermentation type, beer style, origin, brewery type, and alcohol percentage—with the role of online beer ratings from the platform RateBeer.com. We find that while traditional characteristics still play a key role in the beer market, the role of online ratings seems dependent on the retail context [EconLit Citations: C36 Instrumental Variables Estimation, D83 Search—Communication, Q11 Agriculture—Prices, Q18 Food Policy].

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Decomposing the effects of online customer reviews on brand, price, and product attributes

Cited by 198 publications

References 37 publications

Too good to be true: the role of online reviews’ features in probability to buy

Too good to be true: the role of online reviews’ features in probability to buy

Who do We Listen to More: Opinion Leaders or Friends? The Social Function of Conformity Behavior in Social Commerce

Search characteristics, online consumer ratings, and beer prices

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