Influence mechanism of online consumer comments on e‐retailer

Yong, Liu; Gan, Wen‐xue; Ren, Wenwen

doi:10.1002/mde.3296

Cited by 8 publications

(3 citation statements)

References 39 publications

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“…Accordingly, Dehghan-Bonari and Heydari (2022) develop and compare two different contractual mechanisms from the standpoint of the green manufacturer/retailer and the supply chain. Liu et al (2021a, 2021b) regarded that consumers were inevitably affected by reviews and would interfere with reviews to decide whether to buy, thus affecting manufacturers’ online market demand, and then online reviews affected pricing strategies. Huang et al (2021) believed that online reviews would have an impact on the supply chain and then affect the pricing of supply chain members (Jiang and Yang, 2020; Yao et al , 2021).…”

Section: Related Literaturementioning

confidence: 99%

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

Liu,

Lin,

Zhao

2024

JBIM

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Purpose The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a two-part tariff coordination mechanism. Design/methodology/approach To deal with this pricing conflict problems of dual-channel supply chain consisting of dominant manufacturer and a retailer, considering the fact that online reviews and in-sale service are important factors on consumers’ purchase decisions, the authors establish some basic models and exploit them to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a profit-sharing coordination mechanism. Findings The results show that the optimal online direct selling price is positively correlated with product perceived quality obtained from online reviews and negatively correlated with the in-sale service. The traditional retail price is positively correlated with the in-sale service and weakly correlated with online reviews. For the manufacturer and retailer, whether decentralized decision or coordination contract, their profits increase with the increase of the in-sale service in a certain range and quality perceived from spontaneous online reviews. Online reviews and in-sale service are important factors on consumers’ purchase decisions. Positive in-sale services and online reviews can provide consumers with a better shopping experience, thereby promoting their enthusiasm for shopping and improving their quality of life. The two-part tariff coordination mechanism improves the profits of the manufacturer and the traditional retailer, respectively, through the transfer fee. Originality/value The proposed approach can well analyze the channel conflicts and pricing problems between retailers and manufacturers with respect to product offline price and online price. The analysis and results can inform decision-making for manufacturers and retailers.

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Section: Related Literaturementioning

confidence: 99%

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

Liu,

Lin,

Zhao

2024

JBIM

Self Cite

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“…However, due to the exaggerations of business advertisements, consumers no longer fully trust the information presented through these promotion efforts and thus rely more on user-generated reviews (Liu et al, 2021). For example, as one of Apple's advertisements states, "iPhone changes everything," consumers are cautious in whether it is worth it for them to purchase a mobile phone given such an exaggerated advertising strategy.…”

Section: Introductionmentioning

confidence: 99%

The effect of online reviews' information on quality and pricing decisions

2023

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Consumers often rely on the peer reviews to make smart purchase decisions in the face of new experience products. Such information is also available to firms, which can help them learn about consumers' purchase intention and hence better deal with the tripartite price–quality–demand relationship. In this study, we develop a two‐period model to examine the impact of online reviews on product quality and price decisions. The market is characterized by the two‐dimensional heterogeneity of customer valuation and their willingness to pay for quality. Interestingly, we find that the informativeness of reviews plays different roles in firm–consumer interactions depending on the market's average willingness to pay (AWTP). Such informativeness exerts an information value‐added on both the firm and consumers in a high‐AWTP market and a negative impact in a low‐AWTP market. These two effects respectively induce consumers to purchase more in the high‐AWTP market while expel consumers from the market in the low‐AWTP market. We also compare the price path and quality level under commitment pricing and dynamic pricing both with and without informativeness, the results of which show that the information inducing effect changes the marketing strategies for new products. Furthermore, we present the conditions on which the firm should strive to disclose its quality information and explore the difference of firms' decisions in monopoly and competitive market.

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“…Online customer reviews provide diverse information about online products from various perspectives (Zhao et al, 2013) and help customers to evaluate such products or services 1 (Cheng & Loi, 2014; Sparks et al, 2016). It has become increasingly common for customers to refer to online customer reviews when gathering pre‐purchase product information (Beneke et al, 2016; Liu et al, 2021). Positive reviews created by other customers indicate a product's quality and reputation (Haddara et al, 2020) and create trust between potential customers and merchants (Tang, 2017), which are highly beneficial for merchants and online sales.…”

Section: Introductionmentioning

confidence: 99%

When crowding‐in and when crowding‐out? The boundary conditions on the relationship between negative online reviews and online sales

Shen

Wang

2021

Manage Decis Econ

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Drawing on the motivation crowding theory, we propose a novel framework concerning the moderating effects of customer‐initiated reviews and merchant‐initiated replies on the relationship between negative online reviews and online sales performance. Using 14,096 online reviews collected from http://Meituan.com, we found that the detrimental effect of negative online reviews will be mitigated with a greater level of customer‐initiated reviews and a medium level of merchant‐initiated replies. This study enhances the current understanding of the dyadic interaction between online customers and offline merchants, thereby suggesting the crowding‐in and crowding‐out effects of the merchant online replies toward negative online reviews.

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Influence mechanism of online consumer comments on e‐retailer

Cited by 8 publications

References 39 publications

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

A pricing strategy of dual-channel supply chain considering online reviews and in-sale service

The effect of online reviews' information on quality and pricing decisions

When crowding‐in and when crowding‐out? The boundary conditions on the relationship between negative online reviews and online sales

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