The Effect of Individual Online Reviews on Purchase Likelihood

Vana, Prasad; Lambrecht, Anja

doi:10.1287/mksc.2020.1278

Cited by 59 publications

(22 citation statements)

References 31 publications

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“…For instance, Chevalier and Mayzlin (2006) argue that reviews from Amazon tend to be overwhelmingly positive; thus, whenever consumers see a negative review, it leaves bigger impact on them. Vana and Lambrecht (2021) show that negative reviews have stronger effects than positive ones if they are placed on the top positions. Tang et al.…”

Section: Resultsmentioning

confidence: 94%

The design of retailers' online review systems – a systematic literature review and future research agenda

Pham,

Steinmann,

Jensen

2023

IJRDM

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PurposeIn this paper the authors aim to review the state-of-the-art literature on online review systems and their impacts on consumer behavior and retailers' performance with the aim of identifying research gaps related to different design features of review systems and developing future research agenda.Design/methodology/approachThe authors conducted a systematic review based on PRISMA 2020 protocol, focusing on studies published in the domains of retailing and marketing. This procedure resulted in 48 selected papers investigating the design features of retailer online review systems.FindingsThe authors identify eight design features that are controllable by retailers in an online review system. The design features have been researched independently in previous literature, with some features receiving more attention. Most selected studies focus on the design features adapted metrics and review presentations, while other features are generally neglected (e.g. rating dimensions). Previous literature argues that design features affect consumer behaviors and retailers' performance. However, the interactions among the features are still neglected in the literature, creating a relevant gap for future research.Originality/valueThis paper distinguishes between different types of retailer online review systems based on how they are implemented. The authors summarize the state-of-the-art of relevant literature on design features of online review systems and their effects on consumer- and retailer-related outcome variables. This systematic literature review distinguishes between online reviews provided on websites controlled by retailers (internal systems) and third-party websites (external systems).

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Section: Resultsmentioning

confidence: 94%

The design of retailers' online review systems – a systematic literature review and future research agenda

Pham,

Steinmann,

Jensen

2023

IJRDM

View full text Add to dashboard Cite

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“…Before evaluating our competing hypothesis, we attempted to replicate the recent empirical findings that top reviews can influence sales above and beyond average ratings under certain conditions (Jabr & Rahman, in press; Liu et al., 2019; Vana & Lambrecht, 2021). We performed an analysis to evaluate how the difference between the ratings of the 10 reviews on the first review page and the average rating of the app (

Diff{10_{it}}

) affects app rankings.…”

Section: Studymentioning

confidence: 99%

Swayed by the reviews: Disentangling the effects of average ratings and individual reviews in online word‐of‐mouth

Lei

Yin

Mitra

et al. 2022

Production and Operations Management

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Online word-of-mouth studies generally assume that a product's average rating is the primary force shaping consumers' purchase decisions and driving sales. Similarly, practitioners place more emphasis on average ratings by displaying them at more salient places than individual reviews. In contrast, emerging evidence suggests that individual reviews also affect the decision-making of those consumers who consult both kinds of information. However, because average ratings and individual reviews are often correlated and confounded empirically, little research has attempted to disentangle their effects. To address this empirical challenge, we construct trade-off situations in which the average ratings and top-ranked reviews of different product options do not align with each other. We then investigate consumers' preferences that can indirectly reveal the relative impact of average ratings versus top reviews. Through an archival analysis of a panel dataset and two laboratory experiments, we find consistent evidence for a swaying effect of individual reviews and reveal their textual content as a likely reason. These findings challenge the commonly accepted assumption of average ratings being the primary driver of consumers' purchase decisions and suggest that consumers may not be as rational as previous literature assumed. In addition, this paper is the first to disentangle the effects of average ratings and individual reviews on consumer decisionmaking and explore a possible reason for the swaying effect of individual reviews. Our paper illustrates the importance of information accessibility in consumers' purchase decisions, and our findings offer valuable insights for product manufacturers, online retailers, and review platforms.

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“…As in previous work that examines review data, we define uncertainty as the standard deviation over all posted ratings from reviews of product 𝑝 prior to 𝑡 (e.g., . Accordingly, high levels of uncertainty indicate that a product may perform well in some cases but not in others, which likely translates into higher levels of uncertainty about the product's performance prior to its consumption (Vana and Lambrecht 2021). We thus define:…”

Section: Field Studymentioning

confidence: 99%

The Impact of Uncertainty on Customer Satisfaction

Back

Spann

2022

SSRN Journal

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The Effect of Individual Online Reviews on Purchase Likelihood

Abstract: We investigate how individual reviews displayed on a product web page affect consumers’ purchase decision and find they have a strong effect on purchase likelihood.

Cited by 59 publications

References 31 publications

The design of retailers' online review systems – a systematic literature review and future research agenda

The design of retailers' online review systems – a systematic literature review and future research agenda

Swayed by the reviews: Disentangling the effects of average ratings and individual reviews in online word‐of‐mouth

The Impact of Uncertainty on Customer Satisfaction

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