Business Commons^™

Whose Opinions Do We Trust? Some Thoughts On Online Product Ratings And Consumer Decision Making, David Ackerman, Barbara Gross, Jing Hu

Association of Marketing Theory and Practice Proceedings 2024

User-generated reviews play a crucial role in assessing market offerings and informing consumers’ purchase decisions. This study applies extant theory to examine the influence of online product ratings and reviews on consumers. The findings from experiments suggest that the impact of online ratings is heightened for higher-priced products in comparison to their lower-priced counterparts during both the information search and product evaluation stages of consumer decision making. Results also indicate that consumer ratings on social media may have more of an impact on consumers than do the ratings of experts. Consumers demonstrated a greater purchase intention for products that received …

B2b Ewom On Alibaba: Signaling Through Online Reviews In Platform-Based Social Exchange, Zsófia Tóth, Mona Mrad, Omar S. Itani, Jun Luo, Martin J. Liu

Marketing Faculty Publications and Presentations

Highlights

• The study explores buyers' signaling of observable and unobservable supplier characteristics on the Alibaba e-platform.

• Key B2B eWOM themes that the study identifies are: product/service quality, human touch, responsiveness, and resilience.

• Findings demonstrate that human touch is vital in B2B e-platform environments too, not only in physical reality.

• Buyers' signals aim at suppliers as well as at prospective buyers and implicitly buyers send signals about themselves too.

• Signaling Theory is applied to address the signaling process, while Social Exchange Theory informs relevant cost-benefit assessments.

Abstract

This study investigates the contemporary role of electronic word-of-mouth (eWOM) in business exchanges through …

Innocent Until Proven Guilty: Suspicion Of Deception In Online Reviews, Maria Petrescu, Philip Kitchen, Costinel Dobre, Selima Ben Mrad, Anca Milovan-Ciuta, Deborah Goldring, Anne Fiedler

Publications

- Purpose: This study formulates a new framework for identifying deception in consumer reviews through the lens of Interpersonal Deception Theory and the Persuasion Knowledge Model. It evaluates variables contributing to consumer intentions to purchase after reading deceptive reviews and proposes deception identification cues to be incorporated into the interpersonal communication theoretical framework.

- Methodology: The first study is qualitative and quantitative, based on sentiment and lexical analysis of 1000 consumer reviews. The second study employs a USA national consumer survey with a PLS-SEM and a Process-based mediation-moderation analysis.

- Findings: The study shows deceptive characteristics that cannot be dissimulated …

Online Review Solicitations Reduce Extremity Bias In Online Review Distributions And Increase Their Representativeness, Hülya Karaman

Research Collection Lee Kong Chian School Of Business

Representative online customer reviews are critical to the effective functioning of the Internet economy. In this study, I investigate the representativeness of online review distributions to examine how extremity bias and conformity impact it, and explore whether online review solicitations alter representativeness. Past research on extreme distribution of online ratings commonly relied solely on observed public online ratings. One strength of the current paper is that I observe the private satisfaction ratings of customers regardless of whether they choose to write an online review or not. I show that both extremity bias and conformity exist in unsolicited online word-of-mouth (WOM) …

Speaking For “Free”: Word Of Mouth In Free- And Paid-Product Settings, Samuel Bond, Stephen He, Wen Wen

Faculty & Staff Scholarship

This research examines drivers of consumer word of mouth (WOM) in free-product settings, revealing fundamental differences with traditional, paid-product settings. The authors build and investigate a theoretical model that highlights two unique characteristics of free products (reciprocity motivation and diminished adoption risk) and considers their implications for WOM sharing. Results of a retrospective survey, two controlled experiments, and an analysis of more than 5,000 mobile apps at Google Play and Apple’s App Store reveal that consumers are generally more likely to share their opinions of free products than paid products, because of feelings of reciprocity toward the producer. However, this …

Why Is The Crowd Divided? Attribution For Dispersion In Online Word Of Mouth, Stephen He, Samuel Bond

Faculty & Staff Scholarship

The widespread availability of online word of mouth (WOM) enables modern consumers to assess not only the opinions of others about products and services, but also the extent to which those opinions are consistent or dispersive. Despite longstanding calls for greater understanding of mixed opinions, existing evidence is inconclusive regarding effects of WOM dispersion, and theoretical accounts have relied primarily on the notion of reference dependence. Extending prior work, this research proposes an attribution-based account, in which consumer interpretation of WOM dispersion depends on the extent to which tastes in a product domain are perceived to be dissimilar, so that …

Word Of Mouth And The Forecasting Of Consumption Enjoyment, Stephen He, Samuel Bond

Faculty & Staff Scholarship

The digital era has permitted rapid transfer of peer knowledge regarding products and services. In the present research, we explore the value of specific types of word-of-mouth information (numeric ratings and text commentary) for improving forecasts of consumption enjoyment. We present an anchoring-and-adjustment model in which the relative forecasting error associated with ratings and commentary depends on the extent to which consumer and reviewer have similar product-level preferences. To test our model, we present four experiments using a range of hedonic stimuli. Implications for the provision of consumer WOM are discussed.