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Ratings Lead You To The Product, Reviews Help You Clinch It? The Dynamics And Impact Of Online Review Sentiments On Products Sales, Nan Hu, Noi Sian Koh, Srinivas K. Reddy
Ratings Lead You To The Product, Reviews Help You Clinch It? The Dynamics And Impact Of Online Review Sentiments On Products Sales, Nan Hu, Noi Sian Koh, Srinivas K. Reddy
Research Collection Lee Kong Chian School Of Business
It is generally assumed that ratings are a numeric representation of text sentiments and their valences are consistent. This however may not always be true. Using a panel of data on over 4000 books from Amazon.com, we develop a multiple equation model to examine the inter-relationships between ratings, sentiments, and sales. We find that ratings do not have a significant direct impact on sales but have an indirect impact through sentiments. Sentiments, however, have a direct significant impact on sales. Our findings also indicate that the two most accessible types of reviews - most helpful and most recent - play …