Header

UZH-Logo

Maintenance Infos

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


Kostyra, Daniel S; Reiner, Jochen; Natter, Martin; Klapper, Daniel (2016). Decomposing the effects of online customer reviews on brand, price, and product attributes. International Journal of Research in Marketing, 33(1):11-26.

Abstract

Online customer reviews (OCRs) have become a major source of information for customers in the Internet. Understanding the impact of OCRs on customers' decisions is an important challenge for academics and practitioners. We apply a choice-based conjoint experiment that combines all relevant levels of the OCR dimensions (valence, volume, and variance) and that estimates the effect of OCRs on choice. The experimental setting allows us to estimate the direct effects but also the interaction effects of the OCR dimensions, which have been largely neglected in previous research. The impact of the OCR dimensions is evaluated against the results from a control group that did not face OCRs when making their choices. Therefore, our experiment enables us to investigate the extent to which the presence of OCRs affects customers' consideration of brand, price, and technical product attributes. By contrast to previous findings, our results show that volume and variance do not affect customers' choices directly but that they moderate the impact of valence on customers' choices. Moreover, we find that OCRs decrease the importance of brand for customer purchase decisions, indicating that managing OCRs have become a challenge for brand management.

Abstract

Online customer reviews (OCRs) have become a major source of information for customers in the Internet. Understanding the impact of OCRs on customers' decisions is an important challenge for academics and practitioners. We apply a choice-based conjoint experiment that combines all relevant levels of the OCR dimensions (valence, volume, and variance) and that estimates the effect of OCRs on choice. The experimental setting allows us to estimate the direct effects but also the interaction effects of the OCR dimensions, which have been largely neglected in previous research. The impact of the OCR dimensions is evaluated against the results from a control group that did not face OCRs when making their choices. Therefore, our experiment enables us to investigate the extent to which the presence of OCRs affects customers' consideration of brand, price, and technical product attributes. By contrast to previous findings, our results show that volume and variance do not affect customers' choices directly but that they moderate the impact of valence on customers' choices. Moreover, we find that OCRs decrease the importance of brand for customer purchase decisions, indicating that managing OCRs have become a challenge for brand management.

Statistics

Citations

Dimensions.ai Metrics
15 citations in Web of Science®
21 citations in Scopus®
22 citations in Microsoft Academic
Google Scholar™

Altmetrics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2016
Deposited On:08 Dec 2016 11:29
Last Modified:02 Feb 2018 10:57
Publisher:Elsevier
ISSN:0167-8116
Additional Information:Special Issue: Branding in a Digitally Empowering World
OA Status:Closed
Publisher DOI:https://doi.org/10.1016/j.ijresmar.2014.12.004
Other Identification Number:merlin-id:14179

Download

Full text not available from this repository.
View at publisher