Despite evidence indicating the significant influence of online reviews on purchase decisions, even after considering a product's average rating ( Vana and Lambrecht 2021), the underlying factors behind this effect and the broader impact of reviews on consumer decision making remain uncertain. This study uses clickstream data from a major online retailer to explore how negative reviews affect consumer search and purchase decisions. Leveraging exogenous variation created by the display of online reviews sorted by recency, the authors find that negative reviews significantly reduce a product's purchase probability because they (1) contrast with the often-high average product rating, (2) decrease the probability that consumers continue browsing for information about the focal product, (3) increase the probability of visiting the page of substitute products, and (4) increase the probability of viewing reviews about substitute products. Importantly, these effects apply to utilitarian products but not hedonic products and when reviews pertain to product functionality or customer service but not to taste-related factors. The authors estimate a product's vulnerability to negative reviews along two dimensions—purchase and search probability for substitutes—and display these effects on a two-dimensional map.

The impact of negative reviews on online search and purchase decisions

Varga, Marton
;
In corso di stampa

Abstract

Despite evidence indicating the significant influence of online reviews on purchase decisions, even after considering a product's average rating ( Vana and Lambrecht 2021), the underlying factors behind this effect and the broader impact of reviews on consumer decision making remain uncertain. This study uses clickstream data from a major online retailer to explore how negative reviews affect consumer search and purchase decisions. Leveraging exogenous variation created by the display of online reviews sorted by recency, the authors find that negative reviews significantly reduce a product's purchase probability because they (1) contrast with the often-high average product rating, (2) decrease the probability that consumers continue browsing for information about the focal product, (3) increase the probability of visiting the page of substitute products, and (4) increase the probability of viewing reviews about substitute products. Importantly, these effects apply to utilitarian products but not hedonic products and when reviews pertain to product functionality or customer service but not to taste-related factors. The authors estimate a product's vulnerability to negative reviews along two dimensions—purchase and search probability for substitutes—and display these effects on a two-dimensional map.
In corso di stampa
2023
Varga, Marton; Albuquerque, Paulo
File in questo prodotto:
File Dimensione Formato  
Negative_reviews_main_-_FINAL.pdf

accesso aperto

Descrizione: Accepted manuscript
Tipologia: Documento in Pre-print (Pre-print document)
Licenza: Non specificato
Dimensione 1.22 MB
Formato Adobe PDF
1.22 MB Adobe PDF Visualizza/Apri
The Impact of Negative Reviews - Web Appendix.pdf

accesso aperto

Descrizione: Web appendix
Tipologia: Documento in Pre-print (Pre-print document)
Licenza: Non specificato
Dimensione 158.09 kB
Formato Adobe PDF
158.09 kB Adobe PDF Visualizza/Apri
varga-albuquerque-2023-the-impact-of-negative-reviews-on-online-search-and-purchase-decisions.pdf

non disponibili

Descrizione: article
Tipologia: Pdf editoriale (Publisher's layout)
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 828.97 kB
Formato Adobe PDF
828.97 kB Adobe PDF   Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/4059196
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 1
  • ???jsp.display-item.citation.isi??? 0
social impact