The informational value of multi-attribute online consumer reviews: A text mining approach

In the digital age, customers use online reviews to minimize the risks associated with purchasing a product. Major online retailers help customers choose the right product by exposing reviews that received many “helpful” votes at the top of the review section. Given that reviews that have received the maximum helpfulness votes are considered more important in purchase decisions, understanding determinants of helpfulness votes offers clear benefits to online retailers and review platforms. This study focuses on the effect of review informativeness, which is measured by the number of attributes discussed in a review, and its interplay of review valence on customers' perception of review helpfulness. We applied a word-level bigram analysis to derive product attributes from review text and examined the influence of the number of attributes on the review's helpfulness votes. More importantly, we also suggested the moderating role of review valence. Estimation results of the Zero-inflated Poisson models on 21,125 reviews across 14 wireless earbuds indicated that as more attributes are discussed in a review, the more the review can earn helpfulness votes from customers. Furthermore, the positive association between the number of attributes and helpfulness was enhanced among negative reviews. This study contributes to customers' information processing literature and offers guidelines to online retailers in designing a better decision support system.     

Do cultural orientations moderate the effect of online review features on review helpfulness? A case study of online movie reviews

The perceived helpfulness of online product reviews plays a critical role in consumers’ decisions in e-commerce. In this context, based on the literature on information processing and cultural effects, this study explored the role of review features in the perceived helpfulness of online movie reviews. A cross-cultural investigation (i.e., China cf. the United States (US)) was employed to identify high-vs. low-context cultural orientation and uncertain avoidance orientation as moderators. The results reveal that review length, timeliness, title sentiment, and emotional expressions are significant predictors of helpfulness for consumer reviews in China and the US. In addition, cultural differences between the two countries, that is, high-vs. low-context culture and uncertainty avoidance, moderated the relationships between review length, timeliness, title sentiments, and review helpfulness.     

Born Unequal: A Study of the Helpfulness of User-Generated Product Reviews

Online user-generated product reviews have become an indispensible tool for consumers and thus for retailers who want to attract and retain consumers. Yet, relatively little is known about what causes consumers to find an online peer review helpful to their shopping tasks. Prior research examines mostly the effects of product reviews on consumer product attitude, product choice, and product sales. This paper, however, provides an analysis of the determinants of review helpfulness. In two studies, we examine the effects of review characteristics, product type, and reviewer characteristics on perceived review helpfulness. With data collected from a real online retailer, we provide empirical evidence to support our conceptual predictions. Specifically, both review valence and length have positive effects on review helpfulness, but the product type (i.e., experiential vs. utilitarian product) moderates these effects. Using content analysis of reviews, we develop a measure of expressed reviewer innovativeness (i.e., the predisposition toward new products as revealed in review content). A curvilinear relationship exists between expressed reviewer innovativeness and review helpfulness. These findings lead to pertinent managerial implications.     

Perceived helpfulness of eWOM: Emotions,fairness and rationality

Consumers use online reviews to help make informed purchase decisions. This paper extends existing research by examining how content of online reviews influences perceptions of helpfulness by demonstrating how different emotions can influence helpfulness of both product and service online reviews beyond a valence-based approach using cognitive appraisal theory and attribution theory. This research contributes to existing knowledge regarding the theory of information processing, attribution theory, and cognitive appraisal theory of emotions. Using findings from this study, practitioners can make review websites more user-friendly which will help readers avoid information overload and make more informed purchase decisions.     

Online Review Helpfulness: Role of Qualitative Factors

Consumers are increasingly reading online reviews before making any purchasing decisions. The significance of online reviews has only grown over the years. Though in the past, scholars have emphasized the impact of quantitative factors (e.g., review ratings) on online reviews, only recently have they begun to explore the role of qualitative aspects of online reviews. Content readability and associated sentiments in text provide two important qualitative cues that influence the helpfulness of online reviews. However, the extant literature has overemphasized the linear association between these aspects and the helpfulness of reviews. Using the elaboration likelihood model and the classic ideal point concept, the current work asserts that after an ideal point is attained, lucid and sentimental reviews diminish in utility (i.e., helpfulness of an online review for consumers decreases). This may happen because consumers are wary of fraudulent reviews. This study proposes that if experienced reviewers give such extreme reviews, then consumers might still draw utility from these reviews. In other words, this study explains the moderating role of reviewer experience, which heuristically influences consumers’ trust of online reviews, thus making even too simplistic or extremely sentimental reviews helpful.     

Consumer response to online apparel stockouts

In two online experiments this research investigated the process by which consumers respond to online apparel stock outages (or stockouts) and examined the effectiveness of managerial responses in mitigating the adverse impact of stockouts. Results of Experiment 1 demonstrated that negative emotions evoked by stockouts depressed perception of store image, lowered decision satisfaction, and reduced behavioral intent. In addition, the effect of negative emotion on behavioral intent was mediated by perception of store image and decision satisfaction. The results of Experiment 2 showed that financial compensation was most effective in mitigating the negative impact of out‐of‐stock occurrences on consumer responses. © 2011 Wiley Periodicals, Inc.     

Why should I believe this? Deciphering the qualities of a credible online customer review

Online customer reviews have been shown to have a powerful impact on the sales of a given product or service. However, the qualities of a ‘credible’ online customer review are still subject to debate. Existing research has highlighted the potential influence of a range of factors on the credibility of an online customer review, but relies heavily on quantitative methods and a ‘top down’ approach. In turn, this can reduce our understanding of the influence of these factors into merely discerning whether one pre-determined factor is more influential than another is. This paper adopted a ‘bottom up’ thematic analysis of individual qualitative interviews with a purposeful sample of consumers who regularly utilised online customer reviews. The findings uncovered a range of factors that influenced the credibility of an online customer review that were attached to a reader’s personal experience and to the content of a specific review, and inferred the existence of a reciprocal relationship between the constructs of review helpfulness and review credibility.     

How the level of personalization affects the effectiveness of personalized ad messages: the moderating role of narcissism

Abstract

In this study, we examined the effects of two different levels of personalization strategies (individual-level vs. group-level) on consumers’ visual and attitudinal responses to personalized advertising. We further investigated the moderating role of recipients’ narcissism in the effect of personalization. Results show that individuals higher in narcissism paid greater and more frequent attention to ads personalized on an individual level than to those personalized on a group level, while individuals low in narcissism showed no such differences. Regarding attitudinal response, consumers with a high level of narcissism tended to have a more favourable attitude towards the individual-level personalized ad compared to those with a low level of narcissism, while consumers with a low level of narcissism tended to have a more favourable attitude towards the group-level personalized ad compared to those with a high level of narcissism. Theoretical and managerial implications are discussed.     

The Recipe for the Perfect Review?

Online product reviews, originally intended to reduce consumers’ pre-purchase search and evaluation costs, have become so numerous that they are now themselves a source for information overload. To help consumers find high-quality reviews faster, review rankings based on consumers’ evaluations of their helpfulness were introduced. But many reviews are never evaluated and never ranked. Moreover, current helpfulness-based systems provide little or no advice to reviewers on how to write more helpful reviews. Average review quality and consumer search costs could be much improved if these issues were solved. This requires identifying the determinants of review helpfulness, which we carry out based on an adaption of Wang and Strong’s well-known data quality framework. Our empirical analysis shows that review helpfulness is influenced not only by single-review features but also by contextual factors expressing review value relative to all available reviews. Reviews for experiential goods differ systematically from reviews for utilitarian goods. Our findings, based on 27,104 reviews from Amazon.com across six product categories, form the basis for estimating preliminary helpfulness scores for unrated reviews and for developing interactive, personalized review writing support tools.     

Product Touch and Consumers’ Online and Offline Buying: The Role of Mental Representation

As offline retailers struggle to compete with online ones, the importance of a consumer’s ability to touch a product prior to purchase becomes important to study. Prior research has found inconsistent results on whether product touch facilitates consumers’ product-related decision making. Some studies report a positive effect, whereas others do not. The current research reconciles this inconsistency and draws retailing implications. Across three experiments, we show that the effect of product touch on consumers’ purchase intentions and willingness to pay for a product being evaluated is evident when consumers’ mental representation of the product is concrete, but not when abstract. We further show that perceived risk and perceived ownership simultaneously mediate this moderating effect of mental representation. Implications are drawn for both offline and online retailers.     

The effect of social dynamics in online review voting behavior

This study extends the unidimensional view of review helpfulness into a bidimensional one by conceptualizing review helpfulness and unhelpfulness as two distinct constructs, and draws on the lens of social learning theory to examine the effects of review helpfulness and unhelpfulness on subsequent voting behavior. We innovatively adopt the latent change score modeling to analyze a longitudinal review dataset from Amazon. com. Our empirical results indicate that prior helpfulness of a review will be positively related to its subsequent increase in helpfulness and unhelpfulness, while prior unhelpfulness of a review will be negatively related to its subsequent increase in helpfulness and unhelpfulness. The results also indicate that, at the aggregate level, the increases in review helpfulness and unhelpfulness decelerate over time. This research contributes to the literature by unravelling the dynamic reciprocal relationship between review helpfulness and unhelpfulness and sheds light on the design of review voting systems.     

Unraveling the Personalization Paradox: The Effect of Information Collection and Trust-Building Strategies on Online Advertisement Effectiveness

Retailers gather data about customers’ online behavior to develop personalized service offers. Greater personalization typically increases service relevance and customer adoption, but paradoxically, it also may increase customers’ sense of vulnerability and lower adoption rates. To demonstrate this contradiction, an exploratory field study on Facebook and secondary data about a personalized advertising campaign indicate sharp drops in click-through rates when customers realize their personal information has been collected without their consent. To investigate the personalization paradox, this study uses three experiments that confirm a firm's strategy for collecting information from social media websites is a crucial determinant of how customers react to online personalized advertising. When firms engage in overt information collection, participants exhibit greater click-through intentions in response to more personalized advertisements, in contrast with their reactions when firms collect information covertly. This effect reflects the feelings of vulnerability that consumers experience when firms undertake covert information collection strategies. Trust-building marketing strategies that transfer trust from another website or signal trust with informational cues can offset this negative effect. These studies help unravel the personalization paradox by explicating the role of information collection and its impact on vulnerability and click-through rates.     

A tale of two recommender systems: The moderating role of consumer expertise on artificial intelligence based product recommendations

Recommender systems are used in e-Commerce websites to make product recommendations or deliver personalized content to users. We constructed a beer recommendation program using review data from existing online community to test the hypotheses. This research aims to bridge the gap between marketing and computer science by investigating the moderating effects of consumer knowledge (expertise) on the performance and evaluation of two widely-used recommendation systems – user-based collaborative filtering and content-based. The results show that expert consumers prefer user-based collaborative filtering systems, whereas there is no difference between the two systems among novice consumers. Theoretical and managerial implications are discussed.     

‘Hello,Mrs. Sarah Jones! We recommend this product!’Consumers' perceptions about personalized advertising: comparisons across advertisements delivered via three different types of media

As new technologies (e.g. online, mobile and interactive TV) develop worldwide, numerous types of personalized advertising, in which companies use an individual's name and/or other types of personal information, have become more popular in many countries. Using many types of information about specific individuals, personalized advertising is designed to convey a customized message at the right time to the right person using diverse media. However, despite its universally increased use, few academic studies have explored the effectiveness of personalized advertising and consumers' response to it. This exploratory study focused on consumers' perceptions of personalized advertising delivered online (e‐mail) and offline (letter and telephone call). The results show that consumers generally have negative perceptions of personalized advertising, regardless of how it is delivered, with the strongest negative reaction to telephone calls.     

A purchase decision support model considering consumer personalization about aspirations and risk attitudes

Ranking alternative products to help consumers make better purchase choices is a valuable research topic. Most previous decision support models cannot be well applied to heterogeneous consumers. This paper focuses on establishing a personalized interactive model to assist consumers make better buying decisions with less effort. For the alternative products provided by consumers, we collect online reviews and parameter configurations of alternative products and then obtain the fusing evaluative information. As consumers are dominated by bounded rationality, they only provide partially key attribute weights, based on which, we construct an optimizing model to obtain the optimal attribute weights of customers for products. Then, a satisfaction function is proposed by uniting aspiration levels and risk attitudes of consumers and a compensatory decision rules is established to rank and recommend the brands to consumers. Finally, practicability of this study is illustrated with a real car purchase case. Through the case study, it can be seen that the proposed decision support model generates a personalized list of alternatives based on consumer's own utility function about risk attitudes, aspiration levels, and preferences for product attributes, which further confirms that the proposed model can capture the personalized needs of consumers. Theoretical and managerial implications of this model as well as advantages are further illustrated.     

Managing Negative Reviews: The Persuasive Role of Webcare Characteristics

This article provides insight into a less investigated area that deals with marketers’ responses to negative reviews—a phenomenon known as webcare. Specifically, it examines the effects of (a) salient webcare characteristics like strength and timeliness on consumer forgiveness in the presence of review helpfulness as a moderator, and (b) forgiveness on consumers’ cognitive, affective, and conative loyalty. A 2 (webcare strength: strong vs. weak)?×?2 (webcare timeliness: timely vs. delayed)?×?2 (review helpfulness: high vs. low) between-subjects experiment in a fictitious casual dining restaurant context reveals that webcare timeliness and strength of webcare play affect consumer forgiveness positively which subsequently affects consumer loyalty. These findings are distinctive from previous research because it opens up a new area that deals with managers’ responses to negative reviews. It also explores how the detrimental effects of these reviews can be reduced by manipulating salient characteristics of managers’ responses, i.e., webcare.     

Personal finance blogs: Helpful tool for consumers with low financial literacy or preaching to the choir?

Recent transitions from defined benefit to defined contribution plans assign greater individual responsibility to consumers to prepare for retirement and make consequential financial choices. However, many consumers are ill‐equipped to do so, considering overall low levels of financial literacy. At the same time, there is increasing controversy about the effectiveness of traditional financial education, such as high school financial education, counselling and seminars or workshops. Alternative sources of (just‐in‐time) financial training or advice may be needed to financially empower consumers and help them make important financial decisions. In the light of these developments, this study investigates if consumers perceive personal finance blogs as a helpful alternative in acquiring financial knowledge, and which factors influence perceived helpfulness of and intention to use personal finance blogs. Using Structural Equation Modelling to analyse data from a sample of U.S. consumers, the results of this study uncover that financial literacy and susceptibility to informational influence have a significant positive association with perceived helpfulness. Perceived financial uncertainty, which refers to uncertainty in terms of consumers’ perceived ability to accurately predict their future financial needs, has a significant negative association with perceived helpfulness of and intention to use personal finance blogs. Finally, perceived helpfulness of a personal finance blog is a significant positive predictor of consumers’ intention to use it. Overall, the findings suggest that personal finance blogs are preaching to the choir, since the consumers who are most likely to use personal finance blogs seem to need them the least given their higher levels of financial literacy and lower levels of perceived financial uncertainty. Taken together, the findings shed light on the potential users of personal finance blogs and underline the challenges of a ‘one‐size‐fits‐all’ financial education. This study aids in assessing personal finance blogs as an online resource which is scarcely researched, but which has the potential to provide just‐in‐time financial education to consumers across the world.     

Online Shopper Reviews: Ramifications for Promotion and Website Utility

Today's consumers are empowered with online shopper reviews which are mostly written and posted by buyers, customers, users, or visitors at a website. Shopper reviews will become more popular and ubiquitous in e-tailing in the near future. However, the marketing literature is still limited when it comes to knowledge of how shoppers perceive and use online reviews in their purchase decisions. Hence, this study explored shoppers’ predispositions toward positive or negative reviews and examined the impact of consumers’ attitudes and usage patterns on their perceived helpfulness and credibility of online shopper/peer reviews. One interesting finding from our study of 342 online shoppers was that consumers who would pay greater attention to positive reviews gave reviews more credible and usefulness ratings than their counterparts who would focus on the negative reviews.     

Cutting Through the Online Review Jungle — Investigating Selective eWOM Processing

Consumers frequently rely on online reviews, a prominent form of electronic word-of-mouth (eWOM), before making a purchase decision. However, consumers are usually confronted with hundreds of reviews for a single product or service, as well as rich information cues on online review websites (review texts, helpfulness ratings, author information, etc.). In turn, consumers face more information cues on online review websites than they can or want to process, and are likely to proceed selectively. This paper investigates selective processing of such eWOM information cues. Results of Study 1, an exploratory study using verbal protocols, confirm that consumers display selective eWOM processing patterns and are able to articulate them. Study 2 develops and applies a measurement instrument to capture these patterns. A subsequent cluster analysis on members of a large-scale online panel (N = 2,295) indicates five prominent eWOM processing types, termed “The Efficients”, “The Meticulous”, “The Quality-Evaluators”, “The Cautious Critics”, and “The Swift Pessimists”. Insights of this research can help firms to better understand consumers' eWOM processing and improve the user-friendliness of online review websites.